Maruti's exports likely to dip by 10,000 units

India’S top car maker Maruti Suzuki’s exports are likely to come down by 10,000 units in the current financial year, according to IV Rao, executive managing director (engineering).

Last year, the company’s exports stood at 140,000 units, while they are expected to decline to 130,000 units this year due to the financial crisis in Europe, Rao told newspersons after launching the new Maruti Swift in the Hyderabad market on Thursday.

A majority of Maruti's exports comprise A-Star cars, accounting for almost 80 per cent, to European countries.

Rao said the company’s Manesar Plant-B will be commissioned by next month with a capacity to produce 250,000 units a year. Production at the Manesar plant was hit due to the employee strike in June, which resulted in a production loss of around 17,000 units. Things, however, are back to normal now, he added.

Maruti is also planning to hire engineers from both India and overseas by March 2012, to take the total research and development headcount to 1,300 from the present 1,060.

The new Swift has already received 50,000 bookings across the country. It is priced between Rs 4.42 lakh and Rs 5.66 lakh for the petrol versions and Rs 5.28 lakh and Rs 6.51 lakh (ex-showroom Hyderabad) for the diesel versions.

Rao said the company currently had the capacity to produce 13,000 Swifts a month, with 95 per cent localisation. It has lined up Rs 1,700 crore to set up a proving ground at Rohtak. which is expected to be completed by 2014. This will be its second testing site, with the first one being in Japan.

Swift entered the Indian car market in 2005 and its sales increased from 4,000 units to 12,000 units per month. At present, it enjoys a 24 per cent market share in the premium compact passenger car segment. It has sold over 600,000 units over the last six years.