Suzuki has earmarked an investment of Rs 9,000 crore in India, a good part of which has gone into setting up a powertrain unit that will make Suzuki’s K-Series or the next generation engines that would eventually be used in all global models. HMIL has invested Rs 1,210 crore in its second engine & transmission plant. This is part of Hyundai’s over Rs 4,000-crore investments in the country until 2013.

“Investment of such huge scales is on a long-term basis and is done taking into consideration the fluctuations that would happen in the future. Though the domestic market is sluggish at the moment there is a huge potential for small cars in India and there could be exponential growth in the next few years,” says Arvind Saxena, senior vice-president, HMIL. Ford India has earmarked Rs 2,000-crore to expand operations in India, which will include a second plant and an engine unit.