Maruti will Benefit from Suzuki’s Tie-up with Toyota: RC Bhargava
Maruti chairman also says failure to keep up with changing tech will cost automakers dear
Mumbai: RC Bhargava, the chief of India’s top-selling carmaker Maruti Suzuki, has said the company will reap enormous benefits from its Japanese parent Suzuki Motor Corp’s partnership with Toyota Motor Corp, the blueprint of which is likely to be finalised soon. Toyota Motor and Suzuki Motor are moving towards a business partnership that will enable the two to explore cooperation in areas including environment and safety, IT and mutual supply of products and components.
In a note to shareholders in the company’s 2016-17 annual report, the Maruti Suzuki chairman stressed that new “technologies are going to be enormously important” in the years to come and failure to keep up with change could have “severe consequences” for any company.
“In India, we have to deal with issues of energy security, environmental protection and safety. The aspirations of the young, technologically savvy customers have to be met. Fortunately, our parent is fully aware of these needs,” Bhargava said.
Alluding to the government’s plan to promote use of electric vehicles, Bhargava said such policies would enhance the country’s energy security and, over time, lead to a cleaner environment.
Maruti Suzuki will not hold back on introducing EVs if people are ready to buy them, he said. “Meanwhile, efforts must continue to be made to enhance fuel efficiency. Hybrid technology is already resulting in significant improvements in fuel efficiency and is acceptable to customers,” Bhargava said. “We will continue to promote such vehicles as a step towards electric mobility.”
He said the lithium-ion battery pack plant being established by Suzuki in a joint venture with Toshiba and Denso will help reduce costs and promote hybrids and EVs.
Bhargava said the ‘Yaruki’ spirit or ‘Will to do it’ attitude would enable the company to reach its goal of selling 2 million cars by 2020, and then to achieve even higher sales.
With the parent company taking responsibility to increase production, Maruti Suzuki is focussing on expanding its sales, service and spare-part outlets. Kenichi Ayukawa, MD of Maruti Suzuki India says the business environment is becoming more and more uncertain and the organization has to be strengthened further to deal effectively with unanticipated disruptions.
ET ARCHIVES RC Bhargava made the remarks in co’s annual report for 2016-17