Maruti sees $1.8 billion savings on Suzuki agreement

NEW DELHI Fri Jun 6, 2014 7:08pm IST

A worker is reflected on the body of a Maruti Suzuki car as he locks the door of another car at a Maruti Suzuki stockyard on the outskirts of Ahmedabad May 2, 2014. REUTERS/Amit Dave/Files

A worker is reflected on the body of a Maruti Suzuki car as he locks the door of another car at a Maruti Suzuki stockyard on the outskirts of Ahmedabad May 2, 2014.

Credit: Reuters/Amit Dave/Files

Related Topics

Stocks

   

NEW DELHI (Reuters) - Maruti Suzuki India Ltd, the country's biggest car maker, said it expected a saving of about 105 billion rupees over 15 years by entering into a contract manufacturing agreement with parent Suzuki Motor Corp.

In January, Suzuki said it plans to build a wholly-owned car plant in Gujarat that will supply exclusively to Maruti. The plan has met with resistance from some of Maruti's large Indian shareholders.

Maruti, pending shareholder approval, plans to enter into a contract manufacturing agreement with Suzuki for 15 years, which can mutually be extended by another 15 years, it said in a presentation, a copy of which it filed to the stock exchanges.

Suzuki will invest a total of about 185 billion rupees to build the plant that would eventually have a capacity of 1.5 million cars, Maruti said on Friday.

(Reporting by Aditi Shah; Editing by Subhranshu Sahu)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Markets

REUTERS SHOWCASE

Segway in India

Segway in India

Segway’s India business pegs hope on tech-savvy Modi  Full Article 

Power Outage

Power Outage

Mumbai hit by power cuts  Full Article 

Commodities

Commodities

Gold imports, premiums to jump on festive demand - top refiner  Full Article 

Economic Worries

Economic Worries

Pakistan's promises to IMF in doubt as protests sap economy   Full Article 

Islamic Finance

Islamic Finance

Basel III deposit challenge looms over Islamic banks   Full Article 

Antitrust Probes

Antitrust Probes

U.S. business lobby says concerned China antitrust probes unfair.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage