The Japanese auto major has recently purchased an additional 0.8% stake in its Indian subsidiary taking its holding up to 55%. While the Indian subsidiary of the Japanese auto major is gaining importance as the time is passing by, industry watchers believe that the company may opt for gaining a full control over the business.

While Maruti Suzuki has overtaken Suzuki's volumes recently, the Indian subsidiary contributes almost 80% to Suzuki's profits. However, for any increase over 55%, the company will have to make an open offer for another 75% but the officials are till now not confirming the development.

After Volkswagen Group purchased a 20% stake in Suzuki Motor Company, analysts believe the chances are brighter the Japanese auto major will go for the full stake.

It will not only help Volkswagen to leverage from Maruti's R&D abilities but also benefit Suzuki in increasing its profitability in the long-run. However, the strategy line is still not clear what is Suzuki aiming at by increasing its stake but it will be interesting to see how Volkswagen leverage from the deal with Suzuki.