Thursday, 26 September 2013

Suzuki To Make India The Swift Hub

One of Japan’s largest car makers has decided to shift production of the internationally popular Swift to India. Maruti Suzuki’s manufacturing plant in Haryana is currently producing 14,000 units of the Swift every month while it has a capacity of producing 17,000 units. With the domestic demand restricting the scale of production, the remaining capacity will be dedicated towards exports to International markets. The Manesar plant has begun manufacturing units that are dedicated to the Latin American, West Asian and African markets. All these markets received their supply from the domestic plants in Japan as they are all LHD nations.

However, now that the plant in India has acquired the necessary facilities to manufacture both left and right hand drive vehicles, Suzuki Motor Corporation has decided to begin expanding operations in India. Aside from the plant’s capability to cater to multiple nationalities, the decision is supported by the fact that India had proved to be an outsourcing hub. The fact that manufacturing in India is cost effective has led Suzuki to look at India as both a buyer and a producer. Plans are also on to shift from CKDs to CBUs for markets like Vietnam, Thailand and Malaysia in order to improve profitability.

The operations moving to Manesar provides good news on multiple levels. The shift will generate more employment at the plant and also assist the brand in the European market. The only LHD Swift producing plants were the ones in Japan and Hungary and with this move, Suzuki could improve its expansion plans in the region. Currently the Swift is powered by a 1.2-litre petrol and a 1.3-litre diesel in India while the larger 1.4-litre petrol is made in Japan. What’s more is that if Suzuki adds to its existing operations in India we could see more models being not only produced, but also sold here.  

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