Maruti forms joint R&D team for fully indigenous car

Maruti Suzuki, the largest passenger car manufacturer of India has begun its work of developing the first completely 'made in India' car. Designing and developing future products in India is a part of company's strategy and that is why a joint top level team has been made for this global product strategy. This team of the company comprises of R&D experts from both Japan and India. This joint team will be headed by Maruti Suzuki's managing executive officers (engineering) K Asai and I.V Rao. As per the company sources, the concept of forming a R&D experts’ team was decided 2 months back, during the visit of Osamu Suzuki, Suzuki Motor Corp’s chairman, to India. 

A company official said that Maruti Suzuki’s process of developing a completely indigenous car model is underway. But still the company has not decided a particular timeline for the same. On the other side, Mr I.V Rao confirmed that he was heading the R&D experts’ team. He stated that till now Maruti Suzuki has been making cars in India but the company is now looking to get into the product development also which will be done here. However Rao refused to provide the exact time period for the launching of this new indigenous model. Top engineers from the auto companies of US have also been recruited by the company. These skillful engineers will be working under Asai and Rao for delivering the product. Before launching the product in India, it will be tested in the European markets.

The sources have told that following this strategy will be beneficial for the company as it will provide the company with the option of saving a substantial amount of money which it pays to Suzuki Motors as a royalty of using its technology. Earlier it was reported that once the R&D centre of Maruti Suzuki at Haryana is completely developed by 2015, the company could begin demanding a royalty from Suzuki Motors, therefore reversing the present trend. RC Bhargava, chairman, Maruti Suzuki stated that there is logic in Suzuki Motor paying a royalty to Maruti. The first quarter net profit of Maruti had fell 20% because of the higher royalty paid to Suzuki.

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