Maruti Suzuki India Limited: History, Company Profile, Founder

onJuly 30, 2022

Overview of the Brand

Maruti Suzuki India Limited is India’s top automaker, formed in 1981 as Maruti Udyog Limited. In1982, it changed its name to Maruti Suzuki India Limited after Maruti Udyog Ltd. and Suzuki of Japan signed a joint venture agreement (JVA). Maruti Suzuki currently owns two factories in India – one at Palam Gurgaon Road, Haryana, and one in Manesar Industrial Town, Haryana, having a combined manufacturing capacity of 15, 80,000 units yearly. Maruti Suzuki is also using its parent company, the Suzuki motor manufacturing plant in Gujarat, having a production capacity of 5,00,000 units capacity per annum. The company also gets 900 acres of land at kharkhoda in the Sonipat district from the Haryana government to start its new manufacturing plant. Maruti Suzuki will invest ₹11,000 crores in the new manufacturing facility, which may become its biggest factory in India. 

Maruti Suzuki has been India’s premier automotive manufacturer for more than 40 years. With a selection ranging from affordable hatchbacks to luxurious SUVs, this manufacturer has something for everyone. Engines are assembled at a facility in Rohtak, Haryana, for various models, including those exported from India as early as 2022. In recent years, Maruti Suzuki has also launched several hybrid and electric vehicles to reduce fuel consumption and environmental impact.

Maruti Suzuki is India’s biggest mass-product carmaker, with more than 2,400 showrooms and dealerships around the nation. Maruti Suzuki is not only India’s top automaker but also has excellent success in exporting its products to other countries, mainly Europe.

Like other vehicle company logos, the Maruti Suzuki logo has changed many times. There have been several positioning adjustments to the present logo, established in 2011. To better reflect its new positioning, the slogan for Maruti and Suzuki has been altered from “Count on us” to “Way of life.” Hatchback, Sedan, MUV/SUV, and Van are the four basic body styles that India’s most extensive vehicle manufacturer has entered the market with so far. 

Automaker Maruti Suzuki is located in India. Suzuki has a stake in the corporation, which is a wholly-owned subsidiary. Maruti Suzuki produces and sells various vehicles, including cars, vans, and SUVs. The firm has a market share of 43% in the financial year ending March 31, 2022, in India’s passenger automobile market.

In February 1981, Suzuki, the Japanese automaker, and the Indian government launched a joint venture. In December 1983, the Maruti 800, the company’s first car, was unveiled. Swift debuted in 2005, whereas Maruti 1000 went on sale in 1988 as a hatchback. In 2010, Maruti, India’s first manufacturer of a million vehicles, left its imprint on the country’s automotive sector.

Maruti Suzuki History

Throughout the many decades of its existence, the fortunes of the vehicle manufacturer have witnessed significant ups and downs.

1971-77:

Incorporated under the Companies Act, Maruti Limited was founded by Sanjay Gandhi as its first managing director. Gandhi met with various companies, including Peugeot, Volkswagen, and Suzuki of Japan, during his visit. For the corporation, the goal was to develop, produce, and assemble a low-cost automobile for the general public. The corporation, however, went bankrupt in 1977, and the vision was never realized.

1981-84:

Meanwhile, the government salvages Maruti and begins searching for an active foreign partner. In 1981, Maruti Udyog Limited, a Suzuki subsidiary, was formed to manufacture compact automobiles. As of now, Suzuki has a 26% share and has a 40% option on the company’s stock. Maruti began with 883 personnel on its payroll. In December 1983, Maruti 800, India’s first vehicle, was unveiled, followed by Omni, India’s first van, at the Gurgaon plant outside of Delhi. Both vehicles are still on the road today in India.

From 1986 until 1988:

Cars from Maruti are already being exported to Hungary, and the Maruti 800 is getting a makeover. The Gurgaon plant’s annual production capacity gradually increases to one lakh units. There are already 2000 people in the company. This number will rise further, rising to 4000 in 1992 and 5700 in 1999. 1987 saw Suzuki execute its option to acquire further ownership, increasing its position in the company to 40%. Maruti is unable to produce enough M800s. Hence the wait time has increased to nearly a year. The Japanese company is hailed as a hero for generating new jobs.

In the years 1991-1993:

With the opening of the Indian economy, multinational corporations like General Motors, Ford, Peugeot, Daewoo, and Honda are rushing in. Suzuki’s share in the company rises to 50% as a result. Instead of a government agency, it’s an Indian corporation following Japanese business practices. The government and Suzuki have devised a rotating system for selecting the company’s managing director, in which each party alternates for five years in selecting a new candidate.

1996-1998:

Hyundai, the South Korean automaker, introduced the Santro in India, while Tata Motors, the country’s biggest commercial vehicle manufacturer, introduced Indica. Competition for Maruti’s M800 and Zen is provided by the two above and the Daewoo Matiz. The company’s grip on the market lessens as it grows, and its market share drops from 80% in 1995 to 70% in 2001.

1997-1999:

The rift between Suzuki and the Indian government. SSLN Bhaskarudu was nominated as MD by the government in August 1997, even as R C Bhargava ended his term as MD.

Suzuki and Bhaskarudu are at odds with the localization of gearboxes. Those who disagree with him accuse him of incompetence and take the case to court.

The period from 2000 to 2002

In October 2000, workers went on strike, reducing output. Workers were not pleased with the new NDA-led government’s decision to disinvest. In 2002, the Indian government privatized Maruti and Suzuki acquired a 54.2% share. Maruti’s first labour conflict is on the horizon.

In 2000, Maruti unveiled the Alto. After introducing a more powerful version in 2010, it became the world’s best-selling compact vehicle. It has been the best-selling car for the previous seven years.

2003:

Oversubscription of 7.82 times led to Maruti being listed on BSE and NSE. The government sold a quarter of the company. R1000 crore was wiped out by the government’s 17% shareholding in the company. There is now 20.3% of LIC’s shares held by foreign institutional investors compared to 12.7% held by banks and financial organizations. 2.46% share of the corporation owns by the general population.

2004:

With its investment in Manesar, Maruti has left Gurgaon behind. In 2007, a facility with a capacity of three million units and an investment of R1450 million was established. An investment of R3625 million will be made to expand the company’s production capacity to 8.5 million units by 2014. Suzuki has also built a motorbike plant and an R&D centre in the same area.

2005:

Like the M800 in the 1980s, the Swift is unveiled and quickly becomes a symbol of youthful India. After the Alto, it’s the best-selling vehicle in the nation. Maruti made a sedan version of the car in 2008, and the Dzire quickly became the go-to sedan for the company. It is Maruti’s lone commercial triumph outside the small vehicle market niche.

2010:

For the country’s most beloved automobile, this is a sad day. New pollution regulations have prompted Maruti to phase out the M800 in 13 major cities. The M800 still holds the record for total sales, with 2.8 million units sold. The car’s extinction would likely be slow if the same standards were implemented elsewhere in 2015.

2011:

A decade of smooth sailing is interrupted when three labour strikes between June and October hamper the productivity of the new Manesar factory. After a three-way deal, the strike was eventually concluded in October. Employees urged that a new union be given recognition. Maruti loses R2500 crore in income and 83,000 vehicles in manufacturing due to the disturbance. During the October-December 2011 quarter, its market share fell to 38%, the lowest level since its establishment, and it also had its worst-ever quarterly financial performance.

July 2012:

Two Japanese nationals were also injured in the attack by a crowd of employees at Manesar; one was killed. The two plants’ offices, security cabins, and fire safety systems have been destroyed, primarily engulfed in flames. The occurrence shakes the country, and the firm is caught aback by its unexpectedness. The authorities have detained ninety-one of the workers, but they are still seeking the other personnel. Because of the facility’s extended shutdown, the company is now in a disorganized condition. This is a direct effect of the situation.

March 29, 2013:

A redesigned SX4 from Maruti Suzuki that gets the better gas mileage

The cost is unaltered.

Midsize automobile with a new front fascia and interiors that have been updated

High-end touch screen audio navigation is the first in Maruti Suzuki’s lineup.

Indian automobile industry leader Maruti Suzuki India Limited has revealed the SX4 in an all-new shape, comprising a new external and interior design, better performance capabilities, and additional convenience. The new SX4’s fuel economy has increased by 6% at 16.51kmpl in petrol. Using CNG, the fuel efficiency is 22.1 kilometres per kilogram. There is a 21.79 mpg rating for the Super Turbo Diesel SX4.

Additionally, the new SX4 provides high-end optional options like touch screen audio navigation and its modern appearance.

February 06, 2014:

Maruti Suzuki has announced the worldwide launch of the ‘Celerio’ with its unique Auto Gear Shift technology.

Maruti Suzuki India Limited, a leader in the Indian auto industry, unveiled the much-anticipated Celerio today, which features the ground-breaking Auto Gear Shift. The new Auto Gear Shift, dubbed EZ Drive, is intended to revolutionize the driving experience on Indian roads with the same fuel economy as the Manual gearbox. The Celerio’s Auto Gear Shift is a first for passenger automobiles in India.

Celerio is a well-rounded product ready to make a splash in the A2 market. Celerio’s best-in-class fuel economy of 23.1 km for both Automatic Gear Shift and Manual Transmission models is one of its many advantages.

Buyers often choose manual transmission automobiles because of the significant price difference between manual and automatic transmissions. Celerio is available for a reasonable price right out of the gate. This pricing dispels any notion that high-tech products are prohibitively pricey.

As a harbinger of a revolution, the Auto Gear Shift

Auto Gear Shift is Suzuki Motor Corporation’s new technology that offers an enhanced driving experience to its customers when paired with the K-next engine. With Auto Gear Shift, driving is a breeze thanks to an intelligent actuation device.

February 23, 2015:

‘Refreshed Swift DZire’ at 26.59 km is India’s most fuel-efficient vehicle, according to Maruti Suzuki, which unveiled it.

With over a 13 per cent increase in fuel economy, four new body colours, rich interiors, and an imposing S emblem on the front grille; at a starting price of 507,800 upwards, Swift Dzire has become a more demanding car.

Powerful and efficient: DZire diesel is powered by an award-winning 12-48 DDiS DDiS diesel engine that produces 75ps of power at 4000 rpm and 190Nm of torque while running at 2000rpm. The power is 84.3ps at 6000rpm, and the torque is 115Nm at 4000rpm for the 1197cc K series VVT engine.

Engine hardware adjustments that increase thermal efficiency, decrease frictional losses, and changes in engine calibration are just a few of the advances made by Maruti and Suzuki engineers to improve fuel economy.

While gasoline engines benefit from a smaller combustion chamber and a more excellent compression ratio, diesel engines benefit from an upgraded heat management system, low friction engine oil, and a redesigned fuel injection system.

March 02, 2016: 

The Maruti Suzuki Alto sells 30 lakh units.

The Alto, India’s best-selling car for over a decade, has reached the 30 lakh mark in sales in the country. Alto reached this historic milestone after working for 15 years and 6 months. Only Alto, an Indian automaker, has achieved this feat.

Since its debut, the Alto has been well received by consumers looking for a low-cost vehicle with appealing styling, strong performance, and low emissions. Customers, particularly at the entry level, have viewed Alto as a win-win combo of design and cost.

In addition, more than 3.8 lakh Altos have been distributed throughout over 70 nations, with the markets in Sri Lanka, Algeria, Chile, the United Kingdom, and the Netherlands being its most successful car.

To meet the needs of its customers, MSIL has constantly updated Alto with the latest technology and additional features. The new Alto has a redesigned exterior, a new interior, and a more powerful engine than ever. It is available with two engine sizes – 800 ccs and K10 – and CNG fuel. The Auto Gear Shift Transmission (AGS) of the Alto K10 is designed to meet the consumer’s demands. As a result of AGS, even in congested city traffic, drivers may enjoy a smooth ride without sacrificing their fuel economy.

Alto prioritizes safety above everything else, and it’s the only brand in its class to feature standard driver airbags.

Even with the most up-to-date amenities and technology in the Alto, Maruti Suzuki’s attempts to increase efficiency guarantee that India’s most popular vehicle remains the most cost-effective.

January 30, 2017:

One more significant achievement for the Maruti Suzuki NEXA. Opened doors to 200th retail location

In the last 18 months, almost 1,85,000 automobiles have been sold.

In New Delhi, Maruti Suzuki India Limited, India’s top passenger car manufacturer, opened its 200th NEXA Showroom in Hyderabad today, expanding its luxury automotive experience. More than 1,85,000 automobiles have been sold since the launch of NEXA, India’s fastest-growing auto retail platform, across 121 cities.

This is NEXA’s 200th showroom in Hyderabad in LB Nagar (Kalyani Motors). NEXA, one of the most significant efforts by Maruti Suzuki in its quest to attain the 2 million sales goal in 2020, has transformed the automobile purchasing experience in India. NEXA now sells the S-Cross, the Baleno, and the IGNIS, all of which are luxury crossovers.

New consumers and established customers alike have benefited from the launch of Maruti Suzuki’s premium automobile retail channel, NEXA, in July 2015. By the conclusion of the fiscal year 2016-17, Maruti Suzuki hopes to have 250 NEXA stores throughout the country. After 20 months, NEXA aims to have sold a total of 2,00,000 units.

June 13, 2018:

India’s quickest automobile, the #AllNewSwift, sold its one-millionth unit on June 13.

The all-new Swift, India’s most popular hatchback, has sold 100,000 cars in only 145 days. Every automobile in India is the quickest way to reach 100,000 units. The third-generation Swift has been embraced by consumers from all over the world and of all ages, adding to the popularity of the original and second-generation Swift models.

Swift has sold over 1.89 million units in India since its inception in 2005. Also, a Swift was Suzuki’s 20 millionth car made in India.

According to the internal analysis, the most critical aspects of the success of #AllNewSwift were its new design, enhanced performance, better safety features, and well-known brand. On the 5th generation HEARTECT platform from Suzuki, the new Swift has an improved power-to-weight ratio and acceleration, making it more agile. With Apple CarPlay/Android Auto/Mirror Link connectivity and voice recognition, the new Smart Play Infotainment is popular among younger, tech-savvy customers. An additional feature that customers have praised is the brand’s pioneering Auto Gear Shift (AGS).

March 28, 2019:

A 1.5-litre DDiS 225 diesel engine mated to a 6-speed manual gearbox is now available in the all-new Maruti Suzuki Ciaz, which sells on March 28, 2019.

The DDiS 225, a newer 1.5-litre diesel engine, was introduced due to the exhibition.

225Nm of peak torque at 1500-2500 rpm and 70kW of peak power at 4000 rpm are the new powertrain’s top torque and power outputs, respectively.

Enhanced It’s easy to drive in the city with the increased low-end torque provided by the 1.5-litre DDiS 225 Diesel engine’s high-efficiency turbocharger.

Refined NVH characteristics: Due to adopting a Dual Mass Flywheel (DMF) and an adjusted compression ratio, engine fluctuations are minimized, and noise levels are reduced, making the driving experience more pleasant.

Best-in-class Fuel economy: An aluminium casted cylinder head and block and an optimized engine calibration improve fuel economy.

February 18, 2020:

A new Maruti Suzuki IGNIS will be unveiled on February 18, 2020.

At the Auto Expo 2020, the all-new Maruti Suzuki IGNIS was launched, and the company now revealed its pricing. Designed to seem like an SUV, the new IGNIS has an aggressive front end, broad rear end, and high sitting position.

The 2017 IGNIS’ SUV appeal is bolstered by the rear spoiler, roof rails, and high ground clearance. It’s a delight to drive because of its spacious, comfortable interior and the most up-to-date security features. The new 1.2-litre BS6-compliant petrol engine in the IGNIS comes with both an automatic and a manual gearbox.

New IGNIS colour possibilities, such as Lucent Orange, Turquoise Blue, and three New Dual Colour options, add to the new IGNIS youthful appeal. Acropolis and Scorcher are two premium themes available in the new IGNIS.

September 14, 2021

More than 2.5 million people have fallen in love with the limitless Maruti Suzuki Swift.

India’s most popular vehicle in the 2020 and 21st century

The first vehicle to earn the ICOTY award in each of its three incarnations as a leader among luxury hatchbacks for 15 years

Swift, India’s best-selling premium hatchback, has dominated Indian roads for more than 16 years. The top-selling automobile in India in 2020-21 sold 2.5 million units, breaking all previous sales records.

Since its inception in 2005, Swift has paved the way for the country’s premium hatchback market. It is one of the most popular cars today because of its unrivalled driving experience, worldwide style, and excellent performance.

No other vehicles in history can claim a hat trick of ICOTY titles. In 2005, Maruti Suzuki Swift democratized the sporty premium hatchback sector with cult fans. The Maruti Suzuki Swift offers a boundless performance, gorgeous appearance, and feature-packed attributes, a driver’s joy for more than three generations.

March 24, 2022:

Mr. Hisashi Takeuchi was named MD and CEO by the Maruti Suzuki Board of Directors on March 24, 2022. He will begin his duties on April 01, 2022.

Hisashi Takeuchi was named CEO and MD of Maruti Suzuki India Limited on March 31, 2022, after Kenichi Ayukawa’s contract expired on March 31, 2019. Executive Vice Chairman Kenichi Ayukawa will take over as a Whole-Time Director on September 30, 2022, to ensure a seamless transition. Shareholder approval is required before these appointments may be made.

The merger of Maruti Suzuki

Maruti Suzuki India’s board of directors authorized a merger with Suzuki Powertrain India Ltd (SPIL) on July 12th, 2012. Suzuki Powertrain is a joint venture between Suzuki Motor Corporation and Maruti Suzuki India, which owns 70% of the company. A Suzuki Motor Corporation subsidiary, SPIL, provides Maruti Suzuki with diesel engines and gearboxes.

From 54.2% to 56.2%, Suzuki Motor Corporation’s stake in Maruti Suzuki India would grow when the transaction is completed. Shares of Maruti Suzuki India will be issued to Suzuki motors in exchange for its 70 per cent stake in Suzuki Powertrain. There will be no cash outflow throughout the merger process since the merger will be completed via a share exchange arrangement with a 1:70 ratio. If Suzuki Motors has 70 shares of a company worth 10 rupees each, it will get a dividend payment from Maruti Suzuki India equal to 5 rupees for each share.

SPIL’s books will be combined with MSI’s in April 2012 after receiving the necessary regulatory and legal permissions. The combination would gain from finance, capital structure, administration, and transaction expenses. As a result of the merger, MSI will have one central point of management for all of its digital engine capabilities. With an eye on growing the company and reducing costs, MSI will take steps to improve the business’s sourcing and localization efforts. 

Some of Maruti Suzuki’s subsidiaries include

• Maruti Driving School:

The Maruti Driving Academy was created in March 2005 in New Delhi. These institutions offer state-of-the-art facilities modelled on international standards, where learners go through classroom and practical sessions. Many international behaviours like road etiquette and attitudes are also taught at these institutes.

Before driving actual autos, trainees are educated on simulators. Setting up a specialized school may not earn huge money but surely helps engage the buyer well ahead of the purchase decision.

• Maruti Finance and Maruti Insurance:

Assume you’re still worried about your financial state of affairs.

If this is the case, Maruti will assist you via its subsidiary companies, Maruti Finance and Maruti Insurance, so that you do not have to spend an arm and a leg to own a car.

Maruti Finance was established in 2002 to enhance the company’s bottom-line development. Since then, the company has successfully generated a significant departure barrier for its customers. 

Today, Maruti collaborates with all the central banks and NBFCs to help its consumers purchase a new automobiles.

With its financing schemes, Maruti promises to provide attractive Interest rates to its clients, which are 0.25 per cent to 0.5 per cent cheaper than the market rates.

Maruti Insurance was first introduced to the public in 2002 and functions as a “Single Window” for cashless accident repairs, hassle-free services, and straightforward claim settlements. With a nearly 100 per cent settlement ratio, it has more than 1500 shops nationwide, servicing over 6.13 Crores+ clients. It created more than 75.55 lacs policies and got more over Rs. Nine thousand one hundred fourteen crores in premium from its customers in only the current fiscal year (FY19-20).

• Maruti Genuine Accessories and Maruti Genuine Parts:

In the car accessory industry, plagued with counterfeits and used products installed and sold by disorganized garages and motor technicians, Maruti Genuine Accessories and Maruti Genuine Parts have enabled the business to develop trust and contact with customers.

It sells extras, including alloy wheels, body covers, carpets, door visors, fog lights, radio systems, seat coverings, and other automobile care goods via dealer shops and approved service stations across India. This creates a consistent stream of earnings, and the clients have peace of mind while purchasing a natural product.

• Maruti Autocad:

To promote the retention of consumers, Maruti AutoCAD was established in 2006. It is a unique loyalty reward program for the company’s consumers.

The consumer earns specific badges and points on certain purchases upon engaging with executives. In the future, you will have the opportunity to trade in your points for various services and products related to your vehicle. In terms of value, one point is equivalent to one rupee.

These initiatives do not burn a hole in the company’s profits and help clients remain loyal to the brand.

• Maruti True Value:

One such project that seemed ahead of its time was Maruti True Value, which was announced in 2001. With the help of Actual Value, you may locate a reputable used product at a reasonable price.

One may purchase, trade, or swap Maruti or non-Maruti automobiles with the aid of True Value. Being the first major organized participant in the industry, True Value has grown its Pan India presence with a network of over 1252 shops distributed over 942 cities.

Models with a large following

· Maruti Suzuki Swift:

The latest Maruti Swift, introduced in 2005 as the first hatchback in India, has a hexagonal grille and a front bumper adorned with oval log lights, giving it a more upscale appearance. Despite the cabin’s general black colour scheme, it is outfitted with silver-coloured components. Automatic temperature control and speed-sensitive automatic door locks are just a few amenities that make life easier for drivers and passengers alike. Accordingly, the Maruti Suzuki Swift might be described as a B-segment car with a sophisticated appearance.

In addition to the 5-speed AMT and 5-speed manual transmissions, the BS6 1.2-litre petrol engine of the Maruti Swift is available. This engine’s ARAI-certified fuel efficiency is 21.21 kilometres, 83 horsepower, and 113 nm of torque.

It also has features that make it “fun to drive an automobile,” such as its ability to accelerate quickly—commuters like its simple handling and well-balanced suspension for city driving.

· Maruti Suzuki Baleno:

The Maruti Baleno is a well-balanced blend of performance, style, and driving enjoyment. The car’s characteristic C-shape form has been retained. Still, the manufacturer has made several updates to its exterior and interior, giving it a sportier appearance while providing additional inside space. Baleno’s interior has a dual-tone black and blue paint scheme, making it seem more expensive than its actual price.

Aside from these characteristics, the Baleno is still Maruti Suzuki’s best-selling vehicle and has been for a long time. Many cutting-edge features can be found in this vehicle, including an entertainment system, low fuel alerts, parking brakes, and more. The safety system that has been adequately financed includes components such as rear parking sensors and mounts for ISOFIX child safety seats. The Maruti Suzuki Baleno has long been considered one of India’s safest sub-10 lakh vehicles for this exact reason.

Users may choose between a 1.2-litre normally aspirated petrol engine and a 1.2-litre Dualjet engine with mid-hybrid technology under the hood of the Baleno. These options provide 83 horsepower and 113-newton meters of torque, but they differ in several other respects. While the standard petrol engine is available with either a CVT or a 5-speed manual transmission, the other is only available with a 5-speed manual transmission. The Maruti Baleno’s fuel economy improves from CVT transmission to petrol-manual models to Dualjet powertrain – 19.56kmpl, 21.01 km, and 23.87kmpl, respectively – thanks to the vehicle’s growing fuel mileage.

· Maruti Suzuki Dzire:

A mix of snappy performance, fuel efficiency, and a roomy and pleasant interior make the Maruti Suzuki Dzire the most refined car in the company’s lineup. Among the new features of the 2020 Dzire are:

  • A newly styled front bumper.
  • A hexagonal grille with a chrome border.
  • A chrome-trimmed grille.

The Maruti Dzire’s cabin has been redesigned to provide additional legroom, storage space, and more comfortable seats. Extend the front bumper, and add sharper curtains to the fog light housing. In addition, the vehicle’s side and rear designs are unaltered from the previous model. In addition, the manufacturer has included top-notch amenities like a touch-screen infotainment system, keyless entry, temperature control, and so on, to respond to customers’ needs.

A single 1.2-litre K12C Dual jet petrol engine has replaced the 1.3-litre diesel and the 1.2-litre K12B engines to meet BS6 emission standards. In addition, the engine’s 23.26 to 24.12 km fuel economy makes it a good choice for city driving.

With more than 1.38 million units sold since its inception in 2008, Maruti Suzuki Dzire is the most popular car in the company’s history, making it one of Maruti’s best-selling vehicles of all time Suzuki.

Strategies

The firm’s current dealers have expressed their faith and confidence in the brand by opening additional dealerships and workshops.

• Company plan is to split the nation into four zones, subdivided into 16 regional and 15 regional offices, respectively. Decentralizing the sales process would make it possible to meet the unique needs of various regions. The firm specializes in the development and manufacturing of small vehicles. Alternative fuel categories, including WagonR and Swift Diesel powered by LPG, had shown good consumer reactions when the business debuted six new models.

• To convince clients who can afford new automobiles to acquire them, targeted marketing activities are required.

• Government personnel, for example, may benefit from special car-buying incentives.

• Creating an Employee Referral Program in which each employee would be a salesperson for the organization.

• To maximize profits, exclusive tie-ups with the financing companies would be beneficial.

• All of these new efforts, such as Maruti Insurance, Maruti Finance, Extended Warranty, Loyalty Program, AutoCAD, and so on, need to be implemented to enhance the overall quality of the customer experience.

• It is essential for the firm to promote the “Customers for Life” philosophy by making it possible for its customers to reach out to it anytime and from any location.

One of the critical factors that contributed to its success.

For more than four decades, Maruti has been the top automaker in India because of its high level of customer satisfaction. 

  • Customers may find automobiles in various price ranges, thanks to the company’s low prices. Even its top-of-the-line models are more reasonably priced than those of its rivals.
  • Maruti Suzuki is the most significant automobile for those who don’t want to spend much money on a car for everyday commuting. Its best-in-class fuel economy is another plus. Because of this, Indians have a preference for automobiles.
  • Service centres for Maruti Suzuki can be found across the country, making it easy for customers to get the necessary parts and services. Local stores carry their original spare parts, so consumers don’t have to make an appointment at a repair centre every time their automobile needs a component replaced.
  • For automobiles that have been in service for two to three years or more, it delivers the most value when they are sold again.
  • Buying a Maruti car doesn’t require a lot of thought because of the car’s low initial cost and ongoing maintenance costs. In addition to its low purchase price, it also has low ongoing maintenance costs.
  • Maruti’s components are sourced from local manufacturers, giving the vehicle’s occupants a homey feeling.
  • As a beginner or novice driver, nothing can be better than Maruti cars, which are simple to operate and allow you to learn how to drive in a short period.
  • Thanks to its extensive network of dealerships and service centres, it has a 50 per cent stake in India’s automotive industry. Another factor for Toyota’s dominance as the country’s top automaker is the company’s extensive national network and network of dealerships.

Maruti Suzuki’s Strong Points and Weak Points:

Strengths:

As of August 2020, the company has a market share of 49.7 per cent in the Indian Passenger cars category, making it the most dominant player in the industry. As a result of its first forays into the market and subsequent updates, this has become feasible. 

  • The power of the Maruti Suzuki brand is bolstered by the company’s devoted customer base and strong brand values. The company’s services are unmatched in the industry, which keeps customers interested. Autocad is a cherry on top for the Company since it offers clients loyalty points through incentive programs.
  • Actual Value is Maruti Suzuki’s second-hand car sales, buy, and exchange business. Many customers were able to get a second-hand car at a price they could afford.
  • Maruti Suzuki automobiles are exempt from taxation if the engine is smaller than 1200 cc and less than 4 meters long. As a result, it is exempt from paying the same taxes as other well-known brands.
  • The manufacturer dominates the hatchback sector. Since 2005, the Alto has consistently been one of the best-selling models in the company’s lineup.
  • With its service pricing that won’t break the bank, Maruti Suzuki vehicles are more affordable than most other brands’ premium models with overpriced maintenance. The company’s post-sale service has proven to be its most reliable source of revenue throughout the years. The car’s low overall fuel consumption also contributes to the general population’s preference for purchasing it.
  • It has a solid promotional strategy that allows it to interact with its consumers and places them at the forefront of the company’s concerns. NEXA is a fantastic model for a business that emphasizes the satisfaction of its clientele.
  • Since there are approximately 3600 locations in 1900 cities, it is a brand with a vast distribution network. This allows the company to sell cars more efficiently to its customers, increasing revenue.

The following is a list of weaknesses:

  • Owners of SUVs frequently choose Toyota or Mahindra as their preferred manufacturers. As a result, unlike other brands, Maruti has failed to establish itself as a significant player in the SUV market. Despite this, the Brezza compact SUV is trying to take the top spot.
  • The management and the labour unions are at odds. In 2002, Maruti Udyog Limited was sold to Suzuki, which acquired a controlling stake. During this time, Maruti Suzuki’s employees demanded a review and improvement of their compensation. They went on an indefinite strike. In 2012, manufacturing employees assaulted managers at Maruti’s Manesar facility and set fire to the building, killing the firm’s General Manager of Human Resources. These occurrences have the effect of slowing down production and decreasing income.
  • You’ll notice that the interiors are subpar when comparing Maruti Suzuki vehicles to more expensive, higher-quality brands like Hyundai, Volkswagen, and Honda.
  • As a result of their lower prices and enhanced features, foreign automakers like Kia have begun to appeal to a younger demographic. The company’s revenue and market share have been adversely affected by this.
  • Although Maruti Suzuki dominates the Indian market, the company’s vehicles have struggled to break into the international market.

Maruti Suzuki – Future Plans

As part of a strategic partnership with Toyota, Maruti Suzuki plans to introduce a new midsize SUV in 2022 that will compete with the Hyundai Creta. A C-segment MPV is also planned for 2023, and both vehicles will likely be manufactured at the Toyota factory in Bidaai.

Maruti and Toyota in India will continue to use the same rebranded Baleno, Ciaz, and Ertiga models until 2022. As a result, both automakers may take advantage of the rising trend for utility vehicles in India by offering cars with distinguishing features of difference.

The exit from diesel poses a challenge for compact SUVs. To maintain its current market share of 50%, Maruti Suzuki knows that it must have competitive offerings with the more than a dozen SUVs planned by its competitors.” One of the four executives aware of Maruti’s intentions said that a diesel engine with a capacity of 1.5 litres had not been ruled out just yet. “Plus, to spruce up its future portfolio, Maruti will rely on the locally-adapted hybrid solutions that Toyota has to offer.”

It is anticipated that the utility vehicle segment will soon surpass the humble hatchback segment in India. This is the case because an increasing number of buyers are flocking to tall and high-seating SUVs and MPVs, both of which can be acquired for a price ranging anywhere from Rs 5 lakh to Rs 1 crore. IHS Markit, a company specializing in vehicle forecasting, predicts that sales of utility vehicles will finish 2019 at 38 per cent, just a hair behind the hatchback segment, before passing up the hatchback segment in 2020. The share of the entry-level or mini-car segment, which was once Maruti’s mainstay, accounts for only ten per cent of the overall market today. In contrast, that share accounted for twenty-five per cent of the market three to five years ago.

In addition to releasing gasoline-powered variants of the Vitara Brezza and the S-Cross, Maruti released an SUV with a lower price point called the S-presso. Maruti anticipates that a sizeable portion of its Swift, Dzire, Ciaz, and Ertiga customers will one day purchase a larger SUV or MPV than the one they currently drive.

Conclusion

As a result of COVID-19, the automotive industry has been the most severely harmed. As a result, lower-income people are less likely to invest in high-end automobiles.

In contrast, the demand for lower and middle-priced vehicles is rising. People’s desire to own a personal vehicle has grown due to the pandemic’s increased anxiety about using public transportation.

As a result of its excellent after-sales service and low repair costs, Maruti Suzuki cars have become a popular choice for Indian consumers. Maruti is also the first choice for many car owners because of its good brand reputation.

At this crucial time, Maruti Finance will be essential in lowering the price of automobile ownership for many Indians. Demand for Maruti Suzuki vehicles will continue to rise shortly, thanks to the company’s aggressive marketing and management tactics.

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