Maruti Suzuki prioritises localisation, alternate sourcing amid global supply-chain risks

Maruti Suzuki will prioritise localisation, alternate sourcing and supplier capability development as geopolitical uncertainty and the concentration of critical automotive supply chains in a few countries increase risks for the industry.

In the annual report for FY26, Managing Director and CEO Hisashi Takeuchi said the growing use of advanced technologies was increasing the industry’s dependence on specialised materials, semiconductors, batteries and electronic components.

Supply chains for many of these items remain concentrated in a limited number of countries, increasing the automotive industry’s exposure to disruptions.

Takeuchi said recent geopolitical developments, including the conflict in West Asia, had highlighted the vulnerability of global supply chains and reinforced the need to balance efficiency with resilience.

“Localisation, alternate sourcing, supplier capability development and ecosystem development remain critical priorities,” Takeuchi said in his message to shareholders.

Takeuchi said these measures were intended to address immediate supply risks while supporting the development of a stronger domestic automotive ecosystem.

Maruti Suzuki is extending its focus beyond its own manufacturing operations to suppliers and dealer partners. During FY2026, the company assessed human-resource systems and human-rights practices at local Tier 1 suppliers accounting for 84 percent of its component purchases by value.

It also conducted more than 2,550 training programmes covering all Tier 1 suppliers and dealer partners during the year. The company continued to promote occupational health and safety, skill development and governance standards across its ecosystem.

Maruti Suzuki conducted more than 470 supplier assessments and awareness programmes relating to the management of substances of concern. It also extended a governance framework across its Tier 1 supplier base to strengthen transparency, risk management and ethical conduct.

The supplier initiatives come as greater use of semiconductors, batteries, electronics and specialised materials makes access to reliable supply chains increasingly important for new vehicle programmes.

Takeuchi said the objective was not merely to mitigate risk, but to strengthen India’s long-term competitiveness in future mobility technologies.