Maruti marks 40 years of Suzuki JV, celebrates ‘Joy of Mobility’

Maruti Suzuki India Ltd, on Monday, announced that it has completed 40 years as a joint venture with Suzuki Motor Corporation (SMC) of Japan, which was signed between the Government of India and Japanese marque in 1982. It also revealed that it became a subsidiary of SMC in 2002.

India’s largest homegrown car-maker, in its Annual Integrated Report for FY22 titled '40 years of Maruti Suzuki - Joy of Mobility’, said, “It has been 40 years since Suzuki Motor Corporation, Japan, entered the Indian car market as a joint venture partner in the company to fulfill the aspirations of millions of Indians to own a reliable, affordable and modern technology car.”
 
RC Bhargava, chairman, Maruti Suzuki, while recognising the company’s contribution to the automobile sector over four decades, said, “This year is a landmark not only for your Company, but also for the country. We celebrate 75 years of Independence… Your Company also celebrates 40 years of the formation of the partnership with Suzuki of Japan… This resulted in the development of a modern competitive automobile industry in India, generation of millions of jobs and creation of immense wealth for the nation…”

Maruti Suzuki India, in terms of production volume and sales, is now SMC’s largest subsidiary which currently holds 56.37 per cent of its equity stake. Currently, Maruti Suzuki is a public limited company and its shares are traded at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

“MSIL not only created a modern automobile industry in India but brought in new concepts of quality, productivity and competitiveness to manufacturing activities in India. We now have a large component manufacturing industry that is of global standards... To mark 40 years of this wonderful partnership, your Company is intending to launch a number of new initiatives,” Bhargava added.
 
In FY22, Maruti Suzuki’s total sales increased by 13.4 per cent to 16.52 lakh units. In comparison, total domestic passenger vehicle sales in the Indian market stood at 30,69,499 units in 2021-22, as compared to 27,11,457 units in 2020-21, according to the Society of Indian Automobile Manufacturers (SIAM) data.

Maruti Suzuki also reported that it had lost out on sales in the first quarter of the fiscal due to the pandemic and production being affected by the shortage of semiconductors, mainly for domestic models. The company’s unmet bookings at the end of the year rose to about 2.7 lakhs, while its market share declined to 43.4 per cent from nearly 50 per cent as it lost some opportunity in the domestic market.

Bhargava, while detailing the company’s performance in FY22 and sharing optimism for the future, said, “During the current year (FY 2022-23), the vehicle production would increase as the situation regarding the availability of semi-conductors has improved. Your Company has also made further improvisations to enhance production. I am exhorting our team to reach 2 million units, though doing that remains a challenge.”
 
“We already have 26.3 MW of solar energy generation in operation in our plants at Gurgaon and Manesar. There is a plan to add another 21.85 MW by 2024. At Kharkhoda site, we plan to install another 20.0 MW of solar energy from the very beginning. Our employees are fully vaccinated and most have had the booster dose. We work closely with our supplier partners and dealers to ensure that they also adopt the best practices in respect of employee safety, health and adopting practices that would minimize risk of any damage from fire or other accidental causes,” he said while elaborating on carmaker’s continued strong focus on health, safety and environment.

Kenichi Ayukawa, Executive Vice Chairman, Maruti Suzuki - who had recently resigned as the Managing Director and CEO of the company and is moving on to higher responsibilities in Suzuki Japan - said, “Changes in technology, customer preference and many more aspects will surely bring more challenges. I am confident that Maruti Suzuki will use these as opportunities and emerge successful. As I handover the reins of this magnificent Company, I draw satisfaction that Maruti Suzuki is in the hands of able leadership led by Mr. Hisashi Takeuchi. I am sure under his leadership Maruti Suzuki will achieve even greater heights.”

Hisashi Takeuchi, Managing Director & CEO, Maruti Suzuki, in his first address to shareholders, shared his mission and said, “During the last 40 years, the Company has been satisfying mobility needs of many Indian people by providing affordable modern technology cars. However, only 3 per cent of Indian people enjoy the ownership of a car, and I would like to deliver this ‘Joy of Mobility’ to as many Indian people as possible. This is my personal mission. Majority of people love our products, and we also want them to join our large base of happy and loyal customers.”

Maruti Suzuki’s total revenue was Rs 900,891 million in FY22 as against Rs 732,789 million in the previous year showing an increase of 22.94 per cent. Sale of vehicles in the domestic market was 1,414,277 units as compared to 1,361,722 units in the previous year showing an increase of 3.86 per cent.

Total number of vehicles exported was 238,376 units as compared to 96,139 units in the previous year showing an increase of 147.95 per cent. Profit before tax (PBT) was Rs 45,823 million against Rs 51,594 million showing a decrease of 11.19 per cent and profit after tax (PAT) stood at Rs 37,663 million against Rs 42,297 million in the previous year showing a decrease of 10.96 per cent.