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SUMMER TRAINING REPORT SUBMITTED TOWARDS

THE PARTIAL FULFILMENT


OF

BACHELORS OF BUSINESS ADMINSTRATION

SUMMER TRAINING PROJECT REPORT


ON

“CONSUMER PREFRENCES OF MARUTI SUZUKI”


SUBMITTED BY

NAME OF STUDENT: SANYA MEHTA

ENROLLMENT NO.: 40920601715 (2015 - 18)

INTERNAL GUIDE: EXTERNAL GUIDE:

NAME: NAME:
DESIGNATION: Assistant Professor DESIGNATION:

Trinity Institute Of Professional Studies Affiliated to Guru Gobind Singh


Indraprastha University
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ACKNOWLEDGEMENT

The successful completion of the project would have been far from reality without mentioning the
people who made an indelible impression while making the project.

All the very outset thanks to Mr./Ms.______________ for instructing me and providing me the
opportunity to participate in the project and sharing her invaluable knowledge and experience with
me. Her innovative ideas provided me clarity of thoughts which helped me to think in the right way.

Without her help and guidance completion of the project report would have been very difficult. I
would also like to give gratitude to all the other faculties who helped me in making the project worth
wile and successful.

I would also like to express my gratitude to ______________ [director] Trinity Institute Of Professional
Studies, for providing all needful facilities in the campus and the best faculty for the students.

Their thoughtful ideas, comments and conceptual insight into the subject kept me from floundering
in my quest. Despite their busy schedule they spared valuable moments for reviewing and rectifying
this project work.

Due to the proper guidance the making of project report became an enjoyable experience and easy
to workout.

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PREFACE

A hallmark of any premier business school is its willingness and ability to constantly explore and
implement new ideas and practices in the field of management education. Institute constantly
reorients their programs in order to keep abreast of changing development.

The initial interaction between school students and industry takes place when the students undergo
project is usually for knowing the process for recruitment, selection, industrial relations & training of
that institution. It is often the exposure to corporate culture that a student receives, particularly true
for students without prior work experience.

During my training at Maruti Suzuki, I was taken project on Marketing policy of Maruti Suzuki.

The main purpose of the study is to know the policies of the bank regarding marketing training, which
helped me in gaining knowledge about the different working pattern of different departments of the
company.

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TABLE OF CONTENT

PARTICULAR PAGE NO.

Acknowledgement

Preface

INTRODUCTION

RESEARCH METHODOLOGY

DATA PROCESSING

DATA ANALYSIS

Findings & Recommendations

Conclusion

Bibliography

Questionnaire

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INTRODUCTION

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OVERVIEW OF THE INDUSTRY

The automotive industry in India is one of the largest in the world and one of the fastest
growing globally. India's passenger car and commercial vehicle manufacturing industry is
the sixth largest in the world, with an annual production of more than 3.7 million units in 2010.
According to recent reports, India is set to overtake Brazil to become the sixth largest passenger
vehicle producer in the world, growing 16-18 per cent to sell around three million units in the
course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars,
behind Japan, South Korea, and Thailand.. In 2010, India reached as Asia's third largest
exporter of passenger cars, behind Japan and South Korea beating Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive
vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second
fastest growing automobile market in the world. According to the Society of Indian
Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015
and more than 9 million by 2020. By 2050, the country is expected to top the world in car
volumes with approximately 611 million vehicles on the nation's roads.

The majority of India's car manufacturing industry is based around three clusters in the south,
west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share.
The western hub near Maharashtra is 33% of the market. The northern cluster is primarily
Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India
operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having
an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive
exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest
car manufacturer, Maruti Udyog Ltd., is based. The Chakan corridor near Pune, Maharashtra is
the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and
Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly
plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the
western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility
of General Motors in Halol and further planned for Tata Nanoat Sanand. Ford, Maruti Udyog
Ltd. and Peugeot-Citroen plants are also set to come up in Gujarat.

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The Indian Automobile Industry manufactures over 11 million vehicles and exports about 1.5
million each year. The dominant products of the industry are two-wheelers with a market share
of over 75% and passenger cars with a market share of about 16%. Commercial vehicles and
three-wheelers share about 9% of the market between them. About 91% of the vehicles sold
are used by households and only about 9% for commercial purposes. The industry has a
turnover of more than USD $35 billion and provides direct and indirect employment to over
13 million people.

The supply chain is similar to the supply chain of the automotive industry in Europe and
America.

Interestingly, the level of trade exports in this sector in India has been medium and imports
have been low. However, this is rapidly changing and both exports and imports are increasing.
The demand determinants of the industry are factors like affordability, product innovation,
infrastructure and price of fuel. Also, the basis of competition in the sector is high and
increasing, and its life cycle stage is growth. With a rapidly growing middle class, all the
advantages of this sector in India are yet to be leveraged.

With a high cost of developing production facilities, limited accessibility to new technology,
and increasing competition, the barriers to enter the Indian Automotive sector are high. On the
other hand, India has a well-developed tax structure. The power to levy taxes and duties is
distributed among the three tiers of Government. The cost structure of the industry is fairly
traditional, but the profitability of motor vehicle manufacturers has been rising over the past
five years. Major players, like Tata Motors and Maruti Udyog Ltd. have material cost of about
80% but are recording profits after tax of about 6% to 11%.

The level of technology change in the Motor vehicle Industry has been high but, the rate of
change in technology has been medium. Investment in the technology by the producers has
been high. System-suppliers of integrated components and sub-systems have become the order
of the day. However, further investment in new technologies will help the industry be more
competitive. Over the past few years, the industry has been volatile. Currently, India's
increasing per capita disposable income which is expected to rise by 106% by 2015 and growth
in exports is playing a major role in the rise and competitiveness of the industry.

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Tata Motors is leading the commercial vehicle segment with a market share of about
64%. Maruti Udyog Ltd. is leading the passenger vehicle segment with a market share of
46%. Hyundai Motor and Mahindra and Mahindra are focusing expanding their footprint in the
overseas market. Hero MotoCorp is occupying over 41% and sharing 26% of the two-wheeler
market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the three-
wheeler market.Consumers are very important of the survival of the Motor
Vehicle manufacturing industry. In 2011-09, customer sentiment dropped, which burned on
the augmentation in demand of cars. Steel is the major input used by manufacturers and the
rise in price of steel is putting a cost pressure on manufacturers and cost is getting transferred
to the end consumer. The price of oil and petrol affect the driving habits of consumers and the
type of car they buy. The key to success in the industry is to improve labour productivity, labour
flexibility, and capital efficiency.

Having quality manpower, infrastructure improvements, and raw material availability also
play a major role. Access to latest and most efficient technology and techniques will bring
competitive advantage to the major players. Utilising manufacturing plants to optimum level
and understanding implications from the government policies are the essentials in the
Automotive Industry of India. Both, Industry and Indian Government are obligated to intervene
the Indian Automotive industry. The Indian government should facilitate infrastructure
creation, create favourable and predictable business environment, attract investment and
promote research and development. The role of Industry will primarily be in designing and
manufacturing products of world-class quality establishing cost competitiveness and
improving productivity in labour and in capital. With a combined effort, the Indian Automotive
industry will emerge as the destination of choice in the world for design and manufacturing of
automobiles.

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Maruti Suzuki India Limited 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 not only due to their undisputed leadership in small cars but also to their
commitment to actively bring to MSIL contemporary technology and Japanese management
practices (which had catapulted Japan over USA to the status of the top auto manufacturing
country in the world). A license and a Joint Venture agreement were signed between Govt of
India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The
objectives of MSIL 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.
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 54.2%-owned subsidiary of Japanese automobile and motorcycle
manufacturer Suzuki Motor Corporation. As of January 2017, it had a market share of 51% of
the Indian passenger car market. Maruti Suzuki manufactures and sells popular cars such as
the Ciaz , Ertiga , Wagon R, Alto, Swift, Celerio , Swift Dzire and Omni. The company is
headquartered at New Delhi. In February 2012, the company sold its ten millionth (ten million
= one crore) vehicle in India.

Maruti Suzuki India Limited commonly referred to as Maruti and formerly known as Maruti
Udyog Limited, is an automobile manufacturer in India. It is a subsidiary of Japanese
automobile and motorcycle manufacturer Suzuki. As of November 2012, it had a market share
of 37% of the Indian passenger car market. 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.

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

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HISTORY

Maruti Udyog Limited was established in February 1981, though the actual production commenced
only in 1983. It started with Maruti 800, based on the Suzuki Alto key car which at the time was the
only modern car available in India. Its only competitors were Hindustan Ambassador and Premier
Padmini. Originally, 74% of the company was owned by theIndian government, and 26% by Suzuki of
Japan. 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.

Chronology
Beginnings

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. 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. 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.

Vision:

Visions of any company are those values on which company works. As the MUL is started by
Governmental initiatives it tends to be more consumer oriented and hence cost effective, but on the

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other hand Suzuki’s participation ensures not only need of the profit, but of the need of maximum
profit. The only way for this Nora’s dilemma of selecting principals for company’s working vision ,was
to maximize profit and reducing cost by maximizing output and sales Hence MUL declared its Vision
as-

“The Leader in the Indian Automobile Industry, Creating Customer Delight1 and
Shareholder'sWealth2; eventually become a pride of India”
Customer Delight1 is making sure that performance, after sales service and customer support are best
and beyond expectation. Shareholder’swealth2 is the prime concern for running business smoothly.
MUL knows this and understands “customer is king”, he can change the fortune of any company,
hence goes company’s brand line: COUNT ON US!

Mission:

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

The main objectives/Missions of MUL are:

- Modernization of the Indian Automobile Industry.

- Developing cars faster and selling them for less


- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for economic growth.

- Market Penetration, Market Development Similarly Product Development and Diversification.


- Partner relationship management, Value chain, Value delivery network .

Market liberalisation

In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, three-boxis
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

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more luxurious redesigned Maruti 1000. This and other Maruti 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.

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 Suzuki , 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.

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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.

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. Cleaner cars were
also introduced, with several new models meeting the new "Bharat Stage III" standards. In
February 2012, Maruti Suzuki sold its ten millionth vehicle in India.

Industrial relations

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.

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

13
business advantage of being subsidised by the Government, and the union has better protection
while the company remains in control of the government.

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

JOINT VENTURE RELATED ISSUES

Relationship between the Government of India, under the United Front (India) coalition and

Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian

media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint

venture that had a near monopolistic trade in the Indian automobile market and the nature of

the partnership built up till then was the underlying reason for most issues. The success of the

joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and to 50% in 1992,

and further to 56.21% as of 2013.[18] In 1982, both the venture partners entered into an

agreement to nominate their candidate for the post of Managing Director and every Managing

Director would have a tenure of five years

Company Profile

Maruti Udyog Limited

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 fficient
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 MUL contemporary technology and Japanese management
practices (which had catapulted Japan over USA to the status of the top auto manufacturing

14
country in the world).
A license and a Joint Venture agreement was signed between Govt 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. Maruti created history by going into production in a record 13 months. On
14 December 1983, the then Prime Minister of India, Mrs. Indira Gandhi, handed over the keys
of the first car to Mr. Harpal Singh of Greater Noida .
Volume targets were routinely exceeded, and in March 1994, we became the first Indian
company to produce over one million vehicles, a landmark yet to be achieved by any other car
company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and
Korea, having produced over 4 million vehicles by April 2003.

Maruti is one of the most successful automobile joint ventures, and has made profits every year
since inception except 2011-2012. In 2012-13, we made a profit (before tax) of Rs 1183
million. In 2013-14, the profit (before tax) rose to Rs 2821 million, recording a growth of
138.4% over the previous year. We revolutionized the way Indians looked at cars. "No other
car company so completely dominates its home market" - (The Economist). MUL is the first
and only car company in the world to lead its home market in terms of both market share and
in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer
Satisfaction studies). It is also the only car company in the world to be Top ranked three times
in a row (2011, 2012, and 2013)

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the
transfer of contemporary technology from our partner Suzuki is a smooth process. Great stress
is laid on training and motivating the people who man and maintain the equipment, since the
best equipment alone cannot guarantee high quality and productivity. From the beginning it
was a conscious decision to send people to Suzuki Motor Corporation for on-the-job training

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for line technicians, supervisors and engineers. This helps them to imbibe the culture in a way
that merely transferring technology through documents can never replicate. At present 20% of
our workforce have been trained under this programme.

INTERNATIONAL

Maruti has a strong international presence with sales in over 70 countriesworldwide spanning
from Europe, South and Central America, Africa, Oceania and Asia. In the map above, the
areas shaded in blue indicate our presence.Our total exports till July 2006 was over 323000
vehicles. Over 75% of these vehicles have been exported to Europe. The internationally popular
Alto has carved a niche for itself in extremely competitive and technologically advanced
European countries like Netherlands, UK, Finland, Sweden, Greece, Italy,

Belgium, and in South America.Building on our performance record and the ties of trust we
have forged over the years, we remain committed to our corporate vision of being an
internationally competitive company in terms of products and services, and providing value
and satisfaction worldwide.For successfully carving out this niche in international marketing,
the Government of India has awarded us the Golden Star Trading House status.

EXPORT MODEL

The Alto has replaced the Zen Estilo/Alto in Europe from February 2012. Since then, it has
been creating waves in the competitive compact car markets of Europe.The Alto 800 was
shown for the first time at the Geneva Motor Show in February 2012. Our istributors then
formally launched the Alto in their respective countries.The first country to launch the Alto
was the Netherlands, which is our biggest and most important export market, and to which we
exported over 56,000 vehicles till March 2012. The launch function was held on 30th March
2012 and the highlight of this function was a fuel economy rally in which only journalists from
prominent newspapers and auto magazines participated. Our distributors, BV Nimag, report
that the Alto is a hit with the press and received very good reviews. What followed was way
beyond their expectations. People waited for hours to have a test drive. Around 500 cars were
sold on the first day itself and 2300 cars were booked in the first fifteen days. This tremendous
response led to the distributor doubling his planned purchases of the model for the year April

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2012-March 2013 to 9000 cars.We will export the New Alto800 to the following European
countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Netherlands,

and UK. Orders for 900 units from Sweden have already come inSwitzerland.

Industrial relations

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.

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.

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.

Manesar violence

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. 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

17
death. The incident is the worst-ever for Suzuki since the company began operations in India
in 1983.

Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a
monthly conveyance allowance of 10,000, a laundry allowance of 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. According to the Maruti Suzuki Workers
Union a supervisor had abused and made discriminatory comments to a low-caste
worker. These claims were denied by the company and the police. 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. 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. Maruti employees currently earn allowances
in addition to their base wage. 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.

India Today claimed 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 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

18
involved. Per the FIR, police have arrested 91 people and are searching for 55 additional
accused.

Maruti Suzuki in its statement on the unrest, 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. The shut down of Manesar plant is leading to a loss of about
Rs 75 crore per day. 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. 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 11,500 per month, while
a permanent worker received about 12,500 a month at start, which increased in three years
to 21,000-22,000 per month. 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.

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 apologizing 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.

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. Manesar violence adds to India's recent incidents of labour

19
disputes turning to violence. Analysts claim 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.

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.

PRODUCTS AND SERVICES

Current models

Model Launched Category Image

Omni 1984 Minivan

20
Gypsy 1985 SUV

Wagon R 1999 Hatchback

Swift 2005 Hatchback

SX4 2007 Sedan

Grand Vitara 2007 Mini SUV

Swift DZire 2008 Sedan

21
Ritz 2009 Hatchback

Eeco 2010 Minivan

Alto K10 2010 Hatchback

Kizashi 2011 Sedan

Ertiga 2012 Mini MPV

Alto 800 2012 Hatchback

Stingray 2013 Hatchback

Celerio 2014 Hatchback

22
Discontinued models

Model Launched Discontinued Category Image

Gypsy E 1985 2000 SUV

1000 1990 2000 Sedan

Zen 1993 2006 Hatchback

Esteem 1994 2008 Sedan

Baleno 1999 2007 Sedan

Versa 2001 2010 Minivan

23
Grand Vitara XL7 2003 2007 Mini SUV

800 1983 2012 Hatchback

Alto 2000 2012 Hatchback

Zen Estilo 2006 2013 Hatchback

A-star 2008 2014 Hatchback

Major players in the automobile industry and their brands:

MARUTI SUZUIKI 1. 800


2. Omni
3. Maruti Zen (Discontinued, but revived and re-branded as the
Zen Estilo)
4. Alto
5. Esteem
6. Baleno - (Discontinued)
7. Gypsy

24
8. Swift
9. SX4
10. WagonR
11. Versa
12. Zen Estilo - First Generation Suzuki MR Wagon
13. Grand Vitara - First Generation Suzuki Grand Vitara

 Sumo
 Safari
TATA MOTORS
 Indica
 Indigo
 Indigo Marina
 TL

HYUNDAI  Santro (sold as the Santro Xing)


 Accent (2nd generation)
 Sonata (sold as the Sonata Embera)
 Verna (3rd generation Accent)
 Getz (sold as the Getz Prime)
 Elantra (3rd generation)
 Terracan (discontinued)
 Tucson

HONDA  Accord

 City

 Civic

25
 CR-V

FORD  Ikon
 Endeavour
 Fusion
 Fiesta

TOYOTA  Qualis (Discontinued) – 3rd Generation Toyota Kijang


 Camry - 6th Generation Toyota Camry
 Corolla - 9th Generation Toyota Corolla
 Innova
 Land Cruiser Prado

1. Estilo

Maruti launched all new Estilo. If you are wondering why I dropped Zen from this car's name
then let me explain. Estilo has got Wagon R's engine and chassis and Suzuki MR Wagon's
shape. Whatever remains is taken from Zen, well does anything remains actually? Yes, Name!
Name is taken from Zen, 'Zen Estilo'. In essence it’s stylish Wagon R, Japan's MR Wagon,
combination of the two or anything but Zen. It seems Maruti wants to exploit Zen brand-image
hence named this car after Zen. Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-
cylinder, 16-valve, MPFI F10D Petrol) under the hood that is found in Maruti Wagon R.
Absolutely nothing has been changed except for the fact that this engine is much refined and
is slightly better at responsiveness and fuel economy. This simply translate into 'Zen Estilo is
a bit faster and more fuel economic than Wagon R'. Due to highly good drivability, driving in
city would be more fun with Zen Estilo. Electronic Power Steering (not available in LX
version) really helps in crowded traffic. Owning and maintaining Zen Estilo won't be a
problem; engine is proven reliable and virtually maintenance-proof.

26
2. Wagon R Duo

At first glance the MarutiWagonR Duo looks quite normal. Well, that is if you think the
WagonR's boxy looks are normal to start to start with. Frankly, for a car that has to get around
a city, I really don't care, because the Duo is all about CNG, and the fact that it is first factory
fitted CNG car in India. Factory-fitted means one major plus, your warranties don't get voided
because of the gas fitment. There is no denying the cars cost advantage, this is the cheapest
Maruti vehicle to run, and that in it is a massive statement. The redesign of the car hasn't just
meant a fresh exterior look; it has also meant new interior - rotary controls on the panel and a
very neat looking display with an all-new Speedo

The problem is that despite the not insignificant cost savings, you save a rupee a kilometer on
CNG over Petrol, which even makes the extra Rs 24000 you have to pay for the car seem worth
it, the Duo just wheezes at times. And this is despite two important facts, first CNG has more
energy than CNG (that other gas) and because this is a company-designed car, Maruti engineers
have really played around with the engines tuning.

3. Swift

Competing with the other cars of Maruti, Maruti Swift is gradually making its position in the
world of mid-sized family car. Maruti Swift has come up with the special technical
specifications of 16 valve 4-cylinder, 1300 cc engine generating power. Maruti swift is
equipped with various safety features and well advanced equipments. 3 assist grips, 3 spoke
urethane steering wheel, antenna, cabin light (3 position), console box (lower), cup holders
(front 2, rear1), front door trim pockets, green tinted glass window, halogen headlamps,
headlamp leveling device, heater and manual Air conditioning, OVRM (internally adjusted),
rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent, tailgate opener key type,
trip meter (digital display), sun visors (both sides), brake assist , child lock (rear door), high
mounted stop lamp, power steering, rear seat belts etc. are the

features available in this model. Apart from the features found in other model, striking features
of this model are black colored A & B pillars, 12v accessory socket in center console, day and
night rear view mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer,
driver's seat belt warning lamp, vanity mirrors (sun visor co-driver side), rear seat head
restraints, fabric accented door trims, central door locking (4 door), front and rear electronic

27
windows, front fog lamps, light off/ key reminder, manual air-conditioning, key not removed
warning buzzer, etc

4. MarutiBaleno

This mid size car with its bold and elegant looks along with its smart performance

is becoming the part of the dream of many car lovers.

Colors

 Pearl Silver
 Silky Silver
 Superior White
 Midnight Black
 Bean Blue

Along with the features present in Lxi, there are many other extra features available in this
model like leather steering cover, automatic climate control, rear spoiler with LED stop lamp,
stylish alloy wheels, MP3 music system, silver finish centre garnish, remote keyless entry
etc.Has various effective comfort and safety features like tilt adjust power steering, central lock
door locking, electric windows, tachometer, trip meter, "key not

removed" warning buzzer, AC illumination system, cigarette lighter, ash tray illumination,
electrically operated AC louver switches, semi concealed windshield wiper (2 speed plus 2
controlled intermittent), front and rear mud flaps, day/night inside rear view mirror, velour
floor carpet, front door armrests and pockets (both sides), rear door child lock, lockable glove
box, side impact beams etc.

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5. Maruti Esteem

Sophisticated big structured Maruti Suzuki esteem is one of the old car of the arutiUdyog
group. To run this huge car its engine is made of lightweight all-aluminum. This
contemporary engine has capacity of 65 bhp at 6000 rpm.According to *Mileage (Auto India,
Nov 2005), Esteem holds the topmost position on mileage among the other category of cars
including the small cars.

There are three models of Maruti Suzuki Esteem:

 Maruti Esteem (Lx)


 Maruti Esteem (Lxi)
 Maruti Esteem (Vxi)

The basic model of Maruti Suzuki Esteem includes various safety features and unique
configuration in it. Air conditioned Maruti Suzuki Esteem for the comfort of the owner
provides the facilities of cabin heater, front seat back pockets (both sides), front door pockets
(both sides), air flow controls, remote operated fuel tank lid and trunk lid, coat hanger hook
on grip assistance etc. Instrument panel of this model includes tachometer and speedometer
with sporty dial. Security measurement of this model has headlamp leveling device,
collapsible steering column, lockable glove box, childproof rear door locks, halogen
headlamps, prismatic day-night inside rear view mirror etc.This model is more upgraded
version of Maruti Suzuki (Lx). Apart from the features that are already in MarutiSuzuki (Lx),
there are other few more added features existing in Maruti Suzuki (Lxi). For comfort these
models specially have rear view mirror on the left side, power steering and power window
(front).

Hyundai Motor

29
Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly owned
subsidiary of South Korean multinational, Hyundai Motor Company. HMIL is the fastest
growing and the second largest car manufacturer in India and presently selling 30 variants of
passenger cars in six segments. The Company has set up more than 70 dealer workshops that
are equipped with the latest technology, machinery, and international quality press, body and
paint shops, across the country, thereby providing a one-stop shop for a Hyundai customer.

Hyundai also has a fleet of 78 emergency road service cars that can provide emergency service
to all its customers anytime, anywhere.

6. Hyundai Santro

In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design, style,
space and other special features has made it one of the highest purchasable cars among any
economy class.

It has five variants:

 Santro XK
 Santro XK (Non AC)
 Santro XL
 Santro XO
 Santro AT

Along with the other features that are present in Santro XK (Non AC), other features present
in this model are air conditioner, day and night inside rear view mirror, chrome1 radiator grille
etc. Along with the features available in Santro XK, added features in this model are 4 doors
CLS, passenger side OVRM, tinted glass, map pocket front door driver side, front door full
size arm rest, and door trim with fabric insert, hydraulic power steering, power windows (front)
etc

7. Getz

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Hyundai Motors launched small family car Getz at August 2004. Euro III emission

norms fulfilled Car, Getz powered by 1300 cc. engine. Only the petrol version of

this car was launched initially.

There are four variants found in this car:

 Hyundai Getz GLS


 Hyundai Getz GLX
 Hyundai Getz GVS

This model has highly advanced features like AC with 4 speed blower, ash tray w/o
illumination, center console w/o pen and jug holder, 60:40 rear seat split, vanity mirror
passenger side, rear defogger, height adjustable seat belts (front), waist line molding, tilt
steering, map pockets, front and rear power windows, rear seat back inclination (4 position),
digital clock, rear wiper and washer, front for lamp, body color radiator grille, rear bumper
reflectors, rear mud guard etc. Few features to view comfort and safety in mind, this model are
being specially equipped with rear wiper and washer, rear defogger, alloy wheels etc. This
model has few important features like height adjustable front seat belts, body colored radiator
grille, rear bumper reflectors etc.

8. Hyundai Accent
Hyundai Accent was ceremonially launched at Frankfurt International Motors Show on 15
September 1999. It came in two versions, i.e. Petrol and Diesel Versions in India initially, while
in Europe it was introduced only with the Petrol version. Initially Accent came up with the
manual transmission which in turn started getting available in automatic transmission. To know
about the models of

this car, please see this following text:

 Hyundai Accent GLE


 Hyundai Accent GLS
 Hyundai Accent Viva

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 Hyundai Accent Viva CRDi
 Hyundai Accent CRDi

This model has many distinctive features like 60:40 split folding rear seats, automatic trunk
lamps, body colored door handles, bumper with or without molding, door trims and consoles,
high mounted stop lamps (HMSL), Mist (one stoke wiper blades), semi cloth upholstery, trip
odometer, rear license garnish, waistline molding, wiper (3 no. of speed), cross bar under dash
board, crumple zone, dual horn, engine sub frame etc. Features that are striking in this models
are tinted glass, remote boot release, split rear seats, tachometer, remote fuel cap release, sun
visors with vanity mirror, power telescopic antenna, luxury full cloth upholstery, energy
absorbing collapsible steering column, full size wheel cover etc.

9. Verna

The most awaited Verna finally launched in India. Verna can be considered as one of the most
shock wave-creating cars in India; within first five days of its launch over 2000 Verna cars had
been sold. Competition seems to be in shock.Comfort levels are quite good, I wasn't expecting
them to be like this, and there is marginal refinement over Accent. Suspensions give you a feel,
'yes this car is meant for India', no bumpy rides. Car handles very well too. Interiors are not
class, as expected, though they don't give a cheap feeling at all. City is way ahead of Verna in
interiors and room. Driving position is good and to make it even better, height-adjustable
driver-seat is provided in higher versions. AC is quite effective, cools the cabin quickly. Due
to enough power, switching on AC

doesn't make any difference in performance. Exterior design is satisfactory. Its neither great to
boast about nor is bad to complaint about. Like all other Hyundai car designs, people have
started to criticize Hyundai for design of Verna. After having first glance of Verna, one of
Carwale.com colleagues called out, 'hey, it looks like Baleno from front and Fiesta from
behind!’ You can't help it, it’s inevitable with Hyundai. ABS is available as optional across the
range. It’s a bit disappointing that Airbags are not provided even as optional. Central Locking
is available as standard feature in all the versions and keyless entry in petrol

versions except the lowest-end Verna i. Finally Indian automotive industry is taking good
shape. We have enough options in every segment available. From Maruti to Tata to Honda to

32
Volkswagen to BMW to Porsche, every major world car player is interested to sell its cars to
Indian people.Everyday we have news about some new launch. Verna is just launched and Ford
has just announced launch of 1.6 TDCi (diesel) in two months time, Maruti has confirmed
discontinuation of Baleno and arrival of new Baleno

Tata Motors Limited

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000
crores in 2005-06. Its name comes first in the category of commercial vehicles and the second
largest in the passenger vehicles, mid size car and utility vehicle segments. The company is
the world's fifth largest medium and heavy commercial vehicle manufacturer.
Over 3.5 million Tata vehicles are moving on Indian roads, since 1954. Its manufacturing
plant is located at Jamshedpur, Pune and Luck now

10. Tata Indica V2

Having attributes of three popular cars, Tata Indica is ruling the market. Making of Tata
Indica with the concept of main distinguishing features of three popular cars i.e., with the
overall structure of Maruti Zen, interior space like ambassador and cost nearly like Maruti
800 was a challenging venture of Tata Motors.Its fully foldable rear seat has made this car
more accommodating for extra luggage. For safe and secure driving and to give proper
comfort, side-impact beams, rigid monochrome frame and child safety locks are attached to
this car.

Different Tata Indica models are:

 Tata Indica V2

33
o DLX
o DLG
o DLS
o DLE

With its market catching looks and few striking features have set a trend for the choosy buyers.
Its power steering, central locking system, four power windows have not only made this
comfort driving car but also give assurance for the safety. To mention more about convenience
of driving, HVAC system provides good cooling effect even in a sultry summer days. Door
handles, body colored bumpers, ORVM and wheel arch flair are few more advantages that the
owner of this car can easily avail.To assure safer driving along with the elegance and appeal of
the car, this model is equipped with body colored bumpers, the wheel arch flairs, internally
adjustable OVRM and central locking system. To avoid any inconvenience in operating the
window, front windows are power windows. To avoid the scorching heat in a summer days,
HVAC system of cooling can soothe anybody inside the car

11. Tata Indigo

Indigo with its market catching features like leather upholstery, beige interiors, LCD screen etc
has made its position in the automobile industry.

Indigo is available in Petrol and Diesel models.

 Petrol Variants
o Indigo GLE
o Indigo GLS
o Indigo GLX

It is equipped with various features like manual power steering, manual front and

rear windows, grey bumpers, half wheel covers, partial fabric lining on seat, molded roof lining,
high mounted stop lamp etc. To mention few of the features present in this model along with
the features of rest of the two models, there is available power steering and power windows,

34
rear fog lamps, rub rails on door, full wheel covers, both sides outer rear view mirrors, rear
defogger, central locking, audio warning signal for driver seat belt and many more.

12. Indigo Marina

Fully equipped with 32 bit micro processor and 1405 cc MPFI Petrol engine, this variant
delivers maximum power of 85 PS @ 5500 rpm and maximum torque of 11kgm @ 3000 rpm.It
has various features like AC system,2 spoke wheel, grey bumpers, chrome-

plated grill lip, black door handles, roof rails, partial wheel covers, digital clock, internal
antenna, partial fabric seats, anti-submarine type front seats, child safety locks on rear doors,
collapsible steering column, side impact beams etc.This model along with the features of Indigo
Marina GLE comes with various other features like HVAC system, aluminum gear shift knob,
4 spoke wheel, power steering, body colored bumpers, rub rails on door, full wheel covers,
stylish grip and cover for hand brake lever etc.

35
Chevrolet

Its king like entry happened in India in 1928 with its National Series AB touring. Reliability
of this car was proved by its 171 cubic inches, 24.7hp four cylinder

engines.
General Motors, parent company of Chevrolet, was the first in setting up assembly plant in
India. First office of Chevrolet was located at Mumbai and its assembly plant was in Sewree.

13. Chevrolet Aveo

With the assurance of safety and technologically advanced equipments, Chevrolet Aveo
provides complete statement of reliability and efficiency. Safety features like tailor welded
blanks, high- strength steel structure, B-pillar, height adjustable safety belt anchors, rear child
safety door locks, front safety belt pretensionetc really confirm the security of the passenger.

It has four variants:-

 Aveo 1.4 E*
 Aveo 1.4
 Aveo 1.4 LS
 Aveo 1.6 LT

It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille, wide 185/60
R14 tyres, pullout type door handle, two tone beige interiors, power steering and power
window, central locking, rear defogger with timer, remote trunk lid opener, engine service soon
indicator etc. It is well equipped with 1.4L DOHC 94 PS, 5 Speed MT, chrome radiator grille,
wide 185/60 R14 tyres, pullout type door handle, two tone beige interiors, power steering and
power window, central locking, rear defogger with timer, remote trunk lid opener, engine
service soon indicator etc. Its main mentionable features along with the other features which
are associated with the rest of the models, are 1.6L DOHC 102 PS, 5 speed MT; double DIN

36
MP3 system with 6 speakers; rear spoiler with CHMSL; chrome coated exterior handles and
trunk lid garnish; 14" alloy wheels;electrically adjustable OVRM; wood finish on IP and door
trim; car alarm and key less entry system.

14. Optra

With its 1.8 litre engine capacity runs up to 8.1 kmpl inside the city crowd roads and 11.2 kmpl
on the highway. Its luxurious and comfortable interior include center console, entral armrest,
flip down rear armrest, automatic climate control air conditioners, enough legroom space,
sunglass holder, mobile phone holding space in the rear door, cup holders etc.

It has various variants:

 1.6 Elite
 1.6 LS Elite
 1.6 LT Royale
 1.8 LT
 1.8 LT AT

It is equipped with various comforts and safety features like driver seat height adjuster; plush
feel beige fabric, silver finish on control panel and luxurious wood finish on IP and door boards
etc. Along with the features present in 1.6 Elite, this is available with tilt steering, remote
keyless entry with chirp and trunk opening, AWIS, driver seat lumbar support, front fog lamps,
body colored outside mirrors and door handles etc. There are many extra features present in
this model along with the features of 1.6 LT Royale like automatic climate control system, all
round wood finish including Centre Panel, tilt adjustable front headrests, 15" alloy wheels with
ABS and EBD as option at extra cost, rear disc brakes, dual airbag, double DIN audio system
with 5 CD changer.

37
In more ways than one, the year 2011-12was a watershed year for Maruti Suzuki India Limited
(MSIL). The company has consolidated and initiated a new growth momentum. There have
been several developments, of which it is useful to begin with three.

First, driven by renewed vigor and aggression in the market, Maruti recorded its highest ever sales
of over 4.72 lack vehicles in the domestic & export markets which resulted in gross sales revenue of
Rs.112,840 million — a growth of 25.8 percent over 2009-10. It is the highest top-line growth in
the last seven years.

 Second, this high sales growth, coupled with significant improvements in operational efficiencies,
has translated into much higher returns on investment. Earnings per share (EPS) more than trebled
from Rs.9.14 in 2010-11to Rs.21.77 in 2007-08.

Third, the Government of India divested a majority of its shares through an initial public offer (IPO)
and made way for greater participation from you — the shareholders – in the fortunes of India’s
leading passenger car manufacturer.

In a nutshell, therefore, 2009-10 marks the beginning of a new journey for your company, as
it restructured itself in the face of stiff competition and entered a new high growth phase.

The sharp revival in the Indian economy — from 6per cent GDP growth in 2010-11 to 8.8 per
cent in 2011-12— has definitely assisted your company in increasing revenue. This is the
highest GDP increase recorded by India since the advent of economic liberalization, and the
country has become one of the fastest growing economies of the world .This has considerably
increased per capita disposable income which, coupled with much easier availability of
significantly cheaper consumer finance, has driven automobile sales.

Historically, the fortunes of automobile industries across the globe are strongly correlated with
macro-economic parameters and the performance of the industrial sector. Chart A plots growth
in GDP, industry, passenger vehicle (PV) sales volumes and total automobile sales volumes –
and emphasizes this correlation. In 2011-12, the Indian passenger car and multi-utility
vehicles market finally reached efficient scales of nearly a million. Although the improved
economic environment helped growing automobile sales, it was not a totally smooth drive for

38
the Indian automobile industry. An increase in the number of players and models has resulted
in fierce competition — driving down prices across all segments. The industry also witnessed
significant rise in prices of key raw materials like steel, rubber and plastics. Thus, profit margins
were under pressure.

Maruti has always believed in size and spread. When the Indian automobile industry was
reconciled to around 40,000 cars in early 1980’s, MSIL was the first company that aspired to
sell 100,000 cars a year. The aspiration of being the market leader with high sales volume
continues to be intrinsic to your company’s philosophy. This belief has held the company in
good stead during 2011-12— where the strategy of pushing volume growth resulted in higher
margins due to the positive effects of better capacity utilization. Improved operational
efficiencies, which are largely due to the transfer of technology, systems and work culture
from (MSIL) majority shareholder.

Suzuki Motor Corporation (SMC) — has also contributed to the improved returns on
investments. In 2010-11, the company has had record growth in bottom-line and return on
investments. Here are some numbers.

 Net profit margin (PAT/total income) increased from 2 per cent in 2011-12 to 5.6 per cent in
2010-11.
Return on average capital employed (ROCE) increased from 9.9 per cent in 2007-08 to 22.3 per
cent in 2008-09.
Return on average net worth (RONW) increased from 5.2 per cent in 2007-08 to 16.5 per cent in
2008-09.
Earnings per share (EPS) increased from Rs.5.14 in 2007-08 to Rs.18.77 in 2008-09, while cash
EPS increased from Rs.17.79 in
2007-08 to Rs.38.39 in 2010-11.

MSIL also witnessed a key structural change during 2008-09. The company was originally set
up as a joint venture between the Government of India (GOI) and SMC to provide the average
Indian with a reliable and affordable car. Today, 20 years hence, MSIL has come a long way
from charting the initial growth of the Indian automobile industry to becoming one of India’s
leading business organizations

39
-which has also promoted overall industrial growth through its linkages with vendors. GOI
played a key role in supporting Maruti’s growth. In 2010-11, GOI divested a bulk of its shares
in the company to the public.

GOI offered 72,243,300 equity shares, which is 25 per cent of the company’s share capital, for
sale to the public through the book-building route. Even in a somewhat bearish stock market,
the issue was fully subscribed within three hours of its opening. In fact, it was oversubscribed
nearly 10 times at the floor price. Encouraged by the overwhelming response, GOI exercised
the green-shoe option, and offloaded an additional 10 per cent of the issue size (equivalent to
7,224,300 equity shares).

Thus, MSIL is now a listed company in Indian stock exchanges (Bombay Stock Exchange
&National Stock Exchange) with Suzuki Motor Corporation having 54.2 per cent share
ownership. Today, GOI owns 18.3 per cent of MSIL’s ordinary shares, while 27.5 per cent is in
public hands.

MSIL is a company which is constantly reinventing itself in a sector that is on the move. In the
course of the following sections, we shall discuss markets, operations and financials of Maruti
during 2008-09, and analyze the rapid external and internal transformations in its business. All
data pertaining to markets is based on figures released by Society of Indian Automobile
manufactures.

40
The Revolution

Maruti created history by record production in 13 months. On 14 December 1983, the then

Prime Minister of India, Mrs. Indira Gandhi, handed over the keys of the first car to Mr. Harpal

Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, it became the

first Indian company to produce over one million vehicles, a landmark yet to be achieved by

any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside

Japan and Korea, having produced over 3.5 million vehicles by December 2001. Maruti is one

of the most successful automobile joint ventures, and has made profits every year since

inception till 2000-01. In 2000-01, although we generated operating profits on an income of Rs

92.5 billion, high depreciation on new model launches resulted in a book loss. We are again on

track for profits in 2001-02, with a profit of Rs 300 million in the first half. In this period, sales

were increased by 5.3%, against an industry decline of 6.1 %. We revolutionized the wav

Indians looked at cars. "No other car company so completely dominates its home market" -

(The Economist). Despite there being 11 companies now in the passenger car market, Maruti

holds about 60 % of the total market share. MSIL is also the first and only car company in the

world to lead its home market in terms of both market share and in the JD Power Customer

Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies).

Sales and service network

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 Authorized Service Stations) in 1,436 towns and cities throughout India. 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.

41
Maruti Insurance

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

This service started as a benefit or value addition to customers and was able to ramp up easily.
By December 2005 they were able to sell more than two million insurance policies since its
inception.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002.
Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti
and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client
in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited,
Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its
strategic partners in car finance. Again the company entered into a strategic partnership with
SBI in March 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.

Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of
Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank
Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary
of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds
the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form
Maruti Countrywide. Maruti claims that its finance program offers most competitive interest
rates to its customers, which are lower by 0.25% to 0.5% from the market rates.

Maruti TrueValue

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.

42
Maruti Accessories

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

Maruti Driving School

As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School
in Delhi. Later the services were extended to other cities of India as well. These schools are
modelled on international standards, where learners go through classroom and practical
sessions. Many international practices like road behaviour and attitudes are also taught in these
schools. Before driving actual vehicles participants are trained on simulators.

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."

Exports

Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and
it does not operate in the domestic Indian market. The first commercial 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. 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.

43
Awards and recognition

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.

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

SOME IMPORTANT MILESTONES

 1983 – First car, the 796 cc hatchback Maruti 800 launched

 1984 – Maruti Omni van launched

 1985 – Maruti Suzuki Gypsy launched

 1990 – Three box 1000 cc car Maruti 1000 launched

 1993 – Zen launched

 1994 – Esteem 1.3 litre (1298 cc, three box car) launched

 1997 – New Maruti 800 (796 cc, hatchback car) launched in Standard and Deluxe
versions

 1999 – Wagon R and Baleno launched

 2000 – Alto launched

44
 2001 – Versa launched

 2002 – Alto Lxi – Spin launched, Wagon R Pride is launched, Esteem Diesel
launched and all variants upgraded

 2003 – The new Grand Vitara launched

 2004 – Maruti Suzuki Swift launched

 2006 – Zen Estilo and Swift D’zire launched

 2007 - SX4 luxury Sedan launched with the tagline “Men are back”

 2008 – MSIL launches fifth world strategic model A-Star

 2009 – Maruti Suzuki launches Ritz

 2010 – Maruti Suzuki Launches K10

 2012- In this year two cars launches Ertica and Alto 800

 2014- MSIL launches Celerio and Ciaz(Sedan)


 2015 – Baleno and S-Cross launched
 2016 – Vitara Brezza(Mini SUV)
 2017 – Launched Ignis and Baleno RS

45
REVIEW
OF
LITERATURE

46
 Shashank Srivastava (2012) GM Maruti Suzuki has mentioned that the consumer is
price conscious and the brand loyalty is diminishing because of the number of options
in each segment moreover the customers are ready to experiment today.

 Peyton, R.M. (2013) in their working paper submitted at the Allied Academies
International Conference presented a comprehensive review of the literature on various
Customer Satisfaction and Dissatisfaction (CS/D) theories proposed. The literatures are
specifically prior to the 1990s. This review focuses on the major components of the
decision-making process, also addresses the measurement-related issues relevant to this
body of literature.

 Willard Hom (2014) presents two broadly classified customer satisfaction models
viz. Macro-models, which place the customer satisfaction among a set of related
constructs in marketing research and Micro-models, which theorize the elements of
customer satisfaction. The paper also gives various models of customer satisfaction
from the perspective of the marketing research discipline

 Vavra, T.G. (2016) in his book suggests specific programmes to improve the
measurement of customer satisfaction in an organization. The author describes five
critical skills required for this taskviz.sampling /customer-participant selection,
questionnaire design, interviewing /survey administration, data analysis, and quality
function deployment-building action plans

47
OBJECTIVES

48
The study has been under taken to analyze the marketing stratetgy of MARUTI SUZUKI in
GURGAON with a special reference to the RKBK AUTOMOBILES (P) LTD., the other
objectives are:
 To gather information about marketing strategy of MARUTI SUZUKI in the geographic
region of GURGAON .
 To know the different techniques used by MARUTI SUZUKI for maximum sale in the
city.
 To know the customer satisfaction about the safety and comfort provided by MARUTI
SUZUKI.

 To provide suggestions, in improving the customer satisfaction and the company sales
and profitability
 To know the customer satisfaction towards the after sales service offers by MARUTI
SUZUKI so that more attraction of customers can occur.

49
RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY

1. Primary Sources:

i. Group discussions and Brainstorming sessions

ii. Questionnaire

50
iii. Interaction with sales staff of Maruti Suzuki.

2. Secondary Sources:

i. Internet

Objectives of the study:

 To get an empirical view of the Maruti Suzuki.

 To study the procedure of customer complaints in Maruti Suzuki

 To get an insight of all the competitors.

 To study the various products offered.

 To study the customer’s preference and perception regarding Maruti Suzuki.

Scope of the study:

The objective of the project was to find out the prospective buyer of Maruti Suzuki and also to provide
key information about the buyer’s perception and preferences. The study also helps in getting
information about the performance of the company as well as their own investment center or why
people go for Maruti Suzuki. It helps in finding out the problems related to buyers.

Managerial usefulness of study:

51
The study highlights the problems related to distribution of MARUTI SUZUKI so that the company can
improve the service rendered by them as a distributor. The study gives information about prospective
buyers both individual as well as institutional clients. The study provides the complete information
about all close competitors of MARUTI SUZUKI. It provides the feedback from customers regarding
their problems and their perception about investing in MARUTI SUZUKI so that the company can
improve their services.

Data Collection

This report is based on primary as well secondary data, however primary data collection was
given more importance since it is overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem, collecting,
analyzing the required information data and providing an alternative solution to the problem .It
also helps in collecting the vital information that is required by the top management to assist
them for the better decision making both day to day decision and critical ones.

Data sources:

(A) Primary Data

Primary data are those, which were collected afresh & for the first time and thus happen
to be original in character. However, there are many methods of collecting the primary data. All
have not been used for the purpose of this project. The ones that have been used are:

 Face to face communication (Interviewing)


 Observation

(B) Secondary Data

When an investigator uses the data that has been already collected
by others is called secondary data. The secondary data could be collected
from the journals, reports and various publications. The advantage of the

52
secondary data can be economical, both in the terms of money and time
spent. In this report secondary data was collected through:

 Company balance sheets


 Reports and records
 Flow charts and tables
 Websites
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.Research studies evolve through a series of steps, each
representing the answer to a key question.

RESEARCH DESIGN

I propose to first conduct a intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall
be further taken up in the next stage of exploratory research. This stage shall help me to restrict
and select only the important question and issue, which inhabit growth and segmentation in the
industry.

The various tasks that I have undertaken in the research design process are :

 Defining the information need


 Design the exploratory, descriptive and causal research.

RESEARCH PROCESS

The research process has four distinct yet interrelated steps for research analysis It has a logical

and hierarchical ordering:

 Determination of information research problem.

53
 Development of appropriate research design.

 Execution of research design.

 Communication of results.
Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal
and ongoing.

EXPLORATORY RESEARCH

The method I used for exploratory research was

 Primary Data

 Secondary data

DESCRIPTIVE RESEARCH

STEPS in the descriptive research:

Statement of the problem

 Identification of information needed to solve the problem

 Selection or development of instruments for gathering the information

 Identification of target population and determination of sampling Plan.

 Design of procedure for information collection

 Collection of information

 Analysis of information

 Generalizations and/or predictions

54
APPLIED STATISTICAL TOOLS

Graph and Pie-chart are used as statistical tools for hypothesis ,for interpretation and for

recommendation.

DATA COLLECTION

Data collection took place with the help of filling of questionnaires. The questionnaire method
has come to the more widely used and economical means of data collection. The common
factor in all varieties of the questionnaire method is this reliance on verbal responses to
questions, written or oral. I found it essential to make sure the questionnaire was easy to read
and understand to all spectrums of people in the sample. It was also important as researcher to
respect the samples time and energy hence the questionnaire was designed in such a way, that
its administration would not exceed 4-5 mins. These questionnaires were personally
administered.

The first hand information was collected by making the people fill the questionnaires. The
primary data collected by directly interacting with the people. The respondents were contacted
at shopping malls, markets, places that were near to showrooms of the consumer durable
products etc. The data was collected by interacting with 100 respondents who filled the
questionnaires and gave me the required necessary information. The respondents consisted of
housewives, students, businessmen, professionals etc. the required information was collected
by directly interacting with these respondents.

Primary data was collected through questionnaires

Sample size : 120

Sample area : New Delhi

Sample Unit : Officials of SSA International Ltd and other

KOEL exporters/traders involved in international business

55
Sample method : Random sampling method

Sampling:

(A) Sampling procedure:

The sample was selected of them who are the customers/visitors of Maruti Suzuki DG Set. It
was also collected through personal visits to persons, by formal and informal talks and through filling
up the questionnaire prepared. The data has been analyzed by using mathematical/Statistical tool

(B) Sample size:

The sample size of my project is limited to 115 people only. Out of which only 70 people had
invested in Maruti Suzuki. Other 45 people did not have invested in Maruti Suzuki.

(C) Sample design:

Data has been presented with the help of bar graph, pie charts, line graphs etc. The following are the
questionnaires that was been carried out at the time of survey. The questionnaires also shows the
value of perception of customers towards MARUTI SUZUKI.

1 Maruti Suzuki in market


2 Uses of Maruti Suzuki of Maruti Suzuki
3 Satisfied customers of Maruti Suzuki
4 Perception about the brand name
5 Buying behaviour of customer to Maruti Suzuki
6 Preference of customers to Maruti Suzuki
7 Reasons to prefer Maruti Suzuki
8 awareness of the brand name in market

LIMITATIONS:

56
 Suggestion is based on the given information.
 Due to the large number of employee it was not possible to
collect all the information from each.
 The time period is limited to know the entire process .We cannot draw effective
conclusion as it is continuous process.
 The area of survey was limited to some particular areas.

SCOPE OF THE STUDY

Extensive survey on customer preferences will provide lot of valuable information about the brand
awareness of the product and it will be easy to find out the likes and dislikes about the product.

For company, it will provide through knowledge about the consumer preferences in comparison with
other market product and suggest valuable direction of the current market trend.

It will provide lot of information about the market trend and customer preferences about the product.

It will include valuable suggestions for the company, how the company can strengthen their own
brand?

The study of customer preferences will provide me lot of information on:

How customer profile differs across the user segments?

Does the different classes of the customers differ their preferences?

57
Data Processing, Analysis &

Interpritation

Maruti's Work Culture

At Maruti, empowerment is being practiced. The employees are free to make suggestions.
Teamwork and quality are important ingredients in Maruti. Also, problem-solving approach is
practiced at Maruti. For this purpose, a team of 5-8 members is formed to identify the problems and
then finding solutions to the prioritized problems. These groups are known as Quality Circles.

Participative management, teamwork, kaizen (continuous improvement), communication and


information sharing, open office culture for easy accessibility, etc. are some of the management
practices followed at Maruti Udyog Ltd.

58
TRAINING & DEVELOPMENT

• Annual Training Plan - All Levels

• Training customised to meet Organisational Objectives

• Topics selected based on Vision, Values & Departmental

Feedback of Company-wide Managers

• Competency Mapping to identify Individual Training Needs

• Technical Training on latest Technologies abroad at SMC,

Japan

STRONG FOCUS ON TRAINING INITIATIVES

- Build a Learning Organisation

- Continuous Value Additions to Professional Skills

- Customised Training

- Training to the personnel of Business Partners

OVERSEAS TRAINING

Training held in co-ordination with SMC, Japan and

AOTS (Assoc. for Overseas Tech. Scholarship)

(Covered 1600 employees under the various schemes)

59
• 6 months SMC Training for Technicians

- OJT in SMC, Japan (2 batches/yr of 50 each)

• 9 months Javada Training for Press, Tool & Die

Specialists - Design & Maintenance

• AOTS Managerial Training (4-10weeks) for Manager &

above - Managerial Best Practices

• AOTS Technical Training (3.5 to 6 months) for

Supervisors & above - Technological Know how

• R & D Training (2 yrs.) - Research on new Technologies

Conflict Resolution Mechanism

1. Our relationship with the Future Group is essential to our business model, and we believe that it
will operate to benefit of shareholders of our Company. This relationship may also create conflicts
of interest with respect to potential opportunities between our Company and other entities within
the Future Group.

2. See “Risk Factors Conflicts of interest may arise and our failure to deal with them appropriately
could damage our reputation and adversely affect our business.” On page of this Draft Red Herring
Prospectus.

3. We have developed a strategy to seek to minimize potential conflicts of interest. Our Consultant
will constitute an advisory committee (the “Advisory Committee”) consisting of its CEO and CFO
and at least two other persons, who will be responsible for screening potential opportunities for

60
conflicts of interest. If any conflict arises with respect to a business opportunity, the Advisory
Committee will consult with the relevant Future Group entity and our Company and may rely on
third-party advisors to assist it in resolving such conflict.

4. In respect of opportunities of strategic importance where operational control is intended, a right


of first offer will be granted to the Future Group entity operating in the specific industry or sector
in which those opportunities have arisen. For a description of the agreements containing these
right of first offer and conflict resolution arrangements, see the section titled beginning on page

The Maruti Suzuki has 360 Degree Appraisal System and other departments are made to directly get
in touch with employee to know the source and problem deeply and find a suitable solution for it.

For the solution of conflicts of upper level management third parties are selected who are responsible
to make the situation under control.

TARGET CUSTOMERS of MARUTI SUZUKI


The global meltdown has certainly hit the Indian car industry hard. As the figures prove, the industry
posted a growth rate of 11 per cent from April to October 2007 which has fallen to just 3 per cent this
year.

“The sale of small cars (the entry-level segment) has also decreased in the face of the credit
squeeze. To compensate for the loss, Maruti now plans to tap the rural market, 60 per cent of
which runs on cash,” said R S Kalsi, chief general manager (sales), Maruti Suzuki India
Limited. He was in Ludhiana for the launch of Maruti’s new model — A-star.

“Despite all odds, we have launched a new model at the time of recession to bring some
excitement into the market,” he added.

61
On the issue of the global economic slump, Kalsi said: “Worldwide, sales in the car industry
have reduced by 40 per cent. But the Indian market is still performing well. The rural market
has a lot of potential.”

When asked about the reason for car rates not being slashed despite a fall in steel prices, he
said: “The effect of the fall in steel prices will be seen at the end of financial year only. For
now, prices will remain the same

Maruti has appointed 2,000 sales executives to target customers in the rural areas and started special
schemes for village panchayats, rural teachers and rural officers.

A mobile van has been put on standby to provide car servicing at the villagers’ doorstep.

Also, the company is offering discounts ranging from Rs 3,000 to 8,000 on various models in
the rural market.

Besides, the car manufacturer also plans to provide several incentives to the urban market.

MARUTI SUZUKI COMPETITORS-

Maruti Suzuki competitors are primarily in the Auto Manufacturing industry.

Maruti Suzuki competitive landscape includes:

 Bajaj Auto

 Hyundai Motor

 Tata Motors

Maruti Retains Top Position in the Indian Car Market

62
23 December, 2008

Despite the falling sales, tight credit crunch, and increasing competition, Maruti Suzuki has maintained
to retain top position in the Indian car market. A recent survey by J.D Power Asia-Pacific on new vehicle
performance, has proved the worth and performance of Maruti cars.

In the Annual India Performance Execution and Layout Study (APEAL), four of Maruti cars topped their
respective car segments. Indian cars were rated based upon 10 vehicle factors including vehicle
exterior, fuel economy, driving dynamics, engine power and transmission, smoothness, driving safety,
music system, and air-conditioning.

In the rating, Maruti Suzuki WagonR stood first in compact car segment, Maruti Suzuki Swift topped
the premium compact car segment, Maruti Swift Dzire ranked first under entry mid-size car segment,
and the Maruti Suzuki SX4 scored highest in the mid-size car segment.

Senior director of J.D Power and Associates Asia-Pacific, J. Mohit Arora said, “The newest generation
of Maruti Suzuki products has clearly helped improve the brand's overall image.”

Market Expansion Strategies of Maruti Udyog-

The case 'Market expansion strategies of Maruti Udyog' examines the market expansion
strategies adopted by Maruti Udyog Limited (MUL), India's biggest carmaker, in response to
intense competition and a decline in sales of its bread-and-butter model - the Maruti 800. MUL
enjoyed a near-monopoly status, until the Government of India liberalized the economy in 1991

This led to the entry of foreign players like Hyundai, Fiat, Mitsubishi, and Toyota. Even Indian
auto players like Tata Motors and Mahindra and Mahindra entered the fray to give MUL tough

63
challenges. MUL began to introduce new models, and upgrade its existing models in response
to market demand.

For instance, the company introduced the hatchback 'Swift' to shed its image of being a manufacturer
of low-cost staid cars. The case study looks into how MUL came back from the crunch to retain its
place as the top carmaker in India. It also deals with the tussle between Suzuki Motor Corporation and
the Government of India over ownership issues.

The case highlights the promotional offers undertaken by MUL in its quest for market dominance and
examines how the company was able to mould itself according to the market requirements, by
entering new domains and reaching out to potential customers through its 'True Value' and other
promotional offers.

64
Selling and Distribution Expenses

Selling and distribution expenses decreased by 5.4% to Rs.4,021 million in fiscal 2001 from

Rs.4,252 million in fiscal 2000. Selling and distribution expenses as a percentage of net sales

decreased to 6% in fiscal 2001 from 6.1% in fiscal 2000. The decrease in selling and distribution

expenses was primarily due to a decrease of 17.5% in commissions and incentives paid to dealers and
a decrease of approximately 8% in transportation and distribution expense

ADVERTISEMENT EXPENSE

The advertisement expenses of these companies worked out to Rs 5,321 crore in 2003-04 as
against Rs 4,923 crore in the previous year( a rise of 8.1%).

There are other companies in the private corporate sector which have been incurring a high
expenditure on advertisement in relation to sales. However, the present study is confined to
only 250 major companies for which data are available for 2002-03 and 2003-04 (April-
March).

A significant fall in the advt-sales ratio was observed in the case of Colgate-Palmolive (19.51%
in 2002-03 to 15.72% in 2003-04). This can be explained from its performance.

The advertisement expenditure of the company has declined by 20.1% to Rs 147.65 crore
during 2003-04. And the sales of the company also declined by 0.9% during the same period.
Similarly in the case of HLL, the ratio has declined from 8.46% in 2002-03 to 7.49% in 2004-
05. Here also advertisement expense of HLL decreased...

65
DATA PRESENTATION & ANALYSIS

Question 1) Have you purchase any car of Maruti Suzuki Company?


Answer a) Y-yes
b) n- no
c) c- can’t say

7.00 / 7.0%

19.00 / 19.0%

74.00 / 74.0%

Analysis: we concluded that more than 70% of the people liked the industry which conveys a good
image of the company.

66
Question 2) Response of people about Maruti Suzuki cars-“A family car”?

Answer a) y-yes

b) n-no

c) c-can’t say

14.00 / 14.0%

y n
52.00 / 52.0% 34.00 / 34.0%

Analysis: we concluded that more than half of the people consider MARUTI SUZUKI Cars as family
cars , only a few said NO. That means for people it is a complete family car.

67
68
Question 3) Response of people that maruti will give a healthy competition to small cars?

Answer a) y- yes

b) n- no

c) c- can’t say

13.00 / 13.0%

28.00 / 28.0%
y

59.00 / 59.0%

Analysis : we concluded that more than 50% of the people believe that Maruti will give a healthy
competition to small cars and it will prove to be more superior than other small cars.

Question 4) Response of people that MARUTI SUZUKI motors will bring a revolution in automobile
industry?

Answer a) y-yes

b) n-no

c) c- can’t say)

69
c

14.00 / 14.0%

20.00 / 20.0%

66.00 / 66.0%

Analysis: we concluded that about 66% of the people said that MARUTI SUZUKI Motors will bring a
revolution in the Automobile industry as it is growing at a very fast rate day by day.

Question 5) Factors why people like Maruti Suzuki motors?

Answer a) 1-affordability

b) 2-shape

c) 3-design

d) 4-other design

70
4.00

11.00 / 11.0%

3.00

18.00 / 18.0%

1.00

2.00 61.00 / 61.0%

10.00 / 10.0%

Analysis: we concluded that all the factors contribute in increasing the liking of the people, but the
most effective one is the affordability of the MARUTI SUZUKI cars.

Question 6) Proportion of people who will shift to MARUTI SUZUKI Motors?

Answer a) Y-yes

b) n-no

c) c-can’t say

71
y

45.00 / 45.0%

22.00 / 22.0%

n
33.00 / 33.0%

Analysis: we concluded that in the coming time people will more often start shifting to MARUTI
SUZUKI Motors as they produce the most Affordable cars as compared to other car manufacturing
companies.

Question 7) Why would people prefer MARUTI SUZUKI cars as their vehicle?

Answer a) 1-comfort

b) 2-safety

c) 3-reputation

72
d) 4-other reasons

4.00

38.00 / 38.0%

1.00

23.00 / 23.0%

2.00

15.00 / 15.0%

3.00
24.00 / 24.0%

Analysis: we concluded that people prefers MARUTI SUZUKI Motors as their vehicle due to many
factors. Some of them are Comfort, Safety, Reputation etc.

Question 8) Response about mileage of MARUTI SUZUKI cars ?

Answer a) 1-very good

b) 2-good

c) 3-not better than two wheelers

73
3.00
1.00
24.00 / 24.0%
26.00 / 26.0%

2.00
50.00 / 50.0%

Analysis: we concluded that people’s response about the mileage of MARUTI SUZUKI Cars is good,
many said its very good .

Question 9) Maruti cars is made for highways or cities? Discuss

74
Answer a) 1-town/cities

b) 2-highways

c) 3-both

d) 4-can’t say

4.00

13.00 / 13.0%

3.00

26.00 / 26.0% 1.00

58.00 / 58.0%

2.00

3.00 / 3.0%

Analysis: we concluded that more than 50% of the people believes that cars is good for
towns/cities, while 26% of the people believes it is good for highways.

Question 10) Do People like 2nd hand car? Discuss

Answer a) y-yes

b) n –no

c) c –can’t say)

75
y

32.00 / 32.0%

12.00 / 12.0%

56.00 / 56.0%

Analysis: we concluded that about 32% of the people liked Maruti Car as compared to a second
hand car.

CONCLUSION

76
Maruti Suzuki India Limited was first known as Maruti Udyog but was renamed to Maruti
Suzuki India Limited.

1. Maruti Suzuki is one of the most reputed companies in the automobile industry. Maruti
Suzuki has the highest automobile market share in India.
2. Maruti Suzuki Produces Compact, Sedan, MUV vehicles.

Compact Vehicles means Small Cars like, Maruti 800, Alto, Zen.

Sedan means Big Size Cars. Like, Swift Desire, SX 4.

MUV means Multi Utility Vehicles. Like, Gypsy, Omni.

3. Maruti Suzuki has same amount of investment from past 5 years but its revenue and net
profit after tax is increasing every year.
4. Maruti Suzuki is listed of National Stock Exchange and Bombay Stock exchange of
India.
5. Maruti Suzuki wants to make Indian roads safer than ever hence running a driving
school for drivers to drive safely.
6. Maruti Suzuki has a vision to make India Automotive.

77
BIBLIOGRAPHY

WEBSITES :

 www.marutisuzuki.com
 www.google.co.in
 www.scribd.com
 www.wikipedia.com
 http://www.mid-day.com/news/business/2003/may/53005.htm
 http://www.mouthshut.com/readreview/42966-1.html
 http://www.mouthshut.com/readreview/39860-1.html
 http://www.marutisuzuki.com/site/home/home.asp

MAGAZINES / NEWSPAPERS

 Business Today
 The Financial Express
 The Times of India
 India today
 Hindustan Times

78
QUESTIONNAIRE

Q1. Name: _________________

Q2. Gender: Male Female

Q3. Occupation: Business Service Student Self Employed

Q4. Address: _____________________________

Q5. Age: 18-25 25-30 30-35 35&above

Q6. Do you own a car (Y/N)

If yes, Name of car purchased ________________

If no, do you want to purchase a car (Y/N)

Q7. Brand satisfaction after purchase (Tick  ):

(High /Medium /Low /Not Applicable )

Q8. Name other brands considered and compared before purchasing your car.

_____________ ______________ _______________

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Q9. Which of the following are MarutiSuzuki cars (Tick  ):

Maruti 800 _____ Alto _____

Maruti Omni _____ A-Star _____

Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____

SX4 _____ Estilo _____

Zen _____ Celerio _____

Grand vitara _____

Esteem _____

Q10. Name the car against their punch lines (optional):

India comes home in a Maruti suzuki __________

Definitely Male __________

Hoodibaba __________

Jet Set Go __________

Public Ka Naya Transport __________

More Miles per hour __________

Q11. Which brand comes to your mind thinking of best mileage for maruti suzuki cars (Tick  ):

Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

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Swift dzire _____ Wagon-R _____ SX4 _____ Verna _____

Zen _____ Grand vitara _____ Esteem Estilo _____ Celerio _____

Q12. Rank the cars which has best looks and style (in ascending order, 1 being best

and so on).

Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____ SX4 _____ Zen _____ Grand vitara _____
Esteem Estilo _____ Celerio _____

Q13. Which maruti suzuki car offers more colors (Tick  ):

Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____ SX4 _____ Zen _____ Grand vitara _____
Esteem Estilo _____

Q14. Which among the following is the fastest car(Tick  ):

Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____ SX4 _____ Zen _____ Grand vitara _____
Esteem Estilo _____

Q15. Which among the following has best pickup(Tick  ):

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Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____ SX4 _____ Zen _____ Grand vitara _____
Esteem Estilo _____

Q16. Rank the following cars based on engine capacity (In ascending order, 1 being

best and so on).

Maruti 800 _____ Alto _____ Maruti Omni _____ A-Star _____
Swift _____ Ritz _____

Swift dzire _____ Wagon-R _____ SX4 _____ Zen _____ Grand vitara _____
Esteem Estilo _____

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