India to become Suzuki’s export hub by March 2015

Suzuki has announced that all its export operations for the Middle East, Africa, Latin America and South-East Asia are going to be moved to India. The process of shifting will be completed by the end of the next financial year.

“Suzuki’s overseas marketing division functions on a territorial basis. All of them will shift to India with export headquarters being set up at our office in Vasant Kunj,” R.C. Bhargava, chairman of Maruti Suzuki India Ltd. told a Mint reporter. “People from Suzuki’s overseas operations will be based out of here,” he said.

Suzuki has since long been taking steps towards making India its export hub. India’s strategic location and its proximity to ports make it suitable for exports.Earlier this year, Suzuki had started exporting the Swift to its RHD as well as LHD markets, owing to the excess capacity at the Manesar plant. Suzuki has been making several changes in its operations since facing huge losses in the US market and its eventual exit from there in November. Rising labour costs and ageing population in Japan have also influenced Suzuki’s decision, Bhargava added. On the other hand, India has been driving Suzuki’s growth, with Maruti contributing 40 percent of the parent’s net profit. Maruti currently exports 10 of its production and they aim to increase it to 15 percent in the near future and to 20-25 percent in the long term.

In a bid to beat the slowdown of sales in India, automakers have been looking at boosting exports. The depreciating rupee helps manufacturers in increasing their foreign reserve as well as their profits. A rise in exports to emerging markets is providing comfort to car manufacturers at a time when demand in the European and American markets has slowed.