In terms of future growth, India stands in a unique position, asserted RC Bhargava, Chairman of Maruti Suzuki India, during an event on Monday. The veteran industry leader emphasized the importance of shedding outdated laws, regulations, and practices as a crucial step for the country to progress. In his perspective, clearing this old baggage is essential for India to leverage its potential for future development.
He says,
“I can’t see any country in the world today which has better prospects for the future than India has,” Bhargava said here when asked about the future of the country. He noted that the Western countries have reached a certain level where growth is now a dicey matter. “Whether they grow or they’re getting into recession and things. People have lost that ethos of working. People want a much more luxurious kind of life. They want good things to come without working,” Bhargava said.
Conversely, in India, individuals aspire not only to enhance their future but also to uplift the prospects of their families and children, asserted Bhargava. He highlighted the prevailing determination and ambition among the people, emphasizing that this drive is a potent force propelling India forward—a characteristic shared by very few countries.
Baggage from the Past:
RC Bhargava underscores the imperative for India to shed the accumulated baggage of the past 60 years, hindering its economic trajectory. This entails not only a reevaluation of laws and regulations but a fundamental shift in how the bureaucracy operates. Bhargava emphasizes the time-consuming nature of this process, noting the entrenchment of these issues in the system. He specifically mentions this challenge when asked about the possibility of the Indian economy reaching the USD 30 trillion mark by 2047.
Realizing India’s Economic Potential:
Despite having all the necessary elements for rapid economic growth, India faced a prolonged delay in realizing its potential, according to Bhargava. However, a significant shift occurred over the last decade, marked by transformative changes in the entire system. Bhargava contends that the removal of historical constraints is a pivotal reason for the world’s growing optimism about India’s economic future. The perception now is that individuals and businesses have fewer hindrances, creating an environment conducive to realizing the nation’s full potential.
When addressing about Maruti Suzuki, Bhargava remarked that the automaker has consistently embraced a financially conservative management style. He states,
“We have been able to finance our growth from the original 1 lakh cars to 22 lakh cars, which is about 21 times our original capacity, all from resources generated internally. ”
The company has relied on internal resources thus far to meet its capital requirements for expanding the business. Bhargava further adds,
“We will double this (production capacity) to 4 million again without raising money from anybody. We don’t go to banks, we don’t go to the stock market. We don’t go anywhere for money. And with all that we’ve done till now, we have ₹50,000 crore of cash reserves,” he noted. “So it’s not that companies cannot have money, it’s the style of management which makes the difference.
Maruti Suzuki’s Potential Leap into EVs
Amidst the road of automotive evolution, snippets from RC Bhargava’s recent interview may point to a notable shift by Maruti Suzuki into the realm of electric vehicles (EVs). With a robust market share that surged by 20% in 2023, making it to a huge 41.7% share, and over 20 lakh cars sold, Maruti Suzuki appears set for a transformative journey. The company’s ambitious roadmap outlines the launch of six new EVs by 2031, with the first electric marvel anticipated to debut in the Indian market in 2024. Confirmed models include the eagerly awaited eVX, alongside the Hustler, WagonR EV, and Fronx EV. While not official declarations, Bhargava’s statements hint at a potential EV venture, propelling Maruti Suzuki to make its name into the market of electric mobility.
FINAL THOUGHTS
In summary, RC Bhargava’s insights highlight India’s promising future growth, stressing the importance of leaving behind outdated norms. His optimism arises from the unique drive in India, where people aspire not only for personal progress but also for their families. Bhargava’s call to address historical challenges aligns with Maruti Suzuki’s financially cautious approach, demonstrated by the company’s impressive growth using internal resources. The potential for Maruti Suzuki to venture into electric vehicles adds an intriguing aspect to its future plans. As the automotive landscape evolves, it will be interesting to see what lies ahead for Maruti Suzuki in India.
