Business Case Studies,Corporate Governance & Business Ethics Case Study, Maruti Suzuki India's Foray into Africa

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Maruti Suzuki India's Foray into Africa



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Code : COS0109

Year :
2013

Industry : Automobile

Region : India, Africa and Europe

Teaching Note: Available

Structured Assignment : Not Available

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Introduction: Maruti Suzuki India Limited (Maruti), Indiaís largest car company by production and sales (Refer to Annexure Ė I for production and sales of leading car companies in India), was preparing to strengthen its export base in Africa. One of the first Indian automobile manufacturers to gain popularity in the overseas market, Maruti had been exporting cars to European markets since mid 1980s. However, with the changed dynamics between 2009 and 2012, the company had decided to target the African market to spread its geographic risk. By 2013, Africa had become Marutiís largest export destination, overtaking Europe. In fiscal 2012-13 , Marutiís exports to Africa registered a 50% growth compared to the previous fiscal and contributed to 30% of the companyís total exports. With many African countries trailing Indiaís economic development by over two decades, analysts commented that Marutiís strategies in India since its inception in 1981 would help it achieve similar success in Africa.

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