Maruti Suzuki India is in talks with the Haryana government to set up a research and development (R&D) centre, including a testing track, in the state. The proposed project, spread over 500 acres, is likely to be at Manesar and would attract an investment of Rs. 18 billion (US$ 380.5 million).

"The state of the art R&D centre-cum-testing track would include all the latest equipment, including wind tunnel system, actual road conditions, etc. for testing our vehicles, " disclosed R.S. Kalsi, the company's chief manager (sales), in an interview. The unit will also have facilities for research on safety and newer technologies.

Currently, Maruti Suzuki does its R&D for new models at its research centre in Japan and a research facility in Gurgaon. Despite the slowdown, it is scouting for expat and Indian engineers. The local R&D centre would be one of the largest Suzuki facilities outside Japan. The company plans to up the headcount of engineers from 760 to 1,000 by 2010.

Commenting on rural India sales, Kalsi added, "In the last fiscal year 2008-09, we sold 7,22,144 cars. In the rural market, the company has more than doubled its share of sales, from 4.5 per cent to 9 per cent and it is targeting that this year the rural market will contribute 12 per cent of total sales."

He also said the company is ramping up its monthly capacity to make diesel engines from 200,000 to 300,000, to reduce the waiting period of its popular Swift and Swift Dzire models, whose waiting period averages from one and a half to three months.