EXCLUSIVE: 'Can improve Maruti market share to 50%', says MD Hisashi Takeuchi

Maruti Suzuki India's (MSI) new Managing Director and Chief Executive Officer Hisashi Takeuchi has a tough task cut out for him. With global challenges starting from supply-side constraints to domestic hiccups arising from MSI's slipping market share in the last two years, Takeuchi is all set to take them head on. A veteran with Suzuki Motor Corporation -- he joined in 1986 -- Takeuchi says that his experience in varied markets, such as Japan, Australia and Hungary has prepared him well enough to now handle India, which is SMC's largest single market.

And the 58-year-old MD has big shoes to fill in after Kenichi Ayukawa, the outgoing MD and CEO's nine-year stint comes to an end. Ayukawa -- who ushered Maruti's entry into premium car segment with NEXA retail channel -- will continue as a whole-time director designated as Executive Vice Chairman till September 30, 2022.

In his first-ever interaction with the media, Business Today sat with Takeuchi-san to talk about his vision for the company, MSI's entry into electric vehicles (EVs) and, what the future holds for the company, and more.

Also Read: Maruti Suzuki Jimny coming to India, marketing plans being worked out

Edited Excerpts:

On the new role and leadership style

Hisashi Takeuchi: Everybody has their own style. My style is not very aggressive. My style is being a good listener to understand as many people as possible in order to define what direction which we have to move as a company. I'm a good listener rather than a dictator. I think the most important asset for the company is its people. My first task is to get to know all the people that I would work very closely with. There are many more opportunities in various departments to grow together which is new to me. I'm excited to be in the driver's seat of the biggest Indian automotive company.

On filling big shoes

Hisashi Takeuchi: It would be extremely difficult to fill his [Ayukawa-san's] shoes. He has been here for nine years. He's got a long experience and expertise and by using those assets he's managed the company well. I don't have as much expertise. For me, it's a challenge. It will be trial and error, but without much scope for error.

On MSI constantly losing market share

Hisashi Takeuchi: Personally, maybe I'm lucky because if I had gotten this leadership opportunity when the company was enjoying 53 per cent market share, it would have been very difficult to surpass that. Now that it's a little bit down, I have the opportunity to take it back up to 50 per cent. That is a comparatively easier task. But I can gradually improve market share and we have a strong product plan to do that, including many SUVs for the Indian market. Plus, we have many more ideas to enhance our CNG portfolio. I'm sure this will help up us increase our market share gradually to as much as close to 50 per cent.

On SMC's Rs 10,440-crore investment in Gujarat

Hisashi Takeuchi: We have a factory in Gujarat and in Haryana. We will introduce EVs one by one. The first EV must be produced somewhere either in Gujarat or Haryana. We had a discussion on where to produce it. One of the advantages of producing in Gujarat is that they're close to the export port from India. We will market this EV strongly in India but at the same time, it's a strategically important model for global Suzuki also because this is one of the first EVs that is going to be introduced in the global market. Hence, we have to be also strong in exports. So, Gujarat being closer to the port is one of the big advantages. But if EV becomes 50 per cent of the total market then of course every factory of MSI and Suzuki will start producing EVs.

On EVs

Hisashi Takeuchi: Indian market is the biggest single market for Suzuki group. It's important strategically for the entire Suzuki group. Suzuki group is paying extra attention on how to come close to carbon neutrality in this market. In India by 2030, EV penetration will be 30 per cent. Industry specialists say it will be between 8-10 per cent.

That means the remaining portion of the cars will be non-EVs. And that will be newly manufactured and registered in the Indian market. So, we have to introduce EVs but for those cars which are non-EVs also we have to address them with much better technology to make them environmentally friendly. To achieve this, we believe we have to employ all possible technologies which are better for environment. Of course we'll do EVs but we're also trying to take a technology-neutral approach.

So, we don't care which technology we're going to employ as long as it works towards a better environment and is cost-effective. Because at the end of the day the customer will decide which car to drive, not the government or the manufacturers. We have to make sure we're chosen by the customer that's why it has to be a technology which is good for the environment as well as good for the pocket.

On Japanese workmanship

Hisashi Takeuchi: Japanese people are very punctual and precise. One thing I always tell people is you have to think about the person receiving from you. For example, if you're writing something, it's important to write it in a way that the reader understands. Similarly, in the production line, if you're assembling something, you have to consider that you've to make it easier for the next person who's working with it. If everyone starts thinking about how the person after them feels while deal with a task, the entire process of working will be more efficient.