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Maruti to combat rupee's fall by sourcing more parts locally.

New Delhi, June 21 -- India's largest car manufacturer Maruti Suzuki will increase the number of locally sourced parts in its cars as costs of imported components shoots up as the rupee's value declines.

The depreciating rupee is having an adverse effect on the company as they are a net importer. We will continue to aggressively localise sourcing - it is not going to happen overnight, said Ajay Seth, CFO, Maruti Suziki India Ltd, in a report in The Livemint.

Maruti Suzuki's import costs were equivalent to about 20 per cent of its sales, and the company has currency hedges only till the end of June, Seth added.

Other auto manufacturers in India are also considering a second round of price hikes due to the rupee's depreciating value. Read the story here.

Published by HT Syndication with permission from Wheels Unplugged. For any query with respect to this article or any other content requirement, please contact Editor at htsyndication@hindustantimes.com

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Publication:Wheels Unplugged
Geographic Code:9INDI
Date:Jun 21, 2013
Words:171
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