India will be the focus for Suzuki Motor Corporation’s growth plans in automobiles till the end of the next decade going by what its Representative Director and President, Toshihiro Suzuki, says in the 2018 annual report.

“In and around 2030, there is a possibility that India would grow up to be a market of 10 million units. If we are to maintain the current market share of 50 per cent, Suzuki would become five million units,” he says in the opening pages of the annual report. At present, Maruti-Suzuki’s share is closer to 55 per cent with Hyundai Motor a distant second.

Toshihiro Suzuki then gives a spin to the narrative saying that in such a scenario, if Suzuki’s other markets (apart from India) account for two million units in 2030, its overall tally would be seven million units. “This is rather a theoretical figure than a target, but Suzuki will challenge toward the future growth,” says its President.

‘Great transformation’

From his point of view, the automobile industry is undergoing a period of “great transformation” where it becomes necessary for companies like Suzuki to “open up the future in long-term outlook by imaging the targeted aspect of 10 years and 15 years ahead”. The idea, according to him, is to trace back to the present “to think about what should be done from now”.

India is already the company’s largest region globally and will become even more significant especially after the recent decision to part ways with its Chinese ally, Changan Automobile. “Approximately 25 years ago, we launched the Alto in China, and since then we have made efforts in cultivating the Chinese market. However, due partly to shifting of Chinese market to larger vehicles, we have decided to transfer all equity to Changan Automobile,” said Osamu Suzuki, Chairman, in a statement last week.

The importance of India has also magnified thanks to Japan’s ageing population that has slowed down demand for cars. The ASEAN region still has strong markets such as Indonesia and Thailand but even here growth has reached a level of maturity unlike India where two-thirds of the population is under 30 and constantly aspiring for smart and competitively priced cars.

“Also, we believe that fulfilling India would lead to fulfilling other markets through globally expanding the models developed for India,” elaborates Toshihiro Suzuki. This, in any case, is in sync with the company’s plans to increase export shipments from India as well as develop models here for other emerging markets in Africa and Latin America.

Toshihiro Suzuki believes the management “and every single one of our employees need to change the way of thinking and effectively distribute management resources of people, goods and capital”. Towards this endeavour, he has reiterated that the company will continue to focus on producing high-quality products which customers can use “safely and securely”.

Target 2030

Additionally, with 2030 as the goalpost, the endeavour will be to introduce unique products “with value exceeding customer expectations” even while sales continue to expand. “Along with making of small cars and development of high-efficiency powertrain which Suzuki excels in, we will proactively make efforts in expansion and strengthening of hybrids and new development of electric vehicles,” says the company President.

All this also puts in context the alliance between Suzuki and Toyota which will see joint production of hybrids and EVs. For now, the two Japanese automakers have agreed to swap products as part of this deal which will see Suzuki’s Vitara Brezza and Baleno head out to Toyota’s India stable. In return, the (re-engineered) Corolla will be retailed in Maruti Suzuki showrooms.

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