Maruti Suzuki Success Story

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Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi. It is a subsidiary of the Japanese automotive manufacturer Suzuki Motor Corporation.

Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty-seventh position in 2013 and ninth position in 2019 among the most trusted brands of India.

Maruti Suzuki – Company Highlights

• Startup Name-Maruti Suzuki India Limited
• Headquarters-New Delhi, India
• Industry-Automotive
• Founded-24 February, 1981
• Founder-Government of India
• CEO-Kenichi Ayukawa
• Parent-Suzuki Motor Corporation
• Area Served-India
• Website-www.marutisuzuki.com

Maruti Suzuki – About and How it Works?

Maruti Suzuki India Limited is a holding company. The Company is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.

Its geographical segments include the domestic segment, which includes sales to customers located in India, and the overseas segment, which includes sales to customers located outside India. The Company’s product portfolio includes Alto 800, Alto K10, Wagon R, Celerio, Ritz, Swift, DZire, Ertiga, Omni, Eeco, Gypsy, Ciaz, etc.

Maruti Suzuki – Logo and its Meaning

The present variant of Suzuki logo is designed in red and blue colours. The red colour (the letter S of Suzuki) represents passion, integrity and tradition, while the blue(the letter M of Maruti) stands for excellence and grandeur.

Maruti Suzuki – Recent News

Maruti Suzuki sees ‘much better’ 2021 as economy rebounds: Chairman

Maruti Suzuki sales increase 1.7% to 1,53,223 units in November

Maruti Suzuki – Founder and History

Maruti Udyog Limited was founded by the government of India on 24 February 1981, only to merge with the Japanese automobile company Suzuki in October 1982. The first manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year.

In the year 1990 the company launched India’s first three-box car Sedan. In the year 1992 Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.In the year 1995 the company commenced their second plant. In the year 1997 they started Maruti Service Master as a model workshop in India to look after sales services.

Maruti Suzuki – Mission

Maruti Suzuki’s mission statement says, “To be The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder’s Wealth; A pride of India.”

Maruti Suzuki – Joint Ventures

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. 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.

Maruti Suzuki – Business Model

Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing. Its Business Segments are divided into : Operating Income from sales of cars and Interests from Investments.

Maruti Suzuki offers 17 models of cars

Company focuses on catering to  the needs of almost all the segments from the middle class to high class through wide range of products

Maruti Suzuki – Revenue and Growth

Auto major Maruti Suzuki reported 2.05 per cent year-on-year growth in consolidated profit at Rs 1,419.6 crore for the September quarter of FY21 (Q2FY21) while revenue rose 10.34 per cent to Rs 18,755.6 crore. In comparison, the company had posted revenue of Rs 16,997.9 crore and profit of Rs 1,391 crore in the corresponding quarter of last year.

Maruti Suzuki – Recent Acquisition

Maruti Suzuki India on 13 May 2020, said its board took a slew of decisions, including acquisition of Delhi-based JJ Impex, and supply of Vitara Brezza to Toyota Kirloskar Motor (TKM). The car major on said its board has approved acquiring 39.13% equity stake held by Sumitomo Corporation, Japan and 10% held by Sumitomo Corporation India in JJ Impex (Delhi), a company engaged in automobile service and repair business.

The cost of acquisition or the price at which the shares are to be acquired is fixed at Rs 21.73 crore, the company said.

Maruti Suzuki – Competitors

The top 10 competitors in Maruti Suzuki’s competitive set are Tata Motors, Honda, Hyundai, Mahindra, Toyota, Chevrolet, Ford, Volkswagen, Ashok Leyland and Mercedes-Benz.

Maruti Suzuki – Challenges Faced

The company found out that the broken pieces of pulley can get caught between the pulley and the drive belt which can cause the drive belt to come off resulting in increased effort to steer the vehicle by the driver which in turn increased the risk of a crash or accidents. The company made a plan to resolve the issues in the vehicles with this problem and the dealers of Suzuki Motor Corporation replaced the power steering pump belt tension adjuster free of charge for the customers whose vehicles had the same defect.

The market leader had posted losses for the first time in about two decades, as the April-June 2020 quarter showed nearly Rs 250 crore loss. Net sales had declined to less than Rs 4,000 crore, compared to nearly Rs 19,000 crore from the period in the previous year.

Maruti Suzuki – Future Plans

In an alliance with Toyota, Maruti Suzuki will be targeting the Hyundai Creta space with a midsized SUV in 2022, and this vehicle will be based on the current Brezza architecture. A C-segment MPV in 2023 is also planned, and both vehicles are likely to be produced at Toyota’s factory in Bidadi.

Unlike the re-badged Baleno, Ciaz and Ertiga, which will be shared by Maruti and Toyota in India till 2022, the SUV and MPV under development are likely to have distinct characteristics or differentiation to ensure that both companies gain from India’s growing preference for utility vehicles.

Maruti Suzuki – FAQs

Who is the owner of Maruti Suzuki?

The company is a subsidiary of Suzuki Motor Corporation of Japan.

Which country company is Maruti Suzuki?

Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 50 per cent of the domestic car market.

Where is the head office of Maruti Suzuki?

Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi.

Who is the CEO of Maruti Suzuki?

Kenichi Ayukawa is the current CEO of Maruti Suzuki.