"This global alliance is an entirely separate agreement and has no bearing on any of GM's or Suzuki's existing business assignment's in India including the Maruti-Suzuki operations," a General Motors official told PTI.

The American auto giant, operating in India through an equal status joint venture with Hindustan Motors, had raised its stake in SMC to 10 per cent from 3.3 per cent yesterday. SMC is a 50:50 joint venture partner with the government in the Rs 8,400 crore Maruti Udyog Limited.

General Motors, ranked the topmost automobile company in the world, increased stake in Japan's largest minicar maker by purchasing shares worth about $ 320 million.

Industry sources here feel that all partners involved in any joint venture partnership with SMC are poised to benefit from the General Motors' decision to hike itsstake in SMC. Though no other partner of SMC was involved with the agreement all of them would naturally share the benefits of the global alliance through SMC, the sources said.

SMC has around 30 joint ventures across the world, including the Maruti Udyog Ltd in which the Japanese minicar major holds 50 per cent equity. However, General Motors officials said the decision to hike the stake in SMC would have no bearing on either of the company's Indian operations.

Though SMC and GM have a 50:50 joint venture in Canada to manufacture small cars, industry sources ruled out any possibility of Maruti entering this market.

The sources said SMC would expand its capital base to collaborate with the GM in Europe, which is currently an export market for Maruti. The agreement, which further deepens the 17-year-old partnership between SMC and GM, also calls for the development of a new small car by Suzuki for European market.

Suzuki is also going to be a full-line car maker manufacturing small to large vehicleswith the assistance of GM, while helping the U S auto major to add a few models of small cars to its stable.

SMC is currently supplying similar vehicles to GM for North and South American market. GM has a strong presence in Europe, North and South America and Africa while SMC has a significant market share in Asia and the Pacific region. "We plan to explore various opportunities around the world. Wherever there is a need from these markets, we will move aggressively to meet that need," SMC president Osamu Suzuki said after signing the agreement.

Under the agreement, SMC would have the primary responsibility for design and development of small and mini vehicles and their engines in Asia, while GM would have the similar responsibilities for medium and large cars. An exchange of advanced technologies between the two was also being contemplated under the agreement.