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Kenichi Ayukawa
Director, Maruti Suzuki India Limited

In Conversation With Kenichi Ayukawa, MD and CEO Maruti Suzuki India

🎥 May 12, 2017 📺 NDTV Profit Shows ⏱ 13m 👁 108 views
In this episode of MotorHeads, we speak to Kenichi Ayukawa, Managing Director and CEO of Maruti Suzuki India Limited and get all the details on the new Dzire and also discuss Maruti's future plans in India with new products in the pipeline. Watch full video: http://www.carandbike.com/videos/in-c... NDTV is one of the leaders in the production and broadcasting of un-biased and comprehensive news and entertainment programmes in India and abroad. NDTV delivers reliable information across all platforms: TV, Internet and Mobile. Subscribe for more videos: https://www.youtube.com/user/ndtv?sub......
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Transcript (23 segments)
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Interviewer0:04
and you are watching TV
he is the NDTV automotive man of the year for 2017 and today we are going to talk to him about a brand new product that's come to the market I'm speaking about mr. Kenichi ru cava the managing director of Maruti Suzuki India and the new car is a blockbuster it's the new generation of the desire sedan which drops its Swift name and steps in with a third generation observe that is bigger bolder and has big plans as well thank you a color sample you very much and congratulations on the thank you very very precious as I said desire the name itself is so big it's such a big module for you the first two generations have already sold 1.3 eight million cars which is a staggering number so obviously from the new generation you have big expectations of course fortunately as we've said that the desire becomes growing up very well past 10 years something like that used to be other way touch to the streets Tony but this time we dropped the statement because desire becomes independent moving it becomes such a big model in many ways I think you mentioned it on stage today that it took you by surprise to multi and you know all the people at Maruti by surprise the fact that it's done well is not you know something that now surprises us because it's a segment that's also done well but do you think the fact that it's also been able to hold on to its position is also a credit
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Kenichi Ayukawa0:37
I think it is we have at the Dutch segment the possibility I feel very much that's why as far away product provided a good product to the term market people a customer will be this concept that is our expectation
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Interviewer0:37
how and when did you take the decision that for the new platform and the new generation you will do the sedan before the hatch I take it you know that is that the statistical you know serratus car discussion as you know that the music the double row into the global market but you know desired mainly focusing indian market that's why we have to try to develop the area to this movie the fact that this is not just a hatch with a boot the fact that you have re-engineered the car the a-pillar is different does this help that you know sort of drive it home the fact that you brought the sedan first to establish that it is all new that you've dropped the Swift's name so that is that part of the strategy
K
Kenichi Ayukawa0:37
yes I think that we have to develop that this kind at the sediment or indium margin that is a very key you know Sarah technical words that's why we try to develop independent types of model for sedan for this market
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Interviewer0:37
what about volumes because I think another thing that was announced today was before the launch you already have 33,000 booking not surprising but but the fact that now after the launch those numbers are just going to go up of course you still have high numbers on the Baleno you have high numbers on the vitara brezza TS so how much of the strategy also had to do with volume allocation
K
Kenichi Ayukawa0:37
I think it that the boring more efficient sell for the we have that have some solution as as I we mentioned already that Gujarat new front is started and then they will cover the backlog about production are we expecting the that volume is coming up that in the near future and also we are starting at the second branch of construction know kind thing we have a very weak absorb as well the weak developing with product supply the good product people respond that we can start satisfy the more into market
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Interviewer0:37
in the past you converse and we've seen a lot of flexibility when it comes to your production between the manager and the godown plants you know we've seen certain products being shifted or being done at both planet do you have the same set of flexibility with SMG as well
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Kenichi Ayukawa0:37
in in case of SME G the location is too far more than a thousand keywords are different that could be the little bit different between the Manesar in Google we have to carefully to you know Brown and that which model we producing which factory and then to try to decide of course few jives we have to change some program itself but depend on that condition that situation we try to make a flexible solution but specific to let's say one particular platform like now this is the platform so is the the Baleno and of course the new strict minute arrives will be the same platform these are all high volume product yeah does that help the fact that at least you have the it is one platform you could have that flexibility plan but it's okay because of the size wise that the platform is a different a segment car Kate segment B segment Carol fortunately that is desired that Swift and the balance will be a tie using a same platform but it is a very a AG that changing at model for any frustrated if Manesar we can producing a this platform also with SMG also producing in this platform it is very in in a sense of convenience
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Interviewer0:37
you announced today during the presentation that the investment for the desire model has been thousand crore rupee how much of that investment will be shared with the Swift panetta right or is this just for those desire this knife things some father that some some common pot there that's right there will be some possibly including that because I'm sorry they did there that we have to check that's okay but what I'm trying to say is that is obviously some some commonality between the data's so that is help in terms of getting the Swift out quicker you think
K
Kenichi Ayukawa0:37
I think so because once the Swift arrives it's again going to be another huge number expecting that we are expecting if you so from both the production as well as the supply a point of view how many how much advantage do you get that you're keeping so many months between the desire and the news 15 is it a big big advantage you think I think that the because of the only ones motive started and then after that the the same time that the new model coming they are already ready but the production cost boring cost reindeer that's why we have to encourage that that was prior we are planning like this please make investment for your factory Haryana also with Roger also those kind thing that we are requesting
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Interviewer0:37
I want to ask you this because in the pre-launch we had the unveiling of the car and had the chance to speak with both Calculon and romance on and I was asking them the same question that two big decisions with the third generation that we've seen first is what we spoke about that the structure of the car is not exactly like the hatchback and the second is dropping that that names the swift name one is a big marketing decision and one is a big production decision how quickly they convince you to take this
K
Kenichi Ayukawa0:37
this is going to the past three or four years we we considered that as a new challenge next also niemöller branding and also this kind of challenge as far that we have to make a good challenges even though that we try to keep that the lead of the industry we have to challenge that we have done my ID you know certainty and then you question our people so keeping that so it wasn't a difficult decision I don't think okay
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Interviewer0:37
and did it start fairly early in the process or was this what I mean to say is that obviously the new Swift was also being designed in Japan you always knew you had to do a new desire at what point did you decide that okay this car needs to be very different
K
Kenichi Ayukawa0:37
no already the desire becomes solid generation and for so boring wise that becomes bigger and bigger yeah we have to consider that you know to the differentiation that the most mobile that is that the good timing I think
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Interviewer0:37
now one thing about this segment everybody says is it's uniquely Indian so sub for meter and also the proportion etcetera is not always very attractive with the new car you've been able to take some of that away the disadvantage and you've given the car great looks it's got very sort of a premium styling and the proportion is very nice given that it now becomes a more attractive product visually and in term uses features do you think it has potential in other markets now more than in the past
K
Kenichi Ayukawa0:37
I believe so we have at the low tempo sweetie we try to approach to other market also but is that going to be a function of Suzuki Motor Corporation or Maruti Suzuki we try to do Maruti Suzuki try to do and and I know that it's too early to ask you here in terms of which markets or how many because we have the looking for them because yeah first we have to expanding it you know it's motor the servicing here yeah oh the motorcade all the information spreading at the you know to other country if customers have interesting oh this is very interesting turn if they're expecting that through our network if possible with we try to deliver but regression isn't matching if vision is much inside that's where I was going with the set sail here is never be a problem so far we I encourage that the customer feeling oh this is a great car that is a very very important from immediately that the global people that see it Oh India make of this kind of unique car that is a good for investment for work for advertisement for us I thought
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Interviewer0:37
and where I was going with this is that given the fact that this is such a popular model forget about the short term even a year or two years after this launch it's not as if you know you will not have a huge demand locally so when I talk about exports potentially how do you work that strategy into it because volume will just be so big even from a domestic demand perspective so how do you work in an export strategy when your domestic demand is so huge
K
Kenichi Ayukawa0:37
so point is that only for the volume consequence right that means that the as far as we established a new factory in a jar we will be able to observe that right so as that language is simply the Tsukiji committee to make it the investment to the future we are planning at the trees to see saffron which means a 7.5 lack capacity total it becomes Aria if so that we have to consider them next is additional Factory the graveyard or somewhere I don't know everybody that kind step with the dog sorry that did a good cause vaguely absolutely
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Interviewer0:37
and it makes the consolidation of your position even more strong but now that in February we've had the trial production beginning and now the actual production has begun in Gujarat how much of that pressure has already eased for you because the Baleno is a big model as well so yeah already are you seeing a huge advantage
K
Kenichi Ayukawa0:37
I think that the real received at the last month about 10000 10000 vehicle from Gujarat that we get the capacity becomes almost double poison used to be we only deliver that 3000 something rather like that we are crossing at 70,000 across 80,000 per month can't deliver to that the market we will be absorbing we can quickly be able to absorb that about growth
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Interviewer0:37
the point I know that it was made by some journalists today about the government's move towards electric vehicles instead of hybrid vehicles and I get why they were asking that question it was obviously doing hybrid as the first step is easier than doing full electric but as all these decisions get taken and I know you said you're waiting for clarity from the government how quickly can you move on these decisions do you think
K
Kenichi Ayukawa0:37
in case what the debris occurred about we need of the five or six years yeah in that case of the if the direction change we have to preparing something that but before then we have to define that you know direction is that realistic that the next five years that veneers or the 15 you know the kind thing we have to discuss that the concern the people cause including government people and then do we have to set that in the future investment that is a very important suddenly coming up some idea that they know be easy to switch at the direction