Maruti appoints Kenichi Ayukawa MD and CEO

Ayukawa, who takes over from Shinzo Nakanishi, would head operations in India from 1 April, 2013

India’s largest car maker Maruti Suzuki India Limited (MSIL), today appointed Kenichi Ayukawa as the new managing director (MD) and chief executive officer (CEO).

He replaces Shinzo Nakanishi with effect from April 1, on the latter having attained the age of retirement, the company said.

The changes were decided at a board meeting today, attended by Suzuki Motor Corporation (SMC) Chairman Osamu Suzuki.

A graduate in law from Osaka University, Ayukawa has been associated with Suzuki Motor Corporation for over three decades. He spearheaded operations for the Japanese auto major in Pakistan (2004) and has previously served as the treasurer of SMC’s American operations (1997). In 2008, he was appointed deputy executive general manager in charge of global marketing. He has also served as a director on the board of Maruti Suzuki.

Ayukawa takes over at a time when a series of labour unrest over two years at MSIL’s facility in Manesar, Haryana, has wiped off nearly seven percentage points from the company’s share in passenger vehicle sales. Despite the success of new launches Ertiga, the sub-4 metre DZire and premium hatchback Swift, the company has been finding it tough to grow sales in the sluggish domestic market.

Nakanishi, who played a significant role in the formative years of Maruti Udyog Limited in the early 1980s,  steered Maruti Suzuki for six years . He has served in various capacities including as chairman when Jagdish Khattar was the MD. He was appointed MD & CEO in Decmeber 2007. His tenure was extended in 2010 for three years.

He first came to be known in the 1990s, when the government and SMC waged a bruising battle for control of the joint venture company. Soon after the dispute was resolved, he retreated again into the shadows, only to emerge again towards the end of 2004, when misgivings gained ground between the two partners over fresh investments in the company. Nakanishi is not known to have taken credit for the resolutions, both of which saw Suzuki emerging stronger in the tie-up. He authored the new ‘Joint Venture Agreement’ between Suzuki and the government in early 2006.

Nakanishi has kept such a low profile, especially in India, that few know he is related to Osamu Suzuki. In his long years with Suzuki, Nakanishi has served as the group’s key guy in markets like China, Indonesia, Hungary, Pakistan and East Asia.