Maruti Suzuki

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Maruti Suzuki India Limited
Type Public
Traded as BSE532500
BSE SENSEX Constituent
Industry Automotive
Predecessor(s) Maruti Udyog Limited
Founded 1981
Headquarters New Delhi, India[1][2]
Key people

RC Bhargava[3] (Chairman)

Kenichi Ayukawa[4] (CEO & MD)
Products Automobiles
Revenue INR369.34 billion (US$6.2 billion) (2012)[5]
Net income INR16.81 billion (US$280 million) (2012)[5]
Employees 6,903 (2011)[6]
Parent Suzuki[7]

Maruti Suzuki India Limited (/marut̪i suzuki/), commonly referred to as Maruti and formerly known as Maruti Udyog Limited, is an automobile manufacturer in India.[8] It is a subsidiary of Japanese automobile and motorcycle manufacturer Suzuki.[7] As of November 2012, it had a market share of 37% of the Indian passenger car market.[9] Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to the hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicle Grand Vitara.[10]

The company's headquarters are at No 1, Nelson Mandela Road, New Delhi.[2] In February 2012, the company sold its ten millionth vehicle in India.[11]


The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it

Originally, 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 May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.[12]

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car available in India, its only competitors - the Hindustan Ambassador and Premier Padmini - were both around 25 years out of date at that point.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 Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan.

The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annually.[citation needed] Its manufacturing facilities are located at two facilities Gurgaon and Manesar in Haryana, south of Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 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 14,50,000 units annually.

About 35% of name="marketshare" all cars sold in India are made by Maruti. The company is currently 56.21% owned by the Japanese multinational Suzuki Motor Corporation 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 of India.[citation needed]

During 2007 and 2008, 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.

The Suzuki Motor Corporation, Maruti's main stakeholder, has been a global leader in mini and compact cars for three decades. Suzuki’s strategy is to utilise light-weight, compact engines with stronger power, fuel-efficiency and performance capabilities. 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.[13] Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The model is supposed to be fuel efficient, and therefore more expensive.[14] With increasing market competition in the small car segment, a new model along with the upcoming WagonR Stingray will be the key fresh products for Maruti Suzuki India (MSI) to defend its market share amid the ever increasing competition[15]


The first Maruti 800, based on the Suzuki SS80
An old Maruti 800 model from the 1980s, still in use as of 2013 in Goa. The Maruti 800 was popularly referred to as simply "Maruti"

Maruti's history begins in 1970, when a private limited company named 'Maruti technical services private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of "a wholly indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under the Companies Act and Sanjay Gandhi became its first managing director.[16] After a series of scandals, "Maruti Limited" goes into liquidation in 1977. This is followed by a commission of inquiry headed by Justice A. C. Gupta, which submits its report in 1978.[16] On 23 June 1980 Sanjay Gandhi dies when a private test plane he was flying crashes. A year after his death, and at the behest of Indira Gandhi, the Indian Central government salvages Maruti Limited and starts looking for an active collaborator for a new company: Maruti Udyog Ltd being incorporated in the same year.[17]

Suzuki enters

In 1982, a license and Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd. and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market, Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and even after that the early goal was to use only 33% indigenous parts. This upset the local manufacturers considerably. There were also some concerns that the Indian market was too small to absorb the comparatively large production planned by Maruti Suzuki, with the government even considering adjusting the petrol tax and lowering the excise duty in order to boost sales.[18] Finally, in 1983, the Maruti 800 is released. This 796 cc hatchback is based on the SS80 Suzuki Alto and is India’s first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van.[18] Local production commences in December 1983.[11] In 1984 the Maruti Van, with the same three-cylinder engine as the 800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000 units.

In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is launched. In 1986 the original 800 is replaced by an all-new model of the 796 cc hatchback Suzuki Alto/Fronte. This is also when the 100,000th vehicle is produced by the company.[17] In 1987 follows the company's first export to the West, when a lot of 500 cars were sent to Hungary. Maruti products had been exported to certain neighboring countries already. By 1988, the capacity of the Gurgaon plant is increased to 100,000 units per annum.

Market liberalisation

In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, three-box is India’s first contemporary sedan. By 1991 65 percent of the components, for all vehicles produced, are indigenised. Meanwhile, the liberalisation of the Indian economy opens new opportunities but also brings more competition to the segments in which Maruti operates. In 1992 Suzuki increases its stake in Maruti to 50 percent, making the company a 50-50 JV with the Government of India the other stake holder.

A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc, hatchback which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc Esteem appears, a more luxurious redesigned Maruti 1000. This and other Marutis begin appearing in a plethora of different equipment levels, to better suit India's increasingly discerning consumers. A Zen Automatic arrives in 1996, as does the Gypsy King, a 1.3 liter version of the compact off-roader, and a minibus version of the Omni (the Omni E).

In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of production, being the first company in India to do so. This is still not enough in a booming market and the next year Maruti's second plant is opened, with annual capacity reaching 200,000 units. Maruti also launches a 24-hour emergency on-road vehicle service, the first of its kind in the country. In 1996 the United Front government is formed, with Murasoli Maran new Industries Minister. On 27 August the following year the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing Director, as the then current Managing director R.C. Bhargava, was completing his tenure. This creates a conflict with Suzuki, discussed closer in the Joint venture related issues section.

In 1998 the new Maruti 800 is released, the first change in design since 1986. This is simply a facelift of the existing model, to ensure steady sales. Also, the two millionth vehicle is produced. Other news include the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle. The Omni van and microbus is also redesigned. The next year the Omni bus arrives in a high roof version, the Omni XL. The 1.6 litre Maruti Baleno three-box saloon, advertised as the 'Maruti Suzuki Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year, the Wagon R is launched.

Maruti Alto, introduced in 2000

In 2000 Maruti becomes the first car company in India to launch a Call Center for internal and customer services. The new Alto model is also released, somewhat larger and more modern than the 800. The estate Baleno Altura is also shown, while IDTR (Institute of Driving Training and Research) is launched jointly with the Delhi government to promote safe driving habits. In 2001 Maruti True Value, selling and buying used Maruti Suzukis, is launched in Bangalore and Delhi, later in Mumbai and elsewhere. In October of the same year the Maruti Versa sees the day, a bigger engined and more luxurious microbus than the Omni. It never catches on in the market and is discontinued by late 2009, only to be replaced by a cheaper, stripped-down version called Eeco. Customer information centers are also launched in Hyderabad, Bangalore and Chennai. In 2002 the Esteem Diesel appears, as does Maruti Insurance. Two new subsidiaries are also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increases its stake in Maruti to 54.2 percent.

In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R are upgraded and redesigned. The four millionth Maruti vehicle is built and they enter into a partnership with the State Bank of India. Maruti Udyog Ltd is Listed on BSE and NSE after a public issue, which is oversubscribed tenfold. In 2004 the Alto becomes India's new best selling car, overtaking the Maruti 800 which had been number one for nearly two decades. The five-seater Versa 5-seater, a new variant, is created while the Esteem undergoes cosmetic changes and is re-launched with a price cut. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest ever since the company began operations 20 years earlier, and the fiftieth lakh (5 millionth) car rolls out in April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift five-door hatchback also appears. 2004-05 marked another record year (487,402 domestic sales) and exports reached 48,899 cars to about fifty different countries. The United Kingdom took the lion's share, with 10,623 deliveries.[19]

In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to build two new manufacturing plants, one for vehicles and one for engines.[19] Cleaner cars were also introduced, with several new models meeting the new "Bharat Stage III" standards.[19] In February 2012, Maruti Suzuki sold its ten millionth vehicle in India.[11]

Joint venture related issues[edit]

Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and 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[20]

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.[21] 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.[citation needed]

Suzuki did not attend the Annual General Meeting of the Board with the reason of it being called on a short notice.[22] Later Suzuki Motor Corporation went on record to state that 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.[23] If Maruti Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would have been able to manufacture all the models without the technical assistance from Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.[24]

Industrial relations[edit]

Since its founding in 1983, Maruti Udyog Limited experienced problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions.[25][26]

Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government.[25][27]

The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.[28][29]

Manesar violence July 2012[edit]

On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates. The violent mob also injured nine policemen.[30][31] The company's General Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the building that was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since the company began operations in India in 1983.[32]

Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of INR 10,000, a laundry allowance of INR 3,000, a gift with every new car launch, and a house for every worker who wants one or cheaper home loans for those who want to build their own houses.Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-related.[33][34] According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker.[35] These claims were denied by the company and the police.[31] The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system; further, the numerous workers involved in violence were not affiliated with caste either. Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor.[32] The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees.[35] Maruti employees currently earn allowances in addition to their base wage.[36] Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. It was also claimed that bouncers were deployed by the company.[33]

India Today claimed[37] that its interviews of witnesses present at the plant confirms the dispute was over the suspended worker. The management insisted that they must wait for completion of inquiry underway before they can take any action on the employee suspended for beating up his supervisor. The management was then told, "you will be beaten up after we get a signal." Thereafter, the workers broke up into groups, went on to set the shop floor as well as all offices afire. They searched for management officials and proceeded with a barbaric beating of the officials at the site with iron rods.

The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence may be the result of a planned violence by a section of workers and union leaders. The report claimed the worker's action was recorded on close circuit cameras installed within the company premises. The workers took several managers and high ranked management officials hostage. The responsible Special Investigative Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main servers and more than 700 computers." The recorded CCTV footage has been used to determine the sequence of events and people involved. Per the FIR, police have arrested 91 people and are searching for 55 additional accused.[38][39]

Maruti Suzuki in its statement on the unrest,[40] announced that all work at the Manesar plant has been suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker's business plans for India.[32] The shut down of Manesar plant is leading to a loss of about Rs 75 crore[41] per day.[42] On 21 July 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout.[41] On 26 July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws. The company further announced that it will stop using contract workers by March 2013. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports - the contract worker at Maruti received about INR 11,500 per month, while a permanent worker received about INR 12,500 a month at start, which increased in three years to INR 21,000-22,000 per month.[43] In a separate report, a contractor who was providing contract employees to Maruti claimed the company gave its contract employees the best wage, allowances and benefits package in the region.[44]

Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers, and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise Maruti Suzuki Workers’ Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar.[45][46]

Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India has strict labour laws, but their application is widely sidestepped by hiring low-wage contract workers.[35] Manesar violence adds to India's recent incidents of labour disputes turning to violence. Analysts claim[47][48] recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal sector and discourage investment in India. Government mandated procedures for labour dispute resolution are currently very slow, with tens of thousands of cases pending for years. The government of India is being asked to recognise that incidents such as Manesar violence indicate a structural sickness which must be solved nationally.

The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share.

The previous week company officials had announced that Maruti would scrap the practice of hiring contract workers and that the workers currently on temporary contracts would be made permanent. It would begin the process of hiring new workers on a permanent basis from 2 September 2012.[49]

In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands.[50]

Products and services[edit]

Current automobiles[edit]

India's Corps of Military Police personnel patrolling the Wagah border crossing in the Punjab in a Maruti Gypsy.
The Maruti Suzuki A-Star is sold as the Suzuki Alto in Europe
Suzuki Splash is sold as Maruti Suzuki Ritz in India.
  1. 800 (1983) (still distributed to some cities like Guwahati) Competes with Tata Nano, Maruti Alto and Maruti Omni
  2. Omni (launched 1984) Competes with Tata Nano, Tata Venture, Maruti 800 and Maruti Eeco
  3. Gypsy King (launched 1985) India's first indegenious vehicle and first compact SAV, competes with Mahindra Thar CRDe, Tata Sumo 4x4 and Force Gurkha
  4. WagonR (launched 1999) Competes with Nissan Micra Active, Maruti A-star and Hyundai i10
  5. Swift (launched 2005) Created a Maruti 800 rivalling benchmark, competes with Tata Vista, Hyundai i20, Skoda Fabia, Volkswagen Polo and Toyota Etios Liva
  6. SX4 (launched 2007) Soon to be replaced by the upcoming sedan codenamed YL1, competes with Ford Fiesta, Hyundai Verna, Honda City, Skoda Rapid, Volkswagen Vento, Renault Scala and Nissan Sunny
  7. Swift DZire (launched 2008) Competes with Mahindra Verito, Toyota Etios, Ford Classic, Mahindra Verito Vibe, Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza
  8. A-star (launched 2008) Competes with Chevrolet Beat, Nissan Micra Active, Ford Figo and Maruti Wagon-R Stingray
  9. Ritz (launched 2009) Competes with Maruti Swift, Tata Vista, Hyundai Grand i10, Honda Brio, Nissan Micra, Renault Pulse and Toyota Etios Liva
  10. Eeco (launched 2010) Stripped down Versa with a lowered roof, in competition with Tata Venture, Tata Winger Platinum, and in-house Omni
  11. Alto K10 (launched 2010), competes in the economy class with the Tata Indica, Hindustan Motors Ambassador and Chevrolet Spark
  12. Maruti Ertiga (launched 2012), seven seater MPV R3 designed and developed in India, in competition with Toyota Innova, Mahindra Xylo, Nissan Evalia, Ashok Leyland Stile and Tata Sumo Grande.[51] In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.[52]
  13. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport, Mahindra Xylo Quanto, Nissan Terrano & Renault Duster will be launched in the year 2014
  14. Maruti Alto 800, launched in 2012, Competes with Tata Nano
  15. Maruti Stingray, launched in 2013, Competes with Maruti A-star, Chevrolet Beat and Chevrolet Sail
  16. Maruti Suzuki Celerio, launched in 2014,competes with Hyundai I1o, Chevrolet Beat and Honda Brio

Imported automobiles[edit]

  1. Grand Vitara (launched 2007)
  2. Kizashi (launched 2011)

Discontinued automobiles[edit]

  1. Gypsy E (1985–2000)
  2. 1000 (1990–2000)
  3. Zen (1993–2006) Replaced by the Zen Estilo
  4. Esteem (1994–2008) Replaced by the Swift DZire
  5. Baleno (1999–2007) Replaced by the SX4 sedan
  6. Baleno Altura (1999–2003)
  7. Versa (2001–2010) Replaced by the Eeco
  8. Grand Vitara XL7 (2003–2007) Replaced by the compact Escudo/Vitara
  9. 800 (1983-2012) Replaced by the Alto 800
  10. Alto (2000-2012) Replaced by the Alto 800
  11. Zen Estilo (2006–2013)
  12. A-star (2008-2014)

Manufacturing facilities[edit]

Maruti Suzuki has two manufacturing facilities in India.[53] Both manufacturing facilities have a combined production capacity of 14,50,000 vehicles annually. During a recent meeting of the Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started soon.[54] Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres

Gurgaon manufacturing facility[edit]

The Gurgaon manufacturing facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2).[55] All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 900,000 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[edit]

The Manesar manufacturing plant was inaugurated in February 2007 and is spread over 600 acres (2.4 km2).[56] 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, SX4, Ritz and Celerio.

On 25 June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition.[57]

Sales and service network[edit]

As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 3,013 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,436 towns and cities throughout India.[58] It has 30 Express Service Stations on 30 National Highways across 1,436 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.[59][60]

Maruti Insurance[edit]

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[61]

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.[62]

Maruti Finance[edit]

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.[63] 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 2003[64] 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.[65]

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%.[66] 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.[citation needed]

Maruti TrueValue[edit]

Maruti 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 outlets.[citation needed]

N2N Fleet Management[edit]

N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. 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.[67]


Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India.[68]

Maruti Driving School[edit]

A Maruti Driving School in Bangalore

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 behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators.[69]

A the launch ceremony for the school Jagdish Khattar stated "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."[70]

Issues and problems[edit]

On 20 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem, for which the company will replace the gaskets.[71]


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 consignment 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.[citation needed] 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.[citation needed]

Awards and recognition[edit]

The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India.[72]

Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study[73] conducted for the Auto (Cars) Sector which launched in April 2012.

Fully Automatic Variant[edit]

Maruti Suzuki Celerio - a fully automatic variant is expected to be launched on 6 February 2014 in Auto Expo at Greater Noida. Its expected price tag will be between 3.0 to 5.5 lacs in India.[74]

See also[edit]

References and notes[edit]

  1. ^ [1]
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