INDIA: Suzuki chairman’s concern over falling sales
Suzuki chairman Osamu Suzuki is making a lightning visit to his company’s operations in India this week because he is concerned about its falling market share and declining profits.
The Japanese carmaker owns a majority 54% stake in Maruti Suzuki. The chairman will attend the upcoming board meeting this Friday and is expected to ask Maruti executives to get their act together.
This is the first time in almost five years that Suzuki has attended one of Maruti's quarterly board meetings. Normally, the 82 year old chairman sends a representative.
Maruti has been troubled by persistent labour problems at its Manesar factories that make the Swift hatchback and Dzire sedan. It has also faced stiff competition from new, locally produced small cars from Volkswagen, Ford, Toyota and Nissan.
Maruti accounts for almost 40% of Suzuki's global sales and almost a quarter of its revenues. Since 2007-08, Maruti sales in India have exceeded Suzuki's sales in its own home market in Japan.