A slow economy is an opportunity: Maruti Suzuki’s Nakanishi1 min read . Updated: 01 Apr 2013, 12:28 AM IST
, outgoing MD and CEO of
reaffirmed his faith in Indian economy
New Delhi: Shinzo Nakanishi, the outgoing managing director and chief executive of India’s largest car maker Maruti Suzuki India Ltd, reaffirmed his faith in the Indian economy and dismissed the current economic situation as short-term pessimism in a farewell letter to Maruti Suzuki India employees on Saturday.
The 65-year-old Nakanishi has been associated with India for more than 30 years as a representative of Suzuki Motor Corp. Nakanishi took over as managing director from Jagdish Khattar in 2007 and will be succeeded by Kenichi Ayukawa. The 58-year-old Ayukawa is “the most appropriate choice to succeed me and lead Maruti Suzuki into the future", Nakanishi said, adding that a slowing economy presents an opportunity for the car maker to increase its dominance over the Indian market.
“The Indian economy has slowed down. Cost of ownership for automobiles is high due to high fuel prices and interest rates. Competition is intense," Nakanishi wrote in a farewell letter. “I believe that a slow economy and market is an opportunity for any market leader." Mint has reviewed the letter.
Maruti is scheduled to start its manufacturing facility at Gujarat, where it has committed to make an investment of as much as ₹ 18,000 crore. This expansion will increase its manufacturing capacity of three million units. Besides, it also wants to strengthen its presence in the utility vehicle segment, which has seen exponential growth.
The move will help the company protect its market share amid rising competition. While the Indian economy has slowed to a 10-year low, car sales are at their worst in 12 years. During April-February, car sales in world’s second fastest growing auto market declined 4.64% to 1.71 million units.