Maruti Suzuki is a household name and a major seller of passenger vehicles in India. Targeting higher skies, it plans to multiply its exports in the next 3 years, for which it will leverage the global resources of the Japanese parent company Suzuki, and its alliance with Toyota Motors. Its overseas shipments in the last fiscal year accounted for a little over 40% of the exports from India. In a parallel development, Suzuki and Toyota are both trying to make India a major sourcing hub, not only for vehicles but also for automative parts and components.
Maruti Suzuki is aiming to export vehicles and components worth up to USD 2.5 billion (₹20,000 crore) in the next three years, according to its filings with stock exchanges under a new rule on related-party disclosures.
Considering the figure of INR 20,000 crore, if each vehicle is sold for an average of INR 5.5 lakh, the number of units would be around 350,000. That would be nearly half India’s passenger vehicle exports projected for that year. Rahul Bharti, Executive Director, Maruti Suzuki India also confirmed that the exports were on a steady upward trajectory, though he did not divulge any specifics.
Until FY22, it was not Maruti Suzuki but Hyundai, who was the largest exporter of passenger vehicles in India. But since then, Maruti has been keeping the spot as 238,000 from the 570,000 vehicles exported from India were manufactured by them, generating a revenue of INR 12,000 crore i.e. more than double their average export earning between FY16 and FY22.
In an export market that grew 42% in FY22, Maruti Suzuki’s overseas volume jumped 147%. The Dzire compact sedan is its highest exported vehicle in the last fiscal year, followed by the Baleno and Swift hatchbacks.
It should be noted that the global semiconductor shortage that crippled the automotive industry did not hamper Maruti Suzuki’s exports, though local production was in a tough spot. Maruti Suzuki India ships vehicles to nearly 100 countries including South Africa, Chile, Egypt, Philippines and Columbia.