Suzuki has made its intentions clear of making India it's global manufacturing. Now, Maruti Suzuki plans on setting up an assembly unit in Sri Lanka. The move will enable CKD assembly of products in Sri Lanka, thus attracting lower taxes.
Currently, the SX4, Ciaz, and Ertiga models that are manufactured in India are offered in Sri Lanka as Completely Built Units (CBU). Import of Maruti Suzuki products is taken care by Al-Futtaim Group.
Sri Lanka is the second largest market for Maruti Suzuki branded vehicles. Import of vehicles into Sri Lanka involves a huge sum of taxes, which is passed onto customers and eventually increases the price of models.
Maruti Suzuki was previously approached by Sri Lankan government to set up an assembly unit in the country during 2013. Unfortunately, the taxation structure was an issue and prevented the carmaker from setting up its very own assembly unit.
The all-new assembly unit in Sri Lanka is most likely to be set up in Hambantota. Maruti Suzuki can use the local port for easy access to the Completely Knocked Down units. Citizens will benefit the maximum owing to the lower pricing.