Maruti Udyog Ltd on Wednesday declared that the current appreciation in the value of the rupee versus the US dollar will not have impact on its exports as it will save that much through the imports it does from its parent company in Japan.
Maruti director (marketing) K Saito told the media in Bangalore that the company's imports were much more in quantity than the number of cars it exported to European and Middle East markets.
"Though there is a marginal impact of the rising rupee on our exports, as a company, we also save in proportion on our imports, which are higher in quantity," Saito stated.
Saito did not disclose the quantum of imports and its value from Suzuki in Japan and other global suppliers.
Maruti, India's largest car maker, is also the largest exporter of passenger cars out of India. It has set a target of shipping 40,000 units during the current fiscal year (2003-04) against 32,000 cars it exported during the last fiscal (2002-03).
During the last two quarters, a weakening US dollar in global currency markets has led to the rupee appreciate by over 3-4 percent. From a high of Rs 47.95 at the beginning of the current year, the rupee strengthened to Rs 46.10 per dollar on June 15. It is now at 46.30 per dollar.
Saito also disclosed that the company had cumulatively exported 280,000 vehicles over the last decade. Its flagship models Zen and Alto constitute the largest number of cars being exported.
Despite 90-95 percent localisation in Maruti A and B models (800, Zen, and Alto), the company imports in large quantities components and accessories for its other models, viz., WagonR, Baleno, and Altura.
While the gearbox for the first two models are still imported, luxury models like Versa and Grand Vitara are shipped in semi knocked down and completely knocked down kits, involving a large outflow of foreign exchange in US dollars.
"There is pressure on our export realisation. But it is being balanced by saving as much on our imports. In fact, we are benefiting from a raising rupee," Saito claimed.
Maruti's quality systems and practices have been rated as a benchmark for the automotive industry by AV Belgium, global auditors for the international organisation for standardisation, according to the company's statement.
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