Suzuki Motor Corporation, the promoter of India's largest car maker Maruti Suzuki, on Tuesday said that competition is getting tougher and it aims to expand its business in European and other Asian markets.
Suzuki Motor Corporation, the promoter of India’s largest car maker Maruti Suzuki, on Tuesday said that competition is getting tougher and it aims to expand its business in European and other Asian markets.
“It is the entry of other manufacturers that is making the competition tougher (in the Indian market). We have to expand ourselves more in Europe and Asia to maintain profitability,” Toshihiro Suzuki, president and chief operating officer, Suzuki Motor Corp, told reporters. At the same time he ensured that increasing profitability in Indian operations is also important.
On increasing competition and the company’s roadmap to tackle the same, Suzuki said, “We will also have to manufacture or develop superior products which are exceeding the expectations of the customers. We have to strengthen ourselves in these areas.” Since the launch of Renault Kwid in recent months, Maruti Suzuki has faced increased competition in the entry-level car segment, which comprises close to 35% of its total sales volumes.
Suzuki said that the company plans to bring 15 of its 20 new models by 2020 to the Indian market and the Indian research and development team will work towards developing India-specific models.
However, he raised concern over global rival Toyota’s move to acquire 100% stake in Daihatsu, saying it will become a threat to Suzuki’s business “not only in India, but in other markets as well.” Daihatsu is a Japanese carmaker, mainly involved in manufacturing of small cars. Toyota acquired a controlling stake of 51% in Daihatsu in 1988, but is now raising its stake to 100%.