Maruti Suzuki set to export made-in-India car to Japan

NEW DELHI: Maruti Suzuki India will for the first time export a made-in-India car to Japan, the home of parent Suzuki Motor Corp, in a move that could lead to India becoming a Suzuki export hub, an executive of the Indian business said.
Suzuki already derives about a third of group revenue from Maruti, which sells one in every two cars in India but is seeking to step up growth in more developed markets.
The Indian carmaker launched its premium hatchback Baleno on Monday and will begin exporting it to 100 countries including Japan and Europe from early 2016 as it works to establish itself alongside more upmarket global automakers.
If Maruti is able to win over customers with the quality and design of its made-in-India Baleno, it has the chance to become an export base for future models, Kenichi Ayukawa, said Maruti’s managing director.
“Competition is very high in developed countries ... they have a lot of good products and under that condition we have to compete. If this product will be successful we have a chance to grow our strategy,” said Ayukawa.
The export strategy has yet to be finalized, but India has a chance to establish itself as a Suzuki export hub, Ayukawa said, adding that Maruti plans to export about 50,000 units of the Baleno in 2016.
Global carmakers such as Volkswagen, Ford and Hyundai use India as an export hub for emerging markets in Africa and Latin America, taking advantage of the country’s low-cost manufacturing base.
Though Maruti is India’s leading carmaker, selling 1.2 million cars in the year to March 31, its exports are limited and mainly to countries in Africa and Latin America.