Suzuki R3 Concept Proposal for a Six-Passenger Compact MPV Debuts at New Delhi Auto Show

This year's Auto Expo in New Delhi, India, is turning out to be a crowd puller as many automakers chose the show to unveil an array of concept and production models designed with the domestic market in mind. Maruti Suzuki took the covers off the R3, a Compact Multi Purpose Vehicle (MPV) that was penned at the firm's Research and Development Department in India.

Despite its compact size, the futuristic looking concept model can accommodate a total of six passengers in three rows of seats. Suzuki didn't release any more details on the R3, but it has been speculated that the concept model may base a production version in the very near future.

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VW and Suzuki Reportedly Planning to Develop $4300-$5300 Low Cost Small Car for India and Europe

The newly forged Volkswagen Group - Suzuki alliance plans to develop a new low cost small car for India as well as Europe and other markets, the Economic Times reported on Friday. The business daily said that the new vehicle, which will act as a replacement for Suzuki's Alto, would cost between 200,000 and 250,000 rupees in India, which comes to about $4,300 - $5,300 or €2,900 - €3,600 at today's exchange rates.

This means that the projected price for the VW/Suzuki model, is double the price of Tata Motor's Nano, which is the world's cheapest automobile.

"We will need a car in the Rs 2.5-lakh apiece range. First we had the M800, then the Alto. At some point we will need a replacement for the Alto. That price range is the entry level for Indian customers today, so we can't leave that segment open," Maruti Suzuki chairman RC Bhargava told the newspaper.

The Economic Times reported that in Europe, the car would fit right under Volkswagen's forthcoming Up! model.

"Volkswagen will be greatly interested in a car below the price segment of the Up, which we have already displayed in India, and that is something we will need to check in our future together with Suzuki," VW spokesman, Fabian Mannecke, told ET.

The newspaper added that in Europe, the VW/Suzuki small car would be priced well under the still under development Up! (which it claims will carry a price tag of around $8,800 or €6,000 in Old Continent), at around $4,000 to $5,000 or €2,700 to €3,400.

We're assuming that ET made some sort of typo in the price range as there's no way that the VW / Suzuki small car will be priced lower in Europe that in India.

And while Tata Motors proves that everything's possible in India, somehow we find it hard to believe that the two automakers will be able to develop a car that meets the strict emissions and crash standards in Europe and at the same time carry a price tag of around €3,000...

Via: Economic Times - Car Pictured Above: 2009 Suzuki Alto Concept

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Volkswagen Agrees to Buy 19.9 Stake in Suzuki as it Eyes Small car and Indian Markets

Confirming rumors that have been circulating for the past few months, Volkswagen and Suzuki announced on Wednesday that they have reached a common understanding to establish a close long-term strategic partnership.

Under the agreement, VW will buy a 19.9 per cent stake in Suzuki Motor Corp for 225 billion Yen (approx US$2.5 billion) while the Japanese automaker will invest up to one half of the amount received from the German automaker into shares of Volkswagen.

The move comes only a few days after the Volkswagen Group announced that it acquired a 49.9% stake in Porsche AG's car operations for €3.9 billion.

Volkswagen plans to make the best of Suzuki's expertise in small, fuel-efficient cars as well the Japanese firm's presence in India where it controls Maruti Suzuki India Ltd, the maker of half of all cars sold in the country.

At a joint press conference in Tokyo, Suzuki Chief Executive Officer Osamu Suzuki said that the two companies also plan to develop hybrid and electric vehicles under both brands.

"As demand continues to rise for smaller cars and for powertrains with higher fuel efficiency and lower CO₂ output, Volkswagen and Suzuki will offer a compelling solution for customers in emerging markets buying a car for the first time and also for customers in advanced economies seeking to lower their CO₂ footprint while still enjoying the freedom of transport offered by an exciting range of cars," VW said in a prepared statement to the press.

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Jaguar and Land Rover to Enter Indian Market for the First Time

Tata's newly formed "Jaguar Land Rover" premiere car group has announced that it will enter the Indian market for the first time later this year. The Jaguar and Land Rover models will be distributed in the country by the British group's owner, India's Tata Motors Limited with the first showroom scheduled to be open at Ceejay House in Worli, Mumbai, in June this year. The group's initial portfolio will include the Jaguar XF and XK, and the Land Rover Discovery and Range Rover models.

"We are delighted to be formally entering the Indian market, an economy which is still growing appreciably, and able to offer our premium products to a whole new group of customers," said David Smith, CEO of Jaguar Land Rover. "It is an important strategic move for Jaguar Land Rover and will enable us to realize our competitive potential in this significant market."

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