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NAME – ALI AHMAD

CLASS – M.B.A

SEMESTER- 3rd (third)

SUBJECT –Management Information System

SESSION – 2022-2024

PID NO – 22MBA059

ASSIGNMENT ON STUDY ON MIS FRAMEWORK OF MARUTI SUZUKI


COMPANY OF THE BUSINESS SETUP .
ACKNOWLDEGMENT

I take this opportunity to thank everyone who played a supportive role for helping me to complete my
assignment on the topic of STUDY ON MIS FRAMEWORK OF Maruti Suzuki Company of the
Business setup.
I would like to thank my professor to Dr Sneh.P.Daniel" for guiding me through this project and
continuously encouraging me. It would not have been possible to complete this project without his
support.

I am also thankful to all the faculty members of Department Joseph School Of Business Studies And
Commerce for her guidance towards my assignment.

Finally, I am grateful to my family and friends for their unending support.

Date of Submission
16.November.2023
ALI AHMAD (22MBA059)
TABLE OF CONTENTS

PARTICULARS PAGE NO.

Acknowledgement

Index

Cover Page
Title: "A Study on MIS Framework of Maruti Suzuki in Lucknow"
Maruti Suzuki Logo
Date of Submission

Chapter I – Introduction
a) Company Profile
 Brief history of Maruti Suzuki
 Overview of Maruti Suzuki's operations

b) Product Profile
 Key Maruti Suzuki vehicles in the market

Chapter II – Results
a) Company's Business Ideas/Plan
 Vision and mission for Maruti Suzuki in Lucknow
 Strategic business goals for the Lucknow branch

b) SWOT Analysis
 Strengths, Weaknesses, Opportunities, and Threats specific to

the Lucknow operations


 Comprehensive analysis with supporting data
c) Long-term and Short-term Plans/Business Models
 Outline of future plans for Maruti Suzuki in Lucknow

Conclusion
Maruti Suzuki India Limited (MSIL) is India's largest passenger car manufacturer. It's a
subsidiary of Suzuki Motor Corporation, Japan. The company was established in 1981 and is
headquartered in New Delhi.
MSIL is known for making low-maintenance cars. It has a 42% market share in the Indian
passenger car market. It's also the largest subsidiary of Suzuki Motor Corporation in terms of
production volume and sales.

Company Profile is an initiative by StartupTalky to publish verified information on different


startups and organizations. The content in this post has been approved by the organization it is
based on.

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 - 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's Company Logo


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.

The company was formed as a government company with Suzuki as a minor partner to make a
people's car for middle class India. Over the years the company's product range has widened
ownership has changed hands and the customer has evolved.

On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki
Motor Corporation Japan. In the year 1983 the company started their productions and launched
Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year they
launched Maruti Gypsy in the market. 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. 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.

In the year 1999 the third plant with new press paint and assembly shops became operational. In
the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki Motor
Corporation increased their stake in the company to 54.2%.

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

Suzuki Motors Corporation had to recall certain models of vehicles such as the Grand Vitara and
XL 7 which were manufactured in the year 2005. A problem was detected in the adjuster pulley
for the drive belt which has the outer portion made up of plastic and operates the power steering
pump and air conditioner compressor. Repeated heat stress caused the outer body made up of
plastic to weaken and pieces of the pulley broke off.
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.

Suzukis subsidiary Maruti Suzuki India Limited faced a great challenge to keep its lead in the
small market segment of automobiles in India. The company was facing severe production issues
which resulted in a long gestation period for some top-selling brands such as Maruti Suzuki
Swift, Maruti Suzuki Swift Desire and a few other models. These production issues could have
lead to loss in the market share of Maruti Suzuki in India however the company dealt with the
situation by working with their vendors to increase the supply of the materials and the company
was able to deal with the backlogs of its normal sales on many models.

Difficult days, but we will emerge stronger—This was the message India’s biggest car company
gave out on Wednesday as it came out with its annual integrated report for the 2020 financial
year and took stock of the toll that the pandemic was inflicting on its bottom line.

“The COVID-19 epidemic has given your company as well as its vendors and dealers an
opportunity to review all systems of working and become more efficient and competitive. Thus,
while we are going through difficult days, I believe we will emerge stronger and fitter in the
future,” Maruti Suzuki chairman R.C.Bhargava said, addressing stakeholders.

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 - 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.

“With over a dozen SUVs planned by its rivals, Maruti Suzuki knows it has to have competitive
offerings to retain its 50% overall share. The exit from diesel makes compact UVs a challenge,
but a 1.5-litre diesel engine is not yet ruled out,” said one of four executives aware of Maruti’s
plans. “Plus, Maruti will be relying on the localised hybrid solutions from Toyota to spruce up its
future portfolio.”

The utility vehicle segment is expected to overtake the humble hatchback segment in India, as an
increasing number of buyers prefer the tall and high-seating SUVs and MPVs that cost as low as
Rs 5 lakh and as high as Rs 1 crore. According to vehicle forecasting firm IHS Markit, utility
vehicle sales will close 2019 at 38%, a tad behind the hatchback segment, before overtaking the
latter in 2020. The share of entry-car or mini-car segment, once Maruti's mainstay, today
accounts for just 10% of the overall market as against 25% share it enjoyed 5-7 years ago.

Apart from bringing in the petrol versions of Vitara Brezza and S-Cross, Maruti created an
entrylevel SUV with S-presso. Maruti expects a significant number of its Swift, Dzire, Ciaz, and
Ertiga buyers to eventually upgrade to a bigger SUV and MPV.

Brief history of Maruti Suzuki

Maruti Suzuki India Limited was founded in 1981 by the Government of India as Maruti
Udyog Limited. The company was a joint venture with Suzuki Motor Corporation, which was a
minor partner at the time. The company merged with Suzuki in 1982 and established its first
manufacturing factory in Gurugram, Haryana.

Here are some milestones in the company's history:

 1981: Maruti Udyog Limited was founded by the Government of India.


 1982: The company merged with Suzuki Motor Corporation, Japan.
 1983: The company introduced the M800, Omni, and Gypsy.
 2003: The Government of India partially withdrew from the business.
 2007: The Government of India sold all of its remaining shares to Suzuki Motor Corporation.
Today, Maruti Suzuki has 16 car models with over 150 variants. The company runs two factories
in Haryana with a capacity of more than 1,500,000 vehicles.
One of the earliest memories of any middle-class 90s kid is sitting in a Maruti Suzuki 800 car and
having the best day of their life. Back in those days, Maruti Suzuki played a huge role in making cars
accessible to everyone in India. The automobile company entered the market in 1981 and created
history with its unique models and service. Every house had a Maruti Suzuki car and the brand
became the most-trusted automobile label in no time.

Maruti Suzuki India is a subsidiary brand of Suzuki Motor Corporation, Japan. According to the
reports dated September 2020, the Japanese car company holds around 56.37% of the stakes in
the company. A look at the share price history of Maruti Suzuki, and you will see that the
company has grown to be the largest passenger car company in India. It accounts for over 50%
of the domestic car market in the country. Let’s dig a little deep and learn more about the Maruti
Suzuki cars, the history of the automobile brand and its success in India.
The need for cars grew rapidly in the 80s and Maruti Suzuki cashed on this opportunity by
launching the company around the same time. The company started as a government commodity
on 24 February 1981, with a mission to manufacture cars for middle-class Indians. Its major
competitors were two other government-controlled automobile companies named Premier
Automobiles Ltd (which had their popular car Premier Padmini) and Hindustan Motors Ltd
(which made the Ambassador cars). Launched as Maruti Udyog Ltd., Suzuki was a minor partner
in the company initially. The business model changed a year later on 2 October 1982, when
Maruti Udyog signed the license and a joint venture agreement with Suzuki Motor Corporation.
This was just the beginning of a long-lasting and successful partnership

Soon after the agreement, Maruti Suzuki cars started its production in 1983. The first car that
Maruti Suzuki launched and created history with was the Maruti 800. The car was so affordable
that it instantly became popular. Even now, after so many years, you might spot this car on the
Indian roads.

The very first factory of Maruti Suzuki was established in Gurgaon, Haryana. For the first two
years, the Indian company was committed to importing fully-built cars from Suzuki. Contrary to
their plans, the imports later grew to include only 33% of the native parts.
Maruti wanted to start its own manufacturing facility in India but feared that it would fail
considering the small market here in the subcontinent. Many factors like inefficient local
transport, increasing demands for fuel-efficient vehicles, petrol tax and excise duty also made
them take a step back.

However, in December 1983, Maruti Suzuki India began its local production and introduced cars
like Suzuki Alto (SS30/SS40), Suzuki Fronte, and Alto-based Maruti 800.

Service history of Maruti Suzuki over the years 1986-1987

1986 was a milestone year for the company. Its service across the country was increasing and the
company had successfully manufactured its 100,000th vehicle in the same year as well. They
also launched the new and powerful Suzuki Alto (SS80), a 796 cc hatchback, replacing the
former Maruti 800 model. It also began its foreign export and shipped a lot of 500 cars to
Hungary.

Maruti Suzuki and its success from 2000-2004

In 2000, the company became the first Indian car company to launch a call centre for its internal
processes and customer service. New models were launched in the following two years including
the Esteem Diesel. Suzuki Motor Corporation increased its stake in Maruti to 54.2% as well.
In 2003, India was introduced to a new car model called Suzuki Grand Vitara XL-7. The
company also upgraded its Zen and Wagon R models. It also manufactured its 4 millionth
vehicle in 2003 and also entered a new partnership with the State Bank of India. The automobile
company also got listed on BSE and NSE.

In 2004, their best-selling car, Maruti 800 was replaced by Alto in terms of popularity after 2
decades. Maruti Udyog sold as many as 472,122 units between 2003-2004, an all-time high for
the company.

Overview of Maruti Suzuki's operations in Lucknow


Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India's
largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile
revolution in the country. The Company is engaged in the business of manufacturing and sale of
passenger vehicles in India.

Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motor Corporation, Japan, is India’s
largest passenger car maker. Maruti Suzuki is credited with having ushered in the automobile
revolution in the country. The Company is engaged in the business of manufacturing and sale of
passenger vehicles in India. Making a small beginning with the iconic Maruti 800 car, Maruti
Suzuki today has a vast portfolio of 16 car models with over 150 variants. 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.
The Company has manufacturing facilities in Gurgaon and Manesar in Haryana and a state of the
art R&D centre in Rohtak, Haryana.

The Company, formerly known as Maruti Udyog Limited, was incorporated as a joint venture
between the Government of India and Suzuki Motor Corporation, Japan in February, 1981.
Presently, Suzuki Motor Corporation owns equity of 56.2%. The Company’s shares are traded on
the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Product Profile
Maruti Baleno Price
Maruti Baleno price for the base model starts at Rs. 6.61 Lakh and the top model price goes upto
Rs. 9.88 Lakh (Avg. ex-showroom). Baleno price for 9 variants is listed below.

New Brezza
The All New Hot and Techy Brezza goes above and beyond your expectations when it comes to
the latest technology. Featuring an Electric Sunroof that’s set to take your city adventures up a
notch; a Head Up Display that never lets you take your eyes off the road; and a 360 View
Camera that enables you to park easily. It’s safe to say it’s not hard to see why we call it the All
New Hot and Techy Brezza. Setting new bars for innovation, the City-Bred SUV goes all out
with a 9-Inch SmartPlay Pro+ with “Surround Sense” Powered by ARKAMYS, a Wireless
Charging Dock and a Gen-2 Suzuki Connect with Smartwatch and Alexa Skill* Connectivity.

 Electric Sunroof
 Head Up Display
 360 View Camera
 SmartPlay Pro+ with Surrounded Sense powered by ARKAMYS
 Wireless Charging Dock
Maruti Suzuki Dzire

Key Maruti Suzuki vehicles in the market

Maruti Suzuki is an Indian car company that produces affordable cars. They have 18 models on
sale and are known for their fuel-efficient powertrains. Some of their top cars include:

 Maruti Suzuki Alto K10: This fuel-efficient car gets 34 kmpl mileage.
 Maruti Suzuki Celerio: One of the 18 models on sale.
 Maruti Dzire: A spacious sedan with a 1.2-liter DualJet petrol engine.
 Maruti Suzuki Alto 800: One of the best-selling vehicles in the world.
 Maruti Suzuki Eeco: An affordable car that's suitable for Indian conditions.
 Maruti XL6: A comfortable people mover that's fuel-efficient.
 Maruti Grand Vitara: Introduced in 2003.
 Maruti Brezza: A stylish compact SUV.
 Maruti Ertiga: A popular MPV designed for Indian families.
Other Maruti Suzuki cars include:

 Maruti Suzuki WagonR


 Maruti Suzuki Ignis
 Maruti Suzuki Baleno
 Maruti Suzuki Swift Dzire
 Maruti Suzuki Ciaz

Maruti Car Models


 Maruti Fronx. 4.5/5. 267 Ratings. 20-28 kmpl. ...
 Maruti Brezza. 4.4/5. 470 Ratings. 17-25 kmpl. ...
 Maruti Swift. 4.4/5. 913 Ratings. 2 Star Safety. ...
 Maruti Grand Vitara. 4.4/5. 263 Ratings. ...
 Maruti Baleno. 4.5/5. 548 Ratings. ...
 Maruti Ertiga. 4.5/5. 393 Ratings. ...
 Maruti Wagon R. 4.5/5. 293 Ratings. ...
 Maruti Alto K10. 4.6/5. 233 Ratings.
different managerial practices details maruti Suzuki

4 Principles of Maruti Suzuki Skill Development

Have you ever taken a step back and looked at your business, your job, or even your personal
life, and thought: What am I not doing right?!

The bright young minds at the Japan-India Institute of Manufacturing (JIM) may have some
answers. At this state-of-the-art Industrial Training Institute (ITI), established by Maruti Suzuki
at Ganpat University in Mehsana, Gujarat, the students have perfected the Japanese art of
discipline.
At JIM, students are exposed to an environment that mimics the factory where they will
eventually work. One of the core focus areas at the JIM is soft skills training. Beginning with
basics like grooming and dietary habits, the training covers English communication, and the
history of Japanese Technology.

Every year, Japanese trainers are invited to provide students with training in the latest technical
developments, and Japanese best business practices. These principles offer four unique
perspectives to the students:

Principle No.1 – Kaizen

Kaizen means continuous improvement. Mehul Waghela, who graduated from JIM with flying
colours and now works at the Suzuki Motors plant in Hansalpur says, “I have been working here
only for 2 months, but I’ve already managed to submit 3 suggestions for improvement.”

Identifying wastage and potential losses becomes second nature for someone who is committed
to this principle.

Principle No.2 – 5S

While this may sound like the new model of the Maruti Suzuki Swift, for students at JIM, 5S is a
philosophy to live by. Simply put, it consists of:

• Seiri (sorting): To distinguish between what is and isn’t needed;

• Seiton (setting in order): To get ready to pick what you need when you need it at once;

• Seiso (cleanliness): To keep your workplace clean by removing rubbish, dust or dirt;

• Seiketsu (standardising): To repeat Seiri-Seiton-Seiso according to a predetermined schedule


and improve & maintain the workplace environment.

• Shitsuke (sustaining the discipline): To observe what has been decided; To train people to
observe it;

On the shopfloor, 5S helps to improve productivity, promote behavioural change, and exposes
problems. Siddharth Sonvar, Manager of Skill Development at Maruti Suzuki says, “Before,
there would be complete chaos when the students were leaving the institute for the day. We
created a system where the punching out could be done in an organised manner using the 5S
principles. In all the classrooms, you will never find a single thing out of place.”

Principle No.3 – 3G
While this sounds like a form of internet technology, 3G is a very important Japanese
management technique.

3G is made up of 3 simple rules: Genchi: Go to the actual place; Genbutsu: See the actual
thing; Genjitsu: Take necessary action.

According to G.S Bairwa, a trade expert with over 3 decades of experience at Maruti Suzuki, the
3G principle allowed him to identify a problem that saved the company an entire day’s worth of
production- i.e, 500 cars.

Principle No.4 – Ho-Ren-So

At JIM, there is a strong emphasis on teamwork. And this is where the principle of Ho-Ren-So
comes in. It is an acronym made up of 3 Japanese words:

• Hokoku, which means to always report to your supervisor to ensure transparency.

• Renraku, which means to inform your supervisor and teammates. Sharing of information is
crucial in an organisation.

• Sodan, which means to consult. It is not necessary that even as a supervisor, you will have the
answer to everything.

The skills imparted to the students by these principles allows for a smooth transition from
learning in a classroom to working in a professional capacity. For Mayur, an aspiring automobile
technician, his training in keeping his workplace neat and tidy using the principles of 5S
translates into an uncluttered living environment where he is able to be at peace.

Armed with a strong syllabus developed by the Association for Overseas Technical Scholarship
(AOTS), Japan, under the guidance of the Ministry of Economy, Trade and Industry (METI),
Japan, JIM provides a holistic learning environment. It transforms students into industry-ready,
global workers. And thus they are prepared to take on any challenges that the outside world
throws at them!

Chapter II –Results

Company's Business Ideas/Plan


To promote and nurture new business ideas, the country's largest carmaker, Maruti Suzuki, is

launching the ‘WagonR Think Big Challenge 2' initiative.

The company will support the winner of this pan-India campaign with a a sum of Rs 10 lakh in

cash prize and venture capital, besides a WagonR car.

The basic aim of the Marketing Strategy of Maruti Suzuki is to give you deep insights into
Maruti Suzuki’s journey from a mere collaboration between Maruti Udyog (A government-
owned entity) and Japan’s Suzuki Motor Corporation in the early 1980s to being at the top of the
auto industry presently.
A well planned and executed marketing knowledge is essential for any organization to crack and
scale to greater heights. With the onset of the digitalization wave, equipping yourself with digital
marketing skills has become all the more important. To aid you in this process, we cordially
invite you to attend a masterclass in this field which is organized by the Founder and CEO of
IIDE, Mr Karan Shah himself.
This blog shall give you full enlightenment into the marketing strategy of Maruti Suzuki to help
you gain an overall understanding of this giant. Let’s begin with an idea of the company.

) SWOT Analysis of maruti Suzuki

SWOT Analysis of Maruti Suzuki


SWOT Analysis of Maruti Suzuki can show how a well-established company uses its
opportunities to ensure its growth. It can show how the company takes advantage of its strengths
to use the opportunities while working on its weaknesses. SWOT Analysis of Maruti Suzuki will
also reveal its expansion plans.
To better understand the SWOT analysis of Maruti Suzuki, refer to the infographic below:
Strengths of Maruti Suzuki
The strengths of a company are the unique qualities that provide it with an advantage in
acquiring more market share, attracting more customers, and maximizing profitability. Maruti
Suzuki’s strengths are as follows:

 Market Share: Maruti Suzuki has a large market share with a share value of 45 percent which is

comparatively more if compared to its competitors and this is one of the biggest strengths of

Maruti Suzuki.

 Number of Sales: Maruti Suzuki registered the highest number of domestic sales in the previous

fiscal year, with 9,66,447 units. This has recently surpassed the national sales mark of 10 million.

 Brand Value: Maruti Suzuki has high brand recognition and a large consumer base. Also earned

a good reputation for selling second-hand vehicles of good quality through its true value chain.
 Strong Advertising & Reliable Suppliers: Effective approaches of advertising, good product

range, and largest dealers network to attract people. It has a strong base of reliable suppliers of

raw material thus enabling the company to overcome any supply chain bottlenecks.

 Product Quality: Maruti Suzuki engine capacity is supreme which provides more mileage as

compared to its competitors, their cars require less maintenance and service cost is the lowest in

the market. These advantages give Maruti Suzuki a complete edge over its competitors in terms

of capturing the market of the lower and middle class whose percentage is more as compared to

the rich class.

 Cost Optimization: Maruti’s cost optimization strategies have benefitted the company in the

long run, for example during Covid-19 the brand localized its imports and re-structured its way

of functioning.

Weaknesses of Maruti Suzuki


Weaknesses are elements of a company or brand that can be strengthened. The following are
Maruti Suzuki’s flaws:

 Weak Interior Quality: Maruti Suzuki’s interior quality is weak in comparison with the high-

quality interior of Hyundai, Maruti Suzuki, Volkswagen etc. Also, the build quality of Maruti

Suzuki cars is a little bit low compared to these competitors.

 Government Intervention: Government intervenes because of having a share in Maruti Suzuki

as it’s owned by the government and a public company. Strategic decisions are dependent upon

government approvals.

 Penetration Inability: Maruti Suzuki’s one of biggest inabilities is not being able to penetrate

the world market. The company is only popular in India and some of the Asian regions other

than this Maruti Suzuki’s presence in Europe and the North American market is not that

fascinating.
 Weak Managerial & labour Relationship: The relationship between management and labour

unions is not good. Employee strikes, worker’s wages strikes have declined the reputation of

Maruti Suzuki in terms of being the best working place.

 Diversification in the Workforce: The workforce at Maruti Suzuki Motors is analyzed with

mostly local workers, and low amounts of workers from other ethnical backgrounds. Lack of

diversification makes it difficult for employees from different ethnical backgrounds to adapt at

the workplace, leading to loss of talent.

Opportunities for Maruti Suzuki


Potential areas of attention for a corporation to enhance results, expand sales, and, ultimately,
profit are known as opportunities. Maruti Suzuki’s opportunities are

 LPG Version of Cost-Effective Hatchbacks: Maruti Suzuki is popular in the taxi sector and

most of the taxis are connected with LPG. A recently positive move by Maruti Suzuki is that it

introduced its LPG version of Wagon R which is a smart move taken by the company.

 Collaborations: Maruti Suzuki can jointly work with big car manufacturers to bring innovations

to the market by improving relations. Just like recently, Maruti Suzuki is working with Toyota

on a project to launch small electric SUVs in the market.

 Technological Developments: Technology succeeds with numerous advantages among many

departments. Operations can be automated to diminish costs. Technology enables better data to

be obtained from customers and improves trading accomplishments.

 Immense Production Potential: Maruti Suzuki has immense potential in foreign markets and it

is a rapidly growing market for automobiles. It can tap into European and other untouched

markets where growth potential is even more.

 Transport Industry: The transportation industry has been thriving in recent years and has

significant growth potential in the future. This has reduced transportation costs, which benefits

Maruti Suzuki by lowering its overall costs.


Threats to Maruti Suzuki
Environmental variables that can damage a company’s growth are known as threats. Maruti
Suzuki’s threats include the following:

 Fall in Market Share: Maruti Suzuki has experienced a great fall in its market share because of

the higher increment in market share of other brands, such as Figo, Ford, and Volkswagen. Also,

Maruti Suzuki registered a sales drop in January 2022.

 Intense Competition: China intends to join the Indian car market which can create immense

competition. Also, Maruti Suzuki has other competitors from global automotive brands.

 Controversies: Maruti Suzuki is facing certain controversies such as its cars failing accident

tests and safety benchmarks which is one of the most important aspects customers look into

before purchasing any car.

 Costs and Expenses: Higher fuel costs including demonetization expenses and economic

recession has caused decreasing purchases by customers.

Long-term and Short-term Plans/Business Models

After celebrating 100 years of its existence in March last year, Japanese auto giant Suzuki
Motor Corporation (SMC) has revealed its next five-year mid-term management plan that
determines its actionable outlines for growth between April 2021 and March 2026.

 Major investments in the next 5 years on R&D for electrification


 Will also develop and commercialise the Suzuki hybrid system
 Plans to strengthen SUV portfolio and promote CNG cars in India

The company is going to rely on emerging economies like India, which will continue to be

one of its key pillars of growth, as per the broad philosophy outlined in its next mid-term

plan. The plan also outlines a greater emphasis on CO2 emissions reduction, wherein Suzuki

will focus on developing electrification technologies by 2025, fully implement them into its

products, and eventually make a full-scale qualitative increase by 2030.

Maruti Suzuki: the jewel in SMC's crown


India, specifically, is going to play a key role in this regard. The Japanese giant, through its

joint-venture entity Maruti Suzuki India, aims to take initiative in promoting electrification

required by the society in response to the environmental issues in the country, whilst

maintaining a market share of over 50 percent in India’s passenger vehicle (PV) segment.

Suzuki’s big-ticket investments

SMC is also earmarking aggressive investments to the tune of 1 trillion yen (approximately

Rs 69,000 crore) over the next five years, majorly driven by spends on R&D in

electrification.

It also projects 60 percent growth over the next five years, with the FY2025 net consolidated

sales pegged at 4.8 trillion yen (Rs 3,31,200 crore), compared to 3 trillion yen (Rs 2,07,000

crore) in FY2020. By realising this growth, it aims to also make up for lost revenue due to

the global impact of the COVID-19 pandemic, and India, once again, is being eyed as the key

driver for this shoot up in sales.

Suzuki’s electrification roadmap revealed

The mid-term management plan states that the next five years will be the period of

concentrated development in order for Suzuki to survive beyond 2025. The company will

take several actions towards the development and commercialisation of the Suzuki hybrid

system.

On one hand, it will develop hybrid systems for mini, compact and commercial vehicles;

develop plug-in hybrids and expand the range of vehicles equipped with it. On the other

hand, it will undertake development of mini and compact EV models, whilst also utilising

joint development through its global alliance with Toyota.


The duo will develop a small EV platform and expand mutual supply of hybrid vehicles

while also leveraging batteries for hybrid vehicles produced in India.

Long Term

The investment is part of Maruti’s 10-year, Rs 18,000 crore investment plan, which envisages

annual capacity creation of 1 million units. This new plant will come up in Haryana, home to

Maruti Suzuki since its birth in 1983

Maruti Suzuki, India’s largest carmaker, has increased its capital expenditure (capex) outlay for
FY22 to Rs 6,700 crore and plans to set up a new manufacturing plant, a top company official
said.
This will be the first time Maruti Suzuki invests in fresh capacity creation in over 15 years. The
last time the company set up a new plant was in 2007, in Manesar, Haryana.

The comparatively newer Gujarat plant, which manufactures the Swift, Baleno, and Dzire, is
owned by a subsidiary of Maruti’s parent, Suzuki Motor Company, called Suzuki Motor Gujarat
(SMG).

The Rs 2,200 crore investment plan is part of the company’s 10-year, Rs 17,000-18,000 crore
investment plan, which envisages capacity creation of 1 million units per annum. This new plant
will come up in Haryana, which has been home to Maruti Suzuki since its birth in 1983.

Details of MIS Applications and Models in the selected business Organisation/Details


of Information Security System and measures of protection against information theft.
Conclusion

Maruti Suzuki cars entered the Indian market and quickly captured the attention of a generation
used to practical but uninspiring Fiats and Ambassadors. Their combination of features,
reasonable prices, energetic engines, and modern designs brought a breath of fresh air to a
generation craving quality vehicles. Maruti Suzuki’s popularity in India can be credited to
several reasons that have come together to build a heritage that makes Maruti the first name
every family considers when buying a car.

Let us examine the factors which have contributed to Maruti cars continuing love affair with the
Indian car consumer.

Pocket friendly and practical


Affordability and practicality are the hallmarks of Maruti Suzuki vehicles, making them a
popular choice among car buyers. The company has built a strong reputation for manufacturing
vehicles that are not only affordable in terms of their purchase price but also in terms of their
maintenance costs. Maruti Suzuki cars are designed to cater to the essential needs of the average
consumer, providing reliable performance and fuel efficiency at a reasonable price point.

When it comes to practicality, Maruti Suzuki vehicles excel in providing ample space for both
passengers and cargo. Every aspect of their design is centred around functionality, ensuring that
each feature serves a purpose. The interiors are thoughtfully crafted, offering comfortable seating
and user-friendly controls that enhance the driving experience. Moreover, the compact
dimensions of many Maruti Suzuki models make them the ideal choice for navigating congested
city streets and effortlessly parking in tight spaces. Maruti Suzuki has earned its reputation by
offering aggressively priced, practical, and fuel-efficient cars that resonate with the needs and
aspirations of Indian consumers. Their commitment to affordability, quality, and functionality
has made them a preferred brand in the Indian automotive market.

Maruti Suzuki Service Centre

Maruti Suzuki has established an extensive network of authorised service centres across India,
offering reliable and standardised services for their vehicles. These authorised service centres are
equipped with the necessary tools, diagnostic equipment, and genuine spare parts to ensure high-
quality maintenance and repairs In addition to authorised service centres, there are also numerous
unauthorised service centres and stand-alone garages that cater to Maruti Suzuki cars. The
presence of Maruti cars in far-flung places usually indicates that a service centre is not far. The
availability of skilled mechanics in stand-alone garages is an advantage for Maruti Suzuki
owners who prefer more localized and cost-effective servicing options. These skilled mechanics
have gained expertise through years of experience working on Maruti Suzuki cars and can
provide reliable and efficient services. The easy availability of spare parts, both original and
generic, further enhances the convenience for Maruti Suzuki owners. Maruti Suzuki’s robust
supply chain and well-established ancillary industries ensure a steady supply of spare parts in the
market. Original spare parts from authorised dealerships offer the highest quality and
compatibility, while aftermarket or generic parts provide more affordable options. This
combination of authorised and unauthorised service centres, along with skilled mechanics and
the availability of spare parts, ensures that Maruti Suzuki owners have a range of options to
choose from based on their preferences, budget, and location, making it easier to maintain and
service their vehicles.

Maruti Suzuki has emerged as a dominant force in the Indian automotive market, capturing a
substantial market share with India accounting for 50 percent of Suzuki Motors’ global sales,

Maruti Suzuki’s rise to prominence can be attributed to its practical and affordable offerings that
resonated with Indian consumers. The brand’s understanding of the Indian market, diverse range
of models, affordability, fuel efficiency, and durability have contributed to its widespread appeal.
The extensive sales and service network ensures easy availability of Maruti Suzuki cars and
reliable after-sales support, enhancing customer satisfaction.

Maruti Suzuki’s commanding presence in the Indian automotive market, focus on exports,
recognition

Maruti Suzuki is one of the largest automobile manufacturers in India. The company was
founded in 1981 as a joint venture between the Indian government and Suzuki Motor
Corporation of Japan. Maruti Suzuki has a market share of over 50% in the Indian car
market. The company sells a wide range of cars, from small cars to SUVs. Maruti Suzuki is
known for its fuel-efficient cars and its low-cost maintenance. The company has a strong brand
name and a loyal customer base. Maruti Suzuki is a major contributor to the Indian
economy. The company employs over 100,000 people and has a network of over 3,000
dealerships. Maruti Suzuki is a well-managed company with a strong track record of
profitability. The company is well-positioned to continue to grow in the Indian car market.

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