Maruti Contemplates Setting up Assembly plant in Africa

Added in: Maruti Suzuki

Nation’s largest carmaker by volumes, Maruti Suzuki, is contemplating setting up its first assembly plant abroad in Africa.

Maruti is trying hard to increase its foothold in the export market and Africa is a relatively unexplored territory for MSIL. Maruti Suzuki chairman R.C. Bhargava said the carmaker plans to double its exports in the next four years. “We will look at local assembly for two reasons. Firstly, there’s usually a tax advantage. And second, there’s pressure from governments in these countries to assemble models locally.”

It may be noted that Maruti sells Alto and 800 small cars in Africa and a local assembly plant would help bring the costs down.

Thanks to fast depleting demand for AStar in the European market, Maruti’s exports have reduced to 10 percent from two years earlier. Currently, MSIL’s majority exports head to Algerian car market, followed by Indonesia, Chile and Australia.

Maruti also has considerable presence in South Africa, Morocco and Egypt.

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