Maruti Suzuki is open to forming partnerships with auto part makers to secure its future supply chain and maintain its leadership position, the chairman of India's top-selling carmaker said in an interview. Partnering with suppliers in its early years contributed significantly to Maruti's success in India, where it has 43% share of the car market, and also helped establish a supply chain for combustion engine cars, R C Bhargava told Reuters. With growing demand for more technology in cars and a shift to 'greener' powertrains like electric and hybrid, automotive supply chains globally are changing and need large investments to keep pace.
Maruti Suzuki India Ltd, the country's top carmaker, said on Wednesday rising raw material costs had eaten into its margins despite more sales at higher prices, hurting quarterly profit which came in below analyst estimates. Maruti recorded a profit of 10.13 billion rupees ($126.79 million) for the quarter that ended on June 30, compared with 4.41 billion rupees a year ago when production was hampered by COVID-19-related disruptions. "The increase in prices of commodities adversely impacted the operating profit ... the company was forced to increase prices of vehicles to partially offset this impact," Maruti said in a statement.
India's top-selling carmaker, Maruti Suzuki, believes the government will show support for "green" car technology beyond full electric vehicles (EVs), such as hybrid, if it benefited the country, the company's chief executive said. The comments come after Maruti unveiled its first strong hybrid car in India, the Grand Vitara sport-utility vehicle (SUV), seen as key to helping recover ground lost to competitors such as Hyundai Motor and Kia Motor.