Professional Documents
Culture Documents
on
Automobiles
Section:- B
DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA
(2008)
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2
INDEX
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ACKNOWLEDGEMENT
To complete a task all you require is some hard work and efforts, but with a blend of
these two you also need the support and guidance of many people.
So I pleasure is all mine to first of all thank Mr.Rahul, professor of seminar on
corporate profile without whose able guidance, Co-operation & Supervision the
present study couldn’t have ‘been possible.
I would like to thank my greatest source of support, my god for giving me the strength
and confidence to complete the same. I m truly thankful to him for showering his
blessings on me time to time.
I would like to thank my sister, Miss. Preeti for her valuable guidance and
suggestions.
I m also thankful to all my friends and my group members for their support and
encouragement.
Kashish Vadhera
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OVERVIEW OF THE INDUSTRY
With the invention of the wheel in 4000 BC, man’s journey on the road of mechanized
transport had begun. Since then he continually sought to devise an automated, labour
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. The cars in this
period were more like the cars on our roads today. With cars came the era of speed.
The first ever land-speed record was established about a 100 years back, in 1898.
The Automobile Industry finally came of age with Henry Ford in 1914 for the bulk
production of cars. This lead to the development of the industry and it first begun in
the assembly lines of his car factory. The several methods adopted by Ford, made the
new invention (that is, the car) popular amongst the rich as well as the masses.
Count Gaston de Chasseloup-Laubat of France drove an electric car (in Acheres near
Paris) at a speed of 39.24 miles per hour. This flagged off the era of ‘wheels racing’,
which lasted till 1964, after which jet and rocket -propelled vehicles were allowed.
Then onwards, it has been one big journey...on the roads.Automobile industry, the
business of producing and selling self-powered vehicles, including passenger cars,
trucks, farm equipment, and other commercial vehicles. By allowing consumers to
commute long distances for work, shopping, and entertainment, the auto industry has
encouraged the development of an extensive road system, made possible the growth
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of suburbs and shopping centers around major cities, and played a key role in the
growth of ancillary industries, such as the oil and travel businesses.
The auto industry has become one of the largest purchasers of many key industrial
products, such as steel. The large number of people the industry employs has made it
a key determinant of economic growth.
Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto
industry was overlooked by the then Government and the policies were also not
favorable. The liberalization policy and various tax reliefs by the Govt. of India in
recent years has made remarkable impacts on Indian Automobile Industry. Indian auto
industry, which is currently growing at the pace of around 18 % per annum, has
become a hot destination for global auto players like Volvo, General Motors and Ford.
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• The first automobile in India rolled in 1897 in Bombay.
• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars
(79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million
mark.
Following India's growing openness, the arrival of new and existing models, easy
availability of finance at relatively low rate of interest and price discounts offered by
the dealers and manufacturers all have stirred the demand for vehicles and a strong
growth of the Indian automobile industry.
The data obtained from ministry of commerce and industry, shows high growth
obtained since 2001- 02 in automobile production continuing in the first three quarters
of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the
growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a
compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With
investment exceeding Rs. 50,000 crore, the turnover of the automobile industry
exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-
03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
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“The passenger car and motorcycle segment in Indian auto Industry is growing by
8-9 per cent”.
GROWTH IN INDIA:
India, in auto sector, is turning to be a sourcing base for the global auto majors. The
passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming
couple of years, says the ICRA report. The industry is likely to maintain the growth
momentum picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car market in the
country was inching towards cars with higher displacements. The sports-utility-
vehicle (SUV) that was getting crowded everyday, would witness intense competition
as many SUVs had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already
launched their premium SUVs in the market to broaden their portfolio and create
product excitement in the segment estimated at about 10,000 units annually.
In the two-wheeler segment, according to the report, the motorcycles would clock
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11.5 per cent rise during 2004-2007 over its siblings-scooters and mopeds. Scooters
sales would decelerate and mopeds would also see the same. Overseas market would
present huge opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy
commercial vehicles market would rise at 5.5 per cent and sales of light buses and
trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a
growth at 4.6 per cent.
• The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units
as against 78,97,629 units in 2004-05.
• The automotive industry crossed a landmark with total vehicle production of
10 million units.
• According to the Society of Indian Automobile Manufacturers (SIAM), car
sales was 8,82,094 units against 8,20,179 units in 2004-05.
• The growth of domestic passenger car market was 7.5 per cent
• Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.
• The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317
units against 62,09,765 units in 2004-05.
• Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2004-05.
• Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428
units in 2004-05.
• Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units
against 3,18,430 units in 2004-05.
• Medium and heavy commercial vehicles managed a growth of 4.5 per cent
against 23 per cent growth in the year ended March 31, 2005.
• Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units
against 1,19,924 units in 2004-05.
• Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862
units in 2004-05.
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AUTO EXPORT IN INDIA
In auto export, passenger vehicle exports have grown over five times from the start of
the decade and two-wheeler exports have reached more than double
• Foreign auto makers, including Ford Motor Co. , General Motors Corp.,
Honda Motor Co. Ltd., Toyota Motor Corp., DaimlerChrysler AG and
Hyundai Motor Co. Ltd., are looking to increase their presence in India and
use it as an export hub.
• Exports of auto components, whose manufacturing costs are 30-40 per cent
lower than in the West, have grown at 25% a year between 2000 to 2005.
• In 2003-04 the export of the industry was 55.98%.
• Two-wheelers are mostly exported from India.
• The reason behind the export is cost competitiveness in terms of labor and raw
material.
• The export of auto components has grown to 19% from the start of the decade.
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AUTO COMPONENTS :
Any automobile is the assembly of several auto parts with each part contributing to its
machinery and polishing its quality. Lack or failure of just one part can breakdown the
entire system so every component plays its part. We have provided the detailed list of
all the components of any vehicle. This list would enable the user to gain complete
knowledge about various auto parts. It would allow the user to access the importance
and uses of various integral parts of automobile.
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• Lighting System
• Exhaust System
• Suspension and Steering
• Transmission System
• Wheels and Tyres
• Fasteners
• Valves
• Cooling System
• Engine
Investments in the auto ancillary sector are rising rapidly. In 1997, the size of the auto
component industry was US$ 2.4 billion and now in 2004-05 it has become US$ 8.7
billion industry. The export of auto components has grown at a compounded growth
rate of 19 per cent over the past six years.
Robert Bosch, auto parts maker of Germany has relocated manufacture of certain
products to MICO, India. Crosslink International Wheels, Malaysia's leading
automobile security provider Wheels Electronic SDN, is setting up its manufacturing
unit at Baddi to make India the export hub for the SAARC region.
PSA Peugeot Citroën, French automobile group has placed orders for components
worth US$ 10 million with Indian companies.
Fiat India exported components worth US$ 8.3 million in 2004-05 to its operations in
South Africa. GKN Driveline and Dubai based auto ancillary major Parts International
plans for an investments in India.
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Bar graph showing exports of auto components .
STRENGTHS:
WEAKNESS:
OPPORTUNITIES:
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• Huge export markets such as Europe, America, Africa, and others for Indian
cars.
THREATS:
Internal Factors:
External Factors:
All those people who are crazy about speed, automobile are indeed a prized
possession for them. With the increased number of car and two wheeler loans and
finance schemes available in today's market, it is not that difficult to purchase the
same. However, if you have already decided to purchase a vehicle, then before the act
of purchase, do get to know something about the key players who dominate this
market.
In terms of Car dealer networks and authorized service stations, Maruti leads the pack
with Dealer networks and workshops across the country. The other leading
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automobile manufactures are also trying to cope up and are opening their service
stations and dealer workshops in all the metros and major cities of the country.
Dealers offer varying kind of discount of finances who in tern pass it on to the
customers in the form of reduced interest rates.
These are the companies that bring to us our dream machines. This is where it all
starts from; the bourgeoisie Maruti 800, the upmarket Astra, the stately Mercedes, the
'Indian' Indica, the racy Hero Honda, the Tata truck and the rest.
Wend your way through the automobile companies, their history and product lines.
Find out hitherto unknown facts about the vehicles you use. Did you know that the
Hindustan Motors was the first vehicle manufacturing company to be set up in India?
And it is the same Hindustan Motors which manufactures both the sturdy Ambassador
and the elegant Lancer, in association with Mitsubishi of course.
In the two- wheeler segment, the biggest player in India is hero honda. A joint venture
between the famous Hero group of India and Hondagroup of Japan, it has the record
of producing 1.3 million motorbikes in a single business year in its kitty. All its produ
Most popular two- wheelers produced by this company include the likes of Glamour,
Karizma, splendor, CD Dawn, Passion and Passion plus.
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Next we have Bajaj Auto, which is known to be worlds third largest two as well as
three wheeler manufacturing company. It offers enormously popular bikes like
CT100, Platina, Discover, Pulsar, Pulsar DTS I and Avenger DTS I. All its products
are popular for their mileage offerings and attractive looks.
In the four wheeler segment, the most reputed Indian global brand is Maruti Udyog, a
joint venture between SuzukiMotors, Japan and the Government of India. It is a listed
company and is credited for producing and subsequent selling of more than one
million cars in a financial year. It is the largest producer of four wheeler automobiles
in the entire south Asia. Its popular products include Maruti 800, Maruti 1000, Omni,
Esteem, Alto, Wagon -R and Zen. cts are known to be user friendly and fuel efficient.
Among the two-wheeler segment, motorcycles have major share in the market. Hero
Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in
scooter and TVS makes 82% of the mopeds in the country.
40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of
the market share. Among the passenger transport, Bajaj is the leader by making 68%
of the three-wheelers.
Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in
passenger cars and is a complete monopoly in multi purpose vehicles. In utility
vehicles Mahindra holds 42% share.
In commercial vehicle, Tata Motors dominates the market with more than 60% share.
Tata Motors is also the world's fifth largest medium & heavy commercial vehicle
manufacturer.
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Japan holds a majority stake in the company. It was the first company in India to
mass-produce and sell more than a million cars. It is largely credited for having
brought in an automobile revolution to India. It is the market leader in India. On 17
September 2007, Maruti Udyog was renamed to Maruti Suzuki India Limited. The
company's headquarters remain in Gurgaon, near Delhi.
Maruti Suzuki is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983. Through 2004, Maruti has produced over 5
Million vehicles. Marutis are sold in India and various several other countries,
depending upon export orders. Cars similar to Marutis (but not manufactured by
Maruti Udyog) are sold by Suzuki in Pakistan and other South Asian countries.Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to
Indian financial institutions. With this, Govt. of India no longer has stake in Maruti
Udyog.
The company annually exports more than 30,000 cars and has an extremely large
domestic market in India selling over 500,000 cars annually. Maruti 800, till 2004,
was the India's largest selling compact car ever since it was launched in 1983. More
than a million units of this car have been sold worldwide so far. Currently, Maruti
Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"
is commonly used to refer to this compact car model. Till recently the term "Maruti",
in popular Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has
been the leader of the Indian car market for over two decades.
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In 1909, Michio Suzuki founded the Suzuki Loom Company in the small seacoast
village of Hamamatsu, Japan. Business boomed as Suzuki built weaving looms for
Japan's giant silk industry. Suzuki's only desire was to build better, more user-friendly
looms. In 1929, Michio Suzuki invented a new type of weaving machine, which was
exported overseas. Suzuki filed as many as 120 patents and utility model rights. The
company's first 30 years focused on the development and production of these
exceptionally complex machines.
Despite the success of his looms, Suzuki realized his company had to diversify and he
began to look at other products. Based on consumer demand, he decided that building
a small car would be the most practical new venture. The project began in 1937, and
within two years Suzuki had completed several compact prototype cars. These first
Suzuki motor vehicles were powered by a then-innovative, liquid-cooled, four-stroke,
four-cylinder engine. It featured a cast aluminum crankcase and gearbox and
generated 13 horsepower (9.7 kW) from a displacement of less than 800cc.
With the onset of World War II, production plans for Suzuki's new vehicles were
halted when the government declared civilian passenger cars a "non-essential
commodity."
After the war, the Japanese had a great need for affordable, reliable personal
transportation. A number of firms began offering "clip-on" gas-powered engines that
could be attached to the typical bicycle. Suzuki's first two-wheel ingenuity came in
the form of a motorized bicycle called, the "Power Free." Designed to be inexpensive
and simple to build and maintain, the 1952 Power Free featured a 36 cc two-stroke
engine. An unprecedented feature was the double-sprocket gear system, enabling the
rider to either pedal with the engine assisting, pedal without engine assist, or simply
disconnect the pedals and run on engine power alone.
The system was so ingenious that the patent office of the new democratic government
granted Suzuki a financial subsidy to continue research in motorcycle engineering,
and so was born Suzuki Motor Corporation.
In 1953, Suzuki scored the first of many racing victories when the tiny 60 cc
"Diamond Free" won its class in the Mount Fuji Hill Climb.
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By 1954, Suzuki was producing 6,000 motorcycles per month and had officially
changed its name to Suzuki Motor Co., Ltd. Following the success of its first
motorcycles, Suzuki created an even more successful automobile: the 1955 Suzulight.
Suzuki showcased its penchant for innovation from the beginning. The Suzulight
included front-wheel drive, four-wheel independent suspension and rack-and-pinion
steering -- features common on cars half a century later.
Maruti Suzuki India Limited (MSIL) was established in Feb 1981 through an Act
of Parliament, as a Government company with Suzuki Motor Corporation of
Japan holding 26 per cent stake. It was entrusted the task of achieving the
following:
Maruti collaborated with Suzuki of Japan to produce the first affordable car for
the average Indian. At this time, the Indian car market had stagnated at a volume
of 30,000 to 40,000 cars for the decade ending 1983. This was from where
Maruti took over.
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.
India's largest automobile company, it entered the Indian car market with the
avowed aim to provide high quality, fuel - efficient, low - cost vehicles. Its cars
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operate on Japanese technology, adapted to Indian conditions and Indian car
users. Maruti comes in a variety of models in various segments.
In the small car segment it produces the Maruti 800 and the Zen.The big car
segment includes the Maruti Esteem and the Maruti 1000.
Maruti Suzuki was born as a Government of India company, with Suzuki as a minor
partner, to make a people’s car for middle class India. Over the years, the product
range has widened, ownership has changed hands and the customer has evolved.
Later the logo of Suzuki Motor Corp. was also added to it.
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Type Public (BSE MARUTI, NSE MARUTI)
Founded 1981
Headquarters Gurgaon, Haryana, India
Shinzo Nakanishi, CEO
Key people
Jagdish Khattar, Managing Director
Industry Automotive
Products Cars
Revenue ▲US$2.5 billion (2005)
Employees 6,903
Parent Suzuki
Website www.marutisuzuki.com
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BOARD OF DIRECTORS:
Shinzo Nakanishi
Director (Production)
Tsuneo Ohashi
Shuji Oishi
Director
O Suzuki
Chairman (Non-Executive)
R C Bhargava
Directors Amal Ganguli
D S Brar
Manvinder Singh Banga
Pallavi Shroff
Company Secretary Anil Rustgi
Whole-time Director Keilchi Asai
Additional Director Kenichi Ayukawa
Director D S Brar
Tsuneo Kobayashi
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WHY GO FOR MARUTI SUZUKI?
Maruti Suzuki owners experience fewer problems with their vehicles than any
other car manufacturer in India (J.D. Power IQS Study 2004). The Alto was
chosen No.1 in the premium compact car segment and the Esteem in the entry
level mid - size car segment across 9 parameters.
The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in the
premium compact car segment and the Esteem No.1 in the entry level mid - size
car segment. This study measures owner in terms of design, content, layout and
performance of vehicles across 8 parameters.
Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189
cities, with a workforce of over 6000 trained sales personnel to guide our
customers in finding the right car. Our high sales and customer care standards led
us to achieve the No.1 nameplate in the J.D. Power SSI Study 2004.
In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7
parameters: least problems experienced with vehicle serviced, highest service
quality, best in-service experience, best service delivery, best service advisor
experience, most user-friendly service and best service initiation experience.
92% of Maruti Suzuki owners feel that work gets done right the first time during
service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki
owners would probably recommend the same make of vehicle, while 90%
owners would probably repurchase the same make of vehicle.
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• One Stop Shop
At Maruti Suzuki, you will find all your car related needs met under one roof.
Whether it is easy finance, insurance, fleet management services, exchange-
Maruti Suzuki is set to provide a single-window solution for all your car related
needs.
The acquisition cost is unfortunately not the only cost you face when buying a
car. Although a car may be affordable to buy, it may not necessarily be affordable
to maintain, as some of its regularly used spare parts may be priced quite steeply.
Not so in the case of a Maruit Suzuki. It is in the economy segment that the
affordability of spares is most competitive, and it is here where Maruti Suzuki
shines.
The highest satisfaction ratings with regard to cost of ownership among all
models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto
and Omni.
We are proud to have the lowest cost of operation/km (among petrol vehicles) -
the top 5 models are all Maruti Suzuki models : Maruti 800, Alto, Zen, Omni and
Wagon R.
In 2001, Maruti Suzuki India Ltd became one of the first automobile companies
anywhere in the world to get an ISO 9001:2000 certification. AV Belgium, global
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auditors for International Organization for Standardisation(ISO), certified Maruti
after a four day long audit, covering varied parameters like Customer Focussed
organisation, Leadership, Involvement of people, Process approach, System
approach to Management, Continual improvement, etc.
CODE OF CONDUCT
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to-day activities and also comply with all applicable standards, policies and
procedures of the company.
This policy should be read in conjunction with applicable regulations & existing
policies & procedures of the Company.
APPLICABILITY:
This Code of Conduct is applicable to all Senior Management Personnel which would
include the
directors of the Company, the top management personnel (i.e., executive directors &
advisors at executive director level) & all functional heads (including management
personnel with direct functional reporting to directors & top management personnel).
All Senior Management Personnel are expected to comply with the letter and spirit of
this Code. The Senior Management Personnel should continue to comply with other
applicable laws & regulations and the relevant policies, rules and procedures of the
Company.
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BUSINESS OPPORTUNITIES:
Senior Management Personnel should not exploit for their own
benefit, opportunities that are discovered through the use of
Corporate property, information or position unless the opportunity is
disclosed fully in writing to the Company’s Board of Directors and
the Board of Directors authorizes the said Senior Management
Personnel to pursue such opportunity. Further, the Senior
Management Personnel must refrain from using the Company's
property or information for personal gain.
DISCIPLINARY ACTIONS:
The matters covered in this Code of Business Conduct and Ethics
are of the utmost importance to the Company, its stockholders and
its business partners, and are essential to the Company's ability to
conduct its business in accordance with its stated values. They
expect all of their Senior ManagementPersonnel to adhere to these
rules in carrying out their duties for the Company.
The Company will take appropriate action against any Senior
Management Personnel whose actions arefound to violate these
policies or any other policy of the Company. Disciplinary actions may
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include immediate termination of directorship, employment or
business relationship at the Company's sole.
But what makes the Maruti Suzuki motorsport calendar an attraction in India
(and internationally too) are Maruti-Suzuki Raid-de-Himalaya, Maruti Suzuki
Rally Desert Storm and Maruti Suzuki Monsoon Car Rally of Kerala.
Every year, more and more people are coming for the Maruti Suzuki Raid-de-
Himalaya, many of them from abroad. In 2007, as many as 145 teams
participated in car and bike categories.
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MILESTONES:
2005
2004
2003
2002
WagonR Pride
Esteem Diesel. All
other variants
upgraded
Maruti Insurance. Two
new subsidiaries
started: Maruti
Insurance Distributor
Services and Maruti
Insurance Brokers
Limited
Alto Spin LXi, with
electronic power
steering
Special edition of
Maruti 800, India’s first
colour-coordinated car
Maruti True value in
Mumbai
Maruti Finance in
Mumbai with 10
finance companies
Suzuki Motor
Corporation (SMC)
increases its stake in
Maruti to 54.2 percent
2001
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Zen LXi
Maruti True Value
launched in Bangalore
and Delhi
Maruti Versa, India’s
first luxury MPV
Alto Spin LXi, with
electronic power
steering
Alto Vxi
Customer information
centers launched in
Hyderabad, Bangalore
and Chennai
Launch of versa
2000
PRODUCTION MILESTONES:
AWARDS:
2006
JD Power CSI: 1st Rank, 7 years in a row 2000 – 2006
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JD Power SSI: 1st Rank, 3 years in a row 2004 – 2006
Tops TNS TCS Survey in key segments, 5 years in a row 2002 - 2006
Among Top 5 car companies in the Forbes list of the Worlds Most Reputed
Companies – Nov 06
Features in Business Today’s annual list of “20 companies to look for in 2007” –
Nov 06
The only automobile manufacturer to feature in Business Today’s list of “India’s
Best 10 Marketers – Nov 06
2005
Ranks 1st among Automobile companies in the Corporate Image Monitor (CIM)
Study 2005 conducted by AC Nielsen ORG-MARG
Number one in JD Power CSI for the sixth time in a row - the only car to win
it so many times
M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study
Leadership in the JD Power Initial Quality Study - Alto number one in its
segment for the 2nd time in a row, Esteem number one in its segment for
the 3rd year in a row, Swift number one in the premium compact segment
WagonR and Esteem top their segments in the JD Power APEAL study
Ranks 1st in Auto sector for Corporate Reputation Strength (CSR) study – Feb
05
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study
(#1 in Auto sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC
( 2nd time in a row)-Feb 05
Business World ranks Maruti among top five most respected companies in
India-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in India by
Business Today - Sep '04
2004
Maruti Suzuki was No. 1 in Customer Satisfaction, No. 1 in Sales Satisfaction
No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal
(Esteem and Wagon R)
Business World ranked us among the country's five most respected companies
2003
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive
brands in "Most Trusted Brand survey 2003"
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.
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2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another international
first
2000
Maruti bags JD Power CSI - 1st rank; unique achievement by market leader
anywhere in the world
The entire facility is equipped with more than 150 robots, out of which 71 have been
developed in-house. More than 50 per cent of our shop floor employees have been
trained in Japan.
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Our Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and
Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in
February 2007. The World Car derived from concept A-Star would be manufactured
here.At present the plant rolls our World Strategic Models Swift & SX4 and
DZire.The plant has several in-built systems and mechanisms.
There is a high degree of automation and robotic control in the press shop, weld shop
and paint shop to carry on manufacturing work with acute precision and high
quality.The plant is designed to be flexible: diverse car models can be made here
conveniently owing to automatic tool changers, centralized weld control system and
numerical control machines that ensure high quality.
The plant at Manesar is the company's fourth car assembly plant and started with an
initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per
year by October 2008.
Suzuki Powertrain India Limited the diesel engine plant at Manesar is Suzuki &
Maruti's first and perhaps the only plant designed to produce world class diesel engine
and transmissions for cars.
The plant is under a joint venture company, called Suzuki Powertrain India Limited
(SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL.
This facility has an initial capacity to manufacture 100,000 diesel engines a year. This
will be scaled up to 300,000 engines/annum by 2010.
SAFETY PROVIDED:
WOMEN N DRIVING:
In the early 1990s, it was quite a discovery to see women drive a car in India. It was
completely a man's domain, and women mostly used public transport or were led by
chauffeur - driven cars.
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One of the limiting factors were the kind of cars that were available in the Indian
market at that time; cars were often bulky and difficult to drive.
Today, the Indian woman has moved beyond her traditional roles. The transition from
a humble homemaker to a tech savvy, independent, decision maker has happened and
women in India today occupy an important place in the society.One of the factors that
has contributed significantly to the success of women in India is "Mobility", and this
mobility has come in the form of personal transport.
Maruti Suzuki brought in the first car that was easy to drive and park in the Indian
sub-continent. Today the latest cars and the technology adaptations like power
steering make driving very easy and enjoyable. However, one important aspect was to
'learn to drive'.Only in this decade, organized players like Maruti have ventured into
imparting driving skills through organized schools with world class training modules.
Maruti Suzuki has taken up to train them 'how to drive safely' through its network of
40 Maruti Driving Schools spread over 36 cities. Over 21,000 women have been
trained at these Maruti Driving Schools.
While the individual woman gains from learning driving, in many cases this skill
leads to flexibility for the whole family.
Majority of these women are homemakers with little or limited access to affluence.
Some of them are college students, some are grandmothers, yet what is common is
their sheer passion to learn driving.
Lady instructors have been appointed to train women at these schools. These schools
are equipped with the world class, state of the art driving simulators and cars in good
condition. At MDS, the training modules are as per international standards and
include both theory and practical.
Difficult driving situations such as fog, uphill terrain, rain and night driving is
simulated on state-of-the-art simulators to give learners a first hand experience of the
weather conditions. Only after class room and simulator training the learners are taken
for actual driving on road.
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WHAT DO THE WOMEN LEARNERS HAVE TO SAY ABOUT IT?
• Anjana Khare, a homemaker, age 50, Bhopal: "Yeh bahut Zaroori Hai, kya
maloom kab kya zaroorat pad jaye".
• Mrs. Kalpana Rajpoot, veterinary doctor, Madhya Pradesh : "I kept postponing
my decision to learn how to drive for almost 8 years till I got tired of my
driver's 'nakhras' and walked upto , Maruti Driving School at Gwalior.
• Rachna Garg, age 20, Jammu and Yashmi: "With the basic Learner's course I
drive confidently on highways and city streets without being hassled.”
• Neeraj Wason , Allahabad : "When ever I would see a lady driving a car I
would wonder when I would be independent. I am glad that now I am a source
of inspiration for many other ladies in the town.”
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MARUTI AND IT’S STAKE HOLDERS:
CUSTOMERS:
The aspiration to give more for less to the customers has given the company a
competitive edge in competitive times. The VA-VE initiatives (Value Analysis &
Value Engineering) pursued aggressively by the company in partnership with
suppliers have helped the company reduce cost of making a car without
compromising on quality.
A wide and deep service network spread across the country has helped the company
reach customers not only in metro cities but also in semi-urban, tier-2 and tier-3 cities.
In addition, the company introduced many new initiatives such as car pick & drop
facility by service workshops for women car owners, Maruti Mobile Support to offer
door step car servicing, Express service bays, special bays that can offer maintenance
service in less than 2 hours, and so on. The company has a stringent customer
complaint monitoring system.
In these competitive times the challenge is to keep inventing newer ways of doing
things to keep the customers in your fold. Over the last few years ,the company
strengthened the existing practices and experimented with many new initiatives by
way of kaizens (continuous improvements) to delight its customers.
These initiatives ranged from product design and quality to network expansion, and
included new service programs to meet unsaid needs of customers.
• Key Initiatives:
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Car pickup & delivery facility for women car owners
SUPPLIERS:
In manufacturing where a sizeable percentage of inputs are bought from vendors and
suppliers, the ability to continuously improve quality and reduce costs is directly
dependent on vendors doing the same.
DEALERS:
The company has been passionately building its sales and service network since its
inception. The company has set up 16 Regional Training Centres across the country to
continuously upgrade skills of dealer employees as per new technologies and
customers'requirements.
In recent years, the company has conducted a comprehensive national survey of its
dealer employees to gauge their level of satisfaction. By many accounts, this is a rare
initiative by any principal company. Based on the results of the survey, the company
formed a cross functional team of senior management from sales, network
development and HR to identify an action plan to improve satisfaction levels of dealer
employees. One of the initiatives, for instance, was providing car loans at low rates of
interest for good performers with repayment guarantee provided by the dealer.
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The company has put in place a strong mechanism for Corporate Governance to
enhance confidence of its large number of shareholders and investors in the company.
The company complies with all guidelines of SEBI, including new guidelines of
Clause 49. With an objective to ensure timely compliance of all applicable laws and
regulations, the company has hired an agency called 'Chess Management' to assist in
further strengthening systems of Corporate Governance including installation of new
software 'eLCM', which tracks compliance using sophisticated IT systems and
generates compliance reports.
EMPLOYEES:
The company has enforced highly conducive working environment for its employees.
MSIL does not support favouritism in recruitment, promotion, providing
compensation, or termination based on caste, religion, gender or age. The company
offers equal opportunity for growth to all employees.
During the year, the company finalised its policy on affirmative action as per the
guidelines laid down by Confederation of Indian Industries.
Maruti culture:
Open office culture, easy accessibility and innovative HR practices comprise the
Maruti culture. Our Human Resources team views an employee as an "internal
customer" and strives to deliver maximum satisfaction to him through transparent,
sensitive and innovative HR practices. Participative management, team work and
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kaizen, communication and information sharing are the pillars of employee-
management relationship.
Following our open office culture we have a flat organizational structure with only
three levels of responsibilities via Board of Directors, Division Heads and Department
Heads. Carrying the philosophy forward, we have an open office, common uniforms
and a common canteen for all to create an environment of trust, transparency and a
sense of belonging amongst employees.
Growth opportunities:
Maruti Suzuki offers one of the best environments to learn and grow and to be
associated with some of the best processes and methods in the business of automotive
manufacturing. Apart from this, the company offers many services like Finance,
Insurance, and Driving School.
As with any progressive world class company, Maruti Suzuki 'listens' to employees
and acts on the feedback. Many innovative schemes and practices through the years
are results of having a good communication system across the organization.
CARS
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Maruti Zen Estilo Wagon R Versa
• Soft top
• Maruti SX4 Zxi
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Grand Vitara Swift DZire
COMMERCIAL VEHICLES
>> AMBULANCE
Omni Ambulance
AWAITED MODELS
Maruti A-Star
Environment initiatives::
The company has remained ahead of regulatory requirements in pursuit of
environment protection and energy conservation at its manufacturing facilities, and in
development of products that use fewer natural resources and are environment
friendly.
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Total energy consumption at the facilities has come down by 26 percent compared to
the beginning of the decade.
In this state of the art painting system, three wet-on-wet coats are applied and baked
together. Conventional painting systems use two baking steps before the final finish.
This helps is lower energy consumption and yet improving the productivity levels.
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The company has been facilitating implementation of Environment Management
System (EMS) at its suppliers' end. Regular training programs are conducted for all
the suppliers on EMS. Surveys are conducted to assess the vendors who need more
guidance. The systems and the environmental performance of suppliers are audited.
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800
Alto
Wagon-R Wagon-R
City car
Zen Estilo
Suzuki
Splash
Zen Zen
Historic
1000 Baleno
models
Esteem
The success of the joint venture led Suzuki to increase its equity from 26% to 40% in
1987, and further to 50% in 1992. In 1982 both the venture partners had entered into
an agreement to nominate their candidate for the post of Managing Director and every
Managing Director will have a tenure of five years.
Initially R.C.Bhargava, was the managing director of the company since the inception
of the joint venture. Till today he is regarded as instrumental for the success of Maruti
Udyog. Joining in 1982 he held several key positions in the company before heading
the company as Managing Director. Currently he is on the Board of Directors. After
completing his five year tenure, Mr. Bhargava later assumed the office of Part-Time
Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Manging
Director on August 27, 1997. Mr. Bhaskarudu had joined Maruti in 1983 after
spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited
as General Manager. Later in 1987 he was promoted as Chief General Manager, 1998
as Director, Productions and Projects, 1989 Director, Materials and in 1993 as Joint
Managing Director.
EXPORTS:
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major
focus on exports and it does not operate in the domestic Indian market. The first
commercial consignment of 480 cars were sent to Hungary. By sending a
consignment of 571 cars to the same country Maruti crossed the benchmark of
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300,000 cars. Since its inception export was one of the aspects government was keen
to encourage. Every political party expected Maruti to earn foreign currency.
Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda,
Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by
Maruti Exports.
The Middle-East region has also opened up and is showing good potential for growth.
Some markets in this region where Maruti has a good presence are Saudi Arabia,
Jordan, Kuwait, Bahrain, Qatar and UAE. Maruti has won several national and
international accolades. Forbes magazine ranked Maruti at 91 in the list of "World's
Most Reputed Companies". The TNS Automotive Global Corporate Social
Responsibility (CSR) study has rated Maruti as India 's "Most Trusted" passenger car
company.
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The export portfolio, so far dominated by Alto and Maruti 800, will be bolstered with
the launch of A-Star during the latter part of 2008-09. The Company has entered into
a partnership with Mundra Port for a dedicated car terminal, including a stockyard and
parking area, in preparation for the sharp scale-up in
exports in the next few years.
The Company sold 53,024 units during 2007-08. This is the highest ever export
volume in a year for the Company, and marked a growth of 35 percent over the
previous year. The Company's contribution towards total exports by the industry
increased to 25% from 20% last year. Cumulative exports made by the Company
crossed the milestone of 500,000 vehicles.
The Company has decided that while focussing on volume growth,it will enhance
efforts to improve profitability from export operations.Exports will enable the
Company to be at the frontier of technology,
quality and manufacturing excel.
The Company is India's most awarded car Company. Some of the awards won by the
Company during the year under review are:
• The prestigious Golden Peacock Award for excellence in the field of
Environment Management in Automobile Sector.
• JD Power Customer Satisfaction Award. This award has been received for the
8th time in a row.
• 2007 India IQS Award for Maruti Swift which has been highest ranked model
in the Premium Compact car segment.
• 2007 India APEAL for Maruti Zen Estilo which has been highest ranked
model in Compact car segment.
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• 2007 India APEAL for Maruti Swift which has been highest ranked model in
Premium Compact car segment.
• 2007 India APEAL for Maruti SX4 which has been highest ranked model in
Midsize car segment.
• "Car Manufacturer of the Year" Award by NDTV.
• ICICI-NDTV Profit Viewers Choice Award for Maruti SX4 in the Midsize car
segment.
• CNBC TV-18 Autocar Midsize Car Award for Maruti SX4.
• CNBC TV-18 Autocar Value for Money for Maruti SX4.
• CNBC TV 18 Autocar Award for Viewers Choice for Maruti SX4.
• CNBC TV-18 Autocar Manufacturer Award.
• "Manufacturer of the Year" Award in the Passenger Car category by Auto
Monitor.
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Cash and Bank Balance 324.00 1,422.80 1,401.60 1,029.40 240.20
Loans and Advances 1,920.00 1,643.50 933.10 801.90 775.00
Current Liabilities 2,718.90 2,288.60 1,704.80 1,454.20 1,520.20
Provisions 1,116.50 1,061.40 471.30 389.20 320.40
Net Current Assets 102.10 1,165.10 1,685.90 1,254.00 303.80
Miscellaneous Expenses not w/o 0.00 0.00 0.00 0.00 16.30
Total Assets 9,315.60 7,484.70 5,524.30 4,686.40 3,903.10
Contingent Liabilities 1,241.33 874.90 881.40 1,051.40 1,297.30
The gross revenue (net of excise) ofthe Company for the year was Rs. 188,238 million
as against Rs. 152,523 million in the previous year showing an impressive growth of
23.4%. Earnings before depreciation,interest, tax and amortization (EBDITA) stood at
Rs. 31,308 million against Rs. 25,888 million in the previous year, recording a jump
of 20.9%.Based on technical evaluation and market considerations, the Company has,
with effect from 1st April 2007, revised the estimated useful life of certain assets
which resulted in depreciation being higher by Rs. 2,122 million for the current year
with a corresponding reduction in profit for the year and net fixed assets. Profit before
tax (PBT) stood at Rs. 25,030 million against Rs. 22,798 million in the previous year
showing a growth of 9.8% and Profit after Tax (PAT) stood at Rs. 17,308 million
against Rs. 15,620 million in the previous year showing a growth of 10.8%.
DIVIDEND:
The Board recommends a dividend of100% (i.e. Rs. 5 per equity share of Rs. 5 each)
for the year ended 31 March 2008 amounting to Rs. 1,445million as against a
dividend of 90% amounting to Rs. 1,300 million, paid for the year ended 31 March
2007.
CAPITAL HISTORY:
FURTURE PROSPECTS
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• To develop capability for full model change.
• To upgrade R&D capabilities for total evaluation of products.
• Emphasis on VA-VE & innovative cost reduction ideas to cut down costs.
• Carry out continuous up-gradation of existing models.
• Maximum localisation for achieving cost reduction in existing as well as new
models.
• Compliance with Bharat Stage IV emission norm and other new regulations.
• Developing knowledge of costing of various Automotive Technologies
through standard cost tables and cost benchmarking.
• Cost planning of new products coinciding with the new Product planning to
put cost in the right perspective at the concept stage and give target cost to
designers.
• Design in cost reduction to reduce costs from concept stage itself.
• Develop more products with alternative fuel option.
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• Spares stockyards in select centres across the country to meet customer
requirements faster.
• Suzuki aims to make India car unit production hub: Japan's Suzuki Motor
Corp expects to make its Indian unit a major production hub and pursue an
aggressive strategy to retain its dominant market share in India, the unit's new
managing director. Japan's Suzuki Motor Corp expects to make its Indian unit
a major production hub and pursue an aggressive strategy to retain its
dominant market share in India, the unit's new managing director said
• The company, which is expanding its capacity to hit 1 million units by 2010,
will launch other models that will upgrade consumers from its popular small
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cars such as the Alto and Zen Estillo, Shinzo Nakanishi said in e-mailed
responses a day after taking over as managing director.
• He said, "We have an aggressive plan for new model launches," said
Nakanishi, who has previously worked in China, Indonesia, Hungary, Pakistan
and the Middle East. "Maruti Suzuki is ready to play a much bigger role in
Suzuki's global operations," he said. "Its manufacturing capability has reached
a level where we want to make small cars exclusively in India for export to
Europe." Of the 3 million cars that Suzuki wants to sell worldwide by fiscal
2010, Maruti Suzuki will account for a third.
• "Small cars would continue to grow", says Chairman, Maruti Suzuki: Car
market leader Maruti Suzuki India Limited had its 27th Annual General
meeting.Addressing the shareholders Chairman Mr. RC Bhargava said
emphatically, "The future belongs to small cars."Supporting his statement he
said, "Worldwide there seems to be no respite from increasing fuel prices. In
addition, the commodity prices have also shot up manifold. Therefore, the
demand for small, light-weight, fuel efficient cars would grow and strengthen.
This trend is clearly visible in global markets and is likely to enter India as
well."
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Gurgaon
To being with “Maruti Udyog” had changed its name to “Maruti Suzuki”. Suzuki
besides being the parent company, imparts a international dimension in corporate
world. Suzuki Motor Corporation is a leading player in the global automobile market
so with the alteration in the company’s name, it has become a leader in India as well
as in other parts of the world.
Maruti Suzuki a leading company in the automobile industry, thereby its chairman
Mr.R.C Bhargava has decided that it wouldn’t response to any other company’s plan.
He has also said that every company has its own strategies and if they would start
reacting on them their statergy would fail.
Maruti Suzuki has no plans to enter in to the competitions with Nano of the TATA
company as Maruti has already been in the small car segment since very beginning,
where as the managing director and the chairman of the company say that Nano has
entered into a completely different segment and they are not competing in that
segement. The introduction of TATA Nano cars is a threart to the two wheelers and
not the Maruti Suzuki products.
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Recently in an auto expo in delhi Maruti Suzuki India has show cased three conpect
cars. Namely,Concept A-Star, Concept Splash and Concept Kizashi. Production
models, based on Concept A-Star and Concept Splash, will be launched in India in the
near future, and will contribute to the company’s goal of achieving one million unit
sales by 2010.
I believe Maruti Suzuki is ready to play a major role in global automobile operations,
as they pursue a good code of conduct and has always worked as a corporate
governance and have excellent leadership qualities which are essential for any
corporate to a leader in any industry.
As ,maruti has enterd in wide range of exporting its products in the middle east and
asian countries I wish it can have its dealings worldwide.
As a suggestion or piece of advice I would like to say that the company should
produce more an more smaller and affordable cars for its customers.
BIBILOGRAPHY
1. www.maurtisuzuki.com
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2. http://www.topnews.in/maruti-will-not-react-another-company-s-plan-
khattar-21433
3. http://www.cmlinks.com/moneypore/profilenew/financial.asp?mainopt
=9&cocode=5496
4. http://www.marutiexports.com/rhdv.asp
5. http://www.infoplease.com/ce6/bus/A0805415.html
6. http://auto.indiamart.com/auto-industry/
7. http://auto.indiamart.com/auto-industry/component-industry.html
8. http://www.surfindia.com/automobile/auto-export.html
9. http://www.energymanagertraining.com/automobile/IndiaAutomobileI
ndustry.htm
10. http://www.pcra.org/English/transport/dilipchenoy.p
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