Suzuki - Volkswagen Deal Will Create New Opportunities For Maruti

India's No. 1 car maker, Maruti Suzuki, is expected to gain good opportunities when Volkswagen and Suzuki jointly produce cars for the global market.

According to Osamu Suzuki, who visited India to attend the Maruti Suzuki AGM, stated that Suzuki was looking at ways to co-operate with Volkswagen which bought a 19.9% stake in Suzuki. He added that the vehicles would be sold in global market if the joint product development happens.

Osamu Suzuki said that for Suzuki, it would be wise to develop those models that are sold in India and VW sells large volumes in China.

In any case, the two car makers do not have any plans to retail each other's vehicles through their channels. Osamu Suzuki announced that Maruti will set up a new plant at its Manesar facility with an approximate investment of Rs 1,900 crore. With an capacity of 2.5 lakh units the company will make an investment of Rs 6,125 crore by 2013.

Osamu Suzuki's statement on joint projects with Volkswagen comes month after a Volkswagen board member, Christian Klingler, stated that Volkswagen could take the help of Maruti Suzuki in development of a new small car below the Polo in its Indian portfolio.

If the Suzuki-Volkswagen alliance develops JV products, it would cause headache to Honda and Hyundai.