Magneti Marelli in tie up for electronic control units

Italian auto component maker will take 51% stake in JV with Maruti

NEW DELHI: Maruti Suzuki, along with parent company Suzuki Motor, has entered into a joint venture with Italian auto component maker Magneti Marelli for making electronic control units (ECUs) for diesel engines.

The JV would see a 51% stake from Magneti, 30% from Suzuki and the remaining 19% from Maruti.

The JV would entail an investment of about Rs 75 crore, which will be funded through a mix of equity and debt and it would start manufacturing ECUs at Manesar, where Suzuki’s diesel engine manufacturing facility is already located.

Production is scheduled to begin by the end of next year and should touch 5,00,000 control units per year, when working at full stretch.

The ECUs made here would initially be used for Maruti’s diesel cars. Later on, the JV would supply to other car manufacturers as well.

Eugenio Razelli, CEO, Magneti Marelli, said: “The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car-maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market”.