MarketAs early as 2005, when domestic industrycrystal gazers were refusing to predict thefuture of India’s car market with any certainty,Keystone, a US-based subsidiary of LaSalleConsulting Associates, announced that Indiawould become the world's third largestautomobile market by 2030, behind just Chinaand the US.

Today, there is little to cast doubt on theaccuracy of this forecast. A combination ofprivate entrepreneurship and recentgovernment policies has sent the Indian carmarket vrrroooming. Market volumes havesurged and demand for all types of cars fromluxury models to SUVs to mini-cars has reachednew heights.

The small car segment, however, still rules theIndian market and Maruti Suzuki retains itsdominance. Osamu Suzuki, the head of Japan'sSuzuki Motor Corporation has announced plansto beef up its vehicle line-up and dealernetwork to keep the company’s present Indianmarket share of “at least 50% for eternity.”

Over the past 25 years, Maruti Suzuki hascreated, defined and redefined the automobilemarket in India. In 1982, when the landmarkGurgaon facility was set up, India bought barely40,000 cars a year.Today, India is more than amillion-cars-a-year market, one of the world’slargest and fastest growing.

Yet, despite this growth, car penetration inIndia remains small, lower than even countrieslike Sri Lanka and Pakistan. Maruti Suzuki ispreparing for the explosive potential of theIndian car market of the future with hugeinvestments in manufacturing infrastructure. It isalso preparing a range of new models designedto reflect the aspirations of the increasinglyglobalised new Indian car buyer.

AchievementsThe saga of this company has been an odysseyof opportunity, challenge, growth, social levelling,mobility – and the visible excitement – itbrought to an entire nation.Though over 25manufacturers offer nearly 80 models to Indiancar buyers, Maruti Suzuki continues to retain itsleadership. With perceivable benefits of quality,reliability, technology, performance,trustworthiness and service, it dominates thelargest market segment – affordable, value-packed, fuel-efficient cars – and is scoringsignificant successes in fast-growing uppersegments as well. Maruti Suzuki also has fullyoperational, India’s largest servicenetwork, spanning over 1200towns and cities.

Maruti Suzuki’sgreatestachievement has been thespecial niche ithas carved foritself withcustomers.This isreflected inthe fact that

no carmanufacturer –Maruti Suzukiapart – has beenranked first incustomersatisfaction eightyears in a row(Source: J DPower CustomerSatisfaction IndexStudy Asia-Pacific2000-07).Thecompany has alsobeen ratedamongst theworld’s top fivecar manufacturersin the ForbesWorld’s MostReputedCompanies List, 2006.

The company’s recordstands at 7 million carsmanufactured to date –that’s more than two-thirdsof all cars on Indian roads.High standards set by MarutiSuzuki for productivity and environmental and corporate socialresponsibility have becomebenchmarks for the industry.These achievements,however, transcend sales andmanufacturing figures.Thereal story of Maruti Suzuki isthe seminal impact it hashad on India’s industrial growth, developmentand the expectations it has raised amongstconsumers across all categories of products.

The persistent refrain of a quality culture hascreated a huge network of world-class vendorsand ancillaries that have, in a dominoes-typeaffect, swelled the ranks of India’s middle classwho aspire, demand and are, in turn, willing todeliver quality products and services.

In the social sphere, the new mobility grantedby the company’s cars expanded vistas, boostedtravel and tourism sectors, galvanised interstate

commerce and energised consumers to forcegovernments to spend on infrastructure thatwould ultimately go on to transform an entire nation.

HistoryMaruti Suzuki was incorporated as MarutiUdyog Limited (MUL) in 1981, as a joint ventureof the Indian government and Suzuki MotorCorporation of Japan.The first Maruti 800 rolledout on 14th December 1983 sparking off arevolution in automobiles.

Other car launches followed and soon thefoundation for India’s largest service network

was laid.In 1992, the Suzuki Motor

Corporationincreased its staketo 50%. In 2002,it bought acontrollinginterest in thecompany. In 2003MUL was listedon the National-and the BombayStock Exchangesafter its initialpublic offer wasoversubscribed

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ten times.This brought the retail investor backinto the share market.

Osamu Suzuki was awarded the PadmaBhushan in 2007, for his unparalleledcontribution to the Indian automobile industry.After former Japanese Prime Minister,Y. Mori, hebecame only the second Japanese citizen to beso honoured.

Maruti Suzuki crossed the one millionproduction mark in 1994 – its 11th year – thesix million mark by 2007 and by March 2008 ithad put on the road more than 7 millionvehicles.

The company was renamed Maruti SuzukiIndia Limited (MSIL) in 2007.

ProductEver since the first Maruti 800rolled out, the company’s productshave generated unprecedentedcustomer delight.Their quality andreliability has created a solidbedrock of trust.The Maruti 800was India’s first hatchback; it wasintroduced in 1983 and in itscurrent avatar – 25 years afterlaunch – still sells handsomely.

The Gypsy was India’s first trueSUV and the Omni was India’s firstvan that allowed for smart spacemanagement. Both are still inproduction.The Zen, India’s first cultcar was introduced in 1993 and was inproduction until 2006.The Maruti 1000, laterrenamed Esteem, became the aspiring sedan ofits era.

The decade 1995/2005 was a period ofconsolidation during which existing productswere upgraded and Wagon R, Alto, Baleno andGrand Vitara were introduced. After 2005,Maruti Suzuki sprung a range of new productsthat have driven growth.The Swift, introduced in2005 in petrol and 2007 in diesel, created anew segment of premium hatchbacks.Thestrong demand brought back the concept of a‘waiting period’ in the Indian market.The stylishZen Estilo replaced the Zen in 2006.

The new Grand Vitara and the SX4 sedanwere introduced in May 2007, to help thecompany evolve and gain a foothold in the A3 segment.

The car that has possibly made more headsturn than any other is Dzire, launched in early2008. Dzire comes in six variants – three eachin the petrol and diesel versions that boast 1.3litre, high-performance engines. In fact, the1248cc diesel engine used in Dzire Diesel wasselected as the Engine of the Year in Europe in2006.This outstanding double overhead

camshaft driven power plantgenerates 75 bhp at 4000 rpm andprovides 190Nm of torque at 2000rpm. Selected models of Dzire offerautomatic climate control, powerwindows, fog lamps, steering-mounted audio controls and tiltsteering features. Six onboardcomputers control everything fromfuel consumption to ignition timing.

As witnessed in the success ofthe Swift, the new generation ofMaruti Suzuki cars have struck achord with the emerging new India.The A-Star and the Splash are being

readied for launch in the near future, whilefuturistic concepts like the Kizashi are also slatedto soon join the Maruti Suzuki portfolio.

Besides products, Maruti Suzuki has offeredits customers the benefit of a whole range ofservices, including True Value pre-owned cars,Maruti Finance, Maruti Insurance, Autocard andMaruti Driving Schools.

Recent DevelopmentsWith the increased role of MSIL in the globaloperations of Suzuki, the company hasearmarked Rs. 9000 crore (US$ 2.25 billion) for research in India.This is a major step inrealising Suzuki Motor Corporation’scommitment to turning India into Asia’s R&D hub for automobiles.

The inauguration of the ultramodern Manesar plant in 2007 with a capacity tomanufacture 300,000 cars will also push MSILpast 1 million cars by 2010/11 and help itoccupy a position of prestige and eminence in Suzuki’s worldwide operations.

PromotionWhile most car manufacturers bank on staid,product-only centric communications, MarutiSuzuki prefers to project and promote thestrong and confident face of its consumer in itsbrand outreach strategy.This should come as nosurprise.The truth after all is that having outsoldall manufacturers Maruti Suzuki has a biggerconsumer success story to tell than everyoneelse put together. In Maruti Suzuki’s scheme ofthings a happy consumer face is worth an awfullot more than just a vehicle’s grill or itsinstrument panel.

The consumer, apart, the company’scommunications has kept pace with thechanging trends and aspirations of the market.As a result Maruti Suzuki’s advertising relates toits audience by appealing to both heart andhead. Several campaigns have captured theimagination of customers and have gone on tobecoming iconic statements. Kaancha and Kikarein petrol khatam hi nahi hunda are some ofthe memorable commercials to come out of thecompany’s stables.

Maruti Suzuki has also pioneered the growth of the digital media and has createdpopular properties like the Maruti Suzuki cricket ratings.

Brand ValuesWhile individual brands in the company’sportfolio have their own positioning, they alldraw strength from the core Maruti Suzukivalue of trust, reliability and leadership.

Along with changing times, Maruti Suzuki isalso being seen as a dynamic, innovative, stylishand high-technology brand. New productofferings such as the Swift and SX4 arestrengthening these perceptions. Organisationalvalues that contribute to Maruti Suzuki’sleadership are customer obsession; fast, flexible,first mover ; innovative and creative; networkingand partnership; openness and learning.

It is in these traits that consumers can see atrue reflection of Maruti Suzuki – the companythat ushered in the car era and changed foreverthe way people travel.

www.marutisuzuki.com

THINGS YOU DIDN’T KNOW ABOUT

Maruti Suzuki

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By 2010 Maruti Suzuki India will contributeabout one third to Suzuki’s global car volumes

Concept A-Star was showcased in the AutoExpo 2008. A production model especiallydeveloped for India, jointly by engineers in Indiaand Japan, will be launched later in the year

A-Star manufactured in India will also bemarketed and sold in Europe

Under an agreement with the Government ofHaryana, Maruti Suzuki is modernising four ITIsby bringing in new technology, modernequipment and the latest teaching aids

Four villages in Haryana – Kasan, Alihar, Dhanaand Baas – have been adopted by MarutiSuzuki to develop health care, employment,education and infrastructure

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