Business Superbrands- 2nd edition(Main)
8/27/08
3:51 AM
Market
As early as 2005, when domestic industry
crystal gazers were refusing to predict the
future of India’s car market with any certainty,
Keystone, a US-based subsidiary of LaSalle
Consulting Associates, announced that India
would become the world's third largest
automobile market by 2030, behind just China
and the US.
Today, there is little to cast doubt on the
accuracy of this forecast. A combination of
private entrepreneurship and recent
government policies has sent the Indian car
market vrrroooming. Market volumes have
surged and demand for all types of cars from
luxury models to SUVs to mini-cars has reached
new heights.
The small car segment, however, still rules the
Indian market and Maruti Suzuki retains its
dominance. Osamu Suzuki, the head of Japan's
Suzuki Motor Corporation has announced plans
to beef up its vehicle line-up and dealer
network to keep the company’s present Indian
market share of “at least 50% for eternity.”
Over the past 25 years, Maruti Suzuki has
created, defined and redefined the automobile
market in India. In 1982, when the landmark
Gurgaon facility was set up, India bought barely
40,000 cars a year. Today, India is more than a
million-cars-a-year market, one of the world’s
largest and fastest growing.
Yet, despite this growth, car penetration in
India remains small, lower than even countries
like Sri Lanka and Pakistan. Maruti Suzuki is
preparing for the explosive potential of the
Indian car market of the future with huge
investments in manufacturing infrastructure. It is
also preparing a range of new models designed
to reflect the aspirations of the increasingly
globalised new Indian car buyer.
Achievements
The saga of this company has been an odyssey
of opportunity, challenge, growth, social levelling,
mobility – and the visible excitement – it
brought to an entire nation. Though over 25
manufacturers offer nearly 80 models to Indian
car buyers, Maruti Suzuki continues to retain its
leadership. With perceivable benefits of quality,
reliability, technology, performance,
trustworthiness and service, it dominates the
largest market segment – affordable, valuepacked, fuel-efficient cars – and is scoring
significant successes in fast-growing upper
segments as well. Maruti Suzuki also has fully
operational, India’s largest service
network, spanning over 1200
towns and cities.
Maruti Suzuki’s
greatest
achievement
has been the
special niche it
has carved for
itself with
customers.
This is
reflected in
the fact that
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no car
manufacturer –
Maruti Suzuki
apart – has been
ranked first in
customer
satisfaction eight
years in a row
(Source: J D
Power Customer
Satisfaction Index
Study Asia-Pacific
2000-07). The
company has also
been rated
amongst the
world’s top five
car manufacturers
in the Forbes
World’s Most
Reputed
Companies
List, 2006.
The company’s record
stands at 7 million cars
manufactured to date –
that’s more than two-thirds
of all cars on Indian roads.
High standards set by Maruti
Suzuki for productivity
and environmental
and corporate social
responsibility have become
benchmarks for the industry.
These achievements,
however, transcend sales and
manufacturing figures. The
real story of Maruti Suzuki is
the seminal impact it has
had on India’s industrial growth, development
and the expectations it has raised amongst
consumers across all categories of products.
The persistent refrain of a quality culture has
created a huge network of world-class vendors
and ancillaries that have, in a dominoes-type
affect, swelled the ranks of India’s middle class
who aspire, demand and are, in turn, willing to
deliver quality products and services.
In the social sphere, the new mobility granted
by the company’s cars expanded vistas, boosted
travel and tourism sectors, galvanised interstate
commerce and energised consumers to force
governments to spend on infrastructure that
would ultimately go on to transform an
entire nation.
History
Maruti Suzuki was incorporated as Maruti
Udyog Limited (MUL) in 1981, as a joint venture
of the Indian government and Suzuki Motor
Corporation of Japan. The first Maruti 800 rolled
out on 14th December 1983 sparking off a
revolution in automobiles.
Other car launches followed and soon the
foundation for India’s largest service network
was laid.
In 1992, the Suzuki Motor
Corporation
increased its stake
to 50%. In 2002,
it bought a
controlling
interest in the
company. In 2003
MUL was listed
on the Nationaland the Bombay
Stock Exchanges
after its initial
public offer was
oversubscribed
Business Superbrands- 2nd edition(Main)
8/27/08
3:51 AM
ten times. This brought the retail investor back
into the share market.
Osamu Suzuki was awarded the Padma
Bhushan in 2007, for his unparalleled
contribution to the Indian automobile industry.
After former Japanese Prime Minister, Y. Mori, he
became only the second Japanese citizen to be
so honoured.
Maruti Suzuki crossed the one million
production mark in 1994 – its 11th year – the
six million mark by 2007 and by March 2008 it
had put on the road more than 7 million
vehicles.
The company was renamed Maruti Suzuki
India Limited (MSIL) in 2007.
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camshaft driven power plant
generates 75 bhp at 4000 rpm and
provides 190Nm of torque at 2000
rpm. Selected models of Dzire offer
automatic climate control, power
windows, fog lamps, steeringmounted audio controls and tilt
steering features. Six onboard
computers control everything from
fuel consumption to ignition timing.
As witnessed in the success of
the Swift, the new generation of
Maruti Suzuki cars have struck a
chord with the emerging new India.
The A-Star and the Splash are being
Product
Brand Values
Ever since the first Maruti 800
rolled out, the company’s products
have generated unprecedented
customer delight. Their quality and
reliability has created a solid
bedrock of trust. The Maruti 800
was India’s first hatchback; it was
introduced in 1983 and in its
current avatar – 25 years after
launch – still sells handsomely.
The Gypsy was India’s first true
SUV and the Omni was India’s first
van that allowed for smart space
management. Both are still in
production. The Zen, India’s first cult
car was introduced in 1993 and was in
production until 2006. The Maruti 1000, later
renamed Esteem, became the aspiring sedan of
its era.
The decade 1995/2005 was a period of
consolidation during which existing products
were upgraded and Wagon R, Alto, Baleno and
Grand Vitara were introduced. After 2005,
Maruti Suzuki sprung a range of new products
that have driven growth. The Swift, introduced in
2005 in petrol and 2007 in diesel, created a
new segment of premium hatchbacks. The
strong demand brought back the concept of a
‘waiting period’ in the Indian market. The stylish
Zen Estilo replaced the Zen in 2006.
The new Grand Vitara and the SX4 sedan
were introduced in May 2007, to help the
company evolve and gain a foothold in the
A3 segment.
The car that has possibly made more heads
turn than any other is Dzire, launched in early
2008. Dzire comes in six variants – three each
in the petrol and diesel versions that boast 1.3
litre, high-performance engines. In fact, the
1248cc diesel engine used in Dzire Diesel was
selected as the Engine of the Year in Europe in
2006. This outstanding double overhead
While individual brands in the company’s
portfolio have their own positioning, they all
draw strength from the core Maruti Suzuki
value of trust, reliability and leadership.
Along with changing times, Maruti Suzuki is
also being seen as a dynamic, innovative, stylish
and high-technology brand. New product
offerings such as the Swift and SX4 are
strengthening these perceptions. Organisational
values that contribute to Maruti Suzuki’s
leadership are customer obsession; fast, flexible,
first mover; innovative and creative; networking
and partnership; openness and learning.
It is in these traits that consumers can see a
true reflection of Maruti Suzuki – the company
that ushered in the car era and changed forever
the way people travel.
readied for launch in the near future, while
futuristic concepts like the Kizashi are also slated
to soon join the Maruti Suzuki portfolio.
Besides products, Maruti Suzuki has offered
its customers the benefit of a whole range of
services, including True Value pre-owned cars,
Maruti Finance, Maruti Insurance, Autocard and
Maruti Driving Schools.
www.marutisuzuki.com
Recent Developments
With the increased role of MSIL in the global
operations of Suzuki, the company has
earmarked Rs. 9000 crore (US$ 2.25 billion)
for research in India. This is a major step in
realising Suzuki Motor Corporation’s
commitment to turning India into Asia’s
R&D hub for automobiles.
The inauguration of the ultramodern
Manesar plant in 2007 with a capacity to
manufacture 300,000 cars will also push MSIL
past 1 million cars by 2010/11 and help it
occupy a position of prestige and eminence
in Suzuki’s worldwide operations.
Promotion
While most car manufacturers bank on staid,
product-only centric communications, Maruti
Suzuki prefers to project and promote the
strong and confident face of its consumer in its
brand outreach strategy. This should come as no
surprise. The truth after all is that having outsold
all manufacturers Maruti Suzuki has a bigger
consumer success story to tell than everyone
else put together. In Maruti Suzuki’s scheme of
things a happy consumer face is worth an awful
lot more than just a vehicle’s grill or its
instrument panel.
The consumer, apart, the company’s
communications has kept pace with the
changing trends and aspirations of the market.
As a result Maruti Suzuki’s advertising relates to
its audience by appealing to both heart and
head. Several campaigns have captured the
imagination of customers and have gone on to
becoming iconic statements. Kaancha and Ki
karein petrol khatam hi nahi hunda are some of
the memorable commercials to come out of the
company’s stables.
Maruti Suzuki has also pioneered the
growth of the digital media and has created
popular properties like the Maruti Suzuki
cricket ratings.
THINGS YOU DIDN’T KNOW ABOUT
Maruti Suzuki
By 2010 Maruti Suzuki India will contribute
about one third to Suzuki’s global car volumes
Concept A-Star was showcased in the Auto
Expo 2008. A production model especially
developed for India, jointly by engineers in India
and Japan, will be launched later in the year
A-Star manufactured in India will also be
marketed and sold in Europe
Under an agreement with the Government of
Haryana, Maruti Suzuki is modernising four ITIs
by bringing in new technology, modern
equipment and the latest teaching aids
Four villages in Haryana – Kasan, Alihar, Dhana
and Baas – have been adopted by Maruti
Suzuki to develop health care, employment,
education and infrastructure
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