Suzuki Motor Corporation of Japan has planned to invest Rs.1,050 crore in setting up two greenfield ventures in India -- one for production of passenger cars and the other for diesel engines.

An investment of 15 billion yen (Rs.630 crore) will be made to set up a greenfield passenger car manufacturing plant with capacity of 2.5 lakh cars per year that will commence production by early 2007. The unit, to be located at Gurgaon near Haryana, will be promoted by Suzuki Maruti India, a joint venture between Suzuki of Japan and Maruti Udyog.

Around 10 billion yen (Rs.420 crore) will be invested in setting up a diesel engine unit with a capacity of 1 lakh units per annum. The unit that will produce 1.3l engines will commence operations by end-2006. The new venture has been tentatively named Suzuki Engineering India. The new company will be merged with Suzuki Metal India -- Suzuki's aluminium casting company in India

Meanwhile, Suzuki Motorcycle India (formerly named Integra Overseas) plans to start manufacturing and marketing of motorcycles by the end of 2005.

Suzuki Motor Corporation has a stake of 54.2 per cent in Maruti Udyog Ltd, which is India's largest passenger car manufacturer with a capacity of 5 lakh cars per annum.