Key Points
RC Bhargava, Chairman of Maruti Suzuki, explains that Maruti Suzuki has chosen Gujarat as the preferred state for expansion due to the established vendor base for car components and the potential for improved economies of scale and lower production costs..
Additionally, the company aims to triple exports by the end of the decade, with Gujarat being a favorable location due to its proximity to a port..
Bhargava also discusses the positive outlook for the Indian car market in 2024-2025.ETMarkets.com"If we produce more cars in Gujarat and export them, we will have an advantage in terms of transport distance and transport cost."..
RC Bhargava: Well let me clarify, the MOU at the moment says that Gujarat is our preferred state for expansion by another one million units a year Now we have preferred Gujarat because we have already established for the first site, a vendor base for all the components...
So on a macro level, the conditions for growth of the car market in 2024-2025 are very good to say the least because as the advance estimates show, this year should end at something like 7%..
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