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Maruti Suzuki has indicated that it is likely to end the current fiscal with the same export volume level of last year due to capacity rationalisation plans.
Though the company has reported a six per cent fall in exports at 61,543 units during the first six-month period of this fiscal, August and September saw some strong growth in its exports and the company is expected to maintain this growth in the coming months.
However, due to booming sales in domestic market, the company has been facing challenges in production capacity. Its models such as Baleno and Vitara Brezza have long waiting periods. “This year, we have a severe capacity crunch and our effort will be to rationalise capacity between domestic and exports. Overall, the outlook for the year is to achieve the same level as previous year that translates into 1,25,000 plus units,” a company spokesperson told Business Line .
About 4-5 years ago, Maruti started focusing on non-European markets to minimise the impact of slow down in Europe, which used to account for more than two-thirds of its exports. The company has chalked out plans to enter new markets in non-EU region every year in order to sustain and possibly increase the exports.
R S Kalsi, Executive Director, Marketing & Sales, Maruti Suzuki India Ltd. had recently said that the company would strengthen its focus on non-EU markets such as Latin America, ASEAN, Africa, Oceania and SAARC nations.
Of the total export of 49,000 units during April-August, over 35,000 units were exported to the non-EU markets.
Besides, with Baleno starting early this calendar year, it has just re-entered Europe and initiated exports to Japan. “So far the response to Baleno has been quite positive and encouraging in Europe and Japan,” the spokesperson said.
Over 20,000 units have been exported so far in this fiscal to the EU, Japan and Latin American markets.
Presently, Maruti’s key export markets are Chile, Nepal, Peru, Indonesia, Sri Lanka, Chile, Philippines, Peru and Costa Rica.
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