Maruti Suzuki may be struggling to boost sales in the home market but when it comes to exports, the company is doing far better.
Says exports are on fast track despite slow domestic sales
NEW DELHI: Maruti Suzuki may be struggling to boost sales in the home market but when it comes to exports, the company is doing far better. Not only has it opened up the non-EU front by going to countries such as Morocco, Algeria, UAE, Saudi Arabia and Chile, but it has also ratcheted up operations in markets where sales were slack.
Maruti’s managing director Jagdish Khattar said while the overall export target for this year has not been revised, incremental exports would certainly help.
“Two years ago, I began taking interest in non-EU markets and visited many of them to figure out how to increase exports. I realised dealers in many of these markets were not following Maruti’s model of selling and they were invited to India to study our model. Today, the M 800, Alto and Zen Estilo are among the cars we export to non-EU countries.”
Khattar said Zen Estilo has, in fact, become the largest-selling car in Indonesia. Overall, the company is eyeing an export of 55,000 units in the current fiscal, up nearly 45% over last fiscal at 38,000 units. From 18,000 units two years ago, its current export basket is entirely non-European.
But the success on exports comes even as things continue to look grim on the home front.
While the company continues to prop sales with all-round marketing initiatives, this situation cannot continue for long. “Everyone (other manufacturers) is looking towards the festival season for things to improve in the market. I am not sure how long I can continue to support sales with such as huge marketing expenditure.”
Maruti is among the very few automobile companies that has shown consistent sales growth this fiscal despite increased credit rates and a general slowdown in the market. This was possible through marketing initiatives which have seen employees of the company, dealers and employees of its dealership and even Maruti’s shop floor workers pitching in with sales recommendations.
But all of this comes for a price - Maruti has offered Rs 1,000 incentive for each car its employees and associates have sold. Then, the company is also offering handsome discounts to further improve sales.
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