Maruti Suzuki increases focus on Europe
India’s largest car manufacturer in India Maruti Suzuki is making a slow progress the European market. The company has recorded total exports of 5,52,000 units since 2008 with more than 2,80,000 units coming form Europe and Israel. Maruti Suzuki has realized that there is a huge market of opportunity awaiting it them in Europe.
The Europan continent has been largely favourable for small car markets. Many small cars like Volkswagen Beetle, Fiat 500, Fiat Bravo, Ford Fiesta hatch and Hyundai i10, i20 have relieved huge response. Further, globally people are leaning more towards small cars the bigger sedans for their fuel efficiency and low cost of maintenance. Hence Maruti Suzuki is planning to export 1,50,000 units by end of 2011, a growth rate of 50 percent.
Currently the company exports- four models- A-star, alto, Maruti 800 and Zen Estilo, The domestic market is driven by strong sales form Alto, Swift hatch, Dzire sedan and SX4. The company is laying special emphasis on sale of small cars. The Maruti line-up includes seven small cars- A-star, M900, Omni, Alto, Swift hatch and Zen. A new premium small car Ritz is joining the line-up on May 15, as the eighth product. This new product is likely to drive sales in India and later exported to other Suzuki markets.
In the last fiscal year, Europe has recorded 1.43 million units as sales and the small cars form a major part of this sale. This however, is down by 8 percent compared to the previous year suggest analysts. The company wants to focus on European countries like the UK, France Hungary, Italy and Netherlands. But, Maruti now wants to promote its entire line-up to European countries. Netherlands forms the biggest market for A-Star with demand for nearly 70,000 units. It also plans to export the 1 lakh cars to non-non-European countries.
But exporting to Europe is not a new experience to Maruti Suzuki. The company has been exporting its products from 1985 up to 2004. It was briefly stopped for four years and was revived in 2008. The company also bought a dedicated port- Mundra Port for exports exclusively for Europe. This clearly denotes that Maruti is give special emphasis on exports to Europe.
Meanwhile, the company is eye huge sales after the scrapping system become effective in Europe. Under this scheme, car owners who exchange their 10 + old year cars for new ones will be give special discounts or cash gifts. The local governments are promoting sale of fuel efficient small carsand hybrids to reduce dependency on oils. Moreover the scrapping system will also revive the sinking auto industry and keep it buzzing with life. The government envisage that this bring back European economies from recession. The scrapping system will encourage sale of small cars and Maruti has a highly fuel efficient line-up of cars.
In another thrust to Maruti’s expansionist plans, the parent company Suzuki Motors Corporation is trying to give it an independent identity. Maruti Suzuki is now looking for engineers and technocrats who have worked in international car brands to help shape the future for the company. A completely new workforce and new teams will help develop concept cars, and new platforms independently of Suzuki. Maruti will be responsible for creating concepts, production models, sales of its own models. These new car models wil be sold in the domestic and European car market. It seems that Maruti is going increase its presence in Europe as the years roll by.
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