Car market leader Maruti Suzuki India Ltd (MSIL) is targeting more than 70 per cent increase in exports in 2009-10 to over 1.2 lakh cars from 70,000 units in 2008-09.
Maruti's exports would be largely driven by the A Star, which is also being bought by Japanese auto maker Nissan.
"A Star is our prime export product on the back of which we intend to grow our exports," said Shinzo Nakanishi, managing director, MSIL. "We are targeting 60,000 units of the car to Europe, 10,000 units for non European markets and 30,000 units for Nissan. We also hope to sell 40,000 units of the car in the domestic market, which would take the total production of A Star to 1.4 lakh units per annum."
The company said achieving a double-digit growth in sales this fiscal would be very difficult. It is targeting only a 3-5 per cent growth in line with Society of Indian Automobile Manufacturers' prescription.
"I am happy with the 9 per cent growth we achieved in April and the signs are good. We should also see some recovery in margins in the first quarter, but double-digit growth will be very difficult," he said.
The company has earmarked a capital expenditure of Rs 1,800 crore this year. The company's only new product this year would be the super hatch Ritz, to be launched in the middle of this month.
"We are expanding our K series line up in which we have 1 litre, 1.2 litre and 1.4 litre petrol engines," Nakanishi said. "The 1 litre is already being used in the A Star while the 1.2 litre will be first seen in Ritz.”
Maruti is also looking at the possibility of a diesel variant for the mid-sized sedan SX4.