A Internship Report on Maruthi

CHAPTER 1
INTRODUCTION
INTRODUCTION TO AUTOMOBILE INDUSTRY
The History of the automobile actually began about 4,000 years ago when the first wheel was
used for transportation in India. Several Italians recorded designs for wind-driven cars. The first
was Guido da Vigevano in 1335. It was a windmill-type drive to gears and thus to wheels.
Vaturio designed a similar car that was also never built. Later Leonardo da Vinci designed
clockwork-driven tricycle with tiller steering and a differential mechanism between the rear
wheels.
In the early 15th century, the Portuguese arrived in China and the interaction of the two cultures
led to a variety of new technologies, including the creation of a wheel that turned under its own
power. By the 1600s, small steam-powered engine models were developed, but it was another
century before a full-sized engine-powered automobile was created.
A Catholic priest named Father Ferdinan Verbiest is credited to have built a steam-powered car
for the Chinese Emperor Chien Lung in about 1678. There is no information about the
automobile, only the event. Since James Watt didn't invent the steam engine until 1705, we can
guess that this was possibly a model automobile powered by a mechanism like Hero's steam
engine-a spinning wheel.
Although by the mid-15th century the idea of a self-propelled automobile had been put into
practice with the development of experimental car is powered by means of springs, clockworks,
and the wind.
The automobile history dates back to the late 18th century. In the year 1769, a French engineer
by the name of Nicolas J. Cugnot invented the first automobile to run on roads. This automobile,
in fact, was a self-powered, three-wheeled, the vehicle found military application in the
French army. Cugnot’s automobile was never commercially sold.
A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832
and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson
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were amongst the first to invent more applicable automobiles, making use of nonrechargeable electric batteries in 1842. Development of roads made travelling
comfortable and as a result, the short ranged, electric battery driven automobiles were
no more the best option for travelling over longer distances.
Later it was started with the invention of gasoline powered internal combustion engines. The
German inventor, Karl Benz constructed his first gasoline powered vehicle in 1885 at Mannheim,
Germany. Commercial production of Benz cars started in 1888. Panhard ET Levassor of France
was the first company to exclusively build and sell motor cars from 1889. Carl Benz and
Gotttlieb Daimler, both Germans, share the credit of changing the transport habits of the world,
for their efforts laid the foundation of the great motor industry as we know it today.
Daimler's engine proved to be a great success mainly because of its less weight that could deliver
1000 rpm and needed only very small and light vehicles to carry them.
France too had joined the motoring scenario by 1890 when two Frenchmen Panhard and
Levassor began producing automobile s powered by Daimler engine, and Daimler himself,
possessed by the automobile spirit, went on adding new features to his engine. He built the first
V-Twin engine with a glowing platinum tube to explode the cylinder gas-the very earliest form of
sparking plug. The engines were positioned under the seat in most of the Daimler as well as Benz
cars. However, the French duo of Panhard and Levassor made a revolutionary contribution when
they mounted the engine in the front of the car under a bonnet.

Charles Duryea built a car carriage in America with petrol engine in 1892, followed by Elwood
Haynes in 1894, thus paving the way for motor car s in that country.
For many years after the introduction of automobile s, three kinds of power sources were in
common use: steam engines, gasoline or petrol engines, and electrical motors. In 1900, over
2,300 automobile s were registered in New York, Boston, Massachusetts, and Chicago. Of these,
1,170 were steam cars, 800 were electric cars, and only 400 were gasoline cars.
In ten years from the invention of the petrol engine, the motor car had evolved itself into
amazing designs and shapes. By 1898, there were 50 automobile -manufacturing companies in
the United States, a number that rose to 241 by 1908. In that year, Henry Ford revolutionized the
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manufacture of automobile s with his assembly-line style of production and brought out the
Model T, a car that was inexpensive, versatile, and easy to maintain. The introduction of the
Model T transformed the automobile from a plaything of the rich to an item that even people of
modest income could afford; by the late 1920s the car was common place in modern industrial
nations.
Charles Kettering's invention of the electric starter in 1912, turned the process of starting
automobiles faster and easier at the same time, doing away with the hand tools. Crude oil being
discovered in Texas, the automobiles driven by engines that ran on gasoline became even more
affordable, as the prices of gasoline reduced. The prices of electric automobiles were going
through a constant rise, in spite of the fact that these were less efficient than the gasoline
automobiles.
The early 1900s saw many automobile manufacturing companies coming into existence in a
number of European countries and the United States. The first mass produced automobile in the
United States was the curved-dash Oldsmobile. It was a three-horsepower machine and sold
5,000 units by 1904. The economics of the US car market was disrupted by the arrival of
Henry Ford and his Model T car. The Model T was the world's first mass produced vehicle- a
million units were sold by 1920- a space of 10 years.
Herbert Austin and William Morris, two different car makers, introduced mass production
methods of assembly in the UK, thus paving the way for a revolution in the automobile industry.
Austin Seven was the world's first practical four-seater 'baby car ' which brought the pleasures of
motoring to many thousands of people who could not buy a larger, more expensive car. Even the
'bull-nose' Morris with front mounted engine became the well-loved Model and one of the
most popular cars in the 1920s.
Automobile manufacturers in the 1930s and 1940s refined and improved on the principles of
Ford and other pioneers. Cars were generally large, and many were still extremely expensive and
luxurious; many of the most collectible cars date from this time. The increased affluence of the
United States after World War II led to the development of large, petrol-consuming cars, while
most companies in Europe made smaller, more fuel-efficient cars. Since the mid-1970s, the

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rising cost of fuel has increased the demand for this smaller cars, many of which have been
produced in Japan as well as in Europe and the United States.

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CHAPTER 2
COMPANY PROFILE OF MARUTI SUZUKI

AT A GLANCE

Maruti Suzuki India Limited is a subsidiary company of Japanese automobile and
motorcycle manufacturer Suzuki. The company offers a complete range of cars from entry level
Maruti 800 and Alto, to hatchback Ritz, A-Star, Swift, Wagon-R, Estillo, Ertiga, celerio, and
sedans DZire, SX4, in the 'C' segment Maruti Eeco and Sports Utility vehicle Grand Vitara.
It was the first company in India to mass-produce and sell more than a million cars. It is largely
credited for having brought in an automobile revolution to India. It is the market leader in India,
and on 17 September 2007, Maruti Udyog Limited was renamed as Maruti Suzuki India Limited.
The company's headquarters are located in New Delhi.
PROFILE
Maruti Suzuki is India and Nepal's number one leading automobile manufacturer and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of
Japan. The BJP-led government held an initial public offering of 25% of the company in June
2003. As of 10 May 2007, the government of India sold its complete share to Indian financial
institutions and no longer has any stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was
the only modern car available in India, its only competitors- the Hindustan Ambassador and
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Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti
Suzuki has produced over 5 Million vehicles. Maruti Suzuki is sold in India and various several
other countries, depending upon export orders. Models similar to Maruti Suzuki’s (but not
manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in
Pakistan and other South Asian countries.
The company exports more than 50,000 cars annually and has an extremely large domestic
market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest
selling compact car ever since it was launched in 1983. More than a million units of this car have
been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts. Due to the large
number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to
this compact car model. Its manufacturing facilities are located at two facilities Gurgaon and
Manesar south of Delhi. Maruti
Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum.
The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000
engines and transmissions. Manesar and Gurgaon facilities have a combined capability to
produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki
cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent
of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the
Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over
six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14
December 1983. Maruti Suzuki offers 14 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz,
Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, and Kizashi. Swift, Swift DZire, Astar and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as
completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon
Plant.
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Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for
three decades. Suzuki’s technical superiority lies in its ability to pack power and performance
into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are
employed directly by Maruti Suzuki and its partners. It has been rated first in customer
satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
Sanjay Gandhi owned the Maruti Technical Services Limited, which ran into trouble and was
liquidated. After the death of Sanjay Gandhi, the Indira Gandhi government assigned a
delegation of Indian technocrats to hunt for a collaborator for the project. Initial rounds of
discussion were held with the giants of the automobile industry in Japan including Toyota,
Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler
automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered
negligible.
While the major companies were personally represented in the initial rounds of discussion,
Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds
of discussion. Osamu in an article writes that it subtly massaged their (Indian delegation's) egos
and also convinced them about the sincerity of Suzuki's bid. Suzuki in return received a lot of
help from the government in such matters as import clearances for manufacturing equipment
(against the wishes of the Indian machine tool industry then and its own socialistic ideology),
land purchase at government prices for setting up the factory Gurgaon and reduced or removal of
excise tariffs. This ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy
to become one of its flagship ventures.
Joint venture related issues
Maruti Suzuki's A-Star vehicle during its unveiling in PragatiMaidan, Delhi. A-Star,
Suzuki's fifth global car model, was designed and is made only in India. Maruti Suzuki is also
Suzuki's leading research and development arm outside Japan

7

Relationship between the Government of India, under the United Front (India) coalition and
Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile market and the nature of the
partnership built up till then was the underlying reason for most issues. The success of the joint
venture led Suzuki to increase its equity from 26% to 40% in 1987 and further to 50% in 1992.
In 1982 both the venture partners had entered into an agreement to nominate their candidate for
the post of Managing Director and every Managing Director will have tenure of five years.
R.C. Bhargava was the initial managing director of the company since the inception of the joint
venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in
1982 he held several key positions in the company before heading the company as Managing
Director. Currently he is on the Board of Directors. After completing his five year tenure, Mr.
Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr.
S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined
Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy
Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In
1988 he was named Director, Productions and Projects. The next year (1989) he was named
Director of Materials [clarification needed] and in 1993 he became Joint Managing Director.
Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with the
reason of it being called on a short notice. Later Suzuki Motor Corporation went on record to
state thatBhaskarudu was "incompetent" and wanted someone else. However, the Ministry of
Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki
sources that Bhaskarudu was interested to indigenize most of components for the models
including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for
the Government and would not let it increase its stake in the venture. If Maruti Suzuki would
have been able to indigenize gear boxes then Maruti Suzuki would have been able to
manufacture all the models without the technical assistance from Suzuki. Till today the issue of
localization of gear boxes is highlighted in the press.
The relations strained when Suzuki Motor Corporation moved to Delhi High Court to bring a
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stay order against Bhaskarudu's appointment. The issue was resolved in an out-of-court
settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31
December 1999, and from 1 January 2000, JagdishKhattar, Executive Director of Maruti
UdyogLimited would assume charges as the Managing Director. Many politicians stated in
parliament that the Suzuki Motor Corporation is unwilling to localize manufacturing and reduce
imports. As of 2011 Gear boxes are still imported from Japan and are assembled at the Gurgaon
facility.
Industrial relations
For most of its history, Maruti Udyog Limited had relatively few problems with its labor force.
Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted in
Japan in the 1970s, was accepted by the workforce of the company without any difficulty. But
with the change in management in 1997, when it became predominantly government controlled
for a while, and the conflict between the United Front Government and Suzuki may have been
the cause of unrest among employees. A major row broke out in September 2000 when
employees of Maruti Udyog Ltd (MUL) went on an indefinite strike, demanding among other
things, revision of the incentive scheme offered and implementation of a pension scheme.
Employees struck work for six hours in October 2000, irked over the suspension of nine
employees, going on a six-hour tools-down strike at its Gurgaon plant, demanding revision of the
incentive-linked pay and threatened to fast to death if the suspended employees were not
reinstated. About this time, the NDA government, following a disinvestments policy, proposed to
sell part of its stake in Maruti Suzuki in a public offering.
The Staff union opposed this sell-off plan on the grounds that the company will lose a major
business advantage of being subsidized by the Government. The standoff with the management
continued to December with a proposal by the management to end the two-month long agitation
rejected with a demand for reinstatement of 92 dismissed workers, with four MUL employees
going on fast-unto-death. In December the company's shareholders met in New Delhi in an AGM
that lasted 30 minutes. At the same time around 1500 plant workers from the MUL's Gurgaon
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facility were agitating outside the company's corporate office demanding commencement of
production linked incentives, a better pension scheme and other benefits. The management has
refused to pass on the benefits citing increased competition and lower margins.
THE PRODUCTS OF MARUTI SUZUKI
1. Gypsy (launched 1985)
2. WagonR (Launched 1999)
3. Alto (Launched 2000)
4. Swift (Launched 2005)
5. Estilo (Launched 2006)
6. SX4 (Launched 2007)
7. Swift DZire (Launched 2008)
8. A-star (Launched 2008)
9. Ritz(Launched 2009)
10.Eeco (Launched 2010)
11. Alto K10 (Launched 2010)
12.MarutiErtiga(Launched 2012), seven seater MPV R3 designed and developed in India,
will compete with Toyota Innova, Mahindra Xylo, and

10

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

13. Maruti XA Alpha based compact SUV to compete with the Ford Eco Sport& Renault
Duster will be launched in the year 2014
14. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of
Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out three standard variantsAltos 800 Base, Alto 800 LX and Alto 800 LXi and three
CNG variants -Alto 800 CNG Base, Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8
liter of petrol engine is very fuel efficient and pushes the car to produce high class
mileage of 17 to 22 km per liter. The 45.7BHP of peak power produced by the engine is
also successful on road by delivering top-notch performance.
15. Maruti Suzuki Ertiga (Launched 2013)
16. Maruti celerio (Launched 2014)
17. Maruti Ciaz (Launched 2014)
Imported
1. Grand Vitara (Launched 2007)
2. Kizashi (Launched 2011)
Discontinued car models
1. 1000 (1990–2000)
2. Zen (1993–2006)
3. Esteem (1994–2008)

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4. Baleno (1999–2007)
5. Versa (2001–2010)
6. Grand Vitara XL7 (2003–2007)

MODEL AND PRICE OF THE PRODUCTS
Car Model

Ex-Showroom Price

Maruti Suzuki Alto 800
2.38 - 3.49 lakhs

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Maruti Suzuki Omni

2.41 - 2.47 lakhs

Maruti Suzuki Eeco

2.98 - 3.98 lakhs

Maruti Suzuki Alto K10

3.15 - 3.28 lakhs

Maruti Suzuki Wagon R 1.0

3.49 - 4.34 lakhs

Maruti Suzuki Celerio

3.76 - 4.79 lakhs

Maruti Suzuki Stingray

4.01 - 4.56 lakhs

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Maruti Suzuki Ritz

4.23 - 6.16 lakhs

Maruti Suzuki Swift

4.42 - 6.71 lakhs

Maruti Suzuki Swift DZire

4.85 - 7.32 lakhs

Maruti Suzuki Gypsy

5.79 - 5.93 lakhs

Maruti Suzuki Ertiga

5.80 - 8.49 lakhs

Maruti Suzuki SX4

7.15 - 9.54 lakhs

Maruti Suzuki Grand Vitara

22.68 - 24.61 lakhs

UPCOMING CARS OF MARUTI SUZUKI
FIG NO: 1

Maruti Ciaz
Estimated Price: 8, 00,000
Expected launch Date: Oct 2014
*

Its elegant design creates a superior aesthetic appeal while its aerodynamic style adds a stunning
effect to its looks. The Maruti Suzuki Ciaz truly sets the standards for the rest to aspire for. No
wonder when you’re behind the wheel, the only thing ahead is an open road.

FIG NO: 2

Maruti Suzuki iV-4
Estimated Price: 12, 00,000
Expected launch Date: Dec 2014
*

The sub-compact SUV is one segment that every automaker is eyeing at, especially after a great
response Renault Duster and Ford Eco Sport has received in the market. India's largest carmaker
Maruti Suzuki too is working on a sub-compact SUV, which many believe will be based on the
XA Alpha, unveiled at the 2012 Indian Auto Expo.

14

FIG NO: 3

Maruti MR Wagon
Estimated Price: 5, 00,000
Expected launch Date: Feb 2015
*

The Maruti Suzuki MR Wagon is a mini-MPV with a seating capacity of four passengers. It is a
typical Japanese hatchback with boxy proportions, which looks quite compact from the outside
and yet, is very spacious and comfortable on the inside. Powering the MR Wagon could be the
new K-Series 660cc MPFI petrol engine that will be coupled with a CVT transmission. If
launched in India, the MR Wagon could be offered in diesel and CNG options as well.

FIG NO: 4

Maruti Suzuki SX4 S Cross
Estimated Price: 10, 00,000
Expected launch Date: Mar 2015
*

The SX4 S-cross, which is already on sales in European markets is powered by 1.6 litre petrol
engine, which can churn out 120 PS peak power and 156 Nm peak torque and 1.6 litre MultiJet
engine, capable of generating 120 PS and 320
Gurgaon Manufacturing Facility
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The Gurgaon Manufacturing Facility has three fully integrated .All three manufacturing plants
and is spread over 300 acres (1.2 km2).All three plants have an installed capacity of 350,000
vehicles annually but productivity improvements have enabled it to manufacture 700,000
vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually.
The entire facility is equipped with more than 150 robots, out of which 71 have been developed
in-house. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy and
Eeco.
Manesar Manufacturing Facility
The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600
acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was
increased to 300,000 vehicles annually in October 2008. The production capacity was further
increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The
Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

Sales and service network
As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states
and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and
Maruti Authorized Service Stations) in 1,395 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,314 cities in India.
Service is a major revenue generator of the company. Most of the service stations are managed
on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have
not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help
many stranded vehicles on the highways by sending across their repair man to the vehicle.
Maruti Insurance
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Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The
service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.
This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.
Maruti Insurance offers special Motor Insurance products from leading Insurance Companies
like National Insurance, New India Assurance, ICICI Lombard, IffcoTokio, Royal Sundaram &
Bajaj Allianz.Maruti Insurance also ensures excellent customer service with utmost fairness and
transparency available to you across the country. No wonder, more than 90% customers buying a
Maruti Suzuki, prefer to buy a Maruti Insurance Policy for their car.
Maruti Finance
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and
Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in
securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak
Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in March
2003Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBIMaruti Finance is currently available in 166 cities across India.
Maruti Finance marks the coming together of the biggest players in the car finance business.
They are the benchmarks in quality and efficiency. Combined with Maruti volumes and
networked dealerships, this will enable Maruti Finance to offer superior service and competitive
rates in the marketplace".
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Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti
Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank
N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining
26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide.
Maruti claims that its finance program offers most competitive interest rates to its customers,
which are lower by 0.25% to 0.5% from the market rates.
Maruti True Value
True service offered by Maruti Suzuki to its customers, it is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this
service in India. As of 31 March 2010 there are 341 Maruti True Value outlets.
N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporate. Clients who have signed up of this service include Gas
Authority of India Ltd, DuPont, and Reckitt Benckiser, Sona Steering, Doordarshan, Singer
India, National Stock Exchange and Tran’s world. These fleet management services include endto-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience
services and Remarketing.
Accessories
Many of the auto component companies other than Maruti Suzuki started to offer components
and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories
to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems,
seat covers and other car care products. These products are sold through dealer outlets and
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authorized service stations throughout India.
Maruti Driving School
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical sessions.
Many international practices like road behavior and attitudes are also taught in these schools.
Before driving actual vehicles participants are trained on simulators.
"We are very concerned about mounting deaths on Indian roads. These can be brought down if
government, industry and the voluntary sector work together in an integrated manner. But we felt
that Maruti should first do something in this regard and hence this initiative of Maruti Driving
Schools.
Issues and problems
On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to
fix a fuel leakage problem. The company will replace the gaskets for all 100,000 A-Star cars.
Exports
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it
does not operate in the domestic Indian market. The first commercial consignments of 480 cars
were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki
crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects
government was keen to encourage. Every political party expected Maruti Suzuki to earn foreign
currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti
Exports.
Milestones:

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 2014: Maruti Suzuki announces global debut of ‘Celerio’ with revolutionary Auto Gear
Shift
 2013: Maruti Suzuki introduces stylish Stingray
 2012: India’s favorite car Maruti Suzuki Alto crosses the 20 Lakh sales mark
 2011: Maruti Suzuki India unveiled its much awaited sportier and stylish car, the all new
'Swift'.
 2011: On March 15, Maruti Suzuki India rolled out its 1 Crore (ten millionth) car. The
historic 1 Crore car, a Metallic Breeze Blue colored WagonR VXi (Chassis No 243899)
rolled out from the Company's Gurgaon plant.
 2010: Maruti Suzuki has been ranked India's most Trusted Brand in Automobile Sector
by India's leading Business newspaper The Economic Times.
 2009 – MSIL adopts voluntary fuel disclosure. First shipment of A–star leaves Mundra
Port–Jan 10.A–star bags,Zig wheels “car of the year award “A–star rated best small car of
the year–auto car–UTVi.
 2008 – World Premiere of concept A–star at 9th Auto Expo, New Delhi.
 2007 – Swift diesel launched. New car plant and the diesel engine facility commences
operations during 2006–07 at Manesar, Haryana.SX4–Luxury Sedan Launched with the
tag line “Men are black”.Maruti launches Grand Vitara.
 2006–J.D.Power Survey award for the sixth year.MSIL has changed its EMS from ISO
14001:1996 version to ISO 14001:2004 version w.e.f.1st July
 2005– MSIL was re–certified in 2005 as per ISO 14001:2004 standards.
 2004 – A new esteem launched –second successful facelift by Maruti engineers.
 2003 – Maruti gets listed on BSE and NSE.IPO (issue oversubscribed 11.2 times) New
Zen launched–first facelift by Maruti engineers.
 2002 – Divestment –Suzuki Motor Corporation (SMC) acquires majority stake in
MUL.Maruti Finance & Insurance launched.
 2001 – Turn around with profits Rs104.5 crore. Four new business–True
value,Insurance,Finance.Maruti Versa launched.Maruti True Value launched.
 2000 – Maruti alto launched. FirstCar Company in India to launch call center.IDTR
launched jointly with the Delhi government to promote safe driving habits.

CHAPTER 3
ORGANISATIONAL STRUCTURE

20

Maruti has believed, since the very beginning that it is its employees who could make it into an
organization with a difference .Accordingly, as against the traditional hierarchical
System of management, which causes unnecessary delays in decision-making, we have built up
a flat organization with a family type of atmosphere at our place of work.
The company is divided into different divisions according to the various functional areas. A
Divisional Manager heads each Division. Divisions are further divided into Departments that
are headed by Department Managers who report to the respective Divisional Managers.
Designations in the company are based on the functional responsibility and not levels as in
terms of the company’s philosophy designations and functional responsibility are de-linked
from the salary levels.
The total operations of the Company are divided into Divisions like Marketing & Sales, Spares,
Engineering, Q.A. & Services, Production, Production Engineering, Materials, Information
Services, Finance, Personnel & Administration, etc. Each division is furthering divided into
Departments and headed by Departmental Managers who is assisted by Supervisory Executives.
Across history, the people have made Maruti Suzuki a company ready to meet the challenges of
the dynamic auto market. The value discipline and punctuality, and obsess over maintaining a
safe and healthy work environment. Maruti Suzuki recruitment drives have chosen people with
an obsession to delight customers, and we leave them free to take decisions in complex
situations.
Beyond the work place, the company creates ample opportunities for growth, sports and
adventure – from motorsport to social volunteering with communities – the entire gamut helps
give an all-round perspective of life.

The hierarchy diagram of Maruti Suzuki
FIG NO: 5

21

Organizational structure represents the manner in which responsibility and authority are
distributed as well as how work procedures are executed within organizational arms. There are
several variables dictating the most suitable structure which is going to meet organizational
mission and vision at the long run. Centralization of power, hierarchy design and horizontal
22

incorporation are factors to consider while putting up an organizational structure. Another factor
of paramount importance in the design of optimal organizational structure is the core processes
of a firm. The structure is capable in reflect key processes of an organization starting from source
material to delivery of finished products. For any organization to achieve optimum results
possible, it is crucial to select structures which match predetermined objectives, features of
necessary processes and means of controlling those processes (Growth, 1999). Processes are very
fundamental to every organizational structure model. For example, information and decision
process are available in almost all subsections of the entire structure. Based on underlying roles
and purposes, organizational structure can be seen as body framework of the firm while
processes represents mental capability (Galbraith, 2002). Therefore there are two elements of any
organizational structures namely: processes and structure. It is therefore implicit that any
structure makes sense if it is based on required processes.
Maruti is characterized by functional organizational structure having Horizontal linkages. Based
on automotive engineering operations, the firm’s organizational structure has several divisions.
These encompass the following functions: Engineering, Sales, Finance, Spares, Administration,
New Business, Information Technology, Human Resource Development, Maintenance, Quality
Assurance and Parts Inspection. Being a large organization it is Maruti’s organizational chart is
further subdivided in to smaller sub sections depending on other criteria like location, plant,
product etc. Maruti has a total of 29 divisions operating under one Divisional Head who is
serving as Functional post in the structure. The structure further reveals that within these
divisions are 132 departments under stewardship of one departmental head. These Department
Head are also functional posts. This structure is designed on the same pattern as that of Japanese
Suzuki Motor Company which is Maruti’s partner. Human resource planning, plant layout and
installation of production facilities are intrinsic in nature to Suzuki Motor Company’s structure.

CHAPTER 4
FUNCTIONAL AREAS
23

DIVISIONS AND DEPARTMENTS
Human Resource Division


People

The human resource department recruits and selects staff for the business organization. They are
also responsible for staff training and welfare.
This function is concerned with insuring that processes are documented, employee records are
accurately maintained and safeguarded, employee get paid, employment adds are placed along
with many others daily activities that are essential to the smooth operation of a business. These
are very important functions that must be performed accurately, efficiently and in a timely
fashion.


Policies

When the HR function is viewed as a strategic partner, the HR head is an integral part of the
strategic decision-making process. Questions such as the potential availability of talent, the
ability to change employee behavior and an analysis of current skills are all considered in
making these important strategic decisions.


Systems and procedures

Business firms all have a strategic planning process. Some are more formal while in other
companies strategies emerge through a set of high level strategic decisions. Whichever the
approach, the top management teams (TMT) look to functional experts for advice. The TMT
would not consider taking on a new product, altering the competitive strategy, or any other large
scale strategic level change with consulting with its finance and marketing experts, but in many
firms it is only after a strategic plan is developed or and strategic change is announced does the
TMT turn to its HR head and says, make it so.

24

Production Division
• People
People who work in manufacturing and production don't just create products; they create them as
quickly as possible, as inexpensively as possible, and in the necessary quantities. Those working
in manufacturing and production know that time is money: The faster and better that they and the
machines around them work, the better their companies perform.
• Policies
Systems and controls engineers need to be expert computer programmers, able to design and
maintain the equipment that technicians use to interface with the manufacturing equipment-the
human-machine interface, the process engineer is the link between product design and
production. Process engineers work with manufacturing engineers and design engineers during
the product development process to make sure that the product being designed can be
manufactured effectively from both a technical and a financial standpoint
• Systems and procedures
A test engineer is the stickler of the manufacturing group. Here your job is to create and run
simulations to find problems in a manufacturing process. Senior positions in this area offer
opportunities to explore new ways of doing things: for example, rerouting conveyor belts or
switching or resequencing various production steps to enhance the process.

Marketing & Sales
This department creates awareness for the firm products and motivates consumers to buy. They
also carry out market research to identify customer’s needs
• People
Market research provides managers with current, relevant, accurate and reliable information
concerning competitors, advertising, distribution and potential and loyal customers. This

25

information assists managers in making decisions about packaging, product design, pricing,
distribution and advertising.
• Policies
Market research provides managers with current, relevant, accurate and reliable information
concerning competitors, advertising, distribution and potential and loyal customers. This
information assists managers in making decisions about packaging, product design, pricing,
distribution and advertising.
• Systems and procedures
Customers are entitled to these services once they have made a purchase. They include delivery,
installation and warranty. These services are free and therefore usually encourage consumers to
buy. This is the use of sales persons to present and sell goods and services of a firm. Sales
persons promote a firm’s goods directly to a specific consumer. They locate new customers,
provide display services, demonstrate the use of products, deliver goods, collect payments and
provide the firm with feedback
Finance Division
• People
People are the assets and have been instrumental in driving the Company's performance year on
year. Their passion, commitment, sense of ownership and team work has enabled the Company
to sustain its leadership position in the challenging market scenario of 2013–14. The Company
has always striven to offer a positive, supportive, open and high performance work culture where
innovation and risk taking is encouraged, performance is recognized and employees are
motivated to realize their true potential.
The Company hired and integrated 904 people into its workforce in the 201314. The Company
has 12,547 regular employees out of which 366 are women. The Company is an equal
opportunity employer and believes in recognizing merit and potential in the selection process.
There has been a continuous effort to increase the number of women employees in the
organization to bring diversity in terms of population mix, versatility and value addition.
26

• Policies
The Company constituted a CSR committee with Mr. R.C. Bhargava as its Chairman and Mr.
Kenichi Ayukawa and Mr. R.P. Singh as its members. Mr. R.C. Bhargava is Non–Executive
Chairman and Mr. R.P. Singh is an Independent Director.
The Company has complied with the corporate governance requirements, as stipulated under
clause 49 of the listing agreement and the stipulated certificate of compliance is contained in this
annual report.In accordance with the Accounting Standard – 21 on Consolidated Financial
Statements read with Accounting Standard – 23 on Accounting for Investments in Associates in
and Accounting Standard – 27 on Financial Reporting of Interest in Joint Ventures, the audited
consolidated financial statements are provided in the annual report.
• Systems and procedures
They have selected such accounting policies and applied them consistently and made judgments
and estimates that are reasonable and prudent so as to give a true and fair view of the state of
affairs of the Company at the end of the financial year and of the profit of the Company for that
period
The total project costs, priority, completion time and personnel’s required were estimated. Initial
plans were drawn up as to how the project would proceed to its final implementation, while
running the existing system so that company’s information needs were not affected.
In conformity with the directives of the Central Government, the Company has appointed M/s R.
J. Goel & Co., Cost Accountants, as the Cost Auditors under Section 148 of the Companies Act,
2013 read with the rule 14 of the Companies (Audit and Auditors) Rules, 2014 for the audit of
the cost accounts for the motor vehicles business for the year ending on 31st March 2015. The
cost audit report for the financial year 2012–13 was filed with the Ministry of Corporate Affairs
on 30th September 2013.

FIG NO: 6

27

Production Division of Maruti Suzuki India Limited

28

Production Division in Maruti Suzuki India Limited has been renamed as
Production Business Vertical (PBV) after inclusion of Projects, Production
Engineering, Vehicle Inspection & Supplier Quality Assurance divisions in it.

PRESS SHOP
The press shop can be regarded as the starting point of the car manufacturing
process. Centrally located between weld 1, weld 2 and weld 3 supplies
components to all the three plants. The press shop has a batch production system
whereas the plants have a line production system. The press shop maintains an
inventory of at least two days. The weld shop as per the requirements picks the
finished body parts from the press shop. These may be divided as A, B and C. ‘A’
components are large outer components as for example roof, door panels etc.
These components are manufactured in the press shop at Maruti due to design
secrecy and huge investment requirements. ‘B’ and ‘C’ components are
manufactured by joint ventures or bought from vendors.
Process flow of Press Shop activity:FIG NO: 7

29

Panel
Blank
Steel coil

1. Currently Press Shop is producing sheet metal components for 8 running
models of Maruti Suzuki and one model of GM India - Tavera
2. The Blanking and stamping shop processes 10000 metric ton of steel /
month i.e. 400 tons a day
Machine:


Five Transfer Press

(4000 ton , 3500 ton , 2400 ton -1 2400 ton -2 , 2000 ton

in terms of total capacity i.e. draw+trim+pierce+bend+restrike ) &1 Tandem
line( 1500 ton draw capacity)


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



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

FIG NO: 8

30

Press Machine: Mass production presses are continuous flow transfer presses. Set
of 4 to 5 dies are mounted on single press & complete panel comes out from press
after going through stamping, trimming & piercing.


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

SMED: “Single Minute Exchange of Dies” new concept being adopted. This
concept helps in changing of die set up within single digit minute (below 9
minutes) this helps us in improving machine utilization & operating efficiency.
Since press machines are very high cost investment & any idle time lost due to die
exchange will be a cost to company.

FIG NO: 9

31

UPPER

LOWER

Yield is improved by
1. Reducing the blank size
2. Utilization of scrap for making smaller sheet metal parts
Steel Coils


Steel coil is raw material used to make body sheet metal parts. These are CRS
coils made of mild steel having thickness from 0.65 mm to 0.8 mm & weight
from 1 ton to 4 tons.

FIG NO: 10

32



Steel coils are received in bulk quantities from indigenous as well as foreign
suppliers in the ratio of 60 to 40 & stored at a centralized storage & supplied to
blank cutting areas as per plan



Steel coils are fed to Blanking & ROSL lines by overhead EOT cranes. Sheet is
first de-coiled, cleaned, oiled & fed to cutting or shearing areas of blanking or
ROSL lines.

Blank


Coils are fed to blanking line & continuous supply of sheet to cutting dies result in
shaping of coils to plan blanks.



Blanks are cut by stamping or shearing process & are stacked one by one to form
large mass of blanks



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

FIG NO: 11

33

Panel
Blanks are supplied to press lines for pressing. Blanks are converted to body
panels by this process. Panels are stored in pallets which are supplied to Weld
Shops for making White Bodies.
FIG NO: 12

34

WELD SHOP
The body panels produced in the press shop and the other small components are joined here to
give the “white body” or “shell”. In a typical car body 1400 different components are welded
together. The weld shops have the following facilities.
 Welding jigs
 Spot welding guns
 Kawasaki welding robots
 Hemming machines
35

 Punching machines

PROCESS OUTLINE: The shop has different lines for different models, each of,
which is further divided into three parts:
UNDER BODY: Here different underbody panels are welded together. These
comprise of rear underbody, central underbody, and front engine room panel.
These underbodies are put on the conveyor and welded together to give the
underbody.
MAIN BODY: As the body moves on, the conveyor roof and side body panels
(prepared on the sub lines) are welded to it to give the main body. The chassis
number is punched on the cowl top and it is welded to the front engine room
panel.
WHITE BODY: The doors, hood and back door are attached on the main body
with the help of bolts and screws to make it a “white body”. The body is checked
for dent, burr and spatter and these defects are repaired. After inspection and
repairs the body is called WBOK. It is sent to the paint shop thereafter.

PAINT SHOP
FIG NO: 13

36

In the paint shop following processes are carried out: There are five plants/units that provide a uniform painting over the white body
coming from the weld shop. In paint shop all the models are painted on the same
line. The five units are: 

Pre-treatment (PT): The body is thoroughly washed to remove the dirt and oil scales.
Then the body is treated with ZnPO4 (phosphating) to prevent corroding of the body.



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



Sol-sealer and under coat:Here the left in the body (due to welding) are filled with solsealer to provide water proofing. Under coat is done on the surface above wheels to
prevent damage of body in that portion.

37



Intermediate coat:This is done by spray-painting method using 10 Kawasaki Robots.
After applying the coat, the body is dried in the oven. Painting done is basically an
intermediate coating to provide base for the final coat.



Top coat: This is done by spray-painting method using 20 Kawasaki Robots. For metallic
coating, double coats are applied and aluminum flakes are provided to shine the metallic
paints.

After inspection and touch up, the PBOK, i.e. the paint body ok is sent to the
assembly shop.
Inside portion of vehicle is painted manually and outside is by Robots.
ULTRA FILTRATION:
Ultra filtration is the process in which all the rinse pipes and dip tanks will be
filtered and cleaned, by this way water is recycled. Here Osmosis process is used
to filter water.
IC painting:
IC is intermediate coating in which 3 colors are used. They are white, blue and
red. Outside portion of vehicle is painted by robots and inside is done manually.
Paint thickness is taken care, after that vehicle is sent to IC oven. Oven
temperature is 198+/-5’C.

TOP COAT Painting:
Top coating is done after checking in Dry sanding II. There are 2 sub coatings
Base coat and Clear coat. Here 11 colors are used; 8 metallic and 3 solid. Only
metallic colors are coated with clear coating. Here also outside portion of vehicle
is painted by robots and inside is done manually.
Next vehicle will move to final inspection and will be sent to assembly.

38

ASSEMBLY SHOP

In the assembly shop the body is loaded on an overhead conveyor. As the conveyor moves the
body, fitments are made at various stations. There are three Assembly Shops named ASSY-1,
ASSY-2 and ASSY-3. Plant 2 and Plant 3 have similar setup but in Plant-1 there are separate
assembly lines for separate models. The assembly shop has a continuous production system. The
assembly line can be subdivided into the followings: -

(a) Trim line
The vehicle proceeds through a series of Trim workstations where team members begin by
installing weather stripping, moldings and pads. Then they put in wiring, vents and lights. After
an instrument panel, windows, steering column and bumper supports are added, it starts to look
less like a shell and more like a car.

(b) Chassis Line
This is where many safety-related items are installed. Things like brake lines,
torque, gas tanks and power steering are double-checked. The engine is installed,
along with the starter and alternator. Then come suspension and exhaust systems.
Then wheel is mounted with the help of wheel nut fastening machine.

(c)

Final Line

From there the vehicle enters Final 1, which covers many interior items such as
the console, seats, carpet, glove box and steering wheel. This is also where
bumpers, tires and the battery are added, as well as finishing touches like covers
and vents. Then, Coolant, Brake oil, Power steering oil are filled and also the A/C
gas are charged.

39

Features
Different assembly shop layouts are followed to reduce material handling operations & to
facilitate material flow between workstations.
a) Straight-line layout – Car &Omni line (Assy shop-1): Simplest layout in which material
enters at 1 end & leaves at the other end.
b) U shape layout – Assy shop 2 & 3: Receiving & shipping ends of line are at same end of
plant, due to material handling considerations (same forklift for both needs) or external
needs.
c) S shape layout – Esteem line (AS-1): Serpentine layout to fit longer assy line in square
shop.
Separate door Assy line: - Doors are taken out from the vehicle at the first station of the trim line.
Doors fitted in the final line make working easier.

OTHER SHOPS/DEPARTMENTS
MACHINE SHOP
The machine shop is the source of all major components for the engine assembly
shop. The un-machined crankshaft and camshaft forgings, transmission case
cylinder head and cylinder block castings are brought in the form of raw materials
from the vendors. The cylinder heads and transmission case are aluminum castings
while crankshaft and camshaft are steel forgings.
It has the following lines:
(a) Transmission case line
(b) Cylinder head line
(c) Cylinder block line
(d) Crankshaft line
(e) Camshaft line.
ENGINE ASSEMBLY
40

There are four types of engines which are assembled in the Engine Plant
1. FC Engine – Engine with cast iron block
a. M-800
b. Omni
c. Alto
d. Wagon-R
e. Zen Estillo

2. Aluminum Engine – Engine with aluminum block
a. Gypsy
b. SX4
c. Swift (Petrol)
d. Dezire (Petrol)

3. KB Engine (New series of engines with aluminum block)
a. A-Star
b. Ritz

4. Diesel Engine
a. Swift (Diesel)
b. Dezire (Diesel)
c. Ritz (Diesel)

41

CHAPTER 5
SWOTANALYSIS
SWOTanalysisisanextremelyusefultoolforunderstandinganddecision-makingfor
allsortsofsituationsinbusinessandorganizations.SWOT isan
acronymforStrengths,Weaknesses,Opportunities, and
Threats.TheSWOTanalysisheadingsprovide good frameworkforreviewingstrategy,
positionanddirectionofacompanyor business proposition, or anyotheridea.
FIG NO: 14

Maruti Suzuki is the market leader in India and has an amazing brand equity.
Maruti is known for the service it provides and is synonymous with Maruti 800
– the longest running small car in India. Here is a SWOT of MarutiSuzuki, its
strengths, weaknesses, opportunities and threats.

42

Strengths


Maruti Udyog limited (MUL) is in a leadership position in the marketwith a market share of
48.74



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



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



Maruti Suzuki recorded highest number of domestic sales with 9, 66,447 units from 7, and
65,533 units in the previous fiscal. It recently attained the 10million domestic sales mark.



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



There are around 15 vehicles in Maruti Product portfolio. Has good product lines with good fuel
efficiency like Maruti Swift, Diesel, and Altoetc.



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



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



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

Weaknesses


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



Government intervention due to having share in MUL.



Younger generations started getting a great affinity towards new foreign brands

43



The management and the company’s labor unions are not in good terms. The recent strikes of the
employees have slowed down production and in turn affecting sales.



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

Opportunities


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



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



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



New DZire from Maruti will capture the market share and expected to create the same magic as
Maruti Esteem(currently not available)



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



Economic growth of the country is constantly increasing and the government is working hard to
increase the GDP to double digit.

Threats


MUL recently faced a decline inmarketshare from its 50.09% to 48.09 % in the previous
year(2011)



Major players like Maruti Suzuki, Hyundai, and Tata has lost its marketshare due to many small
players like Volkswagen- polo. Ford has shown a considerable increase in market share due to its
Figo.
44



Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major threats to its
respective competitor’s segment



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



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

A SWOT analysis provides strategic insight on recommendations and opportunities for
small businesses to map out a strategic plan. As an actionable management tool, the SWOT helps
a small-business owner hone in on the right course of action to leverage the business's unique
characteristics. By turning threats into strengths, and matching strengths with opportunities, you
can make the most of your power in the current marketplace and maximize your chances of
success.

Vision:
Visions of any company are those values on which company works. As the MUL is started by
Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on
the other hand Suzuki’s participation ensures not only need of the profit, but of the need of
maximum profit. The only way for this Nora’s dilemma of selecting principals for company’s
working vision, was to maximize profit and reducing cost by maximizing output and sales hence
MUL declared its Vision as“The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder's
Wealth; eventually become a pride of India”

Mission:
Mission is the statement of an organization’s purpose, what it want to accomplish in the larger
environment and its goals which are specific, realistic and motivating. Missions are described
over visions and visions demand certain objectives. The main objectives/Missions of MUL are:

45

-Modernization of the Indian Automobile Industry.
-Developing cars faster and selling them for less.
-Production of fuel-efficient vehicles to conserve scarce resources.
- Production of large number of motor vehicles which was necessary for economic growth.
- Market Penetration, Market Development Similarly Product Development and Diversification.
- Partner relationship management, Value chain, Value delivery network.

GOALS



Building a continuously improving organization adaptable to quick changes



Providing value and satisfaction to the customer



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



Maximizing Shareholder's value



Being a responsible corporate citizen.

The objectives of Maruti Suzuki then were:

46

•
•
•

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

•
•
•
•
•

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

•
•




Raise the market share of Maruti Suzuki in the A3 segment
To increase awareness of the quality improvements that are made in the car
To implement this ambitious target from ground-up in India
The company plans to make India a global manufacturing hub for Suzuki.
The mega strategy would also check the growing competition from traditional rivals
and new global players like Nissan, Volkswagen, Renault and Fiat that have eating
into its pie.

CHAPTER 6
RECOMMENDATIONS
At the end of the Organizational study, I would like to make a few recommendation for the
Maruti Suzuki.

1. Maruti Suzuki has to launch a rash initiative with the help of some management consultancy. It is
leant that the cost incurred by a customer on a car over its entire life cycle can be divided into
three parts.
a) Price at point of purchase.
b) Cost of fuel used throughout the life of the car.
c) To increase its revenue Maruti Suzuki already operates in the first of the two, it should now
aggressively look at the third game plan. The third game plan should be working out a game plan
for possible entry into the finance and non- manufacturing areas like.
a) Non-life Insurance business.
b) Re-look at its existing Auto-finance business.
c) Leasing to co-operative customers.
Non-manufacturing activities such as these will account of 3.9% of its turnover in its coming
financial year.
2) Improvement in the market share in Maruti Suzuki. This can be done by using the Maruti
800 in semi urban and rural areas. Better model of Maruti Suzuki should be implemented to try

47

to convert more chunk of two wheeler buyer’s to Maruti 800,will definitely increase Maruti
Suzuki’s net profit.
3) The price fixation of Maruti Suzuki cars should be made keeping an eye on the price fixed by
its competitors. It should introduce dozen variants with more colors. So that there is at every
price point of Rs. 20,000.It should offer too many options that more than half the cars present in
the segment are Maruti offerings.

SUGGESTIONS
I would like to make a few suggestions for the Maruti Suzuki.
1) Maruti Suzuki needs to introduce new models like the Maruti Suzuki cruse and Ignis in India
and communicate how such cars could match new generation rival feature.
2) Maruti Suzuki should improve its existing service network by setting up a chain of company
owned state-of-art stations across India. The number of service stations at the highways should
also be increased.
3) Maruti Suzuki lacks luxury in its cars. The economy of the India is rising and its purchasing
power.
4)It pays to listen to your employees, literally. Maruti Suzuki India, the country's largest car
maker, could save a handsome Rs 354 crore in FY13 by paying heed to their workers'
suggestions to improve productivity and cut wastage.
5)The target customers should be the teenagers and 40 and above
6) Wagon R needs work on mileage, Engine, seat comfort and the price.
7)Alto is rated good but need to improve its driving comfort.

48

8) Swift is a good car, all its features are really good except for the seat comfort or the rear seat
which needs some leg space.
9) The service and spare parts are really good but the accessories available for the Maruti Suzuki
cars don’t look so good. Whole new rage of accessories is needed to be introduced for the Maruti
Suzuki models.

CONCLUSION
The Maruti Suzuki has a huge market and has left no stone unturned to satisfy the customers. It
has models in every Segment of the automobile market.
Maruti Suzuki stands for value as much as it stands for performance.
In spite of rising input costs, the company tries their best to keep prices down. Their running
costs and resale values are Unbeatable too.
Competitive strategy of this company facilitated healthy profit and customer satisfaction and it’s
Recognition as a company which stands for environmental concerns. Nothing matches the
delight their cars deliver. In Fact, customer they don’t buy a Maruti Suzuki, they invest in it.

49

CHAPTER 7
BIBLIOGRAPHY
TEXT BOOKS:

1.

Principles of marketing: -PHILIP KOTLER
(Himalaya publications)

2.

Marketing management: -APPANAIAH AND REDDY
RAMANATH
(Himalaya publications)

MAGAZINES:
1. Outlook Magazine
2. Auto India Magazine
WEBSITES:
50

1. www.marutiudyog.com
2. www.indiacars.com
3. www.autoindia.com

51