India Well-Positioned to Become Trusted Auto Supply Chain Hub, Says Maruti Suzuki CEO

India is well-positioned to emerge as a trusted manufacturing and supply chain hub within the global automotive ecosystem, according to Maruti Suzuki India Limited Managing Director and CEO Hisashi Takeuchi.

Speaking at the annual session of the Automotive Component Manufacturers Association of India (ACMA), Takeuchi noted that cost is no longer the sole priority in the industry. He stated that reliability and operational continuity have become equally vital considerations as global supply chains undergo reconfiguration.

To strengthen the industry's competitiveness, Takeuchi outlined four key enablers: deep localisation, people, collective learning, and technology. He mentioned that conditions for deeper localisation are currently favourable, supported by government policy measures that have helped build capabilities in critical areas and reduce strategic dependencies.

The CEO also highlighted that India's export potential continues to strengthen, creating opportunities for scale and justifying investments in localisation, including advanced technologies. However, he stressed that competitiveness is an ecosystem phenomenon rather than an individual company achievement.

"Unless our Tier-2 and Tier-3 suppliers are capable, we can't produce world-class quality," Takeuchi said, adding that the industry must extend its focus beyond immediate operations to include secondary and tertiary suppliers.

Addressing the challenges of digitalisation, Takeuchi called for a heightened focus on cybersecurity. He noted that as hackers become more sophisticated, organisations must stay ahead by continuously strengthening their systems and maintaining robust contingency plans to resume operations quickly in the event of a disruption.

Additionally, Takeuchi urged companies to shift their perspective on human resources. Rather than viewing people primarily as a cost reflected in the profit and loss account, he suggested treating them as balance sheet assets. Organisations that invest in people, he noted, are better positioned to attract and retain talent in an increasingly competitive environment.

"The evolving global supply chain landscape presents a massive opportunity for the Indian manufacturing sector, particularly for automotive component makers and suppliers. As highlighted by Maruti Suzuki's leadership, moving beyond cost efficiency to prioritize reliability, quality, and robust supplier ecosystems across Tier-2 and Tier-3 levels will be essential for long-term competitiveness. For startups and businesses entering this space, focusing on deep localization, technology integration, and human capital as strategic assets rather than mere expenses will define sustainable growth in the coming decade." — Dr. Shishir Gupta, Founder & CEO, StartupLanes