1

A PROJECT REPORT
ON
STUDY AND ANALYSIS OF MARKETING
STRATEGIES
OF MARUTI UDYOG LTD (MUL)

Submitted in partial fulfillment of the requirements for
the award of the
Bachelor of Business
Administration

Submitted by
Meer Musab Ali

UNDER THE ABLE GUIDANCE OF
DR. Faraz Ahmad


AL- BARKAAT INSTITUTE OF MANAGEMENT
ANOOPSHAHR ROAD
ALIGARH (INDIA)
2007 2008

JAMIA HAMDARD
HAMDARD UNIVERSITY
Accredited by NAAC in A Category
New Delhi, India
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ACKNOWLEDGEMENT

We take the opportunity to express our profound feeling of
gratitude to the almighty GOD whose strength and support
helped us each step in completing these.
It is our pleasant duty to offer our sincere acknowledgement to
those honorable personalities of the department who have been a
constant source of help and encouragement in carrying out this
project.
First I would like to thanks to DR. Faraz Ahmad for this
guidance, suggestion and encouragement.
I am also thankful to MR. ASIM and Mr. MAZHAR for their
guidance and encouragement. They have been an adherent
source of help and inspiration to us. This project could not have
been successfully have been completed without their guidance
and instruction.
I am grateful to MR. SAIF AZAM the coordinator of JHSC
for his counsel during the whole session.
Words fail us in expressing our regard to our parents who are
the source of encouragement and inspiration in our life.

MEER MUSAB ALI
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INTRODUCTION
India is one of the most important emerging car economies in the world today.
Premier Automobile Ltd. (PAL) earned the distinction of manufacturing the first car
in the country. Hindustan Motors (HM), which started as a manufacturer of auto
components graduated to manufacture cars in 1949. Thanks to the Licence Raj which
restricted foreign competitors to enter the Indian car market, Indian roads were ruled
by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for
many of the initial years.
The control imposed on car makers related to production capacity and
distribution. The GOT control even extended to fixation of prices for cars and dealer
commissions. The three decades of the passenger car industry in India up to the early
1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this
period was limited to two models Ambassador and Padmini. It was only in 1981,
after the entry of Maruti Udyog, that the car makers were given a free hand to fix the
prices of cars, thus, effectively abolishing all controls relating to the pricing of the end
product.
In the early 80's, a series of liberal policy changes were announced marking
another turning point for the automobile industry. The very face of the industry was
changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint
venture with the Suzuki Corporation of Japan.
Maruti Udyog Ltd introduced 'Maruti 800' in 1983 providing a complete face
lift to the Indian car industry. The car was launched as a "Peoples car" with a price
tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was
well accepted by middle income families in the country. Many companies have
entered the car manufacturing sector, to tap the middle and premium end of car
industry. The new entrants are Daewoo (Matiz), Tata (Indica) and Hyundai
(Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi,
Honda and Fiat has entered the mid-sized car segment and Mercedes-Benz is in the
premium end of market.
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OBJECTIVE OF THE STUDY
To analyze the:
Marketing Strategy of MUL
To conduct a detailed SWOT Analysis
To know the position and segments in which the whole market is divided
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Evolution of the Indian Passenger Car industry:
During 1960s and the 1970s there were only two manufacturers in
the market, Hindustan Motors and Premier Automobiles with limited
production capacities. The import of passenger cars was restricted to
the State Trading
Corporation (STC) and foreign diplomats. During that period the
passenger car industry in India grew at a nominal CAGR of
approximately 3.6%. The rate
of customs duty levied on cars was 225%.

Marutis entry into the Indian Passenger Car Market:
MUL was the result of the joint venture created in February 1981
between Japan's Suzuki Motor Company and the Indian Government
when the latter decided to produce small, economical cars for the
masses. The intention of the venture was to produce a 'people's car'.
To get the project off the ground MUL took over the assets of the
erstwhile Maruti Ltd., which was set up in 1971 and closed in 1978. It
was on December 14, 1983 that MUL launched the first Maruti vehicle
- the Maruti 800. The first model was the SS80, a 796cc hatchback
car priced at Rs. 47,500. Subsequently, in spite of price hikes, the car
has remained within the reach of the Indian middle class and has been
a runaway success. Available in vibrant colures when India's passenger
car population comprised mainly Ambassadors and Fiats in black and
white, M800 gave Indians the first taste of global quality and
reliability. In late1980s, Suzuki increased its equity stake in MUL from
26% to 40% and further to 50% in 1992, converting Maruti into a
non-government company. In the years that followed, MUL
consolidated its position with a line of Indian classics, such as the
eight-seat Omni, the rough-terrain Gypsy, and, in October 1990, a 3-
box Maruti 1000. MUL took the lead in the green drive by launching
its CNG-run Omni and Maruti 800 in 1999. MUL redefined the premium
compact segment with the launch of the Zen in October 1993. It was
the company's first 'world car, selling across multiple markets. A year
later, the Zen had won several awards, including 'No. 1 car in Europe'
(Auto Week, 1994), 'No.1 import in Europe' (1997) and 'most fuel -
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efficient car' (ADAC). In 1999, MUL launched Baleno and WagonR.
Baleno targeted the premium mid-segment while WagonR was
positioned as a multi-activity vehicle. In1999, to improve customer
satisfaction, it even established a chain of model workshops and soon
after, set up customer call centers in the metros. In 2000, Maruti
Suzuki introduced Alto - a premium small car targeting the export
market - and in October 2001, Versa, a multipurpose vehicle. In May
2002, Suzuki took management control of Maruti. In April 2003, MUL
rolled out its latest offering, the Grand Vitara XL -7, a luxury SUV
imported from Suzuki Motor Corporation. The Grand Vitara was a
concept that was radically different from the models that comprised
the bulk of MUL's sales. Since 1980 with its product excellence,
operational efficiency and customer intimacy Maruti Suzuki has been
the leader in Indian passenger car market. Main objectives of MUL as
set forth in their Memorandum of Association are: 1.To acquire and
take over from GoI the right, title, and interest in relation to the
undertakings of Maruti Ltd. As provided for in the appropriate
enactment of GoI together with the liabilities of GoI so far as they
are related to the Undertakings of the Company.
2. To carry on the business of manufacturers of, and dealers in,
automobiles, motorcars, lorries, buses, vans, motorcycles, cycle-cars,
motor, scooters, carriages, amphibious vehicles, and vehicles suitable
for propulsion on land, sea, or in the air or in any combination thereof
and vehicles of all descriptions (all hereinafter comprised in the term
motor and other things), whether propelled or assisted by means of
petrol, diesel, spirit, steam, gas, electrical, animal, or other power,
and of internal combustion and other engines, chassis -bodies and
other components, parts and accessories and all machinery,
implements, utensils, appliances, apparatus, lubricants, cements,
solutions enamels and all things capable of being used for, in, or in
connection with manufacture, maintenance, and working of motors and
other things or in the onstruction of any track or surface adapted for
the use thereof.
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3. To carry on the business of garage keepers and suppliers of and
dealers in petrol, electricity and other motive power for motors and
other things.
4. To carry on in the business of iron founders, mechanical engineers,
and manufacturers of machinery, to ol makers, brass founders, metal
workers, boiler makers, mill rights, machinists, iron and steel
converters, smiths,
wood workers, builders, electroplaters, chromium platers, lacquerers,
enamellers, painters, metallurgists, electrical engineers, and printers
and to carry on any branch of manufacturing and engineering business.

Share Holding Pattern After MUL IPO:








Dynamics of Market:

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Initially Maruti was operating in the market which was the part of a
closed economy but with the opening of economy market scenario has
changed dramatically and is at an interesting juncture where both
challenges and opportunities are immense. According to the statistics
available, Indian car market is one of Asia's largest and most
competitive markets. Over 1,030,068 passenger cars, multi and sports
utility vehicles were sold during 2003/04 resulting in the market
growth of about 32%. With such immense growth opportunity the
Indian automobile market has finally caught the fancy of big players
which are eager to capture the India automobile market at any cost.
And as such Maruti is having a tough competition from the new
players, including Hyundai, GM and Honda of Japan.In the last quarter
of 1998 these new entrants in the market had launched an
unprecedented assault on the B segment of the market.
Daewoo launched the Matiz
Hyundai launched the Santro. Santro Xing specially created a fresh
excitement in the B segment.
Telco launched the Indica
Around the same time, Fiat slashed the prices of its Uno and
launched a Diesel variant. Hyundai has also launched Getz.
General Motors is also planning to launch new variants.
Fiat has reworked the engine of the Palio and is planning to launch
another B segment product.
And then, there are Honda and Toyota.
It is also predicted that Honda Motors India will be also launching its
small car, Life, in India.
Along with the intense competition there are other factors which have
made the conditions orse for Maruti
After almost 18 years, the 800 is on its last legs. This is
particularly important as Tata Motors is serious about an entry-level
car at Rs 1 lakh.
Over the years, MUL's brand value had begun to erode. It is seen as a
small-car maker only.
Maruti was having nothing to offer to the booming market for
people carriers in India - Sumo, Qualis, et al. For this segment Maruti
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launched Versa. Launched as a higher end alternative to the Omni, it
was expected to click. But the Versa bombed. Launched with sales
expectations of a 1,000 units every month, it did about 100.
The other launch, the Baleno, went up against the Hondas and the
Mitsubishis, and lost money from Day One.
In an industry where cars get minor facelifts every year, a major
reworking every two to three years, and are replaced every four or so
years, the Zen has remained almost unchanged since 1993.
It seems that even consumer are having problem equating Maruti
with premium.
Since MUL had exhausted all of Suzuki's high -end products, it is
finding itself unable to cope with the frequent upgrades and
relaunches.
Even when the government's stake in Maruti has come down, the
interference will not decrease as seen with other institutions like
VSNL and MTNL.
Considering Hyundai's emerging status in the Indian market and the
lack of government involvement, it could turn out to be a better pick
than Maruti.
Maruti is also facing problems linked to its higher end mid-sized
(segment C) models. Maruti's share in this segment has fallen from 30
per cent in 1999-00 to 16 per cent in 2002-03.Maruti currently has
three cars in segment C -- Esteem, Versa and the Baleno, of which the
latter two have still to make a mark.
Maruti Suzuki is also having great difficulty in keeping its profit
growing as A segment, in which Maruti Suzuki is the only player has
margins as low as 1-2% (Rs 2,000 to Rs 4,000 per car). As a result in
recent years Maruti Suzuki has been consistently been losing out to
other players like Hyundai and Telco in the compact car segment and
has been reduced to the arginal player in all segments above B.
Talking in terms of absolute figures Maruti Suzuki's share declined
from 61.2% in 1999 to 54.6% in 2003 and finally to 51% in 2005. Its
volumes have dropped from 3.53 lakh to 3.30 lakh even as total
industry volumes (cars and utility vehicles) have shown a compounded
annual growth rate of 5 %.
10







Industry & MUL passenger car volumes in India



The above graphs clearly show the blood bathed condition of MUL.
They are clearly showing that if MUL has to continue with its position
of being market leader it has to take some of the big steps.
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COMPANY PROFILE
Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be
honoured with an ISO 9000:2000 certificate. The company has a joint venture with
Suzuki Motor Corporation of Japan. It is said that the company takes only 14 hours to
make a car. Few of the popular models of MUL are Alto, Baleno, Swift, Wagon-R
and Zen.
Year of Establishment February 1981
Vision "The Leader in The Indian Automobile Industry,
Creating Customer Delight and Shareholder's Wealth;
A pride of India."
Industry Automotive - Four Wheelers
Listings & its codes BSE - Code: 532500
NSE - Code: MARUTI
Bloomberg: MUL@IN
Reuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor
Corporation, of Japan in October 1982.
Registered & Corporate
Office
11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Works Palam Gurgaon Road
Gurgaon -122015
Haryana, India
Tel.: +(91)-(124)-2340341-5, 2341341-5
Website http://www.marutiudyog.com/
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Maruti Udyog Limited (MUL) was established in
Feb 1981 through an Act of Parliament, to meet the
growing demand of a personal mode of transport
caused by the lack of an efficient public transport
system.
Suzuki Motor Company was chosen from
seven prospective partners worldwide. This was due
not only to their undisputed leadership in small cars but also to their commitment to
actively bring to Maruti Udyog Limited contemporary technology and Japanese
management practices (which had catapulted Japan over USA to the status of the top
auto manufacturing country in the world) (http://en.wikipedia.org/wiki/
Maruti_Suzuki#cite)
A license and a Joint Venture agreement was signed between Government of
India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982.
The objectives of MUL then were:
Modernization of the Indian Automobile Industry.
Production of fuel-efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles which was necessary for
economic growth.
SMC and MUL have drawn up an investment plan of Rs 9000 crore in India
upto2010.
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Maruti Suzuki plant in Gurgaon
Maruti Suzuki is one of India's leading automobile manufacturers 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 Indian government held an initial
public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of
India sold its complete share to Indian financial institutions. With this, Govt. of India
no longer has 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 Premier Padmini were both around 25
years out of date at that point. Through 2004, Maruti has produced over 5 Million
vehicles. Marutis are sold in India and various several other countries, depending
upon export orders. Models similar to Marutis (but not manufactured by Maruti
Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian
countries(http://www.earthtimes.org/articles/show/171202.html).
The company annually exports more than 50,000 cars and has an extremely
large domestic market in India selling over 730,000 cars annually. Maruti 800, till
2004, was the India's largest selling compact car ever since it was launched in 1983.
More than a million units of this car have been sold worldwide so far. Currently,
Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.
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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. Till recently the term
"Maruti", in popular Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of
Japan, has been the leader of the Indian car market for over two decades.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar
south of New Delhi. Marutis 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 cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti.
The rest is owned by the 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 cars are on Indian roads since the first car was
rolled out on 14 December 1983.
Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto,
Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand
Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara
is imported from Japan as a completely built unit (CBU), remaining all models are
manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzukis technical superiority lies in its ability to pack
power and performance into a compact, lightweight engine that is clean and fuel
efficient.
Maruti is clearly an employer of choice for automotive engineers and young
managers from across the country. Nearly 75,000 people are employed directly by
Maruti and its partners.
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The company vouches for customer satisfaction. For its sincere efforts it has
been rated (by customers) first in customer satisfaction among all car makers in India
for ten years in a row in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a minor
partner to make a people's car for middle class India. Over the years, the product
range has widened, ownership has changed hands and the customer has evolved. What
remains unchanged, then and now, is Marutis mission to motorise India.
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Partner for the joint venture

Suzuki Swift
Pressure started mounting on Indira and Sanjay Gandhi to share the details of
the progress on the Maruti Project. Since country's resources were made available by
mother to her son's pet project. A delegation of Indian technocrats was assigned to
hunt 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 (http://en.wikipedia.org/wiki/ Maruti_Suzuki#cite).
In the initial rounds of discussion the giants had their bosses present and in the
later rounds related to the technical discussions executives of these automobile giants
were present. 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) egos and also convinced them about the sincerity
of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government
about its sincerity on the project. 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 helped Suzuki conscientiously nurse Maruti
through its infancy to become one of its flagship ventures.
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Joint venture related issues
Relationship between the Government of India, under the United Front (India)
coalition and Suzuki Motor Corporation over the joint venture was a point of heated
debate in the Indian media 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 a tenure of
five years.
Initially R.C.Bhargava, was the 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. Later in 1987 he was promoted as Chief General Manager, 1988
as Director, Productions and Projects, 1989 Director, Materials and in 1993 as 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 that Mr. Bhaskarudu 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
indigenise 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 indigenise gear boxes then Maruti Suzuki would have been able to
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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 relation strained when Suzuki Motor Corporation moved to Delhi High Court to
bring a stay order against the appointment of Mr. Bhaskarudu. 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, Jagdish Khattar,
Executive Director of Maruti Udyog Limited would assume charges as the Managing
Director. Many politicians believed, and had stated in parliament that the Suzuki
Motor Corporation is unwilling to localize manufacturing and reduce imports. This
remains true, even today the gear boxes are still imported from Japan and are
assembled at the Gurgaon facility.

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-
Star, Suzuki's fifth global car model, was designed and is made only in India.
Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is
also Suzuki's leading research and development arm outside Japan

Industrial relations
For most of its history, Maruti Udyog had relatively few problems with its
labour force. Its emphasis of a Japanese work culture and the modern manufacturing
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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 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 subsidised 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 a 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 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.







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SERVICES OFFERED
Current sales of automobiles
1. Maruti 800: Launched 1983

2. Maruti Omni: Launched 1984

3. Maruti Gypsy: Launched 1985

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4. Maruti Alto: Launched 2000

5. Maruti Wagon-R: Launched 2001


6. Maruti Grand Vitara Launched 2004

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7. Maruti Suzuki Swift: Launched 2005

8. Maruti Swift Dzire: Launched 2008

9. Maruti Suzuki A-STAR: Launched 2008

23
10. Maruti Suzuki Ritz: Launched 2009


11. Maruti Suzuki Zen Estilo: Re-launched 2009

12. Maruti Suzuki SX4: Re-launched 2009

24
13. Maruti Suzuki Eeco: Launched 2010


Obsolete Car Models
y Maruti Esteem


y Maruti Baleno

25
y Maruti Versa

Authorized service stations
Maruti is one of the companies in India which has unparalleled service network. To
ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed
Authorized service stations and 30 Express Service Stations on 30 highways across
India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti trains the local staff. Other automobile
companies have not been able to match this benchmark set by Maruti. The Express
Service stations help many stranded vehicles on the highways by sending across their
repair man to the vehicle. (http://en.wikipedia.org/wiki/ Maruti_Suzuki#cite)


Maruti insurance
Launched in 2002 Maruti 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 Finance
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To promote its bottom line growth, Maruti launched Maruti Finance in January 2002.
Prior to the start of this service Maruti 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 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 2003

Since March 2003, Maruti has sold
over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti 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".
Jagdish Khattar, Managing director of Maruti Udyog Limited in a press
conference announcing the launch of Maruti Finance on 7 January 2002
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 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 Udyog holds the remaining 26%.

GE Capital, HDFC and
Maruti Udyog Limited 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 is the best car in the
world

Maruti TrueValue
Maruti True service offered by Maruti Udyog to its customers. It is a market place for
used Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles with the
help of this service in India

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N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Its impressive list of clients who have signed up
of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona
Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This
fleet management service include end-to-end solutions across the vehicle's life, which
includes Leasing, Maintenance, Convenience services and Remarketing.

AWARDS & ACCOLADES
2010 y Maruti Suzuki manufactures 10 lakh units in 2009-10.
2009 y Maruti Suzuki Swift becomes fastest to reach 3-lakh milestone.
y Maruti Suzuki A-star breaks own record of fuel efficiency.
y Maruti Suzuki wins 'Golden Peacock Eco-Innovation Award'.
y Haryana allots 700 acres to Maruti Suzuki for hi-tech R&D
complex at Rohtak.
y Maruti Suzuki ships out 100000th A-star in less than a year.
y ICSI awards top honours to Maruti Suzuki for corporate
governance.
2008 y Maruti Suzuki becomes the first Indian car company to export
half a million cars.
y Maruti Suzuki Ranks Highest in Automotive Customer
Satisfaction in India For Ninth Consecutive Year.
y Maruti Suzuki moves A-star for Europe on Auto Wagons .
y Maruti Suzuki displays Fuel Efficiency of its 12 brands from
the New Year .
2007 y Maruti Alto becomes first car in India to cross 2 lakh domestic
sales in a fiscal.
y Maruti Suzuki MD conferred a Doctorate (Honorary) by
London Metropolitan University.
28
y Global launch of Concept Car from Maruti Suzuki
y Maruti's highest ever sales.
2006 y UGS Asia Pacific PLM Excellence Award Grand Prize.
y Maruti and Magma in pact for financing cars .
2005 y Number one in JD Power SSI for the second consecutive year.
y Number one in JD Power CSI for the sixth time in a row - the
only car to win it so many times.
y M800, WagonR and Swift topped their segments in the TNS
Total Customer Satisfaction Study Leadership in the JD Power
Initial Quality Study - Alto number one in its segment for the
2nd time in a row, Esteem number one in its segment for the 3rd
year in a row, Swift number one in the premium compact
segment.
y WagonR and Esteem top their segments in the JD Power
APEAL study.
y TNS ranks Maruti 4th in the Corporate Reputation Strength
(CSR) study (#1 in Auto sector)-Feb 05.
y Maruti bagged the "Manufacturer of the year" award from
Autocar-CNBC (2nd time in a row)-Feb 05.
y First Indian car manufacturer to reach 5 million vehicles sales.
y Business World ranks Maruti among top five most respected
companies in India-Oct 04.
y Maruti ranked among top ten (Rank7) greenest companies in
India by Business Today - Sep '04
2004 y Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in
Sales Satisfaction No.1 in Product Quality (Esteem and Alto)
and No. 1 in Product Appeal (Esteem and Wagon R).
y No. 1 in Total Customer Satisfaction (Maruti 800, Zen and
Alto).
y Business World ranked us among the country's five most
29
respected companies.
y Business World ranked us the country's most respected
automobile company.
y Voted Manufacturer of the year by CNBC.
y Voted one of India's Greenest Companies by Business Today-
AC Nielson ORG-MARG.

MILESTONES
1981 y Maruti Udyog Ltd. was incorporated.
1982 y Steped into a JV with SMC of Japan.
1983 y Maruti 800, a 796 cc hatchback, India's first affordable car was
produced.
1984 y Installed capacity reached 40,000 units. Omni, a 796 cc MUV
was in production.
1985 y Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
1986 yProduced 100,000 vehicles (cumulative production).
1987 y Exported first lot of 500 cars to Hungary.
1988 y Installed capacity increased to 100,000 units.
1992 y SMC increases its stake to 50 per cent.
1994 y Produced the 1 millionth vehicle since the commencement of
production.
1995 y Second plant launched, the installed capacity reached 200,000
units.
1996 y Launch of 24-hour emergency on-road vehicle service.
1997 y Produced the 2 millionth vehicle since the commencement of
production.
1998 y Launch of website as part of CRM initiatives.
30
1999 y Launch of Maruti - Suzuki innovative traffic beat in Delhi and
Chennai as social initiatives.
2000 y IDTR (Institute of Driving Training and Research) launched
jointly with Delhi government to promote safe driving habits.
2001 y Launch of customer information centers in Hyderabad,
Bangalore, and Chennai.
2002 y SMC increases its stake to 54.2 per cent.
y Launch of Maruti Finance with 10 finance companies in
Mumbai.
y Start of Maruti True value in Mumbai.
2003 y Production of 4 millionth vehicle.
y Listed on BSE and NSE after a public issue oversubscribed 10
times.
2004 y Maruti closed the financial year 2003-04 with an annual sale of
472122 units, the highest ever since the company began operations
20 years ago.
2005 y The fiftieth lakh car rolls out in April, 2005.
2006 y Maruti and Magma in pact for financing cars .
2007 y Maruti starts driving and Technical Training Institute for Tribal
Youth.
2008 y Maruti Suzuki inks agreement with Mundra Port for a mega car
Terminal for Exports.
2009 y Maruti Suzuki launched premium hatchback Ritz on May 15.
2010 y Maruti Suzuki manufactures 10 lakh units in 2009-10.

31
Car Market Classification:
Before going further it is necessary to understand the Indian car
market classification and the segments in which
MUL operates.
There are two principal systems of classification in the Indian
passenger car industry:

Price Based Classification
Price based classificati on is the widely accepted classification basis in
the Indian passenger car industry.
The different price segments used by Maruti were as follows:
1. Segment A cars priced lower than Rs. 300,000
2. Segment B cars priced between Rs. 300,000 and Rs. 500,000
3. Segment C cars priced between Rs. 500,000 and Rs. 1,000,000
4. Segment D cars priced between Rs. 1,000,000 and Rs. 2,500,000
5. Segment E cars priced above Rs. 2,500,000


Length Based Classification:
In April 2002, SIAM introduced a new segmentation of cars on the
basis of the length of the cars, in order to
establish a uniform industry standard. The new segmentation of
passenger vehicles is as follows:
1. Passenger cars
Segment A1 (Mini) cars having a length up to 3,400mm
Segment A2 (Compact) cars having a length of 3,401- 4,000mm
Segment A3 (Mid-size) cars having a length of 4,001- 4,500mm
Segment A4 (Executive) cars having a length of 4,501- 4,700mm
Segment A5 (Premium) cars having a length of 4,701- 5,000mm
Segment A6 (Luxury) cars having a length of more than 5,000mm
2. Utility vehicles
Weight upto 3.5 tonnes
a) Seating capacity not exceeding 7 (including dr iver)
b) Seating capacity between 7 and 9 (including driver)
Weight up to 5 tonnes
32
a) Seating capacity not exceeding 13 (including driver)
Multi-purpose vehicles (Weight upto 3.5 tonnes).
Certain Figures about MUL:


33



34
Factors Determining Competition in
the Indian Passenger Car Industry

Price
Brand image
Product performance
New model launches
Distribution network
After sales support.
The availability of value-added after sales services.

Factors Affecting Demand for Indian Passenger Cars

Demand for cars depends on a number of factors. The key factors
affecting demand for passenger cars in India are:
Fuel costs
Prices of cars
Per capita income
Introduction of new models
Incidence of duties and taxes
The quality of road infrastructure.
Availability and cost of consumer financing

PRODUCTS OF MUL

y Maruti 800
y Maruti Esteem
y Maruti Omni
y Maruti Versa
y Maruti Zen
y Maruti Suzuki Zen Estilo
y Maruti Alto
y Maruti Grand Vitara XL-7
35
y Maruti Suzuki SX4
y Maruti Vitara
y Maruti Suzuki A-Star
y Maruti Suzuki Ritz new
y Maruti Baleno
y Maruti Gypsy King
y Maruti Swift
y Maruti Wagon-R
y Maruti Suzuki Swift Dzire

Maruti Suzuki 800
Change Your Life






Maruti 800 - the first
choice for all those who want a 'value for money car' that is little on pocket and big in
performance. Maruti 800 is safe, economical and easy to drive car(with a small
turning radius of 4.4 m) in congested road conditions. Since its launch in December
1984, Maruti 800 has gone through various changes in styling,
Structure and technology.

For years Maruti 800 has remained the right opening car for people who look
for low cost of ownership and fuel efficiency. It is a car perfectly made for the Indian
36
roads. It goes in any location, be it in town, around town, highways, busy streets,
narrow lanes anywhere and everywhere.
In order to make the car more attractive, new engine has been installed in M800. The
M800 E 2 AC has been a major success.
Striking Features
y Sleek
y Slim dimensions.
y Short turning radius of 4.4 m.
y Unbeatable purchase price.
y Hassle-free maintenance.
Model Variants
y Maruti 800 Std - Bharat III
y Maruti 800 AC - Bharat III
y MARUTI 800 MPI BS III STD (WITH IMMOBILISER)
y MARUTI 800 MPI BS III AC (WITH IMMOBILISER)
Color Variants
y Super White
y Silky Silver
y Bright Red
y Blue Blaze
Awards and Accolades
Maruti 800 stands tall as the most preferred automobile brand of over 23 lakh
customers across India by the Awaz Consumer Awards'06.


Maruti Suzuki Esteem
Welcome to The Big World
37







With big space, big comfort and big performance, Maruti Suzuki Esteem is really a
big car in mid-sized sedan segment. Launched in the year 1994 Maruti Suzuki Esteem
has won lots of laurels for host of standard safety and technologically advanced
features. Sporty from outside, roomy and plush from inside and modernised in safety
measurements, Maruti Esteem offers its occupants a big luxurious driving pleasure at
a small price.
In the mid-sized sedan cars of India, Maruti Suzuki Esteem holds a prominent
place for its host of power packed performance and safety features. Maruti Esteem
wears a fresh look with smooth lining sophisticated body structure which has been
complimented nicely with the comfy and spacious interiors. Plush fabric upholstery,
center console box, molded floor carpets, remote operated fuel tank lid, door pockets,
air flow controls, convenient lighting arrangements, sporty looking instrument panel
are among the most catchy features in this offering from Maruti Udyog Ltd.
Maruti Suzuki Esteem is available in three versions with number of cool color
options bearing a price range starting from Rs. 4.50-5.00 lacs. The Power of 85 bhp @
6000 rpm, advanced safety features, eye-soothing body line up of Maruti Esteem have
always attracted the sedan car lovers to itself. For its customer satisfaction Maruti
Suzuki Esteem has been awarded with best entry mid-size car award.
Striking Features
38
y Chrome plated front grille
y Tubeless tyres
y Body coloured bumpers
y Pockets on both front doors and front seats back
y Convenient lighting system in centre, driver's cabin and trunk
y Power steering (in LXi & VXi variants only)
y Plush fabric upholstery
y Moulded floor carpets
Model Variants
y Maruti Esteem LX - BS III
y Maruti Esteem LXi - BS III
y Maruti Esteem VXi - BS III
Color Options
y Superior White
y Silky Silver Metallic
y Icy Blue Metallic
y Metallic Wine Red
y Metallic Pearl Silver
y Midnight Black Metallic
Price
Maruti Esteem is having a price range starting from Rs. 4.50-5.00 lacs (ex-showroom
Delhi).
(Please Note: The price range is ex-showroom and based on the close approximation.
Please check the latest prices and variant specifications with your dealer)

Safety Features
y Headlamp leveling device
y Collapsible steering column
y Child proof rear door locks
39
y Steel side impact beams
y Halogen headlamps
Awards & Accolades
Maruti Suzuki Esteem has been awarded with:
y Best Entry Mid- Size Car in TNS-TCS Study 2006
y Best Entry Mid- Size Car J.D. Power APEAL 2006
Maruti Suzuki Omni







Maruti Suzuki Omni from Maruti Udyog Limted was launched in 1985 and since then
this Utility Vehicle has gone through sea changes in terms of design, comfort, space,
power and utility. Available in 05 & 08 seating options with LPG fitment Maruti
Omni is running in two versions of Ambulance and Cargo. Maruti Omni provides
ample space for luggages, power packed performance and effective safety for all its
occupants all the time.
Maruti Suzuki Omni, from India's leading car maker Maruti Suzuki India
Limited, is trendy in design, sporty in looks, powerful in performance and very roomy
in space. Available in variants of five & eight seater with the fuel option of LPG,
Maruti Suzuki Omni is a perfect family car suitable for picnics and other family
outings. Maruti Udyog has also launched the Ambulance and the Cargo models of
Omni fitted with LPG kit.
40
Maruti Suzuki Omni, from India's leading car maker Maruti Suzuki India
Limited, is trendy in design, sporty in looks, powerful in performance and very roomy
in space. Available in variants of five & eight seater with the fuel option of LPG,
Maruti Suzuki Omni is a perfect family car suitable for picnics and other family
outings. Maruti Udyog has also launched the Ambulance and the Cargo models of
Omni fitted with LPG kit.
Powered by a 37 bhp eco-friendly Bharat-III engine, Maruti Omni, with its
performance and spaciousness, is among the most successful Utility Vehicle (UV) on
roads. Available in number of cool color options Maruti Omni is having a price range
starting from Rs. 2.0-2.50 lacs.

Maruti Suzuki Versa
Maruti Suzuki Versa







Maruti Versa a
Multi Utility Vehicle (MUV) suitable for families and corporates, who are looking for
big interior space with comfort and luxury of a sedan. Flexible seats for adequate
storage, double ACs with 8 vents for consistent cooling, electronic power steering
(EPS), powerful computer controlled and eco-friendly engine with number of
41
dynamic safety features makes Versa a comfy and convenient MUV.
Maruti Versa, a multi utility vehicle, is a mini-van with a look of a car to drive
you to work and also to take out your family and friends for a picnic. The vehicle has
a most powerful and responsive 16 valve, 1298 cc engine that generates 82 bhp at
6000 rpm and is controlled by a 16-bit Engine Management System.
Versa has flexiseat to adjust space as per requirement, twin AC (DX2 variant)
for uniform all round cooling, and many other innovative features.
Maruti Suzuki Zen













Since its launch on the Indian roads in 1993, Maruti Zen has gone through significant
face-lift from its design to technology. Zen is a small car that is having lots of big
things with it and gained popularity in hatchback car segment. Protective monocoque
body, ergonomically crafted seats, rich upholstery, very effective safety features,
powerful all-aluminum engine makes any kind of drive truly pleasurable experience.

Maruti Suzuki Zen, a clear leader in the premium compact car segment is
based on the 1991 Suzuki Cervo Mode (Japan). This car was to be the first by Maruti
that was designed for the worldwide market. Both, the design and specifications of
Zen meets world standards.

42
The car was the first to have all-aluminium engine, electronic distributor
pump, electric fuel pump in the fuel tank, suction resonator and a dash panel of
sandwich construction. Its five-speed ultra-slick gearbox continues to be one of best
boxes in an Indian car. A collapsible steering column is another safety feature of the
car in all its variants.

Striking Features
The car was the first to have all-aluminium engine, electronic distributor
pump, electric fuel pump in the fuel tank, suction resonator and a dash panel of
sandwich construction. Its five-speed ultra-slick gearbox continues to be one of best
boxes in an Indian car. A collapsible steering column is another safety feature of the
car in all its variants.
y New European Front End Styling
y Cat Eye Clear Head Lamps
y New Rear End Styling
y Powerful Front Bumpers
y Aggressive Grille
y Rear Bumper
y (Lxi & Vxi)
y Cover, Gear Lever
y New Clear Tail Lamps
y New Plush Two Tone Upholstery
y New Center Console with Cup holders
43
Maruti Suzuki Zen Estilo
Shape Your World










Maruti Suzuki Zen Estilo is a flamboyant model launched by India's leading auto
company Maruti Udyog Limited (MUL) replacing the Zen model. Zen Estilo, with its
sporty looks, roomy space, true riding comfort and competitive price tag, would
definitely make its style statement in the small car segment in India posing a tough
call for other players like Hyundai and Tata.

Estilo is all set to compete against the Hyundai Santro, Tata Indica and
possibly can eat into the sales of its own model, the Swift. Maruti Udyog launched the
Zen Estilo to cater to a slightly upmarket customers then that of the Maruti 800 had.
Estilo is powered by 1.1 l MPFI engine that delievers a power of 64 bhp @ 6200 rpm.
Zen Estilo wears an aerodynamic body in unique bean shape with stunning body line.
Just step inside Zen Estilo which is soft-plush from inside and sleek-dynamic from
outside, would shape your world in new dimension of comfort, style and performance.

44

Striking Features
y All new body line up in bean shape
y Seats with adjustable head restraint
y 3 spoke Electronic Power Steering wheel
y Side door beams and rear door child lock
y Highly efficient Air conditioning with heating ventilation
y Soft touch rich upholstery
y Electrically adjusted rear view mirrors
y Advanced engine technology and DDLI ignition system

Maruti Suzuki Alto
Let's Go









In the small hatchback car segment of India, Maruti Suzuki Alto gives 'maximum'
comfort and safety features with 'minimum' price tag. The most economical petrol
45
engine powered with 32-bit computer technology delivers great output of 47 bhp.
Available with number of convenient and security features, Maruti Suzuki Alto has
become like a hot cake in its segment.

Maruti Suzuki Alto, is tagged as the Best Selling car of India from last three
years. One of the hottest selling compact cars in the Indian market, Alto has an
efficient engine system and better mileage. Maruto Alto is targeted at middle class
families living in cities because of high fuel economy and affordability. Least
maintenance cost and variety of vibrant colours make it true value for money.

The car has high tensile steel side door beams to guard against the front, rear
and side collision impact. The looks are tough but accommodating, having more Boot
Space than other cars. The AC of the vehicle is ideal for India's tropical climate.
Striking Features
y Clear Lens Headlamps
y Dynamic Front Grill & Bumper
y Sparkling Tail Lamps
y Vibrant Colors
y Rotary Control for AC
y Stylish Fabric



46



Maruti Suzuki Grand Vitara

Live The Grand Life


















Here comes the grand SUV Maruti Suzuki Grand Vitara for those who live their life
grand size. In the Grand Vitara everything is grand- performance, comfort, and safety.
185 bhp grand power; robust, masculine styling for grand presence; extremely
luxurious interior features for grand comfort; cutting-edge safety features to provide
protection in all terrains. Grand Vitara is the perfect Sports Utility Vehicle to live the
grand life.

47
Maruti Suzuki Grand Vitara XL-7, a car for those who want to live life grand
size. It is the latest generation of Suzuki SUV. The vehicle is a completely built unit
(CBU) import. It is built in Hamamatsu in Japan, small car capital of Japan. The same
vehicle is sold in all the markets of world.

Equipped with the latest safety features, the Grand Vitara XL-7 is the biggest,
most powerful, most luxurious and most expensive vehicle in Suzuki's line-up. It is a
large and powerful 2.7 litre V6 powering a 1.6 tonne vehicle.

This Chevy SUV has been priced between 16-18 Lacs making it true value for
money and a family-friendly vehicle that underlines the core values of the Chevrolet
brand.
Maruti Suzuki A-Star
Stop @ Nothing











Indian car
market leader
Maruti Suzuki has launched A-Star in the hatchback car segment in which the
company holds ruling position with 55% market share. Maruti has unveiled A Star as
a next generation model of its another model Alto which is already selling greatly in
the segment. Scroll down to know more about the sporty and striking features of all
new A Star Car.

48
India's largest automaker Maruti Suzuki India Limited has unveiled its much
awaited hatchback car, A Star in the Indian auto market. A Star was first showcased
in the Indian auto expo in New Delhi, as a concept car and after launch A Star from
Maruti would be its fifth car model slated to be exported in the International market as
well. Maruti Suzuki A Star, the all new entrant into the hatchback car segment in
India, promises to become the most fuel-efficient car in its category with an
exceptional mileage of 20 kmpl. The launch of A Star Car, which is the eighth
consecutive car launch by Maruti, denotes the key positioning of the market leader in
the A2 car segment with 55% market share.
The all new Maruti Suzuki A Star features a sporty-designer looks and
equipped with state-of-the-art technology that promises to deliver a wonderful driving
experience. A Star houses a brand new KB series 998 cc engine under its hood that
delivers 67 PS @ 6200 rpm and an exceptionally good torque of 90 Nm @ 3500
rpms. Being light in weight this engine lowers the vibration or noise and provides
more fuel-efficiency in every litre. The A Star has been launched as the next
generation model of Alto car car and would be built completely at the company's
facility at Manesar, Haryana.

A Star comes equipped with modern safety features including sound body
teamed with lightness of the structure, the airbags and ABS for diversion of
aftermaths in case of the collision. It reflects the Total Effective Control Technology
(TECT) that absorb the shocks generated during the collision and keeps it away from
the reach of the occupants. The striking new A-Star is available for sale in nine
sizzling colors, three variants with the price range starting from Rs. 3.47 Lacs (ex-
showroom Delhi).

Maruti Suzuki Ritz

Maruti Ritz- Safety, Comfort and Performance
49








Maruti Suzuki Ritz, the eagerly awaited premium hatchback segment car from Maruti
Suzuki India Limited has launched on 15th. May, 2009. The Maruti Ritz will not be
replacing any of the existing popular cars from Maruti Suzuki but instead will add on
to the already impressive portfolio of small cars by Maruti Suzuki in India. The Ritz
comes with a host of exciting features and will give tough competition to the cars
already dominating the hatchback space.
Maruti Suzuki Ritz, the eagerly awaited premium hatchback segment car from
Maruti Suzuki India Limited has launched on 15th. May, 2009. The Maruti Ritz will
not be replacing any of the existing popular cars from Maruti Suzuki but instead will
add on to the already impressive portfolio of small cars by Maruti Suzuki in India.
The Ritz comes with a host of exciting features and will give tough competition to the
cars already dominating the hatchback space.
Maruti Suzuki Managing Director and CEO Shinzo Nakanishi said: "K12M
engine is another example of Maruti Suzuki's commitment to take engine
technology in India to the next level,"
Maruti Suzuki Baleno

Owner's Choice

50












Maruti Baleno is the right pack of style, comfort and performance. This sedan comes
loaded with the smarter 16 V i-engine technology that generates 91bhp and turns your
riding experience really amazing. Dressed with lots of luxurious features- superior
suspension, high-end audio system, noise reduction feature, heavy-duty steel body
and the sensuous exteriors- Baleno is the nice place to be in.

Maruti Baleno is a fantastic car to drive. The comfort of the vehicle is more
than expected, smoothness and handling is excellent. It delivers 94 horsepower at
6000 rpm with 1.6 litre, 4 cylinder, 16 valve SOHC all aluminum engine. The vehicle
has an unique Multi Point Fuel Injection (MPFI) that gives even fuel distribution. As
an aftermath there is an increase in fuel efficiency and enhances power performance.

The Baleno has a monocoque body that distributes the impact of collision
throughout the vehicle body and the affected portion of the body collapses
progressively along the in-built crumple zones. This on the other hand enables the car
to absorb the shock and save the passengers from injury.

51
Maruti Gypsy King
There's a Gypsy In Everyone













Maruti Gypsy is a solid Sports Utility Vehicle (SUV) that has been designed to
conquer any kind of terrain- from highways to hilly and from desert to snowy. Gypsy
is a SUV really made for Indian conditions. At the heart of the 4 wheel drive Gypsy
has responsive petrol engine delivering 80 bhp of impressive power that is
complimented with the 5 speed transmission for better control and great mileage.

Maruti Gypsy King, the Indian version of Suzuki Jimmy, is one of the best
four wheeler that can go nearly to anywhere and in any whether. Maruti Gypsy car is
excellent tough build quality to take on in any terrain. It is the vehicle to surrender to
the call of the wild.

The engine of Maruti Gypsy is on high thermal conductivity that heats up
quickly under extremely cold conditions and also avoids overheating in hot climate
terrain. The 1300 cc petrol engine is lighter than the diesel one and ensures better
control, more power and greater responsiveness.

The maximum power is 80 bhp @ 6000 rpm. The 5-speed gearbox of the car
ensures better highway mileage and allows high cruising speeds. Being a lighter
52
vehicle, it does not get stuck on sandy or muddy tracts.
Maruti Suzuki Swift








Maruti Suzuki Swift is rocking the hatchback car segment of India and has become
the blockbuster model since its launch. Swift is cool, stylish and dressed powerfully.
Big dimensions, great fuel economy, larger fuel tank capacity, European style looks,
eye-catching interiors and above all the support of large Maruti service network,
makes Suzuki Swift a thrilling car that has emerged as a tough competition for
Hyundai and Tata.
Maruti Suzuki Swift, the car of the year, was launched in May 2005. It is a
new kind of compact car with a fresh approach to design and development. The Swift
is more eye-catching, more spacious, more refined and more user-friendly. It is a
whole lot of enjoyable to drive than anything else in the compact-car category.
Striking Features
y Dynamic European styling.
y Rally based suspension system.
y All-Aluminium 16 valve 32 bit hypertech engine.
y Automatic climate control.
53
Maruti Suzuki Wagonr
For The Smarter Race
Wearing an innovative and sporty looks Maruti Suzuki Wagon R is enjoying good
market position in small car segment. India's leading auto maker Maruti Udyog Ltd
(MUL) has designed Wagon R with ample and convertible inner space, finely crafted
panels and the power of a low friction 64 bhp engine. Available in three variants (LX,
LXi, VXi) Wagon R has everything that small car lover looks for.
Maruti WagonR, the tall boy from MUL. Already the most popular car in
Japan by Suzuki, is also becoming favorite to Indians for space. Equipped with a 16
Valve hypertech engine and 1.1-litre MPFI ignition system, powered by a 62bhp
@6200 rpm engine and a torque of 8.4gm @3500 rpm, Maruti WagonR has smoother
pick-up, faster acceleration, hassle-free start and a more efficient power distribution.
The 32 bit on-board computer with diagnostic capability monitors the air-fuel ratio for
optimum fuel efficiency makes it a best buy
Striking Features
y 16 Valve hypertech engine
y Top-class Luxury
y Thoughtfulness
y Unmatched Safety
54
Maruti Suzuki Swift Dzire
Maruti Suzuki Swift Dzire

India's leading car maker Maruti Suzuki has come up with Swift Dzire and all set to
stir the market in entry level sedan car segment. The all new Swift Dzire with its
sizzling features like roomy interiors, gorgeous exteriors, refined engine technology
and state of the art safety, would offer great comfort, convenience, safety and
performance. Launched at a competitive price, the Swift Dzire would be a hard nut to
crack for other players in this segment.

The Indian Car market leader, Maruti Udyog Limited, has launched Swift
Dzire car as a new entrant into one of the most competitive segment of entry sedan
cars. The strong muscular outlook, feature packed interiors and an attractive price tag
adds an appealing charm to the Maruti Suzuki Swift Dzire. Launched in both Petrol
and Diesel variants, the all new Swift Dzire is packed with the cutting edge 1.3 litre
ALTec 32 petrol engine and 1.3 litre DDiS engine offering 87 bhp and 75 bhp of
strong output respectively. The refined technology used in these engines offers refined
power and a fuel-efficient mileage.

The looks, styling and designing of Swift Dzire is the really eye-catching.
Large bootspace, spacious leg room, beige upholsteries, an integrated single DIN
stereo, finely tuned suspension system, ergonomically casted comfy seats are few of
55
the key features that this cool looking sedan have.

Maruti has launched Swift Dzire car in six variants (three of diesel and three
of petrol) and offers number of sizzling color options Arctic White, Silky Silver,
Clear Beige, Midnight Black, Bright Red, Azure Gray and Sovereign Blue. The ex-
showroom price of Dzire starts with Rs. 4.49 lakhs for Petrol version and Rs. 5.39
Lakhs for Diesel variant.

MULs BUSINESS STRATEGY
MUL intend to continue to focus on the small car segment, while offering
products in most segments of the Indian passenger car market. The business strategies
of MUL are:
Maintain and enhance the product range. MUL utilize Suzukis expertise in small
car technology to produce new variants of the existing models and to upgrade the
existing one with contemporary technology and features. They intend to increase the
number of variants of existing models in the A and B segments.
Increase reach and penetration. MUL has one of the extensive sales and service
network in terms of geographical spread, and penetration, in terms of sales volumes
across India. They continuously assist their dealers in enhancing their performance
and profitability by suggesting improvements, such as increasing the number of sales
executives employed at dealerships. Currently, wide network of MASSs primarily
provides aftersales service. They can even use the MASSs that are located in some of
the more remote areas of India as sales outlets to increase the reach and penetration in
those areas.
Increase availability of automobile finance. MUL being the market leader should
seek opportunities to expand the size of the Indian passenger car market, especially in
the small car segment. They have made available, through the dealers, finance
products of eight select finance companies under the brand Maruti Finance. This
increases the availability and transparency of the financing transactions, which can
contribute greatly to the customer satisfaction and confidence. Their agreement with
the State Bank of India, or SBI, to provide the finance to their customers has enabled
it to leverage the strength of the extensive network of SBI, more than 9,000 branches
56
across India. This all will enable it to promote the demand of its offering among SBIs
vast customer base and expand the size of the passenger car market in India.
Secure repeat purchases by offering a 360 degree customer experience. MUL is
extensibly trying to provide customers with a one-stop shop for automobiles and
automobile-related products and services. They are trying to make available to the
customers a wide range of Maruti-branded services at different stages of ownership.
This helps them to secure repeat purchases by the existing customers and increase the
revenue. The following products and services offered by MUL:
y Automobile insurance;
y Automobile finance;
y Maruti-certified pre-owned cars available for purchase;
y Leasing and fleet management;
y Accessories; and
y Extended warranties.
Continuous benchmarking of manufacturing capabilities: MUL continuously
benchmark, with that of Suzukis premier one, its facility to improve its operating
efficiencies. As part of Suzukis plans to make Maruti its research and development
center for cars in Asia (outside Japan), it is expected that MUL will ultimately be
having the capability to have full model change capability.
Continue to reduce costs to offer more competitive products. Cost competitiveness
has been, and continues to be, central to MULs strategy, as the leading manufacturer
in the small car segment, to expand the size of the market by offering competitively
priced, high quality products.
The components of this strategy are:
Higher levels of localization
MUL has increased the level of localization over time by working closely with the
vendors in India to upgrade their capabilities, which has enabled them to reduce costs
and has increased the flexibility in pricing. A look at the new models tells that MUL,
with any new model, tries to have a minimum of 75% localization level and then tries
to increase the same to at least 90%.
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Vendor participation in cost reduction
In some of the major vendors MUL has implemented the Maruti Production System
which focuses on the eliminating the wasteful activities in their manufacturing
processes such as improving their productivity, reducing the number of their
components that are rejected, reducing materials handling, improving their yield from
materials, and reducing their inventories. This helps in reducing the costs of
production, which also reduces the costs of the components being required by MUL.

Cost reduction on warranties
The warranty costs of the vendors are the cost of components incurred by them to
service warranty claims arising from defects in components supplied by them. MUL
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works in association with the vendors to reduce their warranty cost.


Reduction in initial investment cost
Through in-house development and localized sourcing of dies, welding jigs and other
equipment, introduction of flexible welding lines that can be used for multiple
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models, and in-house development of machine shop equipment ,MUL tries to reduce
the initial cost associated with the initial investment.
Reduction in number of vehicle platforms
MUL currently uses six basic vehicle platforms for production. They even intend to
reduce the number of basic vehicle platforms and increasingly share basic vehicle
platforms among multiple models in order to spread development costs and achieve
economies of scale.
Lowering the cost of ownership: MUL seeks to reduce the Consumers cost of
ownership of their cars, which comprises the cost of purchase, fuel consumption,
maintenance, including spare parts and repairs, insurance, and resale value. MUL is
trying to achieve this by:
y manufacture high quality, fuel-efficient, cars;
y price cars, spare parts and accessories, and extended warranties, competitively;
y make automobile finance more easily available to the consumer on
competitive terms;
y make maintenance services, including spare parts, accessories and repairs,
widely available through the extensive sales and service network; offer
automobile insurance and other automobile-related services through the sales
and service network; and
y Create a market for Maruti-certified pre-owned cars through Maruti True
Value business.
RESEARCH METHODOLOGY
Research- is a process of collecting, analyzing, interpreting and
summarizing in a significant manner for the purpose of framing out
necessary conclusion and findings of data perceived and formulated for
deriving out the meaningful information.
Collection of Data
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This is an important aspect in formulating the objective of research
process where the data is collected through Secondary sources
Secondary sources: -where the data is obtained from some published and
printed sources such as newspaper, magazines, websites and so on.
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MARUTI SWOT ANALYSIS

STRENGTHS
y Early mover Advantage
y Established supply chains and dealer networks.
y Strong brand names
y Good reputation among customers
y Cost advantages from Economies of scale.
y Muscle power in government policies.
y Wider service network.
y Better service quality.

WEAKNESSES
y Lack of in house R&D spending.
y Reactive in launching new models
y Cost advantage in Maruti 800 segment going down.
y No presence in diesel engine segment which is gives post purchase fuel economy.
y Disinvestment policy ambiguity is playing on future strategies.

OPPORTUNITIES
y New car can be launched.
y Battery Cars with low price.
y Disinvestment and Suzuki gaining full control.
y Diesel variants of new cars.
y Huge installed capacity can be used for exports from India.
y Rural customers can be graduated from scooter to entry level Maruti 800.
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y Rising middle class income.
y Financing options
y Second hand car sales market
y Auto parts market


THREATS
y Shifts in consumer tastes away from the firm's products.
y Emergence of substitute new models by competitors.
y Disinvestment process getting slower and decreasing efficiency.
y Maruti 800 sales going down which is star performer of company till now.
y Government decreasing custom duties on second hand and imported cars.
y Tata Indica and Hyundai getting hold in medium size segment.
y The used or second-hand car market in India is likely to become more
organized in future. The car dealers will themselves deal with used cars. It is
expected that a used second hand Indica, Santo, Astra or Cielo will be priced
close to a new Maruti 800. This could put a question mark on the
prevalent assumption that a large number of current two-wheeler users in
India will graduate to a Maruti 800 in future with higher incomes.
y An analysis of the world car market shows that no car company in the world,
with the expectation of the Japanese, has a car in its range, which is
directly comparable to the Maruti 800. Contrary to popular belief, the Ford
Fiesta, Opel Corsa and the VW Golf would compete with Maruti Esteem or
Maruti Zen, and not with Maruti 800. All these cars, though small by Western
standards, are high-power cars which would be priced in India in the luxury
range. Given that only 30% of the market is estimated for cars above
lOOOcc and with so many companies already in the Indian market, the
industry seems to be heading for a shake out. The firms that would be able to
design and properly implement sound marketing strategies are likely to be the
winners.
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y The easy financing schemes are also posing threat to the Maruti because
customers can directly graduate to SEGMENT B without having first time
purchase at Maruti 800. Since car purchase is India is a one time decision
and people will prefer to have one investment that will differ not very highly
for better features.
y Diesel engine cars are also posing a big threat due to their fuel cost
differential since in India people do give a lot of emphasis on fuel efficiency
and price do play an important role in this category.
y Introduction of TATA NANO could seriously hit Maruti market on
every parameter.

RECOMMENDATIONS
1. Maruti should try out innovation techniques to compete against the
rising market of other automobile companies.
2. They take corrective measures for technological up gradation, to
improve their performance such as- fuel efficiency, low maintenance
and quality standard up to customer expectation.
3. Non personal tools have an impact in buying criteria of the customer
where luxury car market as whole should take correct measure to
improve their advertisements so that they may seem nubile, bairy and
fun crazy to influence the decision process of buyers.
4. Maruti is required to take some steps to improve their looks to tap the
youth market.
5. Maruti should broaden their sales services, network and spare parts
availability because it is prime criterion of buying process.
6. They should try and increase their market in luxury car segment to
compete against players like Honda, Skoda, and Mitsubishi etc.
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LIMITATION OF THE STUDY
1. The educational & awareness level of the respondents with respect to the
questionnaires is low. Hence they respond one question in affirmative, but
same interrelated question has been responded in negative.
2. The sample - plan is too small to give the research a wide coverage with
reference to their opinion.
3. Sample-plan is Aligarh specific. Hence it may show imbalances of
urban elite perceptions.
4. The respondent include those people who has car (but not a specifically a
luxury car) and hence, their opinion could be based with the lower income
group.
5. The respondents are not interested to reveal their income level. Causing a
hurdle in finding out the price as a buying decision.

SUMMARY AND CONCLUSION
After analyzing the questionnaire and studying the facts available in the
magazines. I can conclude that there is no controversy to tell that Maruti Udyog Ltd
is still the undisputed king in cars market to have a market share of 55%. But the
times are now corning, consumers perceptions are also changing at a great pace.
In the market share of 56% of Maruti, there is a great contribution of Suzuki,
when Maruti have no strong competitor. But trends have changed now.
After coming of Honda and Tata, people have a good choice due to changing
needs and demands of general people. They bring new concept in cars regularly. It
provides good quality in various aspects.
Age Factor: As being the oldest company Maruti have 56% market share in cars, but
if we consider the age factor we find that other companies improved their position in
four wheeler market.
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Class : Maruti have a good market share in lower income group. Because, the people
of this income group have no choice MarutiSOO, Maruti Zen, and Alto are the
popular brand in this segment. Because the four wheeler is a success while the higher
income group is considers four wheeler is a necessary thing to these people but it
also maintain their nature.
The highest income group's need is different. Small cars are not a necessity to
them. These people prefer, generally costly, good things according to there prestige.
After sales service:
We all know that the productive and endorsements of the four wheeler is quite
high, so it is difficult to maintain their quality of after sale services thus it becomes
much more important for the company to have a step ahead of its competitor by
providing better after sales services. This can help the company to increase its sales
and also to make a customers brand loyalty.
In four wheeler market after sales services works as an advertising tool.