Maruti to close 2016 with double sale numbers than Japanese parent

As the year is coming to a close, Maruti Suzuki is expected to finish 2016 by producing double the number of vehicles than its parent Suzuki Motor Corp in Japan. This also accounts for more than half the group volume worldwide. While the Indian partner is doing considerably well, Suzuki is facing a slow growth in Japan since the past 21 months. Maruti, which owns 56 percent of the Indian unit is estimated to produce 15.2-15.5 lakh passenger vehicles in 2016 which is double when compared to the expected production of 7.65-7.75 lakh units by Suzuki in Japan. It will also be the lowest production numbers for Suzuki Japan in the past five to six years. However, this could change soon with the opening of a new manufacturing plant that is planned to come up in Gujarat in the month of February next year. Suzuki will run the factory while Maruti will source vehicles from the parent company to sell units in India. According to Economic Times, a person close to the company said, “Though they are a prosperous society, there is no great optimism towards the future, which has hit the consumption of new cars. The mini vehicle segment, which is Suzuki’s strength, is facing challenges there. India is in a sweet spot; not only is the market growing, but the company also happens to be a strong market leader, which is a rarity globally. So no surprise it is investing in manufacturing, R&D and products meant for India.”