Maruti Suzuki Ltd.

India
A subsidiary of Suzuki- a Japanese automobile and motorbike manufacturer, Maruti Suzuki India
Limited is an Indian automobile manufacturer. It is the most well-known and well-recognised
automobile manufacturer in India. This Indian automobile company is popularly known as Maruti,
which used to be called Maruti Udyog Limited at the time of its inception. Maruti Udyog Limited
was founded by the Government of India in 1981, only to merge with the Japanese automobile
company Suzuki in October 1982. The first manufacturing factory of Maruti was established in
Gurgaon, Haryana, in the same year. Mr. R.C. Bhargava is the chairman of the company and Mr.
Kenichi Ayukawa is the CEO and Managing Director.

About Maruti Suzuki Pvt Ltd.

Maruti Suzuki India Ltd. primarily manufactures cars and has been the most favourite automobile
brand among Indian people since its inception. The company had started in 1982; however, it
commenced the production of automobiles a year later in 1983. The very first model of Maruti,
Maruti Suzuki 800, made its way to Indian roads in December 1983. The very first unit was
bought by Mr. Harpal Singh of Delhi and he was handed over the keys of the car by the then
Prime Minister of India Indira Gandhi. The second in the series was India's first MUV Maruti
Suzuki Omni that was launched in November 1984. The other models that came into market in
subsequent years were Gypsy in 1985, Maruti 1000 in 1990, Zen in 1993, Esteem in 1994,
WagonR in 1999, Swift in 2005, Grand Vitara in 2007, Maruti Suzuki A-Star in 2008, Ritz in 2009,
Eeco in 2009, Alto K10 in 2010, Kizashi in 2011, Ertiga in 2012, Alto 800 in 2012, Stingray in
2013, Celerio in 2013 and Ciaz in 2014.

Maruti Suzuki Production in India

Maruti Suzuki India Ltd. has its manufacturing facilities at two locations in India. The Gurgaon
facility comprises three plants with the annual capacity of manufacturing about 3,50,000 vehicles;
however, it is enabled to manufacture close to 9,00,000 units annually; the credit goes to the
productivity advancements. Around 2,40,000 K-Series engines are also produced at the Gurgaon
facility annually. Maruti 800, WagonR, Alto, Estilo, Gypsy, Omni, Eeco, Ritz and Ertiga are
manufactured at the Gurgaon facility.
Inaugurated in 2007, the Maruti Suzuki India Ltd. Manesar facility is spread over an area of
around 600 acres. The Manesar facility was initially capable of manufacturing 1,00,000 units a
year; however, later, in October 2008, the productivity increased to 3,00,000 vehicles annually.
The production capacity of the Manesar facility eventually increased to 8,00,000 vehicles. Maruti
Suzuki Celerio, A-Star, Ritz, Swift, SX4 and Swift Dzire are manufactured at the Manesar facility.
Maruti Suzuki India is planning to set up its third manufacturing facility in Ahmedabad, Gujarat,
soon over an area of 600 acres.

Maruti Suzuki models on road

 Maruti Suzuki Omni
 Maruti Suzuki Alto
 Maruti Suzuki Gypsy
 Maruti Suzuki Wagon- R
 Maruti Suzuki Vitara
 Maruti Suzuki Swift
 Maruti Suzuki Swift Dzire
 Maruti Suzuki Ciaz
 Maruti Suzuki Stingray
 Maruti Suzuki Ertiga
 Maruti Suzuki Eeco
 Maruti Suzuki Ritz

Maruti Suzuki SWOT Analysis

Strengths
Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of
Maruti Suzuki. Strengths are:
1. Maruti Suzuki is the largest passenger car company in India, accounting for around
45% market share
2. Over 12,000 people are employed with Maruti
3. Good advertising, product portfolio, self-competing brands
4. Largest distribution network of dealers and after sales service centres
5. Strong brand value and strong presence in the second hand car market
6. Having different revenue streams like Maruti finance, Maruti Insurance and Maruti
driving schools
7. Over 700,000 units sold in India annually including 50,000 exports
8. Maruti Suzuki launched NEXA showrooms to cater to its premium cars market
9. The company has been recognized by several awards in the automobile segment in
India

Weaknesse
Here are the weaknesses in the Maruti Suzuki SWOT Analysis:
1. Inability to penetrate into the international market
2. Employee management, strikes, worker wage problems have affected Maruti's brand
image in the past

Opportunities
Following are the Opportunities in Maruti Suzuki SWOT Analysis:
1. Developing hybrid cars and fuel efficient cars for the future can be an opportunity
for Maruti Suzuki
2. Maruti can target tapping emerging markets across the world and building a global
brand
3. Fast growing automobile market and increased purchasing power

Threats
The threats in the SWOT Analysis of Maruti Suzuki are as mentioned:
1. Government policies for the automobile sector across the world
2. Ever increasing fuel prices
3. Intense competition from global automobile brands and cheaper brands can
hurt Maruti Suzuki's business
4. Substitute modes of public transport like buses, metro trains etc

Maruti Suzuki PESTEL analysis

Political Factors
Employment

New development and demand for more skilled labours

High skill job seekers may find it easy to get a job

Taxation and Labour Law

Increasing changes in the Taxes and increased regulation in labour law

Due to increase tax, the company had to increase the product price and it needs
effective labour law

E commerce

The Company opening up online purchasing opportunities

Better chance for increase business and customer satisfaction

Terrorism

Increase in number of terrorism in recent years

Affects the market growth and the economy of the company

Conclusion: The political factor plays a vital role in the success of the organization.
The political factor are the external issues which affect the growth of the
organization. Factors like new government taxing and terrorism will have a drastic
effect on growth of the organization.

Economical Factors
Oil Price

High import and export rate

It causes increase in the product price

Currency & Tax

Change in the exchange rate.

Reducing Tax rates

Due to constant change in the currency exchange rates, tax rates and the duty rates
keeps changing.

Economy

High economic growth rate

It influence and raise the demand and purchasing power.

Interest and Inflation Rates

Interest and Inflation rates are forecast to increase

High interest and inflation rates will have a negative impact on organization growth

Conclusion: High economic growth may increase the buying power of the people,
but the ever increasing oil price will have an impact on the export and import of
product along with problems caused by varying currency exchange rate.

Social Factors
Population

Second most in population

Skilled labour, among the lowest in the world

Brand value

Company has strong and well known brand name

It attracts people easily

Cricket World Cup, IPL etc

Increase in tourism.
Good opportunity for marketing and for the business to boom

Conclusion: Huge population and ongoing Cricket world cup provides an excellent
opportunity for business development and having a brand value is an added
advantage.

Technological Factors
Technology

About 600,000 engineers pass out each year

Enough man power for new development and innovation

Secure online transaction

Purchase and payment can be done in a secure way.

It will be easy for vendors, customers etc to buy and to make payments

Modernisation

Emergence of Indian automobile market as a major hub for auto manufacturing and
research

More contribution to GDP, more profit, and brand value

Conclusion: Technological changes such as cutting edge design, eco friendly

infrastructure and online security will be beneficial for both the company and the
customers.

Environmental Factors
Pollution

Industry follows international standards on emission and safety

More support from government.

Waste Management

Following industry norms

One of the highlights of the Organization

Conclusion: More efficient and eco friendly changes needs to be done regarding
pollution control, but at the same time maintaining industry norms is the highlights
of the company.

Legal Factors
International Trade

Company imports and exports products from different countries and also does
business in many countries

Different trade law in each country may affect the business.

High import duty has to be paid.

Government laws

The company has to follow different rules in different countries to run business

Some laws in certain countries may affect the business

Deregulation/ Privatisation

Increased regulation and privatisation of the industry

It’s an added advantage as it will give more growth opportunities on economic and
technological front