Suzuki’s small car hub now to be in India
Confirming the development, Maruti Suzuki India chairman RC Bhargava said, “Small and large car exports from Japan have already become uncompetitive because of the appreciating yen so Suzuki is instead shifting small car production to India.” Bhargava added it was in this context that it was not seeking a relaxation in import duties in any revised trade agreement with Japan.
Apart from factors like an appreciating yen, which has made exports uncompetitive, and natural disasters in recent times, the shift to India makes sense because SMC is primarily a maker of small cars and has developed a huge component vendor base and supply chain in the country. The labour cost in India would also be less and Gujarat is ideal for exports, being a coastal state.
“Gujarat is ideally suited for exports and this was why we chose to locate the new facility there. We have already bought two tracts of land – 640 and 470 acres – for about Rs 450 crore and they are about 18-20 km