MUMBAI (Bloomberg) -- Maruti Suzuki India Ltd. will help Volkswagen AG develop a new small car priced at less than 400,000 rupees ($8,600), the Financial Express reported, citing industry sources it didn't name.
Maruti, a unit of Suzuki Motor Corp., will get expertise for manufacturing diesel engines from Volkswagen or will directly source engines from VW, the report said.
Suzuki Chairman Osamu Suzuki is scheduled to visit India later this month and is likely to discuss various ways to cooperate with Volkswagen officials, the report said.
The two companies will make at least three major announcements about joint product development, contract manufacturing and other collaborations, the report said, without citing the sources.
Volkswagen, Europe's biggest carmaker, owns a 19 percent stake in Suzuki.