India's largest automaker Maruti Suzuki will limit exports to the last year's level due to capacity constraints, a top official of the carmaker has said.
They are not competing in exports (with other carmakers) since they are short of capacity. So, exports will decline.
Maruti Suzuki exported 1.47 lakh units in 2008-09, the highest ever export figures, with the compact car A-star alone clocking over 1.27 lakh units.
'A-star' was exported to European countries, including the UK, France, Germany, Italy and the Netherlands. Major non-European export markets for the car include Algeria, Chile, Indonesia and neighbouring countries.
South Africa, Hong Kong, Australia and Norway were new markets where the company's cars were exported during the year
To address increasing demand for its products, Maruti Suzuki has commenced work to increase capacity at the Manesar plant.
In March 2010, the company had announced a Rs 1,700 crore investment for expanding production by 2.5 lakh units at its Manesar plant.
Production capacity after the expansion will reach 12.50 lakh units by 2012.
All the models are in the waiting list. The average waiting list is three months for the diesel variant of Swift Dezire.
Now Maruti will keep increasing production in whichever way it can primarily to meet customer demand...their reasonable target (to meet the demand) is 2012.
Maruti Suzuki sold 10.18 lakh vehicles in 2008-09 fiscal, the first time in Indian automotive history that a car company has sold over a million units in a financial year. This included sales of 8.70 lakh units in the domestic market, the highest ever by the company in a fiscal.
The growth of the automobile industry might grow by 15%. Even SIAM (Society of Indian Automobile Manufacturers) also said the industry would grow by 12-14 per cent and that is reasonable...but we have to look at base effect also.
Bhargava felt one of the biggest challenges facing the industry is lack of infrastructure especially when they are looking at global developments (in automobile industry).
Maruti Suzuki reported a 17.28 per cent jump in sales to 88,091 units in June against 75,109 units in the same month last year.
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