India – Following a proposal from Suzuki Motor Corporation (SMC) to implement the project through a 100% Suzuki subsidiary, Maruti Suzuki India Limited (MSIL) will build on land which was acquired in October last year, including 640 acres in Becharaji and 550 acres in Vithalapur.
MSIL will enter into a contract with the subsidiary whereby all production will be in accordance with the requirements of MSIL, to which all vehicles will be sold. The Suzuki subsidiary will not produce vehicles for any other company. The price of the vehicles will include only the cost of production incurred by the subsidiary plus adequate cash, net of all tax, to cover incremental capital expenditure requirements.
The expansion of manufacturing facilities had been kept on hold due to market conditions.
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