Maruti plans to expand in overseas market

Maruti is the largest car maker of the country. It has more than 50 percent market share in the Indian market. It is also in the business of export of its car. The Indian market is of more than 1 million cars per year. This market is growing at a good pace. But still the car manufacturers are expanding themselves abroad. In India the car market is dominated by small car manufacturers. Now the trend in the world is also changing towards small car. It is because of increasing price of crude oil. So the consumers are looking for fuel efficient cars.

Europe constituent major part of the export of Maruti. This year the export to Europe has declined. But export to other countries has seen tremendous growth. This is because of the diversification strategy of the company. The company don’t want to concentrate in one country alone. This will diversify its business and the company can become global brand.Hyundai is also one of the major exporters of cars from India. Its major market is Europe. Now with this move the revenue will come from various countries. In order to compete with Hyundai this is a good strategy to focus countries beside Europe.The move of diversifying its export is good for the economy as well. The two wheelers major like Hero Honda and Bajaj are also focusing on exports. So the export of auto sector from India is going to increase.