Report - Maruti to halt exports to Europe as Thai plant takes over for European A-Segment demand

Beginning April-June this year, Maruti will stop exporting cars to Europe reports Financial Express. The last European consignment of about 15,000 units of the A-Star (sold in Europe as the Suzuki Alto) will leave India in the next quarter, following which Maruti will halt European exports at least until September 2015.

The current A-Star which is sold in Europe as the Alto has received a successor in the Celerio. The Celerio was world debuted at the 2014 Auto Expo, while the European premiere took place at the 2014 Geneva Motor Show earlier this month. When the Celerio goes on sale in Europe later this year, the hatchback will be shipped from Suzuki’s Thailand plant.

At Suzuki’s Thailand plant, the Celerio will be made to comply with Euro 5 emission norms and will conform with current European legislations. The Celerio made in India however, is made in Euro 4 spec (BS4) and as a result, cannot be sold in Europe.

While both versions share the same 1.0-liter three-cylinder petrol engine, there are certain modifications made for Europe. The European Celerio’s engine is named ‘K10C’ and features a stop-start system, while the Indian Celerio’s engine is named ‘K10B’ and is devoid of this feature.

While this move will lead to a dip of 10 percent in Maruti’s exports, sources say the company may increase exports to markets in Africa, Southeast Asia and South America. Recently at the Algiers Motor Show, Suzuki announced the launch of the Ertiga MPV and it’s likely for Maruti to export the Ertiga to this African destination.

[Source - Financial Express]