| a new garb
New Delhi, Aug. 31: Maruti Udyog Ltd, the country’s largest car maker, plans to set up its business of retailing refurbished pre-owned or old cars in neighbouring countries.
The company, which expects a 55 per cent jump in exports in the current financial year, will start operation of ‘Maruti True Value’ in 2003-04.
The ‘True Value’ outlets will enable a buyer to exchange his old model of any brand for new or old Maruti models. The car maker, a unit of Japan's Suzuki Motor Corp, will offer a warranty for one year or 15,000 km along with three free services.
Maruti, which listed its shares in the second week of July in a blockbuster debut as part of a privatisation drive, also plans to start exports to West Asia and Far East Asian countries.
The company announced on Saturday that its exports have crossed 3 lakh units. During the current year, Maruti has commenced exports to the West Asian region, including Saudi Arabia, Kuwait and UAE.
“The Alto has been a tremendous success in Europe with more than 19,000 units firm order till August 2003 in hand,” said Maruti's officials, adding that Algeria and Bangladesh had been good potential markets.
The company in which Japan’s Suzuki owns 54.2 per cent stake had its exports nearly trebled to 32,240 units in 2002-03 due to the success of Alto in Europe.
During the first quarter (April-June) of 2003-04 Maruti’s vehicle sales leapt 47 per cent to 1,04,017 units, while net profits climbed up nearly 11 times to Rs 123 crore driven by the cheap financing schemes and aggressive marketing of it's 800 cc car.
In 2002-03, cumulative new car sales rose 6.4 per cent, after a flat previous year, driven by price cuts and discount schemes.