In a visionary outlook for India’s automotive industry, Maruti Suzuki Chairman R.C. Bhargava predicts that the country is poised to not only drive its manufacturing growth but also emerge as a key provider of automobile technology to the developing world. Despite India’s advantageous geopolitical position due to global diversification policies, Bhargava acknowledges that the manufacturing sector needs to enhance global competitiveness.
“Today, India is the third-largest car market globally, with immense growth potential in the coming years. I see India evolving into a major exporter of cars and auto components, positioning itself as a technology developer for the automotive industry in the developing world,” Bhargava emphasized in a recent interview.
The seasoned industry leader believes that the car industry will play a pivotal role in propelling manufacturing growth in India. According to Bhargava, the automotive sector stands out as the most advanced among all manufacturing sectors, attracting significant foreign interest and investment from major global players.
However, Bhargava, a former civil servant, cautions that India’s manufacturing industry is yet to achieve the desired levels of competitiveness and productivity. He addresses these concerns in his latest book, “Impossible to Possible,” where he reflects on the journey of Maruti Suzuki, highlighting the principles of productivity adapted from its Japanese partner, Suzuki.
Maruti Suzuki, India’s largest car manufacturer, aims to produce four million cars by 2030, a testament to the industry’s growth aspirations. Bhargava also points out the need for public enterprises, particularly in the manufacturing sector, to enhance their performance. He suggests that strategic partnerships, similar to the Maruti-Suzuki collaboration, could bring in systems to drive growth and competitiveness.
Bhargava warns against blindly adopting a predominantly Western school of management, urging Indian industries to look at successful models globally. He advocates for embracing philosophies like kaizen, continuous improvement, emphasizing the importance of equal partnerships between management and workers.
Maruti Suzuki’s success story, with a cash stockpile of nearly ₹50,000 crore, exemplifies the impact of continuous improvement. The company achieves an annual 2-3% reduction in component costs, driven by the suggestions of its workers, showcasing the transformative power of a collaborative approach.
As India positions itself as a potential auto technology provider to the developing world, Bhargava’s insights provide a roadmap for the nation’s manufacturing sector to achieve global competitiveness and sustained growth.
