Maruti Suzuki India plans to build their first overseas plant in S Africa
Maruti Suzuki is the largest car maker in India. They have a market share of 45% in the Indian auto industry. Their plans to boost car sales in India are in place with the setting up of two new plants in Gujarat at an overall investment of Rs 8,000 crores ($1.46 billion). But the company does not have a plan to match their export growth with this staggering growth in domestic market. Currently, Hyundai, which is the second largest car manufacturer in the country, is the largest car exporter in India.
In order to match their overseas and domestic sales, Maruti Suzuki India is working on setting up their first ever overseas plant in South Africa. Speaking on the same, R C Bhargava, Chairman, MSI, said, “We will look at local assembly for two reasons. Firstly, there’s usually a tax advantage. And second, there’s pressure from governments in these countries to assemble models locally.”
Currently, some of the export markets served by Maruti Suzuki include Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica, El Salvador, Algeria, Netherlands, Chile, Sri Lanka, France, Germany, UK, Italy, Australia, and Indonesia. In these countries, cars made by Maruti Suzuki India are sold under the Suzuki badge.
According to MSI, “The Company has exported over one million units cumulatively. Some leading overseas markets for the Company include advanced western markets such as Netherlands, Germany, France and UK besides non European markets like Australia South Africa, Algeria, Chile, Indonesia, Sri Lanka and Nepal. Today, Maruti Suzuki exports, models such as A-star, Alto, Estilo, Ritz, M-800 across to over 125 countries. In 2011-12 the Maruti Suzuki exported over 127,300 units.”