1) INTRODUCION:

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of
Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for nearly
50 percent of the domestic car market. Maruti Udyog Limited was incorporated in 1981 under the
provisions of Indian Companies Act 1956 and the government of India selected Suzuki Motor
Corporation as the joint venture partner for the company.

In 1982 a Joint Venture was signed between Government of India and Suzuki Motor
Corporation. It was in 1983 that the India’s first affordable car, Maruti 800, a 796-cc hatch back was
launched as the company went into production in a record time of 13 month. Now, nearly an half
the number of cars sold in India wear a Maruti Suzuki badge.

2) SWOT ANALYSIS OF MARUTI SUZUKI:

2.1) Strengths:
i) Ever since it was incorporated, Maruti Suzuki has been number one in terms of
percentage in market share.

ii) Maruti Suzuki has the most widespread dealer’s network and after sales service
centres in the country.

iii) The ideologies of Maruti Suzuki engineers match with the mindset of the
common Indian people.

iv) Maruti Suzuki has a very good brand value and has a very loyal customer base.

v) Maruti Suzuki is the first automobile company to start second hand vehicle sales
through its true value entity.

vi) Maruti Suzuki has different revenue streams like Maruti finance, Maruti
Insurance and Maruti driving schools

vii) Over 40 thousand people are employed in Maruti Suzuki.

Viii) Huge product portfolio and successful new launches.

 2.2) Weakness:
i) Inability to penetrate into the international market.

ii) Employee management, strikes, worker wage problems have affected Maruti's
brand image in the past.

iii) Low interior quality inside the cars when compared to quality players like
Hyundai and other new foreign players like Volkswagen, Nissan etc.

iv) Less market command over premium vehicles and in SUV segment.

2.3) Opportunities:
i) Maruti can target to tapp emerging markets across the world and become a global
brand.

ii) Developing hybrid cars and fuel-efficient cars for the future can be an opportunity
for Maruti Suzuki.

iii) India is the fastest growing automobile market and has got increasing purchasing
power.

iv) The economic situation in Indian market is improving.

2.4) Threats:
i) Foreign players setting manufacturing facilities in India.

ii) Ever increasing fuel prices across the globe.

iii) Substitute modes of public transport like buses, metro trains etc.

iv) Younger generations started getting a great affinity towards new foreign brands.

3) PRODUCTS AND SERVICES:

3.1) products offered by Maruti Suzuki:

Currently, Maruti Suzuki is manufacturing and selling a total of 15 cars in the form of seven
hatchbacks [Alto, Wagon R, Celerio, Ritz, Swift, Baleno and Ignis], Two sedans [DZire and the Ciaz]
and six utility vehicles [Gypsy, Ertiga, Vitara Brezza, S-Cross, Omni and The Eeco].

Maruti Suzuki had discontinued the sales of 17 cars in Indian market due to various reasons.
Current Models available for sale:
S.no MODEL Launched Category
1 Omni 1984 Mini van
2 WagonR 1999 Hatchback
3 Swift 2005 Hatchback
4 EECO 2009 Mini Van
5 Dzire 2008 Sedan
6 Alto K10 2010 Hatchback
7 Alto 800 2012 Hatchback
8 Ertiga 2012 Mini MPV
9 Celerio 2014 Hatchback
10 Ciaz 2014 Sedan
11 Baleno 2015 Hatchback
12 S-cross 2015 Mini SUV
13 Vitara brezza 2016 Mini SUV
14 Ignis 2017 Hatchback
15 CelerioX 2017 Hatchback

Discontinued Models:

S.no MODEL Launched Discontinued Category

1 800 1983 2010 Hatchback
2 Gypsy-E 1985 2000 Mini SUV
3 Gypsy King 1985 2018 Mini SUV
4 1000 1990 2000 Sedan
5 Zen 1993 2003 Hatchback
6 Esteem 1994 2010 Sedan
7 Baleno 1999 2007 Sedan
8 Alto 2000 2012 Hatchback
9 Versa 2001 2010 Mini van
10 Grand Vitara XL7 2003 2007 Mini SUV
11 Grand Vitara 2007 2015 Mini SUV
12 Zen Estillo 2007 2013 Hatchback
13 A-Star 2008 2014 Hatchback
14 Swift DZire 2008 2017 Sedan
15 Ritz 2008 2016 Hatchback
16 SX-4 2008 2014 Sedan
17 Kizashi 2011 2014 Sedan
 3.2) services offered by Maruti Suzuki:

3.2.1) After sales Services:

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.It has 3,145 service stations across 1,506 cities throughout
India. Maruti's dealership network is larger than that of Hyundai, Mahindra, Honda, Tata, Toyota and Ford
combined. 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.

3.2.2) NEXA:

Launched in 2015, Nexa is the platform through which Maruti Suzuki has been
selling its premium range of cars. Maruti currently sells the Baleno, Baleno RS, S-Cross, Ciaz and Ignis through
the new NEXA outlets. S-Cross was the first car to be sold through NEXA outlets. NEXA is Maruti Suzuki's
pioneering initiative to create a new format of premium automotive retail. At launch, nearly 1000 Relationship
Managers have been recruited and trained; Now, the number of Relationship Managers has gone up by many
folds. Many of them are being hired from sectors like aviation, hospitality and financial services, expanding the
talent pool of the automobile sector.

3.2.3) Maruti Insurance:

Maruti launched its Insurance service in the year 2002. Maruti provides vehicle
insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India
Assurance and Royal Sundaram. This service was set up by the company with the inception of two subsidiaries
Maruti Insurance Distributors Services Pvt Ltd and Maruti Insurance Brokers Pvt Limited.

3.2.4) Maruti Finance:

With an intention to promote the bottom-line growth, Maruti launched Maruti
Finance in January 2002. Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with
City Group and GE countrywide respectively to assist its client in securing loan. For this, Maruti tied up with
ABN Amro bank, HDFC bank, ICICI Bank, Kotak Mahindra, Standard Chartered bank and Sundaram Finance to
start this venture including its strategic partners in car finance. In March 2003, Maruti entered into a strategic
partnership with State Bank of India.

3.2.5) Maruti True Value:

With an intention to not only generate incomes for dealers but to also promote sale
of new Maruti cars by offering to buy old cars at reasonable prices and selling a new car in exchange, Maruti
Suzuki launched a subsidiary, True Value. Under True Value, the seller has the option to be paid in
cash/cheque, or get a True Value car in exchange for a brand new Maruti Suzuki car in exchange. As a mark of
confidence, and to promote reassurance to customers, every vehicle bought under Maruti True Value is
inspected and certified by Maruti Engineers and the car carries a one-year warranty and three free services.
 3.2.6) Maruti 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 authorized service stations throughout India.

4) Manufacturing Facilities of Maruti Suzuki:

Maruti Suzuki has achieved its goal because of its unbelievable Manufacturing excellence.
With an object to fulfil the demand of market, today Maruti Suzuki’s plants are comparable with the
best in the world in terms of Quality, Productivity and Operational efficiency. Maruti Suzuki has
three state-of-the art manufacturing facilities in India. Both manufacturing facilities have a combined
production capacity of 30 lakh vehicles annually. Maruti Suzuki has 3 manufacturing facilities in
Gurgaon, Manesar and in Gujarat.

i) The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is
spread over 300 acres (1.2 km2). The Gurgaon facilities also manufacture the all new K-Series along
with Alto 800, WagonR, Ertiga, S-Cross, Vitara Brezza, Ignis and Eeco.

ii) The Manesar manufacturing plant was inaugurated in February 2007 and is spread over
600 acres (2.4 km2). The Manesar Plant produces the Alto 800, Alto K10, Swift, Ciaz, Baleno, Baleno
RS and Celerio. On 25 June 2012, Haryana State Industries and Infrastructure Development
Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land
acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the
amount would lead to further proceedings and vacating the enhanced land acquisition.

iii) The Gujarat manufacturing plant became operational in February 2017. The plant current
capacity is about 250,000 units per year. But with new investments Maruti Suzuki has plan to take it
to 450,000 units per year.

5) Rival Company- Hyundai motor India:

Hyundai Motor India Ltd is a wholly owned subsidiary of the Hyundai Motor
Company headquartered in South Korea. It is the second largest automobile manufacturer with
16.2% market share as of February 2019 and 5.5 billion USD turn-over in India.

When Hyundai Motor Company entered the Indian Automobile Market in 1996 the Hyundai
brand was almost unknown throughout India. During the entry of Hyundai in 1996, there were only
five major automobile manufacturers in India, i.e. Maruti, Hindustan, Premier, Tata and Mahindra.

For more than a decade after Hyundai arrived, Maruti Suzuki had a near monopoly over the
passenger cars segment. But soon Hyundai came into the competition and is now Maruti Suzuki’s
number one rival in the passenger car segment. This rivalry has been going on for a long tiyme now
and both firms have been pretty aggressive in their approaches towards the market. There are a
number of similarities between Hyundai and Maruti Suzuki. Firstly, both are subsidiaries of
companies based in Southeast Asia, which is one reason why they have an amazing understanding of
market conditions. Secondly, both companies generate high revenues from their respective models
in the hatchback segment and Lastly, Maruti Suzuki and Hyundai have tremendous brand values in
the country and are trusted by consumers. Due to all these reasons, many analysts have tried to
compare models from the two brands. Both Hyundai and Maruti Suzuki, have a terrific presence in
the hatchback segment. Models produced by these manufacturers are some of the most successful
in terms of sales, popularity and critical acclaim.

Maruti Suzuki is far ahead of its fiercest rival as far as the hatchback segment is concerned.
However, when it comes to mid-sized and executive sedan segments, Hyundai enjoys a slight edge
over its counterpart due to its diverse portfolio.

6) Timeline of Maruti Suzuki and its affiliation with Suzuki:

 In the year February 1981, Maruti Udyog Limited was incorporated under the provisions of
THE INDIAN COMPANIES ACT, 1956. The major objectives of Maruti Udyog were to
modernize the Indian automobile industry, to produce fuel-efficient cars and mass number
of vehicles. The company was formed as a government company, with Suzuki as a minor
partner, to make people’s car for middle class India.
 In 1982, a license and 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 Suzuki 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.
 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. Local production commenced in December 1983.
 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.
 In the year 1987, the company forayed into the foreign market by exporting first lot of 500
cars to Hungary.
 In the year 1990, the company launched India’s first three box car, sedan i.e Maruti 1000.
 In the year 1992, Suzuki Motor Corporation, Japan increased their stake in the company to
50 percent.
 In the year 1993, the company introduced the Maruti Zen
 In 1994 the company launched Maruti Esteem in the market.
 In 1995, the company commenced their second plant.
 In the year 1997, the company started Maruti Service Master as model workshop in India to
look after sales services.
 In the year 1999, the third plant with new press, paint and assembly shops became
operational.
 In 2000, Maruti launched Maruti alto in the Indian market. In the same year i.e. the company
launched a call centre. This was the first time a car company had ever launched a call centre
in India. In this year, Maruti set up a website for its Wagon-R car, introduced a new model of
Zen, got the IRTE National award for its safety initiative, traffic management and
environment protection, launched the Baleno and the Wagon-R with electric power steering.
 In 2001 Maruti introduced its first CNG (Compressed Natural Gas) car. In this same year,
Maruti invested 550 crore rupees in Manufacturing cars.
 In the year 2002, Maruti launched Maruti Finance to offer financial services like extended
warranty and finance for car insurance and Suzuki Motor Corporation increased their stake
in the company to 54.2 percent. In the same year the company found new business segment
i.e Maruti True Value for Sales, Purchase and trade of pre-owned cars in India.
 In the year 2005, the company launched the first world strategic model from Suzuki Motor
Corporation ‘Swift’ in India.
 In the year 2006, the company launched Wagon R-Duo with LPG (Liquefied Petroleum Gas)
and also the new Zen Estillo with value added features in it. During the year 2006-07, the
company commenced operations in the new car plant and the diesel engine facility at
Manesar, Haryana. In November 2006, the company inaugurated a new institute of Driving
Training & Research (IDTR), which was set up as a collaborative project with Delhi
government at Sarai Kale Khan in South Delhi. 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. Cleaner cars were also introduced, with several new models
meeting the new "Bharat Stage III" standards.
 During the year 2007-08, the company signed an agreement with the Adani group for
exporting 2,00,000 units annually through the Mundra Port in Gujrat. The company launched
Swift-Diesel and SX4 a luxury sedan with tag line ‘Men Are Back’ during the year. In July
2007, the company launched the new Grand Vitara, a stylish, muscular and five-seater in the
MUV (Multi Utility Vehicle) segment. The company changed its name from Maruti Udyog
Limited to Maruti Suzuki India Limited with effect from September 17, 2007. During the year
2007, the company entered into a joint venture agreement with Magneti Marelli Power train
SPA and formed Magneti Marelli Power train India Pvt Ltd for manufacturing Electric control
units. Maruti also entered into another joint venture agreement with Futuba Industrial
Co.Ltd and formed FMI Automotive Components Ltd for manufacturing exhaust systems
components. During the year, the company made pact with Shriram City union finance Ltd, a
part of Shriram Group, Chennai, to offer easy, transparent and hassle-free car finance to
their customers, particularly in semi urban and rural markets.
 During the year 2008-09, the company launched a new A2 segment car, branded the A-Star
in India & in Europe as the new Alto. In June 2008, the company launched Maruti 800 Duo, a
dual fuel (LPG + Petrol) car.
 In April 2009, the company revealed a new K series engine at Gurgaon Plant.
 In 2010, Maruti Suzuki launched its EECO and Alto K10 (K Series vehicle).
  In the year 2011, Maruti Suzuki launched its luxury Sedan Kizashi and SX4 diesel model. In
the month of March 2011, the company produced 10 million cars.
 In 2012 Maruti Suzuki India Limited has launched its seven-seater spacious & comfortable
MPV Ertiga to cater the needs of larger family size consumers. In July 2012, Maruti Suzuki
sold its ten millionth vehicle in India.
 In 2013 the company has launched the all new Alto 800. The main targets of Alto 800 are
customers considering the purchase of first cars like young customers i.e. Youths.
 In July 2014 it had a market share of more 45%. Maruti Suzuki is now looking to shift its
current manufacturing facility located in the downtown Gurgaon as apparently it is short of
space and logistics. It is hunting for a huge 700 acres of plot of land. Maruti launched Nexa
platform to sell it premium range of cars. Maruti Suzuki also launched India’s first segment
crossover S-cross.
 In 2015 Maruti launched two new cars Ciaz and Baleno
 In 2016 launched Vitara Brezza targeting urban Young customers. For the first time a “Made
in India” vehicle was exported to japan by Maruti Suzuki.
 In 2017 It launched two new hatchbacks in Indian market the Maruti CelerioX and Ignis.

7) Annual sales figures of 2018 Maruti Suzuki:

[source: Autocar India]

 Maruti Suzuki has registered its highest-ever domestic sales in the financial year ending
2017-18 (Apr-Mar). The automaker announced record volumes of 17,79,574 units, up 13.4
percent year-on-year from 1,568,603 in the previous fiscal.
 Of the total, domestic passenger vehicles sales were at 16,43,467 units, a growth of 13.8
percent from the 14,43,641 sold last fiscal. In March 2018, Maruti sold 1,47,170 units, up
15.3 percent year-on-year. Growth was achieved on the back of high demand for models
such as Vitara Brezza, DZire and Baleno, among others. Going ahead, the all-new Swift –
which has received an upbeat response of over 1,00,000 bookings, so far – is expected to
further bolster Maruti's volumes.
 The entry-level Alto and Wagon R together sold 4,27,183 units, up 3.2 percent (FY2017:
4,13,981). In March, they sold 37,511 units, up 21.1 percent. The Alto, which has been the
best-selling car in India for 14 consecutive years, recently entered a milestone of its own
when it surpassed sales of 3.5 million.
 The quintet of compact cars (Swift, Baleno, Ignis, Celerio and DZire) has seen accelerated
sales in recent months – particularly after arrival of the new third-generation Swift following
its launch at the 2018 Auto Expo. For the fiscal, this lot sold 7,48,475 units – a robust 28
percent growth (FY2017: 584,850) – and in March 2018, they sold 68,885 units, up 13
percent.
 Another growth driver for Maruti (and a massive one, at that) is its line of utility vehicles in
the form of the Vitara Brezza, S-Cross, Ertiga and Gypsy. Here, the Vitara Brezza leads the
charge; a long-time leader in the Top 5 UVs. This quartet of UVs sold 2,53,759 units in
 FY2018, which marks sterling growth of 29.6 percent (FY2017: 195,741) and 22,764 units in
March, up 24.3 percent.
 However, sales of the Ciaz premium sedan slid 8.6 percent to 58,913 units during the fiscal.
Volumes were down 12.1 percent to 4,321 units in March. The new Hyundai Verna and the
Honda City are giving it a tough time; and the fight is only set to become fiercer once Toyota
introduces its Yaris sedan in India in May 2018.
 Interestingly, on the cumulative sales front, Maruti's total sales are just 2,20,426 units shy of
the two million mark – which is the number of new cars Maruti Suzuki has said it plans to sell
by 2020. From the looks of it, that milestone could be attained before 2020 arrives.

Pic and Data credits: Autocar India

8) Annual sales comparison with other Auto mobile manufacturers:

[source: auto.economictimes.indiatimes.com]

Total Passenger vehicles sales recorded single digit growth of 5.32 per cent at 33,93,705 units when
compared to 32,22,220 units in the calendar year 2017.

“Auto sector has witnessed the lowest quarterly performance across all segments and lowest
monthly sales till now in FY19. However, the year to date numbers for FY 19 has shown a growth of
9.6 per cent and calendar year 2018 has ended with a 13 per cent growth in the face of growth in
2W and CV segment and the performance of PV in the first half or first two quarters. Year-end
discounts have helped show some recovery despite an overall de-growth in December 2018. A little
bit of easing of funding and favourable fuel price levels can improve sentiments in the first quarter of
2019 or Q4 of FY 2019.” said Sridhar V, Partner, Grant Thornton India LLP

RANK OEM CY2018 CY2017 %Growth

1 Maruti Suzuki India 1731450 16,02,522 8.05

2 Hyundai Motor India 550002 5,27,319 4.30

3 Mahindra & Mahindra 249301 2,42,386 2.85

4 Tata Motors 237217 1,91,107 24.13

5 Honda Cars India 174859 1,78,755 -2.18

6 Toyota KIRLOSKAR 151480 1,39,566 8.54

7 Ford India 97804 88,184 10.91

8 Renault India 82368 1,12,489 -26.78

9 Nissan Motor India 41586 53,390 -22.11

10 Volkswagen India 37018 47,749 -22.47

11 FCA India 18408 15,837 16.23

12 Skoda Auto India 16692 17,438 -4.28

13 *Others 5520 5,478 0.77

Total 3393705 32,22,220 5.32

Data credits: auto.economictimes.indiatimes.com

9) EXPORTS:
[source: economictimes.indiatimes.com; marutisuzuki.com; auto.ndtv.com]

 Maruti Suzuki India has become the largest passenger cars exporter from India in the first
half of the FYI 16-17, dethroning Hyundai Motor India Ltd which has now been pushed to the
fourth spot behind Volkswagen and General Motors.
  Today, Maruti Suzuki exports cars to over 125 countries and the total number of exports in
the financial year 17-18 stands at 1,26,074 units. Maruti Suzuki, which has been operating at
almost 100% capacity, exports have remained 1.2-1.25 lakh units a year.
 Maruti Suzuki has been at the top of its game when it comes to the domestic market but it
has only now started looking at exporting cars. The company should aim for up to 25 per
cent of its production to be exported although it expects overseas shipments to touch 2 lakh
units by 2020
 It doesn't come as a surprise that the company's total production combined with the parent
company Suzuki will cross 2 million units by 2020 and Maruti Suzuki has been exploring the
idea of entering new markets with their new vehicles. In 2017-18, Maruti Suzuki India
exported 1,26,074 units, while in the current fiscal (April to December), the company has
already shipped over 81,000 units. The exports are expected to rise even further once cars
produced in the country meet India's upcoming stricter safety and emission norms.

10) Impact on India’s Economy:

 The role of automobile industry in India GDP has been phenomenon. It is one of the fastest
growing sectors in India. It can be easily analysed the significance of a single industry which
is contributing more than 7 percent of the Gross Domestic Product of a country.
 The increase in the demand for cars, and other vehicles, powered by the increase in the
income is the primary growth driver of the automobile industry in India. The introduction of
tailor-made finance schemes, easy repayment schemes has also helped the growth of the
automobile sector.
 The automobile industry currently employs 3.2 crore people both directly and indirectly and
it is expected to add 6.5 crore additional jobs in the next decade.
 The total investment by the automobile industry in the country has been to the tune of 35
billion dollars.
 By 2020, the automotive industry can contribute over 12 percent of India’s GDP.

11) Measures taken to protect Environment:

Maruti Suzuki has gone a step further to ensure environmentally friendly practices at its
dealerships. Maruti Suzuki’s over 3,300 authorised service workshops, spread across nearly 1,600
cities, have embraced new technology enabling them to increase energy efficiency, save paper and
reduce water consumption.

Some of the recent initiatives undertaken include:

i) Dry wash systems: In this system the final water wash process has been replaced with
vehicle cleaning using special eco-friendly wash chemicals. The Company uses a special
bio-degradable dry chemical wash that has helped reduce washing time and water
consumption by over 216 Million litres per annum.
 ii) Automated oil management system: The new Automated Oil management system
protects against oil spills, saving both time and effort. It also provides greater control
and a method to monitor oil quantity used, thereby preventing wastage and improving
productivity.
iii) Paint-less dent repair system: The new paint-less dent repair system can repair minor
dents without stripping the paint. This has led to a more environment-friendly, faster
and cost-effective way of repairing dents.
iv) Automatic car washing system: The use of the new automated car and underbody
washing system saves up to 20% of total water consumed.
v) Reduction in paper consumption in service operations: The Company seeks to conserve
paper with an aim to go paperless and also is planning to provide CD-ROM for Brochures
and Manuals.

12) Corporate Social Responsibility:

12.1) Maruti Suzuki is committed to improving the well-being of the local community by
implementing social projects in designated villages and local communities.

i) water and sanitation: Depending on local needs and in consultation with the
community, Maruti Suzuki has undertaken projects to improve availability of clean
drinking water, upgrade solid and liquid waste management facilities, create useful
rural assets, and support economically weaker households in construction of
domestic toilets to minimise open defecation.
ii) Education: In partnership with the local community and the government education
department, Maruti Suzuki has upgraded infrastructures of Government schools
and focus on improving the learning level and all-round development of students
and youth in the communities.
iii) Maruti Suzuki offers scholarships to the meritorious students from underprivileged
and economically weaker communities to help them pursue higher education and
job oriented technical and vocational training. And it also offers scholarships to
children orphaned as a result of road accidents to support their education and
training
iv) Health: Maruti Suzuki take care of all the health care needs of the local community
and is undertaking projects to provide health care facilities.

12.2) Maruti driving School:

Accidents and Road Safety has always been a key concern area for both the
government and people on the road. With an objective to improve road safety and inculcate safe
and systematic driving habits among people, Maruti Suzuki has opened Maruti Driving Training
School (MDS). These driving schools are equipped with Practical Training and Attitude Training.
World class driving simulators are used to give a hands-on feel to learners before taking the vehicles
on the road. Having started in Bangalore in March 2005, Maruti Driving School has spread its
network throughout the country in collaboration with the dealers; the company has set up over 200
Maruti Driving Schools across the country. One distinguishing feature of Maruti Driving School is lady
instructor for training females. According to the statement by Mr.R.C.Bhargava (Chairman-Maruti
Suzuki), Modernization of automobile industry was incomplete unless people learnt to drive safely
on the road.
 12.3) Institute of Driving & Traffic Research (IDTR):
Maruti Suzuki introduced world class driving training facilities to India by launching
Institute of Driving & Traffic Research to conduct research on minimalizing Accidents. These include
a specially formulated multilingual theory curriculum, scientifically laid-out driving tracks and
advanced driving simulators that replicate Indian driving conditions. The first IDTR was set up at Loni
(on the outskirts of Delhi), in 2000 in collaboration with the Delhi government. In 2010-11, the IDTR
was set up at Gujrat, in collaboration with the Tribal Development Department of Gujrat. The
intention of this initiative was to develop the driving skills of tribal youth. The IDTR is presently exist
at Haryana (two IDTR, each at Rohtak and Bahadurgarh), two in New Delhi (Loniand Sarai Kale Khan),
one in Gujrat (Vadodara), one in Uttarakhand (Dehradun).

12.4) National Road safety mission:

National Road Safety Mission is the flagship Road Safety initiative introduced by the
company in December 2008. Under this nitiatives, the company took a commitment of training over
5,00,000 people in safe driving practice in a span of 3 years. The main objective of this initiative was
to make them employable in driving profession.

13) Strategical Partnerships:

 In 2017 Suzuki motor corporation and Toyota motor corporation signed an MoU to jointly
explore opportunities and share technologies.
 With this partnership Maruti Suzuki will supply the Baleno hatchback and Vitara Brezza
compact SUV to Toyota, while Toyota will produce the Corolla sedan for Maruti. The first of
the shared models will come out in the second quarter of 2019.
 The product sharing will help plug a vital gap in Toyota’s line-up. The Vitara Brezza-based
model and Baleno-based models will give Toyota a much-needed presence in the hugely
popular compact SUV and premium hatchback segments. The Corolla-based sedan, on the
other hand, will help Maruti expand its line-up and give the carmaker a premium offering,
which could be retailed from the Nexa sales network. On the face of it, the product-sharing
agreement is a win-win for both manufacturers.
 Toyota’s main role in the Indian market will be to share hybrid electric vehicles (HEV)
technologies with Maruti Suzuki where the HEV systems, engines and batteries will be locally
procured through the Suzuki-Toyota-Denso plant which is coming up in Gujarat.
 Toyota will also supply Hybrid Systems to Suzuki which will be used across its portfolio
globally.
 Suzuki will supply two compact vehicles to Toyota based on its Global C and Heartect
platforms which underpin the Ciaz and Ertiga respectively. The company will also supply four
models to Toyota in Africa, which are Baleno, Ciaz, Ertiga and the Vitara Brezza. Moreover,
Suzuki will help Toyota in Europe with powertrain technology and Toyota will, in turn,
manufacture engines using the sourced technology at its plant in Poland.
14) Controversies surrounding Maruti Suzuki:

14.1) Since its founding in 1983, Maruti Udyog Limited has experienced problems with its
labour force. The Indian labour it hired readily accepted Japanese work culture and the modern
manufacturing process. In 1997, there was a change in ownership, and Maruti became
predominantly government controlled. Shortly thereafter, conflict between the United Front
Government and Suzuki started. In 2000, a major industrial relations issue began and employees of
Maruti went on an indefinite strike, demanding among other things, major revisions to their wages,
incentives and pensions.

Employees used slowdown in October 2000, to press a revision to their incentive-linked pay.
In parallel, after elections and a new central government led by NDA alliance, India pursued a
disinvestment policy. Along with many other government owned companies, the new administration
proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed
this sell-off plan on the grounds that the company will lose a major business advantage of being
subsidised by the Government, and the union has better protection while the company remains in
control of the government. The standoff between the union and the management continued
through 2001. The management refused union demands citing increased competition and lower
margins. The central government privatized Maruti in 2002 and Suzuki became the majority owner
of Maruti Udyog Limited.

14.2) Manesar violence:

On 18 July 2012, Maruti's Manesar plant was hit by violence. According to Maruti
management. The production workers at one of its car factories attacked supervisors and started a
fire that killed a company General Manager of Human Resources Avineesh Dev and injured 100
other managers, including two Japanese expatriates. The workers also allegedly injured nine
policemen. However, Maruti Suzuki Workers Union (MSWU) President Sam Meher alleged that
management ordered 300 hired security guards to attack the workforce during the violence. The
incident is the worst-ever for Suzuki since the company began operations in India in 1983.

A total of 148 workers were charged with the murder of Human Resources Manager
Avineesh Dev. The court dismissed charges against 117 of the workers. On 17 March 2017, 31
workers were found guilty of variety of offences. 18 were convicted on charges of rioting,
trespassing, causing hurt and other related offences under Indian Penal Code sections. The
remaining 13 workers were sentenced to life in imprisonment after being found guilty of the murder
of General Manager of Human Resources Avineesh Dev.

The Maruti Suzuki Workers Union is continuing to organise industrial action and protests
calling for the workers to be released and criticising the judgement and sentences an unjust. An
international appeal for the release of the workers has been made by the International Committee
for the Fourth International (ICFI) and other organisations such as the People’s Alliance for
Democracy and Secularism.
14.3) Joint venture related issues:
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
until 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 to 50% in 1992, and further to 56.21% as
of 2013. In 1982, both the venture partners entered into an agreement to nominate their candidate
for the post of Managing Director and every Managing Director would have a tenure of five years.

15) REFERENCES:
 https://www.marutisuzuki.com/corporate/media/press-releases/2015/maruti-suzuki-
launches-nexa-a-new-premium-automotive-experience
 https://www.marutisuzuki.com/corporate/about-us/csr
 https://www.autocarindia.com/car-news/suzuki-and-toyota-to-share-certain-models-in-
india-407890
 https://auto.ndtv.com/news/toyota-and-suzuki-collaborate-to-strengthen-their-alliance-
2010563
 https://auto.economictimes.indiatimes.com/news/aftermarket/maruti-suzuki-boasts-
environmental-friendly-practices-at-its-dealerships/59014821
 https://www.financialexpress.com/jobs/auto-sector-can-generate-6-5-crore-new-jobs-by-
2026-maruti/447190/
 https://auto.ndtv.com/news/maruti-suzuki-aims-to-export-25-per-cent-of-its-production-
cars-1984374
 https://auto.ndtv.com/news/maruti-suzuki-becomes-indias-no-1-exporter-of-passenger-
vehicles-1765843
 https://auto.economictimes.indiatimes.com/news/passenger-vehicle/cars/maruti-suzuki-
alto-exports-dip-25-in-fy18/63881623
 https://www.marutisuzuki.com/corporate/about-us/strength
 https://www.infodriveindia.com/india-export-data/maruti-suzuki-export-data.aspx
 https://www.autocarindia.com/car-news/maruti-suzuki-ends-fiscal-2018-with-record-sales-
407912
 https://www.marutisuzuki.com/corporate/media/press-releases
 https://www.marutisuzuki.com/corporate/investors/company-reports
 https://www.marutisuzuki.com/corporate/about-us#about-history
 https://www.cartrade.com/news/hyundai-vs-maruti-suzuki-battle-between-top-two-brands-
in-india-122409.html
 https://motoroctane.com/maruti-suzuki
 https://www.owler.com/company/marutisuzuki
 https://www.business-standard.com/company/maruti-suzuki-5496/annual-report/director-
report
  https://www.moneycontrol.com/annual-report/marutisuzukiindia/auditors-report/MS24

https://marutistoragenew.blob.core.windows.net/.../MSIL_AR_2017-18_HR.pdf

www.managejournal.com/download/554/3-7-35-805.pdf

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https://www.slideshare.net/vikaschauhan8888/business-model-of-maruti-suzuki

https://www.slideshare.net/anurag77/maruti-suzuki-ppt-12809979

https://www.slideshare.net/MDSADIQUESULEMAN/maruti-suzuki-72124550