Maruti will have double the order from Nissan

Finding encouragment in the statistics revealing the healthy demand for small cars in Europe, Nissan Motors has decided to nearly double the number of cars that it buys from Maruti Suzuki as part of a contract manufacturing tie-up between the two companies.

Maruti chairman R.C. Bhargava told TOI that against the earlier placed order of 30,000 units for this fiscal, Nissan has now ensured us to buy some 54,000 units. As part of the contract manufacturing arrangement, Nissan buys the Maruti A-Star compact from Maruti and sells it under the Pixo badge overseas.

Total exports to Nissan will now far exceed what was originally projected by them as the car was getting good response in Europe due to the ever- rising demand for small cars.

Annual Order in excess of 50,000 units definitely comes as welcome news for  Maruti as initially its manufacturing tie-up with Nissan appeared to have run into rough weather . While initially Nissan had agreed to source 50,000 units from Maruti, the company appeared to have developed cold feet later, deciding to reduce the order size.

This news is indeed a great one for Maruti as it is assured of a confirmed off take from Nissan,’’ an analyst with a brokerage firm
said.