The new company, a wholly-owned unit of Suzuki Japan, would help Suzuki strengthen its R&D competitiveness and capabilities not only for India but also for global markets, Suzuki said during an event in Gandhinagar, the capital of the western state of Gujarat.
The event was attended by Indian Prime Minister Narendra Modi and his Japanese counterpart Fumio Kishida.
"India has become one of the most important countries for Suzuki Group," he said, adding that it would continue to invest in India aggressively.
Suzuki is the majority owner of Maruti, which dominates India's car market with its small, low-cost vehicles. But the company faces growing competition as buyers shift to bigger cars such as sports-utility vehicles (SUVs) and regulators demand safer and greener cars, pushing up costs.
For Suzuki, India is one of the biggest markets in terms of revenues and profit and one where it has so far invested 650 billion rupees ($8.13 billion) to support Maruti and ensure it maintains its leadership position.
(Reporting by Aditi Shah in Gandhinagar, India; Additional reporting by Abhirup Roy; Editing by Alex Richardson)
By Aditi Shah
