The ever-changing market dynamics seem to have convinced Japanese auto major Suzuki
to do a major strategic rethink for its India plans.
in addition to an organisational overhaul, has also decided to infuse a humungous
amount of cash, an additional Rs7,200 crore to be exact, to "upgrade"
Maruti Suzuki''s operations in the country.
cash inflow is in addition to the Rs9,000 crore earmarked earlier for the expansion
of Maruti''s manufacturing facilities in India, which is key to helping the domestic
car market leader get to its one million unit production ballpark by 2010.
new infusion would reportedly be used to improve Maruti''s marketing and research
facilities in India.
to Suzuki Motor Corporation (SMC) chairman Osamu Suzuki, Maruti can ill-afford
to continue to "work at the pace it has been working at till now", chiefly
on account of increasing market shares of other global automakers'' in the Indian
market. He says that the company needs to build spare parts depots, vehicle stockyards
and display showrooms for the million units Maruti intends to produce in India
starting 2010, and even the R&D and engineering functions need up gradation,
including the installation of testing and product development facilities along
the lines of what the parent company has in place on its home turf in Japan.
to reports, Maruti''s new R&D centre would most probably come up in Haryana,
close to the company''s flagship production facility, which also suggests that
negotiations for a port facility to propel the company''s export fortunes are at
an advanced stage.
to Suzuki, all these steps, and the consequential cash infusion, are "aimed
at maintaining Maruti''s lead here".
related news about the company, it was reported that the current managing director
of Maruti Suzuki, Jagdish Khattar, who is due for retirement in December 2007
after eight years at the helm of the company, will for the first time be replaced
by a Japanese successor.
to reports, S Nakanishi will succeed Khattar, who is largely credited with driving
Maruti''s to its present 50 per cent plus share of the domestic car market.
Nakanishi is one of the longest-serving Suzuki nominees on the Maruti board. Additionally,
erstwhile managing director and current director on the board of Maruti Suzuki,
R C Bhargava has returned as chairman.