Maruti Suzuki

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an

automobile manufacturer in India.[9] It is a 56.21% owned subsidiary of the Japanese car
and motorcycle manufacturer Suzuki Motor Corporation.[8] As of January 2017, it had a
market share of 51% of the Indian passenger car market.[10] Maruti Suzuki manufactures
and sells popular cars such as the Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift
Dzire, Baleno and Baleno RS, Omni, Alto 800, Eeco, Ignis, SX4 S-Cross.[11] The company
is headquartered at New Delhi.[3] In May 2015, the company produced its fifteenth
millionth vehicle in India, a Swift Dzire.[12] In 1982, a licence & Joint Venture Agreement
(JVA) was signed between Maruti Udyog Ltd, and Suzuki of Japan. At first, Maruti
Suzuki was mainly an importer of cars. In India's closed market, Maruti received the
right to import 40,000 fully built-up Suzukis in the first two years, and even after that
the early goal was to use only 33% indigenous parts. This upset the local manufacturers
considerably. There were also some concerns that the Indian market was too small to
absorb the comparatively large production planned by Maruti Suzuki, with the
government even considering adjusting the petrol tax and lowering the excise duty in
order to boost sales.[16] Finally, in 1983, the Maruti 800 was released. This 796 cc
hatchback was based on the SS80 Suzuki Alto and was India’s first affordable car. Initial
product plan was 40% saloons, and 60% Maruti Van.[16] Local production commenced in
December 1983.[17] In 1984, the Maruti Van with the same three-cylinder engine as the
800 was released and the installed capacity of the plant in Gurgaon reached 40,000
units.
In 1985, the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, was launched.
In 1986, the original 800 was replaced by an all-new model of the 796 cc
hatchback Suzuki Alto and the 100,000th vehicle was produced by the company.[15][dead
link] In 1987, the company started exporting to the West, when a lot of 500 cars were sent

to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units
per annum.
In 1989, the Maruti 1000 was introduced and the 970 cc, three-box was India’s first
contemporary sedan. By 1991, 65 per cent of the components, for all vehicles produced,
were indigenized. After liberalization of the Indian economy in 1991, Suzuki increased
its stake in Maruti to 50 per cent, making the company a 50-50 JV with the Government
of India the other stake holder.
In 1993, the Zen, a 993 cc, hatchback was launched and in 1994 the 1298 cc Esteem was
introduced. Maruti produced its 1 millionth vehicle since the commencement of
production in 1994. Maruti's second plant was opened with annual capacity reaching
200,000 units. Maruti launched a 24-hour emergency on-road vehicle service. In 1998,
the new Maruti 800 was released, the first change in design since 1986. Zen D, a 1527 cc
diesel hatchback and Maruti's first diesel vehicle and a redesigned Omni were
introduced. In 1999, the 1.6 litre Maruti Baleno three-box saloon and Wagon R were
also launched.
In 2000, Maruti became the first car company in India to launch a Call Center for
internal and customer services. The new Alto model was released. In 2001, Maruti True
Value, selling and buying used cars was launched. In October of the same year
the Maruti Versa was launched. In 2002, Esteem Diesel was introduced. Two new
subsidiaries were also started: Maruti Insurance Distributor Services and Maruti
Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to
54.2 per cent.
In 2003, the new Suzuki Grand Vitara XL-7 was introduced while the Zen and the
Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built
and they entered into a partnership with the State Bank of India. Maruti Udyog Ltd was
Listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In 2004,
the Altobecame India's best selling car overtaking the Maruti 800 after nearly two
decades. The five-seater Versa 5-seater, a new variant, was created while the Esteem was
re-launched. Maruti Udyog closed the financial year 2003-04 with an annual sale of
472,122 units, the highest ever since the company began operations and the fiftieth lakh
(5 millionth) car rolled out in April 2005. The 1.3 litre Suzuki Swift five-door hatchback
was introduced in 2005.[18]
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles
India", to build two new manufacturing plants, one for vehicles and one for
engines.[18] Cleaner cars were also introduced, with several new models meeting the new
"Bharat Stage III" standards.[18] In February 2012, Maruti Suzuki sold its ten millionth
vehicle in India.[17] In July 2014 it had a market share of more 45 %. In 2018 Maruti
Suzuki sold its twenty millionth vehicle in India and Maruti has grabbed 50% of the
total market share in India.

History
Maruti was established in February 1981 with production starting in 1983 with
the Maruti 800, based on the Suzuki Alto kei car. As of May 2007, the Government of
India, through Ministry of Disinvestment,[13] sold its complete share to Indian financial
institutions and no longer has any stake in Maruti Udyog.[14]

PROFILE OF THE MARUTI SUZUKI

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a
subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of
the Indian car market for over two and a half decades. The company has two
manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India.
Both the facilities have a combined capability to produce over a 1.5 million (1,500,000)
vehicles annually. The company plans to expand its manufacturing capacity to 1.75
million by 2013.

The Company offers 15 brands and over 150 variants ranging from people's car Maruti
800 to the latest Life Utility Vehicle, Ertiga. The portfolio includes Maruti 800, Alto,
Alto K10, A-star, Estilo, WagonR, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Kizashi,
Grand Vitara, Gypsy and Ertiga. In an environment friendly initiative, in August 2010
Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle
segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. With this Maruti Suzuki
became the first company in India to introduce factory fitted CNG vehicles.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the which at the time
was the only modern car available in India, its only competitors- the and were both
around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced
over 5 Million vehicles. Maruti Suzukis are sold in India and various several other
countries, depending upon export orders. Models similar to those made by Maruti in
India, albeit not assembled or fully manufactured in India or Japan are sold at pak
Suzuki Corporation.

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 indigenise gear boxes then Maruti Suzuki would have been able to manufacture all
the models without the technical assistance from Suzuki. Till today the issue of
localization of gear boxes is highlighted in the presents.

In 2009-10, the company sold a record 10,18,365 units including 1,47,575 units which
we exported primarily to Europe, the remaining 870,790 sold in India. In the third
quarter of 2009-2010, the company sold 258, 026 units. Thus, in March 2010, Maruti
Suzuki had a India market share of 53.3 per cent of the Indian passenger car market of
16,33,752 passenger car units.

In India’s automobile market, small is beautiful. For decades, the country’s largest
carmaker, Maruti Suzuki, has used India’s affinity for small-sized cars to its advantage.

Now, as Asia’s third largest economy looks to bring in stricter safety and emission
regulations, Maruti Suzuki’s small cars—and petrol engines—can help the
company remain ahead of the pack.

“We believe small petrol cars are likely to see the least cost impact over the next five
years, while medium and heavy commercial vehicles (MHCVs) and two-wheelers may
have a much higher impact,” brokerage firm Nomura said in a report released on April
13. “On a relative basis, MSIL (Maruti Suzuki India Limited) is likely to see a much
lower impact compared to Ashok Leyland (AL), M&M and Hero Motocorp (HMCL).”

In January, the Narendra Modi government announced stricter auto emission norms,
proposing the advancement of the tougher Euro-VIby a year to April 2020. This means
automakers have to tweak their product plans, while also investing over Rs50,000
crore ($7.5 billion) in new technologies, eventually hiking vehicle prices.

Nomura estimates the cost impact of the new norms to be between Rs10,000 ($150) and
Rs15,000 ($225) for petrol cars, and a steep Rs50,000 ($751) for diesel vehicles. “MSIL
has the highest exposure to small petrol cars and is, thus, best positioned relatively, in
our view,” Nomura’s report said. Maruti’s most popular small petrol cars include the
Alto, Wagon R, Celerio, Swift and Baleno.

“Certainly, Maruti has an advantage,” Abdul Majeed, a partner at consultancy firm PwC
said. “Small petrol cars will be driving sales in the coming years when they new norms
kick in.”
Moreover, Maruti also stands to gain from India’s gradual move towards CNG, away
from the expensive and polluting diesel. It is the only company that currently makes
vehicles with factory-fitted CNG engines.

Maruti already controls about 50% of the Indian passenger car market. In 2015, it
reported revenue of Rs49,970 crore ($7.6 billion) with a net profit of Rs3,711 crore
($566.9 million). Set up in 1981 as a joint venture between the Indian government and
Suzuki Motor Corporation, the company started by producing the iconic Maruti 800, a
small petrol car which eventually went on to sell more than two million units.

Since then, Maruti has consistently focused on small petrol cars with impressive mileage
and inexpensive servicing. One example is the 800cc Maruti Alto, which has sold more
than three million units so far.

Yet, despite its past success, Maruti will be going up against both domestic
and international carmakers who are actively scaling up their small car production in
India. Over the last year, Tata Motors launched two models—the Tiago and Bolt—
while global players, including Renault, Ford, and Volkswagen, have also launched new
small cars.

Products

Current models[edit]

Model Launched Category

Omni 1984-present Minivan

Gypsy King 1985-present Mini SUV

WagonR 1999-present Hatchback

Swift 2005-present Hatchback

DZire 2008-present Sedan

Eeco 2009-present Minivan

 Alto K10 2010-present Hatchback

Ertiga 2012-present Mini MPV

Alto 800 2012-present Hatchback

Celerio 2014-present Hatchback

Ciaz 2014-present Sedan

Baleno 2015-present Hatchback

S-Cross 2015-present Mini SUV

Vitara Brezza 2016-present Mini SUV

Ignis 2017-present Hatchback

Discontinued models[edit]

Model Launched Discontinued Category

800 1983 2010 Hatchback

Gypsy E 1985 2000 Mini SUV

1000 1990 2000 Sedan

Zen 1993 2000 Hatchback

Esteem 1994 2010 Sedan

Baleno 1999 2007 Sedan

Alto 2000 2012 Hatchback

Versa 2001 2010 Minivan

Grand Vitara XL7 2003 2007 Mini SUV

Grand Vitara 2007 2015 Mini SUV

Zen Estilo 2007 2013 Hatchback

A-star 2008 2014 Hatchback

SX4 2008 2014 Sedan

Ritz 2008 2016 Hatchback

Kizashi 2011 2014 Sedan

Sales and service network[edit]

Maruti Suzuki has 1,820 sales outlets across 1,471 cities in India. The company aims to
double its sales network to 4,000 outlets by 2020.[60]It has 3,145 service stations across
1,506 cities throughout India.[61] Maruti’s dealership network is larger than that of
Hyundai, Mahindra, Honda, Tata, Toyota and Ford combined.[62] 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.[63][64]
NEXA[edit]
In 2015 Maruti Suzuki launched NEXA, a new dealership format for its premium
cars.[65]
Maruti currently sells the Baleno, Baleno RS, S-Cross, Ciaz and Ignis[66] through NEXA
outlets. S-Cross was the first car to be sold through NEXA outlets. Several new models
will be added to both channels as part of the Company’s medium term goal of 2 million
annual sales by 2020.[67]

Maruti Suzuki Is World’s Ninth Most Valuable Brand

For the first time, an Indian car manufacturer has been listed in the global top 10 brand
chart in the automotive sector. India's largest carmaker, Maruti Suzuki has been rated
as the ninth most valuable brand in the world.