You are on page 1of 62

A project report on finance of Maruti cars at Kiran Motors Limited Submitted to : NRIBM, in partial fulfillment of MBA-course.

Submitted by: Nilofer ajmeri

Date: July 23, 2004

Todays modern world is progressing by leaps and bounds. In this fast changing world management of business is very important phase. The course of MBA gives great knowledge to the students. Summer training is also a part of the MBA course. The training enables the student to understand how they can apply their theoretical knowledge in practical world. It helps us to develop our leadership skills, communication skills, analytical skills and so presents a unified picture of what management is and how it is applied to various forms of human endeavor. I got the opportunity to work with Kiran Motors Limited, the second largest dealer of Maruti Suzuki in India. This project report gives details about maruti udhyog. It also gives detailed information about car finance. An over all view of finance industry presented in the report gives better idea about different options available to customers. Also the current scenario of automobile industry is reflected in this report. After reading the project report one will be able to know how small firms undertakes its operations.

This project report has been prepared with the help of many people without whose support and co-operation this report could not have been accomplished fully. I am deeply thankful to Mr. Ankit Desai the Branch manager of Kiran Motors Ltd Rajpath for his guidance in preparing this project. I am also thankful to Mr. Baiju Executive of Standard Chartered Bank who provided detailed information about the financial facilities available to different types of customers. Last but not the least I would like to thank all the sales executives, counter executives, receptionist, and insurance agents working at Kiran Motors Ltd. Who helped me a lot by providing me minute details about the working of KML. Ajmeri Nilofer M. Roll No.: - 03002.


Car finance
Ever since the Indian passenger car industry was de - licensed in 1993, the market has witnessed a veritable explosion of innumerable car models vying for our attention in an attempt to woo the customer. Almost every car manufacturer till date is offering various permutations and combinations of their model product portfolio, resulting in a plethora of variants, which at times can be pretty bewildering for the average car buyer. When a customer walks into any car showroom he will find various models. Any single model will have at least 5 to 8 different variants distinguished by equally cryptic sounding trim level names such as LX, VX, DX, PS, EL, FS, SP, Lxi, EX+, Di it makes the customer feel that there is something different in each model and the customer can make comparison on the basis of it. Manufacturers will tell that they are offering the customer choice. They will tell that they have a model and a trim level for each and every customers tastes to suit every budget, to cater to any level of customer taste. But the main point here is, have the dealerships and most importantly - dealer sales staff kept pace with the rapidly changing dynamics of the car market? Are they in a position to clearly make the customer understand and to differentiate to them as to which model carries what attribute??

Apart from a handful of dealers in India, the bulk of them cannot differentiate between a steering wheel and a spare wheel forget about convincing the customer enough to make him write out a cheque to buy a higher priced model or a higher trim level variation of the same model on product attributes alone. The lack of incisive and in - depth sales knowledge on the part of dealer staff is worrying to say the least. Apart from mouthing the usual banalities most of which you find on the product leaflet anyway dealer sales personnel offer precious little addition to their sales blabber to invite the customers attention enough.

Thus what happens is that the customer decides on a model which probably has been drilled into his mind because his friend or mechanic has suggested that model to him and he proceeds to write out the cheque for that car only. The bargaining then boils down to the most competitive financing package and the amount of upfront discount the dealer can give as well as any freebies along with it. Its about time car manufacturers in India understand that in a market already facing oversupply and idle production capacity the last differentiator the last bastion of innovation - is in the area of vehicle retailing. Dealers are the first point of contact the customer has with a car company and no effort must be spared to make sure that dealer personnel are some of the best human talent that the company recruits. Merely planting pretty ladies in itsy bitsy skirts and flashing Toothpaste Ad smiles are not going to win the sales sweepstakes.

What is needed is knowledgeable individuals possessing not merely selling skills but with the capability to conceptualize, strategizes, implement and finally execute a well rounded sales plan. Why the bulk of car dealer sales personnel lack these qualities are quite easy to explain. Most car dealership selling activity in India suffers from a perceptual problem. It is still viewed as infra dig by people especially by fresher and B- school grads as having not enough glamour appeal to work there. Hence there is a lack of proper personnel even wanting to work at these places. Secondly almost all car dealerships in India are closely held family owned businesses and the promoters of these businesses lacks the professional vision which they ideally should posses. Thus they offer pathetic pay packets to sales personnel translating to inadequate incentives whom are not enough to retain and or recruit new knowledgeable people. And lastly one has to realize that selling cars is a very, very specialized task. Its not similar to selling fast moving consumer goods such as soaps and toothpastes!! Car retailing requires a deep understanding of the industry, the technicalities involved in the product as well as a certain degree of affection for the automobile to make a convincing sales pitch. Product knowledge - of the car salesperson - is perhaps the most indispensable tool which he / she can possess at all times and should utilize it to its fullest potential. The car industry in India today is at a crossroad. With a market size which has still a fair way to

go before hitting the million units mark, and with quality and reliability levels of cars rapidly converging the only area left in which to innovate is in the sphere of effective retailing and the sooner the manufacturers do something about this the better.

Precautions before taking finance

Before the customer start shopping for a finance scheme the customer need to do two things: Check his bank balance and decide on how much down payment he.

Remember that it's always better to pay a higher down payment if the customer can afford it since it turns out to be cheaper in the long run. Look at the income stream and get a fix on the instalment that he will be able to pay (monthly or quarterly) without disturbing his current lifestyle and for how long. Armed with these figures the customer can start looking for a financier, either by responding to their ads, or by signing up on some of the websites that offer match making services between financiers and potential clients. Have enough time on the customers hands whilst searching for the customer finance scheme. Rushing into finalizing a scheme is a cardinal sin and the customers are likely to end up paying more. Call from quotes for as many financiers as possible. Shortlist a set of at least 3 financiers based on the initial quote and then negotiate with them on each component of the scheme. Armed with the rudimentary knowledge about car financing the customer will be able to ask the right questions and get the best deal. Remember not to fall for longer tenure lower installment schemes, because eventually the customer pay a higher interest amount and more often than not, the market value of the customers car depreciates much faster, than the rate at which the customer have been retiring the principal. Also, do not fall for the 0% interest schemes, since if the customers are not paying the interest, then someone else is and it is usually the manufacturer in the form of a

discount to the financier. Once the customers are able to get a handle on the discount amount, the customer can work out a scheme better suited to the customers requirements.

In today's world, the consumer is King. Two individuals availing a finance scheme from the same source can get different deals. So negotiations can go a long way to get the customer better deals.

Kiran motors limited

Kiran motors limited is one of the biggest Maruti dealers in India. The first branch of Kiran Motors Limited was started by Mr. Kiran. It has 9 branches in Gujarat. Kiran Motors Limited deals with the product of MARUTI SUZUKI. Different cars of Maruti are sold at km. In Ahmedabad it has got six branches, one warehouse and two service stations. The details about Kiran Motors Limited are as follows.

Ahmedabad:- Kiran Motors Limited has got six branches with one head office in ahmedabad. Its branches are : Mithakhali Branch Bapunagar Branch Nehrunagar Branch Rajpath Branch Maninagar Branch Navrangpura Branch

Baroda:- Kiran Motors Limited has got one branch at Baroda. Surat:- Kiran Motors Limited has got two branches at Surat.

0rganisation chart

Managing director

General manager

Branch manager


Counter executive

Inquiry executive

Receptionist manager

Objectives and operating principles.

A company has to know what it wants to accomplish. What are managements real goals? A first step, therefore, is to develop and set forth clearly the companys management philosophy and objectives. Objectives: - Objectives of Kiran Motors Limited are To provide customer with better services. To build and maintain long term customer relationship. To sale the product at most competitive prices. To increase co-operation between different departments. To build and maintain good relationship with the financers.

Operations at Kiran Motors Limited


Lines of authority and responsibility There are to be definite, non-overlapping lines of authorit. There must be no

crossing of the lines of authority. At Kiran Motors Limited the line of authority is very clear. The branch manager, the sales executives, the insurance people, supervisor at service station, the counter executives, etc. knows the area in which they can take some decisions related to their work. 2. one and only one person is to be responsible for the implementation of every individual decision. At Kiran Motors Limited the branch manager is responsible for the implementing the decisions at his or her branch. 1. Cooperative management A number of properly organized, actively functioning, permanent committees must

meet promptly at regular, specified intervals, with additional meetings whenever required. At Kiran Motors Limited managing director, branch manager, insurance departments head, inventory controller, supervisor of service station and executives of maruti udhyog limited meet regularly to discuss the present working of their respective departments. 2. Each division head shall hold staff meetings. At Kiran Motors Limited whatever is decided in the meeting is discussed with other executives of Kiran Motors Limited after the meeting gets over. 3. Decisions by individuals and by groups are to be made promptly. At Kiran Motors Limited the executives at junior level discuss about the decisions taken in the meeting and if they agree with the decision then prompt implementation is made. And if they dont agree, then the decisions are discussed again and changes are made, if necessary. Development Of Leadership


Every executive must have, at all times, a clear understanding and a complete

listing of the companys general and specific objectives and policies, as well as the objectives and policies which apply to his own division or department. At Kiran Motors Limited the sales executives knows about the goal of Kiran Motors Limited and their individual goals. They knows very well about their target to be archived. On an average a sales executive is given target of eight to ten cars per month depending on their capacity and the market condition. 2. Every executive must consciously avoid waste of time. Meetings, interviews, telephone calls, appointments, visits, and trips must be kept as short as possible consistent with adequate results. Sales executives at Kiran Motors Limited are given the job to complete an inquiry which is waiting to be completed. A record of customers is maintained and daily work to sales and marketing people are given. 3. Executives should maintain a cooperative spirit and avoid jealously guarding the prerogatives of their offices to satisfy personal pride. At Kiran Motors Limited the marketing people and other executives helps new employee to achieve his target. Sometimes the out side work like passing of vehicles are also done for new executive by the experienced executive. Even the absenteeism of one employee is taken care by other employees. 4. Every executive should establish and maintain a dignified friendliness with each member of his division or department. At Kiran Motors Limited the work environment is informal, the employees at Kiran Motors Limited calls their peers and superiors by their first name. Even people from two different departments behave like friends. 5. Every executive is to enforce strict discipline throughout his organization. Although the executives behave in an informal way they enforce strict discipline in their work. The executive comes on time, he starts his work immediately, he avoids absents, and also does not leave before time.


Every executive is to train and encourage his subordinates to develop initiative. At

Kiran Motors Limited the subordinates are trained by their superiors. Sometimes even branch manager gives the training to his executives. New executives who has to do field work are guided by experienced executives, they takes the new executive with them in field before they start working alone. 7. Praise is to be given wherever justified. At Kiran Motors Limited the executive who performs outstandingly are given some monetary reward for their extra efforts. Even they are given high position in the company.

Kiran Motors Limited achievement

Kiran Motors is one of the largest dealers of Maruti Suzuki. All the products of Maruti are available at Kiran Motors. The following result shows Kiran Motors performance during the last year. Kiran Motors Limiteds performance from April 2003-March 2004

All India domestic sales

Rank 1 2 3 4 5

Dealer name Popular-cochin Competent-Delhi Indus-cochin Sai-bombay Kiran-ahmedabad

No.of vehicles sold 12725 12349 10520 10398 9396

Maruti Zen


Dealer name

No.of vehicles sold

1 2 3 4 5

Swami-amritsar Competent-delhi Popular-cochine Sai-bombay Kiran-ahmedabad

2181 2152 1945 1789 1695

Maruti 800

Rank 1 2 3 4 5

Dealer name Popular-cochin Indus-cochin Vehcl-pathancot Kiran-ahmedabad Rohan-gaziabad

No.of vehicles sold 5805 4972 4502 3959 3858

The insurance of maruti vehicles is provided by national insurance all over India for both domestic sales as well as export of cars. Warrantee It is a feature that makes the custpmer more satisfied about the expenses related to meet the unexpected breakdowns. Now the dealership will be the contact point for insurance of new policies, making endorsements and renewal of old policy. Additionally, in case of an accident, the customer doesnt need to pay upfront for any repairs (except towards depreciation and compulsory excess). Hence it will be near cashless settlements for the customers. Moreover, the dealer will be responsible for initialing of carrying out all the accident related activities including arranging of the survey and repair of the vehicle. The repairs are done using Maruti Genuine Parts, adhering to strict quality standards (conditions apply). In case the vehicle is rendered immobile, the dealer will provide towing free of cost cup to Rs. 1500/-). All these services are available to the customer seamlessly across the entire MARUTI SUZUKI Dealership network. Price Price of Maruti are very competitive on the road cost in A bad is shown in the given price list. Also the Ex. Stockyard price, RTO Tax, Insurance, Octroi, Registration fees, Municipal Tax, etc. are also given in the price list. Payment

The payment of nice of cars is very easy in the Maruti. It can be done in the following ways. 1. 2. Cash Payment Payment by loan. The loan facility is provided to customers of Maruti by several

banks, these banks also grants the customer discounts on loan. Loan can be available from 60 to 95% if the customer makes payment through loan than he will have to pay the amount of down payment, which includes RTO Tax, Octroi, Registration Fees, Insurance, Margin Money, & municipal Tax etc. FINANCING OPTIONS: Maruti has partnered with the top Finance companies in India, so that its customers get 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, Standard Chartered bank and Sundaram Finance There are essentially three basic financing options available to the customer. borrower. LOAN: When the customer take a loan to buy a car, the customer is the registered owner of the car and the financier creates a lien on the same as a security. The customer repays the loan (principal) along with interest over a pre-agreed period (tenure) in the form of periodic instalments. In case of a default in payments the financier has the option of invoking the lien clause. Businessmen/self-employed persons and companies that use such a car for business purposes can treat the interest paid on the loan as a business expense and also avail of tax Loan, Hire purchase and Lease. Each of these options has individual merits to suit a particular kind of

deductions against depreciation, in any accounting year. Loan agreements attract stamp duty depending on the state in which they are executed. HIRE PURCHASE: In this method of financing, the financier purchases the vehicle on the customerr behalf. The customer hire it out from the financier with the intention of buying it from him at the end of a pre-determined period. In hire purchase, although the customer are the registered owner, the car is hypothecated to the financier (an endorsement is made in the R/C Book) thereby giving the financier the legal ownership of the car. The hypothecation is removed by a special procedure (mentioned under documentation later in this article) after the instalments are fully paid off. For businesses/self-employed persons/companies, a car taken on hire purchase appears on their Balance Sheet as an asset and they can get tax deductions against the interest paid, along with the depreciation, in any accounting year. Please be aware that a hire purchase transaction attracts additional sales tax, turnover tax, value-added tax, stamp duty, etc. depending on the state in which the agreement is being signed. LEASE: In a lease, the financier leases out a car to the customer for a certain time-period, after which the financier can either take back the car or sell the car to a third party. In effect, the customer will not be the owner of the car either during the tenure of the lease or even after the lease has been terminated. This is the technical definition of a lease and the customer may come across several variants depending on the financier the customer are dealing with. Lease is an attractive option for companies who are acquiring cars in the name of the company

to be given out to their employees, with the employees having an option of buying the car on a later date at a nominal value. This helps the company is two ways. One the cars do not appear as assets on the Balance Sheet of the company (cars are usually treated as unproductive assets and best kept off the Balance Sheet), and two, the company can treat the entire lease rentals paid (principal + interest) as a business expense and avail of substantial tax deductions. However, under a lease, the financier, not the customer, claims MARUTI SUZUKI the depreciation on the car. Like hire purchase, a lease transaction attracts additional sales tax, turnover tax, value-added tax, stamp duty, etc. depending on the state in which the agreement is being signed.

Documents required for the loan funding are as follows: Different documents are required for different type of customers. Ther customer can be of the following type. For salaried: -

A. Vanilla Scheme. General Documents IT returns of last 2 years or Form 16 of last 2 years Bank statement of savings of last 6 months. Maximum Loan: For 1,2 & 3 yrs = Gross Salary x 1.5

4 yrs. 5 yrs.

= Gross Salary x 2 = Gross Salary x 2.5

B. -

High Equity General Documents IT returns if < 60,000 or proof of job which should show that the person

is employed from more than last 2 years i.e. appointment letter, or Electricity bill, or Form 16 of last 2 years Bank statement Maximum Loan: -

Loan is available for maximum 4 years and maximum of 70% of the amount can be given to candidate. C. upto 90 % for 5 years. For a Proprietor or Proprietory firm A. Vanilla Scheme. Privilege. General Documents Credit card of Standard Chartered Bank or track record of Maximum loan :-

another bank which shows the transaction with bank with respect to previous loan.

General Documents IT returns of > 60, 000 last 2 yrs. Bank st. of current account of last 6 months. Loan available

Maximum Loan = gross Income x 5 B. High Equity General Documents IT returns if < 60,000 of 2 yrs. Or continuity proof which shows the business is running

from last 2 years i.e. Electricity bill, or telephone bill Registration certificate if Income Tax certificate is not available Bank statement of current account of last 6 months.

- Loan amount Maxi. 70 % of total amount for maximum of 3 years.

B. -

Previledge General Documents

Credit card of Standard Chartered Bank or track record of another bank

Partnership: - If partner purchases with his own checks A.Vanilla Scheme. General Documents IT returns of > 60, 000 last 2 yrs. Bank statement of the firm of last 6 months. Partnership deed.

B.High Equity General Documents IT returns or continuity proof showing 2 years continuity of partner. Bank statement of the firm of last 6 months. Partnership deed.

C.Previledge General Documents Credit card of Standard Chartered Bank or track record of another bank Partnership deed

If Partner purchases with firms checks. A. Vanilla General Documents IT returns of partner of last 2 years. > 60,000. Bank Statement of savings A/c Partner ship deed Authority Letter IT returns of firm & parters capital A/c & Trading A/c, & P&L A/c, & B/S or Audited Balance Sheet J & S Paper

B. High Equity General Documents Income Tax Returns of last 2 yrs. (proving continuity) Partnership Deed Authority Letter IT return of the firm, Partners capital A/c, Trading A/c P&L A/c, Balance Sheet, or Audited Balance sheet Joint & several paper

C. Previledge General Documents Credit card of SCB or track record of old (purchase of vehicle, home etc. on loan) Partnership deed

Partner ship firm

A. VScheme General Documents IT returns of firm of last 2 yrs. Bank st. of current A/c of firm of last 6 months

Partnership deed Authority Letter Financial documents (Here, J & S Paper will not come)

B. High Equity C.Previledge General Documents (with documents of signing partner) Credit card of SCB or Track record if any General documents IT returns of firm of last 2 years or CP proof Bank st. of last 6 months of firm Continuity proof (i.e. firm should prove that it is in existence since last 2 yrs. If it doesnt have IT returns) Partnership deed Financial documents of firm (such as P&L A/c, Partners capital a/c, B/s, or Audited B/s with 3cb-3cd form if to 40 lacs. Authority Letter

Directors: - with individual checks

A. Vanilla Scheme General Documents IT returns > 60,000 or F-16 form Bank statement of last 6 moths of directors account Memorandum of Association

B. High- Equity General Documents IT returns if not then continuity proof, which can be MOA; Form 16, or salary sleep of last 2 years i.e. which shows that the person is employed since last 2 years) Bank statement of last 6 months MOA

C. Previledge General Documents Credit card of SCB or old Track record MOA

With companys checks

A. Vanilla General Documents IT returns or F-16 > 60,000 Bank statement of last 6 months Directors report Joint & Several papers

B. High Equity - General Documents - IT returns or F- 16 form < 60,000 - Bank statement of savings a/c of last 6 months - MOA - Board resolution - Audited B/s of last 2 year (with 3CB-3CD form if turn over > 40 lacs) - Directors report - Joint & Several Paper C. Previledge General Documents Credit card of SCB or Track record if any MOA Boards resolution J&S paper Directors report

Pvt. Ltd. Or Ltd.: - With its name (only one possibility)

A. Vanilla Scheme - General Documents [ documents of one Director sign] - Financial documents of the company - Board resolution - Director must take responsibility [ J&S paper will come here] B. High Equity General Document [documents of one Director sign] IT returns <60,000 or continuity proof of last 2 yrs. Financial documents of company J&S paper MOA Board resolution

C. Previlege General Documents [documents of one Director sign] J&S Paper MOA Board resolution Credit card of SCB or Track record if any.


1. 2. 3. 4. 5.

Cool Hunt Walk-in-Inquiries Telephone- Inquiries Field- Inquiries Inquires though reference ( i.e. becoz of word of month )

Cool Hunt:In this program a marketing executive of kml visits the offices and residents of prospective customers. The customer may or may not intended to buy the car but a simple approach my result in sales. Cool hunt sometimes affects the brand image of the company. If not handeled properly this program may build negative impact on prospective customers. Kml avoids the cool hunt program. It concentrates on the other four ways to find its customers. References: This way of marketing the product really good, especially in case when the existing customers are satisfied the marketing becomes easy. Word- of- mouth plays a major role in this case. The sales executive has to convince the prospects in only a few areas. Most of convinced before they enter in the show room. Good customer relation plays major role in this Advertising.

Walk-in inquiries:Many of the customers come directly to the showroom to purchase the car. The customer may be attracted by the newspaper advertisement, or he may have decided earlier to purchase the maruti car from a particular showroom. Walk-in inquiries are generally handled by counter executives. Some times sales executives also addreses to these inquiries. To deal with these customers the executive should possess substantial knowledge of the product, its competitors, discounts associated with a particular product etc. Telephone inquiries:Generally handled by the receptionist, telephone inquiries do not have a good success rate. Although the customer makes a telephone inquiry he has to come to dealer if he wants demonstration of a particular car. Field- Inquiries:The field inquiries are generally made for those customers who show their interest in buying the product in nearer future. Field inquiry facilitates the customer in the sense that the executive meets the customer at his home or in his office, this saves the customers time and energy.


Maruti Udyog Limited (MARUTI UDHYOG LIMITED) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only to their undisputed leadership in small cars but also to their commitment to actively bring to MARUTI UDHYOG LIMITED contemporary technology and Japanese management practices (which had catapulted Japan over USA to the status of the top auto manufacturing country in the world).A licence and a Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

COMPANY PROFILE Vision The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth;

MARUTI SUZUKI is the number-1 car company in India. MARUTI SUZUKI is a name India has loved and trusted for 20 years. There are around 40 lacs satisfied MARUTI SUZUKI owners on the road today. MARUTI SUZUKI sells more cars than all the other put together. New MARUTI SUZUKI cars are built with technology other cars just cant match. MARUTI SUZUKI customers enjoy benefits few other cars companies can offer. MARUTI SUZUKI owners are more satisfied with their cars than anyone else. 16 x 4 Hypertech is installed in Marutis vehicles. MARUTI SUZUKI vehicles have advanced new MPFI technology that works with the unique 16x4 hypertech engine to give the customer unmatched performance. Most MARUTI SUZUKI vehicles have a powerful 16 bit computer and 4 valves per cylinder. 16 x 4 hypertech gives the customer much more power & performance. Almost no other car in India has this technology. They mostly have 8 bit computers and 2 3 valves per cylinder. Better fuel economy. Lower emission levels easily meet Euro II nor MARUTI SUZUKI. It also makes the engine run very smoothly. It makes the car more enjoyable to drive.

The objectives of MARUTI UDHYOG LIMITED then are: for economic growth. The Core values at Maruti Suzuki Customer Obsession Fast, Flexible and First Mover Innovation and Creativity Networking and Partnership Openness and Learning Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce resources. Production of large number of motor vehicles which was necessary

Registered and Corporate office 11th Floor, Jeevan Prakash, 25, Kasturba Gandhi Marg, New Delhi - 110001, India MARUTI UDHYOG LIMITED FACTORY Palam Gurgaon Road,

Gurgaon -122015, Haryana, India

Regional offices East For the States: Eastern Madhya Pradesh, Orissa, West Bengal, Bihar, Andaman &
Nicobar L & T chambers 4th floor, 16,camac street Kolkata-700 016

North East For the States: All North East States

403, Orian Towers, Christian Basti, G.S. Road, Guwahati (Assam)

North 1 For the States: Delhi, Rajasthan, Uttar Pradesh (NCR) and parts of Western UP,
parts of Haryana 6th Floor, Hansalaya Building, 15 Barakhamba Road,

New Delhi - 110001

North 2 For the States: Haryana, Chandigarh, H.P., J&K, Punjab, Chandigarh
Sector 8-C, SCO 39-40 Madhya Marg Chandigarh - 160018

Central For the States: Central and Eastern Uttar Pradesh, North and West Madhya Pradesh
Ground Floor, Block B-1, Pickup Building, Vibhuti Khand, Gomtinagar Lucknow - 226 010.

South 1 For the States: Tamil Nadu, Kerala and Pondicherry

7th Floor, Capital Towers, 180, Kodambakkam High Road, Nungambakam,Chennai - 600034

South 2 For the States: Andhra Pradesh, Karnataka

204, 2nd Floor, "Embassy Classic"

Vittal Mallya Road Bangalore - 560 001

Area Office: Andhra Pradesh

603/2 , 6th Floor White House (Block -1) 6-3-1192/1/1, Kundan Bagh Begumpet, Hyderabad - 500 016

West-1 For the States: Maharashtra, Goa, Daman & Diu

602, Madhava Building, Bandra-Kurla Complex, Bandra(E), Mumbai - 400051

West 2 For the State: Gujarat

505, Satkar Complex, Behind Swagat Building, Off C G Road, Navrangpura, Ahmedabad - 380 009.

Product profile: As we know KIRAN MOTORS LIMITED deals with cars of Maruti Suzuki, most of the models of Maruti cars are available for sale at KIRAN MOTORS LIMITED. Also accessories and insurance for Maruti cars are sold at KIRAN MOTORS LIMITED. The following are main car models available with KIRAN MOTORS LIMITED. Maruti-800 Omni Versa Baleno Esteem Alto Zypsy Zen Wagon-r Baleno-altura

The following are main dates when Maruti launched its new models and also launch of various variants of Maruti Suzuki are shown below. 2004 Apr: 2004 Mar: New (non A/C) variant of Alto LPG variant of 'Omni Cargo'

2004 Mar: 2004 Jan: 2003 Dec: 2003 Nov: 2003 Oct: 2002 July: 2002 July: 2002 May:

Versa 5-seater, a new variant Baleno LXi, a new variant New Suzuki Grand Vitara XL-7 Redesigned and all-new Zen New upgraded WagonR WagonR Pride Esteem Diesel. All other variants upgraded Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor

Services and Maruti Insurance Brokers Limited 2002 May: 2002 Mar: 2002 Jan: 2002 Jan: 2001 Dec: 2001 Oct: 2001 Oct: Alto Spin LXi, with electronic power steering Special edition of Maruti 800, Indias first colour-coordinated car Maruti True value in Mumbai Maruti Finance in Mumbai with 10 finance companies Zen LXi Maruti True Value launched in Bangalore and Delhi Maruti Versa, Indias first luxury MPV

2001 Aug: 2001 Aug: 2001 Aug: 2000 Oct: 2000 Sept: 2000 Aug: 2000 Mar:

Alto Vxi Zen Easy Drive Customer information centers launched in Hyderabad, Bangalore and Chennai First cars company in India to launch a Call Center New Alto Altura, a luxury estate car IDTR (Institute of Driving Training and Research) launched jointly with the Delhi

government to promote safe driving habits 1999 Jan: 1999 Jan: 1999 Oct: 1999 Oct: 1999 Nov: 1999 Dec: 1998 Dec: 1998 Aug: Maruti 800 EX (796cc, hatchback car) Zen LX (993cc, hatchback car) Zen VXi (993cc, hatchback car with power steering) Omni XL (796cc, MUV, high roof) Baleno (1600cc, 3 Box Car) Wagon R Maruti launches website as part of CRM initiatives Zen D (1527 cc diesel, hatchback car)

1998 July: 1998 Feb: 1997 Oct: 1997 Sept: 1996 Dec: 1996 Dec: 1996 Nov: 1996 Oct: 1996 June: 1995 Nov: 1994 Nov: 1993 Oct:

Zen VX & Zen VX Automatic New (Omni & Omni E) (796cc, MUV) 1998 Esteem (1299cc, 3 box car) LX, VX and AX New Maruti 800 (796cc, hatchback Car) Standard and Deluxe Gypsy (E) (970cc, 4WD 8 seater) Omni (E) (796cc, MUV, 8 seater) Gypsy King (1298cc, 4WD, off road vehicle) Zen Automatic (993cc, hatchback car) Esteem 1.3L (1298 cc, 3 box Car) AX Esteem 1.3L (1298 cc, 3 box car) VX Esteem1.3L (1298cc, 3 box car) LX Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere as the Alto

1990 Oct: 1986 June: 1985 Dec:

Maruti 1000(970cc, 3 box), Indias first contemporary sedan Maruti 800 (New Model-796cc, hatchback Car) Gypsy (970cc, 4WD off-road vehicle)

1984 Nov: 1983 Dec:

Omni, a 796cc MUV Maruti 800, a 796 cc hatchback, Indias first affordable car.

Chronology of events as on 2004

2004: Launch of LPG variant of its commercial vehicle 'Omni Cargo'

Launch of Versa 5-seater, a new variant of its Maruti Udhyog Limited multi purpose vehicle Launch of Baleno LXi, a new variant of its premium mid-size sedan Launch of new (non A/C) variant of Alto Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago 2003: Enters into partnership with State Bank of India Launch of Grand Vitara XL-7 (produced by Suzuki) Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times 2002: Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent Launch of Maruti Insurance


Launch of new businesses: Maruti True Value (buying, selling or exchange of

pre-owned cars), Maruti Finance (car financing) and N2N (Corporate Lease & Fleet Management) 2001: Launch of versa

2000: Launch of Alto and Altura 1999: Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives Launch of Maruti Baleno and Wagonr Plant 3 inaugurated; installed capacity increased to 350,000 units 1998: Launch of website as part of CRM initiatives 1997: Produced the 2 millionth vehicle since the commencement of production 1996: Launch of 24-hour emergency on-road vehicle service 1995: With the launch of second plant, installed capacity reached 200,000 units 1994: Produced the 1 millionth vehicle since the commencement of production 1993: Launch of Maruti Zen 1992: SMC increases its stake in Maruti to 50 percent

1991: Reaches cuMaruti Udhyog Limitedative indigenisation of 65 percent for all vehicles produced 1990: Launch of three-box car, the Maruti 1000 1988: Installed capacity increased to 100,000 units 1987: Exported first lot of 500 cars to Hungary 1986: Produced 100,000 vehicles (cuMaruti Udhyog Limitedative production) 1985: Launch of Maruti Gypsy 1984: Installed capacity reached 40,000 units Launch of Maruti Omni 1983: Production was started under JVA Launch of 796 cc hatchback Maruti 800 1982: License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan 1981: Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act, 1956

BENEFITS: Maruti always offers its customer the quality product. Starting form greeting the customer to making presentation, demonstration, making actual sales, receipt of payment and providing loan facility are done very well by the sales executives of Maruti dealers.

Unbeatable service advantage.

Only MARUTI SUZUKI has a nation wide network of over 1900 service station Army of 30,000 professionally trained service personnel. Modern, advanced repairing equipment and tools.

in more than 900 towns. From Kashmir to Kanyakumari!

Express Highway Services

Express Highway Services introduced with services stations at convenient points

on important national Highways.

Maruti On Road Service

Maruti on road service. Just dial 9622962200 for a 24 hour on road breakdown

service in many cities. No other car company can match this. Maruti is giving the service in such a way so that the customer can avail it anywhere in India.

Genuine Parts

MARUTI SUZUKI spares are easily available across the length and breath of the

country. Also the spare parts are available at cheaper rate compared to its competitors. Maruti Suzuki Extended Warranty MARUTI SUZUKI now offers optical extended warranty up to the 3rd year of All new vehicles sold on or after 14th may 2001 and covered under the primary

60,000 kMARUTI SUZUKI, which ever is earlier, with effect from April, 2002. warranty of 2 years or 40,000 kms (which ever is earlier) are eligible of this. It gives total peace of mind for 4 years, flexibility to approach any MARUTI SUZUKI dealers across the country for availing this warranty and of course, the MARUTI SUZUKI assurance. All this is available at an extremely customer friendly price.

Maruti finance: - A better way to buy a car.

Thanks to Maruti Finance, customers can now get the best interest rates for car loans at their MARUTI SUZUKI Dealership itself. In fact, the dealer will compare all the necessary paper work and other formalities. More importantly, the percentage of ex showroom price that the customer can get as loan (LTV) is higher than what is others. Besides this, the customer is also offered value Added Services (VAS) like Extended Warranty for 3rd and 4th year at a discounted price. And thats not all. Under certain conditions, the customer can also get loans for car insurance and Maruti Genuine Accessories. The Maruti Finance offer to its customers is different from other offerings in the market in 4 key ways: Best Interest Rates: The Maruti Finance program offers most competitive interest Value Added Services: Extended warranty for the 3rd & 4th years can be Higher Loan Amounts : Under Maruti Finance, the customer could get higher Convenience & Transparent Deals: Maruti Finance has defined high service

rates to its customers, which are lower by 0.25% to 0.5% from the market rates. bundled along with the Maruti Finance loan. Loan To Value (LTVs), loan top ups for Insurance & Maruti Genuine Accessories. standards for its customers, and hence promises to offer the best in the market service. The customer gets the convenience of getting all his / her car needs Car, Finance, Accessories, all under the same roof. Also, Maruti Finance ensures transparent & genuine deals to its customers through its wide dealership network.

The interest rate offered for car financing depends on the credit evaluation of the customer by the Finance company. However, the rates offered by Maruti Finance are 0.25% to 0.5% lower than those available in the market across all credit profiles. The rates being offered by the Finance company under Maruti Finance are special rates that have been negotiated by Maruti with the Finance companies for its customers. Hence, these rates are lower than those being offered in the market. The customer does not have to bear any indirect costs to reconcile for these lower rates. The amount of loan available depends on the car that is being purchased, as the Finance companies define a maximum Loan-to-Value ratio for the customers. The value here is the price of the car that the customer proposes to purchase. The Loan-to-Value ratio offered to the customer depends on the credit evaluation of the customer by the Finance company. The LTV to a customer can go upto 100%.

Loans for Insurance and Accessories.

Loans for insurance and accessories are built into the EMI's, keeping the whole deal simple and hassle free.So if the customer haven't already made up the customerr mind, just walk into an authorised Maruti dealership for the best cars and best finance options. The Maruti Finance program aims to offer the best in class service to its customers. With this objective, the following service standards have been set for the performance of the business: * Incomplete Application Turn Around Time (TAT) In case there is further documentation required for the application to be processed, the Finance company will inform the dealer within

2 working hours of receipt of application file, and the customer can subsequently be informed of the same by the dealer * Approval TAT after receipt of satisfactory documentation On receipt of the completed application with satisfactory documentation, the Finance company will take a decision on approving the loan within a duration of 4 hours & not exceeding 24 hours from receipt of application * Complaint addressal The Finance Company will address any customer complaint received within 24 hours from receipt of complaint. In addition, Maruti will monitor the service being offered to its customers to ensure that the defined service standards are maintained.

Maruti Finance
Maruti has partnered with the leading Finance companies in India to provide highly attractive Finance deals to its customers through its dealers. Maruti Finance is the program under which these deals are being offered exclusively to customers of Maruti vehicles. To bring the customer competitive financing, Maruti has launched Maruti Finance. Now the customer can avail of Maruti Finance services across Guwahati, Maharashtra, Goa, Andhra Pradesh, Karnataka, Tamil Nadu and Kerala.Maruti has tied up with eight finance companies to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI, HDFC Bank, Standard Chartered, ABN AMRO, Kotak Mahindra and Sundaram Finance.Best Interest Rates Maruti Finance offers the best rates of interest. The instalment schemes are designed to suit the customerr convenience, at a rate that fits the customerr pocket.

Maruti Countrywide Finance

Maruti Countrywide was set-up when GE Capital, HDFC and Maruti Udyog Limited formed a captive finance company in 1995.A professionally managed company we share the ideals and work culture of the parent companies. Our prime objective is to cater to the needs of Maruti car buyers by offering innovative finance schemes for the purchase of Maruti cars

SBI Maruti Car Loans

The country's largest bank and the largest car maker have joined hands to make affordable car finance available to more and more people across the country. The mega alliance makes car loans available at lower interest rates to a wider section of people, with transparent terms and conditions. It is supported by the unmatched combined network of SBI branches and Maruti outlets. The Unbeatable Advantages of SBI-Maruti Car Loans Two market leaders in their respective industries with trusted brand names. Lowest interest rates of 9.50%* No processing fees or hidden costs to ensure transparency No extra charge for repaying loans ahead of schedule Standardised loans that offer fixed interest rates across models and locations. Car loans available for diverse categories of customers including government More loan amount available as it is extended on the basis of the car's on-road price, not

employees and agriculturists ex showroom price.

Longer loan repayment period -- upto seven years Interest rates at the time of purchase of the car will be applicable. Interest rates are

subject to change and are at the sole discretion of SBI. Interest rate of 9.50% applicable on repayment periods up to 36 months. An interest rate of 10.00% is applicable for a repayment periods of 7 years. Credit is at the sole discretion of SBI.

Citicorp Maruti Finance Ltd

Citicorp Maruti Finance Limited was formed when Maruti joined hands with Citibank in May 1998.Located in 23 cities we are the first company that provides services to finance the purchase of secondhand cars nationally.We also offer a wide range of flexible and customised financing options at affordable rates to individuals buying a Maruti car.

Benefits to registered customer.

All owners of MARUTI SUZUKI vehicles who register at enjoy all these benefits for free: An exclusive My Maruti page for their cars details. Reminders for service, insurance and PUC certification, and other reminders Car pool Service station locator, including unique maps for cities states and major highways. Interactive maintenance planner. On-line service booking Tips for car care, driving, insurance, avoiding and dealing with accidents, etc. Expert advice Order Maruti Genuine Accessories on-line Download owners manual Special offers like discounts on travel, tyres, etc. Route guides for driving to holiday destinations Priory information on events in their city like free service camps, contests etc. Wallpapers, & screen savers.

(anniversary etc.)

Quality Systems
Maruti Suzuki provides consumer satisfaction through continuous improvement of the products and services by following PDCA (PLAN-DO-CHECK-ACT) in all functions of the organisation. ISO 9001:2000 At Maruti, the approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians the MARUTI SUZUKIelves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global 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. In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MARUTI UDHYOG LIMITED passed the Conformity Of Production (COP) Audit, which is based on a European Union Directive. This authenticated our quality systeMARUTI SUZUKI and testing facilities for export to Europe.Our emphasis on total quality

has meant that today we are in a position to guide vendors and dealers in establishing and consolidating their individual quality systeMARUTI SUZUKI. This commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.

Employee quality measures

Kaizen is based on the concept of making incremental improvements in our products. It incorporates a series of continuous small and simple improvements, which aim at involving employees at all levels. The Suggestion Scheme is based on the same principle. Under this scheme, employees are encouraged to make suggestions for improvement in any area of our operation. Over 50,000 suggestions are received from employees every year. Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is the 6th consecutive award won in as many years. This contest is organized by Indian National Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award 10 times. "Quality Circles" are groups of five to eight members from a particular work area who work as a team to identify priorities and solve work related problem in the area. The company believes that it is the unwavering commitment to quality that will lead to the further growth of the organization as competition increases.

TS 16949:2002
A new feather was added recently in Marutis cap in the field of quality when the Quality Management System of its Press Shop & associated functions (collectively termed as Press

Function) got certification for conformance to the requirements of TS16949:2002 standard.The need for TS certification of Press Function had its genesis in the prestigious project that Maruti earned for the supply of stamped panels to General Motors India for one of its forthcoming models.As a part of Quality system requirements, GM requires all its suppliers to be certified to either ISO TS 16949 or QS 9000.These standards address Quality System requirements, which are particularly specific to the automotive industry and requires an organization to be in compliance with ISO 9000 systems as a basic requirement. However, whereas QS 9000 would become defunct and cease to exist after Dec 2006, TS 16949 is going to be the standard of the future. The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO 9001:2000 standard that prescribes Quality management system requirements that are specifically applicable to the automotive industry.TS 16949 has gained high popularity and almost all major automobile players across the globe including GM, Ford, Daimler Chrysler, Nissan, Honda are embracing & promoting it.

Transfer of Technology
Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from the partner Suzuki is a smooth process. Great stress is laid on training and motivating the people who man 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 technicians, 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 the companys workforce have been trained under this programme experts. If a customer books a service with his dealer he can download the owner manuals. That's not all. The customer can create his own cyber parking for his Maruti at 'My Maruti'.

At The Time Of Buying

At the time of buying, the customer requires much more than just the car. The customer needs choice. From the company with India's largest range of cars, the customer now get a variety of other options too, starting from how much warranty support the customer need, to high-quality accessories to customized the customers car just the way the customer like. We also recognized that the customer may need finance not only for the car, but for these value ads. The customer also deserves the best option for exchanging the customerr old car at its true value. And, while the customer certainly need insurance, wouldn't it be nice to get a product which settles with the dealer directl

Maruti created history by going into production in a record 13 months. On 14 December 1983, the then Prime Minister of India, Mrs Indira Gandhi, released the first vehicle for sale by handing over the keys of a Maruti 800 to Mr. Harpal Singh of Delhi. We exceeded the volume targets, and in March 1994, we became the first Indian company to produce over one million vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 4 million vehicles by April 2003.

Maruti revolutionized the way Indians looked at cars. "No other car company so completely dominates its home market" - (The Economist). MARUTI UDHYOG LIMITED is the first and only car company in the world to lead its home market in the MARUTI SUZUKI of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies). It is also the only car company in the world to be Top ranked four times in a row (2000, 2001, 2002 & 2003).

2003 Dec: Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive brands in "Most Trusted Brand survey 2003" 2003 Nov: J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem 2003 Nov: Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003. 2003 Oct: MARUTI UDHYOG LIMITED tops in J D Power CSI (2001) for 4th time in a row 2001 Oct: MARUTI UDHYOG LIMITED 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 1999: MSM launched as model workshop in India; achieves highest CSI rating. 1999 July: Central Board of Excise & Customs awards Maruti with "Samman Patra", for contribution to exchequer and being an ideal tax assessee 1998: CII's Business Excellence Award 1996 Dec: Maruti wins INSSAN award for "Excellence in Suggestion Scheme" 1996 April: awarded the Star Trading House status by Ministry of Commerce 1994-95: Engineering Exports Promotion Council's award for export performance 1994: Best Canteen award among Haryana Industries as part of employee welfare 1992-93: Engineering Exports Promotion Council's award for export performance 1991-92: Engineering Exports Promotion Council's award for export performance

Thus we can conclude that Kiran Motors Ltd is dealing with automobiles successfully. All the departments Kiran Motors work hard to achieve the organizational goals. KML possess all important feature required for small organization. To satisfy a customer is not an easy task. It requires competent work- force. Also efficient pre-sales and postsales services should be given to the customers. The project also gives brief idea about car-finance. Different documents required for loan are also stated in the project. In short the project can become a guide for those who are interested in knowing about car finance.