New Delhi, July 27 (PTI): Suzuki Motor Corp, the Japanese automaker, is getting ready for a second innings in the Indian two and three-wheeler market following its exit from a joint venture with Chennai-based TVS Motor in 2001.
The company has obtained government nod to produce, assemble, market and sell two and three-wheelers, including motorcycles, scooters, mopeds and their spare parts for the domestic market by acquiring a majority stake in a local company called Integra Overseas Private Limited.
Suzuki would initially acquire 51 per cent stake in the existing firm for implementing the project, sources said.
The shareholding would be subsequently increased, depending upon the demand of the products, they said adding that name of the company is also likely to be changed to Suzuki Motor India.
Suzuki had earlier secured the government’s approval to set up a wholly-owned subsidiary to undertake the aforesaid activities. But it has now decided to acquire stake in an already incorporated Indian company.
According to sources, Suzuki plans to initially acquire and later increase its shareholding in the company through fresh allotment of shares or also through purchase of 1,85,43,200 shares from the three existing shareholders, including Metromode Technology of Mauritius.