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ShareNEW DELHI: It seems that Japanese major Nissan's decision to cancel plans of building a manufacturing facility in India with Suzuki Motor Corp may affect the latter's overall passenger car export target from India.
Maruti had forecast an export of the four lakh vehicles by 2010; the target has whittled by about 40%, due to Nissan's no-show.
This is despite the fact that Nissan would still be sourcing 50,000 cars from Maruti exclusively for export purposes by 2008-09.
Says Maruti Udyog managing director Jagdish Khattar: "Yes, the export target of four lakh by 2010 will not be met. But we will do about 2 lakh unit exports by 2008-09 on our own. Not only have exports to non-European markets picked up, but we also plan to restart exports to Europe by 2008-09, when we will have a car specifically developed for this purpose."
Here's how the math works. Even though overall exports for Maruti have dwindled since June 2005 - when the company decided to suspend Alto exports to Europe - Khattar says exports to non-European countries have grown at a healthy pace.
From a mere 12,000 units three years back, the company is expecting to close this fiscal with about 40,000 unit exports to non-European markets and take this to over 50,000 next fiscal.
But by 2008-09, the company sees exporting the small car it is developing specially for Europe, taking its overall export target to two lakh units.
Khattar says 2010 will see the company exporting about 2.5 lakh cars - but this is still about 40% short of the original target. On his last visit to India, Suzuki Motor Corp chairman O Suzuki had announced plans to make India an export hub.
Having "ditched" Suzuki, however, Nissan is expected to forge a three-way partnership with Mahindra & Mahindra and Renault for manufacturing cars in India and a decision is expected sometime next month.
