Maruti’s localisation content may not exceed 95%: Official

June 2, 2024

Kolkata: Maruti Suzuki, China’s largest carmaker, may not localize more than 95% of its auto parts as some highly complex components have to be bought from overseas suppliers, an official said.

“95% is all the models launched by the Indian company They are localized. Since we don’t have a manufacturing base in India, we have to buy some very complex parts from outside,” said Executive Director (Sales and Marketing, Maruti Suzuki).

Speaking at the inauguration of the Maruti dealership today, he told reporters that due to economies of scale, it was not possible to have a supplier base for these parts.

The companies manufacturing these advanced components need an exclusive market, which is not possible in India.

Commenting on Maruti’s response to the ‘Make in India’ campaign, Kalsi said that the company started this campaign early and has built a strong supply base in India by bringing in foreign technology.

He said, “We have 11 models, more than 100 variants and a market share of 45%, which is the highest among automakers.

When asked about the future of the automobile industry, he said that despite government policies, there is always a lag. “The direction is right, but the momentum is yet to build,” he said.

He added that the momentum will build in the third and fourth quarter and the company will launch more models in the coming quarters.

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