INDIA: Suzuki plans small car hub
Suzuki Motor intends to make India its new hub for small cars.
The production base for small cars will move to India with the opening of its new plant in Gujarat when the automaker's main production base in Hamamatsu, Japan, will supply completely the local market.
Maruti Suzuki India chairman RC Bhargava told the Financial Express: "Small and large car exports from Japan have already become uncompetitive because of the appreciating yen so Suzuki is instead shifting small car production to India."
Suzuki has also developed a vast component vendor base and supply chain in the country. The labour cost in India is also less and Gujarat, being a coastal state, is ideal for exports.
Another Suzuki official said: "Gujarat is ideally suited for exports and this was why we chose to locate the new facility there. We have already bought two tracts of land - 640 and 470 acres - for about INR4.5bn (US$80.8m) and they are about 18-20km apart. The final clearance on the first phase of INR40bn investment is expected from the board in January, after which construction will start."
VG Ramakrishnan, managing director, South Asia, at consultancy Frost & Sullivan, said: "It's a fairly smart move for Suzuki and significant for profitability. They just have to make sure that local labour issues don't disturb global operations later. Car companies have to make India a hub to make India work as a market because, to keep prices low at home, they have to have high volumes."
After announcing an after-tax operating loss of A$141m for the 2012 financial year, following a A$290m loss in 2011, Ford has finally thrown in the manufacturing towel in Australia and will close its ...
Nissan is recalling over 800,000 Cube/Micra models because of a faulty steering wheel....
Two Japanese executives who worked for Denso Corporation are facing over a year in a US federal prison following their roles in a price fixing scandal....
Toyota has reasserted itself as the world's most valuable car brand, replacing BMW, rated the top brand in the Millward Brown survey in 2010 and 2012. Toyota held the top spot in 2006-2009 and again i...
Mitsubishi Motors began production of a new mini-car at its Mizushima plant in Kurashiki, Okayama Prefecture, Japan, this week. ...
Mitsubishi Motors began production of a new mini-car at its Mizushima plant in Kurashiki, Okayama Prefecture, Japan this week....
- VEHICLE ANALYSIS: Land Rover Discovery Sport
- THE WEEK THAT WAS: Mitsubishi throws in US towel
- Q&A with Ricardo on future powertrain technology
- COMMENT: McLaren comes of age
- Lear and Dräxlmaier on auto wiring harness trends
- JLR clarifies ASEAN expansion goals
- Delphi ramps up acquisitions
- China market slowdown fears mount
- Audi to debut OLED lighting at IAA
- Chery spearheads China’s auto export drive
- Global vehicle lightweighting - technology, trends and the future
- Global light vehicle engine technologies market- forecasts to 2030
- Global light vehicle steering market- forecasts to 2030
- Global light vehicle OE tyres market- forecasts to 2030
- Global light vehicle roof systems market- forecasts to 2030