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Maruti Suzuki eyes CKD exports to Asian markets
Country’s leading car manufacturer Maruti Suzuki has always been a pro in exporting its select car models seamlessly. The new MPV from Maruti India, the Ertiga is not going to be any different. But what will be different this time is the auto major is hoping to export its cars as CKD beginning with Maruti Ertiga. Most probably, the auto major will introduce their new products at the 2012 Auto Expo. This will mark the beginning of the exports of Maruti Ertiga as well as a CKD. The key Asian markets targeted by Maruti Suzuki for its flock of cars are the Indonesian and Thailand markets.
Published On Dec 06, 2011 03:36 PM By Vidyadhar
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Here is the factor that could help the auto major to place Maruti Ertiga price competitively in the markets abroad. Suzuki Motors has 55% stake in Maruti India and it has 9% tie-up in the Indonesian market as well in the same lines. More than anything else this will help the auto major to assemble the knocked down units of the Maruti cars at the Indonesian unit. The benefit here is a knocked down model attracts lower import duties against the completely built unit. While a 10% tax is levied on CKD unit, 26% of tax is slapped on the CBUs in Indonesia. Moreover, any CKD unit will include all the key components to form the required skeleton. Similarly, Maruti India keeps this in mind while developing the CKDs intended for exports.
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The Maruti Ertiga for example, will have the essentials built into the CKD including the engine, transmission, fuel tank and suspension. The rest of the assembling part will have to be taken care by their counterpart in Indonesia in this instance. A brief review on the new MPV will bring us abreast with the facts on the first car from MSI to be exported as a CKD. The car is expected to be a marked deviation from the rest of the Maruti’s utility vehicles with the options of both the 1.3 L petrol engine and a 1.4 L diesel engine under the hood. The car with a massive built can easily accommodate seven passengers quite comfortably. Maruti Suzuki is one of the auto giants to handle majority of exports from their local manufacturing units to the markets abroad. Car manufacturers of late are finding exports more beneficial over the low sales in comparison.
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