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Monday, January 07, 2013

By Shilpa Chopra

Maruti assembly plant to be established in Africa

It’s time that Maruti Suzuki also takes into consideration the international markets yet again. The company is planning to establish a new assembly plant in Africa to enhance and amplify the sales and exports in developing countries of Asia. As we all know that the European market isn’t in its best condition and has been facing a slowdown. This has caused the Maruti sales in global markets tumble down from 70 to 30%, which is drastic. This means that the export from the Indian manufacturing plants of Maruti has also chopped down substantially. Therefore, setting up a new plant in Africa will definitely help the firm in evening out the total sales of Maruti Suzuki India. 


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Numerous countries in Africa are in the developing stage and MSI has made a right decision as it is also one of the best markets to tap upon. Maruti is known for fuel efficient and cost effective cars and Africa will gladly accept them with a warm smile. Maruti 800 was in the Indian car bazaar for more than 15 years and the company has plans to see 800 and Alto there as well. Setting up an assembly plant over there, will also help Maruti Suzuki keeping the cost of the cars under control as many countries charge heavy taxes for the imported cars, which makes the basic cars very expensive. 
Maruti Suzuki will try its best to set up a plant, which has a strong supplier base in Africa. Right now, Maruti has impressive sales in African countries, such as Morocco, Algeria and South Africa. The company is also doing well in other places as well such as Indonesia, Chile and Australia. also, the company is mulling on expansion in places like Dominican Republic and Colombia. 

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