Maruti Suzuki has decided to increase the use of local components in its vehicles as the decline of the rupee raises the cost of imported parts.
Maruti Suzuki’s CFO Ajay Seth told Bloomberg, “The rupee’s fall is adversely affecting us as we’re a net importer. We will continue to aggressively localise sourcing; it’s not going to happen overnight.”
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The company’s import costs amount to around 20% of its sales. Seth said the automaker had currency hedges only until the end of June.
