September 2024 \ Business & Investment \ KEY BUSINESS INTERVIEW
“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.

By Yogesh Sood

For old time’s sake, please take us back to the M800, the ubiquitous little car from the 1980s that became a revolution. What led to its tremendous success and put the Maruti Suzuki story on course?

The decision to partner Suzuki and manufacture the M800 was taken on the basis of an assessment of the needs of our customers. A market survey had helped us in making an objective decision. The car gave people a modern, reliable, fuel efficient and reasonably priced vehicle.

Which car models drive the Maruti Suzuki business model today?

At present the SUV segment is growing the fastest. However, MSIL is also selling cars in the small car segment and bigger sedans.

In your nearly four and half decades with Maruti Suzuki you have witnessed a transformation taking place in the automobile industry. It is one of the top indicators of which way any economy is going. Where do you see this industry 10 years from now?

The automobile sector is going to keep growing and contribute to economic growth and employment creation. Vehicles will continue to meet the changing regulations for safety and carbon neutrality.

In July 2024, as against July 2023, there was a fall in production in the mini, compact, mid-size and LCV sub-segments. There is, though, a sharp rise in production of utility vehicles. Is this a sign of things to come?

Market demand never remains unchanged and car manufacturers need to design and produce vehicles to meet the changing needs of the customers. I do believe that the demand for small low-cost cars will revive fairly soon.

As a nonagenarian chairing one of India’s most talked-about companies, how do you maintain a work-life balance?

I am a non-executive Chairman and do not find it difficult to maintain a balance between my obligations to MSIL and my family and personal life.

 




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