Introduction
Maruti Suzuki India Limited is the largest passenger carmaker in India, and it is a subsidiary
of Suzuki Motor Corporation in Japan. The company is known for spearheading the
automobile renaissance of India. This company has developed a diversified portfolio over the
years with passenger cars being the core business. The company currently sells as many as 16
automobile models in more than 150 variants, starting with the iconic Maruti 800. From
entry-level small cars like Alto 800 and Alto K10, to the luxury sedan, Ciaz, it offers a wide
range of products. Apart from selling automobiles, Maruti Suzuki also allows the sale of used
cars, manages a fleet, and offers auto financing.
Earlier known as Maruti Udyog Limited, the company was Set up in February 1981 as a joint
venture between the Government of India and Suzuki Motor Corporation of Japan. Suzuki
Motor Corporation has a 56.2% stake in Maruti Suzuki. The shares of the company are on the
National Stock Exchange (NSE) and on the Bombay Stock Exchange (BSE). Maruti Suzuki
has some of its manufacturing facilities located in Gurgaon and Manesar, Haryana, besides
the prime of line research and development centre at Rohtak.
History :
Maruti Suzuki: The Story of Success of India's Automobile Industry
Maruti Suzuki has a history crossing over three decades and is one of the country's
prestigious automobile makers. The joint venture was formed between the Japanese firm,
Suzuki Motor Corporation, and the Indian government way back in 1981. In the year 1983,
the highly prominent first car from the company, Maruti 800, hit the Indian roads and
emerged as a huge success overnight in India. The Alto, WagonR, Swift, and Baleno are some
of the several popular models that the company has rolled out down the years. With
thousands of jobs created and growing the car industry, Maruti Suzuki has also influenced the
Indian economy considerably. Today it is a brand that stands for cost, dependability, and
quality.
Formation and Formation Period
Founded as a joint venture between Suzuki Motor Corporation of Japan and the Indian
government, Maruti Suzuki India Limited became operational on 24 January 1981. The first
production model to roll out of the line was the Maruti 800 when the company began car
manufacturing in India in 1984. The first Maruti production plants, which had a yearly
capacity to manufacture 100,000 cars, were at Gurgaon, Haryana. The Maruti 800 became an
overnight hit, revolutionizing the Indian auto market and providing more cars to masses.
Success and Growth
Maruti Suzuki had achieved an astonishing 50% share of passenger car sales in India by the
year 2002, leaving behind the remaining other car manufacturers. Powerful brand equity,
comprehensive reach through distribution, and the underlying philosophy of building reliable,
relatively affordable automobiles accounted for this success.
It launched the Swift, small car for young customers. In 2007, swift is launched as very
sportive with fuel-efficient and high safety features automobile. Electronic stability control
was also one of the more safety features where it made debut on Indian automobiles first.
Top Achievements
Maruti Suzuki had sold its 15 millionth vehicle in India back in 2015. Since then, it has
emerged as a significant milestone. This outcome consolidated the companies' lead position
in the Indian automotive sector by virtue of having models spread across a wide range of
market segments. Second, commitment to innovation is ensured because the company has
always been ready with change in features and technology used in cars.
The Changing of Times
In 2020, Maruti Suzuki took an extreme decision because it said that the production of diesel
engine cars would come to an end owing to India's stiffened emission rules. The corporation
was one of the industry's giants for its position in the diesel automobile industry, but the
progress of the new standards did not aptly match the diesel engine.
Company profile
Highlights of the Maruti Suzuki Company Startup
Name-Maruti Suzuki India Limited
Headquarters- New Delhi, India
Industry- Automotive
Founded- 24 February, 1981
Founder- Government of India
CEO- Kenichi Ayukawa
Parent- Suzuki Motor Corporation
Area Served- India
Maruti Suzuki: What is it about and how does it work?
Maruti Suzuki India Ltd. is a holding company. The company manufactures, purchases, and
sells automobiles, as well as their components and spare parts. Other businesses of the
Company include facilitating pre-owned car sales, fleet management, and car financing.
It has two geographical segments: domestic (sales to clients in India) and abroad (sales to
customers outside of India). The company's product line includes the Alto 800, Alto K10,
Waggon R, Celerio, Ritz, Swift, DZire, Ertiga, Omni, Eeco, Gipsy, Ciaz, and others.
Its services include Maruti Finance, True Value, Maruti Genuine Parts and Accessories,
Maruti Suzuki Auto Card, and Maruti Driving School. It has about five plants. Located in
Palam Gurgaon Road, Gurgaon, Haryana and Manesar Industrial Town, Gurgaon, Haryana,
with an installed capacity of over 1.5 million vehicles annually.
Maruti Suzuki Logo and Its Meaning
The current Suzuki logo is designed in red and blue. The colour red (the letter S of Suzuki)
denotes passion, integrity, and tradition, whereas blue (the letter M of Maruti) stands for
excellence and grandeur.
Maruti Suzuki: Recent News
Maruti Suzuki sees' much better' 2021 as the economy recovers: Chairman
Maruti Suzuki sales increased by 1.7% to 1,53,223 vehicles in November.
Maruti Suzuki: Founder and History
The Indian government formed Maruti Udyog Limited on February 24, 1981, only to
combine with the Japanese vehicle business Suzuki in October 1982. Maruti's first production
factory was founded in Gurugram, Haryana, the same year.
The firm was established as a government entity, with Suzuki as a junior partner, to produce a
people's automobile for middle-class India. Over time, the company's product line expanded,
ownership changed hands, and the customer developed.
On October 2, 1982, the company inked a licensing and joint venture deal with Suzuki Motor
Corporation Japan. In 1983, the business began manufacture and debuted the Maruti 800. In
1984, they introduced Maruti.
Omni, and the following year, they introduced the Maruti Gipsy into the market. In 1987, the
company entered the overseas market by shipping the first lot of 500 automobiles to Hungary.
The business introduced India's first three-box car, the Sedan, in 1990. In 1992, Suzuki Motor
Corporation Japan increased its share in the company to 50%. They unveiled the Maruti Zen
in 1993, followed by the Maruti Esteem the following year.In 1995, the company started their
second factory. In 1997, they established Maruti Service Master as a model workshop in India
to handle sales services.
In 1999, the third facility was established with new press paint and assembly shops got
operating. In 2000, the company introduced the Maruti Alto to the market. In 2002, Suzuki
Motor Corporation raised its share in the company to 54.2%.
Maruti Suzuki Mission
Maruti Suzuki's mission statement states, "To be the leader in the Indian automobile industry,
creating customer delight and shareholder wealth; a pride for India."
Maruti Suzuki: Joint Ventures
The relationship between the Government of India, as part of the United Front (India)
coalition, and Suzuki Motor Corporation over the joint venture sparked significant debate in
the Indian media until Suzuki Motor Corporation won control. This very profitable joint
venture, which had a near-monopolistic commerce in the Indian vehicle industry, and the
character of the partnership that had developed up to that point, were the root causes of most
problems.
Suzuki increased its share from 26% to 40% in 1987, 50% in 1992, and 56.21% in 2013. In
1982, both venture partners signed an agreement to nominate their candidate for the position
of Managing Director Each Managing Director will have a five-year tenure.
Maruti Suzuki's Business Model
Maruti Suzuki's model line ranges from entry-level small automobiles like the Alto 800 and
Alto K10 to the luxury sedan Ciaz. Other activities include facilitating pre-owned vehicle
sales, fleet management, and car financing. Its business segments are as follows: operating
income from car sales and interest on investments. Maruti Suzuki offers 17 models of
automobiles.
The company offers a diverse range of items to meet the needs of many segments, including
middle and upper classes.
Maruti Suzuki: Revenue and Growth
Maruti Suzuki’s growth highlights are:
It is present in 34 cities as of March 2024. According to LinkedIn, the company has 16,500
employees in March 2024.
It has served over 27 million delighted clients in India as of March 2024.
It gets news interests in AI firm Amlgo Labs, according to a news article, starting March 23,
2024. In FY2022-23, the corporation produced approximately 2 million automobiles per year.
Financials
Maruti Suzuki recorded a 2.05 percent year-on-year increase in consolidated profit to Rs
1,419.6 crore in the September quarter of FY21 (Q2FY21), while revenue increased by
10.34% to Rs 18,755.6 crore. The company generated Rs 16,997.9 crore in revenue and Rs
1,391 crore in profit during the same period previous year.
Maruti Suzuki: Recent Acquisition
Maruti Suzuki India announced on May 13, 2020, that its board made several decisions,
including the acquisition of Delhi-based JJ Impex and the delivery of Vitara Brezza to Toyota
Kirloskar Motor (TKM). The automaker's board has approved the acquisition of 39.13% of
the equity investment held by Sumitomo Corporation, Japan, and 10% by Sumitomo
Corporation India in JJ Impex (Delhi), an automobile service and repair company.
The acquisition cost, or the amount at which the shares would be acquired, is set at Rs 21.73
crore, according to the business.
Following the acquisition, the company will become a completely owned subsidiary of
MSIL. MSIL has the power to nominate and appoint all directors on the board of the
company. Maruti Suzuki India (MSIL) has announced that the nomination directors of
Sumitomo Group will resign from the company's board. The transaction requires no
government permissions, according to the statement.
Maruti Suzuki: Competitors
Maruti Suzuki's top 10 competitors are Tata Motors, Honda, Hyundai, Mahindra, Toyota,
Chevrolet, Ford, Volkswagen, Ashok Leyland, and Mercedes-Benz.
Maruti Suzuki: Challenges Faced
Suzuki Motors Corporation had to recall several car models, including the Grand Vitara and
XL 7, built in 2005. A fault was found in the drive belt adjuster pulley, which has a plastic
outer section and operates the power steering pump and air conditioner compressor. Repeated
heat stress weakened the outer body composed of plastic, causing sections of the pulley to
break off.
The business discovered that broken portions of pulleys can become caught between the
pulley and the drive belt, causing the drive belt to break off, resulting in higher effort to steer
the vehicle by the driver, which in turn raised the danger of an accident or collision. The
Suzuki Motor Corporation dealers changed the power steering pump belt tension adjuster for
customers whose vehicles had the same defect at no cost as part of the company's strategy to
fix the problems with the vehicles.
Maruti Suzuki India Limited, A Suzuki affiliate, has a difficult time maintaining its market
dominance in India's tiny car market. Some of the company's best-selling products, such the
Maruti Suzuki Swift and Swift Desire, had a lengthy gestation period because of serious
production problems. Maruti Suzuki's market share in India might have decreased as a result
of these production problems, yet the business managed to the problem by collaborating with
their suppliers to boost the materials' supply, and the business was able to clear the backlog of
its regular sales on a number of models.
India's largest automobile manufacturer released its annual integrated report for the 2020
fiscal year on Wednesday, assessing the impact of the pandemic on its financial performance
and delivering the message, "Difficult days, but we will emerge stronger."
For the first time in about 20 years, the market leader reported losses, with the April–June
2020 quarter showing a loss of almost Rs 250 crore. Compared to around Rs 19,000 crore
during the same period last year, net sales had dropped to less than Rs 4,000 crore year.
"Your business, along with its suppliers and dealers, has had the chance to assess all of its
operational procedures and improve efficiency and competitiveness as a result of the COVID-
19 pandemic. Therefore, I think we will come out stronger and fitter in the future, even
though we are going through tough times right now," Maruti Suzuki chairman R.C. Bhargava
told stakeholders.
Maruti Suzuki's Future Plans
Maruti Suzuki and Toyota have partnered to develop a midsized SUV based on the current
Brezza design that will compete in the Hyundai Creta market in 2022. In 2023, a C-segment
MPV is also planned, and both cars will probably be built at Toyota's Bidadi plant.
To ensure that both businesses benefit from India's rising predilection for utility vehicles, the
SUV and MPV under development are anticipated to have unique features or distinction, in
contrast to the rebranded Baleno, Ciaz, and Ertiga, which Maruti and Toyota will share in
India until 2022.
Given that its competitors have more than a dozen SUVs planned, Maruti Suzuki understands
that it needs to provide competitive products to maintain its 50% market share Distribute.
One of the four executives who are aware of Maruti's plans stated, "A 1.5-liter diesel engine
is not yet ruled out, but the departure from diesel makes compact UVs a challenge."
Additionally, in order to improve its future portfolio, Maruti will be depending on Toyota's
locally tailored hybrid solutions.
In India, the utility vehicle market is predicted to surpass the modest hatchback market as
more consumers choose tall, high-seating SUVs and MPVs, which range in price from Rs 5
lakh to Rs 1 crore. IHS Markit, a car forecasting agency, projects that sales of utility vehicles
will end 2019 at 38%, slightly trailing the hatchback sector, before surpassing it in 2020. The
segment's share of entry- or mini-cars, once Compared to its 25% market share five to seven
years ago, Maruti's backbone now only makes just 10% of the total market.
In addition to introducing the petrol-powered Vitara Brezza and S-Cross, Maruti developed
the S-presso, an entry-level SUV. A sizable portion of Maruti's Swift, Dzire, Ciaz, and Ertiga
customers are anticipated to eventually upgrade to a larger SUV and MPV.
The biggest passenger car manufacturer in India is Maruti Suzuki India Limited (MSIL), a
division of Suzuki Motor Corporation, Japan. It is believed that Maruti Suzuki was the
driving force behind the nation's automotive revolution. The company's operations in India
include the production and distribution of passenger cars. After a modest start with the
legendary Maruti 800, Maruti Suzuki now boasts a huge portfolio of 16 car models with more
than 150 variations. From entry-level little cars like the Alto 800 and Alto K10 to the luxury
sedan Ciaz, Maruti Suzuki offers a wide range of products. Facilitation of fleet management
for used car sales and auto financing are additional operations. The business operates
manufacturing plants in Haryana's Gurgaon and Manesar, as well as a cutting-edge research
and development facility in Haryana's Rohtak.
Formerly called Maruti Udyog Limited, the company was established in February 1981 as a
joint venture between Suzuki Motor Corporation of Japan and the Government of India.
Suzuki Motor Corporation now holds 56.2% of the ownership. The National Stock Exchange
(NSE) and the Bombay Stock Exchange (BSE) both trade the company's shares.
Maruti Suzuki India Ltd. has a history of brand alliances and sponsorships, primarily
in the fields of social causes, education, the arts, and sports. Usually, they concentrate
on:
1. Sports Sponsorship: Suzuki Motorsports events, which are well-liked in India, are
sponsored by Maruti Suzuki. To reach younger audiences and sports fans, they have also
sponsored football, cricket, and other sporting events.
2. Cultural and Lifestyle Events: To target a variety of demographics, the company
collaborates with music festivals, cultural festivals, and lifestyle expos. For Maruti Suzuki,
events like Auto Expo are important since they highlight new car models and technologies.
3. Educational and CSR Initiatives: As part of its Corporate Social Responsibility (CSR)
efforts, Maruti Suzuki funds a number of skill-development initiatives. For instance, they
back programs for vocational training, driving schools, and programs for road safety.
4. Environmental Sponsorship: In order to promote sustainable mobility and lessen its
environmental impact, Maruti Suzuki has backed green initiatives.
In order to approach Maruti Suzuki about a particular event or proposal, you would typically
need to get in touch with their marketing or CSR department and explain how the
sponsorship fits with their audience's interests and brand values.
OBJECTIVES OF THE COMPANY
Leading Indian automaker Maruti Suzuki has a number of strategic goals to uphold its market
dominance, improve customer satisfaction, and promote long-term growth. These are a few of
its main goals:
1. Market Leadership: Maruti Suzuki wants to solidify its standing as India's biggest producer
of passenger cars. This entails diversifying its product portfolio to appeal to a range of
consumer demographics, from high-end vehicles to more affordable ones.
2. Innovation and R&D: To introduce cutting-edge, fuel-efficient, and ecologically friendly
automobiles to the market, the company is dedicated to investing in research and
development. In order to satisfy changing environmental regulations, this involves creating
hybrid, electric, and other alternative fuel automobiles.
3. Customer Satisfaction: Maruti Suzuki prioritises customer satisfaction by providing
premium automobiles and first-rate post-purchase care. The business keeps improving its
service network to guarantee clients' accessibility and convenience throughout India.
4. Sustainability and Environmental Responsibility: By increasing fuel efficiency, cutting
emissions, and implementing greener production techniques, Maruti Suzuki hopes to lessen
its influence on the environment. This is in line with international initiatives to lessen the
carbon impact of the automobile sector.
5. Sales Network Expansion: In order to reach a wider audience, Maruti Suzuki plans to
extend its service and sales networks throughout India's rural and metropolitan areas.
Establishing new dealerships and service facilities is one way to increase accessibility for all
clientele groups.
6. Productivity and Cost Efficiency: Lean manufacturing, effective supply chain procedures,
and cost control are some of the ways Maruti Suzuki aims for operational excellence. The
organisation is able to maintain competitive pricing thanks to these efforts and improve
profitability.
7. Global Expansion: Beyond India, Maruti Suzuki intends to extend its presence in
international markets, with an emphasis on emerging economies. This involves exporting
vehicles to different nations and pursuing joint ventures and alliances abroad.
8. Employee Engagement and Development: The organisation invests in talent development
to ensure that its team is skilled and motivated. Maruti Suzuki prioritises staff training, safety,
and well-being, fostering a positive organisational culture.
