Maruti inaugurates new engine plant

New Delhi, Oct 21 (IANS) In the run up to the launch of Maruti's upcoming compact 'A-Star', the company Tuesday inaugurated a new plant in Gurgaon, Haryana for its KB-series of petrol engines.

The new engines will be installed in A-Star, which was unveiled in the Paris motor show last year.

The plant, spread over an area of 20,300 square meters, will have an installed capacity of 240,000 units. The plant is part of the $1.8-billion investment plan, drawn by Maruti Suzuki and Suzuki Motor Corp earlier this year.

Japan's Suzuki Motor Corp holds 54.2 percent stake in Maruti Suzuki.

'The new engine series is also an important step towards attaining the target sales of a million units in the domestic market by 2010-11,' Maruti Suzuki managing director Shinzo Nakanishi said.

After A-Star, the engine with a displacement of 998cc would be introduced to other models over a period of three-five years.

The A-Star compact, which will replace Suzuki' Alto in European markets, is expected to be launched by the end of this month.