New Delhi: Toshihiro Suzuki, Representative Director and President of Suzuki Motor Corporation, is not entirely sure if electric is the proverbial magic wand for the auto industry to meet the sustainable development goals.
“Looking globally at the automobile market of the future, I have doubts whether EVs are the only answer,” he has articulated in the company’s Sustainability Report 2023 which has been recently put up on its global website.
“For example, it is said that global vehicle ownership is approximately 1.5 billion, and we need to make sure whether it is possible to supply all the materials needed for batteries for all of those vehicles, or if it is even possible to supply enough batteries to meet customers’ needs,” Suzuki said.
Beyond this is the challenge of whether enough charging stations can be established, and the need to question the impact that the increase in battery weight will place on road infrastructure and multi-storey parking lots. According to the president, the importance of the right place and right time literally means that electric, hydrogen and carbon neutral fuels all have a place and “method that suits them”. Consequently, the key is to develop mobility solutions that can be used for “particular places and situations”.
“I personally believe that mini vehicles are optimal for EVs. As the average number of passengers per vehicle in Japan is 1.7 and the driving distances are short, I believe that a superior mini EV can be made real by further rethinking how it will be used,” says Suzuki. It is his firm conviction that the company’s expertise in small car development gives it a distinct advantage in making this a reality.
India to fuel growth
This observation on EVs is among a series of others which form part of the growth strategy for this decade and where India will play a huge role as Suzuki Motor’s largest market globally. Its local arm, Maruti Suzuki, continues to be the leader even while it has been losing ground in its small car business which has in some way been made up by a resurgence in its share of SUVs.
The India strategy now factors in the global alliance with Toyota Motor Corporation which was first announced six years ago and has since grown from strength to strength. The two companies are now into joint product development with an eye on clean fuel options as well as Toyota helping Suzuki access more global markets beyond India.
This objective has been spelt out clearly by Toshihiro Suzuki in the Sustainability Report 2023. “We aim to expand business in Africa, leveraging the knowledge of business models and product development cultivated in India. The population and nominal GDP of African countries are forecast to increase and we expect significant market growth in the future,” he says.
For the time being, the company will use India as its production base and, working in tandem with Toyota, will cater to the needs of regions in Africa too. The key, adds Suzuki, is to hone the focus on Africa and make it the next pillar of growth after the Indian market. This could even see the commissioning of a plant in the continent and it is quite logical to assume that skilled personnel in India will be sent to Africa as part of this growth plan.
The other priority is creation of the Suzuki Smart Factory. As the president explains, the idea is to focus on innovation in the production structure. “I believe that for a manufacturing company, a plant that does not produce defective products will generate the most profits,” he says.
Suzuki Smart Factory
The Suzuki Smart Factory of the future will run continuously while gathering production data without relying on human labour, use advanced sensors and hopefully discover problems before defects are generated or equipment is completely shut down. “We are also using energy effectively and promoting high energy-efficient manufacturing,” adds Suzuki.
The growth strategy will also see collaborations happening with startup companies that are “currently running hot”. The president is keen on meeting directly with them to build robust partnerships while “conversing and understanding the ideology of their business”. The next step would be to display shared goals, enhance each other’s capabilities and align vectors while “making them into Suzuki fans”.
India will doubtless play an important role in the march towards achieving each of these goals. Maruti Suzuki is working towards a 50% market share but beyond this is the need to invest in new technology for “mobility production and to expand the production structure”.
Toshihiro Suzuki is of the view that investments will also need to be made in human resource development “such as for the people who will carry out operations”. The president is clearly betting on India’s strengths to make the 2030 vision a reality.
