Car export expected to go down this year, says Maruti Suzuki
On Thursday, Maruti Suzuki India mentioned to the media that the exports are expected to go down a bit this fiscal year reason being the sluggish global market conditions. According to the chairman of Maruti Suzuki India, Mr. R.C. Bhargava, the exports will not be impressive this year and are likely to remain same as 2011 or may even be much worse. The global market condition hasn’t improved so far. last financial year, which ended on 31st march 2012, MSI’s export came out to be around 1,27,379 units, which shows a downfall of about 7.9% as compared to last fiscal year. Maruti Suzuki India exports its cars to Latin America, Europe, Middle East and other South East Asian countries. Maruti India is expecting high and is wishing to see a growth of 10% more in its total sales this year. This growth is likely to be driven by diesel cars. The firm is expecting around 1.5 lakh of more sales of diesel cars, while the petrol car sales might trip by 50000 units this year.
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In the year of 2011-12, the sales of MSI tumbled down by 10.8% (1133695 units) from 12,71,005 units, which was in last year. Mr. R.C. Bhargava mentioned that there are a lot of challenges for the firm in 2013. The main one is the ever rising fuel cost. The future prices of diesel and petrol are going to decide how the market condition will be this year. Right now, the auto makers are busy guessing the future prices of fuel. Maruti Suzuki India is also planning to establish a diesel engine production unit by investing Rs. 1700 crore by 2014 at Maruti’s Gurgaon plant. The car assembly capacity would be reduced at the Gurgaon plant. Mr. Bhargava mentioned that the company will close one car production line amongst the 3, which are present now. presently, MSI has a capacity of producing 7.5 units every year, and by closing one unit, it will cut down about 2.5 lakh units capacity. This will be done only when the Gujarat plant is up in action by the year of 2015.
