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History of Maruti In India It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in New Delhi. Maruti Suzuki India Limited (Hindi: मममममम ममममममम मममममम ममममममम) a partial subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of

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History of Maruti In India

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

• Maruti Suzuki India Limited (Hindi: मा�रुति� सु�ज़ूकी� इं�ति�या� लि�मिमाटे��) a partial subsidiary of Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.

• Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800.

• The only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point

• 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.

History of Maruti In India

Vision & Core Values• The Leader in Automobile Industry, Creating

Customer Delight and Share holder’s wealth; A pride of India

• Maruti Suzuki has been the leader of the Indian car market for over two decades.

• 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

• It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.

Milestones

• Manufactured locally• 800 (Launched 1983)• Omni (Launched 1984)• Gypsy (Launched 1985)• WagonR (Launched 2002)• Alto (Launched 2000)• Swift (Launched 2005)• Estilo (Launched 2009)• SX4 (Launched 2007)• Swift DZire (Launched 2008)• A-star (Launched 2008)• Ritz (Launched 2009)• Eeco (Launched 2010)• Alto K10(Launched 2010)

Milestones

• Imported

• Suzuki Grand Vitara• Grand Vitara (Launched 2007)• Kizashi (Launched 2011)

• Discontinued car models• 1000 (1990–1994)• Zen (1993–2006)• Esteem (1994–2008)• Baleno (1999–2007)• Zen Estilo (2006–2009)• Versa (2001–2010)• Grand Vitara XL7 (2003–2007)

• The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far.

• 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.

• In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year

• In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market. 

•Maruti Suzuki's revenue has grown consistently over the years.     (Rs. in Million) YearNet SalesYearNet Sales

Year Net Sales Year Net Sales

2005-06 1,20,034 2006-07 1,45,922

2007-08 1,78,603 2008-09 2,03,583

2009-10 3,01,198 2010-11 3,61,282

• 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.

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 Authorised Service Stations) in 1,395 towns and cities throughout India[15]. 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 TrueValue

• Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341 Maruti True Value outlets.

• Maruti Suzuki sold over 2,35,000 Alto cars in the 2009-10 fiscal year making Alto, India’s bestselling car again. After replacing Maruti Suzuki 800 as India’s bestselling car in 2004, Alto has retained its no 1 spot for the sixth consecutive year.

• In 2010-11 Maruti Suzuki completed the manufacture of cumulative 1 crore (10 million) vehicles. The first car was rolled out in December 1983. Of the 10 million, five million units have come in the last six years.

• For the first time, an Indian car manufacturer has won the award for selling the most number of small car in a calendar year. Maruti Suzuki Alto overtook VW Golf (Germany) and Fiat Uno and VW Gol (Brazil) in terms of number of units sold in 2010.

In 2010, MSI managed to sell 3 lakh units of Alto, a 25% hike from last year’s figure. Maruti stated that the launch of Maruti Alto K10 in mid 2010 is the reason behind this exponential rise in sales. Mr Rao, Executive Officer, MSI, stated that, “Maruti Alto K10 is the major reason behind the remarkable growth achieved by the company in 2010 as the car was efficient enough to attract the buyers.”

• Alto was first launched in India in 2006. Powered by a 800 cc engine, Alto gives a mileage of 14.6 kmpl in city and 18.9 kmpl on highways. A more powerful version of Alto, 1000cc Alto K10 was launched by MSI in mid 2010 which gives mileage of 15 kmpl in city and 20.2 kmpl on highways.

So the decision to shut down M-800 production is only based on sales figures rather then the company's stated explanation of not been able to comply with Euro 4 norms for M 800 economically as the reason of removing M800 from the production line.

• The “aam admi ki car”, as it is popularly known as, was different from its competitors (of 1980s) in the sense that it was more fuel efficient, did not burn a hole in the pocket and changed the attribute of owning a car from being considered as a “luxury” to “convenient mode of transport for a common man”.

• The company was able to achieve profits of 17 million (without tax obligations) in its initial years. Later, the legendary modern car Maruti 800 went on to become the largest-selling car in India.

• After ruling the Indian automobile industry for more than 25 years, Maruti is now facing severe competition from not only domestic but also international competitors (post liberalisation). Things have now undergone a sea change in these last 25 years. Maruti 800 which led to the ladder of success in 1980s has now become a reason to worry. It is the only car in the Maruti basket of passenger cars, whose sales has dropped from 2009 to 2010 by 29.8%

• the company announced to scale down its production in Feb 2009 and then later in the same year, it decided to phase out Maruti 800 completely seeing its poor performance in the market. Maruti 800 as a product, has already reached its decline stage in the Product Life Cycle (PLC).

• In such a situation, we feel, Maruti must have considered following 3 options :

• 1. Maintain with the product in the hopes that competitors will soon vanish in near future.

• 2. Harvest the product.

• 3. Discontinue the product

• The first alternative could have been followed by the company, however the competitors will not vanish, in fact it will increase seeing India growth potential.

• Harvesting by adding new feature, new look etc. could have been another good alternative for the company from the commercial point of view. But the company did not choose this option but in reality followed the last alternative and has removed the product from the production line.

• STRENGTH: -

• High acceptability of Maruti Suzuki's cars in Indian context. This claim is further strengthened by the fact that Maruti Suzuki is the market leader in automobile sector in India. Maruti 800 used to be the bestselling car in India until 2004. Even Maruti Alto’s sales has been picking up very fast since it’s introduction. Maruti Suzuki sold over 2,35,000 Alto cars in the 2009-10 fiscal year making Alto, the bestselling car again in India. With a new K-series engine and company fitted CNG fuel injection kit, the car is going to appeal to a larger set of audiences.

• 2767 Quality Service Stations: - The Company provides the maintenance services to their valued customers at an ease with the help of 2767 quality service stations spread across the nation proliferated in 1314 cities.

• The Quality Advantage: - It has been observed that the owners of cars of Maruti brand face lesser problems in their vehicles with respect to the other players prevailing in the market. Source – J.D. Power IQS Study 2004.

• The Low Cost Maintenance Advantage:- For the starters, the Maruti cars are very much affordable with respect to its competitors and from the prospects of the maintenance the spare parts are also very cheap, which helps in making the maintenance cost of the Maruti cars affordable for its valued customers. This is one of the reasons where Maruti Suzuki shines.

• Technological Advantage: - The firm has introduced one of it’s finest engines (K-series) almost across the entire range of its cars, which gives the Maruti cars an edge over other cars present in the market

• WEAKNESS: -

• Company is not able to meet its current demand of cars timely. There is often long wait for current Maruti Suzuki car buyers. According to Car Trade India, automaker Maruti India Limited still remains the uncrowned king of the Indian domestic market and its models like Maruti Swift, Swift Dzire, EECO continue to have long waiting periods. And these cars are some of the 'high contribution' vehicles for Maruti Suzuki India Ltd. The buyers in this scenario can shift to other car manufactures who are not only providing timely delivery of cars but are offering cars and prices which are quite comparable to that of Maruti Suzuki's.

• OPPORTUNITY: -

• Consumer buying power and aspirations are on a rise in India. Therefore, there is a rise in demand of more expensive cars in Maruti Suzuki's kitty like Ritz, Swift etc. This can be seen from the figures 1&3 which shows that sales in A2 segment has increased by almost 25% in 2008-09 and 2009-10. And A2 segment occupies major chunk i.e. 70.2% of total sales by Maruti Suzuki. This segment is a higher contribution segment for Maruti Suzuki India Ltd as compared to A segment.

• Maruti Suzuki should concentrate on MUV and C Segment which are on a rise in India as shown in Figure-2. MUV segment increased by 116.1% and C segment increased by 50.8% in FY 2010. Apart from high growth, concentration on these segment will also offer higher contribution for the company.

• THREAT: -

• Tata Nano pose a great amount of challenge to Maruti cars as a lot of customers especially in India are looking for price affordability. And Tata Nano happens to be world's least expensive car and plus it is Bharat IV ready.

• Segment B, C and MUV are getting crowded day by day. Maruti Suzuki has a minimum presence in this segment. If Maruti Suzuki doesn't start introducing cars in these segment, it will soon lose this segment and future entry in this segment will become difficult as other companies will pose huge barriers for entry in this segment for Maruti. All Maruti would be left with would be segment A which offers low revenue contribution.

• Nissan-Bajaj-Renault will bring out their ULC (Ultra Low Cost) car in 2012. So further a new competitor is planning to enter in this segment.

• SWOT Analysis CONCLUSION: -

• Thus after analyzing the internal (Strength and Weakness) and external (Opportunity and Threat) environment of the company, it would be advisable for ‘Maruti Suzuki’ to not launch another "people car". The reasons for such a decision are:

• 1. Maruti’s most successful product ‘Maruti 800’ was India’s first “people’s car” and it had high brand value and emotional connect with Indian consumers. Its power can be judged from the fact that it was Maruti 800 that redefined the meaning of personal transport in a country of a billion people, and hence, they had a powerful brand. After ringing the cash register of the company for almost two decades, still the company decided to seize its production. Reasons being as we have seen above are:-

• · Dropping sales

• · High competition from domestic and international players

• · Lack of company’s efforts to fully utilize the brand and change the marketing strategy accordingly.

• · Inadequate production facility to meet current demand.

• 2. Efforts for launching a new car: Both time and efforts are required for launching a new car for competing against Nano. Instead of focusing on launching another “people’s car”, focus can be paid on other segments cars and their marketing strategies.

• In the end, we would like to say that the unique feature that separated 800 from the rest of the cars in A1 segment was its temperament on the Indian roads. Undoubtedly the 800 lacked glitz and flamboyance as that of a sports car but, it was and is and will always remain a common man’s dream to luxury.