Maruti Suzuki India Ltd

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a
subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car
company, accounting for over 50 per cent of the domestic car market. Maruti Udyog
Limited was incorporated in 1981 under the provisions of Indian Companies Act 1956
and the government of India selected Suzuki Motor Corporation as the joint venture
partner for the company. In 1982 a JV was signed between Government of India and
Suzuki Motor Corporation.
It was in 1983 that the India’s first affordable car, Maruti 800, a 796 cc hatch back was
launched as the company went into production in a record time of 13 month.
More than half the number of cars sold in India wear a Maruti Suzuki badge. They are a
subsidiary of Suzuki Motor Corporation Japan. The company offer full range of cars–
from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R,
Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception, the company has produced and sold over 7.5 million vehicles in India
and exported over 500,000 units to Europe and other countries.
They were born as a government company, with Suzuki as a minor partner, to make a
people's car for middle class India. Over the years, its product range has widened,
ownership has changed hands and the customer has evolved. What remains
unchanged, then and now, is their mission to motorise India. MSIL’s parent
company, Suzuki Motor Corporation, has been a global leader in mini and compact cars
for three decades. Suzuki's technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient. The
same characteristics make their cars extremely relevant to Indian customers and Indian
conditions. Product quality, safety and cost consciousness are embedded into their
manufacturing process, which they have inherited from their parent company.
Right from inception, Maruti brought to India, a very simple yet powerful Japanese
philosophy 'smaller, fewer, lighter, shorter and neater'
From the Japanese work culture they imbibed simple practices like an open office, a
common uniform and common canteen for everyone from the Managing Director to the
workman, daily morning exercise, and quality circle teams.
Maruti Suzuki exports entry–level models across the globe to over 100 countries and
the focus has been to identify new markets. Some important markets include Latin
America, Africa and South East Asia.Interestingly with a brand new offering A–star,
Maruti Suzuki is ready to take on European markets.Maruti Suzuki 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 per cent over the previous year.Maruti Suzuki has exported over
552,000 units cumulatively with about 280,000 units to Europe and Israel .
Maruti Suzuki has two state–of–the–art manufacturing facilities in India. The first facility
is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over
600 acres in North India. The Gurgaon facility – Maruti Suzuki's facility in Gurgoan
houses three fully integrated plants. While the three plants have a total installed
capacity of 350,000 cars per year, several productivity improvements or shop floor
Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/
annum at the Gurgaon facilities.
 The Manesar facility – Its 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. At present the plant rolls out World Strategic Models
Swift , A–star & SX4 and DZire.The plant has several in–built systems and
mechanisms.
Diesel Engine Plant– Suzuki Powertrain India Limited – Suzuki Powertrain India Limited
the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant
designed to produce world class diesel engine and transmissions for cars. The plant is
under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in 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.
In 2012 Senior management members were injured as workers resort to violence at
Maruti Suzuki’s Manesar plant.
Product range of the company includes:
It offer full range of cars– from entry level Maruti 800 & Alto to stylish hatchback Ritz, A
star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand
Vitara.

 Maruti Alto 800

 Omni
 Gypsy
 Zen Estilo
 Wagon R
 Versa
 A– Star
 Ritz
 SX4
 Dzire
 Grand Vitara
 Ertiga
 Celerio
 Nexa

Accolades
During 2009–10, the company, its products and services received reputed awards and
accolades instituted by independent expert groups, media houses and research
agencies.
These Include

 Rated as No. 1 in J D Power Sales Satisfaction Index

 Hatchback of the year – Ritz by Autocar
 Car of the year – Ritz by Business Motoring
 Manufacturer of the year by CNBC Overdrive
 Ranked third amongst global car companies in the World's Most Reputed Company
Survey 2009
 National Award for Excellence in Corporate Governance by ICSI

Financial Year Net Sales ( ` in millions)

2008-09 203,583
2009-10 289,585
2010-11 358,490
2011-12 347,059
2012-13 426,126
2013-14 426,448

Sales Growth of Maruti Suzuki Limited in last

6 years
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
2008-09 2009-2010 2010-11 2011-12 2012-13 2013-14

Fig : Sales data of Maruti Suzuki Limited on a yearly basis over last 6 years

The above study examines the sales strategies of Maruti Suzuki India Limited (Maruti),
a subsidiary of Japan based Suzuki Motor Corporation (Suzuki), the market leader in
the Indian passenger car industry. Maruti was founded in 1981. After the liberalization of
the Indian economy in 1991, several foreign players had entered the Indian passenger
car market. Maruti started losing market share as the competitors firmly established
their foothold in the car market with the launch of several new models that became
popular with the Indian buyers. The company focused on upgrading manufacturing,
increasing capacity, launching new products at regular intervals so as to cater to all the
segments of the Indian passenger car market and venturing into other related
businesses like car finance, insurance and buying and selling used Maruti cars. Maruti's
restructuring exercise helped the company hold its market leadership position and retain
its market share. The case examines how the deregulation of the Indian automobile
industry had an adverse impact on Maruti's market share.