Maruti Suzuki India Limited (MSIL), the leading car manufacturer in India, is facing numerous issues. Shinzo Nakanishi (A Doshisha University law graduate), Managing Director and Chief Executive Officer, MSIL, has the responsibility of introducing fuel efficient automobiles that can meet requirements of Indian customers belonging to the middle class. In addition to this, Shinzo Nakanishi wants to place MSIL in the list of popular automobile companies in the world.
At present, Maruti Suzuki is facing tough times due to its low car sales. The sales figures tumbled for the company primarily due to the 2011 strike at the Manesar plant which prompted MSIL to temporary halt the production process. As a result, Maruti Suzuki was unable to provide diesel variants in the Indian automobile market.
The unavailability of diesel models, forced Indian customers to opt for other brands. The effect on sales graph was evident from the fact that for the very first time MSIL will reportedly sell few models as compared to 2010-11, when the company successfully sold 1.27 million units.
According to reports, from April to December, the car sales recorded by the Maruti Suzuki were 17% lower than a year before. Shinzo Nakanishi, who has been in charge of Maruti Suzuki India Limited since 2007, fears that things cannot be brought back to normal till March. Nakanishi commented, "My immediate priority is to minimise this gap, to bring it down from 17 per cent to single digit. We cannot cover up in such a short span. The demand is higher than what we can supply. We are very greedy and want to keep the total market share with us."
Currently, Maruti Suzuki is focusing on increasing its production of diesel variants of its Swift hatchback and DZire sedan. At present, the waiting period for DZire is 105 days. Shinzo Nakanishi has been initiating new policies to reduce this waiting period and finally eliminating it completely.
He said that "There is no waiting period for our petrol cars; the only problem is for diesel cars. Suddenly, the demand for diesel cars has gone up. Recently, we have increased the output of diesel engines and our tie-up with Fiat for supply of engines will help solve this problem."
Entry of international automobile brands in Indian automobile market has threatened the top position of Maruti Suzuki. This is evident from the fact that MSIL’s total market share of 90% once upon a time, now stands at 45%. For long, Maruti Suzuki has achieved success because of its small car segment. However, Maruti’s boss has decided to introduce its models for multi-purpose vehicle (MPV) and multi-utility vehicle (MUV) segment. In order to withstand fierce competition, MSIL would bring stylish, fuel-efficient and compact MUVs at affordable prices.
During the initial month of February, company recorded cumulative sales of 10 million units in the domestic market. Half of the sales were gained in a span of six years after Nakanishi joined MSIL.
