“A FAIRYTALE JOURNEY”
Mr R.C. Bhargava, Chairman of Maruti Suzuki, has been with India’s biggest automobile company since 1981. Initially deputed to Maruti while in the IAS, he quit the premier all India service and joined the company full time. At first, things started out with the celebrated M-800, a small passenger car that caught the imagination of the nation. Subsequently, fuelled by intense competition from world class car companies, Maruti managed to hold its own and today has a market cap that is larger than that of Suzuki Japan. He responds to wide-ranging questions from Business and Diplomatic Editor Yogesh Sood.
Your association with Maruti Suzuki goes back to the company’s inception in 1981, the year when you joined the organization after quitting the IAS. The journey since must have been an exceptional one. Your comments please…
When I left the IAS to join Maruti, I had absolutely no idea that the journey would bring the company and me to where we are today. That India would become the third largest car market in the world, or that Maruti would have a market cap bigger than that of Suzuki Japan could not have been imagined by anyone in the 1980s. Yes, the journey has certainly been exceptional and more like a fairy tale.
Even prior to joining Maruti Suzuki you’d been deputed there. What was the tipping point that made you decide to quit the IAS and join the organization full time?
After a deputation period of one year I had to decide whether to go back to the IAS or take retirement and become a Maruti employee. I decided to take the risk and quit the IAS.
The partnership with the Suzuki Motor Corporation has been long lasting and fruitful. You’d personally met with Suzuki’s owner Osamu Suzuki in 1982. According to you, what are the major factors behind this strong partnership?
The partnership has been built on strong trust and both companies working together with only the interests of the companies being the agenda. Suzuki recognized the potential of India and the long term benefits of growing Maruti. We worked with Suzuki to achieve this objective.
The company has a share of 42 percent of the automobiles segment. What is that single most important factor that keeps it ahead of the pack in such a competitive market?
The implementation of the concepts of Japanese management, particularly team work, frugal and ethical management and maximum attention to customer interests have helped us remain competitive.
Export sales of 31,033 units shot up by 56.97 percent in June 2024, as against the figure of 19,770 in June 2023. What according to you has led to a surge in export sales?
Maruti has been recognized as a source of high quality and competitively priced cars. The demand for such cars has been growing in many parts of the world. The Suzuki partnership with Toyota has also helped as Toyota is also sourcing small cars from us for their dealerships abroad.
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