Maruti mulls limiting exports to focus on domestic market
Maruti Suzuki has been facing a lot of competition in the domestic market, due to which it is going to limit its exports to 15 percent of its total production so that it can concentrate on meeting the demands in the country. MSI had exported .48 lakh units in all for the fiscal year 2009-10.
MSI has said that they needed to take this step to keep our market share. They are also planning to increase their manufacturing capacity sufficiently, besides being extremely aware of the varying customer tastes and their demands so that they can be flexible in making quick adjustments.
At present, MSI has a plant each at Gurgaon and Manesar, with a combined capacity of 10 lakh units per annum.
MSI’s market share dropped below 50 percent this fiscal for the first time since it started selling cars.
The loss has been attributed mainly to stiff competition by rival companies Tata Motors, Ford India and General Motors India who have been getting good response for their small cars - Nano, Figo and the Beat respectively. The company also needs to scale up its R&D to launch its new models and enhance its face-lifts in the Indian market.