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Maruti Suzuki To Launch Eco-Car

By Motortrend India Staff   |   31 August,2009

Maruti Suzuki India proposes to introduce a green car in the Indian market.

Maruti Suzuki’s Managing Director and Chief Executive Officer Hinzo Nakanishi said the company could take advantage of the Indo-Thai trade pact to bring in components paying low taxes, thus making the car price-competitive for Indian customers.

The company has been trying to produce a small car with a Euro IV engine of up to 1,300 cc under the Thai government's special eco-car programme, delivering efficiency of 20 km per litre of fuel and under 120 grams of CO2 emissions per km. Such cars attract huge excise benefits and concessional tax incentives.

The company planned to manufacture 1.38-lakh eco cars per year in Thailand, investing $280 million.

The huge potential for the fuel-efficient green model in India's domestic market prompted Maruti to bring to India the eco-car its parent company, Suzuki Motor (SMC), had developed for Thailand.

Under the Thai government's plan, most eco cars are meant for export and SMC has planned to sell 10% to 15% of its total production in Thailand and export the rest to other ASEAN countries and Australia. Since the export of fully-built cars from Thailand to India is ruled out, the company is looking at bringing knocked-down versions of the car to be assembled in India.

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