Maruti Suzuki to export cars from India to Japan

Maruti Suzuki has created history of sorts, by becoming the first Indian car maker to export cars to Japan. This is also perhaps the first time an Indian manufacturer will be exporting cars to its own parent company abroad and the deal is part of Prime Minister Narendra Modi’s ‘Make in India’ push. A move that is expected to raise eyebrows at home and internationally as well, this truly marks the arrival of the Indian automobile industry which was once looked down upon by international manufacturers, Japanese included, for the lack of quality and workmanship.

Suzuki had originally set shop in the country in the early 1980’s, when the Rajiv Gandhi government had tied-up with the Japanese major to manufacture a people’s car in the country. The first car to be rolled out of the plant was the iconic Maruti 800 that has been the most popular small car in the country. Since then there has been no turning back, with Maruti Suzuki going on to become the highest selling car brand in the country. The announcement was made by the Prime Minister and his Japanese counterpart, Shinzo Abe at the India-Japan Business Leaders Forum in New Delhi.

Abe was in India on a three-day tour for various engagements, including the signing of another historic deal apart from Maruti’s exports, that of the Mumbai-Ahmedabad bullet train. Maruti exporting cars to Japan is being seen as a strategic move for Maruti Suzuki, who today contributes to about 40 percent of Suzuki’s global sales and the number is expected to rise in future. The first model to be exported to Japan will be the new Baleno hatchback, currently manufactured only in India.

The Baleno has been launched as a premium hatchback in India, positioned against the hugely successful Hyundai Elite i20 and well-acclaimed Honda Jazz. Powered by a 1.2-litre petrol engine and a 1.3-litre diesel engine the Baleno is Maruti’s next bet on going premium and is being sold only through its Nexa network. Exports could begin as early as January 2016 and RC Bhargava, chairman, Maruti Suzuki said they are targeting exporting 20,000 to 30,000 units of the Baleno annually to begin with. Bhargava was also clear that exporting cars to Japan is not an easy task, though he was positive of the move benefitting Maruti Suzuki and the Indian car industry on the whole in the long term.