The auto sector will see an oligopoly of sorts
What will the future be like? I'm confident for one that the auto industry will grow. Out of a total global population of six billion, less than a billion enjoy the benefit of an automobile. Five billion people are waiting to own one. In such a situation, the auto industry can't but have a bright future.
But I don't merely see a quantitative growth of the automobile sector. It will see enduring qualitative changes. Competition will grow and to come to terms with it, industries will integrate globally. We've already seen this happen to national economies which have been subsumed within larger regional conglomerates. Physical boundaries have become subordinate to economic demands. Finally, all automobile alliances will merge into four or five groups which will be the driving force of the new millennium.
There is another reason why this integration will happen; petrol is not a limitless source. The auto industry can produce cars; it can't ensure the availability of petrol. So there will be a search for a new power unit, a very expensive search. By some calculations, the total development cost of this alternate energy source could be as much as 10 times the US annual budget. No single company can afford such a cost. Hence, they'll merge to share costs.
Paradoxically, even as firms form alliances to become bigger, there will be new emphasis on local needs. A basic car model will be developed for global use but it will have many derivatives to suit the specific requirements of different markets. Such a harmony between global scales and local needs will be made possible by the revolution in information technology.
And yet, this technologically-unified world will need a common vision. Technical and financial tie-ups can easily be made but won't work till they overcome the gap of perceptions. There is the American way of thinking and, as some people say, the Asian way of thinking, and the two are different and may create difficulties. But such hurdles can be overcome by achieving a 'common mind' for better customer service, efficient management, cost reduction and improvement in quality.
The car of the new millennium will use new materials-light, tough, recyclable. These will give it a much longer life and efficiency. Cars, like computers, will become easily upgradable. They could also be fitted with the automatic car control system by which the driver will just navigate. This means that the car of the future would be like a working space. Engines will last longer, thanks to a lower rpm. Above all, they'll become cheaper.
The industry will have no option but to adopt eco-friendly technologies. Indeed, it will have to make an effort to upgrade the environment. Industry will have to develop user-friendly small cars which consume less energy, material and space. Also, there will be a clear role-sharing between long-distance transportation and short-distance mobility. Cars will be short-distance transport in cities. Shinkansen (bullet train) will help in mass transportation. This will become a distinctive phenomenon.
A new century on the move will have a new overriding symbol-the small car. In other words, the 21st century will forge a path which Suzuki has already travelled. That is why our slogan today is: "Small car for a big future". Suzuki sees the potential of the future within its grasp. This is particularly so because of the strategic alliances it has formed. For instance, General Motors, which is its partner, is leading the development of the new power unit. Suzuki is globally respected for its technological abilities in the small-car segment. The combination is an unbeatable formula for providing the best services to the customer.
In fact, it sees the emergence of the customer as the Real God of the 21st century. No amount of technology can substitute the need of a manufacturer to establish a direct rapport with the customer. Human life is precious. For any product to be truly successful, it has to add value to human life. A car, whatever may be the century, is only as good as its ability to service human need.
(President & CEO, Suzuki Motor Corporation)