Maruti to increase exports to combat weakening Yen

Maruti Suzuki India has decided to increase its exports to parent company Suzuki’s various plants in an effort to tackle the effects of a weakening Yen. According to a report on CNBC Moneycontrol, the Indo Japanese automaker had also been working on reducing imports for quite some time and this is understood to be their next step. 

The report says MSIL is planning to focus exports to markets like Thailand and Indonesia and has already started exporting CKD kits of the Swift and the Ertiga. Exports from Indian carmakers to the European markets had been significant during the scrapage scheme era but had taken a beating after the scheme was stopped. 

Maruti Suzuki’s revenue from exports currently stands at eight per cent of its total revenue and it hopes to increase this to 15 per cent by 2015. With the financial crisis worsening in Europe it only seems logical that Suzuki would focus its attention on the Asian markets. It recently announced plans to setup a new facility in Myanmar by 2015, which will have a production capacity of 20,000 to 30,000 cars annually. 

Meanwhile, Pakistan Suzuki has sought permission from its government to imports parts of the Alto from India (there is an embargo on trade between both countries). They had stopped production of the Alto since July of this year as around 159 parts required to make it Euro-II compliant were not available locally and are only manufactured in India.

Reports say the halt in production has affected 76 part manufacturers and caused a loss of two billion Pakistani Rupees (Rs 114 Crore).