Dokumen - Tips - Maruthi Suzuki Wikipedia PDF
Dokumen - Tips - Maruthi Suzuki Wikipedia PDF
Dokumen - Tips - Maruthi Suzuki Wikipedia PDF
Maruti Suzuki
From Wikipedia, the free encyclopedia
Type
Public
Traded as
BSE: 532500
NSE: MARUTI
BSE SENSEX Constituent
Industry Automotive
Founded 1981
Products Automobiles
Net income
Parent
Suzuki[7]
Website www.marutisuzuki.com
Maruti Suzuki India Limited ( ), commonly referred to as Maruti and formerly known
as Maruti Udyog Limited, is an automobile manufacturer in India .[8] It is a subsidiary of Japanese
automobile and motorcycle manufacturer Suzuki.[7] As of November 2012, it had a market share of
37% of the Indian passenger car market.[9] Maruti Suzuki manufactures and sells a complete range
of cars from the entry level Alto, to the hatchback Ritz, Celerio, A-Star , Swift, Wagon R, Zen and
Contents
[hide]
1 History
o 1.1 Chronology
2 Joint venture related issues
3 Manufacturing facilities
4 Industrial relations
o 4.1 Manesar violence
5 Products and services
o 5.1 Current models
o 5.2 Discontinued models
o 5.3 Sales and service network
o 5.4 Maruti Insurance
o 5.5 Maruti Finance
o 5.6 Maruti TrueValue
o 5.7 N2N Fleet Management
o 5.8 Maruti Accessories
o 5.9 Maruti Driving School
6 Exports
7 Awards and recognition
8 See also
9 References and notes
10 External links
History [edit]
Maruti Udyog Limited was established in February 1981, though the actual production commenced
only in 1983. It started with Maruti 800, based on th eSuzuki Alto kei car which at the time was the
only modern car available in India. Its only competitors were Hindustan Ambassador and Premier
Padmini. Originally, 74% of the company was owned by the Indian government, and 26% by Suzuki
of Japan.[12] 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 .[13]
Chronology[edit]
Beginnings
Maruti's history begins in 1970, when a private limited company named 'Maruti technical services
private limited' (MTSPL) is launched on November 16, 1970. The stated purpose of this company
was to provide technical know-how for the design, manufacture and assembly of "a wholly
indigenous motor car". In June 1971, a company called 'Maruti limited' was incorporated under the
Companies Act and Sanjay Gandhi became its first managing director. "Maruti Limited" goes into
liquidation in 1977. On 23 June 1980 Sanjay Gandhi dies when a private test plane he was flying
crashes. A year after his death, and at the behest of Indira Gandhi, the Indian Central government
salvages Maruti Limited and starts looking for an active collaborator for a new company. Maruti
Udyog Ltd is incorporated in the same year .[14]
Suzuki enters
In 1982, a license & Joint Venture Agreement (JVA) is signed between Maruti Udyog Ltd.
and Suzuki of Japan. At first, Maruti Suzuki was mainly an importer of cars. In India's closed market,
Maruti received the right to import 40,000 fully built-up Suzukis in the first two years, and even after
that the early goal was to use only 33% indigenous parts. This upset the local manufacturers
considerably. There were also some concerns that the Indian market was too small to absorb the
comparatively large production planned by Maruti Suzuki, with the government even considering
adjusting the petrol tax and lowering the excise duty in order to boost sales .[15] Finally, in 1983,
the Maruti 800 is released. This 796 cc hatchback is based on the SS80 Suzuki Alto nd Ind’
first affordable car. Initial product plan is 40% saloons, and 60% Maruti Van .[15] Local production
commences in December 1983.[11] In 1984 the Maruti Van, with the same three-cylinder engine as
the 800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000 units.
In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road vehicle, is launched. In 1986 the
original 800 is replaced by an all-new model of the 796 cc hatchback Suzuki Alto/Fronte. This is also
when the 100,000th vehicle is produced by the company .[14][dead link ] In 1987 follows the company's first
export to the West, when a lot of 500 cars were sent to Hungary. Maruti products had been exported
to certain neighboring countries already. By 1988, the capacity of the Gurgaon plant is increased to
100,000 units per annum.
Market liberalisation
In 1989 the Maruti 1000 is presented after having been shown earlier. This 970 cc, three-box is
Ind’ f conepoy sedan. By 1991 65 percent of the components, for all vehicles produced,
are indigenised. Meanwhile, the liberalisation of the Indian economy opens new opportunities but
also brings more competition to the segments in which Maruti operates. In 1992 Suzuki increases its
stake in Maruti to 50 percent, making the company a 50-50 JV with the Government of India the
other stake holder.
A flow of new models begin in the early nineties. In 1993 the Zen, a modern 993 cc, hatchback
which is later exported globally as the Suzuki Alto. In 1994 the 1298 cc Esteemappears, a more
luxurious redesigned Maruti 1000. This and other Marutis begin appearing in a plethora of different
equipment levels, to better suit India's increasingly discerning consumers. A Zen Automatic arrives in
1996, as does the Gypsy King, a 1.3 liter version of the compact off-roader, and a minibus version of
the Omni (the Omni E).
In 1994 Maruti Suzuki produces its 1 millionth vehicle since the commencement of production, being
the first company in India to do so. This is still not enough in a booming market and the next year
Maruti's second plant is opened, with annual capacity reaching 200,000 units. Maruti also launches a
24-hour emergency on-road vehicle service, the first of its kind in the country. In 1996 the United
Front government is formed, with Murasoli Maran new Industries Minister. On 27 August the
following year the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing Director, as the
then current Managing director R.C. Bhargava, was completing his tenure. This creates a conflict
withSuzuki, discussed closer in the Joint venture related issues section.
In 1998 the new Maruti 800 is released, the first change in design since 1986. This is simply a
facelift of the existing model, to ensure steady sales. Also, the two millionth vehicle is produced.
Other news include the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle.
The Omni van and microbus is also redesigned. The next year the Omni bus arrives in a high roof
version, the Omni XL. The 1.6 litre Maruti Baleno three-box saloon, advertised as the 'Maruti Suzuki
Baleno', also appears. This is Maruti's biggest car yet. Finally, in what is a very busy year,
the Wagon R is launched.
In 2000 Maruti becomes the first car company in India to launch a Call Center for internal and
customer services. The new Alto model is also released, somewhat larger and more modern than
the 800. The estate Baleno Altura is also shown, while IDTR (Institute of Driving Training and
Research) is launched jointly with the Delhi government to promote safe driving habits. In
2001 Maruti True Value, selling and buying used Maruti Suzukis, is launched in Bangalore and
Delhi, later in Mumbai and elsewhere. In October of the same year the Maruti Versa sees the day, a
bigger engined and more luxurious microbus than the Omni. It never catches on in the market and is
discontinued by late 2009, only to be replaced by a cheaper, stripped-down version called Eeco.
Customer information centers are also launched in Hyderabad, Bangalore and Chennai. In 2002
theEsteem Diesel appears, as does Maruti Insurance. Two new subsidiaries are also started: Maruti
Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation
increases its stake in Maruti to 54.2 percent.
In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen and the Wagon R are upgraded
and redesigned. The four millionth Maruti vehicle is built and they enter into a partnership with
the State Bank of India. Maruti Udyog Ltd is Listed on BSE and NSE after a public issue, which is
oversubscribed tenfold. In 2004 the Alto becomes India's new best selling car, overtaking the Maruti
800 which had been number one for nearly two decades. The five-seater Versa 5-seater, a new
variant, is created while the Esteem undergoes cosmetic changes and is re-launched with a price
cut. Maruti Udyog closed the financial year 2003-04 with an annual sale of 472,122 units, the highest
ever since the company began operations 20 years earlier, and the fiftieth lakh (5 millionth) car rolls
out in April, 2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift five-door hatchback
also appears. 2004-05 marked another record year (487,402 domestic sales) and exports reached
48,899 cars to about fifty different countries. The United Kingdom took the lion's share, with 10,623
deliveries.[16]
In 2006 Suzuki and Maruti set up another joint venture, "Maruti Suzuki Automobiles India", to build
two new manufacturing plants, one for vehicles and one for engines .[16]Cleaner cars were also
introduced, with several new models meeting the new "Bharat Stage III" standards.[16] In February
2012, Maruti Suzuki sold its ten millionth vehicle in India.[11] For the Month of July 2014, it has a
Market share of >45 %.[17]
Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was named Director,
Productions and Projects. The next year (1989) he was named Director of Materials [clarification needed ] and
in 1993 he became Joint Managing Director. [citation needed ]
Suzuki did not attend the Annual General Meeting of the Board with the reason of it being called on
a short notice.[20] Later Suzuki Motor Corporation went on record to state that Bhaskarudu was
"incompetent" and wanted someone else. However, the Ministry of Industries, Government of India
refuted the charges. Media stated from the Maruti Suzuki sources that Bhaskarudu was interested
to indigenise most of components for the models including gear boxes especially for Maruti 800.
Suzuki also felt that Bhaskarudu was a proxy for the Government and would not let it increase its
stake in the venture.[21] If Maruti Suzuki would have been able to indigenise gear boxes then Maruti
Suzuki would have been able to manufacture all the models without the technical assistance from
Suzuki. Till today the issue of localization of gear boxes is highlighted in the press.[22]
Industrial relations[edit]
Since its founding in 1983, Maruti Udyog Limited experienced problems with its labour force.
The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing
process. In 1997, there was a change in ownership, and Maruti became predominantly government
controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started.
Labour unrest started under management of 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.[27][28]
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.[27][29]
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.[30][31]
Manesar violence[edit]
On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories
attacked supervisors and started a fire that killed a company official and injured 100 managers,
including two Japanese expatriates. The violent mob also injured nine policemen .[32][33] The
company's General Manager of Human Resources had both arms and legs broken by his attackers,
unable to leave the building that was set ablaze, and was charred to death. The incident is the worst-
ever for Suzuki since the company began operations in India in 1983 .[34]
Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly
conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new car launch,
and a 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 be caste-related.[35][36] According to the Maruti Suzuki Workers Union a supervisor had abused
and made discriminatory comments to a low-caste worker .[37] These claims were denied by the
company and the police.[33] 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 .[34] The workers claim harsh working conditions and extensive hiring of low-paid contract
workers which are paid about $126 a month, about half the minimum wage of permanent
employees.[37] Maruti employees currently earn allowances in addition to their base
wage.[38] 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.[35]
India Today claimed[39] 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 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 .[40][41]
Maruti Suzuki in its statement on the unrest,[42] 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.[34] The shut down of Manesar plant is leading to a loss of about Rs
75 crore[43] per day.[44] On 21 July 2012, citing safety concerns, the company announced
a lockout under The 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.[43] 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 12,500 a month at start, which increased in three years to 21,000-22,000 per month .[45] In
a separate report, a contractor who was providing contract employees to Maruti claimed the
company gave its contract employees the best wage, allowances and benefits package in the
region.[46]
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 de- ecogne M S Woe’
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 .[47][48]
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.[37] Manesar violence adds to India's recent incidents of labour disputes turning to violence.
Analysts claim[49][50] 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 .[51]
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 .[52]
Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service
was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services
Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[56]
This service started as a benefit or value addition to customers and was able to ramp up easily. By
December 2005 they were able to sell more than two million insurance policies since its inception .[57]
Maruti Finance[edit]
To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to
the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing
loan.[58] Maruti Suzuki tied up with ABN Amro 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 [59] 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.[60]
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% .[61] 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 ]
Maruti TrueValue[edit]
Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti
Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this
service in India. As of 31 March 2010 there are 341 outlets. [citation needed ]
N2N Fleet Management[edit]
N2N is the short form of End to End Fleet Management and provides lease and fleet management
solution to corporates. Clients who have signed up of this service includ eGas Authority of India
Ltd, DuPont, Reckitt Benckiser , Doordarshan, Singer India, [[National Stock Exchange] of India] and
Transworld. This fleet management service include end-to-end solutions across the vehicle's life,
which includes Leasing, Maintenance, Convenience services and Remarketing .[62]
Maruti Accessories[edit]
Many of the auto component companies other than Maruti Suzuki started to offer components and
accessories that were compatible. This caused a serious threat and loss of revenue to Maruti
Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are sold through dealer
outlets and authorized service stations throughout India .[63]
Maruti Driving School [edit]
A Maruti Driving School inBangalore
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.[64]
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."[65]
Exports[edit]
Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does
not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent
to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the
benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen
to encourage.[citation needed ] Every political party expected Maruti Suzuki to earn foreign currency. Angola,
Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala,
Costa Rica and El Salvador are some of the markets served by Maruti Exports. [citation needed ]