Maruti MD Says Customers Are Demanding More Technology In Cars

Cars are getting tech-heavy, and the Indian consumer wants even more. And so, the automobile industry needs to step up to this demand – that is the message from Hisashi Takeuchi, the Managing Director of Maruti Suzuki India. Takeuchi said that the Indian industry is undergoing a transformative change, with customers now expecting more in their cars. More safety, convenience, comfort; and technology is the enabler driving this change.

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Takeuchi says, “Customers are seeking feature-loaded, technology-driven experiences. This shift is leading to a significant increase in the penetration of electronics within our vehicles. Our challenge is to develop and offer these new-age technologies at prices that are affordable for the Indian market.” And therein lies an opportunity for the industry – traditional automakers and their suppliers, as well as the tech companies that have also now entered the automotive supply chain. The clincher is to be able to find solutions that also keep costs in check. The price sensitivity of the Indian market is well documented, but it is increasingly being transposed with a sense of value consciousness rather than simply lower prices.

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That said, innovations that drive cost-effective solutions to the above-mentioned requirement are what would reap benefits according to players like Maruti, that compete fiercely on price. And they also offer potential opportunities outside Indian manufacturing.

Rahul Kapur, Partner - Grant Thornton Bharat told Acko Drive, “The growth opportunities for Indian tech companies in the automotive sector are immense, driven by advancements in areas like ADAS, connected cars, electrification, and cybersecurity. Indian suppliers can leverage their expertise and cost competitiveness to become indispensable partners to global OEMs by focusing on R&D, localising technologies, and addressing local challenges. Suppliers are well-positioned to meet global standards and demands.”

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The other area being watched closely is the government’s India Semiconductor Mission for making the much-needed component in modern vehicles right here in India. Both areas must remain in key focus for the industry according to the Maruti MD. He says, “The key lies in innovation. Finding ways to integrate advanced features without compromising on cost-effectiveness. We must invest in R&D, leverage our understanding of local market dynamics, and collaborate across the value chain to achieve this balance. We must develop a robust local ecosystem for the electronics industry to become truly self-reliant.”