The news about Maruti Suzuki contemplating on opening a plant in Africa first surfaced back in late 2012. Over three years later, the company has still not finalized on the same. At a recent press meet, there was an update.
Managing Director Kenichi Ayukawa told reporters on Tuesday that the company has commenced conducting feasibility studies for setting up a new assembly plant in Africa, where high demand is noted for smaller and cheaper vehicles.
The setting up of a new assembly plant in Africa would allow the company to deal with stringent regulations where local sourcing was concerned which in the past has affected exports to the region. This new assembly plant, which is still in the initial stages of planning, which will target new markets in Africa.
MSIL currently exports to Algeria, Egypt and South Africa. In the past year, the company exported 123,897 units while exports to Africa will need to be stepped up if this new assembly plant is to be made feasible.
Maruti Suzuki India Limited (MSIL), leading automakers in India, have noted a fall in quarterly net profits for the first time in two years.
Besides expansion into Africa, MSIL has also advanced plans on commencing production at the company plant in Gujarat. The new Gujarat plant will commence production in January 2017 as against May 2017 as indicated earlier. The company is also currently working on the creation of added capacity at existing plants so as to reduce waiting periods of some of their more recent models.