Maruti Suzuki looks to rural market, Europe for sales growth

Live Mint has reported that Maruti Suzuki aims to focus on the western Europe market, as part of its plans to boost sales in 2009-2010. Maruti Suzuki is aiming for a 50 per cent growth in exports, in 2009-2010. The Maruti Suzuki A-Star model, sold under the Alto brand, has been well received in Europe.

The company plans to make India the A-Star’s production hub for exports. The auto major also plans to intensify its plans for the domestic rural market.

Rural sales contributed around 8 per cent of the company’s overall domestic sales.

The company is now aiming at a 10 per cent rise this financial year in the domestic rural market alone.

Maruti Suzuki, at present, enjoys 50 per cent market share in India. The company’s sales increased to 64,857 vehicles in April 2009, spurred by the success of the Maruti Suzuki Alto, and its latest models, such as the Maruti Suzuki A-Star and Swift Dzire.

In 2008-09, Maruti Suzuki’s sales grew by 3.5 per cent from 7,64,842 units in 2007-2008 to 7,92,167 units in 2008-2009.

Meanwhile, Suzuki Motors has said that it has benefited greatly from the growth in sales in the Indian market, in the first quarter of 2009, despite the slowdown in the global automobile market.

The Economic Times has reported that the company is looking at strengthening its R&D facility to build cars independently in India.

So far, the Indian R&D team has only been involved in the development of the Maruti Suzuki Swift, DZire, and SX4, and the revamping of cars like the Omni and Zen.

Maruti Suzuki has said it will add to the headcount of its R&D division by the end of March 2010. The company plans to increase its headcount in the R&D division from 720 to 1,000.