Auto India, Car India

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In the month of January 2012, Maruti-Suzuki Ertiga is set for its revelation. It will be exported as a CKD unit to markets abroad. We will discuss here about export plans of MSIL. Maruti Suzuki, India passenger car leader has planned to begin exporting a few of its models as totally knocked down Units (CKD). The CKD kits exported will consist of brakes, suspension parts, wheel rims, Fuel tank, engines, and transmission systems. Exports are going to start with the new Ertiga of Maruti Suzuki that is a seven seater MPV will be released in the month of January 2012 at New Delhi Auto Expo. Maruti Suzuki’s Ertiga will be available with a 1.4 litre K-series engine and 1.3 litre-turbocharged diesel engine. Maruti Suzuki will also export another new Swift DZire in early 2012.

Maruti Suzuki for Suzuki Motor Corporation, its parent company in Japan, produces a huge number of cars. Suzuki Motor Corporation has an eye on profitable export markets in a few countries like Indonesia. Same like India in Indonesia also, a completely imported car is taxed at almost 26 percent. At only 10 percent, CKD units are taxed that indicates that the CKD route is a more feasible way for car dealers for selling their cars in Indonesia as compared to establishing a plant over there.

Exports planned for Suzuki cars made in India to a few other South Asian countries. The CKD option in a few other parts of our world is very profitable for car dealers if they develop their own cars in India because of high labor prices in Western countries. Maruti Suzuki Company has decided to increase the production capacity for the production of car in India by doing the annual production target of 20 lakhs vehicles by the year 2015. It has been also planned by Suzuki Motor Corporation to export more cars from India under Suzuki badge.