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Maruti Suzuki chairman opens up on new models and future plans
Maruti Suzuki has dominated the market with small, low-cost vehicles. However, the company faces growing competition from other brands as buyers shift to bigger cars and regulators demand more safety features, thereby pushing up costs.
Maruti Suzuki chairman RC Bhargava has said the company is open to forming partnerships with auto parts makers to secure future supply chains and maintain its leadership position. Speaking to news agency Reuters Saturday, Bhargava said partnering with suppliers in early years contributed significantly to Maruti's success and helped establish a supply chain for combustion engine cars.
On being asked what role the company could play in setting up and securing its future supply chain thus, Bhargava said, "If required somewhere, we will get into a joint venture." He did, however, add that the company had yet to identify specific areas for such an alliance.
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"We have done it in the past. Maruti built a very strong supply chain because we partnered (with) vendors and have been working with them," he explained.
Bhargava said Maruti has about 20 joint ventures with its suppliers.
Maruti Suzuki has dominated the market with small, low-cost vehicles. However, the company faces growing competition from other brands as buyers shift to bigger cars and regulators demand more safety features, thereby pushing up costs, Reuters further reported.
Bhargava said Maruti is expanding its portfolio and adding more SUVs but it is behind rivals and that has led to market share falling to 43 per cent from over 50 per cent in 2020. He also said there are currently two markets in India - for small cars and another for 'fancy gadgets' and SUVs.
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"We'll cater to both markets. I want that Maruti continues this leadership position."
For the first quarter ended June 30, Maruti Suzuki reported a two-fold jump in consolidated net profit. It posted ₹1,036 crore against ₹475 crore this time last fiscal when sales dipped due to Covid. Net sales surged to ₹26,512 crore against ₹17,776 crore in April-June last year.
A few weeks ago Bhargava had also said the company will increase its production - to around 20 lakh units in the ongoing fiscal with improving availability of semiconductors.
