Maruti Suzuki MD Hisashi Takeuchi Highlights India’s Potential to Dominate Global Manufacturing
India is poised to become the next global manufacturing powerhouse, according to Hisashi Takeuchi, Managing Director and CEO of Maruti Suzuki India. Speaking at the Automotive Component Manufacturers Association of India (ACMA) annual convention, Takeuchi emphasized the importance of policy stability in realizing this potential. He highlighted India’s unique advantages, including its large working-age population and a rapidly growing economy, as key factors that could propel the nation into a new era of economic dominance.
India’s Economic Potential
Takeuchi pointed out that throughout history, nations have risen to economic prominence every few decades. He noted that while the last three decades have been dominated by China, the upcoming decades are set to belong to India. He drew comparisons with previous economic powerhouses, such as the United States, Europe, Japan, and the Asian Tigers, which have all experienced periods of significant growth. Takeuchi underscored India’s strengths, including its $4 trillion economy, proactive government initiatives, and the innovative spirit of its people. He likened India’s current situation to Japan’s post-World War II recovery, where government-backed industrial initiatives played a crucial role in economic growth.
Government Initiatives and Policy Stability
Takeuchi highlighted several recent government measures aimed at bolstering the manufacturing sector. These include reductions in corporate taxes and initiatives like the Production-Linked Incentive (PLI) scheme and the Make in India program. He stated that these reforms demonstrate a strategic intent to enhance India’s manufacturing capabilities. Additionally, he mentioned the importance of maintaining policy stability and predictability as India aspires to become a global manufacturing hub. Recent steps, such as cuts in direct and indirect taxes and interest rate reductions, are expected to stimulate domestic demand further.
Challenges and Opportunities in the Automotive Sector
Despite the optimistic outlook, Takeuchi acknowledged the challenges facing the automotive sector, particularly the impact of U.S. tariffs on India’s auto component exports, which are projected to reach $523 billion by 2024-25. He expressed hope that the Indian government would address these concerns, noting ongoing positive dialogues between India and the U.S. Takeuchi also pointed to the global disruptions caused by the COVID-19 pandemic and other supply chain crises as opportunities for India to establish itself as a reliable and sustainable manufacturing hub.
Future Prospects for India’s Automotive Market
Takeuchi expressed confidence in the future of India’s automotive market, which is already the third-largest in the world. He predicted that auto component exports could more than double by 2030. A significant indicator of India’s growing stature in the global supply chain is Suzuki Motor Corporation’s decision to make India the production hub for its first global electric vehicle, the e-VITARA, which will be exported to over 100 countries. Concluding his remarks, Takeuchi stated that by combining strategic intent with India’s unique advantages, the country could become a trusted partner in the automotive supply chain, driving towards the vision of a developed India.
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