Country’s leading carmaker Maruti Suzuki India Ltd. (MSIL) has it’s eyes set on other Asian markets too.As per reports, MSIL is planning to export some of its models as Completely Knocked Down (CKD) kits. The exports are to begin with the upcoming multi-passenger vehicle Ertiga.
Reportedly, Maruti Suzuki India MD S Nakanish said,”There is a great potential to export vehicles as CKD in many markets in Asia. Maruti will act as the biggest supplier of cars to the parent SMC and to start with we will dispatch Ertiga MPV and other new models from next year.” It is known that Ertiga will be available with a 1.4 litre petrol and 1.3 litre diesel mill and expect the MPV to be the first midel to be shipped to Indonesia and Thailand. It’s CKD kits will include drivetrains and suspension among others.
Suzuki holds a 9 % share in Indonesian market and with the introduction of Ertiga, the jap auto maker will compete with Toyota Avanaza, Daihatsu Xenia and the likes. It may be noted that importing a car to Indonesia invites 26 percent duty whereas cars brought thru CKD route warrant just 10 percent of the car’s cost as tax. Maruti Suzuki is busy overhauling its production capacity and has set a target to sell 20 lakh units by 2015 and that means a fair share of this number will be exported under Suzuki badge.