INDIA: Maruti to export CKD kits to Asia

By Graeme Roberts | 7 December 2011

Maruti Suzuki India plans to export CKD (completely knocked down) vehicles for assembly overseas.

The company will begin exporting models like the Ertiga, the new multi-passenger vehicle that will be launched in January at the Delhi auto show.

Managing director S Nakanish said: "There is a great potential to export vehicles CKD to many markets in Asia. Maruti will act as the biggest supplier of cars to parent Suzuki and to start with we will ship the Ertiga MPV and other new models from next year."

Ertiga, a seven seater MPV, will have 1.4-litre petrol and 1.3-litre diesel engines. This vehicle will first be shipped to Indonesia and later to Thailand. The CKD kits will be packed and dispatched from Maruti's Manesar plant.

In Indonesia, the Ertiga will compete with models like the Avanaza and Daihatsu Xenia. CKD units in Indonesia attract a 10% import tax while fully imported cars are hit with 26%.