1.1INTRODUCTION OF INDUSTRY: THE CARThe 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 tri-cycle 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 INDUSTRYIndia 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 & FIGURESIt 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 INDIAA 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, two-wheelers, etc. The industry
can be broadly divided into the Car manufacturing, two-wheeler
manufacturing and heavy vehicle manufacturing units.Theautomotive
industry in Indiais one of the largest in the world and one of the
fastest growing globally. India's passenger car and commercial
vehicle manufacturing industry is theseventh 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 asAsia's fourth largest
exporter ofpassenger cars, behind Japan,South Korea, andThailand.
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 thenation'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, Rs. 3-5
Lakhs
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
PuntoRs. 5-10 Lakhs 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, SafariRs. 10-30 Lakhs Ford
Mondeo, Endeavour Fiat 500 Mahindra XUV500 Tata Aria, Fortuner,
Toyota Corolla Altis Volkswagen Jetta, Beetle, Passat 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,Rs. 30-100 Lakhs 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 &
CLS-Class, GL Porsche Boxster, Cayenne, 911 Carrera & Cayman S
Toyota Land Cruiser Prado Volkswagen Touareg, Phaeton Misubushi
Montero, Lancer Evolution, Rs. 1 3 Crore 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 ItaliaRs. 3 6 Crore
Ferrari 599 GTB Fiorano, FF Rolls Royce Phantom, Phantom Coupe,
Phantom Drophead Coupe, Bentley Azure Maybach 57 S, 62Above 12
Crore Bugatti VeyronThe segregation is made on Ex-Showroom price of
base models. Maruti Suzuki India Limited
TypePublic
Traded asBSE:532500NSE:MARUTIBSE SENSEX Constituent
IndustryAutomotive
Predecessor(s)Maruti Udyog Limited
Founded1981
HeadquartersNew Delhi, India
Key peopleRC Bhargava (Chairman)Kenichi Ayukawa (CEO &
MD)
ProductsAutomobiles
Revenue369.34 billion (US$5.9billion) (2012)
Net income16.81 billion (US$270million) (2012)
Employees6,903 (2011)
ParentSuzuki
Websitewww.marutisuzuki.com
Maruti Suzuki India Limited (/maruti 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[update], 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 SS80History 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[update], 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 servicesCurrent Automobiles ALTO 800 SX4 RITZ
SWIFT
ALTO K10 DZIRE ESTILO WAGONR
OMNI STINGRAY
Imported automobiles
Grand Vitara Kizashi NEW PRODUCT
CIAZ
CELER Discontinued automobiles1. Zen (19932006) Replaced by the
Zen Estilo2. Esteem (19942008) Replaced by the Swift DZire3. Baleno
(19992007) Replaced by the SX4 sedan4. Baleno Altura (19992003)5.
Versa (20012010) Replaced by the Eeco6. Alto (2000-2012) Replaced
by the Alto 8007. 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 Omni2. Omni
(Launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800
and Maruti Eeco3. Gypsy King (launched 1985) India's first
indegenious vehicle and first compact SAV, competes with Mahindra
Thar CRDe, Tata Sumo 4x4 and Force Gurkha4. WagonR (Launched 1999)
Competes with Nissan Micra Active, Maruti A-star and Hyundai i105.
Swift (Launched 2005) Created a Maruti 800 rivalling benchmark,
competes with Tata Vista, Hyundai i20, Skoda Fabia, Volkswagen Polo
and Toyota Etios Liva6. 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 Sunny7. Swift DZire (Launched 2008) Competes with
Mahindra Verito, Toyota Etios, Ford Classic, Mahindra Verito Vibe,
Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza8. A-star
(Launched 2008) Competes with Chevrolet Beat, Nissan Micra Active,
Ford Figo and Maruti Wagon-R Stingray9. Ritz (Launched 2009)
Competes with Maruti Swift, Tata Vista, Hyundai Grand i10, Honda
Brio, Nissan Micra, Renault Pulse and Toyota Etios Liva10. Eeco
(Launched 2010) Stripped down Versa with a lowered roof, in
competition with Tata Venture, Tata Winger Platinum, and in-house
Omni11. Alto K10 (Launched 2010), competes in the economy class
with the Tata Indica, Hindustan Motors Ambassador and Chevrolet
Spark12. 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
2014Manufacturing facilitiesMaruti 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 acresGurgaon manufacturing facilityThe Gurgaon
manufacturing facility has three fully integrated manufacturing
plants and is spread over 300 acres (1.2km2). 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 facilityThe Manesar
manufacturing plant was inaugurated in February 2007 and is spread
over 600 acres (2.4km2). 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 networkAs 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 InsuranceLaunched 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. LimitedThis 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 FinanceTo 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. 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 TrueValueMaruti 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.
AccessoriesMany 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 BangaloreAs
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 problemsOn 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. ExportsMaruti 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 recognitionThe 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 JapaneseautomakerSuzuki 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 Limitedwas renamed
asMaruti Suzuki India Limited. The company's headquarters are
located inNew 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
FLASHBACKMaruti 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 necessaryfor 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
341Maruti True ValueoutletsMARUTI N2N FLEET MANAGEMENT
N2N is the short form ofEnd to End Fleet Managementand provides
lease and fleet management solution to corporate. Clients who have
signed up of this service includeGas 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 nameMaruti
Genuine Accessoriesto 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. AWARDS2013 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
12Th 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 Journal2010 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 Study2009 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 Year2008 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 row2006 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 2005Maruti 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 performancePRODUCTION AND
PRODUCTPRODUCTIONMaruti 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.CostEvery 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.QualityA 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 SYSTEMProduction 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 SustainabilityPMS has entered the fourth phase of
implementation and the results have been overwhelming.Excellence
through participative approachPMS 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 RoleOne 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 StandardizationThrough 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 GainsThese 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 MILESTONE1st
vehicle produced, December 19831,00,000 vehicles produced by
August, 19865,00,000 vehicles produced by June, 199010,00,000
vehicles produced by March, 199415,00,000 vehicles produced by
April, 199620,00,000 vehicles produced by October, 199725,00,000
vehicles produced by March, 199930,00,000 vehicles produced by
June, 200035,00,000 vehicles produced by December 200140,00,000
vehicles produced by April, 200345,00,000 vehicles produced by
April, 200455,00,000 vehicles produced by April, 200566,00,000
vehicles produced by April, 2006And Finally1,00,00,000 vehicles
produced by 12th February, 2012
MANUFACTURING FACILITIESMaruti 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 FacilityTheGurgaonManufacturing
Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2km2). 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 240,000K-Seriesengines
annually. The entire facility is equipped with more than 150
robots, out of which 71 have been developed in-house. The Gurgaon
Facilities manufactures the800,Alto,Wagon
R,Estilo,Omni,GypsyandEeco.Manesar Manufacturing
FacilityTheManesarManufacturing Plant was inaugurated in February
2007 and is spread over 600 acres (2.4km2). 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 theSwift,Swift DZireandCIAZ. MARUTI 800
(CHANGE YOUR LIFE)Maruti 800is acity carmanufactured byMaruti
Suzukiin 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 theMaruti Alto took that title. It is
arebadgedversion of an old model of theSuzuki Alto. Over 2.5
million Maruti 800s have been sold since its launch in 1983. The
same car is sold in Pakistan as theSuzuki Mehranwith 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)TheMaruti Omniis amicrovanmanufactured by
Indian automakerMaruti Suzuki. The first version of Maruti Omni had
796cc engine, same as theMaruti 800city 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.
GYPSYTheMarutiGypsyis afour-wheel-driveSUVbased on the long
wheelbaseSuzuki JimnySJ40/410 series vehicles.It is manufactured
inIndiaby Maruti Suzuki. It was introduced in the Indian market in
December 1985 with the 970ccF10ASuzuki 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 anArjun battle tank.The
ex-showroom price of GYPSY is between Rs.5.21 Lakhs Rs.5.73Lakhs.3.
ZEN (LOOK AT IT)TheMaruti Zenis a 5-doorhatchbackproduced and sold
inIndiaby 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
forZeroEngineNoise. 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)TheMarutiSuzuki Wagon Ris 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 theMaruti Zento Europe from
India.It is the best sellinghatchbackin India. Since 2006, it is
India's largest selling carand 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 1.0L, K-series petrol engine which also
currently powers the A-Star and WagonR.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 withdiesel engineoption.
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
1,248cc.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 largerF10D1.1L MPFI engine that
also powers the Wagon R in theJapanesemarket. 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 Lakhs8. 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 Suzukilaunched SX4 sedan with the 1.6-litre
gasoline engine withoutVVTin 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 acompressed 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 on26thMarch08, 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
DZIREMaruti 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
theMaruti Suzuki A-Star(short for "Alto-Star"), but is also known
as theSuzuki Celerioin some other countries. It was launched in
December 2008 Maruti Suzuki. The car is manufactured exclusively
inHaryana, India and is exported worldwide. It is available in
European markets with a somewhat different front end as theNissan
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,
Estiloand theSwift.The ex-showroom price of A-STAR is between
Rs.3.66 Lakhs Rs.4.50 Lakhs.
11. RITZ (LIVE THE MOMENT)In the Indianautomarket, 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
asa 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 AnalysisSTRENGTHS1. 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.WEAKNESSES1. Lack of experience in
foreign market.2. Comparatively new to diesel cars.3. People
resistant to upper segment models.4. Heavy import tariff on fully
built imported models.5. Exports are not that good.6. Lesser diesel
models in the market compare to others.7. Global image is not that
big.OPPURTUNITIES1. Increased purchasing power of Indian middle
class family.2. Government subsidies.3. Tax Benefits.4. Prospective
buyers from two wheeler segment.5. Great opportunities to go global
with success of Swift and SX4 allover.6. Introduction of more
diesel models. The diesel car segment is growing.7. Opportunity to
grow bigger by entering into bigger car markets.8. Already a market
leader so great opportunity to be the king of market in every stage
of industry.THREATS1. Foreign companies entering market; so a
bigger threat from MNCs.2. Competition from second hand cars &
TATA Nano.3. Threats from Chinese manufactures.4. To the market
share, as many big names are coming in the industry5. There is
hardly any diesel models6. Rs. 1 lakh Rs. 1.5 lakh car
MARKETING MIXMarketing 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.
PRODUCTPRICEPROMOTIONPLACE
BrandPricing strategyPersonal sellingChannel of
distributions
PackagingPricing and qualityAdvertisingPhysical distribution
InnovationsPricing and alternativesPublic relationsWholesaler
and retailers
QualityDiscounts
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 theCo.every month. Any
further discounts made from the profits of the Dealer. However,
theCo.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 theCo.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. TheCo.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. TheCo.takes serious measures to
maintain good public relations. TheCo.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 GujaratSuggested 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 theCo.at a negotiated
price. The MRP is fixed by theCo.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 theCo.itself.
b. Physical Distribution:Thecommercial vehicles are manufactured
atGurgaon 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 CarsMarketing strategyis a
process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and
achieve a sustainablecompetitive advantage. DEVELOPING A MARKET
STRATEGYMarketing strategies serve as the fundamental underpinning
ofmarketing plansdesigned to fill market needs and
reachmarketingobjectives. 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 themarketing planvary 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 themarketing mix, plus performance analysis and
strategic constraints. External environmental factors include
customer analysis,competitor analysis,target marketanalysis, 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 overarchingmission statement. Once a thorough
environmental scan is complete, astrategic plancan 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 STRATEGIESMarketing 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 onmarket 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) Leaderb) Challengerc) Followerd) 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 areDifferentiationandlow-cost leadershipeach 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 andbusiness model innovation. It asks
whether the company is on the cutting edge of technology and
business innovation. There are three types:
a) Pioneersb) Close followersc) Late followers4. 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
integrationb) Vertical integrationc) Diversificationd)
IntensificationA more detailed scheme uses the categories:
Prospector Analyzer Defender Reactor Marketing warfare strategies-
This scheme draws parallels between marketing strategies and
military strategies STRATEGIC MODELSMarketing participants often
employ strategic models and tools to analyze marketing decisions.
When beginning a strategic analysis, the3Cscan 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 theirmarketing mix. The4Pscan 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 MARKETINGReal-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.