Latest Car News in India

Wednesday, November 28, 2012

By Manoj Kumawat

Export oriented Suzuki small cars to be produced in India

The Japanese car maker Suzuki will soon start producing all its export model of cars in India. The Japanese wing will then be catering to the local needs and India’s plants will also be producing all the cars that Suzuki exports. Already India is producing Maruti A Star which is an export model and is also producing Maruti Swift and Swift Dzire for the export markets. Maruti also produces A Star lookalike Nissan Pixo car for Nissan as well. This will not only create more jobs in India but India will soon be the hub of all the export models of Suzuki cars. Initially export oriented small cars will be produced in India.  



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In the meantime, with this strategy in place, Maruti should have expansion plans on its cards as the extra load should not affect the domestic supply. It is believed that the new plant at Mehsana will be the place where the export models will be produced as it is also near to the sea port. As per reports, the new plant of Maruti will produce as high as 10 lakh cars per year. Currently in the set up phase, the plant will invite a total investment of around Rs 8000 crore.  
Producing cars in India instead of Japan will be very cost effective for Suzuki and this will help reduce the input cost as well as it will step up the profits of Maruti’s parent company Suzuki. Which all cars will be produced at the Manesar plant is yet to be finalized but as per reports, the small cars will be produced in India. This is a similar strategy already adopted by other car makers such as Renault that is producing the Dacia Duster for the exports to UK. Ford, Toyota and other car makers are also producing cars in the country to cater to the markets worldwide.

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