Suzuki Motor Corporation (SUZUKI) hereby announces that the Board of Directors resolved to establish a Subsidiary (automobile manufacturing company) in India at the meeting of the Board of Directors held on 28th January 2014.
1．Reason of the establishment
SUZUKI decided to establish a 100%-owned subsidiary in India and the name is “Suzuki Motor Gujarat Private Limited (SMG)”(tentative name). The purpose is expansion of the production capacity in India for future Indian automobile market development and export expansion from India.
SMG will build automobile manufacturing plant in Gujarat State, India. SUZUKI expects that total amount of capital investment will be 50 billion JPY eventually. Start of production will be within 2017. In the initial stage, the capacity will be 100,000 vehicles per year and the capacity will be increased gradually. SMG will enter into a contract manufacturing agreement with Maruti Suzuki India Limited (MSIL) and MSIL will play a role as seller of the vehicles including export from India.
2．Outline of Suzuki Motor Gujarat (SMG)
|Company name||Suzuki Motor Gujarat Private Limited (tentative name)|
|Head office||Ahmedabad city, Gujarat State, India|
(Director and Senior Managing Officer, Suzuki Motor Corporation)
|Main business||Production of automobiles and parts|
|Paid in capital||1billion Indian Rupee at the time of establishment. After that, it will be increased with the capital investment.|
|Date of establishment||April, 2014 (Plan)|
|Company form||100%-owned subsidiary of Suzuki Motor Corporation|
|Fiscal year end||March|
3．Schedule of the establishment
|(1) The Board resolution at SUZUKI||28th January, 2014|
|(2) The establishment||April, 2014 (Plan)|
|(3) The First meeting of the Board of Director of SMG||April, 2014 (Plan)|
4．Influence on financial results of SUZUKI
Financial result of SUZUKI in fiscal year 2013 (April 2013-March 2014) may be negligible from the establishment.