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The country’s largest passenger vehicle maker, Maruti Suzuki India, Managing Director and CEO, Hisashi Takeuchi, says there is no 100 per cent guarantee of the auto industry’s growth in 2023, as there are still many uncertainties that may impact the growth. In an interview with businessline, he shared more. Excerpts:
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Sales of mini cars comprising Alto and S-Presso were lower at 9,765 units as compared to 16,320 units in the year-ago monthDo you think the uncertainties would continue in 2023, and what could be the impact to the industry?
To some extent, yes. We don’t think there will be a 100 per cent productivity rate. I think it is getting better, and it could get better next year, but not 100 per cent guaranteed. There is not much buffer stock in the pipeline now. But, if there is buffer stock again, then the same situation may continue.
What about Maruti’s own production cycle?
As I said, we are not guaranteed yet whether it would be 100 per cent or even more than 100 per cent because there is still a risk. There is no buffer stock for the components right now, but if something happens, then it will directly impact our production cycle. Everybody is trying to bring back the situation that it used to be (before Covid-19).
Do you think that the sale of SUVs would continue in 2023? What happens to your small cars that are declining in sales?
I don’t think small cars are coming down by volume. Volume is still there, but the growth of SUVs is so high that people think small cars are shrinking. Percentage-wise, it is shrinking but number-wise, we see there is still some growth. One of the reasons is also that some of our competitors have given up on small cars so our share is basically increasing.
The demand for strong hybrids is getting better so would you bring it down to smaller cars as well, below Grand Vitara?
We have to gradually bring this technology to smaller cars as well. But that is not the challenge. Hybrids need some amount of money, which customers need to pay extra at the end. So, gradually, we will do step by step.
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