Maruti Suzuki – India’s biggest carmaker eyes greener pastures in Africa

 

(pulse.ng) India’s biggest carmaker,  Maruti Suzuki India is conducting a feasibility study for a new assembly plant in Africa, adding that the study is in its early stages

 

A push into Africa and the establishment of its own plant in the region , where there is high demand for small, inexpensive cars, makes sense for the likes of Maruti Suzuki,  as it  could also help it to contend with stricter rules on local sourcing, which have weighed on its exports to the region.

 

Exports to African countries including Algeria, Egypt and South Africa made up about 8 percent of Maruti’s exports. Maruti would need to sell more than 50,000 vehicles a year in Africa to justify setting up an assembly plant.

 

The company posted an 11.7 percent fall in fourth-quarter net profit but, strong sales and lower costs in the previous nine months helped Maruti to a record annual profit of 45.71 billion rupees.

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