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Maruti may source from global mkts

September 02, 2004 20:17 IST

India's biggest carmaker Maruti Udyog Ltd is toying with the idea of sourcing components from the global market as part of its strategy to become more cost competitive.

"In Maruti, for example, we are looking to go in for worldwide procurement," MUL Managing Director Jagdish Khattar said in New Delhi.

The Maruti Saga: Complete Coverage

The sourcing of auto parts from the international market means sourcing components from the best and the cheapest supplier globally, he told an annual convention of the Automotive Component Manufacturers Association of India.

Giving an example of 'opportunity share' mindset, he said, "There were four million two-wheelers sold three years ago. If we can upgrade 10 per cent of them to cars, there is an opportunity for 400,000 entry-level car sales this year."

In sync with the vision of tapping the two-wheeler owners who would like to graduate to cars, MUL had started targeting motorcycle owners in a focused manner through 'Bike to Car Scheme', he said.

MUL has started a pilot project where a motorcycle can be sold to a MUL dealer with the proceeds of it being considered as seed money and the motorcycle owner would get 'Maruti800' by paying monthly instalments.

The project has been initiated in two cities.

"So far the response has been good and we are evaluating the enthusiasm shown by customers. We will analyse all the aspects of the scheme," Khattar said.

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