Maruti's localisation content may not exceed 95 pc: Official

Localisation of auto components of country's largest car maker Maruti Suzuki might not be more than 95 per cent as certain highly sophisticated parts were required to be sourced from overseas suppliers, an official of the company said.
"Any model which the company has launched in India has 95 per cent localisation. Some components which are highly sophisticated need to be sourced from outside since there is no production base here", R S Kalsi, Executive Director(sales and marketing) of Maruti Suzuki, said.
It is not possible at the moment to establish a vendor base of these components owing to economies of scale, he told reporters here today at the launch of a Maruti dealership outlet.

The companies which are making these high-end components need a captive market which is not possible in India at the moment.
Asked about Maruti's answer to the 'Make in India' campaign, Kalsi said the company had started it a long time ago and established a strong supply base here by bringing technology from abroad.
"We have 11 models with 100 plus variants and enjoy a market share of 45 per cent, the highest among the car makers", he said.
To a query on the auto industry's outlook, he said that though the government had announced policies and there is always a phase-lag. "The direction is right, but the momentum has not picked up yet", he said.

The third and the fourth quarters would see a pick up in momentum, he said adding the company would launch more models in the coming quarters, he said.