Maruti Suzuki plans to hike exports to counter rupee fall
Jul 05 2012, 12:49 | By CNBC-TV18
India's largest passenger car maker Maruti Suzuki is working on a new strategy to step up its exports, a move promoted to counter the weakening rupee.
Maruti Suzuki on Monday reported a 20.3% increase in sales, including exports, at 96,597 vehicles in June from 80,298 units sold in the corresponding month of last year.
Domestic sales grew 19.3% in the month under review at 83,531 units from 70,020 units sold in June 2012. Exports rose 27.1% at 13,066 units as against 10,278 units shipped out in the corresponding period of 2011.
The total passenger cars sales in June increased by 23.1% at 70,977 units from 57,653 units sold in the corresponding month of last year.
CNBC-TV18 learns that the company is looking to increase its export share out of the total net sales to 11%. It is also mulling diversifying product basket for exports. However, the company's export push will be only for petrol cars.
"The higher export and lower import strategy will improve our bottomline as there is a very high disparity between the two," a Maruti official told the channel.
Maruti imports at 21% of net sales and the company plans to bring it down to 13-14%. "We will focus on non-European markets for exports," the official said.
In FY12, the exports to non-European markets stood at 66%. Maruti is betting on synergies with Suzuki to help in export markets. The auto major's average monthly exports is about 10,000 units.
Segment-wise sales of the company's entry level hatchback brands like M800, Alto, A-Star and Wagon R declined by 10.4% at 34,198 units from 38,183 units sold in the like period of 2011.
Maruti's compact cars and utility vehicles both showed improved sales as the firm increased production of diesel-powered cars.
Diesel fuel, widely used to transport goods and services across India, is priced about 40% cheaper than petrol.
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