Maruti Suzuki India (MSI) is strategizing to enhance flexibility in its production processes to align with the dynamic market demands, as stated by a senior company official. The carmaker aims to bolster the production of high-demand utility vehicles while scaling back on entry-level cars.
Adapting to Market Trends
MSI acknowledges the evolving demand patterns, particularly the growing preference for utility vehicles over small cars. Rahul Bharti, Executive Officer of Corporate Affairs at Maruti Suzuki India, highlighted the need for operational flexibility to cater to fluctuating market demands.
Addressing Margins and Production Challenges
Bharti identified a recent margin dip due to production inefficiencies, primarily with slower-moving car models. Enhancing flexibility in production, including semiconductor supplies and in-house manufacturing, is crucial to addressing these challenges and optimizing production capacity.
Cost Considerations and Growth Prospects
While acknowledging a slightly suboptimal production format, Bharti emphasized the long-term benefits of increased flexibility. The shift also considers the rising acquisition costs for entry-level cars due to regulatory changes, impacting customer affordability.
Market Revival and Export Plans
Despite a reduction in first-time buyers, Maruti Suzuki remains optimistic about market revival as income growth catches up and regulatory intensities stabilize. Additionally, MSI plans a significant increase in exports, targeting 7.5 to 8 lakh units annually by 2030-31, focusing on key global markets.
Future Expansion and Global Presence
MSI’s export strategy encompasses regions like Africa, Latin America, Southeast Asia, and the Middle East, aiming for extensive global coverage while remaining the largest car exporter from India, except for the US and China.
Ben Müller
