The MoU was signed on Monday between the director general of foreign trade (DGFT) NL Lakhanpal and Maruti managing director RSSLN Bhaskarudu.

Speaking to The Financial Express, Lakhanpal said Maruti will be under obligation to balance the import content with adequate export commitment as per the automobile policy.

When contacted Bhaskarudu confirmed signing of the MoU with the goverment. He said Maruti would meet all the commitments as per the MoU.

Industry analysts were of the opinion that the MoU would entail that the company would now have to improve its export performance.

According to Maruti officials, the company plans to introduce a 1600 cc luxurymodel Baleno by November this year and a 1000 cc Wagon-R by February next year. A small car is also slated to to be launched subsequently, officials added.

This would entail total investment in excess of Rs 1,000 crore, officials said. The company will import completely knocked down and semi-knocked down kits, officials said.

Maruti officials said the indigenisation levels of the new models will around 50 per cent to begin with which would be subsequently raised to the stipulated 70 per cent market as per the automobile policy.

Maruti recently held a meeting of its directors in Hungary earlier this month. The board took into cognizance the impact of rising competition on the auto major market share and also chalked out the launch schedule of the new models.

The company is slated to introduce an upgraded version of its Zen model with multi point fuel injection (MPFI) in September this year. This will make the popular model Zen model Euro-II ready, said officials.

In the last one year the company'smarket share has been under constant pressure with entry of new entrants in the automobile segment. Maruti which had around 85 per of the market till beginning of last year, has seen its share fall to around 70 per cent this year.