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Maruti Suzuki wants to increase R&D in India

Maruti Suzuki has mentioned that its parent company Suzuki wants to increase its R&D work in India on engines which are less that 1200 cc in India from 30 percent to 90 percent within a few years.

The R&D efforts will help the company to meet new emission and safety regulations, which are slated to come into effect in 2010. Earlier, around 70 percent of the R&D work was being done in Japan. 

The company mentioned that customers would move towards using smaller cars so the sales of small cars would rise causing a drop in the sales of larger cars. Maruti Suzuki has a lion’s share in the market with models like the Alto and the Swift hatchbacks.

However, factors such as high input costs, rising inflation and interest rates, and increasing price of fuel have affected demand in the country. According to the company, there is a need to develop more fuel efficient models like multi-fuel, electric and hybrid cars. 


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Posted by Jigar Gondalia on 6 September, 2008 2:12:09 PM IST #


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