Maruti Suzuki is taking huge steps to make India an export hub and become India’s largest exporter of cars within the next 5 years. India’s largest car manufacturer will launch 10 new vehicles in various segments including a light commercial vehicle, an SUV and a premium car. Maruti Suzuki has plans to bump its manufacturing to 3 million / 30 lakh vehicles by 2018. With competition in the Indian market growing by leaps and bounds as well as slow down in international markets, Suzuki will now invest in India to improve the situation.
Maruti Suzuki’s share in the Indian market came down from 44.64 percent in 2010 to 37.76 percent in 2012. So to redeem their position in their biggest market, Suzuki has laid down a massive expansion plan. Four executives from Japan and four from India will head the new team to execute the plans for the new cars and higher production for exports. Maruti Suzuki’s Indian production overtook the production in Suzuki’s Japanese plants in 2012. While Suzuki manufactured 10.61 lakh units, its Indian subsidiary produced 10.63 lakh vehicles which is a lot more than a third of Suzuki’s global production.
So with higher competition worldwide as well as in India, Suzuki has a need to buck up its sales and production to maintain market share and profitability. Suzuki is responding by making India its hub of production and export, which already accounts for 40 percent of the parent company’s profit and a third of its sales. The whole global car industry is shifting focus to developing markets as they provide high volumes and stable profits, so India has become even more vital for Suzuki. With huge losses and its eventual exit from the USA market, Suzuki has some work to do to balance its act.