Professional Documents
Culture Documents
Type
Public
Traded as
Industry
Automotive
Predecessor(s)
Founded
1981
Headquarters
Key people
Automobiles 369.34 billion(US$6.2 billion) (2012)[4] 16.81 billion(US$280 million) (2012)[4] 6,903 (2011)[5] Suzuki[6] www.marutisuzuki.com
and motorcycle manufacturer Suzuki.[6] As of November 2012, it had a market share of 37% of the Indian passenger car market.[8]Maruti Suzuki manufactures and sells a complete range of cars from the entry level Alto, to hatchback Ritz, A-Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C' segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility vehicleGrand Vitara.[9] The company's headquarters are on Nelson Mandela Road, New Delhi.[1]In February 2012, the company sold its ten millionth vehicle in India.[10]
Contents
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o o
o o o o o o o
4.4 Sales and service network 4.5 Maruti Insurance 4.6 Maruti Finance 4.7 Maruti TrueValue 4.8 N2N Fleet Management 4.9 Accessories 4.10 Maruti Driving School
5 Issues and problems 6 Exports 7 Awards and recognition 8 See also 9 References and notes 10 External links
The old logo of Maruti Suzuki India Limited. Later the logo of Suzuki Motor Corp. was also added to it
An old Maruti 800 model from the 1980s, still in use as of 2013 in Goa. The Maruti 800 was popularly referred to as simply "Maruti"
Originally, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of May 2007, the
government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog.[11] Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to those made by Maruti in India, albeit not assembled or fully manufactured in India or Japan are sold by Pak Suzuki Motors in Pakistan. The company exports more than 50,000 cars annually and has domestic sales of 730,000 cars annually. [citation
needed]
Its manufacturing facilities are located at two facilities Gurgaonand Manesar in Haryana, south of Delhi.
Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 14,50,000 units annually. About 35% of [8] all cars sold in India are made by Maruti. The company is 54.2% owned by the Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange andNational Stock Exchange of India.[citation
needed]
During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto, Maruti Alto 800,WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara,Kizashi and the newly launched Ertiga. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.[citation needed] The company is believed to be moving towards introduction of a new version of Maruti 800 by November 2012, which will be more fuel efficient, though slightly costlier than Alto and existing Maruti 800.[12] The Suzuki Motor Corporation, Maruti's main stakeholder, is a global leader in mini and compact cars for three decades. Suzukis strategy is to utillise light-weight, compact engines with stronger power, fuel-efficiency and performance capabilities. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.[13] Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The model is supposed to be fuel efficient, hence more expensive.[14] With incereasing market competetion in the small car segment a new model along with the
upcomingWagonR Stingray will be the key fresh products for Maruti Suzuki India (MSI) to defend its market share amid the ever increasing competition[15] Further information: Timeline of Maruti Suzuki
Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions.[21][22] Employees used slowdown in October 2000, to press a revision to their incentive-linked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering. The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government.[21][23] The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited.[24][25]
house for every worker who wants one or cheaper home loans for those who want to build their own houses.Initial reports claimed wage dispute and a union spokesman alleged the incident may becasterelated.[29][30] According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker.[31] These claims were denied by the company and the police.[27] The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system; further, the numerous workers involved in violence were not affiliated with caste either. Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor.[28] The workers claim harsh working conditions and extensive hiring of lowpaid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees.[31] Maruti employees currently earn allowances in addition to their base wage.[32] Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. It was also claimed that bouncers were deployed by the company.[29]
India Today claimed[33] that its interviews of witnesses present at the plant confirms the dispute was over the suspended worker. The management insisted that they must wait for completion of inquiry underway before they can take any action on the employee suspended for beating up his supervisor. The management was then told, "you will be beaten up after we get a signal." Thereafter, the workers broke up into groups, went on to set the shop floor as well as all offices afire. They searched for management officials and proceeded with a barbaric beating of the officials at the site with iron rods. The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence may be the result of a planned violence by a section of workers and union leaders. The report claimed the worker's action was recorded on close circuit cameras installed within the company premises. The workers took several managers and high ranked management officials hostage. The responsible Special Investigative Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main servers and more than 700 computers." The recorded CCTV footage has been used to determine the sequence of events and people involved. Per the FIR, police have arrested 91 people and are searching for 55 additional accused.[34][35] Maruti Suzuki in its statement on the unrest,[36] announced that all work at the Manesar plant has been suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker's business plans for India.[28] The shut down of Manesar plant is leading to a loss of about Rs 75 crore[37] per day.[38] On 21 July 2012, citing safety concerns, the company announced a lockout underThe Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout.[37] On 26 July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws. The company further announced that it will stop using contract workers by March 2013. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports - the contract worker at Maruti received about 11,500 per month, while a permanent worker received about 21,000-22,000 per month.
[39]
12,500 a month at
was providing contract employees to Maruti claimed the company gave its contract employees the best wage, allowances and benefits package in the region.[40] Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Mr. Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers, and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He announced, "we are going to derecognise Maruti Suzuki Workers Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to
continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar.[41][42] Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India has strict labour laws, but their application is widely sidestepped by hiring low-wage contract workers.[31] Manesar violence adds to India's recent incidents of labour disputes turning to violence. Analysts claim [43][44] recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal sector and discourage investment in India. Government mandated procedures for labour dispute resolution are currently very slow, with tens of thousands of cases pending for years. The government of India is being asked to recognise that incidents such as Manesar violence indicate a structural sickness which must be solved nationally. The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share. The previous week company officials had announced that Maruti would scrap the practice of hiring contract workers and that the workers currently on temporary contracts would be made permanent. It would begin the process of hiring new workers on a permanent basis from 2 September 2012.[45] In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands. [46]
Maruti Omni
India's Corps of Military Police personnel patrolling the Wagah border crossing in thePunjab in a Maruti Gypsy.
Maruti Alto
Suzuki SX4
1. Omni (Launched 1984) 2. Gypsy (launched 1985) 3. WagonR (Launched 1999) 4. Alto (Launched 2000) 5. Swift (Launched 2005) 6. Estilo (Launched 2006) 7. SX4 (Launched 2007) 8. Swift DZire (Launched 2008) 9. A-star (Launched 2008) 10. Ritz (Launched 2009) 11. Eeco (Launched 2010) 12. Alto K10 (Launched 2010) 13. Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.[47] In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car.[48] 14. Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will be launched in the year 2014 15. Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44 lakh (exshowroom New Delhi). Maruti has rolled out four Petrol variants-Alto 800 STD, Alto 800 LX, Alto 800 LXI and Alto 800 VXI and three CNG variants -Alto 800 CNG STD,Alto 800 CNG LX and Alto 800 CNG LXi.[49] The 0.8 litre of petrol engine is very fuel efficient and pushes the car to produce high class mileage of 17 to 22 km per litre. The 48 ps @ 6000 rpm (Petrol) and 41 ps @ 6000 rpm (CNG)of peak power produced by the engine is also successful on road by delivering top-notch performance.[50].
of which 71 have been developed in-house. The Gurgaon Facilities manufactures the 800, Alto, WagonR,Estilo, Omni, Gypsy, and Eeco.
Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003[62] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India.[63] Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%.[64] GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates.[citation needed]
As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators.[67] A the launch ceremony for the school Jagdish Khattar stated "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should first do something in this regard and hence this initiative of Maruti Driving Schools."[68]
Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports.[citation needed]
See also