chapter-3 profile of maruti suzuki india ltd & hyundai ... 3.pdfآ  with the growing demand of...

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  • 113

    CHAPTER-3

    PROFILE OF MARUTI SUZUKI INDIA LTD & HYUNDAI MOTORS

    INDIA LTD

    This chapter consists of overview of Maruti Suzuki India Limited and Hyundai

    Motors India Limited with respect to Manufacturing facilities, Corporate Milestones,

    Sales and Service network with their few popular brands.

    History & Milestone of Maruti Suzuki India Limited

    Maruti Suzuki is one of the leading automobile manufacturing companies in India. It

    is the market leader in the automobile industry both in terms of production and

    revenue generation. The history of Maruti Suzuki is very fascinating.

    In the year February 1981, Maruti Udyog Limited was incorporated under the

    provisions of the Indian companies act, 1956.1 The major objectives of Maruti Udyog

    were to modernize the Indian automobile industry, to produce fuel-efficient cars and

    mass number of vehicles.2

    The company was formed as a government company, with Suzuki as a minor partner,

    to make people’s car for middle class India. In October 2, 1982, the company signed

    the license and joint venture agreement with Suzuki Motor Corporation of Japan. In

    the year 1983, the company started their productions and launched Maruti 800. In the

    year 1983, the company launched its most awaited Maruti Omni and in 1985, the

    company launched Maruti Gypsy in the Indian Market.3

    The Gypsy was the first modern four-wheel drive vehicle in the Indian market. In June

    1986, the company launched new model of Maruti 800.4

    In the year 1987, the company forayed into the foreign market by exporting first lot of

    500 cars to Hungary. In the year 1990, the company launched India’s first three box

    car, sedan i.e Maruti 1000. In the year 1992, Suzuki Motor Corporation, Japan

    increased their stake in the company to 50 percent. In the year 1993, the company

    introduced the Maruti Zen and in 1994 the company launched Maruti Esteem in the

    market.

    In the year 1995, the company commenced their second plant. In the year 1997, the

    company started Maruti Service Master as model workshop in India to look after sales

  • 114

    services. In the year 1999, the third plant with new press, paint and assembly shops

    became operational. With the growing demand of customers in the Indian automobile

    market the company launched Maruti Alto in 2000. 5

    In the same year i.e in 2000, the company launched a call centre. This was the first

    time a car company had ever launched a call centre in India. In this year, Maruti set

    up a website for its Wagon-R car, introduced a new model of Zen, got the IRTE

    National award for its safety initiative, traffic management and environment

    protection, launched the Baleno and the Waon-R with electric power steering. Maruti

    introduced its first CNG (Compressed Natural Gas) car in 2001. In this same year,

    Maruti invested 550 crore rupees in Manufacturing cars. In the year 2002, Maruti

    launched Maruti Finance to offer financial services like extended warranty and

    finance for car insurance.6

    In the year 2002, Suzuki Motor Corporation increased their stake in the company to

    54.2 percent. In the same year the company found new business segment i.e Maruti

    True Value for Sales, Purchase and trade of pre-owned cars in India. In the year 2005,

    the company launched the first world strategic model from Suzuki Motor Corporation

    ‘Swift’ in India. In the year 2006, the company launched Wagon R-Duo with LPG

    (Liqified Petroleum Gas) and also the new Zen Estilo with value added features in it.

    During the year 2006-07, the company commenced operations in the new car plant

    and the diesel engine facility at Manesar, Haryana. In November 2006, the company

    inaugurated a new institute of Driving Training & Research (IDTR), which was set up

    as a collaborative project with Delhi government at Sarai Kale Khan in South Delhi.

    During the year 2007-08, the company signed an agreement with the Adani group for

    exporting 2,00,000 units annually through the Mundra Port in Gujrat. The company

    launched Swift-Diesel and SX4 a luxury sedan with tag line ‘Men Are Back’ during

    the year. In July 2007, the company launched the new Grand Vitara, a stylish,

    muscular and five seater in the MUV (Multi Utility Vehicle) segment.

    The company changed its name from Maruti Udyog Limited to Maruti Suzuki India

    Limited with effect from September 17, 2007. During the year 2007, the company

    entered into a joint venture agreement with Magneti Marelli Power train SPA and

    formed Magneti Marelli Power train India Pvt Ltd for manufacturing Electric control

    units. Maruti also entered into another joint venture agreement with Futuba Industrial

  • 115

    Co.Ltd and formed FMI Automotive Components Ltd for manufacturing exhaust

    systems components.

    During the year, the company made pact with Shriram City union finance Ltd, a part

    of Shriram Group, Chennai, to offer easy, transparent and hassle-free car finance to

    their customers, particularly in semi urban and rural markets. During the year 2008-

    09, the company launched a new A2 segment car, branded the A-Star in India & in

    Europe as the new Alto. In June 2008, the company launched Maruti 800 Duo, a dual

    fuel (LPG + Petrol) car. In April 2009, the company revealed new Ritz K 12 M engine

    at Gurgaon Plant.7

    Maruti Suzuki launched its EECO and Alto K10 (K Series vehicle) in the year 2010.

    In the year 2011, Maruti Suzuki launched its luxury Sedan Kizashi and SX4 diesel

    model. In the month of March 2011 the company produced 10 million cars. Maruti

    Suzuki India Limited has launched its seven seater spacious & comfortable MPV

    Ertiga on 12 April 2012 to cater the needs of larger family size consumers.8

    Very recently, the company has launched the all new Alto 800. The main targets of

    Alto 800 are customers considering the purchase of first cars like young customers i.e

    youths.9

    Overview of Maruti Suzuki India Limited

    Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Ltd) is a

    subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki has been the leader of

    the Indian car market for over two and a half decades. It is largely credited for having

    brought in an automobile revolution to India.

    Maruti Suzuki India Limited accounting for nearly 50 percent of the total industry

    sales. In terms of number of cars produced and sold, the company is the largest

    subsidiary of Suzuki Motor Corporation, cumulatively; the company has produced

    over 10 million vehicles since the roll out of its first vehicle on 14th December, 1983.

    Maruti Suzuki is the only Indian company to have crossed the 10 million sales mark

    since its inception. The company has two manufacturing facilities located at Gurgaon

    and Manesar, south of New Delhi, India. Both the facilities have a combined

    capability to produce over a 1.5 million (1,500,000) vehicles annually.

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    Maruti Suzuki offers 16 brands and over 150 variants ranging from people’s car

    Maruti 800 to the latest Life Utility Vehicles, Ertiga. Maruti Suzuki’s portfolio

    includes Maruti 800, Alto, Alto K10, A-Star, Estilo, Wagon-R, Ritz, Swift, Swift

    Dzire, SX4, Omni, Eeco, Kizashi, Grand Vitara, Gypsy and Ertiga.

    The company employs over 9000 people (as on 31st March 2012). Maruti Suzuki’s

    sales and service network is the largest among car manufacturers in India. The

    company has been rated first in customer satisfaction in the JD Power survey for 12

    consecutive years.

    Over two and half decades, Maruti Suzuki has won the hearts of customers through

    high quality products and services.10

    The company is engaged in the business of Manufacturing, Purchase and sale of

    motor vehicles and Spare parts. The other activities of the company includes

    facilitation of pre-owned car sales, fleet management and car financing.

    The company has seven subsidiary companies, namely Maruti Insurance Business

    Agency Ltd, Maruti Insurance Distribution Services Ltd, Maruti Insurance Agency

    Solutions Ltd, Maruti Insurance Agency network Ltd, Maruti Insurance Agency

    Services Ltd, Maruti Insurance Agency Logistics Ltd and True Value Solutions Ltd.

    The first six subsidiaries are engaged in the business of selling motor insurance

    policies to owners of Maruti Suzuki vehicles and seventh subsidiary, True Value

    Solutions Ltd is engaged in the business of sale of certified pre-owned cars under the

    brand ‘Maruti True Value’.11

    Maruti Suzuki believes in the simple concept of “smaller, fewer, lighter, shorter and

    neater.” The work culture is unique where a common uniform and a common canteen

    for everyone from the Managing Director to the worker.12

    Maruti Suzuki strongly believes on following core values-

    • Customer Obsession

    • Fast, Flexible & First Mover

    • Innovation & Creativity

    • Networking & Partnership

    • Openness & Lear