Maruti’s market share and stock price has taken a beating in the recent past; blame competition for it. Shinzo Nakanishi, MD, Maruti Suzuki India, explains the comeback plan of the company to B&E.
B&E: The company has capacity expansion plans for 2012. How do you plan to manage till then, as the company is selling whatever it can produce?
SN: The company was working on ways to bring that to an earlier date and I am pushing my engineers very hard to ensure that Maruti is able to start the additional 250,000 units production as soon as possible. However, as of now, I will not be able tell you by when we will be able to start our new assembly line. But till then, we will have to manage with out existing capacity, and look at options by which we can maximise our production.
B&E: What about the developments on Suzuki Motor Corporation’s alliance with Volkswagen?
SN: The talks with Volkswagen are going on at a global level but there is still no clear picture as of now. However, there is very much a possibility of an OEM (original equipment manufacturing) supply contract with Volkswagen, which will be similar to what Maruti has with Nissan. But there is no possibility of sharing a common production platform with Volkswagen. Keeping in mind the fact that the German company’s production and product development costs are very high, it could make our business model unfit for India.
B&E: What prompted you to launch a five CNG models, even before a proper infrastructure was available for usage?
SN: We had two very radically different options in front of us regarding this – either we could wait till the point when the infrastructure got ready and then launch our products or being a market leader, we act first and allow competitors to follow us. We chose the second option!
SN: The company was working on ways to bring that to an earlier date and I am pushing my engineers very hard to ensure that Maruti is able to start the additional 250,000 units production as soon as possible. However, as of now, I will not be able tell you by when we will be able to start our new assembly line. But till then, we will have to manage with out existing capacity, and look at options by which we can maximise our production.
B&E: What about the developments on Suzuki Motor Corporation’s alliance with Volkswagen?
SN: The talks with Volkswagen are going on at a global level but there is still no clear picture as of now. However, there is very much a possibility of an OEM (original equipment manufacturing) supply contract with Volkswagen, which will be similar to what Maruti has with Nissan. But there is no possibility of sharing a common production platform with Volkswagen. Keeping in mind the fact that the German company’s production and product development costs are very high, it could make our business model unfit for India.
B&E: What prompted you to launch a five CNG models, even before a proper infrastructure was available for usage?
SN: We had two very radically different options in front of us regarding this – either we could wait till the point when the infrastructure got ready and then launch our products or being a market leader, we act first and allow competitors to follow us. We chose the second option!
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
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An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri's Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
