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Old 15th December 2005, 09:58   #1
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Default Suzuki's child comes of age in India

The link points to an article about Maruti and its parent.it will outpace its Japanese parent in terms of the number of cars sold.....!
...Right now, Suzuki produces around 700,000-800,000 cars in Japan, as compared to Maruti's projected 600,000 for the year. By the end of next year, Maruti's second plant with a capacity of 100,000 will be up. Once the plant scales up to 250,000, depending upon the growth in the market, Maruti's production of four-wheelers will be higher than that in Japan....
Now do you think the action (of selling the controling stock to Suzuki by the govt) was a prudent one?
will Maruti acquire controlling stock in its "parent" one day?
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Old 15th December 2005, 12:02   #2
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Thanks Sandeep for the very insightful article. So the Japs are taking millions away from the country every year through dividend repatriation and royalties. The Government of India earlier had a policy whereby the dividend repatriated abroad had to be matched by exports of equal value, but under pressure from MNCs gave up that policy. While one appreciates the quality and reliability that Maruti has been giving over the years, it should always be ensured that the national interest does not suffer.

Suzuki's commitment to Maruti had been questionable till recently. Remember they refused to part with gearbox technology and Maruti was forced to import gearboxes from Japan. Also, even till today, none of Maruti's vehicles is a designed-for-India product. This is where Tata scores.
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