Maruti Suzuki is planning exports of 130,000-140,000 vehicles in the current fiscal year although it said that it expects a slow down over the next year as sales incentives are removed in European markets.
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Managing director and chief executive officer Shinzo Nakanishi told reporters at the New Delhi show that the company aims to keep operating margins at 10% in fiscal year 2009/10 but profitability will be impacted by a rise in raw material prices and a rise in the yen.
Maruti Suzuki will decide this month on a plan to expand capacity as rivals introduce new models to challenge the dominance of India’s biggest carmaker.
The automaker will utilize its cash reserves of INR50 bn (US$1.1 bn) for the expansion, Ajay Seth, the company’s finance head, told Bloomberg News. Maruti expects sales this fiscal year to reach a record 1m units.
Vehicle sales in India surged 61% in November, the fastest pace in more than five years, according to the Society of Indian Automobile Manufacturers.
