Nakanishi has been associated with Maruti from the time the company was set up and started operations in 1983. He has been chairman (non-executive) of Maruti since 2002. Just two days after taking charge as the managing director of Maruti Suzuki, India's leading car maker, Shinzo Nakanishi, in an e-mail interview to Business Standard, explained how he planned to sustain his company's domination.
Maruti is at a crucial juncture as the number of challengers to its small car hegemony is about to multiply. How would you tackle this challenge?
Maruti takes competition seriously. We will stay focused on the goal of achieving one million sales by 2010. This will require capacity expansion and upgradation of manufacturing facilities, for which we have already announced an investment of Rs 9,000 crore (Rs 90 billion). The expansion of our sales and service network is underway for the one million target.
At the same time, I believe that Maruti Suzuki is ready to play a much bigger role in Suzuki's global operations, and my task will be to make that happen. Maruti Suzuki's manufacturing capability has reached a level where we want to make small cars exclusively in India for export to Europe.
Of the three million cars that Suzuki wants to sell worldwide, almost 30 per cent have to come from Maruti Suzuki India. We have lined up certain critical initiatives that will better the experience of our customers and partners, and I will keep a close watch on them.
How do you plan to face the competition from Tata Motors' new car, which has come to be known as the Rs 1 lakh car?
We have read reports that it will be launched some time in 2008. So far, we have not seen the car. There is no clarity yet on important aspects of model such as features, performance, safety, emission and others.
With SX4, Maruti has taken a vital step to grow beyond the small car segment. How would you balance your car dominance with big car aspirations in future?
Let me share with you the key points of Suzuki's worldwide strategy with regard to models. Suzuki has chosen a strategy of "World Strategic Models" to drive long term growth.
As part of this strategy, we have been developing global models which are European in overall styling and design, and carefully modified to suit local markets. What this means is that Indian customers get international levels of quality and design, at the same time as customers in other key markets.
Swift, which was launched worldwide in 2005, was the first model to emerge out of this strategy. Since then, Suzuki has launched the Grand Vitara, SX4 and Splash as part of the World Strategic Model approach. Small cars will continue to be in focus.
However, Suzuki is consciously expanding its image from a maker of mini-cars and small cars, to a company that offers the full range of models.
Your predecessor, Jagdish Khattar, is known to have enjoyed excellent relations with dealers, managers, employees and component suppliers. As the company's first non-Indian managing director, how do you plan to continue this? Or, would you do things differently?
I have been associated with Maruti and India for 17 years. I believe one of the reasons for Maruti's success has been its ability to strike a balance. We have borrowed the best in terms of Japanese technology, quality and work culture. At the same time, in our relationship with employees, partners and customers, we have been Indian to the core.
This balance will continue. Mr Khattar has a terrific legacy, and we can show gratitude to his effort by building on his legacy. Maruti Suzuki has to now play a much bigger role in Suzuki's global operations. Besides, we have to take major initiatives to better the experience of our customers and partners.