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Old 30th June 2015, 20:34   #1
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Default Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

Osamu Suzuki, the patriarch of Suzuki Motor Corp., positioned his son Toshihiro as his likely successor, appointing him president of their namesake carmaker.
Osamu Suzuki, 85, one of the auto industry’s longest-serving leaders, will stay at the helm, keeping his titles as chairman and CEO, the company said today in a release.
Toshihiro Suzuki, 56, is one of four executive vice presidents appointed in 2011 to run the daily operations of Japan’s fourth-largest automaker. He takes office as president and COO today.

Source: Automotive news

Suzuki also announces its Mid -Term Management plan- Suzuki Next 100.

Suzuki Motor Corporation has established the New Mid-Term Management Plan SUZUKI NEXT 100, a five-year plan from 2015.

Quote:
The Suzuki Group will be celebrating its 100th anniversary of foundation in 2020. In order for the Group to continuously grow for the next 100 years, Suzuki will put efforts into strengthening of management base by positioning the next five years as the period to stabilize the foundation of management. The Group will tackle as Team Suzuki to globally develop manufacturing base and overhaul working procedure.
Under the New Mid-Term Management Plan, the Group will unite as one to enhance corporate value and aim for sustainable growth.
Overview of the New Mid-Term Management Plan SUZUKI NEXT 100 is as per below.

New Mid-Term Management Plan SUZUKI NEXT 100
- Strengthening of management base toward the 100th anniversary of foundation and the next 100 years –
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http://www.globalsuzuki.com/globalnews/2015/0630b.html
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Old 30th June 2015, 22:38   #2
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Default re: Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

Suzuki draws road map for India in its future strategy.

India to drive Suzuki's 2020 mid-term target, likely to contribute 60% of its global volumes.
Asia is expected to contribute over 64% (2.2 million) of its global volumes by then and India will contribute a lion’s share of 58%.

Suzuki said it expects the passenger vehicle market in India to grow at a compounded rate of 11 percent for the next five years to 5 million units and become the third largest passenger vehicle market globally by 2020 and Suzuki expects Indian base to retain its high 45 percent market share, despite stiff competition.

Suzuki Motor Corporation said, the company will be launching 20 new products in the coming five years which may also include full model changes of existing cars and it wants to make India a long term development base by co-developing more with Indian engineers.

Going ahead the local Indian subsidiary will not only act as a key production base, but its Japanese parent wants the India operations to globalise the brand further by exporting to newer markets.

Suzuki not only expects Indian R&D base in Rohtak, Haryana to develop models for India but also for the emerging African and Asian markets of the future.

The company will be investing in new platforms and consolidate the products into three new lightweight platform of Mini, A, and B. There will be a lot of emphasis on modularity of the platform to aid commonisation of parts and Suzuki will also be pushing towards Auto Gear Shift and new hybrid technology, which it wants to spread globally.

http://auto.economictimes.indiatimes...lumes/47885215
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Old 1st July 2015, 10:44   #3
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Default Suzuki aiming for 58% of global sales from India by 2020 - 20 new models coming!

The Suzuki Motor Corporation announced its new mid-term plan while anointing Toshihiro Suzuki, the eldest son of Osamu Suzuki as the new president. The Indian arm of Suzuki, Maruti-Suzuki India Ltd., sees itself as the focus of the company's ambitious 5-year-plan, as Suzuki is targetting 3.4 million sales in passenger cars by 2020, out of which around 60% (2.2 million sales) are expected from Asia. India's contribution to this 60% will be a steep 58% (or 2 million sales).

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Till 2014-2015, Maruti-Suzuki India Limited has contributed ~43% of Suzuki's global sales, with ~30% of its overall consolidated profits.

To achieve this sales growth over the next 5 years, Suzuki plans to roll out as many as 20 new vehicles in the Indian market. The Maruti S-Cross, YRA hatchback, YBA sub-4m SUV, Wagon-R based MPV are some of the all-new cars on the line, while updated models of the Swift, DZire, Ertiga, Alto and the Ciaz will be coming.

Quote:
Suzuki said it expects the passenger vehicle market in India to grow at a compounded rate of 11 percent for the next five years to 5 million units and become the third largest passenger vehicle market globally by 2020 and Suzuki expects Indian base to retain its high 45 percent market share, despite stiff competition.

Suzuki Motor Corporation said, the company will be launching 20 new products in the coming five years which may also include full model changes of existing cars and it wants to make India a long term development base by co-developing more with Indian engineers.

K Ayukawa, MD & CEO, Maruti Suzuki India Limited told ET, "The SMC medium term plan puts high focus on India, which is very positive. Mr T Suzuki has been a Board member of MSIL since October 2013 and has a very good understanding of our business. Overall, SMC's commitment to India remains unchanged".

Going ahead the local Indian subsidiary will not only act as a key production base, but its Japanese parent wants the India operations to globalise the brand further by exporting to newer markets.
ET

Last edited by Gannu_1 : 1st July 2015 at 16:56. Reason: Typo.
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Old 1st July 2015, 11:29   #4
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Default Re: Suzuki aiming for 58% of global sales from India by 2020 - 20 new models coming!

Suzuki definitely has the potential to increase its footprint in India (irrespective of how its performance in India is relative to its Global performance). They have enough offerings in the mass segments and enjoy decades' worth of brand recognition.

However, it is going to be challenging:

1) Hyundai has upped its game tremendously and has very strong offerings in each of the mass segments. And they're only getting better.
2) Similarly, other manufacturers know the value of these segments and will try their hand at them
3) Most importantly, Maruti Suzuki is barely known for being safety-conscious or even valuing a strong body chassis and safety features. As awareness grows and the public becomes "okay" with spending more for that airbag or ABS, MS will stick out as a manufacturer with flimsy cars and an absolute ignorance towards safety.

But, they have enough goodwill to keep cruising for some more time.
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Old 1st July 2015, 16:42   #5
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Default Re: Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

Pulling Toshihiro up the ladder was expected. What really caught my eye is this:

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Originally Posted by RavenAvi View Post
out of which around 60% (2.2 million sales) are expected from Asia.
Wow! Maruti is, in effect, aiming to double its sales from where they are today (about 100,000 a month currently). That's very ambitious. Equally, it's not impossible because they still have some segments to tap, including compact SUVs, a people mover bigger than the Ertiga, commercial vehicles more capable than the Omni / Eeco etc.

Suzuki would be nothing without Maruti. It would be as miserable as Mitsubishi is today.

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Originally Posted by libranof1987 View Post
Hyundai has upped its game tremendously and has very strong offerings in each of the mass segments. And they're only getting better.
Maruti is surely up to the fight. In the time that Hyundai has upped its game & improved quality, Maruti has too. Maruti has actually increased its sales in recent times, along with Hyundai of course.

It's a joy to watch these two play in the market. They are absolutely relentless and have fought global majors tooth & nail. Bring it on .
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Old 6th July 2015, 19:51   #6
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Default Re: Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

Am unsure whether to celebrate Suzuki's rising marketshare in India, with so much obvious, and all-too achievable growth still waiting to happen, what with them going after other segments, and higher up the market-segment ladder.

Suzuki(+ Hyundai + Honda) have, what? 70-75% of the mass market for hatches and sedans, and one feels sure a similar story is about to repeat with cuv/suv-s too.

This is oligopoly-like ('oligopolistic competition'), and would attract the attention of anti-trust authorities in other countries, including China?

It is not even healthy for Suzuki globally, in one sense: it leaves them highly dependent on Maruti in India, a very severe existential-risk, should the indian car market slip into a severe recession, in the future.

Thanks to the Indian market, and their early, then-government sponsored work here, Suzuki seems to've become arguably the only exeption to the iron law of the car industry the world over, given the huge economies of scale and scope in this industry: the withering away of small, independent car-makers in favour of giant single- or multi-brand firms. What is even more amazing is that this has been achieved while sticking only to very economical, small, decidedly un-premium usually somewhat 'emerging market'-type vehicles.

It will be intriguing to see whether the younger Suzuki moves to address this, for better or worse, grave imbalance in the firm's character by tying-up with in the manner of say Nissan with Renault, or recently Mazda with Toyota+Daihatsu, with a much bigger, more diversified car firm.

That was presumably the idea behind the sale of 20% stake in Suzuki to the VW group, now contested and in arbitration court. That court's award will come soon enough, and what the new boss decides thereafter will be interesting.

FCA's Marchionne could be very interested, especially since fiat's an old partner of Suzuki's in both Europe and of course India.

In any case, this amazing and pretty unique (thanks to India) car company is on a very strong wicket, in financial and stock-price etc terms, for as long as its surging run of success in the buoyant Indian car market is intact.
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Old 7th July 2015, 00:59   #7
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Default Re: Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

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Originally Posted by desdemona View Post
Suzuki(+ Hyundai + Honda) have, what? 70-75% of the mass market for hatches and sedans, and one feels sure a similar story is about to repeat with cuv/suv-s too.

This is oligopoly-like ('oligopolistic competition'), and would attract the attention of anti-trust authorities in other countries, including China?

It is not even healthy for Suzuki globally, in one sense: it leaves them highly dependent on Maruti in India, a very severe existential-risk, should the indian car market slip into a severe recession, in the future.

The Indian car market has several features that does not permit any single manufacturer to exhibit exploitative tendencies. Of course, the Industry has oligopolistic tendencies, but then the automobile industry the world over has been like that.

The industry is fiercely competitive, consists of several players and the market leader, we find, is pricing its products lower than the competition. Further, as you rightly pointed out, both Maruti and Hyundai have tapped only the lower end of the market where volume is high but revenue per unit is very low, which is very confidence uninspiring for a market leader.

Suzuki has hardly ever been in a position to abuse its dominant position in the Indian market and even now at the best of times they have reasons to be jittery.

As the market matures, people are likely to change cars more often, so service alone may cease to be a deciding factor.When consumer awareness grows they may prefer cars with safety features and cutting edge technology. As consumers become upwardly mobile they are likely to prefer internationally successful products.

The company has responded by shifting its brand position through launching premium products to be sold through premium dealerships. However now they are face to face with the biggies of the auto world and President Toshihiro has a tough task to ensure that Suzuki emerges unscathed.
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Old 7th July 2015, 01:46   #8
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Default Re: Suzuki names son Toshihiro as President. India to make up 60% of global volumes by 2020

Except that Maruti Suzuki's margins in India are almost luxury-car-brand like, upwards of 9%, they're aiming to reach 12/13% this financial year is what Mr. Bhargava told stock market analysts recently, i believe.

They have some of the highest margins (in India) PER CAR of any car company, mass or luxury, in any national market, better, it would appear, than several luxury car makers in say the US or Europe or even China? Going by widely reported and confessed ebitda and net margins from around the world, whatever their accuracy.

Suzuki is indeed, as GTO says, "nothing" without Maruti. That is an incredible strength, making them such a peculiar and unique firm globally speaking, but it is also a great/grave/fateful vulnerability, isn't it?

btw, the sales slowdown in the Indian market witnessed a year and three ago....saw Maruti S greatly increase marketshare, even before the launch of the Ciaz, Swift facelift, etc.

Competitive intensity in the Indian market is actually very low, in practice rather than in appearance, by comparison with say China or Mexico or Turkey or Brazil, let alone the US and Europe.

Suzuki, such a small firm elsewhere, has truly incredible scale economies for sourcing, manufacture, logistics, and especially for distribution and service. This is a main reason why their marketshare, high margin, continues to rise, even given their hitherto absence from so many segments.

To my amateur economist eye this is a fit case for anti-trust investigations, or rather would've been in the EU, the US and certainly China, although am unsure of the whether the Indian competition commission is empowered legally for such a case of a non-cartel, non-conspiratorial oligopoly-through-competition?
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