An assembly plant in Thailand is likely to go on stream in the next six months, while the company is exploring a facility for the Latin American market. The idea is to bring the cost down in countries where the import tariffs are high. It is looking at partners who could share the investment and offer local expertise in such markets.
This is part of its efforts to arrest the slide in its share in an intensely cut-throat UV market.
Earlier, Volkswagen had shut its Chakan plant for a month from mid-October to mid-November.
This comes at a time when a number of automakers are considering bringing electric vehicles (EVs) they sell in global markets to India, while Indian automakers are getting ready with their own range of EVs. BMW’s British brand showcased in July its first EV, the Mini Cooper SE for the global market with a starting price of $29,900 (Rs 21.5 lakh, approx.).
In the run-up to the new Bharat Stage VI emission norms, that are due to kick in by April 2020, Tata Motos is looking to shed 120-140 models.
Huge discounts and extended warranty have attracted consumers looking for value buys.
At least half-a-dozen Chinese vehicle makers are expected to pump in about $5 billion into India.
Maruti’s parent Suzuki Motor corporation has deferred its $550-million third plant in Gujarat while Honda Motorcycle and Scooter India has pushed back plans to commence production from its third manufacturing line in Gujarat. Suzuki Motorcycle India has also put off by a few years its proposal to set up a second plant.
The wholesales domestic volume of Royal Enfield fell 3.6 per cent to 67,538 units in October.
"The automotive industry is a big part of manufacturing, it is such a large sector, there has to be a defined long term roadmap. It accounts for half of the manufacturing GDP and the government understands the importance of the sector. It is as much in the government’s interest as much as ours," said Maruti Suzuki chairman RC Bhargava.
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