INTRODUCTION

India is one of the most important emerging car economies in the world today.

Premier Automobile Ltd. (PAL) earned the distinction of manufacturing the first car

in the country. Hindustan Motors (HM), which started as a manufacturer of auto

components graduated to manufacture cars in 1949. Thanks to the Licence Raj which

restricted foreign competitors to enter the Indian car market, Indian roads were ruled

by Ambassador Car from Hindustan Motors and the Fiat from Premier Auto Ltd. for

many of the initial years.

The control imposed on car makers related to production capacity and

distribution. The GOI control even extended to fixation of prices for cars and dealer

commissions. The three decades of the passenger car industry in India up to the early

1980s, proved to be the 'dark ages' for the consumer, as his choice throughout this

period was limited to two models Ambassador and Padmini. It was only in 1981,

after the entry of Maruti Udyog, that the car makers were given a free hand to fix the

prices of cars, thus, effectively abolishing all controls relating to the pricing of the end

product.

In the early 80's, a series of liberal policy changes were announced marking

another turning point for the automobile industry. The very face of the industry was

changed for ever in 1983 with the entry of public sector Maruti Udyog in a joint

venture with the Suzuki Corporation of Japan.

Maruti Udyog Ltd introduced 'Maruti 800' in 1983 providing a complete face

lift to the Indian car industry. The car was launched as a "Peoples car" with a price

tag of Rs 40,000. This changed the industry's profile dramatically. Maruti 800 was

well accepted by middle income families in the country. Many companies have

entered the car manufacturing sector, to tap the middle and premium end of car

industry. The new entrants are Daewoo (Matiz), Tata (Indica) and Hyundai

(Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi,

Honda and Fiat has entered the mid-sized car segment and Mercedes-Benz is in the

premium end of market.

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COMPANY PROFILE

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of

Parliament, to meet the growing demand of a personal mode of transport caused by

the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners

worldwide. This was due not only to their undisputed leadership in small cars but also

to their commitment to actively bring to Maruti Udyog Limited contemporary

technology and Japanese management practices (which had catapulted Japan over

USA to the status of the top auto manufacturing country in the world).

A license and a Joint Venture agreement was signed between Government of

India and Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct

1982.

The objectives of MUL then were:

Modernization of the Indian Automobile Industry.

Production of fuel-efficient vehicles to conserve scarce resources.

Production of large number of motor vehicles which was necessary for

economic growth.

SMC and MUL have drawn up an investment plan of Rs 9000 crore in India

upto 2010.

Vision

"The Leader in the Indian Automobile Industry, Creating Customer Delight

and Shareholder's Wealth; A pride of India"

Core Values

Customer Obsession

Fast, Flexible and First Mover

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Innovation and Creativity

Networking and Partnership

Openness and Learning

Technological Advantage

We have introduced the superior 16 * 4 Hypertech engines across the entire

Maruti Suzuki range. This new technology harnesses the power of a brainy 16-bit

computer to a fuel-efficient 4-valve engine to create optimum engine delivery. This

means every Maruti Suzuki owner gets the ideal combination of power and

performance from his car.

Our other innovation has been the introduction of Electronic Power Steering

(EPS) in select models. This results in better and greater maneuverability. In other

words, our cars have become even more pleasurable to drive.

Production/R & D

Spread over a sprawling 297 acres with 3 fully-integrated production facilities,

the Maruti Udyog Plant has already rolled out over 6.3 million vehicles. In fact, on an

average, two vehicles roll out of the factory every minute. And it takes on an average,

just 14 hours to make a car. More importantly, with an incredible range of 11 models

available in 50 variants, there's a Maruti Suzuki made here to fit every car-buyer's

budget, and dream. SMC and MUL have drawn up an investment plan of Rs 9000

corer in India up to 2010.

Production Milestones

1st vehicle produced, December 1983

1,00,000 vehicles produced by August, 1986

5,00,000 vehicles produced by June, 1990

10,00,000 vehicles produced by March, 1994

15,00,000 vehicles produced by April, 1996

20,00,000 vehicles produced by October, 1997

25,00,000 vehicles produced by March, 1999

30,00,000 vehicles produced by June, 2000

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35,00,000 vehicles produced by December 2001

40,00,000 vehicles produced by April, 2003

45,00,000 vehicles produced by April, 2004

50,00,000 vehicles produced by April, 2005

Milestones

2005 The fiftieth lakh car rolls out in April, 2005

Growth in overall sales by 15.8%

2004 New (non A/C) variant of Alto

Alto becomes India's new best selling car

LPG variant of 'Omni Cargo'

Versa 5-seater, a new variant

Baleno LXi, a new variant

Maruti closed the financial year 2003-04 with an annual sale of

472122 units, the highest ever since the company began operations

20 years ago

  2003 New Suzuki Grand Vitara XL-7

Redesigned and all-new Zen

New upgraded WagonR

Enters into partnership with State Bank of India

Production of 4 millionth vehicle. Listed on BSE and NSE after

a public issue oversubscribed 10 times

2002 WagonR Pride

Esteem Diesel. All other variants upgraded

Maruti Insurance. Two new subsidiaries started: Maruti

Insurance Distributor Services and Maruti Insurance Brokers

Limited

Alto Spin LXi, with electronic power steering

Special edition of Maruti 800, India’s first colour-coordinated

car

Maruti True value in Mumbai

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Maruti Finance in Mumbai with 10 finance companies

Suzuki Motor Corporation (SMC) increases its stake in Maruti

to 54.2 percent

2001 Zen LXi

Maruti True Value launched in Bangalore and Delhi

Maruti Versa, India’s first luxury MPV

Alto Spin LXi, with electronic power steering

Alto Vxi

Customer information centers launched in Hyderabad,

Bangalore and Chennai

Launch of versa

  2000 First car company in India to launch a Call Center

New Alto

Altura, a luxury estate car

IDTR (Institute of Driving Training and Research) launched

jointly with the Delhi government to promote safe driving habits

  1999 Maruti 800 EX ( 796cc, hatchback car)

Zen LX (993cc, hatchback car)

Zen VXi (993cc, hatchback car with power steering)

Omni XL (796cc, MUV, high roof)

Baleno (1600cc, 3 Box Car)

Wagon R

Launch of Maruti - Suzuki innovative traffic beat in Delhi and

Chennai as social initiatives

1998 Maruti launches website as part of CRM initiatives

Zen D (1527 cc diesel, hatchback car)

Zen VX & Zen VX Automatic

New (Omni & Omni E) (796cc, MUV)

Launch of website as part of CRM initiatives

1997 1998 Esteem (1299cc, 3 box car) LX, VX and AX

New Maruti 800 (796cc,hatchback Car) Standard and Deluxe

Produced the 2 millionth vehicle since the commencement of

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production

1996 Gypsy (E) (970cc, 4WD 8 seater)

Omni (E) (796cc, MUV, 8 seater)

Gypsy King (1298cc, 4WD, off road vehicle)

Zen Automatic (993cc, hatchback car)

Esteem 1.3L (1298 cc, 3 box Car)AX

Launch of 24-hour emergency on-road vehicle service

  1995 Esteem 1.3L (1298 cc, 3 box car)VX

With the launch of second plant, installed capacity reached

200,000 units

1994 Esteem1.3L (1298cc, 3 box car)LX

Produced the 1 millionth vehicle since the commencement of

production

1993 Zen(993cc, hatchback Car), which was later exported in Europe

and elsewhere as the Alto

1992 SMC increases its stake in Maruti to 50 percent

1991 Reaches cumulative indigenisation of 65 percent for all vehicles

produced

1990 Maruti 1,000(970cc, 3 box), India’s first contemporary sedan

1988 Installed capacity increased to 1,00,000 units

1987 Exported first lot of 500 cars to Hungary

1986 Maruti 800 (New Model-796cc, hatchback Car)

Produced 1,00,000 vehicles (cumulative production)

1985 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle)

1984 Omni, a 796cc MUV

Installed capacity reached 40,000 units

1983 Maruti 800, a 796 cc hatchback, India’s first affordable car.

Production was started under JVA

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1982 License and JV agreement signed between Maruti Udyog Ltd.

and SMC of Japan

1981 Maruti Udyog Ltd was incorporated under the provisions of the

Indian Companies Act, 1956

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Awards

  2005

Number one in JD Power SSI for the second consecutive year.

Number one in JD Power CSI for the sixth time in a row - the only car to win.

it so many times.

M800, WagonR and Swift topped their segments in the TNS Total.

Customer Satisfaction Study.

Leadership in the JD Power Initial Quality Study - Alto number one in its

segment for the 2nd time in a row, Esteem number one in its segment for the

3rd year in a row, Swift number one in the premium compact segment.

WagonR and Esteem top their segments in the JD Power APEAL study

TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR) study (#1

in Auto sector)-Feb 05

Maruti bagged the "Manufacturer of the year" award from Autocar-CNBC

(2nd time in a row)-Feb 05

First Indian car manufacturer to reach 5 million vehicles sales

Business World ranks Maruti among top five most respected companies in

India-Oct 04

Maruti ranked among top ten (Rank7) greenest companies

in India by Business Today - Sep '04

2004

Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction

No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal

(Esteem and Wagon R)

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)

Business World ranked us among the country's five most respected companies

Business World ranked us the country's most respected automobile company

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Voted Manufacturer of the year by CNBC

Voted one of India's Greenest Companies by Business Today-AC Nielson

ORG-MARG

2003

Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive

brands in "Most Trusted Brand survey 2003"

J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.

MUL tops in J D Power CSI (2001) for 4th time in a row

2001

MUL tops in J D Power CSI (2001) for 2nd time in a row: another

international first

2000

Maruti bags JD Power CSI - 1st rank; unique achievement by market leader

anywhere in the world

1999

MSM launched as model workshop in India; achieves highest CSI rating.

Central Board of Excise & Customs awards Maruti with "Samman Patra", for

contribution to exchequer and being an ideal tax assessee

1998

CII's Business Excellence Award

1996

Maruti wins INSSAN award for "Excellence in Suggestion Scheme"

Awarded the Star Trading House status by Ministry of Commerce

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1994-95

Engineering Exports Promotion Council's award for export performance

1994

Best Canteen award among Haryana Industries as part of employee welfare

1992-93

Engineering Exports Promotion Council's award for export performance

1991-92

Engineering Exports Promotion Council's award for export performance

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ISO 9001:2000

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International Organization for Standardization(ISO), certified Maruti after a four day long audit, covering varied parameters like Customer Focused organization, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc.In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers.

In October 1993, MUL passed the Conformity Of Production (COP)

Audit, which is based on a European

Union Directive. This authenticated our quality systems and testing facilities

for export to Europe.

The emphasis on total quality has meant that today it is in a position to guide

vendors and dealers in establishing and consolidating their individual quality systems.

This commitment to quality has ensured a consistently satisfying product and world-

class sales and after-sales services.

Employee Quality Measures

Kaizen is based on the concept of making incremental improvements in its

products. It incorporates a series of continuous small and simple improvements,

which aim at involving employees at all levels.

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The Suggestion Scheme is based on the same principle. Under this scheme,

employees are encouraged to make suggestions for improvement in any area of our

operation. Over 50,000 suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest

2003", which is the 6th consecutive award won in as many years. This contest is

organized by Indian National Suggestion Schemes Association (INSSAN). Since 1998

Maruti has won this award 10 times."Quality Circles" are groups of five to eight

members from a particular work area who work as a team to identify priorities and

solve work related problems in the area.

It believe that it is this unwavering commitment to quality that will lead to the

further growth of the organization as competition increases

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WHAT’S NEW

Maruti Leads March with Stellar Performance

Your favourite car company, Maruti Udyog Limited has closed the financial

year 2005-06 with an annual sale of 6,72,122 units, the highest ever since the

company began operations 20 years ago. This annual sale figure includes exports of

71175 units, the highest ever since Maruti began exporting cars in 1988, a growth of

59% over 2004-05. Maruti's annual sale in 2005-06 represents a growth of 30 per cent

over 2004-05. During March 2006, the company sold 52700 units, including 8282

exports. This is the highest ever sale in the domestic market in a month by Maruti.

This is also the highest ever export in a month by the company.

The record sale performance was a fitting end to an eventful year during

which the company's Public Issue was oversubscribed 10 times and became a

landmark for the Indian stock markets and the Government's Divestment programme.

During the year, Maruti earned further customer appreciation, being ranked

FIRST in J D Power Customer Satisfaction Survey for a record fourth year in a row.

The company's WagonR, Zen and Esteem models topped their categories in

the J D Power Initial Quality Study 2005. Quality improvements along the chain,

notably by the company's component suppliers, contributed to this achievement.

Besides, WagonR was ranked FIRST in its category in Total Customer

Satisfaction Survey conducted by NFO Automotive.

The year also saw Maruti make major strides towards its goal of becoming

Suzuki Motor Corporation's R and D hub for Asia outside Japan. It introduced

upgraded versions of WagonR and Zen, the latter completely designed and styled

inhouse.

India's most popular car, Maruti 800, strengthened its leadership with a 17 per

cent growth even as Maruti's partnership with State Bank of India and its Associate

Banks enabled it to reach car finance to smaller towns and cities across the country.

During the year, Maruti consolidated its leadership in the A 2 (premium

compact) segment, with Alto growing by over 130 per cent and finishing as the

country's fastest growing A2 Segment model for the year.

With the launch of Grand Vitara XL-7 during the year, Maruti marked its

entry into the top-end Luxury SUV segment of the Indian car market.

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The record sales performance was ably supported by Maruti's dealerships.

During the year, the company ended its relationship with several non-performing

dealerships and enhanced it with the good performers. The new car sales network

grew from 243 outlets to 280, with coverage expanding from 160 cities to 182.

The dealerships also participated in the expansion of Maruti's new businesses,

including Maruti Insurance, Maruti Finance, Maruti True Value (Pre Owned cars) and

N2N (Corporate Lease and Fleet Management Services). These services made Maruti

vehicles even more attractive for customers.

“Maruti's service network, known for its size and quality, expanded to a

landmark 1000 cities and towns during the year”.

The Maruti-managed Institute of Driving Training and Research in Delhi

made major contribution to safe drivinq which was widely recoqnised. notably by the

Hon'ble Delhi High Court.

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MARUTI PRODUCTS

Maruti Vitara

The Grand Vitara is

handsome and a very capable off-

road vehicle, it is above average at

this end of the market with good

quality fabrics and plastics. It is

equipped with an ergonomic

dashboard and is superbly backlit

with great heating controls. The car has excellent headroom and rear legroom.

However, front passenger foot well has limited legroom. The headrests are difficult to

adjust, especially to get them at the correct height for our heads or necks. It is also

difficult to adjust driver’s seat with the door shut. Don't get me wrong the Suzuki

Grand Vitara has true off road performance, car-like ease to drive and is excellent

value for money. It would go where many a so-called four-wheel drive would falter

without lacking comfort or refinement. The Grand Vitara comes with a security

conscious integrated radio single slot CD player, which is capable and very easy to

use. This machine is a joy to drive and an excellent alternative to the family car.

Maruti Wagon R

The 1061cc MPFI low

friction engine delivers an

awesome 64bhp@6200rpm power

for smoother pick-up and faster

acceleration than other car engines

in this category.

A 16 bit on-board computer

with diagnostic capability monitors engine performance continuously. It checks the

condition of the engine as soon as you turn it on and monitors the air-fuel ratio for

optimum fuel efficiency.

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The 4 valves per cylinder engine configuration gives better fuel economy than

other cars. As per Autocar (May'04) WagonR gives a mileage of 14.15 kmpl as

against 13.3 kmpl by Santro Xing. This has been made possible due to the superior

WagonR engine.

Dual Distributor-less Digital Ignition (DDLI) means an instant, hassle-free

start every time and more efficient power distribution. A flat torque curve ensures

quick pick-up at higher gears and lower rpm. You won't need to change the gears

often. Its not just performance, WagonR also has numerous innovative features.

accordingly, including a new engine. Wagon R is Japan’s top selling model, and it is

to be seen if it’s success can be emulated in India.

Maruti Alto

The hottest little thing is really

a hot cake among the car lovers. Just

get inside and try this cool car. You

will definitely fall in love with it.

Finally your fantasy compact car is

now a reality.

It's unique features make it

distinct from the other cars. The

electronic tachometer helps improve unmatched fuel efficiency. It is also equipped

with a remote controlled fuel lid and trunk opener. A digital trip meter indicated the

miles you have enjoyed riding on this cool car.

It is a highly safe car to drive on Indian roads. High tensile steel side door beams

guard against front, rear and side collision impact. It has room for almost everything

making it a real family car. Put all you want into a low roomy luggage compartment.

It also has more boot space than other cars.

Its seductive lines and stylish curves complement the muscular look. Two pressed

lines on either side give it a distinct character and an unique halogen head lamp make

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it a beauty. The cool interiors of the car include a powerful AC, which is ideal for

India's climate.

Maruti Esteem

Looked at against other cars in the

Indian market in the mid-size segment, the

Esteem seems a bit ordinary. For one, it

definitely needs a new look as it is the replica

of the earlier Maruti 1000 introduced in the

mid-eighties. The Maruti 1000 was

withdrawn as it was an extremely

underpowered vehicle, and no one can deny that the Esteem has a great engine under

its hood.

The fact remains, though, that the design has been around for close to two

decades and a new look could do wonders for the car. This is because the Esteem's

main asset is its engine, which leaves no doubt in anyone's mind that the Japanese

make the best petrol motors on this planet. The all-aluminium engine with its hollow

camshaft, which cuts down rotational inertia, is extremely light and responsive.

The Esteem typifies Suzuki's expertise in using the four-valve-per cylinder,

multi-point fuel-injection combination to create a power machine. The mid-size

Esteem can reach 100 kmph speed from standstill in just 11.4 seconds — quicker than

the Lancer and the Astra.

The power-to-weight ratio of the Esteem is also the most favourable for a mid-

size car. The power steering in the variants is quick and direct with a certain degree of

feel. This is a boon in tight city driving conditions. The gearbox is slick and shifting a

real joy.

The Esteem is available in a large number of variants. New Euro 2 variants of

the Esteem LX, VX and AX are the biggest attraction now. As for the diesel variants

there is the Esteem Di and the base Esteem D version. Then there is the Esteem Vxi

and the Esteem LX Euro 1 version.

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The Euro 2 versions are a definite upgrade on the earlier versions as they come

with 85 bhp against the earlier weaker 57 bhp variants. Among the two diesel

variants, the Di is the top-of-the-line version with power steering, windows, rear

defogger and halogen lamps, to name a few features.

The Vxi version and the Euro 2, VX and AX come well equipped with power

steering and power everything. But the VXI version is a step ahead as it has a rear

defogger, a laminated windshield and a number of extra add-on features such as

protective mouldings on the side.

Maruti Baleno

The Baleno has the looks and feel

of a winner. This was Maruti Udyog's first

D-segment car launched in India to

compete with the Mitsubishi Lancer and

the Honda City. This is also Suzuki's

biggest passenger car and in Japan and

other markets. The Baleno is called the Cultus in Japan.

The Baleno is probably the best-equipped car in the market today. It is

available in two variants — one the base version and the top-end Baleno Altura. Both

are identical in almost every aspect except that the Altura version is bigger and

heavier and is equipped with some standout features like grip assist, which is there

both in the front and the rear, electrically operated A/C louvre switches, a rear

windshield wiper and washer, roof rails, foot rest and luggage hooks.

Other features present in both the models include a rear defogger, third brake

light, trunk lighting, rear safety belts and the very useful 'key-not-removed buzzer.' By

any standards, the car is very spacious and here at last is one car that provides ample

legroom for the rear passengers.

The Baleno's 1.6-litre engine with 16 valves, multi-point-fuel-injection, a

hollow camshaft and distributor-less electronic ignition is a gem. It is a SOHC unit

where all four valves are operated via rockers driven by a single camshaft. It gives

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94bhp at 6,000 rpm and a torque of 13.4kgm at 3,000rpm. The spirit of the car is

bottled in a highly responsive and fuel-efficient 1590cc SOHC engine.

The Baleno is identical to the Honda City in length and width though it is

smaller than the Lancer and the Astra. The Baleno's rectangular, meshed grille stands

out from the bodywork with its chrome border. The bonnet flows smoothly around the

grille area and blends into the bumper.

The Baleno is suspended on a fully-independent set-up, with MacPherson

struts, both front and rear. An anti-roll bar is standard in the front. The suspension is

mounted on a sub-frame, which reduces noise, vibration and harshness levels.

The Baleno reaches 0-100 kmph in 11.13 seconds and a top speed of 180

kmph and gives a mileage of 11.1 kmpl in towns and 15.9 kmpl on highways. The

Baleno is Maruti's first upper-end model to compete with the Opel Astra, the

Mitsubishi Lancer and the Honda City. The Baleno is Suzuki's biggest and most

important passenger car.

Maruti 800

The Maruti 800 is the largest-selling car in India — and with good reason.

This car offers the best value for money

among all Indian cars — combining ease of

driving, good fuel economy and reliability.

Historically, it has the blessings of

the government behind it also. But the car's

low-cost structure remains unmatched. No manufacturer today, maybe not even

Maruti Udyog itself, would be able to make a car like the 800 today, at the same

price. Hence, the cost advantage of the indomitable 800 is the reason behind its

phenomenal success.

The Maruti 800, which enabled millions of urban middle-class families to

become first-generation owners of a four-wheeler because of its affordable price, has

seen several improvements over the years — the main reason why it has stuck around

for so long.

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The latest improvement in the Maruti 800 is the introduction of a multi-point

fuel-injection (MPFI) system to meet new emission norms. The MPFI system is

complemented by a four-valve per-cylinder head and five-speed gearbox giving it a

level of performance very few cars in this segment can match. It is also the most

manoeuvrable car around. It's compact, nimble and the easiest thing to drive in urban

surroundings. Parking is also not a problem for this baby.

For those wanting to save on fuel the Maruti 800 is the answer. The increased power

hasn't changed its fuel efficiency. It gives a highway run of 21.9 kmpl, while in the

city it gives 13.9 kmpl.

Maruti Gypsy

The Maruti Gypsy is India's

version of the Suzuki Jimny, which was at

one time one of the best-selling four-

wheel drives in the world. The Gypsy can

go nearly anywhere, though is not as solid

a workhorse as the Mahindra Jeeps.

But considering its size and

weight, it is tough and can take a lot of battering. As a personal four-wheel-drive car,

it does well as it is refined, better finished and is much easier to drive than any Jeep.

And it is also extremely reliable and, to a large extent, trouble-free.

In India it is available in two Euro 2 variants — the HT and the ST version.

The HT version has features like fabric upholstery and a fibre reinforced plastic top,

while the ST version has a foldable windscreen and a removable canvas top.

Apart from this the two are nearly the same as they both give 80 bhp power @

6000 rpm and come with a 1300cc engine pulled by a torque of 103 Nm @ 4500 rpm.

Maruti Omni

The Maruti Omni Van is

basically a Japanese commercial van that

has been converted with some

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modifications into a passenger vehicle. This is basically an underpowered vehicle

mainly due to its excessive weight.

It is heavier than a car because its body is not aerodynamic. Also due to its

high stance it appears to be slightly unstable. In high-speed crosswinds, the Omni

becomes unstable and shaky because its wheels are small and the centre of gravity

high.

The Omni also has a tendency to pitch and bounce on an uneven terrain. The

ride quality is also not up to regular standards due to the suspension, which appears to

be of leaf spring lineage. However, manoeuvrability is very good for a car of such

dimensions and is far superior to that of the 800. Its turning cycle, too, is better than

the 800s.

In terms of space efficiency, the Omni beats the higher-priced breed of small

cars. The vehicle can accommodate five passengers and stack their luggage easily.

The rear sides offer greater comfort with plenty of legroom and door-to-door carpets.

The sliding doors help in easy entry and exit when in a crowded parking lot.

Maruti Versa

If you are looking out for a station wagon that you can drive to work and also

take out your family and friends for a picnic, you

can safely reach out for the Maruti Versa, a mini-

van with the looks of a car.

The Maruti Versa, unlike the Omni, has a

fairly well-defined snout with a three -groove

grille. The bonnet, the headlights, the black chin

spoiler and the bumper with a huge air-intake capacity give it a sporty look. It is an

incredibly light car. Decked in a conventional van layout, the Versa's engine is

located under the front seats.

Its bonnet houses the radiator and electric fan as well as the AC condenser and

reservoirs for the coolant, washer fluid and brake fluid. The Versa uses disc brakes

for the front and also has a pressure-regulating valve.

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The side panels are tastefully delineated with snazzy graphics, which extend

from the tail lamp to the front door. The car employs the proven and ultra reliable

1298cc four-cylinder SOHC of the Esteem. Maruti engineers have taken special care

to reduce noise, vibrations and harshness levels to acceptable limits. They have also

made appreciable efforts to improve safety features in the car, and the monocque

construction provides a rigid safety cell with side impact bars to protect against

frontal impacts. Firm suspension settings ensure comfort and control.

The Versa's interiors have a familiar Maruti ring. The interiors are tastefully

done with brushed aluminium look, though a substantial borrowing has been made

from the Maruti family parts bin to bring down costs. With a similar dashboard,

steering wheel and instrument panel, there is very little difference between a Versa,

the Alto or a WagonR. But the new SDX version of the Versa has a leather-wrapped

steering wheel and metallic finished dashboard.

The SDX version is a seven-seater, while the base Versa DX and the middle

variant DX2 is an eight-seater. One can slide and recline the front row seats to adjust

space between the first and middle rows. The SDX and DX2 versions of the Versa are

equipped with twin air conditioners — one in front and one at the rear. The rear AC

has independent controls and overhead ducts.

The Versa is probably among the safest cars to drive. Safety features include

side-impact absorbing beams, front-impact beams and a steel pipe frame in the rear

seat. Height adjustable head restraints, brake boosters and a collapsible steering

column are the other safety features.

The Versa boasts of a powerful 16-valve, 1298cc engine generating 82 bhp at

6000 rpm, and controlled by a 16-bit engine management system. The car also

possesses higher power to weight ratio not present in any other MUV. The Versa can

reach 100 kmph from standstill position in just 13.5 seconds.

Maruti Zen

The Zen is based on the 1991

Suzuki Cervo Mode, a Japanese-market-

only model. The Maruti Zen was the first

22

car by Maruti designed for the worldwide market, with India being the only

production hub. The car's design and specifications are contemporary with world

standards.

In essence, the Zen, (sold as Suzuki Alto abroad) which looks like an

extremely well-fed Maruti 800, drives like a dream. It offers more than adequate

performance and is delightful to handle.

The Zen was also the first Indian car to win accolades abroad, being voted the

best car in its category in Belgium and the Netherlands in 1997 in addition to being

the top car in the UK in terms of operating costs in the same year.

Zen was the first car to have all-aluminium engine, electronic distributor

pump, electric fuel pump in the fuel tank, suction resonator and a dash panel of

sandwich construction. Starting from the 993cc engine, developing 50bhp in

carburetted form and 58.5bhp in fuel-injected form, most of the power of the Zen

comes in at the higher reaches of the power band.

The five-speed ultra-slick gearbox in the Zen continues to be one of best

boxes in an Indian car. A collapsible steering column is another safety feature present

in all the variants of the car. The Zen is available in four variants — the LX, VX, VXi

and D. A deluxe model has also just been launched; it boasts of central wood finish

console and suede leather upholstery.

Accessories in the car include, music system, sun visors on both sides, front

and rear assist grip, fabric upholstery, power window and power steering is available

in the VX and Vxi variants.

Safety features in all the variants include: energy absorbing collapsible

steering column, side-impact door beams in front and rear, child-proof locks on rear

doors, rear windshield wiper and washer, central locking and protective mouldings on

side.

23

Maruti Swift

Maruti Udyog, flush with bookings for the

new Swift, will ramp up its production from

200 to 250-260 units per day, starting 19

June. The plant will be shut for a week prior

to that for annual maintenance work.

Launched on May 25 in New Delhi, the Swift has also been launched in

several other cities since then, including Mumbai, Ahmedabad, Hyderabad and

Chennai. With an estimated 20,000 bookings, the car is booked for the coming three

months or so. Meanwhile, the company has already announced an increase in prices

for the car, marking the end of 'introductory pricing' which Maruti's MD, Jagdish

Khattar had alluded to at the launch. As a result, all bookings effective 9 June will be

made at the new retail tags. While the base model LXi's price has been increased by

Rs 8,000, those of the VXi and ZXi have been raised by Rs 10,000 each. Maruti has

said the prices are for fresh bookings and will not impact the estimated 20,000

bookings already received.

The increases in retail price tags, barely two weeks after the launch, will bring

the Swift's price closer to that of its closest competitor, the Hyundai Getz, prices of

which start at around Rs 4.5 lakh. Sources said that while Maruti had indicated that

prices would change, the timing has come as a bit of a surprise, as one would have

expected the introductory pricing to be in force for at least a month. According to

other sources, Maruti had not expected so many bookings, and the company wouldn't

mind the little extra breathing space if some potential customers cancelled their

bookings.

Maruti's sales in the first two months of this fiscal have been down by about

four percent, at an estimated 80,476 units as against 84,050 units in the year-earlier

period. Exports have also fallen by 61 percent in this period. The company's volume

in the domestic A2 segment grew by 23 percent which is inclusive of 2,981 units of

24

the Swift, dispatched during May 2005. In the A3 segment, Maruti's sales grew 48

percent during the month compared to sales in the year-earlier period.

The company has laid the foundation stone of its new plant at Manesar. The

new plant will involve an investment of over Rs 3,200 crore, of which Rs 1,500 crore

will be spent to build a new car assembly plant and Rs 1,748 crore for a diesel engine

manufacturing facility for local consumption and exports.

Maruti 800 Days Are Numbered If…………….

1. The used or second-hand car market in India is

likely to become more organized in future. The car

dealers will themselves deal with used cars. It is

expected that a used second hand Indica, Santo,

Astra or Cielo will be priced close to a new Maruti

800. This could put a question mark on the

prevalent assumption that a large number of

current two-wheeler users in India will graduate to a Maruti 800 in future with

higher incomes.

2. An analysis of the world car market shows that no car company in the world, with

the expectation of the Japanese, has a car in its range, which is directly

comparable to the Maruti 800. Contrary to popular belief, the Ford Fiesta, Opel

Corsa and the VW Golf would compete with Maruti Esteem or Maruti Zen, and

not with Maruti 800. All these cars, though small by Western standards, are high-

power cars which would be priced in India in the luxury range. Given that only

30% of the market is estimated for cars above 1000cc and with so many

companies already in the Indian market, the industry seems to be heading for a

shake out. The firms that would be able to design and properly implement sound

marketing strategies are likely to be the winners.

3. The easy financing schemes are also posing threat to the Maruti because

customers can directly graduate to SEGMENT B without having first time

purchase at Maruti 800. Since car purchase is India is a one time decision and

people will prefer to have one investment that will differ not very highly for better

features.

25

4. Diesel engine cars are also posing a big threat due to their fuel cost differential

since in India people do give a lot of emphasis on fuel efficiency and price do play

an important role in this category. Huge success of INDICA in the sub urban and

rural areas is just an Indicator of the future so Maruti 800 beware India is

slipping out of your hands.

26

Research Methodology

The type decision and specification of a work or taste is as important as its

target and achievement.

The study of aimed to provide the comparative account regarding the Total

models of Maruti cars in the market. I found out the position and condition of selected

models and various things. For this project survey, I made the questionnaire and

collected data from the journals, internet, and magazines.

OBJECTIVE OF THE STUDY

To know the current and future standing of the Maruti Udyog Ltd.

To know the visions and values of the company.

To calculate the market of different brands of Maruti.

To find out the main factor affecting the buying behavior or buying decision

of the consumers.

To know the effectiveness of advertisement of Maruti cars in buying decision

of the customer.

To know the position and segments in which the whole market is divided.

To know the level of consumer satisfaction and the factors affects it.

To know the level of service quality for maruti service center.

Research:

Research can also be defined as scientific and systematic search to time

information for specific topic.

Problem Identification:

Define the problem chosen for investigation such as-:

(a) Analysis of after sales- services

(b) Analysis the level of customer – satisfaction.

(c) Market share of different brands etc.

27

Research design

“Research design is the basic framework which provides guidelines for data

collection and data analysis” the researcher especially pin point that to carryout

research properly.

1) How the data would be collected.

2) Which instrument for data collection would be used?

3) What sampling plan would be used?

The data collection methods are basically of these types- observation,

experimentation and survey. I used the survey method of data collection because in

the Market Research method I can gather a wide range of valuable information on

over behavior of consumer for product.

Sources of information: through Primary & secondary Data.

Primary data: Primary data is that which data collect in new by primary sources.

Questionnaire

I used the survey method frank questionnaire with general face-to-face

interaction of consumers.

Secondary data: these data already exist in the companies magazines.

I collect the secondary data from:-

Magazines

Journals

Internet

Annual Reports

28

Sample size: Sampling plan is to decide the population for study. My total sampling

for research is 100 for different areas of Agra.

Customer Satisfaction

The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any

other car manufacturer in India (J.D. Power IQS Study 2005). The M800 was chosen

No.1 in the premium compact car segment and the Esteem and Swift in the entry level

mid - size car segment across 9 parameters.

The J.D. Power APEAL Study 2005 proclaimed the Wagon R no. 1 in the

premium compact car segment and the Esteem No.1 in the entry level mid - size car

segment. This study measures owner in terms of design, content, layout and

performance of vehicles across 8 parameters.

A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across

189 cities, with a workforce of over 6000 trained sales personnel to guide our

customers in finding the right car. Our high sales and customer care standards led us

to achieve the No.1 nameplate in the J.D. Power SSI Study 2005.

Quality Service across 1036 Cities

In the J.D. Power CSI Study 2005, Maruti Suzuki scored the highest across all

7 parameters: least problems experienced with vehicle serviced, highest service

quality, best in-service experience, best service delivery, best service advisor

experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time

during service. The J.D. Power CSI study 2005 also reveals that 97% of Maruti

Suzuki owners would probably recommend the same make of vehicle, while 90%

owners would probably repurchase the same make of vehicle.

29

One Stop Shop

At Maruti Suzuki, you will find all your car related needs met under one roof.

Whether it is easy finance, insurance, fleet management services, exchange- Maruti

Suzuki is set to provide a single-window solution for all your car related needs.

The Low Cost Maintenance Advantage

The acquisition cost is unfortunately not the only cost you face when buying a

car. Although a car may be affordable to buy, it may not necessarily be affordable to

maintain, as some of its regularly used spare parts may be priced quite steeply. Not so

in the case of a Maruit Suzuki. It is in the economy segment that the affordability of

spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all

models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and

Omni.

We are proud to have the lowest cost of operation/km (among petrol vehicles) - the

top 6 models are all Maruti Suzuki models: Maruti 800, Alto, Swift ,Zen, Omni and

Wagon R.

30

Marketing Research

Marketing managers often commission formal marketing studies of specific

problems & opportunities. They may request a market survey a product preference

that a sales forecast by region or an advertising evaluation.

Marketing research is the systematic design, collection analysis and reporting

of data and findings relevant to a specific marketing situation facing company.

Marketing research as a systematic gathering recording and analyzing of data

about problems relating to marketing of goods and service.

Generally, in India, accuracy and reliability is lacking in most marketing

research investigation. Let us take the example of advertising media like newspaper,

TV. Etc., giving advertisements. Without a clear methodology and objectives

(research design), the researcher cannot adopt a particular track for conducting

research.Zaltman & Burger (1975) define marketing research as the field which

involves the diagnosis of information needs and the selection of relevant interrelated

variables about which valid and reliable information is gathered, recorded and

analyzed.

1. As an economic resource

2. As a system of authority

3. As an activity of marketing management

4. As team effort

5. As an art or science

6. As a profession

7. As an interdisciplinary

A wide range of research activities is covered by the mktg. Research. For our

convenience, we can put these activities in to seven categories viz.

1. Product and service research.

2. Market research.

3. Promotion research

4. Distribution research

31

5. Pricing research

6. Corporate responsibilities research

7. Miscellaneous research

Business executives are becoming increasingly dependent upon marketing

research. The increasing importance of marketing research is based on the following

three trends: -

1. Shift from the local to national and international market.

2. Transition from consumer needs to consumer wants.

3. Shift from price competition to non-price competition.

32

MARKET SEGMENTATION

The Indian automobile market is still in its evolutionary or early growth stage.

Therefore, no fixed or widely accepted method of segmenting the market has evolved

as yet. Segmentation has mostly been done on product types or price ranges. There

has hardly been any kind of segmentation on psychographic or behavioral parameters

as seen in developed car markets. The segmentation provided in this paper is based on

an understanding of the current state of the industry. These segments are quite

different from the segments known in the US, European or Japanese markets. The

following segments based on price and type of car has been identified:

Segment A:

Economy segment, comprising cars priced less than RS 250,000 and in this

category Maruti 800, Maruti Omni and Alto are major players with Maruti 800 as

undisputed market leader.

Segment B:

Mid-size segment, comprising cars in the RS 250,000 and Rs. 450,000 price

bracket, e.g., Maruti Zen, Maruti Alto, Swift, Tata Indica, Matiz, Hyundai Santro

and Fiat Palio are major players.

Segment C:

Premium segment, comprising cars priced at higher than Rs. 450,000-

1,000,000 e.g., Maruti Esteem, Tata Sierra, Peugeot 309, Opel Astra, Cielo, Ford

Escort, Mitsubishi Lancer.

Segment D:

Luxury segment, comprising cars priced at higher than RS. 10,00,000 e.g., Mercedes-Benz, BMW, and Audi.

33

POSITIONING

Since the Indian car market is in a state of flux, the positioning of most

companies in the consumer's mind appears to be confused. However, the companies

have developed image-based positioning strategies for their brands.

Some of them are

Maruti: Small Complete Car with Value for money concept.

General Motors Opel (GM) – German engineering

Daewoo - Family car

Honda - superior engine performance.

Peugeot - sound-free diesel engine

Ford - smooth drive

Indica - more car per car

SUPPLIER

There are about 6,350 small and large component manufacturers in India, out of

which about 350 are in the organized sector and are registered with the Automotive

Components Manufacturers Association. There is a sizeable replacement market for

parts and components, but this market is heavily dominated by manufacturers who

sell unbranded products at very low prices.

ADVERTISING & COMMUNICATION

Advertising in the Indian passenger car industry hardly existed till the onset of

competition. Today however, the industry is one of the highest spenders on

advertising among consumer durables. Advertising has been concentrated to the print

media. The company also recognizes that effective PR exercises would be a critical

component of its marketing efforts in future. Recognizing this now companies are

focusing on lot of competitive advertising in which the features essential or new value

adds are compared extensively. Maruti is on its drive for the big time LEADERSHIP

FACT advertisement campaign working on ten core strengths of Maruti. This

campaign has been extensively launched through out India with Print Media.

34

VISION AND VALUES

VISION

“The leader in the Indian Automobile Industry, creating customer delight

and shareholders’ wealth; A pride of India.”

VALUES

• CUSTOMER OBSESSION

• FAST, FLEXIBLE & FAST MOVER

• INNOVATION AND CREATIVITY

• NETWORKING AND PARTNERSHIP

• OPENNESS AND LEARNING

HR VISION

Lead and Facilitate continuous change towards organizational excellence;

create a learning and vibrant organization with high sense of pride amongst its

members.

CULTURE BUILDING INITIATIVES SINCE INCEPTION

Japanese Management philosophy of Team Spirit

Common uniform

Open office

Common Canteen

Open Office – Easy accessibility, Speedy

Communication and decision making

Morning Meetings

Morning Exercises

TRAINING & DEVELOPMENT

• Annual Training Plan - All Levels

• Topics selected based on Vision, Values & Departmental Feedback of

Company-wide Managers

• Technical Training on latest Technologies abroad at SMC, Japan

Maruti Dealer Network

35

Maruti dealer network is one of its greatest

strengths and it score over many

manufacturers due to this strength only. It

also form part of its communication

strategy by giving advertisement related it

its service centre coverage. “Maruti

service station Hai Kya” This network

give it a give advantage over companies

like FIAT that are ailing from poor service

centre coverage and has to bear huge

losses due to lost sales. The company has

set up a committee of directors to negotiate with the 375-odd vendors on a regular

basis in order to reduce costs and improve productivity, both within and outside the

company. The latest Leadership Fact campaign launched by the Maruti as part of

promotion strategy (copies attached at the end of report) is also laying a lot of

stress upon the service dependability of Maruti supply chain and its service network.

36

MARUTI AUTHORIZED SERVICE STATIONS (MASS)

37

MARUTI AUTHORIZED SERVICE STATIONS (MASS)

A. NICOBAR ANDHRA

PRADESH ARUNACHAL

PRADESH ASSAM BHUTAN BIHAR CHANDIGARH CHATTISGARH DADRA &

NAGAR HAVELI

DELHI GOA GUJRAT HARYANA HIMACHAL

PRADESH JAMMU &

KASHMIR

JHARKHAND KARNATAKA KERALA MADHYA

PRADESH MAHARASHTR

A MIZORAM MEGHALAYA NAGALAND ORISSA PUNJAB RAJASTHAN TAMIL NADU UTTAR

PRADESHo NOIDA

CITY MOTORSC-2 SECTOR 63

AUTO POINTC-107 SECTOR-2

NODIA CAR SCANA-58 SECTOR -16

38

Better Service Quality

Your Maruti is an automotive marvel and the pride of millions of owners. Every component is specially designed to deliver unmatched Performance, safety & Comfort. Be it Maruti Genuine Parts or any part. But no part, no matter how stringently engineered, is designed to last forever. So should the need for replacement ever arise, beware of spurious spares.

These cheap imitations lead to expensive consequences, both to previous lives and machine. Frequently burden your pocket with sleep fuel and maintenance bills. Reduce your prized possession to a piece of junk. You bought stallion. Why get saddled with a mule?

You are guaranteed outstanding performance with Maruti Genuine Parts. Performance that comes from genuine parts, made to the standards of the originals fitted in every new Maruti. These are authenticated by Suzuki Motor Corporation & Maruti Udyog Ltd. Moreover, MPFI vehicles which give you better performance require even better care, especially in terms of usage of Maruti Genuine Parts.

There are two type of service process 1. Directly2. External

39

Post service follow up process

After 3 days information given by

service adviser

After 6 days handle by customer care

executive

Till 60 days the information given to the customer

Dissatisfied register handle by c.c.m follow up pick up or on spot repairing

Customer docket file*Customer complaint *Vehicle history *Job card copy *Letter communication*Customer complaint report *Satisfaction note

If Satisfied, thank you letter is to be send

40

Format -1

INSTANT FEEDBACK CARD PROCESS

41

Format -2

Scan copy

MARUTI SERVICE QUALITY STANDARD CARD

42

43

MARUTI SERVICE QUALITY STANDARD

44

Format-3

CUSTOMER SATISFACTION CARD PROCESS

Thank You for getting your car servicedat out workshop. We would lie to know how we performed. Please spare a few moments to give us your valuable feedback on the following as it will help us in improving our services.

Please put a tick mark(√ ) in the appropriate box.

Excellent Good Average Unacceptable

1. Delivery of vehicle on time.

2. Availability of spare part for the service.

3. How much time is taken to repair the vehicle by our.

4. Behaviors of staff during servicing of vehicle.

5. Ability of staff to understand problem with vehicle.

6. Work done at delivery and details of expenses.

7. Getup of vehicle and its clearness

8. Mode of payment.

9. All the necessary repairs done.

10. What kind of feedback is asked form u after service.

11. Facility of service and maintenance.

12. After service whether the information has been collected form you.

13. What did they informed you after service.

14. Rule of service change.

15. Please described the whole mode of the service

45

center work.

As per your satisfaction would you like to suggest any one about our workshop for the service. Yes No Maybe Never

46

CUSTOMER SATISFACTION SURVEY

In customer satisfaction Maruti Udyog Ltd. is No. 1 from

last 7 yrs. Their current customer satisfaction index is

96.4%. they were trying hard to raise customer satisfaction

index up to 100%.

47

SURVEY

One of the most common and widely used primary

data collection methods is survey. With use of survey, we

can gather a wide range of valuable information on overt

behavior of the consumer, viz, attitudes motive, and

opinions. The earlier two methods (observation and

experiment) are not capable to yield such information. The

primary data, using any of these three above mentioned

method can be collected from any population comprised

any type of respondent group like customers, middlemen,

competitors, salesmen, company employees, etc.

Surveys are best suited for descriptive research.

Companies undertake survey to learn about the people’s

knowledge, belief, preferences, and satisfaction and to

measure there magnitudes in the general population.

48

MARUTI SWOT ANALYSIS

STRENGTH

Early mover Advantage

Established supply chains and dealer networks.

Strong brand names

Good reputation among customers

Cost advantages from Economies of scale.

Muscle power in government policies.

Wider service network.

Better service quality.

WEAKNESS

Lack of in house R&D spending.

Reactive in launching new models

Cost advantage in Maruti 800 segment going

down.

No presence in diesel engine segment which is

gives post purchase fuel economy.

Disinvestment policy ambiguity is playing on

future strategies.

THREAT

Shifts in consumer tastes away from the firm's products.

Emergence of substitute new models by

competitors.

Disinvestment process getting slower and

decreasing efficiency.

49

Maruti 800 sales going down which is star

performer of company till now.

Government decreasing custom duties on second

hand and imported cars.

Tata Indica and Hyundai getting hold in medium

size segment.

OPPORTUNITY

New car can be launched.

Battery Cars with low price.

Disinvestment and Suzuki gaining full control.

Diesel variants of new cars.

Huge installed capacity can be used for exports

from India.

Rural customers can be graduated from scooter to

entry level Maruti 800.

Rising middle class income.

Financing options

Second hand car sales market

Auto parts market

50

SCM STRATEGIES

SCM strategies:

It encompasses all processes from `Mother earth to point of sale'. Seamless flow of material and information is the key for supply chain. This helps in reducing inventory which in turn leads to low costs and increases flexibility, improving price-value offerings. This resulted in reducing the indigenous inventory level at MUL to 2.9 days in1998-99 from nine days in 1995-96.

Material handling and storage:

This is being effectively managed by using recyclable packaging with plastic bins and metal trolleys. This has done away the job of unpacking the supplies at the factory unit. It also aids decentralized unloading near the assembly line and uses gravity conveyors using no electric power or manpower.

Extended enterprise:

MUL developed a long-term relationship with the vendors by looking at them as extended enterprises. It trusted its vendors to the extent of asking them to do self-inspection of parts supplied by them and by not going in for a second quality check at the factory point. This has resulted in minimizing duplication of work and thus avoiding performance of non-value adding activities.

Vendor selection:

Much attention has been paid by MUL in the selection of its vendors as most of them have been identified as OEMs avoiding Tier-I category. This has led to an effective percolation of all SCM practices across the organisation.

Modularization:

This has been the key area of focus for MUL. It encouraged proximity warehousing by locating most vendors near by the factory unit at Gurgaon.

51

Modularization of vendors has helped MUL in addressing the specific problems of a particular set of vendors.

Material transportation:

This is the most tangible form of logistic cost and this has been achieved by a milk-run system. This unique method of pooling supplies of various vendors of one area in a truck has resulted in a drastic cut in this cost. MUL identified the vendors located in a particular area, classified their production pattern and achieved transportation of supplies from them at one go.

Delight customers:

By providing better price-value offering. This can be achieved by re-engineering and re-configuring processes that reduce costs. At Maruti, this has been successfully achieved by adhering to kaizen principles diligently.

E-solution:

The maker of the little car that marked the beginning of a new revolution in the auto sector, this homegrown system was extended to its sales and dealer network through an email-based ordering system with about 250 outlets. For instance, if a dealer has to place an order, he generates it in his own machine with all the specifications (e.g. color, model etc) and sends it through an email to Maruti. The system there automatically checks the order, classifies it accordingly and sends it to the respective database.

52

RECOMMENDATION1. Baleno which has been ranked first should launch

some upper grade variants of this car because it is not

being widely endorsed by upper income group.

2. Esteem and Baleno should taken corrective measures

for technological up gradation, to improve their

performance such as- fuel efficiency, low maintenance

and quality standard up to customer expectation.

3. Non personal tools have an impact in buying criteria

of the customer where luxury car market as whole should

take correct measure to improve their advertisements so

that they may seem nubile, bairy and fun crazy to

influence the decision process of buyers.

4. M800 and Omni are required to take some steps to

improve their looks.

5. Discount scheme has no effect in buying decision in

case of Alto and Esteem hence they should make their

discount scheme attractive survey and customer.

6. Maruti should broaden their sales services, network

and spare parts availability because it is prime criterion of

buying process.

7. Baleno although has been ranked no 1 car it as luxury

car, has unsuccessful to rated customer mind and

perception as far as lack of the car are concerned, hence it

should take measures to give its size and shape new look.

53

LIMITATION OF THE STUDY

1. The educational & awareness level of the

respondents with respect to the questionnaires is

low. Hence they respond one question in

affirmative, but same interrelated question has

been responded in negative.

2. The sample – plan is too small to give the research

a wide coverage with reference to their opinion.

3. Sample–plan is Noida specific. Hence it may show

imbalances of urban elite perceptions.

4. The respondent include those people who has car

(but not a specifically a luxury car) and hence,

their opinion could be based with the lower income

group.

5. The respondents are not interested to reveal their

income level. Causing a hurdle in finding out the

price as a buying decision.

54

FINDING & INTERPRETATION

1. When I surveyed the consumer, then I found that

people below 1,00,000 income group is preferred

32.50% Maruti800, 3.84% Omni and 02.66%

Maruti Zen. Esteem is not preferred by the below

income group.

2. 1,00,000-3,00,000 income group preferred 25.84%

MZen, 40.52% WagonR and 11.52% Alto. in the

above 300000 income group preferred

3.84%baleno, 50.84% Swift, 11.52% WagonR and

7.68% MZen.

3. Newspaper are most affective advertisement mode.

The baleno got 26.88%, city 15.36%, safari

11.52% and Siena 3.84%. In the TV section, only

city got 7.68%. in the magazine effectiveness the

baleno got 3.84%, city in nil, safari 15.36% and

siena 11.52%. only safari got the 3.84 of the survey

report mode of advertisement.

4. In the rate of effectiveness of different sale

promotional activities, in the warranty section,

baleno has 11.52%, city 3.84%, safari 7.68% and

3.84%. in price scheme section,

5. 68% baleno, 3.84%, city, 3.84%safari and 11.52%

Siena. In guarantee section11.52 % baleno, 7.68%

city, 15.36 % safari and 3.84% Siena. In discount

scheme section safari and city got the response.

The percentage is 3.84% city, 3.84% safari.

6. The most satisfying after sale services is Maruti

baleno , after this safari than the city and Siena

7. In the suggestion of other section, I found out that

the Maruti baleno take the lead to his competitors.

8. On the basis of these finding we concluded that the

baleno got the first ranking among its competitors.

55

The reasons behind that the baleno is the Maruti’s

product, after sales services are more satisfying,

easy availability of spare parts, price and looks.

9. The most satisfying better services quality

provided in Maruti service centers.

56

SUMMARY AND CONCLUSION

After analyzing the questionnaire and studying the

facts available in the magazines. I can conclude that there

is no controversy to tell that Maruti Udyog Ltd is still the

undisputed king in cars market to have a market share of

55%. But the times are now coming, consumers

perceptions are also changing at a great pace.

In the market share of 56% of Maruti, there is a

great contribution of Suzuki, when Maruti have no strong

competitor. But trends have changed now.

After coming of Honda and Tata, people have a

good choice due to changing needs and demands of

general people. They bring new concept in cars regularly.

It provides good quality in various aspects.

Age Factor: As being the oldest company Maruti have

56% market share in cars, but if we consider the age factor

we find that other companies improved their position in

four wheeler market.

Class : Maruti have a good market share in lower income

group. Because, the people of this income group have no

choice Maruti800, Maruti Zen, and Alto are the popular

brand in this segment. Because the four wheeler is a

success while the higher income group is considers four

wheeler is a necessary thing to these people but it also

maintain their nature.

The highest income group’s need is different.

Small cars are not a necessity to them. These people

57

prefer, generally costly, good things according to there

prestige.

After sales service:

We all know that the productive and endorsements

of the four wheeler is quite high, so it is difficult to

maintain their quality of after sale services thus it becomes

much more important for the company to have a step head

of its competitor by providing better after sales services.

This can help the company to increase it sales and also to

make a customers brand loyalty.

In four wheeler market after sales services works

as a advertising tool.

58

BIBLIOGRAPHY

In order to prepare my research project report, I

have gone through these books & magazines:

Philip Kotler : Marketing Management

Ramanuj Mazoomdar : Product Management in

India

A & M

News Papers

Business Today.

www.marutiindia.com

www.marutisuzuki.com

www.autocarindia.com

www.marutiudyog.com

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QUESTIONAIRE

NAME:-

……………………………………………………………..

ADDRESS:-

………………………………………………………….

CONTECT

NO………………………………………………………

Q - 1:- Do you have a four wheeler?

(A) YES [

]

(B) NO [

]

Q – 2:- If yes, which company do you have?

(A) Maruti [

]

(B) Tata [

]

(C) Hyundai [ ]

[D] Honda

[ ]

Q – 3:- Specify the print media which influenced you most

in buying it?

(A) NEWSPAPER [

]

(B) TV ADS & MOVIES [

]

(C) OTHERS [ ]

Q – 4:- Which features of four wheeler affected your

buying decision?

60

(A) LOOKS/STYLE [ ]

(B) MAINTENANCE/MILAGE [ ]

(C) PICKUP/POWER [ ]

(D) RE-SALE VALUE [

]

(E) PRICE [

]

(F) AFTER SALES SERVICE [

]

Q –5:- To which income group you belong?

(A) BELOW Rs. 1, 00,000 [ ]

(B) Rs. 1,00,000- 3,00,000 [ ]

(C) Rs. 3,00,000- 700,000 [ ]

(E) Rs. 700,000 - ABOVE [ ]

Q –6:- Are you satisfied with the price of your four

wheeler?

(A) YES [

]

(B) NO [

]

Q –7:- Are you satisfied with its performance?

(A) FULLY SATISFIED [

]

(B) PARTIALLY SATISFIED [

]

(C) UNSATISFIED [

]

Q –8:- Are you satisfied with its after sales services?

61

(A) YES [

]

(B) NO [

]

Q –9:- How will your rank your car features? Please use

the following rating scale.

(A) MILAGE [

]

(B) POWER/PICKUP [

]

(C) PERFORMANCE [

]

(D) LOOKS/STYLE [

]

(E) MONEY VALUE [

]

(F) GOOD WILL [

]

Q -10:- What major problems (Demerits) do you face with

your car?

(A) LOOKS/STYLE [

]

(B) HEADLIGHTS [

]

(C) HORN [

]

(D) SEAT [

]

(E) BREAKING [

]

62

(F) SUSPENSION [

]

Q –11:- Will you advice other to buy a particular brand of

four wheeler?

(A) YES [

]

(B) NO [

]

Q –12:- Are you willing to buy another brand four

wheeler?

(A) YES [

]

(B) NO [

]

Q –13:-Are you satisfied with its services quality?

(A) YES [

]

(B) NO [

]

Q –14:-Lastly, do you need any improvement in your car?

Please give your suggestion.

……………………………………………………………

…………………………….

……………………………………………………………

…………………………..

……………………………………………………………

……………………………………………………………

……………………………………………………………

……………………………………………………………

……………………………………………………………

63

……………………………………………………………

……………………………………………………………

……………………..

64