Suzuki Motor Corporation announced today that a new company will be established in India to manufacture automobile engines.

The new company "Suzuki Engineering India Limited (tentatively named)" plans to construct a plant with production capacity of 100,000 diesel engines per year in Haryana State, Gurgaon, Manesar. The planned investment total is 10 billion yen.

The plant is scheduled to start operating around the end of 2006, and the type of diesel engine manufactured is 1.3L with 4 cylinders. Regarding this engine, Suzuki previously entered into a Product License Agreement with FIAT AUTO S.p.A. in Italy and Adam Opel AG in Germany.

The new company will merge "Suzuki Metal India Limited", which is a currently operating aluminum casting company in India.