Maruti Suzuki India – History, Company Profile
ABOUT MARUTI UDYOG:
Maruti Udyog Limited which is now known as Maruti Suzuki India Limited is a 37-year-old conglomerate that has fulfilled the lives and needs of the Indian citizens in terms of their automobiles. It is a 56.21% owned subsidiary of the Japanese automobile company Suzuki Motor Corporation.
It is the largest car manufacturer company in India. The Company recorded the highest ever market share of 58% as of July 2018 in the Indian automobile market making it the most popular and revered brand in the country and around the world. Some of its popular cars are Ciaz, Ertiga, Wagon R, Alto, Swift, Celerio, Swift Dzire, Baleno, Alto 800, etc.
THE INCEPTION OF MARUTI AND SUZUKI AND THE GROWTH:
Maruti Udyog initially started as Surya Ram Maruti Technical Services Private Limited on 16 November 1970. MSTPL was initially into getting the technical know-how of the perfect automobile since the demand in India was much too scarce.
In 1971, India’s first lady Prime Minister Indira Priyadarshini Gandhi’s Cabinet proposed a plan for the manufacturing of a “common men’s car”: a car that most Indian families could afford. In the same year, the Company MSTPL registered themselves as Maruti Limited under the Indian Companies Act. His son Sanjay Gandhi became its First MD, and that was the start of an impending revolution.
While Maruti had no previous experience, in design, manufacturing, or links with an established automobile company, but still he has received a contract to manufacture an affordable car. Till 1975 company didn’t produce any cars, and From 1975 to 1977 when Prime Minister Indira Gandhi declared an emergency across the country, Sanjay Gandhi started actively taking part in politics, and the “people’s car” project went on the back burner.
In 1981, after the death of Sanjay Gandhi during the Aircraft accident on 23 June 1980, the Central government started searching for active collaboration. Maruti Udyog Ltd. was come into existence in the same year by the efforts of industrialist V. Krishnamurthy.
In 1982, a Joint Venture Agreement was signed with the Japanese automobile manufacturer named Suzuki Motor Corporation. Dr. Venkataraman Krishnamurthy spearheaded this deal and was therefore roped in as the first Chairman and CEO of the newly formed Maruti Suzuki.
Finally, after 1 year, the Maruti 800 was released which was a 796cc hatchback and was India’s first affordable car, which broke a number of records. In December 1983 an iconic car Maruti 800 key was delivered to its first Customer Mr. Harpal Singh by Prime Minister Mrs. Indira Gandhi. Local production started in December 1983 in the Gurgaon plant. Maruti only imported cars at first. This automobile was in production from 1983 till it breathed its last in 2013 and it was considered to be the most influential car ever.
In 1987, Maruti Suzuki started exporting to the European country Hungary. In 1989, the Company introduced Maruti 1000 which was India’s very first sedan and it ran in production for about 2 years after the Indian economy was liberalized in 1991.
1993 and 1994 were the era of Zen and Esteem which became household names in the country. Maruti produced its millionth vehicle in the same era, therefore, completing an important milestone in their successful run as a company. They released their very first Customer Care office for the consumers following which they released their newest model called Maruti Alto. The Company then released three models which are,
- Maruti Versa – 2001
- Esteem Diesel – 2002
- Suzuki Grand Vitara – XL 7 – 2003
And so many more.
Maruti and Suzuki then entered into a partnership with the State Bank of India after the production of their four millionth vehicle in the country. They were also listed in the National and the Bombay Stock Exchange after the public issue which had increased by ten times.
After nearly 20 years, Alto overtook Maruti 800 as the bestselling car in the Indian market and by 2003-04, the Company had sold its 5 millionth vehicle and became the most profitable Indian automobile brand. As of May 2007, the Government of India sold its all share of Maruti Suzuki to the Indian financial institutions.
2006 marked the beginning of a separate automobile division called “Maruti Suzuki Automobiles India”. This venture laid the foundation for beginning two new manufacturing plants. One plant was solely dedicated to the manufacturing of automobiles and the other one was for engines.
The Company has three full-fledged automobile manufacturing facilities in India. Maruti Suzuki has ensured that there would be no compromise in terms of technology and also in terms of quality.
Gurugram has a manufacturing facility spread across a kilometer and a half and they produce the Alto 800, Vitara Brezza, Ignis, Ertiga, and Eeco. The facility at Manesar is about two and a half kilometers and has an overall production capacity of more than 100,000. This plant produces Alto K10, Swift, Ciaz, Baleno, and Celerio.
The Gujarat facility is a more recent one and the plant has a production capacity of about 250,000 units every year but there are plans to double the production rate in the coming years.
Sales network: Maruti Suzuki has about 2000 outlets across the city that caters to every need of the customers in their times of need.
NEXA: The Company launched NEXA for the premium Maruti customers. Maruti Suzuki S-Cross was the first car to be released through NEXA and the company plans to introduce many more models in the future. Currently, Maruti Suzuki sells Baleno, Baleno RS, S-Cross, Ciaz, Vitara brezza, and Ignis through it.
Maruti Insurance and Finance: Maruti Suzuki provides vehicular insurance and financial services through multiple companies that it has tied up with. Some of the clients include the ABN AMRO Bank, HDFC, ICICI, Kotak Mahindra, Bajaj Allianz, New India Insurance and Royal Sundaram, etc.
Maruti TrueValue: A one-stop shop for all Maruti and Suzuki vehicles. Customers would be able to inquire, buy, sell, and also exchange the company vehicles or other brands as well. As of now, TrueValue has over 1200 outlets throughout multiple cities in the country.
Image Source: marutisuzuki.com