Maruti Suzuki Company History

 Maruti Suzuki Company History

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company accounting for over 50 per cent of the domestic car market. The company offers full range of cars from entry level Maruti Alto to stylish hatchback Ritz A-star Swift Wagon R Estillo and sedans DZire SX4 and Sports Utility vehicle Grand Vitara. The company is a subsidiary of Suzuki Motor Corporation of Japan. The Japanese car major held 56.21% stake in Maruti Suzuki as on 31 December 2017.The company is engaged in the business of manufacturing purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the company include facilitation of pre-owned car sales fleet management and car financing. They have four plants three located at Palam Gurgaon Road Gurgaon Haryana and one located at Manesar Industrial Town Gurgaon Haryana. The company has nine subsidiary companies namely Maruti Insurance Business Agency Ltd Maruti Insurance Distribution Services Ltd Maruti Insurance Agency Solutions Ltd Maruti Insurance Agency Network Ltd Maruti Insurance Agency Services Ltd Maruti Insurance Agency Logistics Ltd True Value Solutions Ltd Maruti Insurance Broker Ltd and J J Impex (Delhi) Pvt Ltd. Maruti Suzuki India Ltd was incorporated on February 24 1981 with the name Maruti Udyog Ltd. The company was formed as a government company with Suzuki as a minor partner to make a people's car for middle class India. Over the years the company's product range has widened ownership has changed hands and the customer has evolved. In October 2 1982 the company signed the license and joint venture agreement with Suzuki Motor Corporation Japan. In the year 1983 the company started their productions and launched Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year they launched Maruti Gypsy in the market. In the year 1987 the company forayed into the foreign market by exporting first lot of 500 cars to Hungary. In the year 1990 the company launched India's first three-box car Sedan. In the year 1992 Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.In the year 1995 the company commenced their second plant. In the year 1997 they started Maruti Service Master as model workshop in India to look after sales services. In the year 1999 the third plant with new press paint and assembly shops became operational. In the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki Motor Corporation increased their stake in the company to 54.2%. In January 2002 the company introduced 10 finance companies (8 + 2JVs) in Mumbai. Also they found one new business segment Maruti True Value for sales purchase and trade of pre-owned cars in India. In the year 2005 the company launched the first world strategic model from Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006 they launched WaganR Duo with LPG and also the New Zen Estillo. During the year 2006-07 the company commenced operations in the new car plant and the diesel engine facility at Manesar Haryana. In November 2006 they inaugurated a new institute of Driving Training and Research (IDTR) which was set up as a collaborative project with Delhi Government at Sarai Kale Khan in South Delhi. During the year 2007-08 the company signed an agreement with the Adani group for exporting 200000 units annually through the Mundra port in Gujarat. They launched Swift Diesel and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year. In July 2007 the company launched the new Grand Vitara a stylish muscular and 5-seater in the MUV segment. The company changed its name from Maruti Udyog Ltd to Maruti Suzuki India Ltd with effect from September 17 2007.During the year the company entered into a joint venture agreement with Magneti Marelli Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for manufacturing Electric Control Units. Also they entered into another joint venture agreement with Futaba Industrial Co Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust Systems Components.During the year the company signed pact with Shriram City Union Finance Ltd a part of Shriram Group Chennai to offer easy transparent and hassle-free car finance to its customers particularly in semi urban and rural markets. The agreement is a joint initiative of the two companies for providing competitive car finance to people in Tier-II and Tier-III cities across the country. During the year 2008-09 the company launched a new A2 segment car branded the A-star in India and in Europe as the new Alto. They raised their production capacity to a landmark 1 million cars. In June 2008 the company launched Maruti 800 Duo which is a dual fuel (LPG-cum- petrol) model car.In April 2009 the company revealed new Ritz K12M engine at Gurgaon plant. During the year 2009-10 the company raised the capacity of their next generation K-series engine plant to more than 500000 units per annum. They started work on an additional plant of 250000 cars per annum capacity at Manesar. The company launched their fifth world strategic model the Ritz. They also came out with the spacious multi purpose van Eeco and the all new WagonR with a K-series engine. During the year 2010-11 the company launched refreshed variants of WagonR and Alto with the new K-series engines. SX4 was offered with a Super Turbo Diesel engine. The Company launched the Suzuki Kizashi India's first sports luxury sedan. It sports a 2.4 litre engine and is endowed with best-in-class features. The company developed in-house i-GPI (Integrated Gas Port Injection) Technology and launched factory-fitted CNG variants for five of its models: Alto WagonR Eeco Estilo and SX4.During the year 2011-12 the company started the work to commission another diesel engine plant of 300000 annual capacity in Gurgaon. At the 2012 Delhi Auto Expo the Company unveiled the Ertiga - Life Utility Vehicle. The global premiere of Ertiga marks the entry of the company in the UV segment which will help further strengthen its leadership position in the industry. The company also showcased the XA-Alpha a concept compact SUV.During the year 2012-13 the company started the work on the Gujarat site. During this period Suzuki Japan decided that India will now be responsible for the export markets of Africa the Middle East and its neighbouring countries. The company has to ensure adequate sales and marketing arrangements in these countries with the help of Japan. It also has to determine the products to be manufactured for these markets and if necessary establish assembly plants overseas. This decision will greatly help the growth of its exports.In 2014-15 Maruti launched a successful sedan Ciaz model cars. The S-Cross creates a new market segment which combines the comfort and luxury of a sedan with the power and styling of an SUV. Both these products have been enriched with a number of premium features and enhanced performance levels. In January this year the Hon'ble Chief Minister of Gujarat laid the foundation stone of the Gujarat plant. During the year 2015-16 two new products introduced by the company namely the Baleno and the Brezza exceeded its expectations of demand and both cars had a waiting period of 6-7 months. On 4 October 2016 Maruti Suzuki announced that its premium hatchback Baleno has crossed cumulative domestic sale of one lakh units. On 18 May 2016 Maruti Suzuki announced the launch of an updated version of its small car Alto 800 with more attractive front design fresh interiors vibrant colours higher fuel efficiency and new features. On 27 May 2016 Maruti Suzuki announced that it will proactively and voluntarily recall 75419 Baleno cars (petrol and diesel) manufactured between 3 August 2015 and 17 May 2016 to upgrade the airbag controller software. Of these 15995 Baleno diesel cars manufactured between 3 August 2015 and 22 March 2016 will also be attended to for inspection and replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17231 units of exports. In addition 1961 DZire diesel cars (only AGS variant) will be attended to for inspection and replacement of a faulty fuel filter.On 27 May 2016 Maruti Suzuki announced that it had begun exports of its Light Commercial Vehicle Super Carry to South Africa and Tanzania. At that time the company said that it also plans to export the vehicle to SAARC nations in due course. On 6 July 2016 Maruti Suzuki announced that its popular premium mid-size sedan Ciaz has crossed one lakh cumulative sales mark in the domestic market. The car was lunched in October 2014. On 28 July 2016 Maruti Suzuki announced that its premium retail showroom under the NEXA brand has completed one year of operations. At that time the company said that NEXA is expected to contribute 15% of its sales by 2020. Maruti Suzuki announced increase in prices of select models ranging from Rs 1500 to Rs 5000 (Ex-showroom Delhi) with effect from 1 August 2016. It also announced increase in price by up to Rs 20000 for Vitara Brezza and up to Rs 10000 for Baleno. The company attributed the price hike to factors like segment wise demand foreign exchange movements and strategic objectives of the company. On 12 August 2016 Maruti Suzuki announced that the cumulative enrollment at its various driving training facilities has touched a record 3 million since it started driving training in the year 2000. On 30 August 2016 Maruti Suzuki announced the launch of limited edition of its most popular hatchback Swift as Swift Deca. On 1 September 2016 Maruti Suzuki announced the launch of its first light commercial vehicle (LCV) Super Carry in the domestic market. The company has invested about Rs 300 crore towards the development of the Super Carry. On 15 September 2016 Maruti Suzuki announced that it has signed a Memorandum of Understanding (MoU) with Uber India to train over 30000 individuals/Uber partner-drivers in safe driving over a period of 3 years. On 23 September 2016 Maruti Suzuki announced that it has attained cumulative exports of 15 lakh vehicles. These vehicles have been exported to over 100 countries including Europe Latin America and Africa.On 15 November 2016 Maruti Suzuki announced that it will set up a first-of-its-kind Industrial Training Institute in Mehsana Gujarat. On 25 November 2016 Maruti Suzuki announced the launch of limited edition of its small car Wagon R as Wagon R Felicity with an array of new features. On 9 December 2016 Maruti Suzuki India signed a Memorandum of Understanding (MoU) with Ola the online cab aggregator to train aspiring Ola driver-partners. The company said that its partnership with Ola will create entrepreneurship opportunities for aspiring Ola drivers-partners.On 13 January 2017 Maruti Suzuki India announced the launch of IGNIS its premium urban compact vehicle for the millennials. The company alongwith its suppliers has invested over Rs 950 crore towards the development of IGNIS. IGNIS has 98.5% localization.On 27 January 2017 Maruti Suzuki announced the launch of a new VXi+ variant of its small car WagonR with a wide array of new features including Projector headlamps stylish front grill alloy wheels and side skirts Dual Airbags Anti-Lock braking System with Electronic brake - force distribution system as optional. Maruti Suzuki announced a price hike ranging from Rs 1500 to Rs 8014 (Ex-showroom Delhi) across models with effect from 27 January 2017 due to increase in commodity transportation and administrative costs. On 30 January 2017 Maruti Suzuki inaugurated its 200th premium retail showroom NEXA in the country at Hyderabad. At that time the company said that NEXA is now present in 121 cities and had already sold over 1.85 lakh vehicles since its inception. On 15 February 2017 Maruti Suzuki announced the launch of limited edition of its compact multi purpose vehicle Ertiga. On 20 February 2017 Maruti Suzuki announced that its two Smart Hybrid vehicles viz. Ciaz SHVS and Ertiga SHVS have crossed cumulative sales of 1 lakh units. Smart Hybrid Vehicle by Suzuki (SHVS) is a technology which uses an integrated starter generator and an advanced high capacity battery to supplement the engine's power. SHVS technology makes it more efficient than the conventional set-up and saves energy while decelerating/braking.On 2 March 2017 Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza crossed one lakh cumulative sales milestone in the domestic market. On 27 March 2017 Maruti Suzuki announced that its popular urban sports utility vehicle Vitara Brezza has clocked sales of over 1.1 lakh units in the first year of its launch.On 31 March 2017 Maruti Suzuki announced that its popular midsize sedan Ciaz will be sold exclusively through its premium retail outlets NEXA from 1 April 2017. On 16 May 2017 Maruti Suzuki announced the launch of updated version of its sedan Dzire. On 25 May 2017 Maruti Suzuki announced that it has decided to set up automobile skill enhancement centres across 15 government-run Industrial Training Institutes (ITIs) across 11 states over a period of three months. On 1 July 2017 Maruti Suzuki announced that it has passed on the entire benefit of the goods and services tax (GST) rates on vehicles to its customers and as a result the ex-showroom prices of Maruti Suzuki models were cut by upto 3% with effect from 1 July 2017. However owing to withdrawal of tax concessions on mild hybrid vehicles the price of Smart Hybrid Ciaz Diesel model and Smart Hybrid Ertiga Diesel has increased. On 7 July 2017 Maruti Suzuki announced that the National Company Law Tribunal (NCLT) has approved the scheme of amalgamation of Maruti Suzuki India Limited and seven of its wholly owned subsidiary companies viz. Maruti Insurance Business Agency Limited Maruti Insurance Distribution Services Limited Maruti Insurance Agency Network Limited Maruti Insurance Agency Solutions Limited Maruti Insurance Agency Services Limited Maruti Insurance Agency Logistics Limited and Maruti Insurance Broker Limited.On 3 August 2017 Maruti Suzuki announced the introduction of auto gear shift option in its top-end Alpha variant of its premium urban compact vehicle IGNIS. On 10 August 2017 Maruti Suzuki announced a complete revamp of its True Value operations designed to make pre-owned cars more attractive and transparent to customers.On 30 August 2017 Maruti Suzuki announced transformation of its retail network across India. The new showrooms christened Maruti Suzuki ARENA will sport modern looks and offer a warm friendly and comfortable environment to the customers. On 29 September 2017 Maruti Suzuki announced the launch of parent Suzuki Motor Corporation's global ECSTAR brand of lubricants coolants and car care products in India. On 1 October 2017 Maruti Suzuki announced the launch of new version of its premium urban offering S-Cross. Maruti further said at that time that it has sold over 53000 units of S-Cross in the domestic market and exported over 4600 units since its launch in August 2015. On 5 October 2017 Maruti Suzuki announced the launch of a refreshed version of its compact car Celerio. Maruti further said at that time that Celerio has achieved the three-lakh sales mark within a short span of less than four years. On 1 December 2017 Maruti Suzuki announced the launch of the bold sporty and trendy CelerioX compact car. The model is an extension of Maruti's Celerio compact car. On 27 December 2017 Maruti Suzuki announced that it has entered into an agreement with the Government of NCT of Delhi to set up state-of-the-art Automated Driving Test Centres across 12 locations in the city. The company will invest approximately Rs 15 crore for setting up the driving test centres. While Maruti Suzuki will set up the centres and maintain them for three years the Transport Department will conduct the tests and issue driving licenses to eligible applicants.Maruti Suzuki announced price increase ranging from Rs 1700 to Rs 17000 (Ex-Showroom - Delhi) across models with effect from 10 January 2018 owing to increase in commodity and other administrative and distribution costs.At the time of approval of Q3 December 2017 results on 25 January 2018 the Board of Directors of Maruti Suzuki discussed and approved a revision in the method of calculating royalty payment to Japanese parent Suzuki Motor Corporation that would result in lower royalty payments for Maruti Suzuki for new model agreements starting the Ignis. This would be implemented after approval by the Board of Suzuki Motor Corporation.On 7 February 2018 Maruti Suzuki showcased new compact car ConceptFutureS at Delhi Auto Expo 2018 in New Delhi. On 8 February 2018 Maruti Suzuki announced the launch of an updated version of its premium hatchback Swift at Auto Expo 2018 in New Delhi. The all-new Swift comes offers the acclaimed auto gear shift technology for the convenience of customers. Built on Suzuki's innovative 5th generation HEARTECT platform the all-new Swift has a superior power to weight ratio with an improved acceleration performance.