Maruti very important part of Suzuki Japan; organisational changes in offing: RC Bhargava

Maruti Suzuki India Chairman RC Bhargava on Wednesday hinted at organisational changes going forward in the backdrop of the company’s increased contribution to parent Suzuki Motor Corporation’s overall global business.
In his address to the annual general meeting of the company, the first physical meeting after two years following disruptions by COVID-19 pandemic, he said in future Maruti Suzuki India’s contribution to Suzuki’s global production will go beyond 60 per cent, which was achieved last year.

Bhargava also said the company will chart out its strategy for entering the compressed biomethane gas fuel as suggested by Prime Minister Narendra Modi at the company’s 40th year celebration at Gandhinagar on Sunday.

“It’s clear that Maruti has become a very, very important part of Suzuki Japan,” he said referring to the statement by Suzuki Motor Corporation President Toshihiro Suzuki that in the last fiscal Suzuki group produced about 28 lakh automobiles all over the world, out of which more than 16 lakh units, or about 60 per cent, were produced in India.

Also, he said Suzuki’s announcement to set up a wholly-owned research and development company in India also comes at a time of Maruti’s growing importance in Suzuki’s operations.

“… 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 organising in India to deal with (future growth)?… ,” he said.

From a challenge to achieve two million units a year this fiscal to three million units possibly in a few years, the company needs to prepare for its future, he added.

“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,” Bhargava said.

He further said, “And I hope that when we come up with any changes in the future, we will have your backing and support.”

He, however, did not elaborate on what would be the changes.

On electric vehicles, Bhargava said when Maruti enters the EV segment in 2024-25, it will be in the upper-end of the market and not the lower-end.

On compressed biomethane gas fuel, Bhargava said Maruti Suzuki is “immediately looking into this area because it has enormous potential for the country” as a source of energy, it is not only renewable but extremely clean.

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