Maruti Suzuki India Managing Director and CEO Hisashi Takeuchi says the company’s next major challenge is to deepen localisation: strengthen the Indian supplier base so it can support global standards for quality, cost and productivity, while making the business more agile and resilient to disruption. His NDTV interview does not estimate how this strategy could affect car prices.
What Takeuchi means by deep localisation
Localisation is the sourcing or production of components and processes within India rather than relying on supply from other countries. Takeuchi told NDTV that Maruti Suzuki’s early years in India began with few local suppliers, so the company first had to help build a supplier ecosystem. He described deeper localisation as the next stage, linked to the company’s export ambitions and its need to meet global benchmarks for quality, cost and productivity.
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In Takeuchi’s words, “Deep localisation is a key to make the business sustainable, and also resilient to any disruption which we are facing right now.” He also said, “But in order to be competitive and agile for development and resilience to any disruption, we have to improve the localization level.” Both statements were reported by NDTV on October 8, 2026.
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NDTV reported Takeuchi’s figures as more than 400 Tier 1 suppliers and about 1,500 Tier 2 and Tier 3 suppliers. He said these suppliers serve Maruti Suzuki as well as other Indian automakers. The figures are those reported in the interview, not independently audited totals.
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Tier 1 suppliers provide components or systems directly to an automaker; Tier 2 and Tier 3 suppliers feed materials, parts or services into the wider chain. A larger network is not, by itself, proof that every critical input is made locally or that suppliers can meet every requirement. The strategic aim Takeuchi described is to deepen capability as well as expand local sourcing.
Why localisation matters to resilience and competitiveness
Takeuchi cited recurring semiconductor and rare-earth-material shortages, along with oil and gas concerns associated with West Asia, as examples of disruption. When production depends on components or materials sourced across borders, interruptions can affect availability and constrain a manufacturer’s ability to compete, develop products quickly and maintain supply.
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In his account, deeper localisation is intended to improve agility and resilience while supporting competitiveness and sustainability. These are strategic goals, not quantified results: the NDTV interview does not say how much localisation would reduce imports, lower costs, prevent shortages or change disruption frequency.
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What the examples show—and what they do not
Battery electrode localisation
Maruti Suzuki said in an August 2025 announcement that production had begun for its e VITARA and that subsidiary TDSG had achieved electrode-level localisation of lithium-ion battery cells for hybrid electric vehicles. This is a company-reported example of localisation reaching into an electrified-vehicle supply chain. It does not establish that all battery components are localised or indicate a localisation rate for the wider industry.
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Wider industry priorities
Reporting on Takeuchi’s address to the Automotive Component Manufacturers Association of India’s annual session, Moneycontrol described four priorities for the industry’s next phase: deep localisation, people, collective learning and technology. That September 2026 report provides broader industry context; it is separate from the October NDTV interview.
Historical sustainability context
In its FY 2020–21 annual report announcement, Maruti Suzuki discussed efforts across a car’s life cycle, including scrapping, dismantling and recycling, and referred to battery localisation efforts at the time. This is historical company context, not evidence of a measured environmental benefit from current localisation.
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Will deeper localisation change car prices in India?
The available interview gives no price estimate. Local sourcing could form part of a manufacturer’s effort to improve cost competitiveness, but the report does not quantify savings or say whether any change would be passed on to buyers. Actual car prices also reflect factors beyond the location of component production; no specific price outcome can be inferred from Takeuchi’s remarks.
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