Maruti Suzuki India Ltd.

Maruti Suzuki India is planning to begin exporting selected models as completely knocked down (CKD) kits, initiating with its new multi-passenger vehicle Ertiga, which it plans to launch at the Auto Expo in Delhi next month. Ertiga, a seven-seater MPV, which will be available in 1.4 litre petrol and 1.3 litre multijet diesel engine options, will be initially shipped to Indonesia and later to Thailand.

The CKD kits will include critical parts, such as engine and transmission, fuel tank, wheel rim, brakes, suspension and steering that will be sealed and dispatched from the company's Manesar plant.

The company, which produces more vehicles than its Japanese parent Suzuki Motor Corp (SMC), is eyeing larger volumes in the lucrative export market. In Indonesia, where the import duty on fully imported cars is 26%, cars brought under the CKD route invite a much lower 10% tax.

In Indonesia, where Suzuki enjoys a 9% share, Ertiga will compete with other seven-seater models such as Toyota Avanaza and Daihatsu Xenia. Cars dispatched as components and assembled in overseas markets invite lower taxes, making them more competitive.