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The automobile market is very wide and too the competition. As one of the fastest growing sector
globally with the increase by 26% compare to previous sales, Maruti Suzuki capture 45% of domestic
car market.

Maruti Suzuki has been one of the renowned names in the automobile sector. Maruti Suzuki has come
up with various models with their pricing factor, so it opens option for various people according to their
spending ability. The aim of our project was to find out methods they are using for their business sales
and source of income. Apart from that how they segmenting their customer base and sales pattern, what
trends are followed?

The report has been prepared after screening out the available data through secondary sources as well as
the emphasis was given on the primary sources where we have asked the manager of the showroom to
give details about how their working environment, convert sales and other things that leads to Maruti as
most preferable for customer.













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mndian Automotive mndustry is vibrant and upcoming with global standards of quality, commitment to
delivery and internationally competitive prices. mndia is the right destination for outsourcing of Auto
components. Past few years have seen quantum leap in the mndian Automotive manufacturing sector.
Although figures at the close of the year 2005 are not available with me, as yet, but, based on SmAM
(Society for mndian Automobile Manufacturers) indicators, the year is expected to close with.
TYPE OF VEHm
E MFG. m 2005
(Mm

mO)
____________
PASSEGER ARS 1.70
OMMER mA
VEHm
ES 0.30

mGHT OMMER mA
VEHm
ES 0.20
THREE WHEE
ERS 0.50
TWO WHEE
ERS 9.00

mndia is the 4th largest car market in Asia (after Japan, Korea & hina. For commercial vehicles, it holds
5th spot in the world. Whereas, for 2-wheelers,mndia is the second largest market, next only to hina,
with both countries accounting of over 50% of global two wheeler production and sales. The Tractor
segment is also making steady progress in mndia.

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‘
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2004-05 20,896
2005-06 27,011
2006-07 34,285
2007-08 36,612
2008-09 38,238
mt may be the favorite whipping boy of environmental lobbies, but the automobile industry is
increasingly taking steps to cut down energy consumption and reduce load of greenhouse gases like
O2 while producing vehicles in order to fall in line with principles of sustainable development.

With a target of achieving the best possible manufacturing methods, leading companies like Maruti, Tata
Motors, Honda and Hero Honda have been taking steps to make manufacturing processes clean and
lean. mmportantly, the cut in energy usage comes even as these companies increase production capacity
manifold.

Maruti, the country¶s biggest car manufacturer, has achieved sizeable reduction in energy and water
consumption as part of its µgreen initiatives¶ campaign. Energy consumption at its facilities during 2007-
08 was lower by 26% as compared to energy consumption levels at the beginning of the decade. Maruti,
that has factories at Gurgaon and Manesar in Haryana, has reduced usage of power and water just when
its production capacity is fast moving towards the one million mark.

To achieve ambitious performance target, the mndian Auto omponents mndustry is creating strong
foundations in operational performance to meet global bench marks on cost, delivery, quality, customer
satisfaction, instilling continuous improvement capabilities in technology &productivity, up gradation of

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research capabilities, building a large capability of brain power, a large outlay in using mT, AD and
upgraded Tool Room capabilities. All this is being done in close co-operation with the Govt.,
Technologically advanced customers, outsourced technology partners, Research Organizations, in-house
capabilities, and support from UmDO and A MA.

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½| Rising industrial and agricultural output

½| Rising per capita income
½| Favourable demographic distribution with rising working population & middle class
Urbanization.
½| mncreasing disposable incomes in rural agri-sector
½| Availability of a variety of vehicle models meeting diverse needs and preferences
½| Greater affordability of vehicles
½| Easy finance schemes
½| Favourable government policies
½| Robust production

‘
According the    !"#$ %&! US, dominated the automobile markets around the
globe with no notable competitors. However, after the end of the Second World War in 1945, the
Automobile mndustry of other technologically advanced nations such as Japan and certain European
nations gained momentum and within a very short period, beginning in the early 1980s, the U.S
Automobile mndustry was flooded with foreign automobile companies, especially those of Japan and
Germany.

The current trends of the Global Automobile mndustry reveal that in the developed countries the
Automobile mndustries are stagnating as a result of the drooping whereas car markets the Automobile
mndustry in the developing nations, such as, mndia and Brazil, have been consistently registering higher
growth rates every passing year for their flourishing domestic automobile markets.

‘
 ‘

½| Passenger Vehicles segment in 2010 (April-August), grew at 33.88 percent over same period last
year. Passenger cars grew by 34.32 percent, utility vehicles grew by 22.56 percent and multi
purpose vehicles grew by 50.68 percent in April-August 2010 over same period last year.
½| The overall domestic sale of commercial vehicles segment registered growth of 44.75 percent in
2010 (April-August) as compared to the same period last year. Medium & Heavy ommercial
Vehicles (M&H Vs) registered growth at 65.91 percent and
ight ommercial Vehicles (
Vs)
grew at 29.68 percent.
½| During 2010 (April-August), three wheelers sales recorded a growth rate of 20.15 percent. While
passenger carriers grew by 23.84 percent and goods carriers grew at 5.46 percent in this period.
½| Two wheelers registered a growth rate of 27.22 percent in 2010 (April-August). Scooters,
mopeds and motorcycles grew by 44.45 percent, 24.18 percent and 24.41 percent respectively.

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"(% )"%
Ashok
eyland
Vs, M&H Vs, buses
Asian Motor Works M & H Vs
Bajaj Auto Two and three wheelers
BMW mndia ars and MUVs
Daimler hrysler mndia ars
Eicher Motors
Vs, M & H Vs
Fiat mndia ars
Force Motors MUVs and
Vs
Ford mndia ars and MUVs
General Motors mndia ars & MUVs
Hero Honda Motors Two wheelers
Hindustan Motors ars, MUVs and
Vs
Honda Two wheelers, cars and MUVs
Hyundai Motors ars and MUVs
Kinetic Motor Two wheelers
Mahindra & Mahindra Three wheelers, cars, MUVs,
Vs
Maruti Suzuki ars, MUVs, MPVs
Piaggio Three wheelers,
Vs
Royal Enfield Motors Two wheelers
Skoda Auto mndia ars
Suzuki Motorcycles Two wheelers
Swaraj Mazda
td
Vs, M & H VSs, buses
Tata Motors ars MUVs,
Vs, M&H Vs, buses
Toyota Kirloskar ars, MUVs
TVS Motor o Two wheelers
Volvo mndia M & H Vs, buses
Volkswagen mndia ars
Yamaha Motor mndia Two wheelers

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!!*!+ is mndia¶s number one leading automobile manufacturer and the market leader in the car
segment both in terms of volume of vehicle and revenue earned. Until recently 18.28% of the company
was owned by the mndian government and 54.2% by the Suzuki of Japan. The mndian Govt. held an
initial public offering of 25% of the company in June 2003. As of 10 May 2007 government of mndia
sold its complete share to mndian financial mnstitution. With this govt. Of mndia has no longer stake in
Maruti Udyog.

!&)"&,#$-&%#!./0., though the actual production was

started in 1983 with the Maruti 800 based on the Suzuki Alto Kei ar which at that time was the only
modern car available in mndia. mts only competitor was Hindustan Motor¶s Ambassador and the Premier
Padmini were both around 25 years out of date at that point.Through 2004 , Maruti Suzuki had
produced over 5 Million vehicles. Maruti Suzuki is sold in mndia and various several other countries
depending upon export orders. Models similar to Maruti Suzuki (but not manufactured by Maruti udyog)
are sold by Suzuki Motors corporation and manufactured in Pakistan and other south Asian countries.

The company annually exports more than 50,000 cars and has an extremely large domestic market in
mndia selling over 7, 30,000 cars annually. Maruti 800 till 2004 was the mndia¶s largest selling compact
car ever since it was launched in 1983. More than a Million unit of this car have been sold worldwide so
far. urrently Maruti Suzuki Alto tops the sales chart and Maruti Suzuki Swift is the largest selling car
in A2 segment. Due to large number of Maruti 800¶s sold in the mndian market the term ³Maruti´ is
commonly used to refer to this compact car model. Till recently the term ³Maruti´ in popular mndian
culture in mndia, Hindu¶s lord Hanuman is known as ³Maruti´ was associated with Maruti 800 model.

Maruti Suzuki has been the leader of the mndian car market for over two decades.

mts manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti
Suzuki¶s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities,
launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year


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and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and
Gurgaon facilities have a combined capability to produce over 700,000 units annually.

( " $ %& 12 %,+3   2   ,%-( - "+ !  !22 !$
$&.
More than half the cars sold in mndia are Maruti Suzuki cars. The company is a subsidiary of Suzuki
Motor orporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and
financial institutions. mt is listed on the Bombay Stock Exchange and ational Stock Exchange in mndia.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. mn all, over six
million Maruti Suzuki cars are on mndian roads since the first car was rolled out on 14 December 1983.


 
‘
‘ 

Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift
DZire, SX4, Omni, Eeco, Gypsy, and Grand Vitara. Swift, Swift DZire, A-star and SX4 are
manufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit ( BU),
remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor orporation, the parent company, is a global leader in mini and compact cars for three
decades. Suzuki¶s technical superiority lies in its ability to pack power and performance into a compact,
lightweight engine that is clean and fuel efficient.

early 75,000 people are employed directly by Maruti Suzuki and its partners. mt has been rated first in
customer satisfaction among all car makers in mndia

 
4-$&%-!"#$%&!32%)2!"&$)-%&--$&,$-5 
(& %&.´
Their core values lies in:
½| ustomer obsession
½| Fast, flexible & first mover
½| mnnovation & creativity
½| etworking & partnership
½| Openness & learning

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‘Ã
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Marketing in automobile industries is lot about providing service before the competitors settle down
with cheap & even better alternatives and also before the consumer perceives your product lack desired
features.
Maruti Suzuki has been the leader in the car market. As a specialist of small cars, they have been
changing their marketing pattern according to the customer requirement and situation. Maruti Suzuki
provides few extra services along with dealing in cars.
½| Maruti Authorised Service Station
½| Maruti mnsurance
½| Maruti Finance
½| Maruti True Value
½| Maruti Driving School
½| 2 Fleet Management
½| Maruti Genuine Accessories

The buyer is gaining intelligence day by day, he wants everything from his/her car irrespective of the
price point, today buyer of an entry level car also expects style, more features, safety, mileage and is
also value conscious. He is not ready to compromise on anything. hange that we see is today¶s
consumer is that they don¶t want cheap products they want products which deliver better value
proposition.
 The increasing level of income of urban people, the small cars were not considered to be
luxury item any more.
To gain back its lost share Maruti launched Zen, Alto and WagonR.These small segment car gained huge
response for consumers. Maruti also launched aggressive promotional policy to promote them like
announcing ›%- ,$&26.

2%))7
Pricing strategy helps both its customers and Maruti. Maruti offers a different model just at a price
difference of around Rs. 10,000 for cars ranging between Rs. 3.25 lakhs to Rs. 4.50 lakhs. mt offers five
different cars in this range and different versions/models of each car. Due to so many options, most of
the time customers have an option within their budget or around their budget.

The impressive sales and profits were the result of major efforts within the company. Maruti does that
by working with vendors, assuring them that for every drop in price, volumes will go up. Maruti is now
encouraging its vendors to develop R&D capability for specialized components. Based upon such
activities, product competitiveness in the market will further increase. Maruti also made strides in
applying mT to manufacturing. A new Vehicle Tracking System improved efficiency on the shop floor
and enhanced quality control.

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Maruti Suzuki has had several memorable advertising campaigns. Maruti has always tried to bind
emotional relation with people and their commercials always convey an emotional message to the
customer. They made a slogan 4
!%%! 
Maruti 800 one of the popular campaign says it is a middle class family car that fits to their small budget
and its tag line itself justify it4
-%)!$ 889
Another successful campaign has been the ³$+-"--!%& made for Alto. mt has very
subtle way of telling the people. The advertisement was where a Punjabi family with small son playing
with Maruti toy and car was covering huge distance without adding more fuel to it. mn this commercial
through emotion they tried to show mileage factor of car. This way they have targeted the segment of
market.

#!%,+7

Maruti Suzuki mndia is currently focusing its distribution network to setup stock patio in different parts
of the country to reduce delivery time to customers, while it looks to boost its sales force. Maruti Suzuki
has two state-of-the-art manufacturing facilities in mndia. Both manufacturing facilities have a combined
production capacity of 1,000,000 vehicles annually.

Maruti has around 15000 dealers who are catered to by the sales executives. The orders are collected by
the sales executives and passed on to the nearest depot. The depots are fed by regional warehouses.
These depots maintain a minimum order quantity which is arrived at from the monthly demand forecast.
The material is dispatched from the depot in the name of the dealer. Generally some orders of the same
region are clubbed together and dispatched in trucks. Finally the truck is unloaded and the small orders
of the dealers are dispatched to them. The sales executives are also responsible for the collection of
outstanding.

"%7

The company has been concentrating more on sales promotion than on advertising. Sales promotion can
broadly be divided into two categories:

1.| Scratch cards that are provided with every model. There are a number of gifts and schemes on
the larger packs. oupons and free gifts are offered on packs of more than 10 kgs. The company
also offers a large number of services to the customers to assist them in their buying decisions.
These services are offered on the company¶s website to make it accessible to a very wide range
of customers.
2.| As part of the company¶s policy, huge emphasis is given on trade promotion. The dealers and
contractors who are a part of the distribution chain are given special attention. The most popular
schemes include cash discounts, foreign trips, gifts such as refrigerators etc for dealers who
succeed in meeting or exceeding pre-determined sales targets. The company also organizes
regional dealer meets regularly.

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Maruti ranked highest in customer satisfaction with after-sales service. mt is known for true value,
driving school, authorized service station, insurance (2002), genuine assessories.


‘Ã7
½| Distributor network, brand loyalty, Japan technology and Service distribution
½| After sales service
½| ost-effective
½|
ow maintenance, low price
½| High fuel efficiency
½| Their customer base, market share & reliability.
‘ ‘‘
½|
ow Resale value
½|
ow engine capacity
½| Their brand building. They have built an image from 1983/84 that they provide cheapest,
affordable cars in mndia. So it has become a low cost model. Wonder why SX4 & Vitaras are not
selling?? Ask this question to yourself. mf you have 300 Rupees budget for a pen, will you buy a
Reynolds or a Parker? Maruti is like Reynolds!


½| High end car segment
½| Overseas market
½| mmprove handling
½| Add extra features to small segment cars
½| Attracting youth
½| Export small cars
½| mnfrastructure, network, past performance.

‘ 
½| Fuel price
½| Global manufacturer's presence in mndia.
½| Price high of raw material
½| Small car competition
½| Ever changing customer's taste, purchasing power 

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As part of our project work we have visited 2 showrooms in  R region. One is situated in Gurgaon
and other in Faridabad.
-," &&7

Ã!)%7 Maruti Suzuki ShowroomBusiness Tower, opposite to Audi showroom

Sector 54, Gurgaon (Haryana)

&#&7 T S Maruti, ear eelam cinema mT , Faridabad ( Haryana)

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We found that the hierarchy was same in both the showroom, but in Faridabad there are few things
which in found quite interesting. Which is explained given below: 

$2!2!7Ã!)%

½| General Manager ± 1
½| Sales Manager ± 2
½| Assistant Sales- 4
½| Team
eader ± 4
½| Team apitan ± 6
½| Sales Executive ± 8

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-$%&#&-"% "$&9
 -(2 $ 2
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½| General Manager ± 1
½| Sales Manager ± 2
½| Assistant Sales- 6
½| Team apitan ± 8
½| Sales Executive ± 10

‘ 
ompensation is such a matter that been decided by the company and circulated and followed by all
showrooms. By asking we got to know some facts like:

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They are committed to perform these activities!

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•ew thing which find in •aridabad showroom was :

  
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½| Annual Training Plan - All
evels
½| Training customized to meet Organisational Objectives
½| Topics selected based on Vision, Values & Departmental, Feedback of ompany-wide Managers
½| ompetency Mapping to identify mndividual Training eeds
½| Technical Training on latest Technologies abroad at SM , Japan
½| STROG FO US O TRAmmG mmTmATmVES
| Build a
earning Organisation
| ontinuous Value Additions to Professional Skills
| ustomised Training
| Training to the personnel of Business Partners

‘
‘ 
Ã 
Training held in co-ordination with SM , Japan and AOTS (Assoc. for Overseas Tech.
Scholarship)(covered 1600 employees under the various schemes)
½| 6 months SM Training for Technicians - OJT in SM , Japan (2 batches/yr of 50 each)
½| 9 months Javada Training for Press, Tool & Die Specialists - Design & Maintenance
½| AOTS Managerial Training (4-10weeks) for Manager & above - Managerial Best Practices
½| AOTS Technical Training (3.5 to 6 months) for Supervisors & above - Technological Knowhow
½| R & D Training (2 yrs.) - Research on new Technologies


 ;
‘

Appraisal is the essential function to motivate their employees followed by every Maruti showroom and
company. mt is based on KRAs & targets.
While reward is given on the basis of performance, their productivity & Profit-linked mncentive Schemes

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- mt is globally cost competitive
- Adheres to strict quality controls
- Has access to latest technology.


‘7<
- May serve as sourcing hub for global automobile majors.
- Significant export opportunities may be realized through diversification of export basket.

‘ ‘
- mndustry by and large (baring a few dynamic examples) have low research and development capability,
but, over coming it very fast.
- mndustry is exposed to cyclical downturns in the automotive industry.
- Most component companies are dependent on global majors for technology.


‘ 
<Pressure on prices from OEM¶s continues:
- mmports from FTA Regime ountries, in certain component segments are a threat to local industry.
- Smaller players who do not upgrade to global standards would get extinct.


‘  ‘ 

The automotive industry is one of the largest and most multinational of all industries. mt is a key
indicator of economic growth and a major contributor to the gross domestic product (GDP) of several
Member States and the EU. On a global level, the assets of the top ten multinational automotive
enterprises represent 28% of the assets of the world¶s top 50 companies, 29% of their employment and
30% of their total sales.

To accelerate and sustain growth in the automotive sector, Automotive Mission Plan (AMP) 2006-2016
has been prepared in order to make mndia a global automotive hub. The Automotive Mission Plan (AMP)
2006-2016, aims at doubling the contribution of automotive sector in GDP by taking the turnover to
USD 145 billion and providing additional employment to 25 million people by 2016 with special
emphasis on export of small cars, MUVs, two and three wheelers and auto components.

mn recent times, this industry has been gaining more attention from car manufacturers. An average
automobile manufacturing company spends thousands of dollars on electronic devices for every vehicle.
mncrease in using electronic devices in automobiles is reflected in the form of entertainment systems,
security features and safety devices.

As prices of fuel have increased, there is an increasing need to switch on alternate sources of fuel. Water
is one best source of energy. Researchers have proved that water can run cars. Scientists also claim that
energy extracted from water can be used instead of fuel. Water mixed with normal gasoline is another
alternate solution. Automobile industry is trying hard to discover other technologies for reducing all
these costs.

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