The ruling carmaker of India, Maruti Suzuki is not only heading high in the country but is also registering good boom in Algeria, which is its largest car export market. The marketing head of Maruti Suzuki India, Mr. Mayank Pareek mentioned that their marketing team accessed the capability of Algeria’s auto market and after returning from the town they remarked, “No market, people don’t wear shoes. As per review, the plan of exporting the cars to auto markets like Algeria and Africa appeared gloomy as people confidently exclaimed that customers there purchase only big cars and rest doesn’t buy cars only.”
As per progressive numbers of shipments done to North African country, Maruti Suzuki exported 17,247 units of cars in 2011-12. This made the auto giant earn good place, beating neighboring countries Sri Lanka with 15,359 cars and Indonesia, which shipped 10,551 units.
Basically the entire plan of exporting cars to Algeria looked bit risky as its auto market is almost same like India where it has low levels of motorization and value-conscious buyers, but since its entry in the town, the automaker posted commendable yearly sales. Mr. Pareek said, “The good sales figure has opened the doors for us to target other African countries more aggressively.”
Also, Maruti Suzuki traded 23,000 cars to Africa from total 1,27,000 vehicles, almost more than doubled count from previous year. On the contrary during the same period, Hyundai Motors shipped 75,000 units of its 2,40,000 cars that are exported to Africa. This number has made the South Korean auto giant gain beneficial business, thus making its Indian unit an export hub for the i10 and i20 car models.
Even Europe accounted for 1,14,000 units, or 77% of Maruti’s exports in year 2009-10, making the Japanese automaker plan for more destinations for exports. But till this period, car exports doubled to 4,40,000 because of ‘scrappage incentives’ extended through European governments, but later the scheme got ceased in 2010 returning in loss. And therefore Mr. Pareek stated that the company is actively focusing on African and Asian markets for increasing sales count. This has helped the auto giant Maruti cushion the European loss.