Osamu Suzuki (1930 - 2024)

Suzuki will be remembered for his big bet on India, his obsession with cost control and for proving that with the right vision, even small companies could achieve outsized success.

Published On Dec 30, 2024 08:19:00 PM

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My first car was a Maruti 800, as it was for millions of Indians who discovered the joys of driving with this wonder car. This little marvel not only revolutionised personal mobility but also laid the foundation for India’s automotive revolution, putting an entire subcontinent on wheels. The Maruti 800 is the most iconic symbol of the legacy of Osamu Suzuki, who recently passed away at 94. The company announced that Suzuki died on December 25 after a battle with malignant lymphoma.

Maruti: Suzuki’s Defining Gamble

For us in India, Suzuki is synonymous with the Maruti story, which is well documented and extensively written about. It’s a saga of twists and turns, chance and intrigue, worthy of a Netflix series. There are many protagonists in the story: Sanjay Gandhi, who died in an air crash; his Prime Minister mother, who wanted to build a national car company in his memory; and brilliant IAS officers like V Krishnamurthy and RC Bhargava, who made her dream a reality. But the main hero of this blockbuster has to be Osamu Suzuki, and the most defining gamble of his long career was taking a punt on India when the market was anything but certain. In 1982, he signed a joint venture with the Indian government to create Maruti Udyog Ltd, a move that most global automakers considered risky. They had shied away from India’s closed economy, with its nascent auto industry. But Suzuki’s belief in the potential of the 800, a compact, affordable and efficient car for the Indian middle class, proved prescient.

The Maruti 800, launched in 1983, became a symbol of aspiration for millions of Indians and the cornerstone of the country’s burgeoning automotive industry. Today, Maruti Suzuki dominates the Indian market, has a market share of over 40 percent, and has produced over 25 million cars. This unprecedented success cemented Suzuki’s reputation as a visionary who could see opportunities where others only saw obstacles.

Osamu Suzuki’s defining moment was bringing the Maruti 800 to India.

With the passing of Osamu Suzuki, the automotive world has lost one of its most enduring and enigmatic figures. Despite his ripe old age, Suzuki’s death comes as a shock to many, given his seemingly perpetual presence and the indefatigable energy he brought to the company that bears his name. In his final years, Suzuki lost the ability to speak and could only communicate through writing. Even that didn’t stop him from jetting between Japan and India – a routine of his for over four decades. In fact, his last trip to India was as recent as July, when he travelled to celebrate RC Bhargava’s 90th birthday. Suzuki considered Bhargava not just a trusted colleague but a brother, and it was this decades-long, unshakeable bond between the two that has proved so important in securing the stability and continuity of leadership at Maruti Suzuki.

A Long Life of Hard Work

In the history of the automotive industry, only a select few – legendary leaders like Henry Ford, and Ferdinand Piech – have wielded direct or indirect control over their companies for as long as Osamu Suzuki. Suzuki outlived many of his top executives and the mantra for his longevity was work, work and more work, with sips of green tea in between.

When questioned about how long he intended to stay with the company, he would famously respond with quips like "forever" or "until the day I die". Suzuki also referred to himself as a "lifelong non-retiree”, underscoring his belief in the value of continuous work.

His passing marks the end of an era for Suzuki Motor Corporation, which he steered for four decades, transforming it from a modest motorcycle maker into a global automotive powerhouse.

In the lead-up to his 94th birthday, Osamu Suzuki celebrated his induction into one of the world’s most honourable automotive clubs, The Motoring Hall of Fame.

Osamu Suzuki’s doggedness, determination and legendary focus on cost control were deeply rooted in his formative years. Growing up in post-war Japan, he witnessed first-hand the devastation of a shattered economy and a society struggling to rebuild. This era of scarcity and hardship instilled in him the values of frugality and resourcefulness that became hallmarks of his leadership style. As a teenager navigating a ravaged Japan, he developed the resilience and grit that would define his character and career. In a rare interview in 2015, and possibly his last with an Indian media house, Suzuki told Autocar India about his early life: “I know what Japan was before World War II. In those days, the highway between Osaka and Nagoya was not paved. There were poor people, too. So for me, I know what hardship people have gone through, and when I see poor people in India, I can understand [them].”

In fact, Suzuki said he has been to India “over 200 times”, starting from the time the factory was being built. “I would personally check the concrete on my factory floor and everything myself,” he said. Suzuki’s hands-on working style came from his humble beginnings with the company.

Osamu Suzuki, born Osamu Matsuda, began his journey at Suzuki Motor Corporation in 1958, starting at a junior level. When he married Shoko Suzuki, the granddaughter of the company’s founder, he adopted the Suzuki family name – a practice not uncommon in Japan, especially among families seeking to preserve their lineage in business. This symbolic gesture marked the beginning of his lifelong association with the Suzuki Motor Corporation, where he worked his way up through the ranks, learning the intricacies of the business from the ground up on his way to becoming president in 1978.

The God of Cost

Suzuki’s early experience with motorbikes, which involved working with small, intricate parts, provided him with an invaluable understanding of compact engineering. This expertise laid the foundation for his success in the small car segment, where his attention to detail and cost efficiency became key differentiators.

“The two-wheeler experience definitely came in handy. Even the two-wheeler supplier base came in handy when developing the cars,” Suzuki said in his interview.

It was this grounding that enabled Suzuki to create vehicles that were not only affordable but also highly reliable – a combination that proved unbeatable in the Indian market.

Central to Suzuki’s success was his legendary focus on cost efficiency, which was almost an obsession with him. His mastery of lean operations and low-cost manufacturing became the blueprint for success in emerging and highly price-sensitive markets like India, where his approach allowed his company to win whilst other global giants faltered.

His drive to keep reducing costs was legendary, and he had a beady eye for cutting unnecessary expenses and eliminating frills. Suzuki famously toured factories overseeing cost-cutting campaigns, and made suggestions to open holes in factory roofs to let in natural light to save on electricity, or to lower the height of the factory ceilings to make the air-conditioning more cost effective. If he saw the lights on in an empty meeting room, he would switch them off. Once, after a visit to the Maruti-Suzuki HQ in Delhi, the admin team started collecting staplers from employees' desks. Why? Because Suzuki san said you don’t need more than one stapler for every five desks!

At an ACMA conference in 2015, component suppliers accused Suzuki of squeezing them too much on costs, which, they complained, was affecting quality. Suzuki reacted angrily to this allegeation and told Autocar India in his interview, “Whoever said that is not fit to manage any company! The key to making a small car is to make a success of the concept of a minimum standard for cost and quality. Besides ‘Make in India’, you also require ‘Quality in India’ and ‘Cost in India’. The person who told you this must have heard about ‘Make in India’ and ‘Quality in India’ but must have fallen asleep when I spoke about ‘Cost in India’!

“When you make small vehicles, the profit on them is also small. The total value of the car is also less. But this is precisely the challenge one must take. If you do not take up this challenge, there are only two options – you either get into manufacturing bigger vehicles, or you manufacture a vehicle like the Nano.” Suzuki has always felt the Nano was compromised and never considered it a proper car.

Suzuki had a larger-than-life personality that often cast a shadow over his successors, including his son, Toshihiro Suzuki. For years, Toshihiro operated in quiet deference to his father. On the sidelines of the 2016 Auto Expo in Delhi, I asked him what it was like being Osamu’s son? “Very difficult,” he said with a smile. Continuing with the small talk, I said I marvelled at his father’s energy and sharp mind, and asked him what he ate. “People!” he quipped. His son may not have the same feisty personality of his father, but he certainly has his sense of humour!

Master Strategist

Osamu Suzuki was a master strategist when it came to alliances, using partnerships to propel Suzuki Motor Corporation forward while fiercely protecting its independence. Over the years, he struck deals with automotive giants like General Motors, Fiat and Volkswagen, leveraging these alliances to gain access to technology and global markets. However, Suzuki’s fiercely independent streak often made him a tricky partner. His partnership with Volkswagen, for instance, quickly soured after disagreements over control and autonomy, culminating in a highly publicised legal battle that ended with Suzuki regaining its shares and walking away unscathed. Similarly, Suzuki outmaneuvered General Motors, ending the alliance on his terms after extracting significant benefits. Suzuki also did what no automaker has ever done – get into a big confrontation with the Indian government, Suzuki’s joint-venture partner.

Suzuki’s fiercely independent streak often made him a tricky partner. His partnership with Volkswagen soured after disagreements over control and autonomy.

In the mid-1990s, tensions escalated over management control and strategic decisions. The situation reached a peak in 1997 when Suzuki accused the Indian government of breaching their agreement, leading to a public dispute. Suzuki went so far as to withhold new models and technology transfers to Maruti until the conflict was resolved. While these collaborations often ended in messy divorces, Suzuki’s ability to emerge stronger from each one underscored his shrewdness as a negotiator.

In his later years, Osamu Suzuki recognised the changes sweeping the automotive industry with electrification, and realised that collaboration and consolidation was imperative for survival. Though fiercely independent, he knew he had to align with a larger automaker. This led to a significant partnership with Toyota Motor Corporation, a company with which Suzuki shared deep historical and personal ties. Osamu Suzuki and the late Shoichiro Toyoda, who was honorary chairman of Toyota till his death in 2023, shared a close relationship built on mutual respect. In fact, in the 1970s, Toyota bailed out Suzuki by providing engines to meet stringent new emissions norms that came into effect overnight. It was something Osamu never forgot.

Suzuki knew he eventually had to align with a larger automaker and did so with Toyota Motor Corporation.

With his passing, there is speculation about Suzuki's future. Will it become another Toyota company?

As we have seen with the recent announcement of the Nissan-Honda merger, the Japanese auto industry is undergoing massive consolidation to survive the onslaught of Chinese competition. Osamu Suzuki’s ability to balance independence and collaboration is a testament to his shrewd leadership. He will be remembered as a leader who defied conventions, outlived challenges, and proved that being small does not preclude being mighty.

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