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Suzuki mum on not eyeing govt pie in Maruti

Suzuki Motor Corp on Friday declined to comment on an Indian report that it is not interested in buying out the Indian government's 50 per cent stake in their joint venture that dominates India's new-car market.

The Economic Times said the Japanese firm's waiver of its right of first refusal meant the government could sell its stake in Maruti Udyog Ltd to a new partner or the public.

"We are not in a position to make any comment," said a spokesman for Suzuki, Japan's leading mini-vehicle maker.

The government was more likely to sell the stake to the public as it would be "impossible to induct a new partner without Suzuki's approval," the newspaper said. A public offer would automatically mean control of Maruti passes to Suzuki.

But it said Ford Motor Co and Rahul Bajaj, the chairman of Bajaj Auto, India's largest two-wheeler maker, had been mentioned as potential buyers of the joint venture, which holds an almost 60 per cent share of India's new-car market.

Maruti has dominated the Indian auto market with its inexpensive, small, fuel-efficient cars since production began in 1983. But it has faced increasing competition in recent years.

Shares in Suzuki, which is owned 20 per cent by General Motors Corp, closed at 1,660 yen on Friday, up 2.79 per cent, outperforming the Nikkei average's rise of 2.28 per cent.

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