As competition increases, Maruti is looking to reduce its product development timeline by about 12 months
India is currently the third largest car market in the world and remains one of the fastest growing automotive markets globally. While Maruti currently leads with around 40% market share, competition is intensifying on multiple fronts including new brands, models, powertrains and technology platforms.
Another challenge is to achieve shorter product development cycles, as younger consumers are looking for entirely new experiences. Maruti is aware of these factors and is aiming to reduce its product development timelines.
Using AI for rapid product development
Maruti will rely on advanced equipment to speed up its product development process. These will include AI (Artificial Intelligence) and machine learning and simulation-based product testing platforms. Currently, it takes around 48 months for Maruti to reach the production stage for a new model. As competition increases, Maruti aims to reduce new product development time to 36 months.
In the current product development process, a lot of time is spent on physical validation cycles. With AI and machine learning and simulation-based platforms, Maruti can accelerate timelines through virtual verification and digital testing. Any issues can be spotted and fixed faster in a digital environment, reducing development cycles. These tools will ensure that when a new product reaches the prototype stage, there are fewer problems and improvements to address.
Maruti’s focus will be particularly on UVs (utility vehicles), which are registering strong growth. They are also expected to dominate the Indian automotive sector in the coming years. Maruti’s current bestsellers in the region include the Ford Focus, Brezza, Victories and Grand Vitara. Maruti will launch nine new models in the next three years. Seven of these will be SUVs. Maruti will also ensure a wide range of powertrain options such as petrol, flex fuel, hybrid and fully electric variants to suit the varying preferences of consumers.
Involvement of suppliers, partners during product development
Along with the use of advanced AI tools, Maruti will also work closely with its suppliers and partners to reduce product development cycles. Suppliers will be encouraged to participate in areas such as localization, engineering and validation. Instead of the existing sequential processes, Maruti aims to conduct supplier-side activities in parallel with the overall product development cycle.
These will include activities such as manufacturing preparation, component design and tooling. This concurrent approach involving suppliers and partners will help reduce the disruptions typically associated with design errors and defects. Another strategy that Maruti is keen to implement is to increase the level of localization. This will have many benefits including lower costs and reduced dependence on imports.
Maruti is aiming for more than 80% localization. With greater localization, it will be easier for Maruti to increase production to meet the growing demand. This is necessary as Maruti is seeing strong demand not only in the domestic, but also in the global markets. In May, Maruti recorded its highest ever monthly sales of over 1.90 lakh units. Exports were close to 42 thousand units registering a strong double digit growth of 34.26%.
