Maruti Suzuki, India’s largest car manufacturer is conducting feasibility studies to set up a manufacturing facility in Africa. According to a company official, entering the African shores is a long term plan for Maruti Suzuki. It will take around 3-4 years to come up with a new manufacturing facility in Africa. For the time being, Maruti Suzuki is expanding its manufacturing facilities in India to increase its market share and sustain its dominating position amidst stiff competition.
Maruti Suzuki is expanding their plants at Manesar and Gujarat. The company is expected to complete their expansion in India first and then install a new manufacturing facility in Africa. They believe that Africa is one of the largest export markets for the company, hence the move. Maruti Suzuki is likely to commence production in South Africa with LCVs (Light Commercial Vehicles), as the company will be introducing a new LCV within two years from now.
However, the manufacturing plant in Africa would bear the title of Maruti Suzuki’s parent company, Suzuki Motor Corporation, just like in Indonesia. Maruti Suzuki is also considering an assembly plant in Sri Lanka. Tata Motors, Mahindra and Hero MotoCorp also have presence in Africa. Automotive sales in the African market are growing rapidly at present and it is the right time for Maruti Suzuki to cash in on the great opportunity.
Source – The Hindu Business Line
