BS reported that continuing slide in demand for new cars in Europe has made Maruti Suzuki edgy about business, but the automobile major is still looking forward to bagging export order for hatchbacks from Nissan this year.

Nissan Motor Company sources the five seater five door hatchback Maruti Suzuki A star under a contract to sell in Europe after renaming it as Pixo.

Trouble started last year as recessionary trends in key countries led to a 25% decline in the sales of the compact car in European markets. Maruti now fears it will face a substantial cut in Nissan’s sourcing order which is valid till 2013.

During the best times, Mr Shinzo Nakanishi managing director of Maruti Suzuki said that “The deal was for 50,000 units of the Pixo. Now it is about 15,000. I am not sure whether this will keep them interested. I hope they continue with their interest.”

During the last financial year, the sales of the Nissan Pixo a car which is positioned slightly higher than the Suzuki A-star (renamed as Alto in Europe) dropped to 27,629 units from 36,930 units sold in the previous financial year in Europe.

According to the European Automobile Manufacturers Association, the EU witnessed a 2% slide in demand for new cars 7.27 million units in the six months period ended June 2011 from 7.12 million units sold in the same months previous year.

(Sourced from BS)