The country's largest car-maker, Maruti Suzuki India (MSI), today said its exports are expected to achieve the one-lakh units mark in the current financial year (2009-10).
"Maruti cars are exported to over 100 countries and the volume of exports is likely to cross one lakh units in 2009-10," MSI Chairman R C Bhargava said in its annual report for 2008-09.
Exports of small cars would be one of the major elements in the company's future growth strategy, he added.
MSI exported 70,023 units in the 2008-09 fiscal.
It is expecting a rise in exports on the back of growing demand for its small car A-Star, which was launched in November last year. The company has exported over 50,000 units of the small car to various European countries.
"From a company which was started to produce one lakh cars a year, we have reached a production rate of 10 lakh cars a year," Bhargava said, adding the company has a market share of over 55 per cent in the cars and vans segment.
He said that the company did not have any idle capacity and did not lay off any of its employees during the last fiscal, when the domestic auto market was going through a demand slump.
Even though in 2008-09, "we had a small growth rate in sales volumes," the company made reasonable profits despite the impact of higher commodity prices and weaker rupee in FY-09, Bhargava said.
Talking about MSI's financial position, he said, "We are practically debt-free and have a healthy cash balance. We have financed all growth from internal resources."
MSI Managing Director S Nakanishi said, "The company's sales in the domestic passenger vehicle market grew by 11.6 per cent during the first five months of 2009, while the industry increased by 1.6 per cent."
Source : Business Standard