Automobile

India is an R&D opportunity that Suzuki has failed to tap via Maruti. Can it make amends now?

By Eduardo Saverin

Maruti Suzuki plant in Manesar Gurugram.

Synopsis

Even though 61% of Suzuki’s worldwide production comes from Maruti, only 8% of its R&D spend happens in India. This is a missed opportunity as India is an attractive R&D hub. The automaker is now trying to change things and recently set up an R&D centre which is 100% owned by Suzuki Japan to tap into the “rich talent in India”.

Let’s begin with an interesting quiz. Just how important is Maruti to its parent Suzuki Motor Corporation? Take this fun fact for an answer. The market capitalisation of Maruti is double that of Suzuki. And that reflects in the on-the-ground numbers, too — 61% of automobile production of Suzuki worldwide comes from Maruti. The car exports from the subsidiary now exceed that from the parent, a fact that proves India is a favourable manufacturing

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Eduardo Saverin