Maruti Suzuki India is studying about the feasibility of setting up a plant in Sri Lanka. It will be an assembly facility, which would make it convenient for the company to deliver cars in Sri Lanka. Recently Maruti has been exporting its products to the country. The company is having a problem in deciding the locations of the units that it will set up, while Colombo is one of the preferable locations that the company thinks will be economically viable.
Before the company decides the locations of the unit, the chairman of Maruti, R.C. Bhargava, has pointed out that certain problems related to labour and taxation need to be solved with the government of Sri Lanka. Maruti can only plan further about setting up the plants once these problems have been solved.
Setting up assembly plants in Sri Lanka will also help Maruti in strengthening its export markets of the Middle East and Africa. The company still continues to give equal importance to the rural market, which amounts to thirty percent of the sales of Maruti. In comparison to the previous year, Maruti has managed to reach a total of 60,000 villages with further aims of reaching a 100,000 by the first quarter of 2014. The Gujarat plant of the company is also in progress with land being acquired and the boundary being built. Maruti is aiming to launch a number of cars by next year with its focus on producing affordable cars with the features of luxury cars preferred by the common masses.