Suzuki Motor Corp has purchased an additional 0.8% of Maruti Suzuki India Ltd., increasing its holding in the company to 55%. Maruti Suzuki is India’s largest automaker, accounting for half the country’s new passenger vehicle sales.
The Indian venture now sells more vehicles than Suzuki sells worldwide on its own. It also accounts for nearly 80% of Suzuki’s profits. Last month, Maruti Suzuki sold 96,700 cars, up 22% from February 2009.
Analysts suggest the increase signals an even bigger presence for Suzuki in India in the future. Under the country’s laws, companies can accumulate up to 5% of another firm per year until a 55% stake is achieved. At that time, additional purchases must be accompanied by an open offer of another 20%.
BYD, which has been supplying lithium-ion batteries for cell phones since its formation in 1995, will provide battery and electric-drive technology. Daimler will contribute its EV architecture expertise. No other details have been announced.