Maruti Tangle

LETTERS TO THE EDITOR

The Suzuki Motor Corporation(SMC)-government of India imbroglio seems to be thawing at last. The SMC was the first one to hold out the olive branch. Now the ball is in the governments court. At this crucial juncture, any delay on the governments part in settling the dispute can be detrimental to Marutis health. With hordes of cars set to be launched on Indian roads, the competition is going to be stiff in the days to come.

At present, Maruti enjoys a near monopoly in the Indian car market. But if the contentious issues of transfer of technology and royalty are not resolved and the dispute is not settled amicably once and for all, Maruti faces a bleak future.

 

Most of the cars set for launch are in the small and medium-sized category. Maruti has to incorporate technology changes to forestall competition and this technology comes from SMC. No doubt there will be others waiting to step into Suzukis shoes but it isnt that easy and takes time. We dont need to look far to see what warring partners can do to a company, the example of PAL-Peugeot is there for everyone to see.