Maruti Suzuki may make potential organizational changes

Wednesday hinted at potential organizational changes to reflect its increasingly dominant contribution to the Japanese parent’s global business, which now relies more heavily than ever on India’s biggest carmaker to build currently scalable models while developing vehicles for the future.

At the annual general meeting Wednesday, Maruti Suzuki Chairman R C Bhargava alluded to the relevant organizational changes to reflect the company’s 60%-plus share in Suzuki Motor’s global production.

“Which raises in my mind also the fact that with the growing volumes of production in India, the growing importance of India, the availability of capable manpower in India, do we not need now to look at how we are organizing in India to deal with (future growth)?” Bhargava said, alluding to the organizational pivot the company needs to sustain growth.

In the first in-person meeting after a gap of two years, Bhargava referred to the statement of SMC President Toshihiro Suzuki, who earlier this week said that of the 2.8 million units made worldwide by the company, the Indian operations accounted for about 60% of the volumes. Maruti has become a very important part of Suzuki Japan, Bhargava said.

Suzuki has also announced plans to set up a wholly owned research and development centre in India, indicating Maruti’s growing importance in its global operations.

From the challenge of achieving sales of two million units in the ongoing financial years, to three million units per annum in the next few years, Bhargava said Maruti Suzuki needs to prepare for its future. “What is the most efficient way of preparing for the future in all areas of production or sales and marketing or R&D? I think we can all now apply ourselves and think of the future and see what must ensure your company grows in the most efficient manner in the coming years”, said he, adding, “I hope when we come up with any changes in the future, we will have your backing and support.”

Bhargava stated that the company will outline a strategy for entering the compressed biomethane gas fuel as was suggested by Prime Minister Narendra Modi at the company’s 40th-year celebration at Gandhinagar on Sunday. He said is also looking into compressed biomethane gas fuel because it has a huge potential for the country as a source of energy.

Suzuki Sunday had inked a memorandum of understanding (MoU) with the National Dairy Development Board for setting up two biogas plants in Gujarat.

As regards electric vehicles, Bhargava said Maruti Suzuki will enter the EV segment in 2024-25, but it will be “in the upper-end of the market only,” he added.

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