Small car segment in India is witnessing a surge in demand. Parent company Suzuki has asked Maruti to strengthen its research and development for the small car engines in order to keep up with the growing small car demands in the country.
Suzuki Chairman, Osamu Suzuki has asked Maruti Suzuki India to enhance its R&D capabilities for small car engines of up to 1200cc. According to Maruti Suzuki India Chairman, RS Bharagava, small car engines attract an excise benefit of nearly 60-70 percent in India. However, R&D for small car engines of up to 1200cc currently takes place in Japan. Osama Suzuki wants 90 percent of the research and development for engines up to 1200c to be done in India.
Maruti has already announced that it shall make India as its R&D hub from small cars. It has already made India as its manufacturing and exports hub for small cars. Now it plans to shift all its research and development plans for small car engines to be shifted to India. Suzuki foresees increase in sales of small cars due to rising fuel prices and global inflation which makes big cars unaffordable for the common man.
![Maruti Suzuki 800 [2008-2014]](https://imgd-ct.aeplcdn.com/160x89/cw/cars/discontinued/maruti-suzuki/800-2008-2014.jpg?q=80 "Maruti Suzuki 800 [2008-2014]")
