Maruti Udyog Ltd.
   HOME

TheInfoList



OR:

Maruti Suzuki India Limited is a
publicly listed A public company is a company whose ownership is organized via shares of stock which are intended to be freely traded on a stock exchange or in over-the-counter markets. A public (publicly traded) company can be listed on a stock exchange (li ...
Indian
subsidiary A subsidiary, subsidiary company, or daughter company is a company (law), company completely or partially owned or controlled by another company, called the parent company or holding company, which has legal and financial control over the subsidia ...
of Japanese automaker
Suzuki Motor Corporation is a Japanese multinational mobility manufacturer headquartered in Hamamatsu, Shizuoka. It manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard marine engines, wheelchairs and a variety of other small internal com ...
. It is the largest automobile manufacturer in India, specialising in small cars. The company was established by the
Government of India The Government of India (ISO 15919, ISO: Bhārata Sarakāra, legally the Union Government or Union of India or the Central Government) is the national authority of the Republic of India, located in South Asia, consisting of States and union t ...
as Maruti Udyog Limited in February 1981 as a joint venture with Suzuki, the latter becoming the first Japanese automaker, as well as the first major foreign automaker, to invest in India. Maruti opened its first production facility in
Gurugram, Haryana Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest o ...
, in 1982. Initially, Maruti was majority-owned by the Indian government, with Suzuki only taking a 26% stake during its establishment in 1982. The Indian government gradually reduced its stake, partially departed the business in 2003 by making it a public company and then sold all of its remaining shares to Suzuki Motor Corporation in 2007.Maruti Suzuki Corporate Information
. Retrieved 2013-02-01.
Maruti Suzuki has emerged as the largest Suzuki subsidiary in terms of production volume and sales. As of September 2022, the company had a leading market share of 42% in the Indian passenger car market.


History


Pre-Suzuki affiliation

The Maruti name can be traced back to a previous company that was established by the third Indian Prime Minister
Indira Gandhi Indira Priyadarshini Gandhi (Given name, ''née'' Nehru; 19 November 1917 – 31 October 1984) was an Indian politician and stateswoman who served as the Prime Minister of India, prime minister of India from 1966 to 1977 and again from 1980 un ...
's son,
Sanjay Gandhi Sanjay Gandhi (14 December 1946 – 23 June 1980) was an Indian politician. He was a member of the Lok Sabha and was the younger son of Indira Gandhi and Feroze Gandhi. During his lifetime, he was widely expected to succeed his mother as head ...
. In the early 1970s, the Indian government initiated the search for a small car manufacturer. At that time, India had already been manufacturing cars for several years, and the idea of a more affordable "people's car" had been discussed since the 1950s. Sanjay Gandhi, known for his passion for cars, apprenticed with
Rolls-Royce Rolls-Royce (always hyphenated) may refer to: * Rolls-Royce Limited, a British manufacturer of cars and later aero engines, founded in 1906, now defunct Automobiles * Rolls-Royce Motor Cars, the current car manufacturing company incorporated in ...
in
Crewe Crewe () is a railway town and civil parish in the unitary authority of Cheshire East in Cheshire, England. At the 2021 United Kingdom census, 2021 census, the parish had a population of 55,318 and the built-up area had a population of 74,120. ...
of UK for three years. Upon his return in 1968, he recognized the potential of small car production in the private sector. Both the government and the Planning Commission endorsed the concept. Sanjay Gandhi subsequently initiated his automotive project, establishing operations in a rented garage near
Roshanara Bagh Roshanara Garden is a Mughal gardens, Mughal-era garden built by Roshanara Begum, the second daughter of the Mughal Empire, Mughal emperor Shah Jahan. It is situated in Shakti Nagar, Delhi, Shakti Nagar near Kamla Nagar Clock Tower and North C ...
in
Old Delhi Shahjahanabad colloquially known as Old Delhi( Hindustani: ''Purāni Dillī'') is an area in the Central Delhi district of Delhi, India. It was founded as a walled city and officially named Shahjahanabad in 1648, when Shah Jahan decided to shi ...
. The government issued a
letter of intent A letter of intent (LOI or LoI, or Letter of Intent) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. The concept is similar to a heads of agreement, term she ...
in September 1970, which allowed Sanjay Gandhi to produce up to 50,000 cars in a year. In August 1971, Maruti Motors Limited was established with
Sanjay Gandhi Sanjay Gandhi (14 December 1946 – 23 June 1980) was an Indian politician. He was a member of the Lok Sabha and was the younger son of Indira Gandhi and Feroze Gandhi. During his lifetime, he was widely expected to succeed his mother as head ...
becoming its first
managing director A chief executive officer (CEO), also known as a chief executive or managing director, is the top-ranking corporate officer charged with the management of an organization, usually a company or a nonprofit organization. CEOs find roles in variou ...
. He acquired 297 acres of land in
Gurgaon Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest ...
at a cost of approximately Rs 12,000 per acre to establish his Maruti factory. Initially, plans were laid out to manufacture an indigenous car priced at around Rs 8,000. However, the cost of the vehicle escalated to approximately Rs 16,500 (ex-showroom) and about Rs 21,000 on the road in Haryana. Despite the increase in price, the Maruti car remained competitively priced, being Rs 5,000-10,000 cheaper than its counterparts. The first prototype of the Maruti car was completed in 1972, with production anticipated to commence by April 1973, as promised by Sanjay Gandhi. He made the
chassis A chassis (, ; plural ''chassis'' from French châssis ) is the load-bearing framework of a manufactured object, which structurally supports the object in its construction and function. An example of a chassis is a vehicle frame, the underpart ...
by himself at his workshop, and a
Triumph The Roman triumph (Latin triumphus) was a celebration for a victorious military commander in ancient Rome. For later imitations, in life or in art, see Trionfo. Numerous later uses of the term, up to the present, are derived directly or indirectl ...
motorcycle engine was used to propel the car. Amid allegations of
nepotism Nepotism is the act of granting an In-group favoritism, advantage, privilege, or position to Kinship, relatives in an occupation or field. These fields can include business, politics, academia, entertainment, sports, religion or health care. In ...
, the Maruti car underwent a feasibility test by the Vehicle Research & Development Establishment in
Ahmednagar Ahmednagar, officially Ahilyanagar, is a city in, and the headquarters of, the Ahmednagar district, Maharashtra, India. Ahmednagar has several dozen buildings and sites from the Nizam Shahi period. Ahmednagar Fort, once considered almost impre ...
. The prototype failed the test, being deemed unsuitable for road use. Nonetheless, in July 1974, Maruti was granted an industrial license to produce 50,000 cars. However, the actual production output at Sanjay Gandhi's factory fell short of the initial target. Despite the projection to commence production at a rate of 12-20 units per month and escalate to 200 units per day, only 21 units were manufactured by 31 March 1976. Sanjay Gandhi's involvement in politics during the Emergency further complicated the project's progress. Following Indira Gandhi's defeat in the 1977 election and a
court order A court order is an official proclamation by a judge (or panel of judges) that defines the legal relationships between the parties to a hearing, a trial, an appeal or other court proceedings. Such ruling requires or authorizes the carrying o ...
for Maruti's dissolution in 1978, the project faced uncertain prospects. With Indira's return to office in 1980 and Sanjay's death in a plane crash, the Government of India intervened and assumed control of Maruti through
legislative A legislature (, ) is a deliberative assembly with the legal authority to make laws for a political entity such as a country, nation or city on behalf of the people therein. They are often contrasted with the executive and judicial powers ...
measures.


Tie-up with Suzuki

Following Sanjay's death, his mother Indira tasked
Arun Nehru Arun Kumar Nehru (24 April 1944 – 25 July 2013) was an Indian politician and columnist. He was member of the 9th Lok Sabha from Bilhaur as a Janata Dal leader. Earlier, he was member of the 7th and 8th Lok Sabhas from Rae Bareli on a ...
with evaluating the feasibility of resurrecting her son's vision to develop India's affordable car. Nehru acknowledged the project's potential but emphasized the need for expertise from an experienced manufacturer. Subsequently, a team was assembled to explore potential collaborations with manufacturers globally. The Indian government started engaging in negotiations with
Suzuki is a Japanese multinational mobility manufacturer headquartered in Hamamatsu, Shizuoka Prefecture, Shizuoka. It manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard motor, outboard marine engines, wheelchairs and a va ...
in April 1982. Following several months of preparations, Suzuki of Japan and Maruti Udyog Ltd. signed a license and
joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acce ...
agreement in October 1982. Initially, Suzuki acquired a modest 26 percent stake in the joint venture, owing to their constrained capital and perceived risks, despite the Indian government's preference for Suzuki to take a 40 percent foreign equity share. Both parties reached a consensus, stipulating that Suzuki would increase its stake to 40 percent after five years. Both the venture partners also 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. Suzuki later increased its equity to 50% in 1992, and further to 56.21% as of 2013. Maruti was granted permission to import two Suzuki vehicles that were completely assembled in the first two years of India's closed market, with an initial target of using just 33% domestic components. This greatly displeased the nearby manufacturers. There were some concerns that the Indian market would not support Maruti Suzuki's relatively high production levels, and the government even considered changing the petrol tariff and decreasing the excise fee to increase sales. Local production commenced in December 1983 with the introduction of the SS30/SS40 Suzuki Fronte/Alto-based
Maruti 800 The Maruti Suzuki 800 is a city car that was manufactured by Maruti Suzuki in India from 1983 to 2014. The first generation (SS80) was based on the 1979 Suzuki Alto and had an 800 cc F8B engine, hence the moniker. Widely regarded as the ...
. In 1984, the Maruti Van with the same three-cylinder engine as the 800 was released. Maruti targeted annual production of 20,000 cars in the first year, and 40,000 in the second year at the
Gurgaon Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest ...
plant. However, the rapid success of Maruti exceeded expectations of Suzuki. Within the first year, the company received an 120,000 bookings, much to Suzuki's surprise. Despite facing overwhelming demand, Maruti encountered challenges in meeting orders due to capacity limitations. The surge in demand necessitated a complete overhaul of its production strategy, by adjusting the ratio between the 800 and the van. The Suzuki SJ410-based Gypsy, a 970 cc 4-wheel drive off-road vehicle, was introduced in 1985. The 100,000th car manufactured by the firm was the 796 cc hatchback Suzuki Alto (SS80), which succeeded the original 800 in 1986. In 1987, the company started exporting to western markets, when a lot of 500 cars were sent to Hungary. By 1988, the capacity of the Gurgaon plant was increased to 100,000 units per annum. Until 1992–1993, Maruti faced constraints in increasing capacity due to the need for
foreign exchange The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it i ...
. Moreover, securing funding for expansion was challenging, especially during the Indian economic crisis of 1991. The Indian government stipulated that expansion could only proceed with foreign loans to cover costs. Eventually, Maruti secured aid from Axiom Bank in Japan, allowing them to finance the
foreign exchange The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it i ...
component of their expansion. This enabled Maruti to establish a new production line in the Gurgaon plant, addressing the persistent issue of shortages. In 1989, the
Maruti 1000 The Suzuki Cultus is a supermini car produced by the Japanese manufacturer Suzuki from 1983 to 2016. The nameplate is currently used as a rebadged second-generation Suzuki Celerio in Pakistan since 2017. It was first presented at the 25th Tok ...
was introduced and the 970 cc,
three-box The configuration of a car body is typically determined by the layout of the engine, passenger and luggage compartments, which can be shared or separately articulated. A key design feature is the car's roof-supporting pillars, designated from fr ...
was India's first contemporary sedan. By 1991, 65 percent of the components, for all vehicles produced, were indigenized. After the liberalization of the
Indian economy The economy of India is a developing mixed economy with a notable public sector in strategic sectors. * * * * It is the world's fourth-largest economy by nominal GDP and the third-largest by purchasing power parity (PPP); on a per capita i ...
in 1991, Suzuki increased its stake in Maruti to 50 percent, making the company a 50-50 joint venture with the government of India as the other stakeholder. In 1993, the
Zen Zen (; from Chinese: ''Chán''; in Korean: ''Sŏn'', and Vietnamese: ''Thiền'') is a Mahayana Buddhist tradition that developed in China during the Tang dynasty by blending Indian Mahayana Buddhism, particularly Yogacara and Madhyamaka phil ...
, a 993 cc engine hatchback was launched, and in 1994 the 1,298 cc Esteem sedan was introduced. Maruti produced its 1 millionth vehicle since the commencement of production in 1994. Maruti's second plant was opened with an annual capacity reaching 200,000 units. Maruti launched a 24-hour emergency on-road vehicle service. In 1998, the new Maruti 800 was released, being the first change in design since 1986. Zen D, a 1,527 cc diesel hatchback, Maruti's first diesel vehicle, and a redesigned Omni were introduced. In 1999, the 1.6-litre Maruti Baleno three-box sedan and Wagon R were also launched. In 2000, Maruti became the first car company in India to launch a
call center A call centre (English in the Commonwealth of Nations, Commonwealth spelling) or call center (American English, American spelling; American and British English spelling differences#-re, -er, see spelling differences) is a managed capability th ...
for internal and customer services. The new
Alto The musical term alto, meaning "high" in Italian (Latin: '' altus''), historically refers to the contrapuntal part higher than the tenor and its associated vocal range. In four-part voice leading alto is the second-highest part, sung in ch ...
model was released. In 2001, Maruti True Value, selling and buying used cars was launched. In October of the same year, the
Maruti Versa The is a kei truck produced by the Japanese automaker Suzuki. The microvan version was originally called the Carry van until 1982 when the passenger van versions were renamed as the . In Japan, the Carry and Every are ''kei cars'' but the Suzu ...
was launched. In 2002, Esteem Diesel was introduced. Two new subsidiaries were also started: Maruti Insurance Distributor Services and Maruti Insurance Brokers Limited. Suzuki Motor Corporation increased its stake in Maruti to 54.2 percent. In 2003, the new
Suzuki Grand Vitara The Suzuki Vitara is a series of SUVs produced by Suzuki in five generations since 1988. The second and third generation were known as the Suzuki Grand Vitara, while the fourth generation eschewed the "Grand" prefix. In Japan and a number of o ...
XL-7 was introduced while the
Zen Zen (; from Chinese: ''Chán''; in Korean: ''Sŏn'', and Vietnamese: ''Thiền'') is a Mahayana Buddhist tradition that developed in China during the Tang dynasty by blending Indian Mahayana Buddhism, particularly Yogacara and Madhyamaka phil ...
and the Wagon R were upgraded and redesigned. The four millionth Maruti vehicle was built and they entered into a partnership with the
State Bank of India State Bank of India (SBI) is an Indian Multinational corporation, multinational Public sector undertakings in India, public sector bank and financial service body headquartered in Mumbai. It is the largest bank in India with a 23% market shar ...
. Maruti Udyog Ltd. was listed on BSE and NSE after a public issue, which was oversubscribed tenfold. In 2004, the
Alto The musical term alto, meaning "high" in Italian (Latin: '' altus''), historically refers to the contrapuntal part higher than the tenor and its associated vocal range. In four-part voice leading alto is the second-highest part, sung in ch ...
became India's best-selling car overtaking the
Maruti 800 The Maruti Suzuki 800 is a city car that was manufactured by Maruti Suzuki in India from 1983 to 2014. The first generation (SS80) was based on the 1979 Suzuki Alto and had an 800 cc F8B engine, hence the moniker. Widely regarded as the ...
after nearly two decades. The five-seater
Versa The Versa was a line of laptop computers sold by the Japanese electronics conglomerate NEC Corporation from 1993 to 2009. It comprised many form factors of laptops, from conventional clamshell notebooks to pen-enabled convertibles featuring detach ...
5-seater, a new variant, was created while the Esteem was re-launched. Maruti Udyog closed the financial year 2003–04 with an annual sale of 472,122 units, the highest ever since the company began operations, and the fiftieth lakh (5 millionth) car rolled out in April 2005. The 1.3-litre
Suzuki Swift The is a supermini car (B-segment) produced by Suzuki. The vehicle is classified as a B-segment marque in the European single market, a segment referred to as a supermini in the British Isles. Prior to this, the "Swift" nameplate had been applie ...
five-door hatchback was introduced in 2005. In 2006, Suzuki and Maruti set up another joint venture called Maruti Suzuki Automobiles India to build two new manufacturing plants, one for vehicles and one for engines. Cleaner cars were also introduced, with several new models meeting the new Bharat Stage III emission standards. In February 2012, Maruti Suzuki sold its ten millionth vehicle in India. In July 2014 it had a market share of more than 45%. In May 2015, the company produced its fifteen millionth vehicle in India, a Swift Dzire. On 25 April 2019, Maruti Suzuki announced that it would phase out production of diesel cars by 1 April 2020, when the Bharat Stage VI emission standards come into effect. The new standards would require a significant investment from the company to upgrade its existing diesel engines to comply with the more stringent emission standards. Chairman R.C. Bhargava stated, "We have taken this decision so that in 2022 we are able to meet the corporate average fuel efficiency (CAFE) norms and a higher share of
CNG Compressed natural gas (CNG) is a fuel gas mainly composed of methane (CH4), compressed to less than 1% of the volume it occupies at standard atmospheric pressure. It is stored and distributed in hard containers at a pressure of , usually in c ...
vehicles will help us comply with the norms. I hope the union government's policies will help grow the market for CNG vehicles." At that time, diesel cars accounted for about 23 percent of Maruti Suzuki's annual sales. The company planned to launch its first
electric car An electric car or electric vehicle (EV) is a passenger car, passenger automobile that is propelled by an electric motor, electric traction motor, using electrical energy as the primary source of propulsion. The term normally refers to a p ...
in the second half of 2021, the Maruti Suzuki Wagon R Electric, before cancelling its plan. The company now intends to produce e Vitara (unveiled in Milan and based on eVX concept shown in 2023) instead in 2025.


Manufacturing facilities

Maruti Suzuki has two manufacturing facilities in
Haryana Haryana () is a States and union territories of India, state located in the northern part of India. It was carved out after the linguistic reorganisation of Punjab, India, Punjab on 1 November 1966. It is ranked 21st in terms of area, with les ...
(
Gurugram Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest o ...
and
Manesar Manesar is a town and municipal corporation, known as New gurgaon city in the Gurugram district of the state of Haryana, India and a part of the National Capital Region (NCR) of Delhi. It is an Industrial Model Township home to factories and ...
), and one manufacturing complex in Gujarat wholly owned by parent company
Suzuki is a Japanese multinational mobility manufacturer headquartered in Hamamatsu, Shizuoka Prefecture, Shizuoka. It manufactures automobiles, motorcycles, all-terrain vehicles (ATVs), outboard motor, outboard marine engines, wheelchairs and a va ...
which supplies its entire production to Maruti Suzuki. All manufacturing facilities have a combined production capacity of 2,250,000 vehicles annually (1.5 million from Maruti Suzuki's two plants and 750,000 from
Suzuki Motor Gujarat Suzuki Motor Gujarat Private Limited (SMG) is an automotive manufacturing plant A factory, manufacturing plant or production plant is an Industry (manufacturing), industrial facility, often a complex consisting of several buildings filled ...
). The
Gurugram Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest o ...
manufacturing facility has three fully integrated manufacturing plants and is spread over . The Gurgaon facilities also manufacture 240,000 '' K-Series'' engines annually. The Gurugram facility manufactures the Alto 800, Wagon R, Ertiga, XL6, S-Cross,
Vitara Brezza The Suzuki Brezza (known as Vitara Brezza for the first generation) is a subcompact crossover SUV from Suzuki and manufactured by Maruti Suzuki in India. The Brezza is the first Suzuki-branded car which was fully developed in India. The model wa ...
,
Ignis Ignis (Latin for ''fire'') may refer to: * ''Ignis'' (album), a 2000 album by Paul Giger * Ignis (cycling team), an Italian professional cycling team that existed from 1955 to 1968 * Ignis Scientia, a major character in the ''Final Fantasy XV'' su ...
, and
Eeco Eeco or EECO may refer to * Early Eocene Climatic Optimum, a warm period 50 million years ago * Maruti Suzuki Eeco, an Indian microvan {{disambig ...
. The Gurugram facility also assembles the Jimny starting from January 2021 solely for export markets. It was reported the Indian-assembled Jimny will be exported to African markets and countries in the Middle East. The
Manesar Manesar is a town and municipal corporation, known as New gurgaon city in the Gurugram district of the state of Haryana, India and a part of the National Capital Region (NCR) of Delhi. It is an Industrial Model Township home to factories and ...
manufacturing plant was inaugurated in February 2007 and is spread over . Initially, it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking the total production capacity to 800,000 vehicles annually. The Manesar plant produces the
Alto The musical term alto, meaning "high" in Italian (Latin: '' altus''), historically refers to the contrapuntal part higher than the tenor and its associated vocal range. In four-part voice leading alto is the second-highest part, sung in ch ...
,
Swift Swift or SWIFT most commonly refers to: * SWIFT, an international organization facilitating transactions between banks ** SWIFT code * Swift (programming language) * Swift (bird), a family of birds It may also refer to: Organizations * SWIF ...
, Ciaz, Baleno and Celerio. On 25 June 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki pay an additional ₹235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. In 2012, the company decided to merge Suzuki Powertrain India Limited (SPIL) with itself. SPIL was started as a JV by Suzuki Motor Corp. along with Maruti Suzuki. It has the facilities available for manufacturing diesel engines and transmissions. The demand for transmissions for all Maruti Suzuki cars is met by the production from SPIL. In 2017, the new
Suzuki Motor Gujarat Suzuki Motor Gujarat Private Limited (SMG) is an automotive manufacturing plant A factory, manufacturing plant or production plant is an Industry (manufacturing), industrial facility, often a complex consisting of several buildings filled ...
facility was opened. This third facility is not owned by Maruti Suzuki, but instead wholly owned by Suzuki Motor Corporation. Despite that, the plant supplied vehicles to Maruti without any additional cost. Located in Hansalpur,
Ahmedabad Ahmedabad ( ), also spelled Amdavad (), is the most populous city in the Indian state of Gujarat. It is the administrative headquarters of the Ahmedabad district and the seat of the Gujarat High Court. Ahmedabad's population of 5,570,585 ...
, the plant has a total annual capacity of 750,000 units. In November 2021 Maruti Suzuki announce to set up of a big plant in IMT Kharkhoda in Sonipat district across 900 acres with an investment of ₹18,000 crores. Haryana State Industrial and Infrastructure Development Corporation gives 900 acres of land to Maruti Suzuki for setting up a new plant in Industrial Model Township at
Kharkhoda, Haryana Kharkhoda is a city and municipal committee in Sonipat district in the Indian States and territories of India, state of Haryana and is a part of National Capital Region (NCR). In Kharkhoda Chhapadeshwar Mahadev Mandir is very popular within the ...
. In August 2022
Prime Minister of India The prime minister of India (ISO 15919, ISO: ) is the head of government of the Republic of India. Executive authority is vested in the prime minister and his chosen Union Council of Ministers, Council of Ministers, despite the president of ...
Narendra Modi Narendra Damodardas Modi (born 17 September 1950) is an Indian politician who has served as the Prime Minister of India, prime minister of India since 2014. Modi was the chief minister of Gujarat from 2001 to 2014 and is the Member of Par ...
virtually laid the foundation stone of Maruti Suzuki's new manufacturing plant in Kharkhoda. It will be one of the largest automobile manufacturing plant in the world with the capacity of making a million cars per year. The Maruti Suzuki's
Gurugram Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest o ...
manufacturing facility will shift to new manufacturing facility in
Kharkhoda, Haryana Kharkhoda is a city and municipal committee in Sonipat district in the Indian States and territories of India, state of Haryana and is a part of National Capital Region (NCR). In Kharkhoda Chhapadeshwar Mahadev Mandir is very popular within the ...
will have four manufacturing plants in which a million cars will be produced annually and the
Kharkhoda, Haryana Kharkhoda is a city and municipal committee in Sonipat district in the Indian States and territories of India, state of Haryana and is a part of National Capital Region (NCR). In Kharkhoda Chhapadeshwar Mahadev Mandir is very popular within the ...
plant will be third largest car producing facility in world. Along with this, the carmaker will invest 35,000 crores into building second manufacturing plant close to their
Gujarat Gujarat () is a States of India, state along the Western India, western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the List of states and union territories ...
plant in the state with a million cars capacity per annum. The operations will commence in 2028-29 taking the production capacity combined to 4.35 million units annually.


Controversies


Industrial relations

Since its founding in 1983, Maruti Udyog Limited has experienced problems with its labor force. The Indian labor 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. 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. Employees used
slowdown A slowdown ( UK: go-slow) is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. A slowdown may be used as either a prelude or an alternative to a stri ...
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 The National Democratic Alliance (NDA; ISO 15919, ISO: ''Rāṣṭrīya Lokatāntrik Gaṭhabandhan'') is an Indian big tent Political group, multi-party political alliance, led by the country's biggest political party, the Bharatiya Janata Pa ...
, India pursued a disinvestment 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 subsidized by the Government, and the union has better protection while the company remains in control of the government. 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 privatized Maruti in 2002 and Suzuki became the majority owner of Maruti Udyog Limited.


Manesar violence

On 18 July 2012, Maruti's
Manesar Manesar is a town and municipal corporation, known as New gurgaon city in the Gurugram district of the state of Haryana, India and a part of the National Capital Region (NCR) of Delhi. It is an Industrial Model Township home to factories and ...
plant was hit by violence. According to Maruti management, the production workers attacked supervisors and started a fire that killed company's General Manager of Human Resources Avineesh Dev and injured 100 other managers, including two Japanese
expatriates An expatriate (often shortened to expat) is a person who resides outside their native country. The term often refers to a professional, skilled worker, or student from an affluent country. However, it may also refer to retirees, artists and ...
. The workers also allegedly injured nine policemen. However Maruti Suzuki Workers Union (MSWU) President Sam Meher alleged that management ordered 300 hired security guards to attack the workforce during the violence. The incident is the worst-ever for Suzuki since the company began operations in India in 1983. 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. According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker, Jiya Lal. These claims were denied by the company and the police. Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of Jiya Lal who had been suspended for allegedly beating a supervisor. 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. On 27 June 2013, an international delegation from the International Commission for Labor Rights (ICLR) released a
report
alleging serious violations of the industrial right of workers by the Maruti Suzuki management. Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. Maruti employees currently earn allowances in addition to their base wage. The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence is the result of a planned violence by a section of workers and union leaders and arrested 91 people. Maruti Suzuki in its statement on the unrest, announced that all work at the Manesar plant has been suspended indefinitely. The shut down of Manesar plant is leading to a loss of about ₹75 crore per day. On 21 July 2012, citing safety concerns, the company announced a lockout under
The Industrial Disputes Act, 1947 The Industrial Disputes Act, 1947 extended to the whole of India and regulated Indian labour law concerning trade unions as well as Individual workman employed in any industry within the territory of Indian mainland. Enacted on 11 March 1947 an ...
pending results of an inquiry the company has requested of the
Haryana government Government of Haryana, also known as the State Government of Haryana, or locally as the Haryana Government, is the supreme governing authority of the Indian state of Haryana and its 22 districts. It consists of an executive, ceremonially led b ...
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. On 26 July 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labor 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. 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. Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this type of violence has never happened in Suzuki Motor Corp's global operations in Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines. Nakanishi apologized to affected workers on behalf of the company, and in press interview requested the central and Haryana state governments to help stop further 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-recognize 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 Gujarat () is a States of India, state along the Western India, western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the List of states and union territories ...
was an expansion opportunity and not an alternative to Manesar. 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. 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. A total of 148 workers were charged with the murder of Human Resources Manager Avineesh Dev. The court dismissed charges against 117 of the workers. On 17 March 2017, 31 workers were found guilty of variety of offences. 18 were convicted on charges of rioting, trespassing, causing hurt and other related offences under Indian Penal Code sections. The remaining 13 workers were sentenced to life in imprisonment after being found guilty of the
murder Murder is the unlawful killing of another human without justification (jurisprudence), justification or valid excuse (legal), excuse committed with the necessary Intention (criminal law), intention as defined by the law in a specific jurisd ...
of General Manager of Human Resources Avineesh Dev. Twelve of the thirteen sentenced were office-bearers of the Maruti Suzuki Workers Union at the time of the alleged offences. The prosecution had sought the death penalty for the thirteen. Both prosecution and defense have announced they will appeal against the sentences. Defense counsel
Vrinda Grover Vrinda Grover (born 1964) is a lawyer, researcher, and human rights and women's rights activist based in New Delhi, India. As a lawyer, she has appeared in prominent human rights cases and represented women and child survivors of domestic and s ...
stated, "We will file appeals against all convictions in the HC. The evidence, as it stands, cannot withstand legal scrutiny. There is no evidence to link these workers to the murder. The 13 who have been convicted, it’s important to remember that they were the leaders of the union. Therefore, it is clear that this is targeted framing of these persons. We hope for justice in the superior court". The Maruti Suzuki Workers Union is continuing to organize industrial action and protests calling for the workers to be released and criticizing the judgement and sentences an unjust. An international appeal for the release of the workers has been made by the International Committee for the Fourth International (ICFI) and other organizations such as the People's Alliance for Democracy and Secularism (PADS).


Automotive safety

Maruti Suzuki has been criticized for compromising safety in their products by automotive enthusiasts, journalists, and the
Global NCAP Global New Car Assessment Programme (Global NCAP) is a project of the Towards Zero Foundation, a UK-registered charity. The programme serves as an umbrella organisation encouraging co-operation between the various New Car Assessment Programmes ...
, as they are made lighter in terms of kerb weight to achieving higher fuel economy. Starting January 2014, several of their made for India cars were crash tested at Global NCAP, most of which have given disappointing results. Cars like
Alto The musical term alto, meaning "high" in Italian (Latin: '' altus''), historically refers to the contrapuntal part higher than the tenor and its associated vocal range. In four-part voice leading alto is the second-highest part, sung in ch ...
,
Swift Swift or SWIFT most commonly refers to: * SWIFT, an international organization facilitating transactions between banks ** SWIFT code * Swift (programming language) * Swift (bird), a family of birds It may also refer to: Organizations * SWIF ...
, Celerio, S-Presso (with driver's airbag), and
Eeco Eeco or EECO may refer to * Early Eocene Climatic Optimum, a warm period 50 million years ago * Maruti Suzuki Eeco, an Indian microvan {{disambig ...
which had no safety features like
airbags An airbag is a vehicle occupant-restraint system using a bag designed to inflate in milliseconds during a collision and then deflate afterwards. It consists of an airbag cushion, a flexible fabric bag, an inflation module, and an impact sensor. ...
were awarded 0 stars, while Wagon-R and
Swift Swift or SWIFT most commonly refers to: * SWIFT, an international organization facilitating transactions between banks ** SWIFT code * Swift (programming language) * Swift (bird), a family of birds It may also refer to: Organizations * SWIF ...
(2018 model year) which had dual front airbags were awarded 2 stars out of 5. Only the Vitara, Brezza (4 stars) and Ertiga (3 stars) have been awarded decent safety ratings. Though Maruti Suzuki claimed that they were following the safety standards mandated by the Government of India, it however only implied with the safety features included in their cars and not the strong body shell or build quality which suffers the impact of the crash. Maruti Suzuki has also come under fire for discrimination with customers in India, by making cars safe meant for exports to European and African markets. The chairman, RC Bhargava stated that "''If carmakers incorporate such features in even entry-level cars, obviously the price would go up, which would lead consumers to opt for two-wheelers, which would be more unsafe''", which attracted criticism. The company, in February 2020, decided not to send their cars to Global NCAP for testing, as they only believe in the Safety Standards set by the Government of India. Following the crash test results of S-Presso, Alejandro Furas, Secretary General of
Global NCAP Global New Car Assessment Programme (Global NCAP) is a project of the Towards Zero Foundation, a UK-registered charity. The programme serves as an umbrella organisation encouraging co-operation between the various New Car Assessment Programmes ...
said, “It is very disappointing that Maruti Suzuki, the manufacturer with the largest share of the Indian market, offers such low safety performance for Indian consumers. Domestic manufacturers like Mahindra and Tata have demonstrated high levels of safety and protection for their customers, both achieving five star performance. Surely it’s time for Maruti Suzuki to demonstrate this commitment to safety for its customers?” Alongside, David Ward, President of the Towards Zero Foundation said, "''We have seen important progress on car safety in India, with new legislation introduced by the government and manufacturers like Mahindra and Tata accepting the Global NCAP five star challenge and producing models which go well beyond minimum regulatory requirements. There is no place for zero rated cars in the Indian market. It remains a great disappointment that an important manufacturer like Maruti Suzuki does not recognize this.''" For FY 2022 and 2023, Global NCAP crash tested the
Swift Swift or SWIFT most commonly refers to: * SWIFT, an international organization facilitating transactions between banks ** SWIFT code * Swift (programming language) * Swift (bird), a family of birds It may also refer to: Organizations * SWIF ...
, S-Presso,
Ignis Ignis (Latin for ''fire'') may refer to: * ''Ignis'' (album), a 2000 album by Paul Giger * Ignis (cycling team), an Italian professional cycling team that existed from 1955 to 1968 * Ignis Scientia, a major character in the ''Final Fantasy XV'' su ...
, and Wagon-R, each of which received 1-star rating, while the Alto K10 received 2-star rating. While these cars came with basic safety features such as ABS and Dual Front Airbags, as mandated by the Government of India, the body structure was rated unstable with inability to withstand further loads. Maruti Suzuki has faced ire by auto enthusiasts and media for prioritizing sales over safety by pricing the unsafe cars much lower than competitors, eventually earning the name "Tin Cans" for the unsafe cars.


Anti-competitive dealer policies

In Aug 2021, Maruti Suzuki was fined
The Indian rupee sign ⟨₹⟩ is the currency symbol for the Indian rupee (ISO 4217: INR), the official currency of India. Designed by D. Udaya Kumar, it was presented to the public by the Government of India on 15 July 2010, following its ...
200 Crore (US$28.57 million) by the Competition Commission of India (CCI) for implementing its Discount Control Policy that restrains dealers from offering customer discounts beyond those prescribed by the carmaker.


Models


Current models


ICE vehicles


Electric vehicles


Discontinued models


Services


Sales and service network

As of August 2024, Maruti Suzuki has 2,987 Arena sales outlets across 2,522 cities and 495 Nexa sales outlets across 301 cities in India. The company aims to increase its sales network to 4,000 outlets by 2020. It has 4964 service stations (defined as "touchpoints) across 2,519 cities throughout India, alongside 781 Quick Response Vehicles and 409 mobile workshops. Maruti's dealership network is larger than that of enough known companies combined. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Also, The Express Service stations exist, sending across their repairman to the vehicle if it is away from a normal service center. In 2015, Maruti Suzuki launched Nexa, a new dealership network for its premium cars which stands for New Exclusive Automotive Experience. Maruti Suzuki currently sells Fronx, Baleno, Grand Vitara, XL6, Ciaz,
Ignis Ignis (Latin for ''fire'') may refer to: * ''Ignis'' (album), a 2000 album by Paul Giger * Ignis (cycling team), an Italian professional cycling team that existed from 1955 to 1968 * Ignis Scientia, a major character in the ''Final Fantasy XV'' su ...
and Jimny through Nexa outlets. S-Cross was the first car to be sold through Nexa outlets. The company recently achieved a milestone of selling 1.5 million cars from over 350 dealerships across the country and is the third largest automobile retail channel of India.


Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the
National Insurance Company National Insurance Company Limited (NICL) is an Indian public sector insurance company owned by the Government of India and administered by the Ministry of Finance. It is headquartered at Kolkata and was established in 1906 by Gordhandas Dutia ...
, Bajaj Allianz,
New India Assurance The New India Assurance Co. Ltd. (''NIACL'') is an Indian Public Sector Undertakings in India, public sector insurance company owned by the Government of India and administered by the Ministry of Finance (India), Ministry of Finance. Headquart ...
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. 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.


Maruti Finance

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. Maruti Suzuki tied up with
ABN Amro Bank ABN or abn may refer to: Aviation * IATA airport code for Albina Airstrip in Marowijne District, Suriname Companies * ABN AMRO Group, a Dutch bank group * ABN AMRO, sometimes referred to as "ABN" in shorthand, is a Dutch state-owned bank * Al ...
,
HDFC Bank HDFC Bank Limited is an Indian banking and financial services company, headquartered in Mumbai. It is India's largest private sector bank by assets and market capitalisation. The Reserve Bank of India (RBI) has identified the HDFC Bank, Stat ...
,
ICICI ICICI Bank Limited is an Indian Multinational Corporation, multinational bank and financial services company headquartered in Mumbai with a registered office in Vadodara. It offers a wide range of banking and financial services for corporate a ...
Limited, Kotak Mahindra,
Standard Chartered Bank Standard Chartered PLC is a British multinational bank with operations in wealth management, Wholesale banking, corporate and investment banking, and treasury services. Despite being headquartered in the United Kingdom, it does not conduct retai ...
, 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 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. 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 Delaware ( ) is a U.S. state, state in the Mid-Atlantic (United States), Mid-Atlantic and South Atlantic states, South Atlantic regions of the United States. It borders Maryland to its south and west, Pennsylvania to its north, New Jersey ...
, 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%. 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.


Maruti TrueValue

Maruti True service offered by Maruti Suzuki to its customers. It is a marketplace for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti or non-Maruti vehicles with the help of this service in India. As of 10 August 2017 there are 1,190 outlets across 936 cities.


N2N Fleet Management

N2N is the short form of ''End to End Fleet Management'' and provides lease and fleet management to corporates. Clients who have signed up of this service include Gas Authority of India Ltd,
DuPont Dupont, DuPont, Du Pont, duPont, or du Pont may refer to: People * Dupont (surname) Dupont, also spelled as DuPont, duPont, Du Pont, or du Pont is a French surname meaning "of the bridge", historically indicating that the holder of the surname re ...
,
Reckitt Benckiser Reckitt Benckiser Group PLC, currently branded as Reckitt, formerly known as Reckitt Benckiser, is a British multinational consumer goods company headquartered in Slough, United Kingdom. It is a producer of health, hygiene and nutrition prod ...
,
Doordarshan Doordarshan (), abbreviated as DD, is India's State-owned enterprise, state-owned public broadcasting, public television broadcaster. Established by the Government of India on 15 September 1959, it is owned by the Ministry of Information and B ...
, Singer India,
National Stock Exchange of India National Stock Exchange of India Limited, also known as the National Stock Exchange (NSE), is an Indian stock exchange based in Mumbai. It is the List of stock exchanges, 5th largest stock exchange in the world by total market capitalization, ...
and Transworld. This fleet management service include Leasing, Maintenance, Convenience services and Remarketing.


Maruti Accessories

Many of the auto component companies, other than Maruti Suzuki, started to offer compatible components and accessories. 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.


Maruti Suzuki Driving School

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 behavior and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. At 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."


Awards and recognition

The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty seventh position in 2013 and ninth position in 2019 among the most trusted brands of India.Gold Recognition at LACP 2020/21 Vision Awards..Open Innovation Leader Award (2023).Best Innovative Company of the Year (2023).Best Use of AI in Customer Service (2023).


References and notes


External links


Official page
{{Authority control Car manufacturers of India Companies based in New Delhi Manufacturing companies based in Delhi Suzuki Indian subsidiaries of foreign companies Formerly government-owned companies of India Vehicle manufacturing companies established in 1981 Indian companies established in 1981 BSE SENSEX NIFTY 50 1981 establishments in Delhi Companies listed on the National Stock Exchange of India Companies listed on the Bombay Stock Exchange