Director, Maruti Suzuki India Limited
Kenichi Ayukawa (MD & CEO of Maruti Suzuki India Ltd.) | Interview | Autocar India
Kenichi Ayukawa, MD and CEO, Maruti Suzuki India Ltd speaks to Hormazd Sorabjee on his company’s focus on SUVs, a new diesel engine and the challenge of rising costs.
SUBSCRIBE to Autocar India for hottest automotive news and the most comprehensive reviews ► http://bit.ly/AutocarInd
Autocar India is your one stop source for test drive reviews & comparison test of every new car released in India. We also offer a great mix of other automotive content including podcasts, motor show reports, travelogues and other special features.
Click this link for latest car reviews ►http://bit.ly/ACI-NewCa...
Transcript (14 segments)
I
Interviewer0:06
Maruti has just launched its future concept, a new design direction. With me is Kenichi Ayukawa, the managing director of Maruti Suzuki Limited. Thanks for talking to us. This new car also has a new design language, clearly SUV-oriented. Do you think SUVs will be a big focus area for Maruti now?
K
Kenichi Ayukawa0:24
I think so. The Indian market is quickly changing and demanding. We have to take care of those expectations. This concept shows a new approach. We are getting feedback from customers to implement practical production models. With this car, looking at segments like Alto, Wagon R, and Selerio, we are providing a small car segment with a new approach, higher ground clearance, SUV-like looks. We plan to bring such concepts to market.
I
Interviewer1:03
Do you think you moved away from the crossover segment? The S-Cross hasn't been a big success, and even the Ignis has lower numbers than desired. Do you think the Indian market is not ready for crossovers, and that's why you're focusing on traditional SUVs with an upright stance?
K
Kenichi Ayukawa1:17
Regarding crossovers, it is not easy for customers to understand. We need to approach them more closely and communicate the differences from other segments. We are trying to help customers recognize the good points of those segments. For SUVs, many people expect that segment, so providing smaller SUVs could be exciting. I do not think this will cannibalize existing products; we are developing a new area and expecting expansion.
I
Interviewer1:44
Frankly, is this your response to the Renault Kwid? And are you also moving to new technologies like electric vehicles? You said you'd have one on the road by 2020, but is cost still a major issue?
K
Kenichi Ayukawa1:46
No, we have accumulated knowledge through marketing research. For electric vehicles, we have many concerns that need to be fixed step by step. Everyone – government, industry, components – must collaborate to find a good solution for the market. We also see hybrids as important for improving efficiency and being environmentally friendly. We are preparing new models for hybrid technology.
I
Interviewer2:15
Diesel is a big concern. What is Maruti's strategy? You are moving away from Fiat after 2020 and developing your own diesel engine. Will it be limited to higher-end SUVs? Is India becoming an export hub for diesel engines? And with BS6 norms, are cost and technology challenges?
K
Kenichi Ayukawa2:31
We want to develop our own powertrain; we started this project over five years ago. We will still keep some diesel volume for export markets. BS6 is challenging in cost but not in technology – we can meet the regulations. The main challenge is managing costs. We are also working on a next-generation SUV for the premium segment, as the S-Cross hasn't met expectations. We are enhancing our communication with customers.
I
Interviewer4:44
How will new technology impact profitability? Can manufacturers pass on costs to customers, or will margins be adjusted? Beyond 2020, things will become very expensive.
K
Kenichi Ayukawa4:50
That's correct. We have to be concerned about customer acceptance and pricing. We make efforts every year to reduce costs, absorbing increases to some extent. We cannot pass on everything.
I
Interviewer9:18
So you can't pass on everything, but you'll compensate by reducing costs. And with the new Swift coming in 2018, how does 2018 look? You had a fantastic 2017.
K
Kenichi Ayukawa9:41
Comparing 2017 and 2018, January's market response is better. But I am concerned about global economic movements and stock prices. On the Indian side, the budget supports lower-income people, which could encourage demand. I believe the Indian market in 2018 will be better than 2017.
I
Interviewer10:26
On that note, thank you very much. I'm sure Maruti, which reached stellar heights in 2017, is set to break more records in 2018.
K
Kenichi Ayukawa10:35
Thank you.