Suzuki Expansion Plans for India

By the year 2010, Suzuki Motors plans to increase their dealership in India. This is a step to increase their sales to one million units as well as for the better position in the Indian auto market.

The annual growth of Indian auto industry is 10 percent and now it's a hotspot for other foreign carmakers. Japan's leading car manufacturers, Toyota Motor Corp, Honda Motor Co and Nissan Motor Corp are also in the queue to start new plant in India by 2010. With the growing sales in India, Suzuki plans to concentrate on the foreign market rather than rather than its domestic market.

Even though Suzuki with its partner Maruti Udyog has heralded many successful ventures the latest ones being the Swift and SX4, Suzuki plans to completely fund the dealership expansion plans. The expansion is estimated to cost $ 3.5 billion, out which a quarter will be assigned for amplifying dealership network to 1000 in numbers.

So far the competition was not so strong but with the cheap and small cars from other auto makers have made them to be more competitive. The Maruti 800, now costs from Rs 1.92 Lakh in New Delhi showrooms. By compromising on car prices, they can be the at the risk of low profit margin and the branding may also affected. However, this move could help Suzuki to maintain pride in its biggest market as the company faces greater competition from its rivals.

Their global car A-star and Splash in the compact car segment that unveiled in the 2008 Auto Expo will be launched commercially by end of this year and with its Indian manufacturing facility to make Maruti Suzuki A-Star units to be exported to Europe. It has also announced its Swift sedan (diesel and petrol) and diesel version of SX4. The Swift sedan will be a replacement of Esteem sedan.