Professional Documents
Culture Documents
ON
0 MARUTI SUZUKI
Submitted by :
Siddhanth Munjal
1
ACKNOWLEDGEMENT
After carrying out thorough study, I have prepared this project report on the Marketing
Strategy of Maruti Suzuki ltd. The data for the contents of which have been carefully
derived from various sources including the World Wide Web, books, magazines,
I owe sincere thanks to my teacher Ms. Geetu Sodhi, for her constant guidance,
assistance & monitoring. Working on this project has helped me gain a complete
perspective of how MARUTI SUZUKI handles the marketing, promotion & distribution
of their products in India. I am quite sure that the knowledge that I have acquired from
SIDDHANTH MUNJAL
2
CERTIFICATE
This is to certify that Mr. SIDDHANTH MUNJAL, BBA IP Morning(B) III Semester has
completed the project titled Marketing Strategies of Maruti Suzuki under the supervision
of Mrs. GEETU SODHI for the fulfilment of the requirement as a course of study.
3
CONTENTS
Objectives
Methodology
Introduction
Automobiles
SWOT analysis
Customer obsession
Sustainability efforts
IDTRs
Maruti Insurance
Maruti AutoCard
Conclusion
Bibliography
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OBJECTIVES
To study the marketing strategies of Maruti Suzuki along with the company profile. Also
included are the initial stages of the company, its growth and development in the Indian
market.
To prepare a SWOT analysis of the company for a better perception of the company profile.
To conduct a survey and acquire conclusions about the company’s popularity among masses.
5
METHODOLOGY
This project is based on both primary and secondary data. Primary data has been gathered
using a survey conducted on a group of 30 people locally in Delhi. However various internet
websites has been referred to for gathering various details about the company.
6
INTRODUCTION
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-
wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a
majority stake in the company. 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 was
renamed Maruti Suzuki India Limited. The company's headquarters are in Gurgaon, Haryana
(near Delhi).
Its manufacturing facilities are at two locations viz. Gurgaon and Manesar. Maruti’s Gurgaon
unit has installed a capacity of over 350,000 units per year. The Manesar facility, launched in
February 2007, has a capacity of nearly 100,000 units per year and a diesel engine plant with
an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on
Maruti Udyog Limited's (MUL) share of the Indian passenger vehicle market had been
dropping off considerably after the globalization of the Indian market. The future of MUL's
low-cost model - the Maruti 800 (M-800) - was now at stake with the international
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M-800 had dominated the Indian car market since it was launched in 1984. The introduction
of new cars by competitors made the M-800 look obsolete as it had not been changed in any
major way for over two decades. Apart from the increased competition, MUL also had a few
There was a delay in setting up of a plant in India for manufacturing diesel engines and
transmission systems for cars. The engines for its diesel variants were imported from other
countries, and there were limits on the quantities it could import. In the market, MUL's
models like the Zen, Alto, WagonR, and Baleno were showing mixed results.
While Zen, Alto and WagonR were successful, Baleno failed to live up to MUL's
expectations. Its utility vehicle 'Versa' met with a disastrous response from the Indian
consumer. In addition, rising incomes, the growth in the used-car market, and availability of
easier finance options, led customers to shift their allegiance to other models from
competitors. To reduce its excessive dependence on a single model (M-800), the company
had restructured the strategy for the M-800, and planned for product upgrades and new
product development. In tune with changing customer preferences, the company launched its
hatch-back model, 'Swift' in May 2005, to compete with Hyundai Getz and Fiat Palio.
MUL hoped this model would help the company shed its low-cost and simple look. The move
expressed the company's intent to move up the value pyramid (by upgrading Alto-WagonR-
Santro customers to the new model) while simultaneously increasing market penetration at
the bottom of the value pyramid by making the M-800 more affordable.
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Type Public (BSE Maruti, NSE Maruti)
Founded 1981
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INDIAN AUTOMOBILE INDUSTRY
The Indian automobile industry has four major segments - commercial vehicles (CVs),
passenger vehicles, three wheelers, and two wheelers. The market share for each of these
segments of the Indian automobile industry, for the year 2003-04, is shown in Figure I.
According to the Society of Indian Automobile Manufacturers (SIAM), the Indian passenger
vehicle market has three categories -- passenger cars, multi-purpose vehicles (MPVs), and
The passenger car market is further divided into various segments based on the length of the
car (Refer to Exhibit II for a detailed description of the lengthwise classification of passenger
cars.
The Indian automobile industry was a highly protected slow-growth industry with very few
players till the opening up of the Indian economy in 1991. Low manufacturing costs,
availability of skilled labour, an organized component industry, and the capability to supply
in large volumes attracted global auto majors to set up their operations in India after the
For example, Fiat and DaimlerChrysler started outsourcing their component requirements to
India. 100 percent Indian subsidiaries of global players, like Delphi Automotive Systems and
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Macroeconomic factors like government regulations, low interest rates, and availability of
retail finance played an important role in the rapid development of the automobile industry in
India during the late nineties (Refer to Exhibit III for an understanding of the impact of the
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TIMELINE OF INDIAN AUTOMOBILE
INDUSTRY:
1897 First Person to own a car in India - Mr Foster of M/s Crompton Greaves
Company, Mumbai
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1948 Standard Motors
1994 Opel
2003 Chevrolet
2005 BMW
2007 Audi
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2009 Land rover and jaguar
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MILESTONES OF MARUTI SUZUKI LTD.
1980s
This was the time when scooter had a waiting period, industrial production was licensed. The
1981
Maruti Udyog Ltd was incorporated under the provisions of the Indian companies Act, 1956.
The government of India selected Suzuki Motor Corporation as the joint venture partner.
1982
The JV was signed between government of India and Suzuki Corporation. The company born
1983
Maruti 800, a 796 cc hatchback, India’s first affordable car launched. The company went into
Mr. Harpal Singh, the owner of the first Maruti still drives the car after 25 years.
1984
15
During a time when business was booming and people needed better ways to transport,
Maruti Omni provided a great advantage- it was very spacious, yet stylish enough to carry
people too.
1985
India was evolving and so did the people. Maruti gypsy was India’s first off-road vehicle and
is still the best to do the ‘Raid de Himalaya’. Maruti gypsy (970cc, 4wd off-road vehicle)
launched.
1987
In its bid to go International way back in 1987, Maruti sent its first lot of 500 cars to
Hungary.
1987-88
Engineering Export Promotion Council (EEPC) Award awarded for the second year.
1989
Engineering Export Promotion Council (EEPC) Award for the third year.
Early 1990s
The era of liberalization. A time Indian industry had been waiting for long. Manufacturing
becomes very crucial to the economy. It was a time when industry was growing and India
was looking towards the world with renewed vigour, renewed hope.
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1990
Received Engineering Export Promotion Council (EEPC) Award for the fourth year.
1991
Engineering Export Promotional Council (EEPC) Award for the fifth year.
1991-92
1992
Maruti becomes more important to Suzuki in the agenda for growth. Suzuki motor
1992-93
Engineering Export Promotion Council (EEPC) Award for the sixth year.
1993
One of the India’s most favourite cars, the Maruti Zen captured the imagination of people
when it was launched. The 993cc hatchback outlived its lifecycle by many years and still
1993-94
NPC Award.
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Runners Up in best production performance in automobile industry
Engineering Export Promotion Council (EEPC) Award for the seventh year
1994
1994-95
Engineering Export Promotion Council (EEPC) Award for the eighth year
Late 1990s
The late 90s was a buzz of activity for Maruti. While Maruti was a market leader at the
beginning of the 90s, competition coming in with new products gave a new twist to the
situation. The company had to respond to the situation with going back to its fundamentals.
The customer was the key and the company looked at implementing various initiatives to
delight the customer. The results became evident in 2000 and further. Maruti is, until today,
1995
Indian national suggestion scheme association (INSSAN) Award for the second year.
ISO-9002 Certificate
1996
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Certificate of significant achievement under the CII Business excellence award was given.
1996-97
National Export Award, for excellence in exports in the Engineering Goods category ( motor
1997
Maruti service master (MSM) launched as model workshop in India; achieved highest
MUL has been granted STAR TRADING HOUSE STATUS w.e.f. 01/04/96 to 31/03/99 by
ministry of commerce based on export performance of MUL in last 3 years. Our objective is
1998
1999
MSIL was certified for establishing and maintain EMS as per ISO 14001:1996 standards in
1999.
2000
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JD power customer satisfaction award received.
IDTR ( Institute of Driving Training and Research ) launched jointly with the Delhi
2001
No. 1 in customer satisfaction in J.D. Power Survey award for the second year.
2002
Divestment- Suzuki motor corporation (SMC) acquires majority stake in MUL (increases to
54.2%)
No. 1 in customer satisfaction in J.D. power survey award for the third year.
MSIL was re-certified for establishing and maintaining EMS as per ISO 14001:1996
standards in 2002.
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2003
No. 1 in customer satisfaction in J.D. power survey award for the fourth year.
2004
No.1 in sales satisfaction index in J.D. power survey award for the fifth year.
2005
2007
manesar, Haryana
Sx4 luxury sedan launched with the tag line “Men are back”
Maruti launches Grand Vitara.
The company name changed from Maruti Udyog ltd to Maruti Suzuki India ltd
Maruti joins hands with the Gujarat government to set up Driving and Technical
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India customer satisfaction index award.
India automotive performance, execution and layout study (APEAL) award.
India initial quality study.
2008
the automobile sector. The awards are instituted by Avaya global connect and The
Economic Times in association with Ernest & Young and AC Nielsen. Professor M.
methodology.
TV-18 Autocar Mid Size car ward – SX 4
CNBC TV-18 Autocar Value for money – SX 4
CNBC TV -18 Autocar award for viewers choice – SX 4
CNBC TV -18 Autocar manufacturer award – Maruti Suzuki.
CNBC TV -18 Autocar man of the year – Jagdish Khattar.
Alto crosses one million mark.
MoU signed with Adani’s for setting up mega car terminal at mundra
Swift crosses the 250,000 sales units.
Swift DZire launched.
Launch of M800 LPG.
Maruti Suzuki features among the world’s 200 most reputed companies in the annual
worlds’s most reputed company survey -2008. In the passenger car sector, Maruti
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2009
the year.
Special commendation to the Indian auto industry : a tribute to MSIL’s silver jubilee
Signs MoU with Haryana Govt. To set up manage and run two IDTR’s in Haryana
Swift smiles: 300,000 milestone.
Fastest car model to reach the 3-lakh milestone.
Launched in May 2005, the sporty car achieved this fest in only three years and eight
months.
Online club called ‘Swift Life’ for all swift-owners.
50th Maruti Driving School unveils.
A-star or Suzuki alto debuts at Geneva Motor show sales begin at EU.
Capacity to manufacture expanded from 800,000 to a million units annually.
The annual sales in 2008-09 is the highest ever by the company in its 25 year history
2008-09 marked Maruti Suzuki’s silver jubilee year in India.
Maruti Suzuki unveils new Ritz K12M engine at Gurgaon plant.
The 2008-09 export numbers, the highest ever by the company was led by A-star, the
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INCREASING SMALL CAR SEGMENT
1. Small car segment constitute 80 % of the total passenger cars. The total worth of car
industry in terms of annual sales turnover of approx. 10,000 crores. So the size and
worth of the small car market in India makes is highly lucrative preposition.
2. Maruti Suzuki ltd. is the market leader in the car industry in India and has more than
half of the market share. But the new global entrants are changing their company
strategies to capture the Indian market. They are indulging themselves more in the
small car segment. International car makers have entered the Indian market with an
prices. Demand of fuel efficient cars has increased worldwide; therefore more
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4. The share of Maruti Suzuki in the Indian market;
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AUTOMOBILES
Maruti 800: Launched - 1983
Maruti Omni: Launched - 1984
Maruti Gypsy: Launched - 1985
Maruti Zen: Launched-1993
Maruti Alto: Launched - 2000
Maruti Wagon-R: Launched - 2002
Maruti Versa: Launched - 2003
Maruti Grand Vitara: Launched - 2004
Maruti Suzuki Swift: Launched - 2005
Maruti Zen Estilo: Launched - 2006
Maruti Suzuki SX4: Launched - 2007
Maruti Swift Dzire: Launched - 2008
Maruti A-Star: Launched - 2008
Maruti Suzuki Ritz: Launched - 2009
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MARUTI 800
The 800 has undergone some minor face lifts but overall it still remains the same as it was in
1984. The car has reported slipping sales in recent times, mainly due to the introduction of
the Alto at a comparable price. The car produces approximately 37 bhp (28 kW; 38 PS) of
power and runs on 12 inch wheels. Curb weight is 650 kg (1433 lb) and 4 passengers
(including the driver) fit in. Top speed is in the region of 125 km/h (78 mph) and the car is
known to deliver fuel economy better than 20 km/l (47 mpg) on clear and plain roads. Maruti
Suzuki had earlier launched a version with a 4 valves per cylinder engine producing 45 bhp
(34 kW; 46 PS) coupled with a 5-speed manual transmission (currently found in the Suzuki
Alto) but discontinued it after a couple of years.
A Euro III emission compliant version of the car was released in 2005 in India.
The Maruti 800 is still popularly hailed in India as "the smallest car in production" due to its
relatively tightly spaced interior. Its main competitor is the cheaper Tata Nano (123,000
compared to 184,641 Rupees) which has an 8 percent smaller exterior size and a 23 percent
larger interior space.
MARUTI OMNI
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The Maruti Omni is a
microvan. 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. Later
version of the Omni
includes the:
Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle
Omni XL - 1999, same engine, modified with a higher roof.
Omni Cargo LPG - 2004, created to answer the growing popularity of this car
being used as an inter-city cargo vehicle.
Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG Kit,
authorised by the Indian RTOs (Regional Transport Offices). This makes it the
most economic 4 wheeler in India, as far as the driving costs are concerned.
Omni Ambulance - A Modified E version into an ambulance vehicle. This is
the most common type of ambulances found in Indian cities.
The Omni could be divided into two categories: the family version and the cargo version. The
newer family version has two extra seats directly behind the front seating and facing away
towards the rear of the van making it an eight seater. (Older versions were modified by
individual owners to add additional capacity this way). The cargo version is completely
devoid of back seats. Both versions have sliding back doors and hatchbacks. The Omni is also
unique in a way that it uses a front mid engine rear wheel drive layout, as it helps in
maximizing cabin and cargo space and providing maximum traction.
MARUTI GYPSY
The Maruti Gypsy is a four wheel
drive SUV based on the Suzuki
Jimny SJ series long wheel base
jeep.
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Produced in India, it is also a common sight in Chile and Kenya. Within Europe, it is most
often found in Malta and Hungary. In contrast to the Suzuki, the Maruti is available with 4
seats and a sizeable trunk. The Maruti Gypsy is available as a "soft top", "hard top” and as an
"ambulance car". In India, it is widely used by the police and defence forces. In fact, the MG-
413 model is now the mainstay of the Indian Army. In civilian use, the Gypsy is a popular
choice as a low-cost SUV and is a common sight at rally events.
The Maruti Gypsy is a bare-bone, utilitarian SUV. It features almost no creature comforts,
like power-windows and power-assisted steering. As quoted by Autocar India, "There is
nothing that can touch a Gypsy off the road, except perhaps an Arjun battle tank. The trouble
is that everything else does better on the road - the ride from the archaic leaf springs all round
is horribly bumpy and the interiors are utilitarian as well. And available with only two doors,
it’s inconvenient too." The price of a new Maruti Gypsy, if purchased in India, is US $12,500
(5,00,000 INR in 2008). As a 4x4 at this price point, it’s only Indian competitors are sold by
Mahindra and Force Motors. The petrol engine in the Gypsy is also much more refined than
the diesel mills used in the cars from the two aforementioned companies. As a result, the
Gypsy is developing into a very popular vehicle in its category. However, as of date, the
Gypsy is available on order only against a 100% advance payment with a waiting period of
over 3 months. This has led to the creation of a strong market for used Maruti Gypsies.
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MARUTI ZEN
The Maruti Zen is a 5-door hatchback
produced and sold in India. 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. It also
stands for the Japanese word "Zen" which
derives from the Sanskrit word "Dhyana"
and means "To figure out something by
meditation or by a sudden flash of
enlightenment."
Also sold as Suzuki Cervo Mode, in many parts of the world a blockbuster in its segment, the
first generation Maruti Zen was introduced in 1993. In Europe, the car was sold as the Suzuki
Alto. In 2000 its cost (of LX model) was around Rs 3,80,000. 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.
Zen had a diesel variant which used the Peugeot's TUD5 (PSA TU engine) engine.
The Zen quickly became a hit with the Indian Racing Scene, highly modified versions of the
993 cc G10B engine topping 100+ Bhp.
In June 2003, a three door sports version of the Zen in VXi segment was launched, prices at
3.9 Lakh (ex-showroom, New Delhi); there were two models released which differed only in
colors 1. Zen Carbon (black) 2. Zen Steel (silver)
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MARUTI ALTO
The Maruti Alto is a city car
manufactured by Maruti Suzuki in
India. It was launched in the local
Indian market on September 27,
2000 although the Maruti Alto
brand name was very successfully
being used to export the Maruti
Zen to Europe from India since
around 1994 having captured over
40% market share in Belgium and
33% in Netherlands by 1998. 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
February 2008 becoming the 3rd Maruti model to cross the million mark in India after
Maruti 800 and Maruti Omni and 4th overall joining Hyundai Santro. Besides being exported
to Europe from 1994-2004, it has also been exported to several other countries.
Base model - (non-ac, launched in 2004, Mumbai price approx. 2.4 lakh Rs. as of
December 2008)
LX - Base model with A/c, cup holders, fabric seats , remote fuel lid opener and few
small changes, Mumbai price approx. 2.7-2.75 lakh Rs. as of December 2008
LXi - Same as LX with power steering, Mumbai price 2.85-2.9 lakh Rs. as of
December 2008)
There used to be a VX/VXi model with a 4-cylinder 1061 cc engine (64 bhp/80 Nm torque)
launched in August 2001. This has now been discontinued. But this VX model is still sold in
certain European countries. The Alto VX model also featured a tachometer which was absent
in LX model. All models are equipped with 5-speed manual transmission.
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MARUTI WAGON-R
The Maruti Wagon-R is a made-for-India
version of Suzuki Wagon R. Maruti Suzuki
India Limited has recently revamped its looks
and introduced a new look WagonR which
sheds the boxy look at the back.
Maruti's launch of the car was ill-timed. Despite being one of the world's first tall-boy
designs (along with models from Daihatsu and Daewoo), the Wagon-R was not first-to-
market in India.
A less avant garde version of the Hyundai Atos was the first tall-boy design to hit the Indian
roads. It preceded the Maruti-Suzuki Wagon R by a two year lead.
The car comes with a variety of trim levels. These include the LX (sans power steering), LXi
(power steering), VXi (fully loaded) and the AX (automatic). The car normally comes with a
5-speed manual transmission and seats 4 (including the driver) comfortably.
The Wagon R's bread-box shape did not immediately cut ice with the Indian consumer and
the car saw slow sales initially.
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MARUTI VERSA
The Maruti Versa is a microvan produced
by Maruti Suzuki and sold in India since
October 2001. It is the second van released
by Maruti Suzuki since the Maruti Omni
was released in 1984. About seventy
percent of the vehicle components are
made within India.
The Versa has a 16-valve, 1.3-liter 4-cylinder engine generating 82 hp (61 kW) at 6000 rpm.
It is controlled by a 16-bit engine management system.
A curb weight of 985 kg (2,172 lb) gives it a high power / weight ratio. The Versa can reach
from 0-60 mph in 13.5 seconds. The initial target audience for this vehicle were customer
who planned to buy a sedan like the Maruti Esteem or a utility vehicle like Tata Sumo. The
82 bhp (61 kW) engine is located under the front seat.
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SUZUKI GRAND VITARA
The first-generation Grand Vitara
was a slightly larger, pricier and
more powerful version of the
Suzuki Vitara 4-door.
It was facelifted in 2002 and again
in 2004. A rebadged version was
sold in North America by General
Motors as the Chevrolet Tracker.
The Tracker is sold in Latin
America, but Mexico, as Chevrolet
Grand Vitara. In Mexico, Grand
Vitara and Tracker are different
vehicles, sold by Suzuki and
Chevrolet respectively. In Chile, 5-
door Grand Vitara is known as Grand Nomade.
As of 2003, the smaller Suzuki Vitara has been withdrawn from the North American market.
Sales were slow, with just 4,860 sold in 2004 for the United States. In Canada, sales were
strong. All North American Vitaras were built at CAMI Automotive in Ingersoll, Ontario,
while the North American Grand Vitaras were built in Japan, where it is the Suzuki Escudo.
The 2006 model has had a structural redesign with a new ladder-boxed chassis integrated into
a unibody construction. In India, it is sold by Suzuki's Indian subsidiary, Maruti Suzuki.
The new Grand Vitara 2.4 comes reloaded with a 2.4 litre VVT (Variable Valve Timing)
engine that delivers a maximum power of 163.5 bhp @ 6000 rpm and a torque of 225 NM @
4000 rpm. The VVT engine on the new Grand Vitara 2.4 delivers a balanced mix of power
and efficiency.
The Suzuki Grand Vitara SUV range has always been loved by the customers for its style and
handling as well as its off-road capabilities. The new Grand Vitara 2.4 answers the customer’s
need for more power.
An All-time, 4-mode, 4-Wheel Drive (4WD) continues to ensure effective control across
terrains. Disc brakes in the rear wheels, that ensure superior braking, provide additional
safety dimension to the Grand Vitara 2.4.
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MARUTI SUZUKI SWIFT
The swift has set new
benchmarks for those who love
cars. In style. In technology. In
performance. In handling. And
sheer spirit. There is no other car
like it. And the more Swift
owners there are, the more swift
owners they create. Resulting in
its ever-increasing popularity.
The diesel variant of Swift
comes with DDiS engine – The
best engine in the world as it is
called. It is like no other diesel engine which delivers so much performance, fuel-efficiency,
driving pleasure and durability or such low noise and vibration levels.
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MARUTI ZEN ESTILO
Originally manufactured by Suzuki, for the
Japanese market only, under the name
Suzuki MR Wagon, was launched in India
by Maruti Suzuki in 2006 as Zen Estilo. It
was also marketed in Japan by Nissan as the
Nissan Moco under an OEM agreement. It
is a mini MPV (multi purpose vehicle).
The car has been launched with in three variants LX, LXi and VXi, with VXi being the
highest model.
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MARUTI SUZUKI SX4
Designed by Giorgetto Giugiaro's
Italdesign studio, the SX4
replaces the Aerio (some markets
called Liana). The "SX 4"
designation was used by
American Motors (AMC) for a
sporty liftback model in its all-
wheel drive AMC Eagle
passenger cars.
Although originally intended solely for the European market, the SX4 is sold in Japan, India,
South America, Australia, South Africa, as well as North America. It was introduced at the
2006 Geneva Motor Show and is manufactured at the Magyar Suzuki plant in Esztergom,
Hungary, in Japan and also at the plant in Manesar, India. An expected 60,000 units will be
produced — 2/3 to be sold by Suzuki and 1/3 by Fiat, badged as the Sedici.
It is manufactured, marketed and sold in India by Maruti Suzuki. It has been launched in two
variants VXi and Zxi.
It has won the best mid size car award – two years in a rom – 2008 & 2009.
Also won the viewers’s choice- car of the year award 2008.
Best value for money award 2008.
NDTV profit car & bike awards 2008.
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MARUTI SWIFT DZIRE
Maruti Swift Dzire is the new entry level sedan
from Indian automaker Maruti Suzuki. Launched
on March 26 2008, Maruti DZire is based on the
popular Maruti Swift platform. The DZire
replaces Maruti Suzuki’s popular entry level
sedan, Maruti Suzuki Esteem, production of
which was discontinued in late 2007. Maruti
Suzuki has introduced DZire only in the Indian
market.
The car is pitted against the other entry level sedans in the Indian market, such as the
Mahindra Renault Logan and the Tata Indigo.
The Dzire has become infamous for delivery delays as the number of cars being booked is
large. The price of the car and the features offered are very attractive compared to the entry-
level sedan competition (in India), resulting in large number of bookings. The diesel version
of the Dzire, in particular, had delivery times extending from 4 to 6 months.
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MARUTI A-STAR
The Maruti Suzuki A-Star (Known outside
India as Suzuki Alto and Nissan Pixo) is a
small car launched in December 2008. It
is the next generation Suzuki Alto and is
exported worldwide. The car was rolled
out to the Indian customers in December
2008 and exports began in April 2009.
With a totally new body and engine, Maruti hopes to bring freshness to the Indian car market,
of which it already holds a major share. Initial reviews have been positive. It has a fresh new
dash board, with a unique protruding tachometer besides the usual meter cowl (Only in the
ZXi trim).It is the fourth model after Swift, SX4 and Grand Vitara which has helped Maruti
to make stylish cars, something which it was unknown for during older models.
Though the drive is comfortable for the front row, rear seating is a little small for taller
passengers. The interiors have been reported to be a bit cramped as compared to the Hyundai
i10, its closest competitor. It has the new K10B series engine which Suzuki says is
technically highly developed and gives a balance of fuel efficiency and power. The ZXi is the
fully loaded version with all the expected features like power windows, central lock, ABS,
rear wiper, fog lamps, CD player, airbags etc.
It is claimed to be the only car which will be available in 200 variants. It has won Best Small
car award 2009 from Autocar and Topgear. Technology of the Year from Overdrive.
39
The Suzuki Splash (marketed as Ritz in
India) is a city car introduced in year 2008
and jointly developed between Suzuki
Motor Corporation and Opel — which
will also market their version as the Agila.
It debuted as a concept car at the 2006
Paris Auto Show and the production
model debuted at the 2007 Frankfurt Auto
Show. The Splash is slotted below the
Swift in the line-up, and uses a shortened
wheelbase version of its chassis.
It was introduced to the Japanese market on 20 October 2008, available as Splash 1.2 for
¥1,239,000. Maruti Suzuki has now introduced it in India(Suzuki's largest market) as Ritz.
Maruti Ritz is specifically designed to keep the following points above others in the same car
segment -
Style
Design
Mileage
Luxury
Maruti has specially taken care of the suspension in this new car. Ritz has successfully
tackled the uneven Indian roads during the test run. The suspension has been raised than
Swift. It has also been softened to offer more ease while riding. The ground clearance is 170
mm, more than required for Indian roads.
Both the variation of engine can accomplish BS - IV norm, the first among Indian cars.
With all these riding pleasures, Maruti Ritz is surely going to stun the Indian car market.
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Maruti Suzuki has two state-of-the-art manufacturing plant in India. The first facility is at
Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in
North India.
Maruti Suzuki's plant in Gurgaon houses three fully integrated plants. While the three plants
have a total installed capacity of 350,000 cars per year, several productivity improvements or
shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000
The entire facility is equipped with more than 150 robots, out of which 71 have been
developed in-house. More than 50 per cent of our shop floor employees have been trained in
Japan.
The `K' family engine plant has an installed annual capacity of 240,000 engines and was
commissioned in 2008.
Spread over an area of 20,300 m2, the `K' family engine facility is part of the Rs 9,000 crore
The next generation `K' engine like all Maruti Suzuki earlier technologies is highly fuel
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It will take the engine technology to the next level in India. A-Star is the first car to be
powered by `K' family engine. The forthcoming models will be powered by other `K' family
engines.
The in-line plant layout consisting of Casting, Machining and Assembly processes has high
level of automation, effective material handling and inventory reduction techniques in place,
The facility employs global manufacturing best practices like cold testing, 100% on line
Our Manesar plant has been made to suit Suzuki Motor Corporation (SMC) and Maruti
At present the plant rolls out World Strategic Models Swift, A-star & SX4 and DZire. The
There is a high degree of automation and robotic control in the press shop, weld shop and
paint shop to carry on manufacturing work with acute precision and high quality.
The plant is designed to be flexible: diverse car models can be made here conveniently owing
to automatic tool changers, centralized weld control system and numerical control machines
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The plant at Manesar is the company's fourth car assembly plant and started with an initial
capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October
2008.
Suzuki powertrain India limited the diesel engine plant at Manesar is SMC’s & Maruti’s first
and perhaps the only plant designed to produce world class diesel engine and transmissions
for cars.
The plant is under a joint venture company, called Suzuki powertrain India limited (SPIL) in
The facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be
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SWOT ANALYSIS OF MARUTI SUZUKI
STRENGTHS
1. COST LEADERSHIP;
Maruti Suzuki limited has the best value chain with localized sourcing, economies of
scale and huge production volume which in has in fact always materialized in sales
volume completely. With a fully depreciated plant its investment per car manufactured
is around Rs. 40,000 where as it is Rs. 2-3 lakh for its competitors due to new plants
and developing value chains. It has perfected the supplier and vendor base who in past
have always had assured sales. This materializes in huge advantage of price rendering
2. LEARNING CURVE;
Maruti Suzuki ltd. has traversed through the learning curve in last 15 years giving it a
deep insight into Indian consumers psyche, buying behaviour and his needs, wants &
desires. This also makes Maruti Suzuki very well aware of intricacies of the Indian
small car market. It’s huge strength provided it serves as a platform for evolving
service stations. With company’s authorized service outlets spread across the whole
nation, any customer is never far away from these whenever and wherever the need
arises. Some of the key initiatives of the company involve the car pickup and delivery
facility for women car owners. Another unique initiative is the door step service
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facility through Maruti Mobile support. The company has also worked on an anti-theft
which is world for highly efficient low cost cars gives it a perfect technology
provider. It makes all the contemporary technology readily available to it. This gives
the company a state of art manufacturing equipment and thereby provides strength of
This has proven to be beneficiary of the company. Foreign players didn’t enter the
Indian market till early 1990’s. This interval of more than a decade helped Maruti
Suzuki to secure a customer base in every sector of the economy particularly the
middle classes.
6. GOVERNMENT SUPPORT;
Maruti Suzuki has always relished government support because of it being a
government initiative. And this support still continues because of the company being
one of the largest public sector company in India. Also the support provides with
financial stability in case of dire situations which till now have not materialized.
awareness. This coupled with superior performance of quality models like 800, zen,
esteem, alto backed up by low maintenance cost, easy availability of spare parts and
extensive distribution and services outlets has given a strong brand power to the
company.
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WEAKNESS
OPPORTUNITY
Maruti Suzuki has great opportunity in tapping the fast increasing Indian middle class
on virtue of its price leadership, strong brand equity and quality products.
THREATS
1. The biggest and the latest threat to the small car sector of Maruti Suzuki ltd. is the
Tata motors’ Nano. With a price tag of Rs. 1 lakh it aims at capturing the Indian
increase its customer base. This requires a huge amount of capital. But with economic
company, hence the company will have to be very careful in such large investment.
3. After the globalization of Indian economy many foreign players have entered the
market. And with them they have brought the highest technological standards. This
have raised the level of competition in the market hence it is highly important that the
company maintains its high standards and keep providing the best value for money.
4. The increasing prices of fuel in the international market have lead to the requirements
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NET SALES
NET SALES AND PROFIT AFTER TAX FOR THE LAST 8 YEARS HAVE SHOWN
PROFITS FOR THE YEAR 2008-2009 HAVE DIPPED A LITTLE BECAUSE OF THE
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PROFIT AFTER TAX
THE FOLLOWING GRAPH SHOWS THE INCREASING PAT (PROFIT AFTER TAX)
AND EBITA (EARNINGS BEFORE INTEREST TAX AND AMORTIZATION) TILL FOR
THE LAST SEVEN YEARS EXPECT THE LAST FINANCIAL YEAR OF 2008-2009,
GLOBAL DEPRESSION.
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SALES AND EXPORT
EXPORT. THIS GRAPH ALSO SHOWS THE DEVELOPMENT IN THE COMPANY. THE
TOTAL PRODUCTION HAS REACHED NEARLY 0.8 MILLION IN THE YEAR 2008-
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MARKET SHARE
DECADE NOW, WITH A FEW YEARS IN BETWEEN WHEN A DIP WAS ALSO SEEN
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NETWORK DETAILS
IN THE GRAPH BELOW THE VAST EXPANSE OF MARUTI SUZUKI IN INDIA CAN
FOR THE LAST 5 YEARS. THIS CAN BE CALLED A VERY IMPORTANT REASON
WHY THE COMPANY HAS BEEN ABLE TO MAINTAIN MORE THAN 50 % OF THE
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CUSTOMER OBSESSION
Over the last few years ,the company strengthened the existing
These initiatives ranged from product design and quality to network expansion, and included
The company takes great pride in sharing that customers have rated Maruti Suzuki first once
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SUSTAINABILITY EFFORTS
To achieve long-term sustainability and prosperity the company has nurtured a socially
Since inception, the company has proactively taken care of the needs and sustainable growth
of its stakeholders and they in turn, have supported the company in achieving its vision and
business results year after year. As a result, sustainability has become an integral part of the
MSIL was first certified for establishing and maintaining EMS as per ISO 14001:1996
standards in 1999.
MSIL was re-certified for the same in 2002.
MSIL has changed its EMS from ISO 14001:1996 version to ISO 14001:2004 version
Awards
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World Environment Foundation has awarded World environment foundation has
2007.
Renewable energy department, Haryana Government has awarded first prize for
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MARUTI AND ROAD SAFETY
Maruti Suzuki has been playing a leading role for many years now in promoting road safety
and safe driving in the country. The company believes that in addition to fund support, one of
the best ways for corporates to fulfil their social responsibility is by offering their managerial
skills to society.
Taking forward its commitment to Road Safety, Maruti Suzuki has adopted a National Road
Safety Mission.
Train 500,000 people in safe driving in the next 3 years across India.
While utilizing the existing 2 Institutes of Driving Training and Research (IDTR) in
Delhi and the 51 Maruti Driving Schools (MDS) across the country the company
will enter into partnerships with state governments for more IDTRs and with its
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INSTITUTE OF DRIVING TRAINING
AND RESEARCH
The first major step towards promoting road safety was in the year 2000 when Delhi
Government invited Maruti Suzuki to manage the Institute of Driving Training and Research
(IDTR) and start driving training courses. The company introduced training facilities and
infrastructure including world-class driving test tracks, advanced computer simulators and
training modules as per international standards at the institute, which is spread over an area of
14.5 acres. Regular research in road safety and safe driving was also started at the institute. In
2006, the second IDTR was set up to promote road safety by primarily targeting non-
commercial drivers and impart driving training to them. This institute is also equipped with
the same facilities and infrastructure as made available in the first IDTR.
Upcoming facilities
In addition to the two operational IDTRs in Delhi, Maruti Suzuki has an extensive plan to
Gujarati
Some recent initiatives include signing an MoU with the Government of Gujarat, to set up,
manage and run The Gujarat Regional Automobile Training Institute ( to be referred as
GUJARATI) at Gajadara village of Waghodia taluka in Vadodara district. This facility will
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not only provide driving training to tribal youth, it will also offer automobile technical
In a similar arrangement, Maruti Suzuki has also signed MoU with Government of
Uttarakhand to set up, manage and run Uttarakhand's first and only Motor Driving Institute
Another interesting alliance in this direction was signed with Government of Haryana to set
up manage and run two Institutes of Driving and Traffic Research at Bahadurgarh and
Rohtak. The two institutes will form an integral part of Maruti Suzuki's ongoing corporate
social responsibility initiative - the National Road Safety Mission, announced in December
2008. Under the National Road Safety Mission (NRSM) the company plans to train 5 lakh
While the state-of-the-art Bahadurgarh IDTR is spread over 12 acres, the Rohtak facility
sprawls 17.5 acres. Both the institutes will offer class room training as well as test tracks for
enhancing driving skills. Maruti Suzuki will, in fact, bring in advanced training module that
is based on international lines. Advanced driving simulators will help impart training in safe
these facilities would also house a 'vehicle tester line' for vehicle fitness which would
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Once fully operational, these two IDTRs are expected to train around 3,000 candidates
monthly in road safety. Maruti Suzuki presently operates two IDTRs in Delhi and trains
Maruti Suzuki has involved its vast dealer network in promoting road safety and safe driving.
In collaboration with the dealers, the company has set up 51 Maruti Driving schools (MDS)
in 45 locations across the country. The MDS too are equipped with driving simulators. One of
the unique features at MDS is that it also has women trainers. All trainers at MDS are trained
at the IDTR facilities. MDS network has trained over 52,000 people so far of which over 50
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MARUTI INSURANCE
Maruti Insurance is one of the most renowned car insurance companies in India. The
company has ties up with Bajaj Allianz, National Insurance Company, Royal Sundaram, and
New India Assurance. Car insurance policy of Maruti Insurance is a single solution to all car
insurance needs, which may include instant policy issuance to post accident repairs on near
cash-less basis.
Maruti provides motor insurance for Maruti vehicles only, which excludes Third Party
policies.
Maruti Insurance is available to customers only through Maruti dealer network all
over India.
Maruti Insurance provides insurance for Maruti vehicles up to 7 years old. One of the
biggest plus points of insuring under Maruti Insurance, the vehicle can remain under
The vehicle owners do not have to pay the repair charges. They have to pay for the
dealer all over India. These insurance services may include buying new policy,
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The auto insurance offers a hassle-free and fair claim settlement. The company pays
for payable and the customer does not have to bear the cost of repair or replacement
of auto parts. He or she does not have to go through the hassles of personal
When the customer insures with Maruti Insurance, he or she can get the damaged
vehicles repaired at authorized Maruti dealer workshops where they can be absolutely
When a policy holder is renewing with Maruti Insurance for the first time, the no
claim bonus (NCB) is transferred to Maruti Insurance policy at the time of renewal,
automatically. The policy is issued instantly through the Internet, making it more
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MARUTI TRUE VALUE
Maruti True Value is India No.1 organized pre-owned car brand .True Value is venture of
Unique advantages
Maruti True Value business expands the family of Maruti customers, providing reassurance to
existing Maruti customers about resale of their cars and further emphasizes Maruti s
No one knows your Maruti car better than Maruti - based on this premise; Maruti channelizes
its expertise to ensure that transactions in pre owned cars are transparent and fair. Through
that, the company endeavours to extend the relationship and emotional connect that it enjoys
True Value has transparent and fair evaluation process, which is currently missing in the
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largely unorganized market for pre-owned cars. Maruti True Value processes and systems
ensure that the seller gets the right price and is paid promptly.
Under True Value, the seller has the option to be paid in cash, or get a True Value car in
exchange for a brand new Maruti Suzuki car. True Value category cars bought by Maruti True
True Value Category cars are refurbished in state of art workshops using Maruti Genuine
Parts and by skilled technicians. These cars are then sold through Maruti True Value outlets.
under Maruti True Value is inspected and certified by Maruti Engineers and the Car carries a
one-year warranty and three free services. Convenient finance options are also offered to
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MARUTI AUTO CARD
Maruti Auto Card loyalty program aims at bonding with the customers. Earlier Maruti Suzuki
India ltd. has an agreement with Citibank for the issuance and service of the Maruti Suzuki
Auto Card. But it has now come to an end and now Maruti Suzuki India ltd is in talks with
SBI for the card. Maruti SBI card Auto Card shall be launched very shortly. And w.e.f. from
December 31, 2009 all Maruti Citibank cards will be withdrawn and instead will be issued
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CONCLUSION
From the customer survey and research, it can be concluded that Maruti Suzuki has continued
to be among the favourites of many customers. Maruti Suzuki has been able to maintain the
Maruti Suzuki is one of the most trusted brands of India. Middle income groups still prefer to
have a Second hand Maruti 800 on any new brand because of the features it had. But not only
Maruti 800 but the latest Maruti SX4 and Maruti Swift is being liked by masses. Many are
The Maruti Suzuki have many happy customers, because of the easy accessibility to spare
parts and also many service centres everywhere around. Also to mention that most of the
Maruti customers belong to the middle income groups, hence they can be said to be the target
of the company.
The main competitors of the company are Tata motors (specifically Indica) and Hyundai
The customer preferences are more specifically driven by Fuel Economy, Price & After sales
service.
Advertisements influence the people most about their choices, and it’s the largest source of
information.
Maruti Suzuki has been able to hold its image among the middle income groups as an
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BIBLIOGRAPHY
www.marutisuzuki.com
www.maruti800.com
www.marutiomni.com
www.marutigypsy.com
www.marutialto.com
www.marutiwagonr.com
www.marutiversa.com
www.grandvitaraindia.com
www.marutiswift.com
www.marutizen.com
www.marutisx4.com
www.marutidzire.com
www.marutisuzukiastar.com
www.marutisuzukiritz.com
AutoCar Magazine
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