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Maruti Eyes Latin America and Africa markets

Maruti Suzuki India Ltd is planning to dip into its cash reserves to set up factories in Latin American and African countries to both use them as a base for export to central America and Africa and beyond besides selling them locally. It is also planning to buy real estate for its network of dealers to expand its sales and marketing network across the country.  Details of how much Maruti chips in and how much Suzuki will eventually invest are being worked out between the two JV partners.

Maruti is getting bullish to strengthen its sales and marketing network to ward off fierce competition from competitors such as Ford and Hyundai eyeing a greater share of the domestic and export market.  Its plans to come atop its partner Suzuki’s announcement in early January that it would invest about Rs 3500 crore to set up a plant in Gujarat and sell the cars produced to Maruti. The only concern here is that Suzuki might roll out the cars from the Gujarat plant at a much higher cost than Maruti would have actually produced them.  

Maruti owns the land in Gujarat on which the Suzuki plant is to come up. Maruti would lease the land to its Japanese partner.

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