CHAPTER 1

INTRODUCTION

INTRODUCTION TO AUTOMOBILE INDUSTRY

The History of the automobile actually began about 4,000 years ago when the first wheel was

used for transportation in India. Several Italians recorded designs for wind-driven cars. The first

was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels.

Vaturio designed a similar car that was also never built. Later Leonardo da Vinci designed

clockwork-driven tricycle with tiller steering and a differential mechanism between the rear

wheels.

In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures

led to a variety of new technologies, including the creation of a wheel that turned under its own

power. By the 1600s, small steam-powered engine models were developed, but it was another

century before a full-sized engine-powered automobile was created.

A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-powered car

for the Chinese Emperor Chien Lung in about 1678. There is no information about the

automobile, only the event. Since James Watt didn't invent the steam engine until 1705, we can

guess that this was possibly a model automobile powered by a mechanism like Hero's steam

engine-a spinning wheel.

Although by the mid-15th century the idea of a self-propelled automobile had been put into

practice with the development of experimental car is powered by means of springs, clockworks,

and the wind.

The automobile history dates back to the late 18th century. In the year 1769, a French engineer

by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile,

in fact, was a self-powered, three-wheeled, the vehicle found military application in the

French army. Cugnot’s automobile was never commercially sold.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832

and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson

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were amongst the first to invent more applicable automobiles, making use of non-

rechargeable electric batteries in 1842. Development of roads made travelling

comfortable and as a result, the short ranged, electric battery driven automobiles were

no more the best option for travelling over longer distances.

Later it was started with the invention of gasoline powered internal combustion engines. The

German inventor, Karl Benz constructed his first gasoline powered vehicle in 1885 at Mannheim,

Germany. Commercial production of Benz cars started in 1888. Panhard ET Levassor of France

was the first company to exclusively build and sell motor cars from 1889. Carl Benz and

Gotttlieb Daimler, both Germans, share the credit of changing the transport habits of the world,

for their efforts laid the foundation of the great motor industry as we know it today.

Daimler's engine proved to be a great success mainly because of its less weight that could deliver

1000 rpm and needed only very small and light vehicles to carry them.

France too had joined the motoring scenario by 1890 when two Frenchmen Panhard and

Levassor began producing automobile s powered by Daimler engine, and Daimler himself,

possessed by the automobile spirit, went on adding new features to his engine. He built the first

V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form of

sparking plug. The engines were positioned under the seat in most of the Daimler as well as Benz

cars. However, the French duo of Panhard and Levassor made a revolutionary contribution when

they mounted the engine in the front of the car under a bonnet.

Charles Duryea built a car carriage in America with petrol engine in 1892, followed by Elwood

Haynes in 1894, thus paving the way for motor car s in that country.

For many years after the introduction of automobile s, three kinds of power sources were in

common use: steam engines, gasoline or petrol engines, and electrical motors. In 1900, over

2,300 automobile s were registered in New York, Boston, Massachusetts, and Chicago. Of these,

1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars.

In ten years from the invention of the petrol engine, the motor car had evolved itself into

amazing designs and shapes. By 1898, there were 50 automobile -manufacturing companies in

the United States, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the

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manufacture of automobile s with his assembly-line style of production and brought out the

Model T, a car that was inexpensive, versatile, and easy to maintain. The introduction of the

Model T transformed the automobile from a plaything of the rich to an item that even people of

modest income could afford; by the late 1920s the car was common place in modern industrial

nations.

Charles Kettering's invention of the electric starter in 1912, turned the process of starting

automobiles faster and easier at the same time, doing away with the hand tools. Crude oil being

discovered in Texas, the automobiles driven by engines that ran on gasoline became even more

affordable, as the prices of gasoline reduced. The prices of electric automobiles were going

through a constant rise, in spite of the fact that these were less efficient than the gasoline

automobiles.

The early 1900s saw many automobile manufacturing companies coming into existence in a

number of European countries and the United States. The first mass produced automobile in the

United States was the curved-dash Oldsmobile. It was a three-horsepower machine and sold

5,000 units by 1904. The economics of the US car market was disrupted by the arrival of

Henry Ford and his Model T car. The Model T was the world's first mass produced vehicle- a

million units were sold by 1920- a space of 10 years.

Herbert Austin and William Morris, two different car makers, introduced mass production

methods of assembly in the UK, thus paving the way for a revolution in the automobile industry.

Austin Seven was the world's first practical four-seater 'baby car ' which brought the pleasures of

motoring to many thousands of people who could not buy a larger, more expensive car. Even the

'bull-nose' Morris with front mounted engine became the well-loved Model and one of the

most popular cars in the 1920s.

Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of

Ford and other pioneers. Cars were generally large, and many were still extremely expensive and

luxurious; many of the most collectible cars date from this time. The increased affluence of the

United States after World War II led to the development of large, petrol-consuming cars, while

most companies in Europe made smaller, more fuel-efficient cars. Since the mid-1970s, the

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rising cost of fuel has increased the demand for this smaller cars, many of which have been

produced in Japan as well as in Europe and the United States.

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CHAPTER 2

COMPANY PROFILE OF MARUTI SUZUKI

AT A GLANCE

Maruti Suzuki India Limited is a subsidiary company of Japanese automobile and

motorcycle manufacturer Suzuki. The company offers a complete range of cars from entry level

Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo, Ertiga, celerio, and

sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara.

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 as Maruti Suzuki India Limited.

The company's headquarters are located in New Delhi.

PROFILE

Maruti Suzuki is India and Nepal'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 Suzuki of

Japan. The BJP-led government held an initial public offering of 25% of the company in June

2003. As of 10 May 2007, the government of India sold its complete share to Indian financial

institutions and no longer has any 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

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Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti

Suzuki has produced over 5 Million vehicles. Maruti Suzuki is sold in India and various several

other countries, depending upon export orders. Models similar to Maruti Suzuki’s (but not

manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in

Pakistan and other South Asian countries.

The company exports more than 50,000 cars annually 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. 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. 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 1983. Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz,

Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, and Kizashi. Swift, Swift DZire, A-

star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as

completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon

Plant.

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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 Pacific.

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.

Joint venture related issues

Maruti Suzuki's A-Star vehicle during its unveiling in PragatiMaidan, Delhi. A-Star,

Suzuki's fifth global car model, was designed and is made only in India. Maruti Suzuki is also

Suzuki's leading research and development arm outside Japan

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Relationship between the Government of India, under the United Front (India) coalition and

Suzuki Motor Corporation over the joint venture was 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 tenure of five years.

R.C. Bhargava was the initial 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. 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. In 1987 he was promoted as Chief General Manager. In

1988 he was named Director, Productions and Projects. The next year (1989) he was named

Director of Materials [clarification needed] and in 1993 he became 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. Later Suzuki Motor Corporation went on record to

state thatBhaskarudu 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 indigenize 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. If Maruti Suzuki would

have been able to indigenize 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.

The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring a

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stay order against Bhaskarudu's appointment. 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, JagdishKhattar, Executive Director of Maruti

UdyogLimited would assume charges as the Managing Director. Many politicians stated in

parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and reduce

imports. As of 2011 Gear boxes are still imported from Japan and are assembled at the Gurgaon

facility.

Industrial relations

For most of its history, Maruti Udyog Limited had relatively few problems with its labor 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 subsidized 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 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

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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.

THE PRODUCTS OF MARUTI SUZUKI

1. Gypsy (launched 1985)

2. WagonR (Launched 1999)

3. Alto (Launched 2000)

4. Swift (Launched 2005)

5. Estilo (Launched 2006)

6. SX4 (Launched 2007)

7. Swift DZire (Launched 2008)

8. A-star (Launched 2008)

9. Ritz(Launched 2009)

10.Eeco (Launched 2010)

11.Alto K10 (Launched 2010)

12.MarutiErtiga(Launched 2012), seven seater MPV R3 designed and developed in India,

will compete with Toyota Innova, Mahindra Xylo, and

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Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in

Completely Knock Down car.

13. Maruti XA Alpha based compact SUV to compete with the Ford Eco Sport& Renault

Duster will be launched in the year 2014

14. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of

Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out three standard variants-

Altos 800 Base, Alto 800 LX and Alto 800 LXi and three

CNG variants -Alto 800 CNG Base, Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8

liter of petrol engine is very fuel efficient and pushes the car to produce high class

mileage of 17 to 22 km per liter. The 45.7BHP of peak power produced by the engine is

also successful on road by delivering top-notch performance.

15. Maruti Suzuki Ertiga (Launched 2013)

16. Maruti celerio (Launched 2014)

17. Maruti Ciaz (Launched 2014)

Imported

1. Grand Vitara (Launched 2007)

2. Kizashi (Launched 2011)

Discontinued car models

1. 1000 (1990–2000)

2. Zen (1993–2006)

3. Esteem (1994–2008)

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4. Baleno (1999–2007)

5. Versa (2001–2010)

6. Grand Vitara XL7 (2003–2007)

MODEL AND PRICE OF THE PRODUCTS

Car Model Ex-Showroom Price

Maruti Suzuki Alto 800

2.38 - 3.49 lakhs

Maruti Suzuki Omni 2.41 - 2.47 lakhs

Maruti Suzuki Eeco 2.98 - 3.98 lakhs

Maruti Suzuki Alto K10 3.15 - 3.28 lakhs

Maruti Suzuki Wagon R 1.0 3.49 - 4.34 lakhs

Maruti Suzuki Celerio 3.76 - 4.79 lakhs

Maruti Suzuki Stingray 4.01 - 4.56 lakhs

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Maruti Suzuki Ritz 4.23 - 6.16 lakhs

Maruti Suzuki Swift 4.42 - 6.71 lakhs

Maruti Suzuki Swift DZire 4.85 - 7.32 lakhs

Maruti Suzuki Gypsy 5.79 - 5.93 lakhs

Maruti Suzuki Ertiga 5.80 - 8.49 lakhs

Maruti Suzuki SX4 7.15 - 9.54 lakhs

Maruti Suzuki Grand Vitara 22.68 - 24.61 lakhs

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UPCOMING CARS OF MARUTI SUZUKI

FIG NO: 1

Maruti Ciaz

Estimated Price: 8, 00,000*

Expected launch Date: Oct 2014

Its elegant design creates a superior aesthetic appeal while its aerodynamic style adds a stunning

effect to its looks. The Maruti Suzuki Ciaz truly sets the standards for the rest to aspire for. No

wonder when you’re behind the wheel, the only thing ahead is an open road.

FIG NO: 2

Maruti Suzuki iV-4

Estimated Price: 12, 00,000*

Expected launch Date: Dec 2014

The sub-compact SUV is one segment that every automaker is eyeing at, especially after a great

response Renault Duster and Ford Eco Sport has received in the market. India's largest carmaker

Maruti Suzuki too is working on a sub-compact SUV, which many believe will be based on the

XA Alpha, unveiled at the 2012 Indian Auto Expo.

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FIG NO: 3

Maruti MR Wagon

Estimated Price: 5, 00,000*

Expected launch Date: Feb 2015

The Maruti Suzuki MR Wagon is a mini-MPV with a seating capacity of four passengers. It is a

typical Japanese hatchback with boxy proportions, which looks quite compact from the outside

and yet, is very spacious and comfortable on the inside. Powering the MR Wagon could be the

new K-Series 660cc MPFI petrol engine that will be coupled with a CVT transmission. If

launched in India, the MR Wagon could be offered in diesel and CNG options as well.

FIG NO: 4

Maruti Suzuki SX4 S Cross

Estimated Price: 10, 00,000*

Expected launch Date: Mar 2015

The SX4 S-cross, which is already on sales in European markets is powered by 1.6 litre petrol

engine, which can churn out 120 PS peak power and 156 Nm peak torque and 1.6 litre MultiJet

engine, capable of generating 120 PS and 320

Gurgaon Manufacturing Facility

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The Gurgaon Manufacturing Facility has three fully integrated .All three 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.

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 annually. The

Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

Sales and service network

As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states

and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and

Maruti Authorized Service Stations) in 1,395 towns and cities throughout India. It has 30 Express

Service Stations on 30 National Highways across 1,314 cities in India.

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.

Maruti Insurance

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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.

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

inception.

Maruti Insurance offers special Motor Insurance products from leading Insurance Companies

like National Insurance, New India Assurance, ICICI Lombard, IffcoTokio, Royal Sundaram &

Bajaj Allianz.Maruti Insurance also ensures excellent customer service with utmost fairness and

transparency available to you across the country. No wonder, more than 90% customers buying a

Maruti Suzuki, prefer to buy a Maruti Insurance Policy for their car.

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. 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

2003Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-

Maruti Finance is currently available in 166 cities across India.

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 marketplace".

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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%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.

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.

Maruti True Value

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 31 March 2010 there are 341 Maruti True Value outlets.

N2N Fleet Management

N2N is the short form of End to End Fleet Management and provides lease and fleet

management solution to corporate. Clients who have signed up of this service include Gas

Authority of India Ltd, DuPont, and Reckitt Benckiser, Sona Steering, Doordarshan, Singer

India, National Stock Exchange and Tran’s world. These fleet management services include end-

to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience

services and Remarketing.

Accessories

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

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authorized service stations throughout India.

Maruti Driving School

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 behavior and attitudes are also taught in these schools.

Before driving actual vehicles participants are trained on simulators.

"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

Schools.

Issues and problems

On 24 February 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.

Exports

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 consignments 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

currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,

Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti

Exports.

Milestones:

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2014: Maruti Suzuki announces global debut of ‘Celerio’ with revolutionary Auto Gear

Shift 2013: Maruti Suzuki introduces stylish Stingray 2012: India’s favorite car Maruti Suzuki Alto crosses the 20 Lakh sales mark 2011: Maruti Suzuki India unveiled its much awaited sportier and stylish car, the all new

'Swift'. 2011: On March 15, Maruti Suzuki India rolled out its 1 Crore (ten millionth) car. The

historic 1 Crore car, a Metallic Breeze Blue colored WagonR VXi (Chassis No 243899)

rolled out from the Company's Gurgaon plant. 2010: Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector

by India's leading Business newspaper The Economic Times. 2009 – MSIL adopts voluntary fuel disclosure. First shipment of A–star leaves Mundra

Port–Jan 10.A–star bags,Zig wheels “car of the year award “A–star rated best small car of

the year–auto car–UTVi. 2008 – World Premiere of concept A–star at 9th Auto Expo, New Delhi. 2007 – Swift diesel launched. New car plant and the diesel engine facility commences

operations during 2006–07 at Manesar, Haryana.SX4–Luxury Sedan Launched with the

tag line “Men are black”.Maruti launches Grand Vitara. 2006–J.D.Power Survey award for the sixth year.MSIL has changed its EMS from ISO

14001:1996 version to ISO 14001:2004 version w.e.f.1st July 2005– MSIL was re–certified in 2005 as per ISO 14001:2004 standards. 2004 – A new esteem launched –second successful facelift by Maruti engineers. 2003 – Maruti gets listed on BSE and NSE.IPO (issue oversubscribed 11.2 times) New

Zen launched–first facelift by Maruti engineers. 2002 – Divestment –Suzuki Motor Corporation (SMC) acquires majority stake in

MUL.Maruti Finance & Insurance launched. 2001 – Turn around with profits Rs104.5 crore. Four new business–True

value,Insurance,Finance.Maruti Versa launched.Maruti True Value launched. 2000 – Maruti alto launched. FirstCar Company in India to launch call center.IDTR

launched jointly with the Delhi government to promote safe driving habits.

CHAPTER 3

ORGANISATIONAL STRUCTURE

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Maruti has believed, since the very beginning that it is its employees who could make it into an

organization with a difference .Accordingly, as against the traditional hierarchical

System of management, which causes unnecessary delays in decision-making, we have built up

a flat organization with a family type of atmosphere at our place of work.

The company is divided into different divisions according to the various functional areas. A

Divisional Manager heads each Division. Divisions are further divided into Departments that

are headed by Department Managers who report to the respective Divisional Managers.

Designations in the company are based on the functional responsibility and not levels as in

terms of the company’s philosophy designations and functional responsibility are de-linked

from the salary levels.

The total operations of the Company are divided into Divisions like Marketing & Sales, Spares,

Engineering, Q.A. & Services, Production, Production Engineering, Materials, Information

Services, Finance, Personnel & Administration, etc. Each division is furthering divided into

Departments and headed by Departmental Managers who is assisted by Supervisory Executives.

Across history, the people have made Maruti Suzuki a company ready to meet the challenges of

the dynamic auto market. The value discipline and punctuality, and obsess over maintaining a

safe and healthy work environment. Maruti Suzuki recruitment drives have chosen people with

an obsession to delight customers, and we leave them free to take decisions in complex

situations.

Beyond the work place, the company creates ample opportunities for growth, sports and

adventure – from motorsport to social volunteering with communities – the entire gamut helps

give an all-round perspective of life.

The hierarchy diagram of Maruti Suzuki

FIG NO: 5

21

Organizational structure represents the manner in which responsibility and authority are

distributed as well as how work procedures are executed within organizational arms. There are

several variables dictating the most suitable structure which is going to meet organizational

mission and vision at the long run. Centralization of power, hierarchy design and horizontal

22

incorporation are factors to consider while putting up an organizational structure. Another factor

of paramount importance in the design of optimal organizational structure is the core processes

of a firm. The structure is capable in reflect key processes of an organization starting from source

material to delivery of finished products. For any organization to achieve optimum results

possible, it is crucial to select structures which match predetermined objectives, features of

necessary processes and means of controlling those processes (Growth, 1999). Processes are very

fundamental to every organizational structure model. For example, information and decision

process are available in almost all subsections of the entire structure. Based on underlying roles

and purposes, organizational structure can be seen as body framework of the firm while

processes represents mental capability (Galbraith, 2002). Therefore there are two elements of any

organizational structures namely: processes and structure. It is therefore implicit that any

structure makes sense if it is based on required processes.

Maruti is characterized by functional organizational structure having Horizontal linkages. Based

on automotive engineering operations, the firm’s organizational structure has several divisions.

These encompass the following functions: Engineering, Sales, Finance, Spares, Administration,

New Business, Information Technology, Human Resource Development, Maintenance, Quality

Assurance and Parts Inspection. Being a large organization it is Maruti’s organizational chart is

further subdivided in to smaller sub sections depending on other criteria like location, plant,

product etc. Maruti has a total of 29 divisions operating under one Divisional Head who is

serving as Functional post in the structure. The structure further reveals that within these

divisions are 132 departments under stewardship of one departmental head. These Department

Head are also functional posts. This structure is designed on the same pattern as that of Japanese

Suzuki Motor Company which is Maruti’s partner. Human resource planning, plant layout and

installation of production facilities are intrinsic in nature to Suzuki Motor Company’s structure.

CHAPTER 4

FUNCTIONAL AREAS

23

DIVISIONS AND DEPARTMENTS

Human Resource Division

People

The human resource department recruits and selects staff for the business organization. They are

also responsible for staff training and welfare.

This function is concerned with insuring that processes are documented, employee records are

accurately maintained and safeguarded, employee get paid, employment adds are placed along

with many others daily activities that are essential to the smooth operation of a business. These

are very important functions that must be performed accurately, efficiently and in a timely

fashion.

Policies

When the HR function is viewed as a strategic partner, the HR head is an integral part of the

strategic decision-making process. Questions such as the potential availability of talent, the

ability to change employee behavior and an analysis of current skills are all considered in

making these important strategic decisions.

Systems and procedures

Business firms all have a strategic planning process. Some are more formal while in other

companies strategies emerge through a set of high level strategic decisions. Whichever the

approach, the top management teams (TMT) look to functional experts for advice. The TMT

would not consider taking on a new product, altering the competitive strategy, or any other large

scale strategic level change with consulting with its finance and marketing experts, but in many

firms it is only after a strategic plan is developed or and strategic change is announced does the

TMT turn to its HR head and says, make it so.

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Production Division

• People

People who work in manufacturing and production don't just create products; they create them as

quickly as possible, as inexpensively as possible, and in the necessary quantities. Those working

in manufacturing and production know that time is money: The faster and better that they and the

machines around them work, the better their companies perform.

• Policies

Systems and controls engineers need to be expert computer programmers, able to design and

maintain the equipment that technicians use to interface with the manufacturing equipment-the

human-machine interface, the process engineer is the link between product design and

production. Process engineers work with manufacturing engineers and design engineers during

the product development process to make sure that the product being designed can be

manufactured effectively from both a technical and a financial standpoint

• Systems and procedures

A test engineer is the stickler of the manufacturing group. Here your job is to create and run

simulations to find problems in a manufacturing process. Senior positions in this area offer

opportunities to explore new ways of doing things: for example, rerouting conveyor belts or

switching or resequencing various production steps to enhance the process.

Marketing & Sales

This department creates awareness for the firm products and motivates consumers to buy. They

also carry out market research to identify customer’s needs

• People

Market research provides managers with current, relevant, accurate and reliable information

concerning competitors, advertising, distribution and potential and loyal customers. This

25

information assists managers in making decisions about packaging, product design, pricing,

distribution and advertising.

• Policies

Market research provides managers with current, relevant, accurate and reliable information

concerning competitors, advertising, distribution and potential and loyal customers. This

information assists managers in making decisions about packaging, product design, pricing,

distribution and advertising.

• Systems and procedures

Customers are entitled to these services once they have made a purchase. They include delivery,

installation and warranty. These services are free and therefore usually encourage consumers to

buy. This is the use of sales persons to present and sell goods and services of a firm. Sales

persons promote a firm’s goods directly to a specific consumer. They locate new customers,

provide display services, demonstrate the use of products, deliver goods, collect payments and

provide the firm with feedback

Finance Division

• People

People are the assets and have been instrumental in driving the Company's performance year on

year. Their passion, commitment, sense of ownership and team work has enabled the Company

to sustain its leadership position in the challenging market scenario of 2013–14. The Company

has always striven to offer a positive, supportive, open and high performance work culture where

innovation and risk taking is encouraged, performance is recognized and employees are

motivated to realize their true potential.

The Company hired and integrated 904 people into its workforce in the 201314. The Company

has 12,547 regular employees out of which 366 are women. The Company is an equal

opportunity employer and believes in recognizing merit and potential in the selection process.

There has been a continuous effort to increase the number of women employees in the

organization to bring diversity in terms of population mix, versatility and value addition.

26

• Policies

The Company constituted a CSR committee with Mr. R.C. Bhargava as its Chairman and Mr.

Kenichi Ayukawa and Mr. R.P. Singh as its members. Mr. R.C. Bhargava is Non–Executive

Chairman and Mr. R.P. Singh is an Independent Director.

The Company has complied with the corporate governance requirements, as stipulated under

clause 49 of the listing agreement and the stipulated certificate of compliance is contained in this

annual report.In accordance with the Accounting Standard – 21 on Consolidated Financial

Statements read with Accounting Standard – 23 on Accounting for Investments in Associates in

and Accounting Standard – 27 on Financial Reporting of Interest in Joint Ventures, the audited

consolidated financial statements are provided in the annual report.

• Systems and procedures

They have selected such accounting policies and applied them consistently and made judgments

and estimates that are reasonable and prudent so as to give a true and fair view of the state of

affairs of the Company at the end of the financial year and of the profit of the Company for that

period

The total project costs, priority, completion time and personnel’s required were estimated. Initial

plans were drawn up as to how the project would proceed to its final implementation, while

running the existing system so that company’s information needs were not affected.

In conformity with the directives of the Central Government, the Company has appointed M/s R.

J. Goel & Co., Cost Accountants, as the Cost Auditors under Section 148 of the Companies Act,

2013 read with the rule 14 of the Companies (Audit and Auditors) Rules, 2014 for the audit of

the cost accounts for the motor vehicles business for the year ending on 31st March 2015. The

cost audit report for the financial year 2012–13 was filed with the Ministry of Corporate Affairs

on 30th September 2013.

FIG NO: 6

27

Production Division of Maruti Suzuki India Limited

28

Production Division in Maruti Suzuki India Limited has been renamed as

Production Business Vertical (PBV) after inclusion of Projects, Production

Engineering, Vehicle Inspection & Supplier Quality Assurance divisions in it.

PRESS SHOP

The press shop can be regarded as the starting point of the car manufacturing

process. Centrally located between weld 1, weld 2 and weld 3 supplies

components to all the three plants. The press shop has a batch production system

whereas the plants have a line production system. The press shop maintains an

inventory of at least two days. The weld shop as per the requirements picks the

finished body parts from the press shop. These may be divided as A, B and C. ‘A’

components are large outer components as for example roof, door panels etc.

These components are manufactured in the press shop at Maruti due to design

secrecy and huge investment requirements. ‘B’ and ‘C’ components are

manufactured by joint ventures or bought from vendors.

Process flow of Press Shop activity:-

FIG NO: 7

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Steel coil

Blank

Panel

1. Currently Press Shop is producing sheet metal components for 8 running

models of Maruti Suzuki and one model of GM India - Tavera

2. The Blanking and stamping shop processes 10000 metric ton of steel /

month i.e. 400 tons a day

Machine:

Five Transfer Press (4000 ton , 3500 ton , 2400 ton -1 2400 ton -2 , 2000 ton

in terms of total capacity i.e. draw+trim+pierce+bend+restrike ) &1 Tandem

line( 1500 ton draw capacity)

Two Coil processing lines ( ROSL – Shear line & Blanking line ) SPM of 60

Capacity of 55,000 strokes / day from 400 tons of steel coils

FIG NO: 8

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Press Machine: Mass production presses are continuous flow transfer presses. Set

of 4 to 5 dies are mounted on single press & complete panel comes out from press

after going through stamping, trimming & piercing.

189 die sets (including 15 die sets of GMI) – 1 die set has avg 4 upper + lower

dies

SMED: “Single Minute Exchange of Dies” new concept being adopted. This

concept helps in changing of die set up within single digit minute (below 9

minutes) this helps us in improving machine utilization & operating efficiency.

Since press machines are very high cost investment & any idle time lost due to die

exchange will be a cost to company.

FIG NO: 9

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UPPER LOWER

Yield is improved by

1. Reducing the blank size

2. Utilization of scrap for making smaller sheet metal parts

Steel Coils

Steel coil is raw material used to make body sheet metal parts. These are CRS

coils made of mild steel having thickness from 0.65 mm to 0.8 mm & weight

from 1 ton to 4 tons.

FIG NO: 10

32

Steel coils are received in bulk quantities from indigenous as well as foreign

suppliers in the ratio of 60 to 40 & stored at a centralized storage & supplied to

blank cutting areas as per plan

Steel coils are fed to Blanking & ROSL lines by overhead EOT cranes. Sheet is

first de-coiled, cleaned, oiled & fed to cutting or shearing areas of blanking or

ROSL lines.

Blank

Coils are fed to blanking line & continuous supply of sheet to cutting dies result in

shaping of coils to plan blanks.

Blanks are cut by stamping or shearing process & are stacked one by one to form

large mass of blanks

These stacks of blanks are further sent to press machines for forming into shape of

body panels

FIG NO: 11

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Panel

Blanks are supplied to press lines for pressing. Blanks are converted to body

panels by this process. Panels are stored in pallets which are supplied to Weld

Shops for making White Bodies.

FIG NO: 12

34

WELD SHOP

The body panels produced in the press shop and the other small components are joined here to

give the “white body” or “shell”. In a typical car body 1400 different components are welded

together. The weld shops have the following facilities.

Welding jigs

Spot welding guns

Kawasaki welding robots

Hemming machines

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Punching machines

PROCESS OUTLINE: The shop has different lines for different models, each of,

which is further divided into three parts:

UNDER BODY: Here different underbody panels are welded together. These

comprise of rear underbody, central underbody, and front engine room panel.

These underbodies are put on the conveyor and welded together to give the

underbody.

MAIN BODY: As the body moves on, the conveyor roof and side body panels

(prepared on the sub lines) are welded to it to give the main body. The chassis

number is punched on the cowl top and it is welded to the front engine room

panel.

WHITE BODY: The doors, hood and back door are attached on the main body

with the help of bolts and screws to make it a “white body”. The body is checked

for dent, burr and spatter and these defects are repaired. After inspection and

repairs the body is called WBOK. It is sent to the paint shop thereafter.

PAINT SHOP

FIG NO: 13

36

In the paint shop following processes are carried out: -

There are five plants/units that provide a uniform painting over the white body

coming from the weld shop. In paint shop all the models are painted on the same

line. The five units are: -

Pre-treatment (PT): The body is thoroughly washed to remove the dirt and oil scales.

Then the body is treated with ZnPO4 (phosphating) to prevent corroding of the body.

ED coat: This is done by electric deposition method, at 240V-DC supply. After applying

the ED coat the body is baked in oven.

Sol-sealer and under coat:Here the left in the body (due to welding) are filled with sol-

sealer to provide water proofing. Under coat is done on the surface above wheels to

prevent damage of body in that portion.

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Intermediate coat:This is done by spray-painting method using 10 Kawasaki Robots.

After applying the coat, the body is dried in the oven. Painting done is basically an

intermediate coating to provide base for the final coat.

Top coat: This is done by spray-painting method using 20 Kawasaki Robots. For metallic

coating, double coats are applied and aluminum flakes are provided to shine the metallic

paints.

After inspection and touch up, the PBOK, i.e. the paint body ok is sent to the

assembly shop.

Inside portion of vehicle is painted manually and outside is by Robots.

ULTRA FILTRATION:

Ultra filtration is the process in which all the rinse pipes and dip tanks will be

filtered and cleaned, by this way water is recycled. Here Osmosis process is used

to filter water.

IC painting:

IC is intermediate coating in which 3 colors are used. They are white, blue and

red. Outside portion of vehicle is painted by robots and inside is done manually.

Paint thickness is taken care, after that vehicle is sent to IC oven. Oven

temperature is 198+/-5’C.

TOP COAT Painting:

Top coating is done after checking in Dry sanding II. There are 2 sub coatings

Base coat and Clear coat. Here 11 colors are used; 8 metallic and 3 solid. Only

metallic colors are coated with clear coating. Here also outside portion of vehicle

is painted by robots and inside is done manually.

Next vehicle will move to final inspection and will be sent to assembly.

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ASSEMBLY SHOP

In the assembly shop the body is loaded on an overhead conveyor. As the conveyor moves the

body, fitments are made at various stations. There are three Assembly Shops named ASSY-1,

ASSY-2 and ASSY-3. Plant 2 and Plant 3 have similar setup but in Plant-1 there are separate

assembly lines for separate models. The assembly shop has a continuous production system. The

assembly line can be subdivided into the followings: -

(a) Trim line

The vehicle proceeds through a series of Trim workstations where team members begin by

installing weather stripping, moldings and pads. Then they put in wiring, vents and lights. After

an instrument panel, windows, steering column and bumper supports are added, it starts to look

less like a shell and more like a car.

(b) Chassis Line

This is where many safety-related items are installed. Things like brake lines,

torque, gas tanks and power steering are double-checked. The engine is installed,

along with the starter and alternator. Then come suspension and exhaust systems.

Then wheel is mounted with the help of wheel nut fastening machine.

(c) Final Line

From there the vehicle enters Final 1, which covers many interior items such as

the console, seats, carpet, glove box and steering wheel. This is also where

bumpers, tires and the battery are added, as well as finishing touches like covers

and vents. Then, Coolant, Brake oil, Power steering oil are filled and also the A/C

gas are charged.

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Features

Different assembly shop layouts are followed to reduce material handling operations & to

facilitate material flow between workstations.

a) Straight-line layout – Car &Omni line (Assy shop-1): Simplest layout in which material

enters at 1 end & leaves at the other end.

b) U shape layout – Assy shop 2 & 3: Receiving & shipping ends of line are at same end of

plant, due to material handling considerations (same forklift for both needs) or external

needs.

c) S shape layout – Esteem line (AS-1): Serpentine layout to fit longer assy line in square

shop.

Separate door Assy line: - Doors are taken out from the vehicle at the first station of the trim line.

Doors fitted in the final line make working easier.

OTHER SHOPS/DEPARTMENTS

MACHINE SHOP

The machine shop is the source of all major components for the engine assembly

shop. The un-machined crankshaft and camshaft forgings, transmission case

cylinder head and cylinder block castings are brought in the form of raw materials

from the vendors. The cylinder heads and transmission case are aluminum castings

while crankshaft and camshaft are steel forgings.

It has the following lines:

(a) Transmission case line

(b) Cylinder head line

(c) Cylinder block line

(d) Crankshaft line

(e) Camshaft line.

ENGINE ASSEMBLY

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There are four types of engines which are assembled in the Engine Plant

1. FC Engine – Engine with cast iron block

a. M-800

b. Omni

c. Alto

d. Wagon-R

e. Zen Estillo

2. Aluminum Engine – Engine with aluminum block

a. Gypsy

b. SX4

c. Swift (Petrol)

d. Dezire (Petrol)

3. KB Engine (New series of engines with aluminum block)

a. A-Star

b. Ritz

4. Diesel Engine

a. Swift (Diesel)

b. Dezire (Diesel)

c. Ritz (Diesel)

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CHAPTER 5

SW O T ANA L YSIS

SWOTanalysisisanextremelyusefultoolforunderstandinganddecision-makingfor

allsortsofsituationsinbusinessandorganizations.SWOT isan

acronymforStrengths,Weaknesses,Opportunities, and

Threats.TheSWOTanalysisheadingsprovide good frameworkforreviewingstrategy,

positionanddirectionofacompanyor business proposition, or anyotheridea.

FIG NO: 14

Maruti Suzuki is the market leader in India and has an amazing brand equity.

Maruti is known for the service it provides and is synonymous with Maruti 800

– the longest running small car in India. Here is a SWOT of MarutiSuzuki, its

strengths, weaknesses, opportunities and threats.

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Strengths

Maruti Udyog limited (MUL) is in a leadership position in the marketwith a market share of

48.74

Major strength of MUL is having largest network of dealers and after sales service centers in the

country.

Good promotional strategy is adopted by MUL to transfer its thoughts to the people about its

products.

Maruti Suzuki recorded highest number of domestic sales with 9, 66,447 units from 7, and

65,533 units in the previous fiscal. It recently attained the 10million domestic sales mark.

Strong Brand Value and Loyal Customer Base are big strengths for MUL

There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel

efficiency like Maruti Swift, Diesel, and Altoetc.

Alto still beats the small car segment with highest number of sales

MUL is the first automobile company to start second hand vehicle sales through its True-value

entity.

MUL has good market share and hence it’s after sales service is a major revenue contributor.

Weaknesses

Low interior quality inside the cars when compared to quality players like Hyundai and other

new foreign players like Volkswagen, Nissan etc.

Government intervention due to having share in MUL.

Younger generations started getting a great affinity towards new foreign brands

43

The management and the company’s labor unions are not in good terms. The recent strikes of the

employees have slowed down production and in turn affecting sales.

Maruti hasn’t proved itself in SUV segment like other players.

Opportunities

MUL has launched its LPG version of Wagon R and it was a good move simultaneously

MUL can start R&D on electric cars for a much better substitute of the fuel.

Maruti’s cervo 600 has a huge potential in tapping the middle class segment and act as a strong

threat to Nano

New DZire from Maruti will capture the market share and expected to create the same magic as

Maruti Esteem(currently not available)

Export capacity of the company is giving new hopes in American and UK market

Economic growth of the country is constantly increasing and the government is working hard to

increase the GDP to double digit.

Threats

MUL recently faced a decline inmarketshare from its 50.09% to 48.09 % in the previous

year(2011)

Major players like Maruti Suzuki, Hyundai, and Tata has lost itsmarketshare due to many small

players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its

Figo.

44

Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its

respective competitor’s segment

China may give a good competition as they are also planning to enter into Indian car segment

Launch of Hyundai’s H800 may result in the decline of Alto sales

A SWOT analysis provides strategic insight on recommendations and opportunities for

small businesses to map out a strategic plan. As an actionable management tool, the SWOT helps

a small-business owner hone in on the right course of action to leverage the business's unique

characteristics. By turning threats into strengths, and matching strengths with opportunities, you

can make the most of your power in the current marketplace and maximize your chances of

success.

Vision:

Visions of any company are those values on which company works. As the MUL is started by

Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on

the other hand Suzuki’s participation ensures not only need of the profit, but of the need of

maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s

working vision, was to maximize profit and reducing cost by maximizing output and sales hence

MUL declared its Vision as-

“The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's

Wealth; eventually become a pride of India”

Mission:

Mission is the statement of an organization’s purpose, what it want to accomplish in the larger

environment and its goals which are specific, realistic and motivating. Missions are described

over visions and visions demand certain objectives. The main objectives/Missions of MUL are:

45

-Modernization of the Indian Automobile Industry.

-Developing cars faster and selling them for less.

-Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for economic growth.

- Market Penetration, Market Development Similarly Product Development and Diversification.

- Partner relationship management, Value chain, Value delivery network.

GOALS

Building a continuously improving organization adaptable to quick changes

Providing value and satisfaction to the customer

Aligning and fully involving all our employees, suppliers and dealers to face competition

Maximizing Shareholder's value

Being a responsible corporate citizen.

The objectives of Maruti Suzuki then were:

• Modernizations of the Indian Automobile Industry.• Production of fuel-efficient vehicles to conserve scarce resources.• Production of large number of motor vehicles, which was necessary economic

growth.• Customer Obsession• Fast, Flexible and First Mover• Innovation and Creativity• Networking and partnership• To raise sales in Mumbai by 11%

46

• Raise the market share of Maruti Suzuki in the A3 segment• To increase awareness of the quality improvements that are made in the car

To implement this ambitious target from ground-up in India The company plans to make India a global manufacturing hub for Suzuki. The mega strategy would also check the growing competition from traditional rivals

and new global players like Nissan, Volkswagen, Renault and Fiat that have eating

into its pie.

CHAPTER 6

RECOMMENDATIONS

At the end of the Organizational study, I would like to make a few recommendation for the

Maruti Suzuki.

1. Maruti Suzuki has to launch a rash initiative with the help of some management consultancy. It is

leant that the cost incurred by a customer on a car over its entire life cycle can be divided into

three parts.a) Price at point of purchase.b) Cost of fuel used throughout the life of the car.c) To increase its revenue Maruti Suzuki already operates in the first of the two, it should now

aggressively look at the third game plan. The third game plan should be working out a game plan

for possible entry into the finance and non- manufacturing areas like.a) Non-life Insurance business.b) Re-look at its existing Auto-finance business.c) Leasing to co-operative customers.

Non-manufacturing activities such as these will account of 3.9% of its turnover in its coming

financial year.

2) Improvement in the market share in Maruti Suzuki. This can be done by using the Maruti

800 in semi urban and rural areas. Better model of Maruti Suzuki should be implemented to try

47

to convert more chunk of two wheeler buyer’s to Maruti 800,will definitely increase Maruti

Suzuki’s net profit.

3) The price fixation of Maruti Suzuki cars should be made keeping an eye on the price fixed by

its competitors. It should introduce dozen variants with more colors. So that there is at every

price point of Rs. 20,000.It should offer too many options that more than half the cars present in

the segment are Maruti offerings.

SUGGESTIONS

I would like to make a few suggestions for the Maruti Suzuki.

1) Maruti Suzuki needs to introduce new models like the Maruti Suzuki cruse and Ignis in India

and communicate how such cars could match new generation rival feature.

2) Maruti Suzuki should improve its existing service network by setting up a chain of company

owned state-of-art stations across India. The number of service stations at the highways should

also be increased.

3) Maruti Suzuki lacks luxury in its cars. The economy of the India is rising and its purchasing

power.

4)It pays to listen to your employees, literally. Maruti Suzuki India, the country's largest car

maker, could save a handsome Rs 354 crore in FY13 by paying heed to their workers'

suggestions to improve productivity and cut wastage.

5)The target customers should be the teenagers and 40 and above

6) Wagon R needs work on mileage, Engine, seat comfort and the price.

7)Alto is rated good but need to improve its driving comfort.

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8) Swift is a good car, all its features are really good except for the seat comfort or the rear seat

which needs some leg space.

9) The service and spare parts are really good but the accessories available for the Maruti Suzuki

cars don’t look so good. Whole new rage of accessories is needed to be introduced for the Maruti

Suzuki models.

CONCLUSION

The Maruti Suzuki has a huge market and has left no stone unturned to satisfy the customers. It

has models in every Segment of the automobile market.

Maruti Suzuki stands for value as much as it stands for performance.

In spite of rising input costs, the company tries their best to keep prices down. Their running

costs and resale values are Unbeatable too.

Competitive strategy of this company facilitated healthy profit and customer satisfaction and it’s

Recognition as a company which stands for environmental concerns. Nothing matches the

delight their cars deliver. In Fact, customer they don’t buy a Maruti Suzuki, they invest in it.

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CHAPTER 7

BIBLIOGRAPHY

TEXT BOOKS:

1. Principles of marketing: -PHILIP KOTLER

(Himalaya publications)

2. Marketing management: -APPANAIAH AND REDDY

RAMANATH

(Himalaya publications)

MAGAZINES:

1. Outlook Magazine

2. Auto India Magazine

WEBSITES:

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1. www.marutiudyog.com

2. www.indiacars.com

3. www.autoindia.com

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