India will become an automotive technology provider to developing countries: Bhargava

NEW DELHI: India's auto industry will play a major role in driving manufacturing growth and attracting investment and prosperity, says Maruti Suzuki Chairman RC Bhargava, adding that the country will bring automotive technology to many developing countries. He added that the country would be the one to provide it. However, Bhargava said that even though India is benefiting from geopolitical advantages due to global diversification policies, Indian manufacturing is still not globally competitive.

“Today, India is the third largest automobile market in the world. We see the Indian automobile market as growing and India is the only large country that has the potential to grow significantly in the coming years. We have become a major exporter of automobiles and auto parts, which I estimate is already in excess of $20 billion. In many ways, we have become the leading exporter of automobiles and auto parts to many developing countries' developers and technologies. I think it will be a provider,” Bhargava said in an interview.

“The auto industry will drive the growth of manufacturing in India. I see the auto industry playing a big role going forward. I believe the auto industry is ahead of other industries in the world. It is the only manufacturing industry in India that has all the major manufacturing companies investing in India, and I can't think of any other manufacturing industry that has so much interest from overseas and is actually attracting overseas investment from the world's major companies.'' he said.

However, Bhargava, a former civil servant, warns that India's manufacturing industry has yet to achieve high levels of competitiveness and productivity and that public sector companies in particular need to improve their performance in this area. These are the themes he deals with in his latest book, Impossible to Possible, in which he argues that Maruti Suzuki, the first and only example of a government-run public utility (PSU), is a foreign company. Suzuki explains why it established a joint venture with (Suzuki) India to start manufacturing in India in a new area by introducing and adapting the productivity principles implemented by its Japanese partner.

Maruti Suzuki, India's largest carmaker, aims to produce 4 million cars by 2030, with production topping 2 million by 2023.

Even after retiring from their executive roles as MD and CEO, Mr. Bhargava (89 years old) and Mr. Osamu Suzuki (93 years old) continue to lead Maruti Suzuki and Suzuki respectively in a 40-year partnership of trust, loyalty and confidence. He maintains his position as Chairman of the Automotive Corporation. “Friendship has contributed to Maruti Suzuki's success,” Bhargava said. Suzuki has held a majority stake in MSIL since the government terminated its investment in Maruti Udyog in 2002, and currently owns nearly 60% of the company's shares. It generates huge profits from. INRMr. Bhargava said Osamu Suzuki earned 200 billion yen with the company in 1981 and “put his reputation on the line” working for a company that was almost “guaranteed to fail.” Because he was one of the few people who believed in the potential of the Indian automobile market. Suzuki has also helped Maruti break out of his traditional PSU mold and prioritize profitable growth and competitiveness.

“I think there is no question that one of the ways to improve public sector performance is that we need to significantly improve public sector performance in order to contribute to national growth. It's about acquiring a strategic partner who can implement a system that will help the company grow,'' Bhargava said.

“An example is the partnership between Kubota and Escorts in the private sector, where Escorts management decided to bring a Japanese partner into a company that had been family-owned for decades. Instead of getting a bigger piece of a smaller pie, you can grow your business significantly,” he explained.

Mr. Bhargava warns Indian industry against Western-driven management disciplines that could have a negative impact on global competitiveness. “We tend to blindly follow Western management systems, including our educational institutions. But which Western countries today are as productive and competitive as Eastern companies? Productivity If we don't look at what's going on in the world in terms of , competitiveness and manufacturing, we will remain as uncompetitive as Western countries in terms of manufacturing,” Bhargava said. Ta. Bhargava said a key element of management is kaizen, or continuous improvement, which can only be achieved if management works in equal partnership with employees.

Maruti Suzuki has cash of approximately $1 million. INR 50,000 Crores, hundreds of thousands of suggestions made by Maruti Suzuki employees every year to achieve 2-3% reduction in component costs (not considering inflation), saving billions every year The year leading to. And that's what makes the difference between a mediocre manufacturing company and a good manufacturing company,” Bhargava said.