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Maruti Suzuki

From Wikipedia, the free encyclopedia

Maruti Suzuki India Limited


Industry Automotive

Founded 1981 (as Maruti Udyog Limited)

Headquarters Delhi, India

Key people Mr. Shinzo Nakanishi, Managing

Director and CEO

Products Automobiles, Motorcycles

Revenue US$4.8 billion (2009)

Employees 6,903 [1]

Parent Suzuki Motor Corporation


Maruti Suzuki India Limited (Hindi: मारित सुजूकी इंिडया िलिमटेड) a partial subsidiary of Suzuki
Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45%
of the domestic car market. The company offers a complete range of cars from entry
level Maruti 800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and
sedans DZire, SX4 and Sports Utility vehicleGrand Vitara.[2]

It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India
and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India
Limited. The company's headquarters are located in Delhi.


• 1 Profile

• 2 Partner for the joint venture

• 3 Joint venture related issues

• 4 Industrial relations

• 5 Services offered

○ 5.1 Current sales of automobiles

 5.1.1 Manufactured locally

 5.1.2 Imported

○ 5.2 Discontinued car models

○ 5.3 Manufacturing facilities

 5.3.1 Gurgaon Manufacturing


 5.3.2 Manesar Manufacturing


○ 5.4 Sales and service network

○ 5.5 Maruti Insurance

○ 5.6 Maruti Finance

○ 5.7 Maruti TrueValue

○ 5.8 N2N Fleet Management

○ 5.9 Accessories
○ 5.10 Maruti Driving School

• 6 Issues and problems

• 7 Exports

• 8 See also

• 9 References and notes

• 10 External links


Maruti 800 in Nainital hill

The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it
'To Munsiyari on a Maruti 800',Uttarakhand Himalayas

Maruti Suzuki plant in Gurgaon

Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in
the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently,
18.28% of the company was owned by the Indian government, and 54.2% by Suzukiof Japan.
The BJP-led government held an initial public offering of 25% of the company in June 2003. As
of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this,
Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was
the only modern car available in India, its only competitors- the Hindustan
Ambassador and Premier Padmini were both around 25 years out of date at that point. Through
2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and
various several other countries, depending upon export orders. Models similar to Maruti Suzukis
(but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and
manufactured in Pakistan and otherSouth Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 730,000 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 Suzuki Alto tops the sales charts and Maruti
Suzuki Swift is the largest selling in A2 segment.

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 ("Maruti" is another name of the Hindu god, Hanuman).

Maruti Suzuki has been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi.
Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity
of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines
and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over
700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of
Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned
by public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six
million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December

Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are
manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit
(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is 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.

Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated
first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia

Further information: Timeline of Maruti Suzuki

[edit]Partner for the joint venture

Sanjay Gandhi owned the Maruti Technical Services Limited, which ran into trouble and was
liquidated. After the death of Sanjay Gandhi, the Indira Gandhi government assigned a
delegation of Indian technocrats to hunt for a collaborator for the project. Initial rounds of
discussion were held with the giants of the automobile industry
in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a
small player in the four wheeler automobile sector and had major share in the two wheeler
segment. Suzuki's bid was considered negligible.
While the major companies were personally represented in the initial rounds of discussion,
Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the
rounds of discussion. Osamu in an article writes that it subtly massaged their (Indian
delegation's) egos and also convinced them about the sincerity of Suzuki's bid. Suzuki in return
received a lot of help from the government in such matters as import clearances for
manufacturing equipment (against the wishes of the Indian machine tool industry then and its
own socialistic ideology), land purchase at government prices for setting up the
factory Gurgaon and reduced or removal of excise tariffs. This ensured that Suzuki
conscientiously nursed Maruti Suzuki through its infancy to become one of its flagship ventures.

[edit]Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global car
model, was designed and is made only in India.[5] Besides being Suzuki's largest subsidiary in terms of car
sales, Maruti Suzuki is also Suzuki's leading research and development arm outside Japan

Relationship between the Government of India, under the United Front (India) coalition
and Suzuki Motor Corporation over the joint venturewas a point of heated debate in the Indian
media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile market and the nature of the
partnership built up till then was the underlying reason for most issues. 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[6]

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 Suzuki. 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.[7] 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 Managing Director on 27 August 1997. Mr. Bhaskarudu had joined
Maruti Suzuki 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, 1988 as Director, Productions and Projects, 1989 Director, Materials and in 1993 as
Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with the
reason of it being called on a short notice.[8]Later Suzuki Motor Corporation went on record to
state that Mr. Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry
of Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki
sources that Bhaskarudu was interested to indigenise most of components for the models
including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for
the Government and would not let it increase its stake in the venture.[9] If Maruti Suzuki would
have been able to indigenise gear boxes then Maruti Suzuki would have been able to
manufacture all the models without the technical assistance from Suzuki. Till today the issue of
localization of gear boxes is highlighted in the press.[10]

The relation strained when Suzuki Motor Corporation moved to Delhi High Court to bring a stay
order against the appointment of Mr. Bhaskarudu. The issue was resolved in an out-of-court
settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31
December 1999, and from 1 January 2000, Jagdish Khattar, Executive Director of Maruti Udyog
Limited would assume charges as the Managing Director.[11] Many politicians believed, and had
stated in parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and
reduce imports. This remains true, even today the gear boxes are still imported from Japan and
are assembled at the Gurgaon facility.

[edit]Industrial relations
For most of its history, Maruti Udyog Limited had relatively few problems with its labour force. Its
emphasis of a Japanese work culture and the modern manufacturing process, first instituted in
Japan in the 1970s, was accepted by the workforce of the company without any difficulty. But
with the change in management in 1997, when it became predominantly government controlled
for a while, and the conflict between the United Front Government and Suzuki may have been
the cause of unrest among employees. A major row broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among other
things, revision of the incentive scheme offered and implementation of a pension scheme.
Employees struck work for six hours in October 2000, irked over the suspension of nine
employees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of
the incentive-linked pay and threatened to fast to death if the suspended employees were not
reinstated. About this time, the NDA government, following a disinvestments policy, proposed to
sell part of its stake in Maruti Suzuki in a public offering. The Staff union opposed this sell-off
plan on the grounds that the company will lose a major business advantage of being subsidised
by the Government.

The standoff with the management continued to December with a proposal by the management
to end the two-month long agitation rejected with a demand for reinstatement of 92 dismissed
workers, with four MUL employees going on a fast-unto-death. In December the company's
shareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time around
1500 plant workers from the MUL's Gurgaon facility were agitating outside the company's
corporate office demanding commencement of production linked incentives, a better pension
scheme and other benefits. The management has refused to pass on the benefits citing
increased competition and lower margins.[12]

[edit]Services offered
[edit]Current sales of automobiles

Maruti Omni
India's Corps of Military Police personnel patrolling the Wagah border crossing in thePunjab in a Maruti Gypsy.

Maruti WagonR

Maruti Alto

Maruti Suzuki Swift

Maruti Suzuki Zen Estilo

Suzuki SX4

5th Generation Suzuki Alto is sold as Maruti Suzuki A-Star in India.

Maruti Suzuki Swift DZire

Suzuki Splash is sold as Maruti Suzuki Ritz in India.

[edit]Manufactured locally

1. 800 (Launched 1983)

2. Omni (Launched 1984)

3. Gypsy (Launched 1985)

4. WagonR (Launched 2002)

5. Alto (Launched 2000)

6. Swift (Launched 2005)

7. Estilo (Launched 2009)

8. SX4 (Launched 2007)

9. Swift DZire (Launched 2008)

10. A-star (Launched 2008)

11. Ritz (Launched 2009)

12. Eeco (Launched 2010)

Suzuki Grand Vitara

1. Grand Vitara (Launched 2007)

[edit]Discontinued car models
1. 1000 (1990–1994)

2. Zen (1993–2006)

3. Esteem (1994–2008)

4. Baleno (1999–2007)

5. Zen Estilo (2006–2009)

6. Versa (2001–2010)

7. Grand Vitara XL7 (2003–2007)


[edit]Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[13] Both manufacturing
facilities have a combined production capacity of 1,250,000 vehicles annually.

[edit]Gurgaon Manufacturing Facility

The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles
annually but productivity improvements have enabled it to manufacture 700,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The
entire facility is equipped with more than 150 robots, out of which 71 have been developed in-
house. The Gurgaon Facilities manufactures
the 800, Alto, WagonR, Estilo, Omni, Gypsy and Eeco.

[edit]Manesar Manufacturing Facility

The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this
was increased to 300,000 vehicles annually in October 2008. The production capacity was
further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles
annualy. The Manesar Plant produces the A-star,Swift, Swift DZire and SX4.

[edit]Sales and service network

Maruti Suzuki is one of the companies in India which has unparalleled sales and service
network. As of March 2010 it has 802 dealerships across 555 towns and cities in India. To
ensure the vehicles sold by them are serviced properly, Maruti Suzuki has 2,740 workshops
(including dealer workshops and Maruti Authorised Service Stations) in 1,335 towns and
cities[14]. It has 30 Express Service Stations on 30 National Highways across 1,314 cities in
India. The company is planning to expand the number of dealerships to 1,500 by 2015.[15]

Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have
not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help
many stranded vehicles on the highways by sending across their repair man to the vehicle.[16]

[edit]Maruti Insurance
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[17]

This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its

[edit]Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan.[19] Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in
March 2003[20] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBI-Maruti Finance is currently available in 166 cities across India.[21]

"Maruti Finance marks the coming together of the biggest players in the car finance business. They
are the benchmarks in quality and efficiency. Combined with Maruti volumes and networked
dealerships, this will enable Maruti Finance to offer superior service and competitive rates in the

— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference announcing
the launch of Maruti Finance on 7 January 2002[19]
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank
N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%.[22] GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti
Countrywide.[23] Maruti claims that its finance program offers most competitive interest rates to
its customers, which are lower by 0.25% to 0.5% from the market rates.

[edit]Maruti TrueValue
Main Article: Maruti True Value

Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used
Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the
help of this service in India. As of 2009 there are 315 Maruti True Value outlets.[24]

[edit]N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Its impressive list of clients who have signed up of this
service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona
Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet
management service include end-to-end solutions across the vehicle's life, which includes
Leasing, Maintenance, Convenience services and Remarketing.[25]


Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to
Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through
dealer outlets and authorized service stations throughout India.[26]

[edit]Maruti Driving School

A Maruti Driving School in Chennai

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in
Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical
sessions. Many international practices like road behaviour and attitudes are also taught in these
schools. Before driving actual vehicles participants are trained on simulators.[27]

"We are very concerned about mounting deaths on Indian roads. These can be brought down if
government, industry and the voluntary sector work together in an integrated manner. But we felt
that Maruti should first do something in this regard and hence this initiative of Maruti Driving

— Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore

[edit]Issues and problems

On February, 24, 2010, Maruti Suzuki India, announced recalling of 100,000 A-Star hatchbacks
to fix a fuel leakage problem. the company will replace the gaskets for all 100,000 A-Star cars.[28]


Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignment of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki
crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign

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.
[edit]See also
Companies portal

 Suzuki Motor Corporation

 Cars in India

 Automobile industry in India

[edit]References and notes
1. ^ Maruti Udyog Ltd. Company Profile [1]

2. ^ "Automobile Industry India". Imagin Mor Pty Ltd.

3. ^ "J.D.Power and Associates - Press Release". 2009-10-27. Retrieved 2010-06-26.

4. ^ The Hindu, Business Published on Monday, 24 November 2003.

Osamu Suzuki's article was published in Kenshu, a Japanese
quarterly publication of the Association for Overseas Technical too is a partner... [2]

5. ^ The Earthtimes (2008-01-09). "Suzuki's A-Star concept in global

debut at Delhi auto show | Earth Times News".
Retrieved 2010-06-26.

6. ^ Rediff on the Net: A successful marriage goes to court 19

September 1997 [3]

7. ^ "Rediff, On the Net - Date: 3 September 1997".

1997-09-03. Retrieved 2010-10-10.

8. ^ "Rediff, On the Net Date: 27 August 1997". 1997-08-

27. Retrieved 2010-10-10.

9. ^ "Rediff on the Net ''Bhaskarudu: The man Suzuki loves to hate''". 1997-09-22. Retrieved 2010-10-10.

10. ^ Business Linte: Maruti Suzuki disinvestment — Releasing the

clutch Sunday, 19 May 2002 [4]

11. ^ "Government, Suzuki resolve Maruti Suzuki row 8 June 1998".

Rediff. Retrieved 2010-10-10.
12. ^ "Article Timeline of Maruti Suzuki Labour Unrest, World History
Archive". Retrieved 2010-10-10.

13. ^ "Facilities". Retrieved 2010-10-10.

14. ^ Maruti Suzuki's Network

15. ^ 5 Aug, 2010, 07.27PM IST,PTI (2010-08-05). "Maruti to increase

sales outlets to 1,500 in 5 years".
Retrieved 2010-10-10.

16. ^ 5 Paise Stock Broking's report on Maruti Udyog Limited before

the IPO (.pdf file) [5]

17. ^ The Hindu Business:Saturday, 11 May 2002 - Maruti launches

car insurance [6]

18. ^ The Hindu Business Line Sunday, 18 December 2005 -Maruti

Insurance ramps up sales [7]

19. ^ a b c Press Release by Maruti Suzuki, Cached page from Google

20. ^ Business Line, Saturday, 15 March 2003, SBI ties up with Maruti
Suzuki for car loans [8]

21. ^ Retail Yatra. Com, 8 August 2003 -Maruti Suzuki, State Bank of
Bikaner & Jaipur join hands for car financing Jaipur [9]

22. ^ The Hindu, Online edition of India's National Newspaper,

Published: Thursday, 26 July 2001, Citicorp Maruti Finance gets
P1 plus [10]

23. ^ Maruti Finance, Joint Ventures[dead link]

24. ^ — The Maruti TrueValue website —

25. ^ Writeup about the Maruti N2N Fleet Management Solution

26. ^ Maruti Genuine Accessories[dead link]

27. ^ Deccan Herald, Online edition of Sunday, 20 March 2007

"Maruti Suzuki's first driving school in Bangalore"[11]

28. ^ "Maruti Suzuki recalls 1 lakh 'A-Star' cars; stk flat". 24 February
2010. Retrieved 24 February 2010.
[edit]External links
Wikimedia Commons has media
related to: Maruti vehicles

 Official website

 Maruti True Value

 Maruti Driving School

 Maruti Udyog Official Website

 Maruti for NRI

 Maruti Auto card


Maruti Suzuki road car timeline, Indian market,

Cars in India

Automobile industry in Japan


BSE Sensex companies of India


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