Although the management of Maruti was increasingly in Suzuki hands, Khattar did not see this as incompatible to national interests where there was scope for mutual benefit in many areas. He got Indian managers to spearhead several global initiatives for the company. The R&D capabilities were beefed up and Maruti managers began spending extended periods in Japan to contribute to global teams of engineers, auto styling specialists and other technical areas. From being a virtual subsidiary of a foreign company, the managers at Maruti quickly became important parts of a global enterprise.
It was a heady period that saw development of the successful Swift, followed by the Zen Estilo, XL-7 and the bigger SX4, with Indian designers and engineers as important elements in the production and marketing teams. These new launches pushed up Maruti’s market share and its representation in segments, other than the old market it commanded in small cars alone. Under the bonnet, similar engineering teams developed Suzuki’s first diesel engine, a new 1300cc engine in collaboration with Fiat. The auto company is now working on a brand new state-of-the-art 1000cc aluminum engine for petrol cars.
The new Manesar plant making these engines has a
capacity of 300,000 cars and Suzuki intends to make India the global production base for a new bigger car code named ‘A Star’ mainly destined for foreign markets. Maruti will also be introducing a new family vehicle, Splash, next year. But Maruti will not be competing with Tata Motors or Bajaj Auto for the manufacture of an ultra low cost car. Khattar has stated that the sale of these cars will lay the foundations for more customers to upgrade a few years later to cars from the Maruti stable.
But there’s no doubt that the fate of small cars – to be introduced by Tata Motors and others – will somehow decide the future fortune of Maruti. These new, possibly-cheaper models will threaten the auto maker’s domination in the small car and compact car segments. They will tell us whether Suzuki’s strategy of staying out of the low-cost, higher volumes game was the right one or not. However, the buzz is that Maruti will change the dynamics in the compact segment.
The new buoyancy at Maruti is also seen in the market place where Maruti wants to motivate its dealers to provide the best after-sales service that is being rapidly rolled out to reach new customers including those in rural or remote areas. Maruti has been in the lead with customer services as well with better car finance and insurance packages, Maruti’s ‘True Value’ outlets allow for the trade in sale and purchase of company certified used cars. The surveys on customer satisfaction by J. D. Powers and others have affirmed that these efforts have paid off.
Khattar may have served Suzuki well, but he first served his country and his customers. He did not see that these interests had to be in conflict. In 2006-07, Maruti’s net profits stood at Rs.15 billion; it was a huge change from the dismal profits seven years earlier. It was clearly an example of taking the company from defeat to victory. Khattar has always led from the front and not just in production or management. He has been an ever-smiling and very approachable leader of all the sales promotion efforts.
As a very capable ballroom dancer, he has had no reluctance to be the first on to the dance floor. And he keeps himself remarkably slim and fit by an unbroken daily regimen of exercise and walking. But though easily approachable, he is also very diplomatic and has learned the Japanese skill of very politely revealing nothing till the time is right.
For many, Khattar seemed like a pushover, a CEO who was sacrificing market share and dominance because he wasn’t aggressive. But past experience narrate a different story. Each time, Maruti has been threatened in a particular segment because of a model launch by a competitor, it has taken its time but has struck back with a vengeance. What Maruti’s models like the Alto, Swift and SX4 have done in the recent past is sufficient evidence. Khattar was a manager who didn’t believe in jumping into a crisis. He was the person who thought out his strategy, protected his company against most possibilities, and implemented a plan that had chances of becoming successful.
It was a heady period that saw development of the successful Swift, followed by the Zen Estilo, XL-7 and the bigger SX4, with Indian designers and engineers as important elements in the production and marketing teams. These new launches pushed up Maruti’s market share and its representation in segments, other than the old market it commanded in small cars alone. Under the bonnet, similar engineering teams developed Suzuki’s first diesel engine, a new 1300cc engine in collaboration with Fiat. The auto company is now working on a brand new state-of-the-art 1000cc aluminum engine for petrol cars.
The new Manesar plant making these engines has a
capacity of 300,000 cars and Suzuki intends to make India the global production base for a new bigger car code named ‘A Star’ mainly destined for foreign markets. Maruti will also be introducing a new family vehicle, Splash, next year. But Maruti will not be competing with Tata Motors or Bajaj Auto for the manufacture of an ultra low cost car. Khattar has stated that the sale of these cars will lay the foundations for more customers to upgrade a few years later to cars from the Maruti stable.But there’s no doubt that the fate of small cars – to be introduced by Tata Motors and others – will somehow decide the future fortune of Maruti. These new, possibly-cheaper models will threaten the auto maker’s domination in the small car and compact car segments. They will tell us whether Suzuki’s strategy of staying out of the low-cost, higher volumes game was the right one or not. However, the buzz is that Maruti will change the dynamics in the compact segment.
The new buoyancy at Maruti is also seen in the market place where Maruti wants to motivate its dealers to provide the best after-sales service that is being rapidly rolled out to reach new customers including those in rural or remote areas. Maruti has been in the lead with customer services as well with better car finance and insurance packages, Maruti’s ‘True Value’ outlets allow for the trade in sale and purchase of company certified used cars. The surveys on customer satisfaction by J. D. Powers and others have affirmed that these efforts have paid off.
Khattar may have served Suzuki well, but he first served his country and his customers. He did not see that these interests had to be in conflict. In 2006-07, Maruti’s net profits stood at Rs.15 billion; it was a huge change from the dismal profits seven years earlier. It was clearly an example of taking the company from defeat to victory. Khattar has always led from the front and not just in production or management. He has been an ever-smiling and very approachable leader of all the sales promotion efforts.
As a very capable ballroom dancer, he has had no reluctance to be the first on to the dance floor. And he keeps himself remarkably slim and fit by an unbroken daily regimen of exercise and walking. But though easily approachable, he is also very diplomatic and has learned the Japanese skill of very politely revealing nothing till the time is right.
For many, Khattar seemed like a pushover, a CEO who was sacrificing market share and dominance because he wasn’t aggressive. But past experience narrate a different story. Each time, Maruti has been threatened in a particular segment because of a model launch by a competitor, it has taken its time but has struck back with a vengeance. What Maruti’s models like the Alto, Swift and SX4 have done in the recent past is sufficient evidence. Khattar was a manager who didn’t believe in jumping into a crisis. He was the person who thought out his strategy, protected his company against most possibilities, and implemented a plan that had chances of becoming successful.
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