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Maruti Suzuki Europe Exports To Be Suspended For 15 Months
Maruti Suzuki might be India's largest car manufacturer, but a significant part of its income comes from selling cars outside India. Among foreign markets Europe is one of Maruti's largest export base, accounting for 30 percent of its entire export business.
In fact, export to Europe increased from 24,000 units during the last financial year to 30,000 units during FY2014. Even as business is going well Maruti Suzuki will have to stop exporting to Europe from April-June. Here's the reason.
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At present, the only model that Maruti ships to Europe is the A-Star. The A-Star, which has already been discontinued in India will soon follow suit in Europe as well. Hence, once the last remaining batch of 15,000 A-Star hatchbacks are sent off to Europe Maruti Suzuki will no longer have any other product to sell in that continent.
As for the new Celerio, which is globally replacing the A-Star, Suzuki's Thailand facility will cater to the European market. That's because the Celerio manufactured in India by Maruti Suzuki is only Euro 4 compliant, while those made in Thailand have Euro 5 rating.
Maruti Suzuki will restart its export business to Europe, however, that will only be in September 2015. The car that will reach Europe that time over will be yet to be launched, all new premium hatchback, codenamed YRA.
The 15 month gap will result in a 10 percent drop in export for the Indian automaker. To make up for the loss Maruti Suzuki will increase exports to the remaining 100 odd countries in Africa, South America, Southeast Asia and neighbouring countries.
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