Flash News - Italian car components and systems producer Magneti Marelli, part of local automotive group Fiat, Japanese motor vehicle maker Suzuki Motor Corporation and carmaker Suzuki Motor India have signed an agreement to set up a joint venture in India, focused on the production of electronic control units for diesel engines.
Maruti Suzuki India Ltd, known as Maruti Suzuki Udyog Ltd, is a joint venture set up in 1982 between the Indian government and Suzuki and is the Indian leader in the field of motor vehicles manufacturing.
Magneti Marelli will own 51 pct of the joint venture capital, Suzuki will participate with 30 pct, while Maruti will hold 19 pct.
The companies have planned an initial investment of a total 15 mln euro ($21.3 mln).
The industrial facility of the new company will be located near Manesar, in the northern Indian district of Gurgaon, some 40 km south-west of New Delhi. The start of production is scheduled for the end of 2008 and the new facility is expected to reach a production capacity of some 500,000 units a year.
The electronic units to be produced by the new plant in Manesar will be destined for diesel engines produced by Maruti Suzuki at first and will be offered to other clients at a later stage.
