Suzukiís small car hub now to be in India
"Itís a fairly smart move for Suzuki and significant for profitability. They just have to make sure that local labour issues donít disturb global operations later. Car companies have to make India a hub to make India work as a market Ė because to keep prices low at home, they have to have high volumes," Ramakrishnan said.
Suzuki also has a huge first-mover advantage in India in terms of suppliers who are dependent and loyal to Maruti and will invest more for the company, he said.
* Maruti investing R8,000 crore in Gujarat; proximity to ports for exports
* Total production capacity likely to cross 3 million units by 2018-19
* India good small-car export hub as huge supplier industry in place
* Hyundai, Nissan use India as small- car base; Honda, Toyota coming