The decision of Suzuki Motor Company to operate a fully-owned subsidiary in Gujarat that will make cars that MSIL will is a smart move. That was announced by Osamu Suzuki who was in India recently. According to Mr Suzuki, chairman, SMC, “the board of Maruti Suzuki has approved that a new company – Suzuki Motor Gujarat Pvt Ltd – will be set up. It will not be a listed company and have a start-up capital of Rs 100 crore and be set up by April 2014. Its HO will be located at the regional office of
31 Jan 2014 | 4529 Views | By Autocar Pro staff
The decision of Suzuki Motor Company to operate a fully-owned subsidiary in Gujarat that will make cars that MSIL will is a smart move. That was announced by Osamu Suzuki who was in India recently. According to Mr Suzuki, chairman, SMC, “the board of Maruti Suzuki has approved that a ...
This is an Autocar Pro Plus article. Subscribe to continue reading.
The decision of Suzuki Motor Company to operate a fully-owned subsidiary in Gujarat that will make cars that MSIL will is a smart move. That was announced by Osamu Suzuki who was in India recently. According to Mr Suzuki, chairman, SMC, “the board of Maruti Suzuki has approved that a new company – Suzuki Motor Gujarat Pvt Ltd – will be set up. It will not be a listed company and have a start-up capital of Rs 100 crore and be set up by April 2014. Its HO will be located at the regional office of Maruti Suzuki in Ahmedabad.
The new form of doing business will help Suzuki in some key ways:
One wonders why the stockmarkets reacted adversely to the decision but that is only a short –term thing given that investors would have had questions to which there are no immediate answers. Gujarat is widely considered to be India’s most biz-friendly state. Already Ford is there and HMSI is expected too, as also a group of vendors. Suzuki has made a very wise decision.