Suzuki Motors to Move Small Car Production to India

Suzuki Motors has announced its decision to shift its production base for its small cars from Japan to India. There are a variety of reasons that have made Japan unfeasible for small car production, chief being the appreciating value of the Japanese Yen. Due to the rise in the value of the Yen the small car products from the Japanese automaker are starting to become uncompetetive. Additionally due to Japan's affinity for natural calamities, production often suffers.

According to Suzuki Motors, the propsed re-location will take place once the Gujrat plant is operational, after which India will be the hub for Suzuki's small car exports to the international market and Japan will be limited to catering for the domestic market.

Maruti Suzuki is expected to make a sizeable investment of Rs. 8,000 Crore on the Gujrat plant which will take place in phases. Maruti Suzuki confirmed this by stating that the Gujrat area is ideally suited for the export of its products and the final clearence for this will be given by the board around January, 2013.