The Hindu Business Line : Make this the year of Maruti Suzuki, dealers told

Chennai, May 25 Make this the year of Maruti Suzuki. This is the message the company’s Managing Director and CEO, Mr Shinzo Nakanishi, has sent its dealers

At the dealers’ conference in Bangkok, Maruti Suzuki said the positive momentum seen from December 2008, after a tough period last year, should continue and become stronger with a stable government in place at the Centre.

Mr Nakanishi’s message to the dealers was clear: The company has put in place a long-term strategy in terms of model range, dealer network and marketing initiatives. Now, the dealers had to put their best foot forward, concentrate not just on a handful of models to achieve growth but push all models and across all regions.

The company is now in a position to adopt a flexible approach. If the positive momentum continues, it has the production capacity, the models and the network to tap the opportunity. While competitors have postponed some of their plans, Maruti Suzuki has launched three models in the last 14 months — the Swift Dzire, the A-Star and now the Ritz. It has the models to cater to different price points and multiple fuel options.

Last year, the company identified new opportunities in the rural market and among government employees, and it hopes to tap into them in a big way to power its growth this year.

According to reliable sources, the Managing Director’s message to the dealers was that whatever the economic or market situation, the company has to sell much more than the competition. When the market slows, it is the market leader who gains at the expense of the competition.

Mr Nakanishi told the dealers that he was worried about the quality of growth. Although the company achieved good overall numbers — sales during 2008-09 were up 3.5 per cent to 792,167 vehicles — the performance was not uniform across regions and models. The growth came mostly from the Dzire and the Swift, while its performance in many other models was not up to the mark.

Mr Nakanishi told the dealers that the company’s profits declined due to high commodity prices, foreign exchange changes and demand slowdown. (While its income from operations increased to Rs 20,852.52 crore in 2008-09 from Rs 18,375.84 crore the previous year, profit after tax declined to Rs 1,218.74 crore from Rs 1,730.82 crore previously.) He wanted the company to grow and grow profitably. A goal, he told the dealers, that was not restricted to the company.

The theme for the year, according to the Managing Director, is “A Winning Mind.” In a booming economy, all players are in cosy comfort and growing with the market. But in a tough market, there is no place for a loser. The company had to fight for every single customer. He was confident the company would win and by a wide margin too.

Related Stories:
Maruti hopes to exceed SIAM’s industry growth projections
Competition hots up in premium compact car segment

More Stories on : Outlook | Cars | Maruti Udyog Ltd

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