Suzuki Motor Corporation, 1982–2004

Abstract

Suzuki Motor Corporation (SMC) is a case of FDI in the Indian automobile industry. This case is relatively new as compared to the previous two cases that have already been discussed. This chapter discusses the process by which SMC invested in various business functions in India during the period 1982–2004. The analysis involves the study of the nature and timing of investments of the company in its main business and complementary market functions, the manner in which it aligned itself to the requirements of the GOI, the issues of localization of management and ownership and its financial performance in India. The detailed confirmatory statistical analysis of the case, however, is provided in Chapter 7. This case brings out some of the perspectives of long term investment that we saw in the last two cases, throws up a new dimension, especially on the issue of ownership seeking behaviour of firms, and shows how holistic investment perspectives have been relevant in a developing country context even in recent times.