Maruti Suzuki India Ltd, India's largest car maker by sales is expected to export more than 100,000 vehicles in the fiscal year ending March 31, 2010.
Chairman R. C. Bhargava said in the company's annual report for 2008-09 released on Tuesday.
The small cars market will be the major export market segment,thus major elements of future growth strategy of the company.
The local unit of Suzuki Motor Corp. exported 70,023 vehicles in the previous fiscal year. Exports made up slightly less than a tenth of the company's total sales, which grew 1.5% to 722,144 units in 2008-09.
In the period of April-July 2009, the company's exports market more than doubled from its preceeding year to 39,860 units, resulting in a a jump of 21 %.
The company exports cars to more than 100 countries, with Europe being its key market.
Maruti's major export model is the A-Star small car, which contributes more than two-thirds to the company's overseas sales.
Besides exporting the model on its own, the car is also bought by Suzuki Motor's Japanese peer Nissan Motor Co. under a contract manufacturing agreement. Nissan sells the small car in Europe as Pixo.
According to Mr. Bhargava, Maruti Suzuki is financially sound and practically debt free and have a healthy cash balance.
Maruti Suzuki Chief Executive and Managing Director Shinzo Nakanishi said in the annual report that falling raw material costs and better foreign exchange management will help the company improve its profit margin in the short term.
In anticipation of rising fuel prices of gasoline and diesel, the company is working toward developing more vehicles that use cheaper alternative fuels such as compressed natural gas.
The company is working with the government and other companies on projects to develop hybrid vehicles.
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