The KB-series engine is at present used only in the A-star. Maruti, however, plans to gradually install this engine in both its new models as well as existing ones. At present, 240,000 KB-series engines can be manufactured annually at the Gurgaon plant.

The KB-series petrol engine is fuel efficient and light weight. It meets BS III emission norms and can also comply with future norms in India. It also meets Euro V norms for the A-star's export model. Over the next three to five years, all of Maruti's existing and new models will be fitted with this engine, which is why engine-making capacity has to be expanded significantly.

With the domestic sales target for the A-star maintained at 50,000 units for this fiscal and an export target of another 150,000 units, the plant would be left with around 40,000 units capacity to cater to other models.

Maruti Suzuki’s soon-to-be-launched Ritz will be introduced in June and will also be powered by the KB- series engine. According to company estimates, the demand for the Ritz in the first year will be around 50,000-60,000 units. So by March 2010, the total capacity of the engine plant will be exhausted.

The Rs 2,000 crore investment is part of the Rs 9,000 crore spend Osamu Suzuki, chairman of Suzuki Motor Corporation, had earmarked for Indian operations sometime ago.