Maruti Suzuki, the largest car manufacturer in India has announced that it will be stopping exports to Europe for the fiscal 2014-15. The Japanese automaker will be restarting the export operations to the European auto market in September 2015 with the expected launch of the YRA premium hatchback.
The move by the carmakers comes as the production of the A-Star small car has been discontinued in India. The replacement of the A-Star, the Celerio small car model will be exported to the European market from Suzuki’s Thailand plant in order to meet the Euro 5 norms as opposed to the Euro 4 model being manufactured in India.
The decision to suspend exports to Europe will amount to a 10 percent decline in its total exports for the fiscal 2014-15. Moreover, the A-Star was the only car model being exported to Europe by Maruti Suzuki India.
The carmaker is expected to counter the decline in its exports and the resulting loss by developing other auto markets such as Africa, Southeast Asia and South America.
