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1. To know the past, present and future of Maruti.

2. To know the reason of enormous success of Maruti through the challenging dynamics of Indian Auto Industry.
3. To enhance my knowledge about Maruti Udyog Ltd.

Research Methodology:
Collection of Primary Data Periodicals and Magazines, Books, Internet. Collection of secondary data Interaction with dealers service centers Car owners, workshops, etc.

My project throws a light on Marutis path of success and how it has achieved the distinction of being The best in the business.


In this project I have studied the undisputed king of Indian automobile industry with giving special significance to Maruti Suzuki. I have focused on this organization and have ventured in to as much of detail as possible in my limits.This project covers the profile of the company, right from its inception to its currents status. The objective of doing this project was to study the pioneering journey of Maruti and my keen interest in the automobile industry.

Rationale behind the Study:

I follow automobile and its related fields very keenly and thus I wanted to take a project very closed linked to my interest. It had many topics in it but I zeroed in on an Indian automobile giant- Maruti. `Studying Maruti was great fun since it is such a machine that is in each and every corner of our country. I learnt a lot while working on this project and the knowledge I received is tremendous. I just kept on coming. It was a great experience to learn how Maruti adopted itself to change according to the surroundings and fix its foundation in the Indian Market. The study kept on stimulating me to work more and gain as much as possible, sometimes beyond my capacities, but I am happy I was able to present the epics of Maruti in this small report.

SR.NO PREFACE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Introduction History of automobile industry Introduction of Maruti udyog ltd. A long standing partnership Just the right mix Pleasing the KING Consumer interface Speed and speed breakers Strength and weakness The challenge Journey towards victory Future prospects Conclusion Bibliography and webliography 1 9 20 40 42 51 56 58 64 66 68 70 TOPIC PAGE NO.




1. INTRODUCTION The Beginning of New Era With the invention of the wheel in 4000 BC, mans journey on the road of mechanized transport had begun. Since then he continually sought to devise an automated, labor saving machine to replace the horse. Innumerable attempts reached conclusion in the early 1760s with the building of the first steam driven tractor by a French Captain, Nicolas Jacob Cugnot. It was however left to Karl Benz and Gottlieb Damlier to produce the first vehicles powered by the internal combustion engine in 1885. It was then that the petrol engine was introduced, which made the car a practical and safe proposition. Then onwards, it has been one big journey...on the roads

1.1 Global Scenario The passenger car segment has emerged as a major driving force for upstream industries like steel, iron, aluminum, rubber, plastics, glass, and electronics and down stream industries like advertising and marketing, transport and insurance. The car industry generates large amount of employment opportunities in the economy. For example in the US, every sixth worker is involved in the making of an automobile. The global automotive car market is growing at a rate of only 2 percent per annum and is not expected to pick up in the near term. Growth has dropped due to the increasing levels of saturation in the larger car markets of the world. Worldwide the trend is towards ensuring that one's products are superior in terms of quality. This will enhance the useful life of cars and, hence, slow down growth in sales.The world car production has increased from 44.66 mn in 1996 to an estimated 48.3 mn cars in 1999. Japan, Canada

and USA brought about the major increases, which contribute to 53% of the world's car production. The largest car market - the US market expects car sales to decline 8 to 9 per cent to 16 million cars in 2008, as compared to 17.4 million cars sold in 2000. The USA and Japan are the leaders with around 42% of the total world market. However, since the last two to three years, the international passenger car industry has been witnessing an over capacity of more than 30%. The trend suggests that industry volumes may grow by just 2% or around 10 mn vehicles per year. If this situation continues for the next few years the world car market may witness shakeout in the near future. Already signs towards this are being observed as the phenomenon of mergers catches on. The recent mergers in the international car market are Ford-Volvo, Renault-Nissan, DaimlerChrysler. A few more players are expected to join the fray in the next few years so as to strengthen their hold in the world market. Among the top car manufacturing companies General Motors and Ford Motors group of USA lead with a contribution of 15.8% and 11.6%, of world car production, respectively. Volkswagen and Toyota stand third and fourth with more than 9% contribution each to the world car production. The global domination of the larger automotive manufacturers is slowly on the wane and the trend in sales is shifting towards more "regio-centric" products. Automakers that have been enjoying a generally prosperous spell would have to rethink on the way vehicles are designed, manufactured, distributed or sold. Already, players like General Motors MARUTI and SUZUKI have begun to re-examine their dealer relationships and pricing strategies. Car makers would now have to think in terms of a new customer focus and provide better financing and servicing. Strategic tie-ups, mergers and acquisitions have become the talk of the day. A few instances are Daimler Benz's tie-up with Chrysler of the US, Ford's acquiring of Daewoo and tie up with Volvo Car Corporation and Renault acquiring a stake in Nissan. Such deals will certainly lead to economy in terms of costs but it remains to be seen whether they will also create significant new opportunities for growth.

With global consolidation in the car industry, it is expected that more international players will work closely to bring about operational efficiencies. By nature, the car industry is highly capital-intensive and vast amounts of money are being spent on R&D. With the players getting together to produce more technologically superior cars, they can derive greater benefits from their R&D efforts. Profits, which are under pressure due to wafer thin margins will be boosted due to greater economies of scale. Moreover, bigger capacities among players means lesser fixed costs per car produced. Even if mergers are not on the cards in the near future (one can see that the Daimler-Chrysler merger has not brought about synergies as expected by automobile experts), technology-sharing and the offering of equity stakes is inevitable. In India, the car market has become extremely competitive and come April 2009, India's automobile market will be thrown open to imports of completely built up vehicles, which hitherto was prohibited. With the international acquisitions and alliances, one can expect to see a dramatic change in the auto market. If GM were to acquire Daewoo in Korea, then GM would be in a commanding position in India with its alliance with FIAT and Suzuki motors as well. Already Daimler Chrysler and Ford are contemplating introducing new models in India from their various associate companies through their local subsidiaries. The situation could become very difficult for the purely Indian automakers such as Telco, Mahindra and Hindustan Motors unless they rethink their strategy. It can easily be seen why TELCO has been in the news on rumors that it wants to hive off its car division and bring in an overseas partner. Reports suggest that HM is thinking of exporting parts from its manufacturing units and also assembling and distributing other makes of vehicles who may wish to enter into India, but cannot enter full scale manufacture due to the small market sizes. Clearly exports will be the big opportunity for Indian automobile companies if they can control costs and deliver good quality output. Already Maruti, Hyundai and Ford as well as Mercedes Benz have started exports in a small way and this can grow. Majors like TELCO and Ashok Leyland are already exporting their products in reasonable volumes.

Availability of easy financing options has been a major reason for the dramatic growth the automobile market has witnessed in recent times. Maruti has set up a separate financing unit in association with banks. GM has one of the largest financing companies in the US and can easily bring them into India should it so decide. Clearly the customer is in for some good times with a wide range of models to choose from, better quality and prices and easy financing options - a far cry indeed from the days when one had to book a Premier car and wait for years after paying an advance.

1.2 A Glance on Wheels of Change India had its date with this wonderful vehicle first time in 1898. Then for the next fifty years, cars were imported to satisfy domestic demand. Between 1910 and 20's the automobile industry made a humble beginning by setting up assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling 'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started as a manufacturer of auto components graduated to manufacture cars in 1949. Thanks to the Licence Raj which restricted foreign competitors to enter the Indian car market, Indian roads were ruled by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for many of the initial years.

In 1952, the GOI set up a tariff commission to devise regulations to develop an indigenous automobile industry in the country. After the commission submitted its recommendations, the GOI asked assembly plants, which did not have plans to set up manufacturing facilities, to shut operations. As a result General Motors, Ford and other assemblers closed operations in the country. The year was 1954 and this decision of the government marked a turning point in the history of the Indian car industry. The GOI also had a say in what type of vehicle each manufacturer should make. Therefore, each product was safely cocooned in its own segment with no fears of any impending competition. Also, no new entrant was allowed even though they had plans of a fullfledged manufacturing program. The restrictive set of policies was chiefly aimed at building an indigenous auto industry. However, the restrictions on foreign collaborations led to limitations on import of technology through technical agreements. In the absence of adequate technology and purchasing power, the car industry grew at a snail's pace in the 60s. The demand for cars in 1960 was to the tune of 15,714. In the next two decades the number increased to 30,989 i.e. a CAGR of only 3.5 per cent. The other control imposed on carmakers related to production capacity and distribution. The GOI control even extended to fixation of prices for cars and dealer commissions. This triggered the start of a protracted legal battle in 1969 between some carmakers and GOI. Simply put, the three decades following the establishment of the passenger car industry in India and leading upto the early 1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this period was limited to two models viz. Ambassador and Padmini. It was only in 1985, after the entry of Maruti Udyog, that the car makers were given a free hand to fix the prices of cars, thus, effectively abolishing all controls relating to the pricing of the end product. In the early 80's, a series of liberal policy changes were announced marking another turning point for the automobile industry. The GOI entered the car business, with a 74% stake in Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan. The very face of the industry was changed for ever in 1983 with the entry of

public sector Maruti Udyog in a joint venture with the Suzuki Corporation of Japan. Car sales grew by 42 per cent yoy in 1985 after Maruti 800 was launched. Thanks to MUL car sales registered a CAGR of 18.6 per cent i.e. from 1981 to 1990. In 1985, the GOI announced its famous broadbanding policy which gave new licenses to broad groups of automotive products like two and four-wheeled vehicles. Though a liberal move, the licensing system was still very much intact. MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry. The car was launched as a "peoples car" with a price tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was well accepted by middle income families in the country and its sales increased from 1,200 units in FY84 to more than 200,000 units in FY99. However in FY2000, this figure came down due to rising competition from Hyundai's 'Santro', Telco's Indica and Daewoo's 'Matiz'. MUL extended its product range to include vans, multi-utility vehicles (MUVs) and mid-sized cars. The company has single handedly driven the sales of cars in the country cornering around 79.6% market share. With increasing competition from new entrants, this market share has plummeted to almost 62% in FY2000. A brief 3-year downturn till 1993 and car sales bounced back to register a 17 per cent growth rate in 1997.Since then, the economy slumped into recession and sales of cars remained quite stagnant FY97 and FY99. The Financial year 2000 has, however, been the turnaround year for the Auto industry with the economy looking up. The automobile industry, crossed the half million mark for the first time in FY2000. Overwhelmed by newer models from new and existing players had led to an impressive shift from a constrained supply situation to a surplus one. Within the past decade, about 30 models have entered the Indian market with a number of models still awaiting launch. The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international auto makers into the country with an idea to tap the large population. Also


the lifting of quantitative restrictions on imports by the recent policy is expected to add up to the flurry of foreign cars in to the country. The Indian Automobile industry registered one of the strongest growth rates in FY04. Aided by sustained economic recovery, the industry registered high growth rates in all major segments. The growth story was led by Medium and Heavy Commercial Vehicles (M&HCVs) registering a 40% growth while Light Commercial Vehicles (LCVs) recorded a 32% jump in total sales. Passenger cars also registered an impressive 34% growth in FY04 and total sales volume crossed the 1 million mark for the first time. Interestingly, two wheelers registered the lowest but healthy growth rate of 13% in FY04. While motorcycle volumes tripped on a high base, scooters registered a 10% growth after 4 years of continuous decline. Three wheelers grew by 23% in FY04. Profitability improvements were recorded in companies across segments driven by rise in volumes and lower interest costs to some extent, notwithstanding the rise in prices of certain inputs like steel. Though the peak customs duty had been reduced to 20% in January 2004 and Special Additional Duty was abolished, the domestic industry still enjoys adequate protection, with no import threats. The potential borne by the industry is well exhibited by the growing number of international players setting up base in India and increasing competitiveness in the industry. Many companies have entered the car manufacturing sector, to tap the middle and premium end of car industry.


Figure -Structure of Passenger Vehicle Market (India)

2 .History of Automobile Industry The automobile as we know it was not invented in a single day by a single inventor. The history of the automobile reflects an evolution that took place worldwide. It is estimated that over 100,000 patents created the modern automobile. However, we can point to the


many firsts that occurred along the way. Starting with the first theoretical plans for a motor vehicle that had been drawn up by both Leonardo da Vinci and Isaac Newton. In 1769, the very first self-propelled road vehicle was a military tractor invented by French engineer and mechanic, Nicolas Joseph Cugnot (1725 - 1804). Cugnot used a steam engine to power his vehicle, built under his instructions at the Paris Arsenal by mechanic Brezin. It was used by the French Army to haul artillery at a whopping speed of 2 1/2 kmph on only three wheels. The vehicle had to stop every ten to fifteen minutes to build up steam power. The steam engine and boiler were separate from the rest of the vehicle and placed in the front (see engraving above). The following year (1770), Cugnot built a steam-powered tricycle that carried four passengers. In 1771, Cugnot drove one of his road vehicles into a stone wall, making Cugnot the first person to get into a motor vehicle accident. This was the beginning of bad luck for the inventor. After one of Cugnot's patrons died and the other was exiled, the money for Cugnot's road vehicle experiments ended. Steam engines powered cars by burning fuel that heated water in a boiler, creating steam that expanded and pushed pistons that turned the crankshaft, which then turned the wheels. During the early history of self-propelled vehicles - both road and railroad vehicles were being developed with steam engines. (Cugnot also designed two steam locomotives with engines that never worked well.) Steam engines added so much weight to a vehicle that they proved a poor design for road vehicles; however, steam engines were very successfully used in locomotives. Historians, who accept that early steampowered road vehicles were automobiles, feel that Nicolas Cugnot was the inventor of the first automobile. The automotive industry has certain trends it has to follow, just like fashion designers and musical composers. In times of recession and decreasing sales there is less room to take chances and manufacturers are prone to follow the common pattern as a safer bet rather than releasing a controversial product or idea that might or might not be successful. However throughout the automotive industry's history, great innovators have


"boldly gone where no man has gone before" to set new trends which have dynamically altered the industry as a whole.

1880's & early 1900's

About hundred years ago -The first motor car was imported -Import duty on vehicles was introduced. -Indian Great Royal Road (Predecessor of the Grand Trunk Road) was conceived.

First car brought in India by a princely ruler in 1898. Simpson & Co established in 1840. -They were the first to build a steam car and a steam bus, to attempt motor car manufacture, to build and operate petrol driven passenger service and to import American Chassis in India.

Railways first came to India in 1850's In 1865 Col. Rookes Crompton introduced public transport wagons strapped to and pulled by imported steam road rollers called streamers. The maximum speed of these buses was 33 kms/hr.


From 1888 Motors Spirit attracted a substantial import duty. In 1919 at the end of the war, a large number of military vehicles came on the roads. In 1928 assembly of CKD Trucks and Cars was started by the wholly owned Indian subsidiary of American General Motors in Bombay and in 1930-31 by Canadian Ford Motors in Madras, Bombay and Calcutta In 1935 the proposals of Sir M Visvesvaraya to set up an Automobile Industry were disallowed.

1942 Hindustan Motors Ltd incorporated and their first vehicle was made in 1950. In 1944 Premier Automobiles Ltd incorporated and in 1947 their first vehicle was produced. In 1947 the Government of Bombay accepted a scheme of Bajaj Auto to replace the cycle rickshaw by the auto and assembly started in a couple of years under a license from Piaggio. Manufacturing Programme for the auto and scooter was submitted in 1953 to the Tariff Commission and approved by the Government in 1959.

In 1953 the Government decreed that only firms having a manufacturing programme should be allowed to operate and mere assemblers of imported CKD units be asked to terminate operations in three years.


Government continued with its protectionism policies towards the industry. In 1956, a company entered the Indian market with a program of manufacturing Commercial Vehicles, and Simpson for making engines.


In sixties 2 and 3 Wheeler segment established a foothold in the industry. Escorts and Ideal Jawa entered the field in the beginning of sixties. Association of Indian Automobile Manufacturers formally established in 1960. Standard Motors Products of India Ltd. moved over to the manufacture of Light Commercial Vehicles in 1965.


Major factors affecting the industry's structure were the implementation of MRTP Act, FERA and Oil Shocks of 1973 and 1979. During this decade there was not much change in the four wheeler industry except the entry of Sipani Automobiles in the small car market. Oil Shock of 1973 quickened the process of dieselization of the Commercial Vehicle segment.


Three other companies, namely, Kirloskar Ghatge Patil Auto Ltd, Indian Automotive Ltd and Sen & Pandit Engg products Ltd entered the market during 1971-75. They ultimately withdrew in early eighties.

During the seventies the economy was in bad shape. This and many specific problems affected the Automobile Industry adversely. 1980's - The period of liberalized policy and intense competition

First phase of liberalization announced. Unfair practices of monopoly, oligopoly etc slowly disappeared. Liberalization of the protectionism policies of the Government. Lots of new Foreign Collaborations came up in the eighties. Many companies went in for Japanese collaborations. Hindustan Motors Ltd. in collaboration with Isuzu of Japan introduced the Isuzu truck in early eighties. ALL entered into collaboration with Leyland Vehicles Ltd. for development of integral buses and with Hino Motors of Japan for the manufacture of W Series of Engines.

TELCO after the expiry of its contract with Daimler Benz, indigenously improved the same Benz model and introduced it in the market. Government approved four new firms in the LCV market, namely, DCM, Eicher, Swaraj and Allwyn. They had collaborations with Japanese companies namely, Toyota, Mitsubishi, Mazda and Nissan respectively.

Other three Car manufacturers namely, Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India Ltd. also introduced new models in the market.

Ashok Leyland Ltd. and TELCO were strong players in the Commercial Vehicles sector.


In 1983-84 Bajaj Tempo Ltd. entered into collaboration with Daimler-Benz of Germany for manufacture of LCVs. Important policy changes like relaxation in MRTP and FERA, delicensing of some ancillary products, broad banding of the products, modifications in licensing policy, concessions to private sector (both Indian and Foreign) and foreign collaboration policy etc. resulted in higher growth / better performance of the industry than in the earlier decades.

In 1983 Maruti Udyog Ltd was started in collaboration with Suzuki, a Japanese firm.


Mass Emission Norms were introduced for in 1991 for Petrol Vehicles and in 1992 for Diesel Vehicles.


In 1991 new Industrial Policy was announced. It was the death of the License Raj and the Automobile Industry was allowed to expand.

Further tightening of Emission norms was done in 1996. In 1997 National Highway Policy has been announced which will have a positive impact on the Automobile Industry.

The Indian Automobile market in general and Passenger Cars in particular have witnessed liberalization. Many multinationals like Daewoo, Peugeot, General Motors, Mercedes-Benz, Honda, Hyundai, Toyota, Volvo and Fiat entered the market.

Various companies are coming up with state-of-art models of vehicles.


TELCO has diversified in Passenger Car segment with Indica. At the time there were five Passenger Car manufacturers in India - Maruti Udyog Ltd., Hindustan Motors Ltd., Premier Automobiles Ltd., Standard Motor Production of India Ltd. and Sipani Automobiles.

Despite the adverse trend in the growth of the industry, it is resolutely trying to meet the challenges. Various issues of critical importance to the industry are being dealt with forcefully.

In 2000-2007:


According to World Bank data for 2002, India is the second largest country in the world in terms of population with one of the largest economies in the world in terms of purchasing power parity measured in US dollars. Since fiscal 2000, the GOI has carried out several strategies disinvestments in key PSUs. The notable disinvestments that have been successfully carried out include sale of GOI stakes in Videsh Sanchar Nigam Ltd. And CMC ltd. To the Tata group, Indian petrochemicals corporation ltd. To the reliance group, IBP to Indian Oil Corporation ltd. And Bharat Aluminium company Ltd. And Hindustan Zinc ltd. To sterlite group. In may 2007, Maruti completed a rights issue of its equity shares at Rs. 3280 per rs. 100 share, wherby GOI renounced its equity shares to Suzuki. The price at which the equity shares were offered in the rights issue was determined by taking the average of the valuations provided by three independent firms, KPMG, S B Billimoria and Ernst & Young. In addition, Suzuki paid GOI a control premium of Rs. 10, 000. as a part of its ongoing disinvestments process, GOI has initiated disinvestments in several key sectors such as petroleum and shipping. Most MNCs began their operations in India as joint venture with local partners, examples include Suzuki, GM; Ford and Daewoo. With the exception of Suzuki, these joint ventures have become fully owned subsidies of the foreign partners. In all these cases, the local partners have just not had enough resources to chip in wherever the equity


base has expanded. Consequently, the foreign partner have pumped in the additional capital and raised their equity stakes.

Maruti Escudo


Maruti Udyog Ltd. 3. Introduction: Maruti Udyog Limited is the premier car company in India. Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament. The company entered into collaboration with Suzuki Motor Corporation of Japan to manufacture cars. The main objective behind formation of Maruti Udyog Limited was to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.

Managing director of Maruti Udyog Ltd. Mr. Khattar

Today, Maruti Udyog Limited garners major share of automobile market in India. It has completely revolutionized the Indian car market and has brought out numerous models to


cater to every section of society. These range from economy cars to Luxury cars to super SUVs. MARUTI UDYOG LTD.TODAY: Nineteen years back Maruti introduced the first small car in the Indian auto market. They started with their model Maruti 800 which was very popular at that time and still its major cash cow. The models, which were available at that time, were Premier Padmini and Ambassador. Customers were interested in having some different types of models with some fashionable looks. That was the perfect time to enter into market and Maruti took right step to introduce its different models. Maruti comes in a variety of models in the small segment. The sales figure for the year 1993 reached up to 1,96,820. The company reached a total production of one million vehicles in March 1994 becoming the first Indian Company to cross this milestone. It crossed the two million mark in 1997. To fend off growing competition, Maruti has recently completed a Rs. 4 billion expansion project at the current site, which has increased the total production capacity to over 3,20,000 vehicles per annum. It has further plans to modernize the existing facilities and to expand its capacity by 1, 00,000 units in the year 1998-99. The total production of the company will exceed 4,00,000 vehicles per year. Maruti registered sales of 39,838 units in April 2004, up 38.4% from 28,793 vehicle units in April 2006. This includes 2,910 units of exports compared to 3,150 in April 2009, decreasing by 7.6%.



3.1 HISTORY OF MARUTI UDYOG LIMITED The Early Days The Maruti story began in the early 1980s when scooters had a waiting period and the Indian car customer had limited options. The Government of India identified the need for a small car for the Indian masses, a car that would be economical, environment friendly yet contemporary in technology. In short 'A people's car' A global search for an efficient technology partner resulted in Suzuki -then the leader in small cars in Japan being chosen for the now historical Maruti-Suzuki partnership. Maruti's growth has been synonymous with the Indian auto industry. The inception of Maruti in 1981 saw the growth of many automotive ancillary manufacturers. The company set up a network of component vendors, dealers and service stations and facilitated around 60 technical collaborations for Indian vendors from Japanese, European and even American partners to upgrade technology and quality levels. Along with this came the task of instituting quality processes and systems across this network. Today, the suppliers to Maruti are huge corporations themselves and are today in the global business arena. Through the years, Maruti brought in relevant products to the market even before the market demands were visible. From the very beginning, the growth of Maruti has influenced the growth of the country as a whole. HOW MARUTI UDYOG LIMITED BECAME A WORLD CLASS SMALL CAR GIANT? For a long time since the countrys independence in 1947, India had a protected market, divided between two players, Hindustan Motors and Premier Automobiles. (A third company, Standard Motors remained a marginal player for several years before being wound up). Customers had little choice in what was an extreme version of a sellers 26

market. In the 1980s Indias top politicians felt the need to produce a small car, which would be within the buying reach of the Indian middle class? In the year 1980, Mr.Sanjay Gandhi forced Mrs. Gandhi to start an automobile company, which manufactures 100% Indian car. The opposition didnt let the Parliament work on this issue and would boycott the parliament. Mr. Arun shourie (who is the divestment minister, at present) criticized Mrs. Gandhis government for Sanjays venture and termed MARUTI as MAA ROTO and further stated that Mrs. Gandhi will have to cry for Sanjays venture. After rigorous opposition MUL saw its dawn in 1981 after collaboration with Suzuki motors of Japan. Maruti Udyog Limited (MUL) was established in February 1981 through an act of parliament, to meet the growing demand of a personal mode transport caused by the lack of an efficient public transport system. The GOI entered the car business, with a 74% stake in Maruti Udyog Limited (MUL), the joint venture with Suzuki Motors of Japan.

The obvious place to shop for technology was Japan, which had developed world-class capabilities in small car by this time. It was not Toyota or Nissan or Honda, the three largest players in Japan, with whom the Indian Government tied up, but Suzukis a much smaller company. Suzukis small car capabilities probably influenced this decision. Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only their undisputed leadership in small cars but also their commitment to actively bring it. MUL contemporary technology and Japanese 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 October.

1982 Suzuki grabbed the opportunity with both hands and a joint venture with the Indian Government, which was called Maruti Udyog Limited (MUL)


MUL introduce Maruti 800in 1983 providing a complete facelift to the Indian car industry. The car was launched as a peoples car with a price tag of Rs. 40,000. This changed the industrys profile dramatically. It decided to launch a small car with an engine capacity of 800 cc, targeted at the masses. Suzuki showed its commitment by setting up a fullfledged manufacturing facility at gurgaon and the India Capital, New Delhi. With the various concessions offered by the Indian Government, the car, popularly known as the Maruti 800, was priced attractively. Subsequently, in spite of price hike from time to time, it remained within the reach of Indias middle class and became a unway success.

Currently, MUL sells about 15,000 unite of Maruti 800 per month. The Zen, MULS second best selling car faces competition from Santro (Hyundai), Matiz (Daewoo) and Indica (Telco)_ the Omni, with us van like shape can seat upto eight people. The low excise duty on Omni (as per Government rules) makes it the cheapest personal transportation vehicle in India. The Omni is inexpensive to run and is popular with taxi operators and large families. The 1000 cc up-market Esteem also offers value for money with a reputation for reliability and low running cost. With the entry of other MNCS especially the Koreans both the Zen and the Esteem have been facing stiff competition in recent times.

1983-1992 In December 1983 a sort of revolution happened in the Indian Automobile Industry. Maruti cool aborted with Suzuki motor of Japan to produce the first car for the common Indian. The Indian car market at tie was stagnating with a volume of around 30,000 to 40,000 cars for the decade ending 1983. It was only in 1985, after the entry of Maruti Udyog, that the carmakers wee given a free hand to fix the price of car, thus, effectively abolishing all controls relting to the pricing of the end product. The story of Maruti begins from 1983. The very face of the industry was changed forever in 1983 with the entry of public sector Maruti Udyog in a joint venture with the Suzuki Corporation of Japan. Car sales grew by 42 percent in 1985 after Maruti 800 was launched. In 1985, GOI announced its famous broad banding policy, which gave new licenses to broad groups automotive products like two or four wheeled vehicles. 1993-2001


A decade later the sales figure for the year 1993 reached 1,96,820 and the company reached a total production of 1 million vehicles in March 1994, becoming the first Indian company to cross this milestone. It further crossed the 2-million mark in 1997. When Maruti entered the Indian car market, it sought to fill what it perceived as two very glaring needs. One was to provide fuel efficient, low cost vehicles. Which were reliable and of high quality. The second was to offer customer-friendly sales and after-sales service. Additionally, the absence of an efficient public transportation system was lending to a growing demand for passenger case. A burgeoning workforce and growing middle class population meant that personal transport had become a necessity. Over the year Maruti Udyog has provided world-class contemporary Japanese technology, suitably added to Indian conditions and Indian car users. 2002-2007 Finally, in 2002, the Indian Government transferred its controlling share to Suzuki, which puts Maruti Udyog Limited completely in extremely competent Japanese hands. Starting with the humble 800, Maruti now has a number of cases UN every segment of automobile market. MUL extended its product range to include vans, Multi-utility vehicles (MUVS) and mid sized cars. This country for a good number of years will be mall car market. Looking at the present Suzuki (the market leader foe the last 30 years in the small car market in Japan with a 32 % market share and with a 22 % market share of Japanese exports to Asia) as a strong supporter to Marutis business model. As SUBSIDIARY Maruti has success to Suzuki expertise in the small car agreement. Maruti with its dominate in this segment in India will greatly benefit from Suzukis expertise, global economies to scale, and its range of models in the small car segment, which will continue to be the largest segment in the Indian passenger car market in the foreseeable future. 3.2 CARS MANUFACTURED BY MARUTI SUZUKI

Maruti swift


Maruti 800

Maruti Alto


Maruti Baleno

Maruti Zen


Maruti Esteem

Maruti Grand Vitara


Maruti Gypsy

Maruti Omni

Maruti SX4


Maruti Versa

Maruti Dzire

Maruti Wagon R

Maruti Zen Estilo


3.3 Over view of Maruti: Maruti Udyog Limited (MUL), a subsidiary of Suzuki Motor Corporation is the largest manufacturer of passenger cars in India with a combined market share of 54.6% at end of fiscal 2003: Focus on A and B passenger car segments with an extensive product portfolio Comprising 10 models and more than 50 variants. Single dominant player in a segment and a market share of 40.30% in B segment. 3.40 lakh cars sold during 2002 with exports accounting for 7.40% of total sales. Authorized dealers and more than 1,500 service stations across the nation.

With a well-established brand backed by a twenty-year presence in the Indian market, the company continues to lead the pack in the small car segment. Currently, the capacity utilization is at its maximum and the company targets a production of 5, 00,000 vehicles per year through additional capital expenditure.

COMPANY VISION: The company vision is as under: To become leader in Indian Automobile Industry. Creating Customer Delight. Becoming Shareholders Wealth.


A pride of India.

COMPANY VALUES: Customer obsession. Fast, flexible & fast mover. Innovation and partnership. Openness and learning. Networking and partnership.

OBJECTIVES: As the leading manufacturer in the small car segment of the Indian market, Maruti have the following principle objectives: To strengthen leadership position in the small car segment of the Indian market; To continue to expand the size of the Indian market for small cars by strengthening and expanding dealer network and making automobile financing available at competitive rates; To continue to benchmark themselves against improving global manufacturing, marking and other practices and standards, strive to increase customer satisfaction through quality products and new initiatives and promote the financial strength of its dealer network. Modernization of the Indian Automobile Industry.


3.4 Organizational structure : Shareholding and directors Maruti udyog limited was set up as private limited company in 1981 pursuant to an Act of parliament and wholly owned by the Government of India. MUL was classified in the public sector as long as the equity of government of India remained over 51%. A license and joint venture agreement was signed in 1982; with Suzuki Motor Corporation acquiring 6% of the equity. SMC increased its equity to 40% in 1989 in 1992, Maruti ceased to be a government company, as SMCs equity holding went up to 50%. In 2005, SMCs share went up to 54.2%, converting MUL into a subsidiary of SMC. The GOIs holding 18.3% subsequent to an offer for sale of 27.5% of the companys equity to the public including institutional investors. MUL is a Board managed company. Currently the directors on the board are:

Mr. Shinzo Nakanishi, Chairman. Mr. Jagdish Khattar, Managing Director. Mr. Junzo Sugimori, Joint Manager Director. Mr. Kinji Saito, Director (Marketing and Sales). Mr. R C Bhargava, Director. Mr. S V Bhave, Director.

The independent directors are: Mr. Kumarmangalam Birla, Chairman, A V Birla Group. Mr. Amal Ganguli, former Chairman, Price Waterhouse Coopers India. Miss. Pallavi shroff, Senior Partner, Amarchand and Mangaldas and Suresh A Shroff and co. Mr. Manvendra singh banga, Chairman, Hindustan lever ltd (HLL).

Companys employees are MULs greatest strength and an asset. It is this underlying philosophy that has moulded companys workforce into a team with common goals and 37

objectives. Companys Employee- Management relationship is therefore characterized by:

Participative Management. Team work and kaizen. Communication and information sharing. Open office culture for easy accessibility.

To implement this philosophy, Maruti has taken several measures like a flat organizational structure. There are only three levels of responsibilities ranging from the Board of Directors, Division Heads to Department Heads. Other visible features of this philosophy are an open office, common uniforms at all levels, and a common canteen for all. This structure ensures better communication and speedy decision making processes. It also creates an environment that builds trust, transparency and a sense of belonging amongst employees.

3.5 Infrastructure: Factory land The GOI acquired assets of Maruti ltd through the Acquisition Act. According to the Acquisition Act, with effect from October 13, 1980, the GOI became the owner of all the assets of Maruti ltd. The GOI transferred all the assets of Maruti ltd to Maruti udyog ltd, including of which MULs manufacturing facilities are built. Gurgaon Plant MULs plant is located at Gurgaon in Haryana. It has an installed capacity of 3, 50,000 vehicles. Office property MUL has a corporate office and several regional offices in New Delhi (corporate and regional- north 1), Mumbai (regional-west 1), Lucknow (regional-central), Guwahati ( regional-north east), Bangalore (regional- south), Chandigarh (regional-north 2), Kolkata (regional-east), Chennai (regional-south) and Ahmedabad (regional-west 2).


MUL has entered into either lease agreements or agreements of purchase for these properties. These agreements for purchase and lease agreements contain standard terms and conditions. MUL has constructed buildings covering an area of 3, 60,313 square meters at our manufacturing factory. MUL has not taken any approval from the Director, Town and Country Planning, Government of Haryana for constructing these buildings.

3.6 Sales for April 2007: Segment A1 C A2 A3 MUV Domestic Export Total Sales Models M800 Omni, Versa Alto, WagonR, Zen Baleno, Esteem Gypsy, Vitara April April % change 2007 11,097 4,816 19,296 1,313 406 36,928 2,910 39,838 2006 10,741 3,972 9,668 952 310 25,643 3,150 28,793 3.3% 21.2% 99.6% 37.9% 31.0% 44.0% -7.6% 38.4% April'06 March'07 167,561 59,526 176,132 14,173 3,555 420,947 51,175 472,122

The A1 segment has grown by 3.3% yoy from 10,741 units in April 2006 to 11,097 units. The A2 segment comprising of the Alto, WagonR and Zen registered a 100% growth from 9,668 units in April 2006 to 19,296 units, mainly driven by rising Alto sales. The A3 segment has grown by 38% yoy to 1,313 in April 2007 from 952 in the same period last year. The C segment comprising of the Omni and the Versa has shown a 21.2% growth yoy from 3,972 in the same period last year to 4,816. In the multi utility vehicle (MUV) comprising Gypsy and Vitara, it sold 406 units in April 2007 from 310 units in April 2006, a rise of 31% yoy.


Incorporated Joint Venture Agreement Equity Structure Sales (No of Cars) Financial year 2006-07 Sales (Net of Excise) Financial year 2006-07 Profit After Tax Financial year 2006-07 Employee Strength Facilities

February 1981 October 1982 54.2% Suzuki, Japan, balance with Other Financial Institution and Public 674, 924 including 39,295 exports INR 152.5 Billion , Yen 423.675 Billion , $ 3.499 Billion INR 15.62 Billion, Yen 42.22 Billion , $ 358.34 Million * 4993 of Financial year 2006-07 Gurgaon: 3 vehicle assembly plants Manesar: 1 vehicle assembly plant Head Office in New Delhi, India Regional offices: 16 Suzuki Powertrain India Limited (SPIL), Joint Venture between Suzuki Motor Coroporation 70% Equity the rest is with Maruti Suzuki India Limited. Global hub for Diesel engines and transmissions for Suzuki worldwide. 15 Joint Venture companies, including Suzuki Powertrain India Limited for component supply. True Value: for sale and purchase of preowned cars Maruti Insurance: for insurance of Maruti vehicles (four companies) Maruti Finance: for financing Maruti vehicles INR 9000 Crores i.e. INR 90 Billion, Yen 257 Billion ( 1Yen = 0.35 Rs), $ 2.25 40

Diesel Power train Plant

Joint Venture

Subsidiary Companies

Proposed Investments till 2010

Network Reach Financial year 2006-07

Billion (1 $ = Rs 40) Sales 398 Outlets covering 228 cities Service 2421 workshops covering 1193 cities Pre-owned Car Sales 242 dealers covering 148 cities $ at the rate INR 43.59. Yen at the rate INR 0.37

Maruti Suzuki Exports As a forward looking organization, it have always encouraged exports to remain competitive in global markets. An exposure of global markets always comes handy in improving product quality and cost. This is why, in 1986 despite a 3-year waiting period in the domestic market, it started exporting cars, only to ensure that it remains competitive in terms of cost and quality. Similarly, Alto received rave reviews in Netherlands, Greece, Germany and Switzerland. However, due to adoption of new emission norms it had to temporarily suspend the exports to European countries and then began developing a new model for European markets. At present, it exports entry level models to many Latin American and African nations. With a heavy focus on Non-European countries it has managed to bring incremental sales and the exports to these countries have grown by 47%, 65% and 40% in the past three years.

3.7 Suzuki Motor Corporation


Suzuki Motor Corporation, with headquarters in Hamamatsu, Shizuoka, Japan is the leading international manufacturer of compact cars. The Company employs some 45,510 people worldwide. And it is represented in over 192 countries and areas. Suzuki has 35 main production facilities in 23 countries. Today, the Suzuki brand is synonymous with 'value-packed' products, which offer quality, reliability and originality. An integral part of the Suzuki concept to deliver 'value-packed' products lies in ensuring that the company use the most modern manufacturing equipment and technologies together with factory workers and engineers. In addition, various activities are aimed at continually enhancing productivity, strict quality controls and effective communication. Suzuki positively tackles environmental issues with all its products and business activities. Suzuki is continually carrying out research for the further development of fourwheel vehicles particularly in the improvement of fuel economy and the reduction of gas emissions and noise.

Osamu Suzuki director of Suzuki corp.




Suzuki Motor Corporation is the largest manufacturer of mini cars in Japan since fiscal 1974, in terms of sales volumes, with a market share of 31.6% in 2002, according to Japan Mini Vehicles Association. Suzuki was also the eleventh largest vehicles manufacturer in the world and the fourth largest manufacturer in Japan in terms of world wide sales volumes in 2000, according to Automotive Intelligence in 2002,Suzuki had a 22% share of the market in Asia vehicles exported from Japan, according to the Japan Automotive Manufacturer Association. Suzuki has always played, and continues to play, an important role in the management of MUL. Some of MUL key management personnel and technical personnel are deputed Suzuki. Currently, two of MUL directors of Suzuki. IN 1982,Suzuki acquired a 26% stake in MUL since then; Suzuki has increased its stake in MUL and currently holds about 54.2%. Suzuki provided MUL access to some of their products, licensed their technology, shared with MUL, their best practices in manufacturing process and helped MUL develop and manage supply chain. Suzuki has also provided support 1 training

MUL personnel and integrating Japanese management practice such as Kaizen in production plants.


MUL is a subsidiary of Suzuki Motor Corporation, the largest manufacturer of mini passenger vehicles since 1974 in India. Suzuki is the also the eleventh largest vehicles manufacturer in the world and the forth largest manufacturer in Japan. Suzuki is best known for building small compact cars and giving customers the advantage of big car packed into a small frame.

Suzuki increased its equity stake in MUL from 26% to 40% in 1989 and further to 50% in 1992, converting MUL into a non-government company. MUL made a Rights Issue of 1,219,512equity shares of Rs. 100/- each in May 2002, at a price per share of Rs. 3,280/-, which led to an increase in Suzukis stake to 54.2%. In addition, Suzuki paid a control premium of Rs. 10bn to the government of India and management control now vests completely with Suzuki Motor Company, Japan.

5. JUST THE RIGHT MIX 5.1 Marketing strategies: Marketing objectives: Marutis marketing objective is to offer the customer new products and services that: Reduce the customers cost of ownership of cars; and Anticipate and address the customers need and preference in all aspects and stages of car ownership, to provide what MUL refer to as the 360 degree customer experience. 44

Business strategy: MUL intend to continue to focus on the small car segment, while offering in most segments of the Indian passenger car market. MUL aim to achieve principle objectives by pursuing the following business strategies: Maintain and enhance our product range. MUL intends to utilize Suzukis expertise in small car technology to produce new variants of exciting models and to upgrade other products with contemporary technology and features. Increase reach and penetration. MUL plans to continue to utilize their extensive sales and service network to increase the reach , in terms of geographical spread, and penetration , in terms of sales, volumes, of products across India. Increased availability of Automobile Finance. MUL continues to seek opportunities to expand the size of the Indian passenger car market, especially in the small car segment, through facilitating easy availability of automobile finance to the end, they have recently entered into an agreement with the State Bank of India. Continue to reduce costs to offer more competitive products. Cost competitiveness continues to be, central to one of MULS strategy as the leading manufacturer in the small car segment to expand the size of the market by offering competitively priced, high quality products. The conditions of this strategy are: Higher levels of localization. Vendor participation in cost reduction. Cost reduction on warranties. Reduction in initial investment cost. Reduction in number of vehicle platforms. Achieve further cost reduction through higher productivity.

DEMAND DRIVERS: The key factors that determine demand for cars are: Household income levels.


Product availability and access. Product affordability. Availability of finance. Infrastructure {road} development.

All the above factors are prevalent in the Indian market toady, rising income levels low passenger car ownership, declining rates, easier availability of financing options, ongoing road development, reduction in excise duties and availability of multiple models in all price segments are all triggered for a high growth phase in the passenger car industry in the coming years.



5.2 Segment Of Cars Segment A This is the entry-level and the most prices sensitive constituting 35.7% of the total Indian passenger car market in fiscal 2007. Maruti is the sole manufacturer in this segment since fiscal 2006. In the fiscal 2007, this segment accounted for the sales volume of 206- 350 cars. Due to the low per capita income levels in India, the price of ownership of cars significantly affects the demand for cars. Segment B In the fiscal 2007, this segment constituted 50.8% of the total Indian passenger car market and is expected to grow to 57.8% of the Indian passenger car market by fiscal 2009 at a Cagar of about 12.3%. In the fiscal 2006, There were 8 models in this segment. Due to the present low per capita income in India, the price and cost of ownership of cars are significant factors that affect demand for cars in this segment.

Segment C, D and E In the fiscal 2007, segment C, D and E constituted about 13.5% of the total Indian passenger car market. There are 11 manufacturers with approximately 20 models in these segments. These segments typically have low sales volumes, therefore high growth rates of 11%, 19% and 35%, respectively, are expected between fiscal 2007 and 2009. New launches, growth in pr capita income levels, high aspirations and status associated with larger cars, are the key factors affecting demand for cars in these segments.

5.3 FACTORS FOR KEY SUCCESS OF CAR INDUSTRIES Carmakers have realized that an optimum mix of three of critical factors has become quite essential for ensuring success of their vehicles on Indian market roads. 48

These three factors gain precedence in the context of the Indian market and hence are very important for us to understand. Indigenization This is a relatively new concept and in essence refers to components of the vehicles that are manufactured in India. Interestingly, indigenization levels play a very important role in determining the sales- mix of a manufacture. Especially since higher indigenized content helps keep costs down, thus making this factor a critical price determinant.

Segmentation At the heart of making any strategy has to be the basic tenets of STP marketing, viz; segmenting, targeting and positioning. Steps in an STP strategy include:

Market segmentation Identify segmentation variables and segment the market. Develop profiles of resulting segment.

Market targeting Evaluate the attractiveness of each segment. Select the target segment.

Product positioning Identify possible positioning concepts for each target segment. Select, develop and communicate the chosen positioning concept. The emergence of segmentation is largely due to the fact each buyer is potentially a separate market, where in carmakers need to understand that the buyers differ in their wants, needs, purchasing power, geographical location, buying attitudes and buying practices.


Keeping this in mind, the Indian Automotive market has been historically segmented into a basic three-tier structure; the small car segment, the mid sized segment and the luxury sedan segment.

Pricing This is the last of the troika of factors for the Indian automotive market and until recently, was the most important factor for success in India. Price as an aspect that has been critical in ensuring MULs runway success in the small car segment, so, Indias largely mythical 200-million strong middle class has proven time and again that it is more concerned about price than anything else.

5.4 Strategizing with the 4 Ps The marketing strategy is a section, which outlines a game plan to achieve marketing objectives. It is, essentially, the heart of the marketing plan. The marketing strategy section should include information about: Product Price Promotion Place (distribution) Product mix

MUL product mix is decided on the basis of the opportunities available in the market, the motor vehicles regulation, their own core competence and the areas of comparative advantages. No wonder then that MUL is the undisputed price leader in all the three segments that it services viz; the small car segment with the 800cc, the midsized segment with lowly priced Esteem and the utility segment with the Omni and Gypsy. Design specification


MULs vehicles have to meet the specification of the market in which they are being marketed and have to be accordingly designed and fitted. Today MUL has nine variants across three brands (Zen, Alto and Wagon R) in segment B. in the mid-size there is Baleno at the higher end to support Esteem which competes the lower end. In the segment B, Zen had to take on four rivals, while Esteem had to contend with six. It was important for Maruti to quickly bring in more models in each of these segments. Maruti 800 alone grew by 12.6%, but the real growth for MUL came from segment B- which includes MULs Zen, Alto and Wagon R, Hyundais Santro, Daewoos Matiz, Tatas Indica and Fiat Uno. Price mix At Maruti price for the products is given due importance. The pricing policy for any product is designed with utmost care, as Maruti believes that price is the key factor that helps the company to keep itself one step ahead of its competitors. Since always Maruti is renowned to come up with low priced, low maintenance cost and the most fuel efficient vehicle. A true value for money cars. The price strategy has to be in sync with the demands of the market, the competition and the prevailing economic condition in the market, the specification and the costs. Ultimately, they have to deliver a value-for- money product and meet the customers expectations. This indicates that the company has been practicing a market-oriented pricing strategy. The company believes that the following such kind of a policy allows a greater flexibility to the company. For instance; the competition in most of the American countries is very severe as there are many players in the market, also the new emerging segment of reconditioned vehicles fitted with the top classed accessories yet low priced have been posing a great challenge to the company on the price platform. Place mix (sales and distribution) Maruti is very particular about operating through distributorship that have strong service and after sales structure in place. It is up to the distributor to offer other services in the market and these have to be in sync with the market competition, customer expectations and demands. Since automobile industries require different orientation and set of skills, hence the dealers involvement here would be limited to a select few. However, all the dealers would be encouraged to generate hot leads.


Promotion mix A promotion plan describes the tools or tactics used to accomplish marketing objectives. MULs vehicles are promoted by themselves or by their distributor in various ways. Partial lists of promotional tools are listed below:

Advertising: Print advertising such as that in programs for events, trade journals, magazines, newspapers. Direct mail Outdoor advertising, such as bill boards and bus board. Broadcast advertising on radio, T.V. or internet Press advertisements Radio advertisements TV advertising Marketing collateral distributor materials such as: Brochures Newsletters Fliers Posters Hoardings Road shows

Promotional activities: Sponsorships for special events {like fun runs}. Participation in community projects and board of directors.


Trade shows- product is suited to exhibiting at a trade show attendee by target audience. Trade shows are typically one-or-two day events that allows business to set up exhibits or booths showcasing their products or capabilities. Coupons and free samples Conducting contests. Participation in the trade airs and exhibitions e.g. the Alto was displayed in the Geneva Motor show in March 2004. Sponsorship and special promotion events e.g. Around the world in Gypsy tour was undertaken by two environmentalists to spread the Green Earth message, Kenya Golf Trophy, etc. Point of promotion displays. Public speaking and conferences making speeches at conferences, professional association meetings and other events, positions company as a leader in this field. Company probably also make valuable contacts that lead to sales. Publications such as newsletters, trade journals and books.

Media relations campaigns: A campaign is an overall plan for contacting and staying in touch with targeted members of the media [reporters]. To develop a media relation campaign, it would benefit the company to be mentioned in the newspapers, magazines or TV broadcasts viewed by target audience. Developing press kits and public service announcements are in media relations campaign.

Media: It depends on the market and the season. In some basis markets, press advertisement is dominant. In other electronic media advertising, though costlier, is more effective. At festival times, special promotions, displays, etc. are effective. Hence the method of promotion has to keep rotating. The expenditure incurred for promotion is in the relationship with the spread and depth of the advertising campaign, and the cost standards in a market. Normally the respective country distributor handles this. On a long run, they believe that no company, which wants to remain solvent, can afford to these costs.


6. PLEASING THE KING 6.1 CUSTOMER INTERFACE After sales and Dealers Network Maruti has the largest network of dealers and service stations amongst all car manufactures in India. Maruti has 178 authorized dealers with 243 sales outlets in 161 cities, 342 dealer workshops and 1545 Maruti Authorized Service Stations (MASS) covering 898 cities, and express service centers on 30 highways across the country. Clearly, the company is extremely well positioned in the competitive landscape. MARUTI UDYOG (MUL) is making a renewed foray into the company owned service stations and has drawn up plans for enhancing its reach in this segment nationwide. At MUL, the last two years have been an increased focus on customer delight, one initiative, for instance, has been the setting up of company authorized service stations along eight major highways this year. The workshops will be monitored regularly by MULs service engineers and regional representatives, as also the network section at the company. Maruti is of course, the number one car brand in India. Maruti continues to sell more cars than all their competitors put together. They are at the top position in customer satisfaction for three years in a row. Improvements in product quality and the launch of new business have further strengthened this brand in recent years. The J>D>Power Asia Pacific report for three years from 2000 to 2002 ranked Maruti No.1 in India on its Customer Satisfaction Index, which customer satisfaction with product quality and dealer service.



There were 1840 services outlets spread across 788 cities, which have not been able to cover the entire population of Maruti vehicles. The dealers have been catering to 25% and authorized service stations around 29% of the market 2000-2001 During 2000-01 there were 301 dealership and 1328 Maruti authorized service stations. During the year, Maruti Udyog service network has expanded from 1684 workshop spread across 695 cities in 2000 to 1840 workshops spread across 788 cities during 2001. 2001-2002 During the year 2001-2002 it increased to 307 dealership and 1532 authorized centers during 2001-02, these dealerships are expected to maintain high standards of service, with the companys customer satisfaction index targeted at 80% company aims. Unparalleled Sales and Service Network The company has the largest and the strongest dealer network in the country. MUK has 182 Authorized Dealers with 243 sales outlets in 161 cities. The company has around 342 dealer workshop and 1545 Maruti Authorized Services Station backed by Express service station on 30 highways across the country. The companys dealership network is a critical resource in its effort to provide customer with one stop shop for automobiles and auto related products and services like finance, car insurance, etc. Sales outlets in 2003 appear lower than previous year due to ongoing revamp of distribution, wherein close to 17 inefficient outlets have been wound up and close to 20 new dealerships have been warded to existing efficient dealers. 6.3 SYSTEM & SCHEME FOR DEALERS MARUTI SOFTWARE: Maruti seems to be well ahead of the other players in the industry in its e-business initiatives. It has created a portal, MARUTI SOFTWARE, where business partners can log in with their unique passwords. Enquiries can be floated electronically to qualified vendors: quotations received and order processed through the internets soon as a vendor supplies goods, Marutis system and the vendors books are updated. Information regarding acceptance of a consignment is also conveyed electronically. Maruti is attempting to integrate its internal Maruti software system with the web so that production schedules can be given online for the different vendors. Service center managers have to have day to day feed of their data and work out. 55

MARUTI PROVIDES TRAINING Maruti has established standard operating, showroom ambience and service quality standards for dealerships. Maruti provides periodic training through its training centers located at their manufacturing facility and at Chennai, Kolkata, Guwahati and Pune. Maruti trained more than 2600 and 3400 dealer sales personnel in fiscal 2002 and fiscal 2003, respectively. For fiscal 2002, their top dealer and their top 10 dealers accounted for 3.4% and 18.4% respectively, in terms of value of products sold to such dealer, of their domestic, sales of vehicles. Dealers, Service Center Managers, Management Staff, Workers Customer Relation Manager all are giving training in regard of customer delight, customer care and customer service. Maruti is truly a customer-oriented company.

Enhancing Dealer Performance The companys central office is in Delhi, regional offices and is offices monitor and assist the dealer network. As of March 31, 2003, it had nine regional offices, five area offices and 187 sales and marketing personnel. Maruti follows the performance of dealers and frequently suggest improvements. In order it assist dealers in enhancing their performance and capabilities, they have introduced a concept of Balanced Scorecard. Using this tool, seeks to measure the performance of a dealership in several areas of operations, including systems. They reward dealers who perform well on the Balanced Scorecard. Serves as an effective incentive for dealers to enhance their performance. MUL Has Set up Integrated Service Outlets under MSM Brand Name Maruti Udyog has established the Maruti Service Masters (MSM) brand name in the country, by setting up service outlets that will serve4 as a benchmark for its dealerships and company authorized centers. By creating a brand identity of its own, the MSM franchise will provide a one-stop for customers, where all diverse vehicles needs, such as servicing, spares, accessories, insurance related issues and warranty would be met under one roof. The company is planning to set up 15 franchisees of Maruti Service Masters in the next fiscal across various cities. Review done by the Maruti revealed that there is a hue untapped potential with 50% of the Maruti vehicles population not being covered by either the companys dealers or authorized 56

center. The company saw an opportunity in the untapped potential in his car servicing industry, and decided to develop the MSM concept, which would set new benchmark in customer service and provide. International standards in the outlets. The MSM concept is also being developed pace with technological improvements in vehicles, such as multipoint fuel injection systems and emission norms, and up gradation in the service network to keep pace with international standards.

MUL FINANCE FOR CARS: Maruti has partnered with the leading Finance companies in India to provide highly attractive Finance deals to its customer through its dealers. Maruti Finance is the program under which these deals are being offered exclusively to customers of Maruti vehicles. Maruti has partnered with the top Finance companies in India, so that its customer gets the best possible service and rates. The alliance partner Finance companies for Maruti Finance are Citicorp Maruti Finance Ltd, Maruti Countrywide, ICICI bank, HDFC bank, Kotak Mahindra, ABN Amro bank, SCB and Sundaram Finance, SBI Maruti cars loan. The Maruti Finance offer to its customer is different from other offering in the market in 4 key ways: Value Added Services. Higher Loan Amounts. Convenience & Transport Deals. Best Internet Rate. Extended warranty schemes. WHAT IS TRUE VALUE? True value for customers old cars Pre-owned business True Value is Marutis pre-owned cares business, launched in Oct 2001 is conducted under the brand name Maruti True Value. Marutis pre-owned car business is a significant marketing tool to retain customers and reduce their cost of ownership, and acquire new customers. This can be achieved by creating an organized market for the resale of the pre-owned cars, where the value of the pre-owned car is assessed in a more transparent manner and Maruti certifies the car. While the central intermediary to the transaction is a dealer, Company plays advisory role in conducting technical.


Evaluation, estimating the refurbishment cost and providing certification and warranty to the buyer of the pre owned car. The warranty given the buyer of the pre owned car is covered by an arrangement with insurance companies. Prior to certification, every car passes through a 120 point check, which includes verification, the sellers credentials. The refurbishments of pre owned cars which re under Maruti True Value improves the utilization rates of dealer workshop and other Maruti True Value outlets and also increase the sales of spares. Company receives from dealers a proportion of their revenue, net of cost refurbishment of the pre owned car. As on March 31, 2003: Maruti True Value operated from 50 dealer owned outlets spread over 34 cities. An additional 30 dealers owned outlets are at various stages of launch. True Value Benefits both Buyer and Seller: Advantages buyer: Maruti True Value offers its customer the widest range of quality pre owned cars, acquired from genuine sources refurbished with Maruti Suzuki Genuine Part and with complete service backup. Besides a solid warranty program. Every True Value car is re conditioned to Maruti Suzuki standards in state of the art workshops by trained mechanics using only Maruti Suzuki Genuine Parts. Advantages Seller: Companys transparent evaluation process makes sure that gets the right prices and gets paid quickly. They even take care of the documentation and ensure that when sellers car is resold, it goes into the right hands. Sellers also get to choose from a range of attractive exchange options seller could opt for a True Value pre owned car or brand new Maruti. Maruti True Value is a place that works on the principals of speed and services. N2N Fleet Management: Maruti has a new N2N Fleet Management solutions for companies, that takes care of the A to Z of there automobile problems. Company fleet services include end to end backups solutions across the vehicles life. Leasing, Maintenance, Convenience services and Remarketing. When clients lease a fleet from MARUTI, they get vehicles in prime running condition plus an attractive lease EMI. Company uses the state of the art maintenance services for ensuring that its clients vehicles are in excellent shape and give a great ride. Besides Fleet Solutions for company owned scar, Maruti also offers this service for employee owned cars.


7. SPEED AND SPEED BREAKERS STRENGHTS AND WEAKNESS OF MARUTI SPEED: Despite new entrants, MUL has maintained its market leadership in the passenger car industry, with annual volumes exceeding the combined volumes of all other players put together. The bread and butter Maruti 800 segment, which it has totally dominated till date. MUL has a 55% market share in the largest selling A&B segments, which account for 85% of cars sold in the Indian market. Unparallel sales and service network, which is larger than all the other players put together. Change in Management control from Government to Suzuki to enable quicker response to market. MUL to be established as an Asian hub for R&D to cater to Suzukis Asian markets by 2007. MUL is also waking up to the changing profile of the Indian car market by introducing new models

TRANSFER OF TECHNOLOGY Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from partner Suzuki is a smooth process. Great stress is laid on training and motivating the people who manage and maintain the equipment, since the best equipment alone cannot guarantee high quality and productivity. From the beginning it was a conscious decision to send people to Suzuki Motor Corporation for on the job training for line technician, supervisors and engineers. This helps them to imbibe the culture in a way that merely transferring technology through documents can never replicate. At present 20% of Marutis workforce have been trained under this program.

Maruti Genuine Accessories: The Advantage


Maruti Genuine Accessories (MGA) is a new initiative to offer customers high quality accessories at competitive prices. Company follows world Class engineering and design Processes to develop each and every item of MGA. Many of these items are imported from Suzuki, Japan. Every MGA item has perfect mechanical and electrical compatibility with the vehicles and offers unmatched performance.


Lack of diesel variant restricts MULs growth in the second largest B segment, where estimates 335 of sales are of diesel models. Another problem that faces is largely of its own making. It had left the basis 800 model unchanged for over 15 years, leading to a growing consumer perception that it was offering older models unlike its competitors. MULs market share and profits have declined due to the new entrants in the market especially in the B segment. MUL operates in a highly competitive environment and competitive pressure on its business is a very important weakness. MUL is substantially dependant on the Maruti 800, which comprises 42.5% of domestic sales volumes. Suzuki has the ability to exercise significant control over MUL and its interests any conflict with shareholders interests. Potential delays in the launch of new models in the market and lower than anticipated market acceptance of new or existing models cause MUL to lose market share and adversely affects result of operations. MUL is dependent on its dealership network for the sales and distribution of products. Breakdowns in information technology based communication systems may disrupt MUL operations. MULs failure to anticipate, or adapt its business to, consumer preferences in the automobile industry adversely affects its business and leadership position in the small car segment. MULs performance is linked to the performance of the Indian economy and the passenger car industry in India.



Introduction to the Company: Incorporated on May 6, 1996 as a 100% subsidiary of Hyundai Motor Company (HMC), S>Korea, Hyundai Motor India Limited (HMIL) set up a 1.2 lakh per annum capacity fully integrated passenger car manufacturing facility at irrungattukottai, Sriperumbudur, near Chennai at an estimated cost of Es. 16bn. The capacity includes press shop, body shop, paint shop, engine and transmission manufacture and final assembly line. This is the first fully integrated production facility outside Korea and the second largest after its recently set up facility at Alabama, US. HMIL chose its present location primarily because of nearness to the port at Chennai, availability of a strong auto-ancillary base in and around Chennai and strong support from the Tamilnadu government in the form of infrastructure and sales tax exemption. The unit has been commissioned in a record 17 months timeframe and HMIL launched its first car in the Indian market in October 98 in the form of Santro. HMIL strongly draws on the experience of its parent in terms of manpower support. Experienced Korean hands are heading almost all the key business function and they are being aided by top-notch Indian professionals drawn from the domestic auto industry.

HMC is the part of the Hyundai group the largest chaebol of Korean having 31 affiliates abd employing more than 1,80,000 personnel worldwide. The group had its origin in 1947 and major presence in automobiles, electronics, petrochemicals, heavy industry (including shipping and industrial plant construction), iron and metals and 61

engineering construction sector. The group also has presence in shipping, distribution and trading and financial services. Incorporated in 1967, HMC commenced operations form February 1968 with technical inputs from Ford. HMC developed the first independently designed and manufactured Korean car the Pony in the early 70s. Its was the first Korean automaker to the North American in 1984 with its Pony II. IT is the biggest Korean manufacturer of passenger cars and commercial vehicles and occupies the position in the world in terms of sales of passenger cars.

Positive Aspects: Parental support. Strong marketing skills. Impressive track record in India. Strong liquidity and adequate bank lines.

Overview of HMIL: HMIL is presently in the entry level, mid-size and premium segments of the passenger car market in the India. These segments are labeled as B, C, and D segments in the industry parlance. HMIL has been successful in its performance in all these segments, more so in the B segment where it has its car named Santro. HMILs success can be attributed to its detailed market research, its policy of bringing to the Indian customer the latest in technology and its highly efficient marketing game plan. Unlike other MNC competitors, HMIL recognized the Indian customers need for an affordable small car. Maruti Udyogs experience for nearly one and half decades did help HMIL in the confirming its market findings that there are abundant volumes in the small car segment. Further HMILs profitability has been commendable due to its policy of keeping fixed costs to a minimum and outsourcing all requirements of components to its satellite network of vendors situated close to its satellite network of vendors situated close to HMILs factory. Increasing over the years boosted profits future. Continued support from HMC in the form of technology transfer, management inputs and equity infusion has made a positive contribution to HMIL.


STRATEGY OF HYUNDAI: HMILs strategy has been to penetrate the Indian passenger car market with low price offering. HMIL has been able to keep costs down through outsourcing most of the parts production to its vendors. Due to a low contribution is high for every car sold. HMIL also got its marketing act together and as a result, could sell high volumes of its small car. HMIL could replicate this success story in the mid-size segment with its Accent model. Introduction of Sonata in the premium segment has segment with its Accent model. Introduction of Sonata in the premium segment has also been a success with HMIL reporting higher volumes vis--vis its competitors like Ford India and Honda. A key element of HMILs strategy is to offer the Indian customer the latest technology in passenger cares at an affordable price.

Tools and techniques: Typing up with dealers for conducting road shows. Offering test-drives and options in cars. Upgrading car technologies. Credit car purchase deal in addition with offering on the spot financial assistance. To make buyers aware of the quality of cares and to the shift them to Hyundai cars. Strong service network.

Points That Made Hyundai String in Indian Market: Small products range only one car at each segment. They had overall sale efficiency as compared to its other competitors. They understood there consumers, consumers need tried there best to satisfy all there demands. Hyundai works on to its theme line that is WE ARE LISTENING Since they had fewer models they had very low inventory cost as compared to Maruti. Hyundai because 2nd largest in India 19th months after its entry by offering high quality technology that to at an affordable price. Hyundai has a strong parentage support. 63

2) TATA MOTORS. Introduction to the Company: Founded in 1945, the Tata Engineering and Locomotive Company (Tata Motors) are one of the leading playing in the Indian automobile industry. In its early years, Tata Motors manufactured only commercial vehicles, through a technical collaboration who Mercedes Benz of Germany. Stating with the 1980s, Tata Motors has moved into high commercial vehicles, pick-up trucks, multi-utility vehicles, large cars and finally, small cars and finally, small cars. The Tata Mobile pick-up truck launched in 1988 was probably a turning point in Tata Motors history. The model failed to build volumes, but gave Tata Motors engineers confidence in their design capabilities. Tata Motors then launched its big cars. Tata Sierra (1991) and Tata Estate (1992). Both these cars have been more or less phased out, as Tata Motors decided to take a plunge into the mass market small car segment1, the star in Tata Motors portfolio today is the small car, Indian designed in Italy, but manufactured in India as an almost completely indigenous effort. The car has a distinctive look and sufficient space but its engines can probably be improved. At the time of launch, the India was plagued by quality problems. Tata Motors engineers, however, ironed these out in quick time. Priced at just over Rs.3 lakes, the Indica offers value for money and has catapulted Tata Motors to a position in which it is one of the few serious challengers to MUL. In the Rs.3 - 4.5 lakes price segment consisting of the Santro, the Zen, the Matiz, the Wagon R and the Uno, Indica has a market share of 21%

Strategy of Tata Motors: TATA AUTOMOBILES launched the debugged product called Indica. And TATA wanted to tell the customers that had something more to offer in the product. Indica was positioned as MORE CAR PER CAR. And TATA wanted to sale Indica by saying MORE PYAAR PER CAR. The message was simple, and claims were backed by actual product improvements. The strategy clicked, and the Indica entered a new phase in its lifecycle. It is the largest selling car in small car segment. The 64

main objective was to stress on product quality, after sales services, interaction, action with dealers. The whole marketing strategy was focused on customer satisfaction, customer service. Customer service orientation was the main game plan for TATAS Indica.

Tata Motors Launches Customer Care Campaign: Tata Motors has launched Project Vishwaas, a countrywide customer care campaign for its commercial vehicles. The project will aim to build customer care confidence and provide value for money services. The campaign will run training camps on driving tips, preventive maintenance and related subjects. There will also be free eye check-up will also be entitled for discounts on spare parts on subsequent repairs of the same vehicles through the same dealer. That will be valid for two months after the campaign.

Where Is MUL against Its Competitors? The Market Leader: MUL is only pure passenger Car Company to be listed on the Indian Stock Exchanges. Being the dominant player in the industry. MULs market share was bound to decline post entry of new players in the late 90s. The ongoing imbroglio between Suzuki and the Government, during the same period, further impacted MUL adversely as new launches got delayed. As a result MUL still remains the leader in the Indian car market with a market share of 57%. The company has sold 362,426 vehicles in FY03, which is more than the combined volumes of all players put together.


Quality VS Price Is The Debate Still Valid Today In The Competitive Domestic Auto Sector? The industry is changing dynamically. Till the arrival of the Koreans in the 1998 there was no competition in the Indian auto sector. The Koreans came with a purpose to achieve. That changed the face of the industry. Competition will actually purify the breed, and the industry will improve only if thee is some pressure. Indian companies are the masters at crisis management.

It Is Said That European Cares Are Sturdier Than Japanese Make. It is noted that Japanese carmakers do sell in the good numbers in Europe. And if Maruti is able to sell the Alto in Europe it means that MUL meets the standards. The Japanese by nature are conscious about waste and space. They are frugal, and focus on resource optimization, but not at the cost of quality and safety. Merely adding weight is not great. In fact Maruti won the Confederation of Indian Industrys business excellence award after being judged under European standards.

Suzuki believes in designing low-cost cars. The philosophy is to cut the cost while improving the quality. For the Last three decades MUL ha retained Its Market-share

STRATEGY OF MUL AGAINST HMIL During to Marutis pricing strengthen its product portfolio in the passenger car segment have it arrest its decline in market share. But with competition intensifying in core volume segments (A&B), Maruti tackled competition by creating price points at every Rs. 20,000 25,000. The 66

only wide gap seems to be between the Maruti 800 and Alto. With the competition at his doorstep, these were done because of to two factors. One, the market is highly fragmented, and two, most of MULs competitors find it difficult to increase their reach the relatively low profitability, scale of scale of operations, and distribution channels.

9. Journey towards victory

Success reasons

Compact and small cars given (segment A being 30% and segment B close to 56% of the market), given in the demographic and income levels in India, are expected to show robust growth of Maruti Udyog Ltd. Maruti consolidated its leadership position I the market by improving product quality across brand. The company also introduced exciting special editions of Maruti 800, Zen and Esteem and created a strong customer pull through aggressive promotions and advertising. Strong growth in the sales volume of Wagon R and Alto further enabled the company to overcome the difficult market situation. The company adopted several innovative production practices and system, which improved quality substantially. This improvement in quality enabled the company to bring down manufacturing cost, reduce warranty levels and enhance productivity besides, optimum utilization of production lines, outsourcing of low value added jobs and substantial reduction in material handling also improved productivity the companys quality systems and practices reached a level where rated as benchmark for the automotive industry worldwide by AV Belgium, global auditors for ISO. In addition, superior engineering by the company, in collaboration with its component suppliers, brought down the cost of components and materials, Marutis ambitious plan of localization proceeded ahead of schedule. The company also devised new systems to improve efficiencies across the supply chain and reduce inventory levels. Maruti leveraged its financial strength and was able to obtain funds at below Prime Lending Rate to meet its short term borrowing requirements improvement forex management also aided the turn around. For the second successive year, Maruti was ranked number 1 in the customer satisfaction in the J D power survey of car customers. The companys social initiatives 67

such as managing the Institute of Driving Training and Research and revamping the childrens park in New Delhi also endeared it to customers.

Action for success: Company has placed itself in the shoes of the customer to find out what his needs are? Or Do they only want a car? Or Do they need other things also? Whatever they need, was Marutis job to provide them the same under 1 roof, so they do not have to go to many places.

Action for production One of the strategies used by Maruti was to enhancing productivity by reducing wastage. This includes wasteful movement of manpower during any operation. Design and layout, and small innovations like automated trolleys on the line, are reducing wasteful movement of manpower, fatigue, and improving productivity. Even there were innovations by employees in manufacturing process, which made possible to reduce the cost of material. The company has identified certain macro parameters for productivity and cost. And target has been laid down on the basis of what the global benchmark is today and what it is likely to be three years from now. For instance, the parameter in measuring productivity is called hours per vehicle. This is the globally accepted parameter for measuring productivity. Maruti plans to reduce it by 50% over years.

Action from Suzuki Suzuki has helped Maruti to better their own manufacturing practices and extended tremendous help and support in improving capacity utilization, localization and vendor development with so many joint ventures, etc. but now the intensity of its interaction and involvement in every area is much more after taking controls in its hands. Maruti has approach to quality that is keeping with Japanese practices- build it into the product. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicator is reviewed in weekly meetings by the top management. According, to the study, the quality of vehicles has a significant impact on a dealerships ability to offer a satisfying service experience. 68

10. FUTURE PROSPECTS: A. No car manufacturing company would ever dare to dream to capture the market of M-800 because MUL has highly depreciated plant for MUL-800. So for another decade it can book its business on M-800 successfully. B. With little amount of extra effort it can improve the performance of all its small size cars. Further, there is a ray of light to capture export market due to successful launch of its size cars (Alto) in Europe. C. MUL would be thoroughly required to work on its mid-sized cars and luxury cars to improve their performance.

Since the opening up of the Indian automobile market in the early 1900s, a lot has changed. Customer can now choose from a wide range of models. Marutis overwhelming dominance of the market has gone. Yet, one thing where most of MNCs, especially those from the west, seem to be facing problems. Although easy availability of finance lower interest rates, a growing used car market and drastic cut down in prices by MNCs through thoroughly localizing their contents have pushed up penetration levels. Yes, no one can predict the future of things in this world. So is the same with MUL. Finally, what is the future of the car market????? The mini segment {comprising of 800}, Maruti bread and butter, sales jumped because of a price reduction following the excise duly cut. MUL is the largest car manufacturer in India and has an unbeatable market share. So that consideration of past, present and future of MUL and its success it is crystal clear that MUL is going to take the lead Indian market as well as export market. As the global change explains the over-capacity of global car manufacturers and their declining sales in overseas markets, they are expected to sharpen their focus on Indian as well as other emerging markets. But the relatively new entrants will take to achieve breakeven and attain higher volumes. Till then Maruti has a smooth ride ahead. But competition is sharpening its fangs too. Not a single model of Maruti is the leader in its segment except the 800. The large number of models it uses to establish supremacy in the fast- growing B segment creates confusion among consumers and 69

dealers. And it has failed to make a success of any of its big cars. Khattar, MD-Maruti, says he would rather have the consumer confused among MULs offering so that he or she is unable to think of the other models. Amongst all this Maruti should now gear itself up to take on the competition head-on. Not only this, it should change in such a manner that no other company could even close to their market share. First they should start from upgrading in India, the Maruti-800, which is yet to see a significant change in after 20 years of its launch. FINDINGS After doing survey in general on automobile industry I found that middle income groups prefer only maruti cars for purchasing. Its only the car which gives them total satisfaction in regards to maintanence, fuel efficiency and comfort. In this survey I have included 12 people having their monthly income ranging in between 10,000 25, They said that MARUTI SUZUKI is the only company which manufactures cars with good looks, great fuel efficiency, and low maintenance. Its the only company whose cars they can afford to buy as they are totally economical. They believe that Maruti Suzuki is the only company which produces the small and mid size cars properly keeping in mind the customer needs and requirements. Small and compact cars which Maruti makes suite the needs of the common man. Also the price of these cars is moderate due to which every individual can afford it. They believe that Maruti is the only car manufacturing company which is leading in India. Also Maruti has been able to capture the small size market segment over the years and hence it is considered as the GIANT OF THE AUTOMOBILE INDUSTRY.

The bread and butter Maruti 800 segment, which it has totally dominated till date. Unparallel sales and service network, which is larger than all the other players put together.It also provides excellent after sales service. For the second successive year, Maruti was ranked number 1 in the customer satisfaction in the J D power survey of car customers. It has its service centres spread all over India. The company follows the world class engineering and great design. All this proves that MARUTI WAS A LEADER, IS A LEADER, AND WILL BE A LEADER


Conclusion: Since Maruti has an excellent profile, but only its small car models are living up to Marutis reputation. Due to intense competition, same products are offered at a better quality, attractive price tag and with superior technology, an issue that Maruti fails to address. For this Maruti has to come up with new offerings, with better technology and cars which can satisfy European standards. It is no more prices sensitive now; it demands a lot just beyond driving and personal transport. Maruti has to find solution to it quickly or else the competition is ever increasing. One thing Maruti has in its stride is its unmatched service, which can fetch it towards its path to unmatched dominance of the Indian Automobile Industry. Finally it is true that Maruti has kept its name at its peak by focusing on highly sensitive factors of the India and Indian customers. MUL is going to have outstanding records in addition its list due its flow towards customers and social welfare activities. In India Maruti ha set up an empire of strong pillars like customer satisfaction, product quality, sales service, right price, value for money, etc. which is unbreakable by any company. Nor can the competitors reach those standards set by Maruti these long years of immense hard work. Maruti Suzuki should have a complete awareness of each of its cars in various segments. So as that the competitors dont capture or grab the market share of any of its segment.


By government trying to divest its interest in MUL and as the management would change, Maruti can have require degree of professionalism. Licensing era would prove to be Blessing in disguise for Suzuki motors provided if they work professionally. And who knows if all pieces fall in correctly, MUL can become the GEM of India.




Monthly issues of automobile magazines:



Monthly issues of business magazines: BUSINESS INDIA. BUSINESS WORLD




Maruti udyog Limited Government Of India Father Compound Annual Growth Rate Public Sector Unit Multi National Corporation. Multi Utility Vehicles Joint Venture Agreement Master Service Network Suzuki Motor Corporation Profit Before Annual Profit After Tax Equity Per Share Operating Margins Year On Year Segmentation Targeting and Positioning Hyundai Motors India Limited Hyundai Motor Co-operation Horse Power Revolution Per Minute Cubic Capacity Maruti Authorized Service Stations


SURVEY Automobile Sector

Q1. Which car do you have? ----------------------------------------------------------------------------------------------------------Q2. Is your car a second hand or a new one? ----------------------------------------------------------------------------------------------------------Q3. Which car segment do you like: small size, suv or luxury? ---------------------------------------------------------------------------------------------------------Q4. How many cars do you have? ----------------------------------------------------------------------------------------------------------Q5. Reason behind the purchase of this car? ----------------------------------------------------------------------------------------------------------Q6. Which car you like the most? -----------------------------------------------------------------------------------------------------------


Q7. What is the mileage of your car? ----------------------------------------------------------------------------------------------------------Q8. Is your car economical? ----------------------------------------------------------------------------------------------------------Q9. Are you totally satisfied with the performance of your car? ----------------------------------------------------------------------------------------------------------Q10. Which car Manufacturer Company is leading in India? ----------------------------------------------------------------------------------------------------------Q11. According to you what is good: purchasing a new car or a second hand? Why? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q12. Which car in India market has high resale value? ----------------------------------------------------------------------------------------------------------Q13. Do you know any second hand car dealer? ----------------------------------------------------------------------------------------------------------Q14. Which car manufacturer provides good after sales service? ----------------------------------------------------------------------------------------------------------Q15. Which car has captured the Indian market for a long period? 76

----------------------------------------------------------------------------------------------------------Q16. Can advertisement increase the sales of the car? In what way? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q17. What are your views about MARUTI SUZUKI? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q18. Do you think MARUTI has been efficient manufacturer to capture the small size market segment? --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Q19. Did the introduction of REVA- electric car in 1994 had any effect on the sales of MARUTI? ----------------------------------------------------------------------------------------------------------Q20. Which car according to you runs better on Indian roads? -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------