How Osamu Suzuki's vision drove Maruti Suzuki to revolutionise Indian mobility

During one of his early visits to India in the 1980s, Osamu Suzuki, the then chairman of Suzuki Motor Corporation, surprised everyone when he chose to have dinner at the modest home of a Maruti Udyog employee. The employee, who was part of the local manufacturing team, had invited Suzuki during a casual interaction, never expecting the head of Suzuki Motor Corporation actually to accept the invitation.

Suzuki not only attended but insisted on eating the traditional Indian meal prepared by the employee’s family, sitting cross-legged on the floor. He expressed gratitude for the warm hospitality and remarked on the importance of understanding Indian culture and its people to succeed in the country.

This incident showed Suzuki’s commitment to India and a large part of the credit for making Maruti Suzuki the largest car maker in the country goes to his vision. Suzuki passed away on Wednesday at the age of 94.

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Origins of joint venture

In the late 1970s and early 1980s, India struggled with a lack of affordable, efficient cars. The market was dominated by outdated models like the Hindustan Ambassador and Premier Padmini, which were costly and unsuitable for the growing middle class. Recognising this gap, the Indian government established a state-owned car company, Maruti Udyog Limited, in 1981, naming it after Prime Minister Indira Gandhi’s son, Sanjay Gandhi, who had championed the idea of a “people’s car.”

Initially, the government sought a foreign partner to provide technology and expertise. Major global players like Volkswagen and Toyota showed interest but hesitated due to India’s restrictive policies, including limited foreign equity stakes and rigid bureaucratic oversight. Suzuki, however, saw this as a golden opportunity. For Suzuki, India represented a potential market and a chance to leapfrog larger competitors in the global automotive race.

However, Suzuki was a relatively small player in the global automotive market then and faced scepticism from Indian officials. Larger companies were expected to win the bid. However, Osamu Suzuki's bold pitch—focusing on affordable, compact cars ideally suited for Indian roads—struck.

This led to Suzuki Motor Corporation and the Indian Government holding a series of discussions on setting up a joint venture. The turning point in the negotiations came when Suzuki demonstrated its commitment by agreeing to the government’s demands for localisation. Suzuki promised to manufacture cars in India and develop a local supply chain to reduce reliance on imports. This aligned with India’s goals of self-reliance and job creation.

The joint venture was formalised in 1982, with Suzuki holding a 26 per cent stake that eventually increased to 40 per cent by 1987 and later to a majority stake by 2003. The first car, the Maruti 800, rolled out in 1983, becoming an instant success and a symbol of aspiration for millions of Indians.

Also read: Maruti to set up second manufacturing unit in Gujarat: Toshihiro Suzuki

Maruti 800: ‘Sasta aur achha’

Osamu Suzuki was deeply involved in developing and rolling out the Maruti 800, which was to be India’s first affordable car. On one of his visits to the Gurgaon plant before the car’s launch, Suzuki asked for a test drive. The engineers were nervous—this wasn’t just any test driver, but the company’s head! However, Suzuki calmly drove the car through the dusty roads of Gurgaon, testing its handling and performance.

At the end of the drive, he shared detailed feedback with the team. He surprised Maruti executives using a Hindi phrase, “Sasta aur achha,” which translates to “affordable and good.” He used this phrase to explain his vision for Maruti’s cars in the Indian market.

What stood out was his insistence on ensuring the car was simple enough for any Indian to drive and maintain. He even suggested tweaks to the dashboard's design to make it more intuitive. This hands-on involvement exemplified his attention to detail and his belief in delivering a product that would resonate with Indian consumers.

In a symbolic gesture to understand the challenges of the average Indian commuter, Osamu Suzuki once took a ride in a cycle rickshaw during one of his early trips to Delhi. He reportedly wanted to experience first-hand the transportation challenges that ordinary Indians faced daily. This experience solidified his belief that India needed affordable cars to move its growing middle class from two-wheelers and rickshaws to safer, more comfortable vehicles. His actions underscored his genuine desire to empathise with Indian consumers and solve their problems. They also explain why Suzuki Motor Corporation, under his stewardship, became a household name in India.

Deep understanding of Indian market

One of the primary reasons for the joint venture to thrive was because Suzuki had a deep understanding of the Indian market. Suzuki brought cutting-edge technology, engineering expertise, and a customer-centric approach, while the Indian government provided market access, infrastructure support, and policy backing. Osamu Suzuki’s involvement in smoothing cultural and operational differences played a crucial role in ensuring the success of the partnership.

Also read: Market leader for 40 years, Maruti Suzuki grapples with mid-life crisis

The impact on the Indian market was so dominant that when this correspondent posed a question to the CEO of small car major Daihatsu Motor Company during the Tokyo Motor Show about why the brand had not ventured into the small car market in India, despite its parent company, Toyota, already being a significant player in the country. The CEO candidly admitted that Daihatsu could never hope to compete with Maruti Suzuki’s dominance in the segment.

A few years later, Toyota itself attempted to enter the small car market with the launch of the 1.2-litre hatchback, the Etios Liva. However, the model struggled to gain traction and was eventually discontinued due to a lack of enough buyers. Recognising the challenges, Toyota later partnered with Maruti Suzuki, leveraging the latter’s expertise and market success—achievements made possible by Osamu Suzuki's visionary leadership. Together, they began launching rebadged versions of Suzuki’s successful small cars, a strategy that further cemented Suzuki’s influence in the Indian market.

Transformative partnership

Suzuki Motor Corporation’s partnership with India was transformative not only for Maruti Udyog but also for Suzuki itself. While the company had been a niche player in the global automotive market, the success of Maruti Suzuki propelled it to international prominence. By the early 2000s, Suzuki had become synonymous with compact, efficient vehicles globally. Under Osamu Suzuki’s stewardship, the company diversified its offerings, expanded to new markets, and established itself as a leader in innovation.

Osamu Suzuki, who was awarded the Padma Bhushan in 2007 by the Indian government for his outstanding contribution to the automobile sector, wasn’t an absentee chairman sending orders from Japan. He immersed himself in Maruti’s growth, frequently visiting India, meeting with government officials, and fostering stakeholder relationships. His approach was hands-on yet deeply respectful of India’s unique dynamics. He encouraged localisation—manufacturing cars and sourcing components within India—to bring down costs and make vehicles more affordable. This decision not only made Maruti Suzuki cars accessible to the average Indian but also created an entire ecosystem of suppliers, engineers, and dealerships across the country.

Also read: Maruti 800 marks 40 years: Jairam Ramesh recalls contribution of Indira Gandhi, Rajiv

The Maruti Suzuki story, under his leadership, became a model for how a global company could successfully integrate into an emerging economy.

Even as he stepped down as chairman in 2021, Osamu Suzuki left an enduring legacy behind.