1.

INTRODUCTION OF INDUSTRY:

THE CAR
The birth of the car as we know it today occurred over a period of years. It was only in 1885 that
the first real car rolled down on to the streets. The earlier attempts, though successful, were
steam powered road-vehicles.
The first self-propelled car was built by Nicolas Cugnot in 1769 which could attain speeds of up
to 6kms/hour. In 1771 he again designed another steam-driven engine which ran so fast that it
rammed into a wall, recording the worlds first accident.
In 1807 Francois Isaac de Rivaz designed the first internal combustion engine. This was
subsequently used by him to develop the worlds first vehicle to run on such an engine, one that
used a mixture of hydrogen and oxygen to generate energy.
This spawned the birth of a number of designs based on the internal combustion engine in the
early nineteenth century with little or no degree of commercial success. In 1860 thereafter, Jean
Joseph Etienne Lenoir built the first successful two-stroke gas driven engine. In 1862 he again
built an experimental vehicle driven by his gas-engine, which ranat a speed of 3kms/hour. These
cars became popular and by 1865 could be frequently espied on the roads.
The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb
Damlier and Nicolas Otto worked together on the mission till they fell apart. Daimler created his
own engines which he used both for cars and for the first four wheel horseless carriage. In the
meanwhile, unknown to them, Karl Benz, was in the process of creating his own advanced tricycle which proved to be the first true car. This car first saw the light of the day in 1886.
The season of experiments continued across the seas in the United States where Henry Ford
began work on a horseless carriage in 1890. He went several steps forward and in1896,
completed his first car, the Quadricycle in 1896. This was an automobile powered by a two
cylinder gasoline engine. The Ford Motor Company was launched in 1903 and in1908 he
catapulted his vehicle, Model T Ford to the pinnacle of fame. Continuing with his innovations,
he produced this model on a moving assembly line, thus introducing the modern mass production
techniques of the automobile industry. Then onwards, it has been one big journey...on the roads.

 AUTOMOBILE INDUSTRY
India is the second-biggest market for small cars after Japan. It accounts for 60% of the
domestic market.
CURRENT SCENARIO:

India represents one of the largest two-wheeler markets in the world, with an estimated
size of 5.4 million units a year.
India is the two-wheeler capital of Asia with an average of 27 two-wheelers per thousand
people, compared to China's 8 two-wheelers per thousand people.
India became the fastest growing car market in the world in 2004, growth rate of 20%.

OVERVIEW:
Snippets

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.
Passenger vehicles sales crossed the mark of 1 million in 2004-05.
Automobile industry expert predicts that by 2050 every sixth car in the world will be for
Indians.
2/3rd of auto component production is consumed directly by OEMs.

FACTS & FIGURES

It seems that India has finally arrived in the big league of Asian car markets. Steady and
impressive annual growth rate, presence of international automakers, relaxation of foreign
exchange and equity regulations, reduction of tariffs on imports and few others are the
components of its booming auto market. The country has now come to be recognized as a
potential emerging auto market. The perception of foreign investors has changed, everybody
wanting to be here.
For the first time, in the financial year end in 2009, the total sales of passenger vehicles -cars,
utility vehicles and multi-utility vehicles - crossed the one-million mark to touch 1.5 million,
with exports of 336,000 vehicles. Study says that by 2012 India will take over Japan in sales
volumes. And by 2050, Indians will buy every sixth car produced in the world.
Apart from serving the domestic market, the auto sector has turned as a sourcing base for the
global auto majors. The auto component market is also in its full swing. As per the research of
RNCOS, one of the leading industry firms, the Indian automobile component industry is
estimated to triple from USD 63 billion to USD 190 billion within a span of six years by 2012.

 AUTOMOTIVE INDUSTRY IN INDIA

A well developed transport network indicates a well developed economy. For rapid development
a well-developed and well-knit transportation system is essential. As India's transport network is
developing at a fast pace, Indian Automobile Industry is growing too. Also, the Automobile
industry has strong backward and forward linkages and hence provides employment to a large
section of the population. Thus the role of Automobile Industry cannot be overlooked in Indian
Economy. All kinds of vehicles are produced by the Automobile Industry. India Automobile
Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, twowheelers, etc. The industry can be broadly divided into the Car manufacturing, two-wheeler
manufacturing and heavy vehicle manufacturing units.
The automotive industry in India is one of the largest in the world and one of the fastest growing
globally. India's passenger car and commercial vehicle manufacturing industry is the seventh
largest in the world with an annual production of more than 3.7 million units in 2010. According
to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle
producer in the world, growing 16-18 per cent to sell around three million units in the course of
2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind
Japan, South Korea, and Thailand.
As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second
fastest growing automobile market in the world. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than
9 million by 2020. By 2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads.
The major Car manufacturer are Hindustan Motors, Maruti Suzuki India Limited, Fiat India
Private Ltd., Ford India Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd.,
Hyundai Motors India Ltd., Skoda India Private Ltd., Toyota Kirloskar Motor Ltd., to name a
few. The two-wheeler manufacturing is dominated by companies like TVS, Honda Motorcycle
&Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The heavy motors like buses,
trucks, defense vehicles, auto rickshaws and other multi-utility vehicles are manufactured by
Tata-Telco, Ashok Leyland, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.

CARS BY PRICE RANGE:

Under Rs. 3 Lakhs

Alto, Omni
Tata Nano
Hyundai Eon,

Hyundai Eon,i10, i20,

Chevrolet Spark, Beat,
Maruti Alto,Ritz,Swift,AltoK-10,stingray,Eeco
Ford Figo
Toyota Etios Liva
Volkswagen Polo
Tata Indica EV2, Indica Vista, Venture, Indigo eCS
Honda Brio
Nissan Micra
Hindustan Motors Ambassador
Fiat Grande Punto

Chevrolet Tavera
Hyundai i10, i20, Verna
Skoda Rapid
Ford Fiesta,
Fiat Linea
Mahindra Bolero, Verito, Thar, Xylo, Scorpio
Maruti Suzuki Gypsy, New Swift DZire, Swift Dzire, CIAZ
Nissan Sunny
Honda Jazz, City
Volkswagen Vento
Toyota Corolla, Innova, Etios
Tata Sumo, Manza, Winger, Safari

Ford Mondeo, Endeavour

Fiat 500
Mahindra XUV500
Tata Aria, Fortuner,
Toyota Corolla Altis
Volkswagen Jetta, Beetle, Passat

Rs. 3-5 Lakhs

Rs. 5-10 Lakhs

Rs. 10-30 Lakhs

Chevrolet Cruze, Forester, Captiva

Skoda Yeti, Laura, Octavia Classic & Combi, Superb
Honda Civic, Accord, CR-V
Maruti Suzuki Grand Vitara, Kizashi
Hyundai Sonata Transform, Santa Fe,
Mitsubishi Outlander, Pajero
Nissan X-Trail, Teana
BMW 3 Series, X1,
Mercedes Benz C Class,

Audi A6, A8 & TT, Q5, A7, Q7, RS5

Nissan 370Z
BMW X5, 5 Series & 7 Series, X3, Z4, X6, 6 Series, M3
Mercedes Benz E Class, S Class, R Class, SLK, ML, SL & CLSClass, GL
Porsche Boxster, Cayenne, 911 Carrera & Cayman S
Toyota Land Cruiser Prado
Volkswagen Touareg, Phaeton
Misubushi Montero, Lancer Evolution,

BMW M5, M6
Audi R8
Mercedes Benz- G Class, SLS
Porshe Panamera
Lamborghini Gallardo, Murcielago
Bentley Continental GT/GTC, Flying Spur,Arnage, Mulsanne
Rolls Royce Ghost
Ferrari California, 458 Italia

Ferrari 599 GTB Fiorano, FF

Rolls Royce Phantom, Phantom Coupe, Phantom Drophead Coupe,
Bentley Azure
Maybach 57 S, 62

Bugatti Veyron
The segregation is made on Ex-Showroom price of base models.

Rs. 30-100 Lakhs

Rs. 1 3 Crore

Rs. 3 6 Crore

Above 12 Crore

Maruti Suzuki India Limited

Type

Public
BSE: 532500

Traded as

NSE: MARUTI
BSE SENSEX Constituent

Industry

Automotive

Predecessor(s)

Maruti Udyog Limited

Founded

1981

Headquarters

New Delhi, India

Key people

RC Bhargava (Chairman)
Kenichi Ayukawa (CEO & MD)

Products

Automobiles

Revenue

369.34 billion (US$5.9 billion) (2012)

Net income

16.81 billion (US$270 million) (2012)

Employees

6,903 (2011)

Parent

Suzuki

Website

www.marutisuzuki.com

Maruti Suzuki India Limited (/marutt i suzuki/), commonly referred to as Maruti and formerly
known as Maruti .Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of
Japanese automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a
market share of 37% of the Indian passenger car market. Maruti Suzuki manufactures and sells a
complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R,
Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle
Suzuki Ertiga and Sports Utility vehicle Grand Vitara.
The company's headquarters are on Nelson Mandela Road, New Delhi. In February 2012, the
company sold its ten millionth vehicle in India.

The first Maruti 800, based on the Suzuki SS80

History

The old logo of Maruti Suzuki India Limited.

The company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led
government held an initial public offering of 25% of the company in June 2003. As of May 2007,
the government of India sold its complete share to Indian financial institutions and no longer has
any stake in Maruti Udyog.

An old Maruti 800 model

An old Maruti 800 model from the 1980s, still in use as of 2013 in Goa. The Maruti 800 was
popularly referred to as simply "Maruti"

Maruti Alto, introduced in 2000

eir colleagues and launched an online campaign to support their demands.

Products

and

services

Current Automobiles

ALTO 800

SX4

RITZ
SWIFT

ALTO K10

ESTILO

DZIRE

WAGONR

OMNI
Imported automobiles

STINGRAY

Grand Vitara
NEW PRODUCT

CIAZ

Kizashi

CELER
Discontinued automobiles
1. Zen (19932006) Replaced by the Zen Estilo
2. Esteem (19942008) Replaced by the Swift DZire
3. Baleno (19992007) Replaced by the SX4 sedan
4. Baleno Altura (19992003)
5. Versa (20012010) Replaced by the Eeco
6. Alto (2000-2012) Replaced by the Alto 800
7. Zen Estilo (20062013)
Maruti Suzuki sold in India as .

1. 800 (1983) (still distributed to some cities like Guwahati) Competes with Tata Nano, Maruti
Alto and Maruti Omni
2. Omni (Launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800 and Maruti Eeco
3. Gypsy King (launched 1985) India's first indegenious vehicle and first compact SAV,
competes with Mahindra Thar CRDe, Tata Sumo 4x4 and Force Gurkha
4. WagonR (Launched 1999) Competes with Nissan Micra Active, Maruti A-star and Hyundai
i10
5. Swift (Launched 2005) Created a Maruti 800 rivalling benchmark, competes with Tata Vista,
Hyundai i20, Skoda Fabia, Volkswagen Polo and Toyota Etios Liva
6. SX4 (Launched 2007) Soon to be replaced by the upcoming sedan codenamed YL1,
competes with Ford Fiesta, Hyundai Verna, Honda City, Skoda Rapid, Volkswagen Vento,
Renault Scala and Nissan Sunny
7. Swift DZire (Launched 2008) Competes with Mahindra Verito, Toyota Etios, Ford Classic,
Mahindra Verito Vibe, Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza
8. A-star (Launched 2008) Competes with Chevrolet Beat, Nissan Micra Active, Ford Figo and
Maruti Wagon-R Stingray
9. Ritz (Launched 2009) Competes with Maruti Swift, Tata Vista, Hyundai Grand i10, Honda
Brio, Nissan Micra, Renault Pulse and Toyota Etios Liva
10. Eeco (Launched 2010) Stripped down Versa with a lowered roof, in competition with Tata
Venture, Tata Winger Platinum, and in-house Omni
11. Alto K10 (Launched 2010), competes in the economy class with the Tata Indica, Hindustan
Motors Ambassador and Chevrolet Spark
12. Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, in
competition with Toyota Innova, Mahindra Xylo, Nissan Evalia, Ashok Leyland Stile and

Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in
Completely Knock Down car.
13. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport, Mahindra Xylo
Quanto, Nissan Terrano & Renault Duster will be launched in the year 2014
Manufacturing facilities
Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a
combined production capacity of 14, 50,000 vehicles annually. During a recent meeting of the
Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman
had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started
soon.[53] Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres
Gurgaon manufacturing facility
The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread
over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles annually
but productivity improvements have enabled it to manufacture 900,000 vehicles annually. The
Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is
equipped with more than 150 robots, out of which 71 have been developed in-house. The
Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy, and Eeco.
Manesar manufacturing facility

The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The
Manesar Plant produces the A-star, Swift, Swift DZire, SX4, Ertiga and Ritz.
On 25 June June 2012, Haryana State Industries and Infrastructure Development Corporation
demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its

Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead
to further proceedings and vacating the enhanced land acquisition.
Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states
and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and
Maruti Authorised Service Stations) in 1,395 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have
not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help
many stranded vehicles on the highways by sending across their repair man to the vehicle.
Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.

Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and

Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in March
2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBIMaruti Finance is currently available in 166 cities across India.
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank
N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%.GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.
Maruti claims that its finance program offers most competitive interest rates to its customers,
which are lower by 0.25% to 0.5% from the market rates.
Maruti TrueValue
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used
Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help
of this service in India. As of 31 March 2010 there are 341 outlets.

Accessories
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories
to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems,
seat covers and other car care products. These products are sold through dealer outlets 00and
authorized service stations throughout India.

Maruti Driving School

A Maruti Driving School in Bangalore

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behaviour and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
Issues and problems
On 20 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to
fix a fuel leakage problem, for which the company will replace the gaskets.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignment of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki
crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign
currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.
Awards and recognition

The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the
seventh position in 2011 and the sixth position in 2012 among the brands researched in India.
Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car
Company in their Reputation Benchmark Studyconducted for the Auto (Cars) Sector which
launched in April 2012.

The Companys Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet
the need of different customers, both in domestic and export markets. And To provide maximum
value for money to their customers through continuous improvement of products and services.

The Companys Vision:

Internationally competitive Company in terms of our products and services.

The Leader in the India Automobile Industry,
Creating customer Delight and Shareholders Wealth;
A pride of India

The Companys Core Value:

Customer Obsession.
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning

Their focus is on:

Building a continuously improving organization adaptable to quick changes.

Providing value and satisfaction to the customer
Aligning and fully involving all our employees, suppliers and dealers to face
competition
Maximizing Shareholder's value
Being a responsible corporate citizen.

Maruti Suzuki India Limited (NSE: MARUTI, BSE: 532500) is a subsidiary company
of Japanese automaker Suzuki Motor Corporation. It has a market share of 44.9% of the Indian
passenger car market as of March 2011. The company is listed on Bombay Stock Exchange and
National Stock Exchange.

It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India,
and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India
Limited. The company's headquarters are located in New Delhi. In February 2012, the company
sold its 10th million vehicles in India.
Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of SMC, Japan. MSIL has been the leader of the Indian car market for over two and a
half decades. The company has two manufacturing facilities located at Gurgaon and
Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce
over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing
capacity to 1.75 million by 2013.
The company offers a wide range of cars across different segments. It offers 15 brands
and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto,
Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans
SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti
Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include
Eeco, Alto, Estilo, Wagon R and Sx4.
In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell
One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March
2011). In 2010-11, the company sold over 1.27 million vehicles including 1,38,266 units of
exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent
of the Indian passenger car market.
At Maruti, they have a clear perspective on manpower. They see it as a unique resource, in the
sense that optimal productivity of other resources depends largely on the way human resources
are utilized. The basic philosophy of management that underlies the Maruti culture is that all
employees of the company should be molded into a team which then strives as one, to achieve
commonly shared company goals and objectives. To make this philosophy tenable, the Company
takes several initiatives. Inputs are sought from employees at all levels. They believe that
everyone should contribute to the formulation of company vehicles, goals and objectives.
Secondly, at Maruti they encourage leadership in the best sense of the word. According to us, a
leader is one who must be impartial, must have the ability to rise above his own subjectivity, and,
most importantly, must practice what he preaches.
They understand that the process of creating a sense of belonging that all employees can
identify with is a lengthy one. To ensure that this translates into concrete reality, they have taken
several simple but specific and well thought out measures. The first step in this direction has
been the introduction of a common uniform for all employees. Another measure is the creation of
a common canteen where all employees have lunch, stand in common queues, and sit on the

same table. Common toilets, common transport and similar facilities for all levels of employees
are other measures that reinforce their emphasis on genuine equality in the workplace.
At Maruti they do not believe in the notion of organizational hierarchies. As a matter of
fact, the management structure and systems in Maruti have been designed to promote
decentralization of authority. Maruti has a horizontal management structure with only four
functional levels of responsibility to facilitate quicker decision making.
Another focus area of the Maruti culture is the maintenance of a smoothly functioning
communication network. Maruti believes that communication channels between labour and
management cannot simply consist of having a labour representative on the Board of the
Company. They have faith in the ability of labour to effectively participate in management and
make constructive suggestions. To encourage this, they ensure that there is a thorough
dissemination of information at all levels, through newsletters or via a letter from the Chief
Executive to all employees. Meetings with the Union are held regularly, and programs being
contemplated by the Company are discussed with the Union. The Sahyog Samiti, a collection of
representatives of non-unionized employees, training program in Japan, Quality Circles,
productivity-linked incentive schemes, and an ethos of discipline and teamwork, all contribute to
the Maruti culture.
Several measures of performance have made amply clear that Maruti has established a
truly healthy work culture. They have met all project and performance targets since inception.
Their productivity levels are constantly improving. The Company has had good labour relations
with employees from the very beginning, and they have been successful in the export market.
Yet, the Maruti culture is one that does not believe in resting on its laurels. They adhere to the
spirit of Kaizen, which states that constant improvement is always possible. The most basic tenet
of productivity that they hold dear is that "Today should be better than Yesterday and Tomorrow
should be better than Today".

COMPANYS FLASHBACK
Maruti Suzuki India Limited (MSIL) was established in Feb. 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an
efficient public transport system.
Suzuki Motor Company was chosen from seven prospective partners worldwide. This
was due not only to their undisputed leadership in small cars but also to their commitment to
actively bring to MSIL contemporary technology and Japanese management practices (which
had catapulted Japan over USA to the status of the top auto manufacturing country in the world).
A license and a Joint Venture agreement were signed between Government of India and Suzuki
Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The objectives of MSIL
then were:

Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scarce resources.

Production of large number of motor vehicles, which was necessary

for economic growth.

The company went into production in a record time of 13 months and the first car was rolled out
from Maruti Suzuki India Limited Gurgaon in December, 1983.
FIRST CUSTOMER:-

Mr. Harpal Singh, Marutis first customer, proudly received the keys of the Maruti 800
car from the Prime Minister Smt. Indira Gandhi on December 14, 1983.
When Maruti began operations in 1983, there were only two other car companies in India
and the total size of the Indian passenger car market was a measly 40,000 units per year. From
the start, Maruti caught the imagination of Indian car customers and launched four new models,
including a hatchback, a mini multipurpose van, an entry sedan and a SUV, over the next decade.
Each of these models was an instant draw with the Indian consumers. Suzuki Motor
Corporation increased its stake on two occasions (26>> 40 >> 50 >> controlling stake and
brought it to 50 per cent in the mid 1990s (and to 54% with privatization in 2002).

SERVICES OFFERED BY MARUTI SUZUKI

AUTHORIZED SERVICE STATIONS:

Maruti is one of the companies in India which has unparalleled service network. To ensure the
vehicles sold by them are serviced properly Maruti had 2,946 service stations (inclusive of dealer
workshops and Maruti Authorised Service Stations) in 1,395 towns & cities and 30 Express
Service Stations on 30 highways across India.
Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti trains the local staff. Other automobile companies have not
been able to match this benchmark set by Maruti. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the vehicle.

MARUTI INSURANCE

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.

MARUTI FINANCE

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in March
2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance.
SBI-Maruti Finance is currently available in 166 cities across India.

MARUTI TRUEVALUE

Maruti True Value service is offered by Maruti Suzuki to its customers. It is a market place for
used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with
the help of this service in India. As of 31 March 2010 there are 341 Maruti True Value outlets
MARUTI N2N FLEET MANAGEMENT

N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporate. Clients who have signed up of this service include Gas
Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India,
National Stock Exchange and Transworld. This fleet management service includes end-to-end
solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services
and Remarketing.
MARUTI GENUINE ACCESSORIES

Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India.

MARUTI DRIVING SCHOOL

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modeled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behaviour and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.

AWARDS
2013

Declared Business Standard Company of the Year 2011

WagonR won the Compact Car of the Year 2011 and Alto K10 won the Best Variant of
the Year in the Auto car Awards 2011
Ranked No.1 in JD Power Customer Service Index (CSI) Study 2011 for the 12 Th time in
a row.

2012

Maruti Suzuki manufactures 10 lakh units in 2009-10

Ranked No.1 in JD Power Sales Satisfaction Index (SSI) Study 2010
Ranked No.1 in JD Power Customer Service Index (CSI) Study 2010 for the 11Th time in
a row
Awarded the Best Automobile Manufacturer of the Year 2010 and the Hall of Fame
award for single handedly changing the face of Indian automobile Industry by Car India
Won National HRD Network Trailblazer Award 2010 for HRD Excellence
Received Signicant Achievement in Sustainability award in CII-ITC Sustainability
Awards 2010
DZire ranked No.1 in JD Power Initial Quality Study (IQS) 2010
DZire won the JD Power APEAL Study for a third time in a row
WagonR won the Best Entry Level Mini Car of the Year category of the 2010 ET
ZigWheels Car of the Year awards
Ranked among the top 10 Most admired companies from India by Wall Street Journal

2010

Maruti Suzuki Swift becomes fastest to reach 3-lakh milestone.

Maruti Suzuki A-star breaks own record of fuel efficiency.
Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'.
Haryana allots 700 acres to Maruti Suzuki for hi-tech R&D complex at Rohtak.
Maruti Suzuki ships out 100000th A-star in less than a year.

ICSI awards top honours to Maruti Suzuki for corporate governance

.MSIL tops in J D Power CSI (2009) for 10th time in a row
Zen Estilo, WagonR and Alto ranked as the top three most dependable vehicles in the
compact segment in 2009 JD Power Asia Pacic India Vehicle Dependability Study

2009

Maruti Suzuki becomes the first Indian car company to export half a million cars.
Maruti Suzuki Ranks Highest in Automotive Customer Satisfaction in India for Ninth
Consecutive Year.
Maruti Suzuki moves A-star for Europe on Auto Wagons.
Maruti Suzuki displays Fuel Efficiency of its 12 brands from the New Year

2008

Maruti Alto becomes first car in India to cross 2 lakh domestic sales in a fiscal.
MSIL tops in J D Power CSI (2007) for 8th time in a row
Maruti Suzuki MD conferred a Doctorate (Honorary) by London Metropolitan
University.
Global launch of Concept Car from Maruti Suzuki
Maruti's highest ever sales.

2007

UGS Asia Pacific PLM Excellence Award Grand Prize.

Maruti and Magma in pact for financing cars.
MSIL tops in J D Power CSI (2006) for 7th time in a row

2006

Number one in JD Power SSI for the second consecutive year,

Number one in JD Power CSI for the sixth time in a row - the only car to win it so many
times,
M800, Wagon R and Swift topped their segments in the TNS Total
Customer Satisfaction Study,
Leadership in the JD Power Initial Quality Study - Alto number one in its
segment for the 2nd time in a row, Esteem number one in its segment for the 3rd year in a
row, Swift number one in the premium compact segment,
Wagon R and Esteem top their segments in the JD Power APEAL study,
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1 in Auto
sector)-Feb 05,
Maruti bagged the "Manufacturer of the year" award from Auto car-CNBC
(2nd
time in a row)-Feb 05,

First Indian car manufacturer to reach 5 million vehicles sales,

Business World ranks Maruti among top five most respected companies in
India-Oct 04,
Maruti ranked among top ten (Rank7) greenest companies in India by
Business Today - Sep '04

2005
Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction, No.1 in Product
Quality (Esteem and Alto) and No. 1in Product Appeal (Esteem and Wagon R),

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto),

Business World ranked us among the country's five most respected
companies,
Business World ranked us the country's most respected automobile
company,
Voted Manufacturer of the year by CNBC,
Voted one of India's Greenest Companies by Business Today-AC Nielson
ORG-MARG

2004

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003",
J D Power ranked 3 models of Maruti on top: Wagon R, Zen and Esteem,
Maruti 800 and Wagon R top in NFO Total Customer Satisfaction Study 2003,
MSIL tops in J D Power CSI (2001) for 4th time in a row

2003

MSIL tops in J D Power CSI (2001) for 2nd time in a row: another
international first

2002

Maruti bags JD Power CSI - 1st rank; unique achievement by market

leader anywhere in the world

2001

MSM launched as model workshop in India; achieves highest CSI rating.

Central Board of Excise & Customs awards Maruti with "Samman Patra", for
contribution to exchequer and being an ideal tax assessee.

2000

CII's Business Excellence Award

1999

Maruti wins INSSAN award for "Excellence in Suggestion Scheme",

Awarded the Star Trading House status by Ministry of Commerce

1994-98

Engineering Exports Promotion Council's award for export performance

1994

Best Canteen award among Haryana Industries as part of employee welfare

1992-93

Engineering Exports Promotion Council's award for export performance

1991-92

Engineering Exports Promotion Council's award for export performance

PRODUCTION AND PRODUCT

PRODUCTION
Maruti Production System or MPS draws learning's from its parent company Suzuki Motor
Corporation's concepts on `lean manufacturing' under Suzuki Production System i.e. SPS.
Setting trends in new products and achieving customer delight starts with Manufacturing
Excellence and Maruti's manufacturing excellence hinges around four important pillars-Cost,
Quality, Safety and Productivity.

Cost
Every employee working on the line is 'cost sensitive' and functions in capacity of a Cost
Manager. He is a key contributor in suggesting how to keep costs of production under control.

Quality
A product of poor quality requires repeated inspections, entails wastage in terms of
repairs and replacements. "Do it right first time", is the principle followed to avoid wastage.

To ensure quality, robots were devices and deployed especially where they reduced
worker fatigue and were critical in delivering consistent quality. With consistent improvements
in the plant the company was able to manufacture over 600,000 vehicles in 2006-07 with an
installed capacity of just 350,000 vehicles per year.

Safety
"Home or work place; Safety takes First Place". This has been the motto of the company
where safety is concerned. Maruti attaches great significance to safety of its people and strongly
advocates that safety at work place adds to quality of the products and improves productivity of
the plant significantly.
In the Japanese manufacturing system, the central role is accorded, not so much to
Quality, Productivity or Cost, but to Safety. When process flow, lay-out and systems are designed
for maximum safety, they automatically contribute to better quality and productivity.

PRODUCTION MANAGEMENT SYSTEM

Production Management System (PMS) is the next step towards moving ahead to sustain the
momentum. It is a strategy to achieve Manufacturing Excellence evolved through participative
approach. The system is people driven and ensures involvement of all levels (Managers,
Executives, and Supervisors).
The concept ensures participation and error free communication. The result is clarity of content,
better understanding and openness towards feedback. These values make PMS a sustainable
system. Having achieved the target of selling a million cars in the financial year 2009 - 2010,
PMS has lead the production team towards greater enhanced productivity with perfection.

PMS is derived from the basic Japanese principles of 5S, 3G and 3K.
In order to bring an improvement in overall processes and systems in Production Division
through involvement of all levels, PMS was launched in Maruti Suzuki. Through various phases
of PMS the company embarked on its journey of brings in a) Clarity of Role, Non-duplication of

work, Ownership, Commitment and Standardization in all our process and systems across the
production division.
PMS is
A system which is people driven and ensures involvement of all levels (Managers,
Executives, Supervisors)
A system which ensures ownership
A system which brings in standardization of systems & processes
A system which ensures Sustainability
PMS has entered the fourth phase of implementation and the results have been overwhelming.
Excellence through participative approach
PMS is a bottoms-up approach where people of the work area are encouraged to give solutions to
the problems at their end. It is implemented across levels. This motivates the operator and
ensures his ownership all through the solution finding process.
The concept ensures participation and error free communication. The result is clarity of content,
better understanding and openness towards feedback. These values make PMS a sustainable
system.
Clarity of the Role
One of the aspects that have bothered hierarchical structures is the clarity of the roles and
responsibility across strata. Clarity on what is expected out of a supervisor, a manager or a
technician at the shop floor has brought in structure and standardization to production
management at Maruti. The result is that job duplication is eliminated and no man-hours are lost
in understanding what each person is expected to do.
The outcome of such clearly defined roles is increased efficiency of operations.
Bringing in Standardization
Through such people participation, PMS has brought in standardization that eliminates any scope
of confusion at shop floor. A visual consistency across the manufacturing facilities is notable.
Bins and trolleys are earmarked for tools and components. Pictorial charts explaining processes
and procedures are pasted at convenient and strategic points helping shop floor employees
understand various mechanisms with ease.
Wherever possible a colour coding control or visual control is followed to eliminate operator
errors arising out of language constraints. This helps in clear distinction of different model and
its
components.
All around Gains
These processes have led to many operational improvements that have saved cost and time. At
the same time these have brought in operational ease and a defined activity flow and sequence.

Marching ahead towards the goal of selling a million vehicles by 2010, PMS will lead the
production team towards greater enhanced productivity with perfection.

PRODUCTION MILESTONE
1st vehicle produced, December 1983
1,00,000 vehicles produced by August, 1986
5,00,000 vehicles produced by June, 1990
10,00,000 vehicles produced by March, 1994
15,00,000 vehicles produced by April, 1996
20,00,000 vehicles produced by October, 1997
25,00,000 vehicles produced by March, 1999
30,00,000 vehicles produced by June, 20003
5,00,000 vehicles produced by December 2001
40,00,000 vehicles produced by April, 2003
45,00,000 vehicles produced by April, 2004
55,00,000 vehicles produced by April, 2005
66,00,000 vehicles produced by April, 2006
And Finally
1,00,00,000 vehicles produced by 12th February, 2012

MANUFACTURING FACILITIES
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing
facilities have a combined production capacity of 1,250,000 vehicles annually.
Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles
annually but productivity improvements have enabled it to manufacture 700,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire

facility is equipped with more than 150 robots, out of which 71 have been developed in-house.
The Gurgaon Facilities manufactures the 800, Alto, Wagon R, Estilo, Omni, Gypsy and Eeco.
Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The
Manesar Plant produces the Swift, Swift DZire and CIAZ.
MARUTI 800 (CHANGE YOUR LIFE)
Maruti 800 is a city car manufactured
by Maruti Suzuki in India. It was launched in
December 1983 with almost 100% imported
components. It used to be the bestselling car
in India until 2004; upon its launch
the Maruti Alto took that title.
It is a rebadged version of an old model of
the Suzuki Alto. Over 2.5 million Maruti
800s have been sold since its launch in 1983.
The same car is sold in Pakistan as
the Suzuki Mehran with a much older 1980s era Suzuki SS80 carburetor based engine.
The ex-showroom price of MARUTI 800 is Rs.2 Lakhs Rs.2.15Lakhs.

1. OMNI (FITS ALL)

The Maruti
Omni is
a microvan manufactured
by
Indian
automaker Maruti Suzuki. The first version
of Maruti Omni had 796 cc engine, same
as the Maruti 800 city car.
This was the second vehicle to be launched
by Maruti, one year after the 800, in 1984.

The Omni is truly Indias original Multipurpose Vehicle.

Today it is available in 5 avatars 5 Seater, 8 Seater, Cargo, Ambulance and LPG. It
Meets diverse needs across different user segments and can double up both as a people
carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the
job.
The ex-showroom price of
OMNI is between Rs.2.08
Lakhs Rs.2.67Lakhs.
2. GYPSY
The Maruti Gypsy is
a fourwheel-drive SUV based on the
long
wheelbase Suzuki
JimnySJ40/410 series vehicles.
It is manufactured in India by
Maruti Suzuki. It was introduced in the Indian market in December 1985 with the
970 cc F10A Suzuki engine and while sales were never very high it became very popular
with law enforcement.
The Maruti Gypsy is available
as soft top, hard top and as
ambulance car. As quoted by
Autocar India, "There is nothing
that can touch a Gypsy off the
road, except perhaps an Arjun
battle tank.
The ex-showroom price of
GYPSY is between Rs.5.21
Lakhs Rs.5.73Lakhs.
3. ZEN (LOOK AT IT)
The Maruti Zen is a 5-door hatchback produced and sold in India by Indian automaker
Maruti Suzuki. It has acquired significant popularity in India since the nameplate was
first introduced in 1993. The word "ZEN" is an acronym standing for Zero Engine Noise.

The best part of the Zen is it remained in trend for over a very long period without any
changes in Exterior Design or looks. It underwent a facelift in 2003. The production of
this model ended in March 2006.
In 2000 its cost (of LX model)
was around Rs 3,80,000.

4. WAGON R (FOR THE

SMARTER RACE)
The Maruti Suzuki Wagon R is a
made-for-India version of Suzuki
Wagon R. The Wagon R was launched in December 1999, and has since undergone three
upgrades (one in 2003, another in 2006 and another in 2010).
When the second-generation Wagon R was launched in 2010, the car was built on a
newer platform, & claimed more interior space, and new features such as an under-seat
tray below the front passenger seat (top-end only). Its looks were also revamped,
shedding the boxy look at the back. It is one of the best selling models of Maruti Suzuki
in India and continues to be the second best seller of the company after Alto every month.
Wagon R has 6 versions.
The ex-showroom price of
WAGON R is between Rs.3.41
Lakhs Rs.4.28 Lakhs.

5. ALTO (LETS GO)

It was launched in the local Indian
market on September 27, 2000
although the Alto nameplate was
very successfully being used to export the Maruti Zen to Europe from India. It is the best
selling hatchback in India. Since 2006, it is India's largest selling car and crossed the 1
million production figure in February08 becoming the 3rd Maruti model to cross the
million marks in India after Maruti 800 & Maruti Omni.

This is testified by the 24-hour endurance record set on August 03, 2003 of covering
3082kms in 24 hours at an average speed of 128kmph.
ALTO K10 : Maruti Suzuki has
launched a new version of Maruti
Alto in the Indian auto market in
August 2010. The new Maruti Alto
K10 is equipped with the
company's 1.0 L, K-series petrol
engine which also currently powers
the A-Star and Wagon R.
The ex-showroom price of ALTO is
between Rs.2.36 Lakhs Rs.3.33 Lakhs.

6. SWIFT (YOURE THE FUEL)

In India, Suzuki has launched Swift as a joint venture with Maruti and the car is known as
Maruti Suzuki Swift in 2005. In the Indian auto market Swift is available with seven
variants four with petrol and three with diesel engine option. The petrol version of Maruti
Swift is powered by 1.2-litre K-series engine. However, the diesel version of Maruti
Swift is packed with 1.3-litre, DDiS engine (borrowed & licensed by Suzuki from FIAT's
renowned Multijet technology) with a displacement of 1,248 cc.
In February 2007, Maruti has finally taken the plunge by planking one of the best diesel
engines in the world in Maruti's best car. The combination is potentially explosive. The
gearbox is joy to use; smooth and very precise this coupled with commendable fuel
efficiency, will make the Swift Diesel delight to own.
The ex-showroom price of SWIFT is between Rs.4.36 Lakhs Rs.5.87 Lakhs.

7. ESTILO (COME ALIVE WITH)

The first generation model went on
sale in India in December 2006 as
the "Maruti Zen Estilo". The Zen
Estilo however, is powered by a
largerF10D 1.1L MPFI engine that
also powers the Wagon R in
the Japanese market. A facelifted
variant was released in August09 as
the "Maruti Estilo", losing the Zen
moniker entirely.
A Spanish expression for style, the new Zen Estilo stands true to its name. Its
aerodynamic body, unique bean shape sparkling colours and snazzy lights will rev up
your style quotient this transition has brought about a steady decline in sales for this
model though the facelift has brought significant improvement in performance and
styling over the car's Japanese variants.
The ex-showroom price of ESTILO is between Rs.3.31 Lakhs Rs.4.23 Lakhs
8. SX4 (MEN ARE BACK)
Revolutionary European design, world class Drive by wire technology, most spacious
in its class, Steering mounted audio
controls,
maximum
groung
clearance in its class, high on safety
with dual front airbags, ABS &
EBD features.
Maruti Suzuki launched SX4 sedan
with the 1.6-litre gasoline engine
without VVT in 2007. The SX4 was
updated to the 1.6-litre engine with
VVT. Minor cosmetic differences
can be seen between the Indian
version and others sold elsewhere. Maruti introduced a compressed natural gas (CNG)
factory fitted kit in August 2010.
Maruti Suzuki launched SX4 diesel on 17th Feb 2011. The car will carry the same
features as the petrol version of SX4 except the engine.

The ex-showroom price of SX4 is between Rs.7.02 Lakhs Rs.9.25 Lakhs.

9. SWIFT DZIRE (THE HEART

CAR)
Suzuki introduced a sedan based
version of the Swift called the
"Maruti Swift Dzire" in the Indian
market.
Launched
th
on26 March08, Swift DZire
replaces Maruti Suzukis popular
entry level sedan, Maruti Suzuki
Esteem, production of which was discontinued in late 2007. Maruti Suzuki has
introduced Swift DZire only in the Indian market. The Dzire has exactly the same
wheelbase as the hatchback version and has an increased overall length due to the
addition of the boot.
The ex-showroom price of SWIFT DZIRE is between Rs.5.04 Lakhs Rs.7.39 Lakhs.
NEW SWIFT DZIRE
Maruti India launched the second generation of its sedan Maruti Swift Dzire on 1st
February, 2012 in India. The new
car that is based on the recently
launched new Swift is available in
1.2 litre petrol and 1.3 litre diesel
options.
MSIL introduced New SWIFT
DZIRE, at a price between Rs 4.79
lakh and Rs 7.09 lakh.
10. A-Star (STOP @ NOTHING)
The 7th Generation is known in India as the Maruti Suzuki A-Star (short for "Alto-Star"),
but is also known as the Suzuki Celerio in some other countries. It was launched in
December 2008 Maruti Suzuki. The car is manufactured exclusively in Haryana, India
and is exported worldwide.

It is available in European markets with a somewhat different front end as the Nissan
Pixo. The car was rolled out to the Indian customers in December 2008 and exports
began in April 2009. The Indian market version comes in three variants - LXi, VXi and
ZXi. With the price tag, the car is targeted at customers with budgets somewhere between
theZen, Estilo and the Swift.
The ex-showroom price of A-STAR is between Rs.3.66 Lakhs Rs.4.50 Lakhs.

11. RITZ (LIVE THE MOMENT)

In the Indian auto market, Suzuki Splash is known as Maruti Suzuki Ritz and launched on
15th May09. Maruti Suzuki has changed its name because the name Splash was already
registered by Ford.
In India, Maruti Ritz is available with nine variants, five with petrol and rest four with
diesel engine options. The petrol variants of Maruti Ritz are powered by the companys
popular 1.2L, 1197 cc, K12M KB series petrol engine. This engine is getting much
popularity in the Indian market because of its excellent performance and fuel efficiency.
The mileage it delivers in city is around 14.5kmpl in city and 18kmpl on highway.
The diesel variants of Maruti Ritz are powered by the Fiats 1.3L Multijet diesel engine.
The mileage it delivers is 17.7
kmpl in city while on highway it
gives 21kmpl.
The ex-showroom price of RITZ is
between Rs.4.09 Lakhs Rs.5.63
Lakhs.
12. EECO (HAPPINESS FAMILY
SIZE)

EECO was introduced in India by Maruti Suzuki during 2010. This car is essentially an
updated Versa, this is an urgent refresh in lines with Maruti Suzuki not being able to
come up with a new minivan. EECO comes with 5-seater and 7-seater options. EECO is
equipped with advanced Engine
Management
System
for
optimizing fuel efficiency and
performance. It is branded by the
manufacturer as a perfect car for
every occasion-a business trip or a
picnic with the loved ones.
The ex-showroom price of RITZ is
between Rs.2.91 Lakhs Rs.3.86
Lakhs.

SWOT Analysis
STRENGTHS
1. Bigger name in the market.
2. Established distribution & after sales network.
3. Understanding of the Indian market.
4. Ability to design product with differentiating features.
5. Brand Image.
6. Experience & Knowledge how in technology.
7. Trust of People.
8. MarutiUdyog Ltd. is the market leader for more than decade.
9. Has a great dealership chain in the market.
10.Better after sales service.
11.Low maintenance cost of vehicle.

WEAKNESSES
1.
2.
3.
4.
5.
6.

Lack of experience in foreign market.

Comparatively new to diesel cars.
People resistant to upper segment models.
Heavy import tariff on fully built imported models.
Exports are not that good.
Lesser diesel models in the market compare to others.

7. Global image is not that big.

OPPURTUNITIES
1.
2.
3.
4.
5.
6.
7.
8.

Increased purchasing power of Indian middle class family.

Government subsidies.
Tax Benefits.
Prospective buyers from two wheeler segment.
Great opportunities to go global with success of Swift and SX4 allover.
Introduction of more diesel models. The diesel car segment is growing.
Opportunity to grow bigger by entering into bigger car markets.
Already a market leader so great opportunity to be the king of market
in every stage of industry.

THREATS
1.
2.
3.
4.
5.
6.

Foreign companies entering market; so a bigger threat from MNCs.

Competition from second hand cars & TATA Nano.
Threats from Chinese manufactures.
To the market share, as many big names are coming in the industry
There is hardly any diesel models
Rs. 1 lakh Rs. 1.5 lakh car

PRODUCT
Brand
Packaging
Innovations
Quality

PRICE
Pricing strategy
Pricing and quality
Pricing and alternatives
Discounts

PROMOTION
Personal selling
Advertising
Public relations

PLACE
Channel of distributions
Physical distribution
Wholesaler and retailers

MARKETING MIX
Marketing is the process by which a product or service originates and is then priced, promoted,
and distributed to consumers. The principal marketing functions involve market research and
product development, design, and testing. It is the business activity of presenting products or
services in such a way as to make them desirable.
One has to consider promotion that is balanced with a suitable product available at a reasonable
price, provided at all places to maximize the sale of ones product.

1. PRODUCT (Brand, Packaging, Innovations, Quality):

a. Brand: Advertising is often used to make consumers aware of a products special low
price or its benefits. But an even more important function of advertising is to create an
image that consumers associate with a product, known as the brand image. The brand
image goes far beyond the functional characteristics of the product. The products of
Maruti Suzuki have many special characteristics to them, but when consumers think of it,
they not only think of its features, but they may also associate it with quality,
performance, and class. All of these meanings have been added to the product by
advertising. Consumers frequently buy the product not only for its functional
characteristics but also because they want to be identified with the image associated with
the brand.
Maruti Suzuki has been successful in creating and maintaining a professional brand
image.
b. Packaging: A vehicle cannot have a material packaging. Here, packaging refers to an
effective assembly of features. Maruti Suzuki provides many innovative features to suit
the target customers and the product.
c. Innovations: The various motives behind buying an automobile are Need, Prestige,
Comfort, Fashion, Jealousy and Novelty. The R & D Department continuously strives to
bring new innovations in their product. MSILs have an industrial experience of over 100
years and they are well known with the Psychology of Indian customers, who desire more
at less price. This experience has helped them to develop products which fulfil the
expectations of Indian consumers.
d. Quality Control: Maruti Suzuki has their Quality Control standards and the QC Dept.
ensures that the customer does not face any inconveniences of a defective Service

 Portfolio of 12 products
Five product lines
Product Line

Products

A1

800

A2

Alto, Zen ,Wagon R, Swift, A-star

A3

D ZiRE, Sx4

SUV

Vitara, Gypsy

C - Class

Omni, Versa

2. PRICE (Pricing Strategy, Alterations, Discounts)

Pricing Strategy: The price of the Maruti car is between Rs. 210000 to Rs. 1500000. Maruti 800 is the lowest
price car of this company. Alto, Omni, Wagon R, are also the low price car of the company, Zen & Esteem are the
mid price car of the company. But Grand Vitara is the high price model of the company. The price of car is
decided according to its product variety, quality, design etc
a. Alterations: The Company does not allow any alterations to any of the features of the
product. If there is an alteration which affects the performance of the engine, then the
warranty becomes void. However, there may be alterations in the accessories, if desired
by the customer.
b. Discounts: Discounts are decided by the Co. every month. Any further discounts made
from the profits of the Dealer. However, the Co. may compensate the Dealer for the
discounts allowed to a certain extent.

3. PROMOTION (Personal Selling, Advertising, Sales Promotion, Public

Relations)
Advertising
TV Ads
Print Ads
Radio Ads

GharAa Gaya Hindustan

India Comes Home in Maruti Suzuki.
Information Advertising, alternative Advertising Options
BTL - Sponsorships
TV shows - Indias Got talent
Place Advertising Bill boards
Sales Promotions
Product warranties
Premiums (gifts)
Trade shows
2,628The number of workshops that provide customers with maintenance support in
1220 cities.
a. Personal Selling: There is minimal personal selling involved. The Sales Officers at the
Dealer collect prospective customer databases and perform cold calling to attract
customers.
b. Advertising: Advertising is a form of life Insurance mass communication designed to
promote the sale of a product or service. Maruti Suzuki is responsible for the advertising
of its products. The Dealer does play any role in the advertising. The various media used
for advertising are T.V., Newspapers, Magazines, Hoardings, and Internet etc. The Dealer
conducts point-of-purchase displays to advertise the products. The advertisements done
by the Co. help the Dealer to capitalize on the market.
c. Sales Promotion: The purpose of sales promotion is to supplement and coordinate
advertising and personal selling; Sales promotions are designed to persuade consumers to
purchase immediately by providing special incentives such as cash rebates, prizes, extra
product, or gifts. The Co. conducts intensive sales promotion during festivals such as
festive discounts during Diwali.
d. Public Relations : Public Relations is a management function that creates, develops, and
carries out vehicles and programs to influence public opinion or public reaction about an
idea, a product, or an organization. The Co. takes serious measures to maintain good
public relations. The Co. follows business ethics to ensure that the customer is satisfied
and receives good service whenever and wherever he desires
4. PLACE (Channels of Distribution, Physical Distribution)
600 New car sales outlets covering 393 cities.
265 Maruti True Value outlets spread across 166 cities.
2628 Maruti Authorized Service Stations, covering 1220 cities.

Tie up with Adani group for exporting 200,000 units through Mnudra port Gujarat

Suggested Place strategy:400 new car sales outlets in next three years.
S150 new true value shops in next three years.
1200 new Maruti Authorized Service Stations in next three years.
Tie up with other distributors for Exports.

a. Channels of Distribution: In case of Vehicles, Dealership method of distribution and

sales is generally adopted. Maruti Suzuki has also adopted Dealership method of
distribution of its products. The Dealers purchase products from the Co. at a negotiated
price. The MRP is fixed by the Co. and the Dealer gets a profit within these prices. As a
company deals with passenger vehicles there may be a single or distinct dealership to
market its commercial and passenger vehicles in a town. However, if there is a single
Dealership appointed, then the commercial and passenger Vehicles are managed under
commercial and passenger Vehicles Dept. respectively.
Maruti Suzuki has contracts with the Government of India and it supplies MUV, in some
cases, to the Govt. Sometimes, bulk quantities of Vehicles are ordered by a Govt. Dept. or
a private company. The sales, distribution and billing of these are looked after by
the Co. itself.
b. Physical Distribution: The commercial vehicles are manufactured at Gurgaon and
Manesar. From the plant, the finished product is transported to the Dealerships. The
nation-wide Dealership, sales, services and spare parts network comprises over 2,000
touch points. The Dealerships are strategically located in the target and potential markets
to ensure efficient and timely availability of its products in the market.

Marketing Strategies of Maruti Suzuki Cars

Marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable competitive
advantage.

DEVELOPING A MARKET STRATEGY

Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill
market needs and reach marketing objectives. Plans and objectives are generally tested for
measurable results. Commonly, marketing strategies are developed as multi-year plans, with a
tactical plan detailing specific actions to be accomplished in the current year. Time horizons
covered by the marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment increases. Marketing
strategies are dynamic and interactive. They are partially planned and partially unplanned.
Marketing strategy involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor analysis, target
market analysis, as well as evaluation of any elements of the technological, economic, cultural or
political/legal environment likely to impact success. A key component of marketing strategy is
often to keep marketing in line with a company's overarching mission statement.
Once a thorough environmental scan is complete, a strategic plan can be constructed to identify
business alternatives, establish challenging goals, determine the optimal marketing mix to attain
these goals, and detail implementation. A final step in developing a marketing strategy is to
create a plan to monitor progress and a set of contingencies if problems arise in the
implementation of the plan.

TYPE OF STRATEGIES
Marketing strategies may differ depending on the unique situation of the individual business.
However there are a number of ways of categorizing some generic strategies. A brief description
of the most common categorizing schemes is presented below:
1. Strategies based on market dominance - In this scheme, firms are classified based on
their market share or dominance of an industry. Typically there are four types of market
dominance strategies:

a)
b)
c)
d)

Leader
Challenger
Follower
Nicher

2. Porter generic strategies - strategy on the dimensions of strategic scope and strategic
strength. Strategic scope refers to the market penetration while strategic strength refers to
the firms sustainable competitive advantage. The generic strategy framework (porter
1984) comprises two alternatives each with two alternative scopes. These
are Differentiation and low-cost leadership each with a dimension of Focus-broad or
narrow.
a) Product differentiation (broad)
b) Cost leadership (broad)
c) Market segmentation (narrow)
3. Innovation strategies this deals with the firm's rate of the new product development
and business model innovation. It asks whether the company is on the cutting edge of
technology and business innovation. There are three types:
a) Pioneers
b) Close followers
c) Late followers
4. Growth strategies In this scheme we ask the question, How should the firm grow?.
There are a number of different ways of answering that question, but the most common
gives four answers:
a) Horizontal integration
b) Vertical integration
c) Diversification
d) Intensification
A more detailed scheme uses the categories:
Prospector
Analyzer
Defender
Reactor
Marketing warfare strategies - This scheme draws parallels between marketing strategies
and military strategies

STRATEGIC MODELS

Marketing participants often employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the3Cs can be employed to get a broad understanding of the
strategic environment. An off Matrix is also often used to convey an organization's strategic
positioning of their marketing mix. The 4Ps can then be utilized to form a marketing plan to
pursue a defined strategy.
There are many companies especially those in the Consumer Package Goods (CPG) market that
adopt the theory of running their business centered on Consumer, Shopper & Retailer needs.
Their Marketing departments spend quality time looking for "Growth Opportunities" in their
categories by identifying relevant insights (both mindsets and behaviors) on their target
Consumers, Shoppers and retail partners. These Growth Opportunities emerge from changes in
market trends, segment dynamics changing and also internal brand or operational business
challenges. The Marketing team can then prioritize these Growth Opportunities and begin to
develop strategies to exploit the opportunities that could include new or adapted products,
services as well as changes to the 7Ps.

REAL-LIFE MARKETING
Real-life marketing primarily revolves around the application of a great deal of common-sense;
dealing with a limited number of factors, in an environment of imperfect information and limited
resources complicated by uncertainty and tight timescales. Use of classical marketing techniques,
in these circumstances, is inevitably partial and uneven.
Thus, for example, many new products will emerge from irrational processes and the rational
development process may be used (if at all) to screen out the worst non-runners. The design of
the advertising, and the packaging, will be the output of the creative minds employed; which
management will then screen, often by 'gut-reaction', to ensure that it is reasonable.
For most of their time, marketing managers use intuition and experience to analyze and handle
the complex and unique situations being faced; without easy reference to theory. This will often
be 'flying by the seat of the pants', or 'gut-reaction'; where the overall strategy, coupled with the
knowledge of the customer which has been absorbed almost by a process of osmosis, will
determine the quality of the marketing employed. This, almost instinctive management, is what
is sometimes called 'coarse marketing'; to distinguish it from the refined, aesthetically pleasing,
form favored by the theorists.