India will be the export hub for Maruti Suzuki cars

Maruti India is increasing its presence as well as significance in the Suzuki Motors’ global plans. That is why all new cars of Maruti will be manufactured in India for export to other countries. 'Global models' like Maruti R3 (also called Maruti Ertiga), a new Maruti 800, Maruti A-Star, new Maruti Swift and Swift Dzire sedan will exported to other countries and simultaneously be sold in the domestic market. China, Europe, Japan and south East Asia will receive Maruti Suzuki cars completely made in India. The move comes on the backdrop of Maruti Suzuki’s recent plan to start a new facility of two million units capacity in Gujarat by 2015. This facility in Sanand will be a major export hub for the company in India. Suzuki plans to make Maruti an export hub to meet increasing small car demand globally due to rising fuel prices and stricter emission norms.

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Not just Suzuki Motors but many car-makers have adopted this strategy. Even Hyundai Motors has established India as its export destination for compact cars globally since 2008. The company exported 2,47,102 cars in 2011, out of  its total sales of 6,03,819 units. Other foreign based company Nissan Motors exported nearly 85% (42,540 units) of its total 49,348 units so far this fiscal whereas Ford Motors exported nearly 25% (10,118 units) of its 47,004 units produced. Maruti Suzuki India is also setting up a R&D unit in Rohtak, Haryana that would be Suzuki’s largest R&D facility outside Japan. Maruti's export strategy is perceived to be a fresh entry into new markets such as China as well as Japan indicating that Maruti may not develop a specific-India market model.

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Although Maruti’s sales are in a shabby condition right now, the company expects its exports to increase in long term. The company also aims to strengthen Indian plants so that they can carry out full model change in terms of their design by 2015. This exercise will be time-saving and eventually new models and variants could be launched at faster pace. Suzuki Motors presently exports Maruti 800, Maruti Alto, Maruti Estilo and Maruti Ritz to neighboring countries, apart from South East Asia, Africa and Gulf countries. Europe accounts for about 50% export volume for Suzuki cars where it offers just one model-Maruti Suzuki A-Star. But since, unrest is prevailing in European market, the company is denying to unveil volume targets for oversees.

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