MARUTI SUZUKI JOINT VENTURE

An Introduction

On the canvas of the Indian Economy, Auto Industry occupies a prominent place.

Due to its deep forward and backward linkages with several key segments of the economy, automotive industry has a strong multiplier effect and is capable of being the driver of economic growth.

A sound transportation system plays an important role in the country's rapid economic and industrial development.

The Passenger Car Market

Pre-liberalization:The Indian passenger car market was characterized

by Government protection for a period of over four decades after independence. Prior to the 1990s, there was little choice for the Indian consumer as there were only a few major automobile manufacturers like Hindustan Motors, Premier Automobiles, and Maruti Udyog Limited.

Post-liberalization:Liberalization of the Indian economy in 1991 and de-

licensing of the passenger car industry in 1993 paved way for the entry of global players like Hyundai, Ford, General Motors, Toyota, Volkswagen, Daewoo, and Honda.

Early History

In the early 1980s, the Indian Government decided to produce a small car, which would be within the buying reach of the Indian middle class.

Maruti Udyog Limited (MUL) was established in February 1981

Maruti rolled out its first car, the Maruti 800, with an 800 cc engine, in December 1983

Initially it‘s competitors was the Hindustan Ambassador and Premier Padmini

This model, targeted at the masses, was launched as the 'people's car'. The car became a runaway success.

Various successful models were launched subsequently

Suzuki Motor Corporation and the government reached an agreement under which Maruti Suzuki Automobile was floated as a 70:30 joint venture company between Maruti Udyog and Suzuki Motor Corporation.

On 17 September 2007, Maruti Udyog was rebranded Maruti Suzuki India Limited.

Indira Jalgaonkar

JOINT VENTURE

Indian experts started search for collaborator

Negotiated with-Toyota, Nissan, Honda and Suzuki

After rounds of negotiation Suzuki was selected

With 30:70 Ratio of Suzuki Corporation and Maruti ltd.

The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992.

Until recently, 18.28% -owned by the Indian government, 54.2%-Suzuki of Japan.

offers 13 models, Maruti 800, Omni, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara.

In India It sells over 730,000 cars and exports-50,000 cars annually.

BENEFITS OF JOINT VENTURE

For Maruti Suzuki Motor Corporation, the parent

company, is a global leader in mini and compact cars for three decades.

Suzuki’s technical superior lightweight engine that is clean and

fuel efficient. Nearly 75,000 people are employed

directly by Maruti Suzuki and its partners.

For Suzuki Large Indian Market Monopolistic trade in the

Indian automobile market Availability of resources

SALES & PAT

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