Maruti Udyog Ltd on Wednesday said it would invest a total of Rs 3,271.9 crore (Rs 32.71 billion) for a new car manufacturing plant and a new engine and transmission unit, which apart from diesel engines will also make petrol engines and gears.
This was decided at a Board meeting of the company at Hamamatsu, Japan.
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MUL, which is 54.2 per cent owned by Japan's Suzuki Motor Corp, said the new car plant would be through a joint venture Maruti Suzuki Automobiles India Ltd, in which MUL will hold 70 per cent equity while Suzuki Motor Corporation the remaining 30 per cent.
The JV would invest Rs 1,524.2 crore (Rs 15.24 billion) for the new car plant, which will have an initial capacity of 1,00,000 cars per annum, with scope to go up to 2,50,000 cars per annum.
"The new car manufacturing plant will begin commercial production by the end of 2006," the company said.
On the engine and transmission facility, the company said in addition to manufacturing diesel engines for cars, as was decided earlier, it would also manufacture petrol engines and transmission assemblies.
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