Maruti Suzuki mulls setting up plant in Sri Lanka

India’s largest car manufacturer, Maruti Suzuki is exploring the idea of setting up a new facility in Sri Lanka for the assembly of its vehicles.

Autocar Professional reports that the company is carrying out a feasibility study for the same and has begun investigating the economic viability of selected sites around Colombo. However, before the company can finalise the plan to set up the plant, it has to streamline certain issues with the Sri Lankan government relating to taxation and workers.

In addition to Sri Lanka, Maruti is setting up a sales network in the developing markets of Africa and the Middle East.

Back in India, Maruti Suzuki will continue to tap the growth in rural areas, which account for 30 percent of the total sales. The April – November 2014 period saw the company’s sales in rural areas grow by 18 percent with a contribution of 2,00,000 units to the total sales. Maruti has expanded its reach from 44,000 to 60,000 villages in one year. Till March 2014, the company hopes to cater to 1,00,000 villages.

Maruti’s upcoming R&D centre at Rohtak, Haryana is scheduled to be completed in 2016 and its test track will be operational from next year. However, the company’s Gujarat plant has been put on hold for the moment. While land for the facility has been acquired and the boundary wall built, basic infrastructure like water are being put into place. An LCV that was slated to be produced at the Gujarat plant will now be built at either the Gurgaon or Manesar plants.

Maruti is lining up a number of new models for the Indian market, which it plans to launch in the next calender year. The company has decided to focus on affordable cars and leave the premium and luxury segments to other manufacturers.