SUZUKI FAN

VW-Suzuki plans to carry out hybrid car R&D in India

 Days after agreeing to buy 20% stake in Japan’s Suzuki Motor Corporation for $2.5 billion, German car giant Volkswagen AG has said the two companies are looking at jointly working on hybrid and electric car projects. India could play a significant role in this. For, VW may look at leveraging Suzuki’s R&D centre in the country for developing hybrid and electric cars, among other products. A hybrid electric vehicle combines a conventional internal combustion engine propulsion system with an electric propulsion system, and is, therefore, more fuel-efficient.

Jochem Heizmann, Volkswagen board member and responsible for production, said, “It’s too early to give out concrete details of our plans, but what is definite are common projects on hybrids and electro mobile cars. VW can offer hybrids and electric technology.” Suzuki also has a fuel cell technology programme going on at its end.

Globally, auto companies are looking at alternative fuel technologies in a bid to reduce carbon emissions and comply with stringent environmental regulations. However, since this involves high development costs, automakers are looking at joining hands in these areas. Even Indian auto majors like Tata Motors are betting big on hybrids and electric cars. Tata Motors, which has a tie up with Norwegian company Miljo Grenland/Innovasjon for its hybrid project, is also planning to introduce a hybrid version of Nano, the world’s cheapest car.

Heizmann added Suzuki and his company complement each other, even in terms of product portfolio. “India has huge potential to offer. Suzuki is strong in the Asian markets, including Japan and India. We are investigating the areas of synergies as we look for scale effect in operations,” he said. Heizmann was speaking on the sidelines of an event to launch production of VW’s Polo hatchback, at Chakan near Pune.

Other than the high development cost, the major roadblock for hybrids is the reluctance of auto companies to share the technology know-how since it has high proprietary value. But experts believe that VW-Suzuki partnership overcomes this as the two are investing in each other and are open about the strengths they share.

VW and Suzuki are in the process of forming a long-term strategic partnership to tap the growing demand worldwide for more environment-friendly vehicles. Both companies are focused on rapidly growing emerging markets. Suzuki’s stake sale to VW is expected by January 2010. Suzuki, in turn, intends to invest up to half of the amount.

via financialexpress

car R&D in India

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