Does Maruti need a Sanjeevani revival?

livemint.com:

Maruti Suzuki India Ltd entered the passenger car market four decades ago with the Maruti 800, a milestone in aspirational vehicles. Born out of a joint venture between Suzuki Motor Corp. and the Indian government, this collaboration has endured and evolved.

Maruti’s share of the passenger car segment has dropped from the more than 90% it commanded initially, but it still has a claim to about 43% of the market. Even so, India’s changing demographic, with a noticeable shift towards a younger audience’s design and product preferences, poses a challenge. In fiscal year 2022-2023, Suzuki Motor identified India as its fastest-growing market.

The Japanese company had projected a year-on-year growth of 5-7% in the Indian market, anticipating increased sales for its Indian operations. Maruti Suzuki’s share within Suzuki’s global sales rose from 50.4% in FY22 to 54.8% in the following year. Additionally, its contribution to Suzuki’s total global automobile production increased to about 60%, up from 58.8% in the previous year.

Suzuki is motivated to nurture its Indian operations, acknowledging its critical role in shaping its global brand reputation. For Maruti, as an Indian listed entity, the imperative is to reclaim market share strategically through launches in the rapidly expanding sports utility vehicle and electric car segments. The lingering question is whether it can successfully execute this ambitious plan.

This sheds light on why Suzuki is comfortable retaining key personnel, both executive and non-executive, without implementing any change in management. An illustrative example is the chairman of its Indian board, R.C. Bhargava, who has held the position since 2007 and has been a board member since 2003.