Next many decades belong to India: Maruti Suzuki MD&CEO

The coming decades belong to India as the next global economic powerhouse, and the country must continue to demonstrate policy stability as it aspires to become the world’s manufacturing hub, Maruti Suzuki India MD and CEO Hisashi Takeuchi said on Friday.

Amid a turbulent global geopolitical and economic environment lies an extraordinary opportunity for India to position itself as a trusted, resilient, and sustainable manufacturing hub, he said while addressing the annual convention of the Automotive Component Manufacturers Association of India (ACMA). “When we look back at history, every few decades a new nation rises as an economic powerhouse,” Takeuchi noted, citing the United States, Europe, Japan, and the Asian Tigers (Hong Kong, Singapore, South Korea, and Taiwan) as examples from the 20th century.

“The last three decades have belonged to China, which became the factory of the world. Now, the next many decades belong to India,” he asserted. He highlighted India’s strengths, including the world’s largest working-age population, a rapidly growing $4-trillion economy, proactive government support, and the “spirit of resilience and deep sense of innovation” of its people. Drawing parallels with Japan’s post - World War II growth, Takeuchi said: “The Japanese government supported its industries, enabling the nation to become an economic powerhouse. In India too, I see similarities. The government has reduced corporate tax, launched bold initiatives like the PLI scheme, and rolled out programmes such as Make in India.”

He added: “Recent steps such as reducing both direct and indirect taxes and accelerated interest rate cuts to stimulate domestic demand will eventually boost the manufacturing sector.” These actions, he said, reflected the government’s clear commitment to industry. “At the same time, as India aspires to be a global manufacturing hub, it will be important to continue demonstrating policy stability and predictability,” Takeuchi emphasized. Citing recent global disruptions including the COVID-19 pandemic, trade tensions, and supply chain shocks like the Suez Canal blockage he said, “What we once took for granted (supply chains) became critical. Yet, in this turbulence lies an extraordinary opportunity for India to position itself as a trusted, resilient, and sustainable manufacturing hub.”

For some, these disruptions were setbacks. But for India, Takeuchi said, they represent a chance to “rewrite the future.” Referring to tariffs imposed on Indian goods by the US, he noted: “Almost 30% of auto component exports go to the US. About half now faces a duty of 25%, and the other half 50% a major challenge for the industry. The positive part is that the government is sensitive to this issue, and hopefully, some solution will be found. Some positive statements from both countries have also emerged.”

Takeuchi said while India’s broader economic outlook is promising, the auto industry looks even more so. The country is already the world’s third-largest automobile market, and auto component exports crossed USD 52.3 billion in FY 2024–25, a figure that could more than double by 2030. “India is seen as the global manufacturing hub, and the world is noticing,” he said, pointing to Suzuki Motor Corporation’s decision to make India the production hub for its first global electric vehicle, the e-VITARA, which will be exported to over 100 countries.

He emphasized the need to diversify and avoid overdependence on a single market. “This is our chance to make India not just a participant, but a leader in the global automobile supply chain,” he said. “If we combine strategic intent with India’s unique advantages of domestic demand, talent, and policy support, the possibilities for growth are limitless,” Takeuchi added. Asserting that India will be the world’s trusted partner in the automotive supply chain, he concluded: “We will drive together towards the vision of a Viksit Bharat.”