Prime Minister Narendra Modi and Japanese Prime Minister Shinzo Abe race ahead in their deals for the high speed bullet train, defence technology and civil nuclear cooperation. In a historic move, as a part of the ‘Make in India’ policy, Japan has also announced that they will be importing cars from India, produced by Japanese controlled Maruti Suzuki India Limited. If things go according to plan, exports to Japan are set to commence from January 2016 with the India-made Maruti Baleno.
Maruti Suzuki India Limited is a leading automaker in India with sales touching 1.2 million units. As of now, their exports are limited to Africa, Latin America and a few European countries. This is the first time they will be exporting cars to their parent company’s home country – Japan.
As Maruti Suzuki works at establishing itself alongside other global automakers, exports are being developed for 2016. The premium hatchback Baleno is being planned for exports to over 100 countries including Japan and Europe from early 2016.
The initiative of exports to Japan in particular, has taken 32 years ever since 1983 when Suzuki entered into a joint venture with Maruti and the first car, Maruti 800 was produced with expertise of the Japanese automaker. This export of cars from Maruti Suzuki India to Japan could initially account for around 30,000 units per annum. Maruti Suzuki has come a long way since 1983.
Maruti Suzuki India Limited has maintained its lead in the Indian auto sector with every second car sold in the country being a Maruti model. This is despite the fact that the company faces tough competition from automakers like Honda, Hyundai and Toyota and otherwise severe market conditions in the country