Maruti Suzuki Asks Auto Components Industry To ‘Make In India’ To Cut Imports

Maruti Suzuki India Ltd. has asked auto component makers to start manufacturing vehicle electronics and certain key parts in India to cut imports of such devices.

The local manufacturing of such parts would not only help Maruti Suzuki but also support the Narendra Modi government’s Make in India initiative, Managing Director and Chief Executive Officer Kenichi Ayukawa said while speaking at the ACMA Annual Summit in New Delhi on Friday.

“I have a challenge and an invitation to offer to you (auto components industry). A Maruti car is over 90 percent local, component-wise. But some key parts and electronics are areas where we still need to import. But we want to Make in India.”

The best opportunity to win in the future lies in developing in-house research and development capability, said Ayukawa. “If India has to be competitive in the world of tomorrow, my message is—start developing in-house R&D capability…(which) is a very long drawn process and the results come slowly. We have to be patient and stay committed.”

On government policy, Ayukawa said that if the government sets targets on end goals and allows freedom to the industry players to choose the technology, it would be best suited to achieve the end goals.

“Such technology-agnostic approach will give the freedom of technology choice, while keeping focus on the target,” he added. Ayukawa also emphasised on the virtues of quality manufacturing of auto components.

Source: Bloomberg

Image Courtesy: FE