![]() ![]() Not having an Indian as top boss can lead to disconnect with the workers, as Maruti Suzuki learnt the hard way in July 2012, when a mob of workers went on rampage at the Manesar, Haryana, plant, which left a senior HR executive dead and nearly 100 other officials injured. “Western companies, however, gradually align their management and decision making locally, as they enter new markets and geographies,” he said. This culture is not just in the automotive space, but prevails across sectors such as banking, retail, manufacturing, etc. Saket Mehra, partner & Auto Sector leader at Grant Thornton Bharat, told FE that eastern style of management is driven on the principle of centralised decision making, with the most significant decisions falling under the realm of central management. The same is the case with the new entrant Kia India. Hyundai Motor India, which last year celebrated 25 years in India and is the country’s second-largest carmaker after Maruti Suzuki, has always had South Korean top boss. They, however, find it difficult to connect to the grassroots level employees who are the backbone of production,” Prof Dhal said. It mandates the transfer of learning from the parent country to the host country. “Japanese auto companies are renowned for quality and process-driven work. Honda and Toyota, which have been in India for about 25 years, have always had a Japanese as the top boss. Since then (after Khattar retired), top bosses have been Japanese: Shinzo Nakanishi (2007-13), Kenichi Ayukawa (2013-22) and Hisashi Takeuchi (current MD & CEO). In 2006, the government decided to completely exit from Maruti Udyog, effectively turning it into a Japanese company instead of an India-Japan venture. ![]() Till the time the Indian government held a majority stake in Maruti Suzuki India (earlier called Maruti Udyog), the carmaker had an Indian as the top boss. “It’s a mountainous task to balance the company culture and the country culture.” But managing employees, winning their commitment and ensuring productivity can be better facilitated by a CXO who knows the country’s culture, connects to their roots and knows what motivates them,” he said. “Many foreign companies invest in India because of low-cost manpower availability. Manoranjan Dhal from IIM Kozhikode added it is advantageous and advisable that the CXO must be from the host country. “Japanese and Koreans want to keep costs under check, and for that they need to ‘control’ operations strongly,” Tripathy said. It needs someone who can manage the local network smoothly.”Īlso Read | Auto sector outlook positive, but recovery faces risks amid global inflation, possible semiconductor shortageīut mass-market carmakers like Maruti Suzuki or Hyundai need to focus on cost and operations efficiency, so that the end-product is perceived as value for money by the customer. “A BMW, for example, doesn’t need brand building. Preferably a local who can connect better with the dealers,” he said. Their brands are already strong, and so these carmakers need a CXO who has made it big in marketing, sales or dealer development. “People have a life-goal of owning these cars. Leadership experts and industry veterans FE talked to said that having an Indian at the helm can have numerous advantages.Īnshuman Tripathy, faculty at IIM Bangalore, told FE that premium brands such as BMW, Mercedes-Benz and Audi are highly aspirational. CJPT expels Hino for certification testing misconduct ![]()
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