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

The Economic Times - - Companies: Pursuit Of Profit - Ke­tan.Thakkar@ times­group.com

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

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