We need to take the fight to rivals with competitive, affordable cars: Maruti CEO Hisashi Takeuchi

In his first interview to the Indian media at the helm of the country’s biggest carmaker, Hisashi Takeuchi said competition is getting “more serious” in a market that has “huge” growth potential.

“We need to take the fight (to our rivals) and we also need to bring in competitive products at affordable prices,” Takeuchi told ET. “I feel comfortable that we can now take market share back and increase volumes once again… Without success in SUVs, it is not possible to reach a 50% market share. We have a plan to come back to this SUV market in the coming year or two.”

Maruti aims to maintain its leadership position locally and would like to own a 50% share of unit sales.

Strategy for EV, SUV

Takeuchi said SUVs will be at the centre of the strategy to build incremental market share. The company will soon launch a midsize SUV to take on Hyundai Creta, Kia Seltos and Skoda Kushaq.

With sales of 1.37 million units, Maruti Suzuki reported a market share of 43.4% in FY22, compared with 47.7% recorded the year before. The company also plans to launch its first EV by 2025. The EV, to be manufactured at Suzuki’s manufacturing facility in Gujarat, will also be exported.

Takeuchi said limited chip availability for the domestic market disrupted output and led to an erosion in market share, although Maruti Suzuki more than doubled its exports in the just-concluded fiscal year.

“Domestic volumes were restricted and we could not sell as many cars as we wanted to because of the semiconductor situation,” he said. Maruti Suzuki has pending orders of 270,000 units.

“This EV is a strategic product for Suzuki. We are thinking of introducing this not only in the Indian market, but we are also thinking of exporting this model,” Takeuchi said. “The Gujarat factory is in a good location and close to the port.”

Once EVs are mainstreamed in India, the company will start their production across other factories in the country.