Maruti Suzuki India Ltd

History of Maruti Suzuki India

Maruti Suzuki India Limited (MSIL) is primarily engaged in the sale of passenger vehicles. Its previous name was Maruti Udyog Limited, and the government of India and Suzuki Motor Corporation formed the joint venture in February 1981. MSIL came up with an IPO in 2003 and got listed on the BSE and NSE. In 2007, the company’s name was changed to MSIL from Maruti Udyog Limited. Suzuki Motor Corporation owns a significant stake of 56.2%, making MSIL a wholly-owned subsidiary. The company started its journey with the iconic Maruti 800 car and extended its portfolio to 16 car models with over 150 variants. The company's product range revolves around entry-level small cars like the Alto 800, Alto K10, and luxury sedan Ciaz. The Company has two state-of-the-art manufacturing facilities located in Gurugram and Manesar in Haryana, capable of producing ~1.5 million units per annum. The company's other business activities include the facilitation of pre-owned car sales fleet management and car financing. Its manufacturing facilities are in Gurgaon and Manesar in Haryana and a state-of-the-art R&D centre in Rohtak, Haryana. In 2017, the company was selected as Automobile Manufacturer of the Year at BTVi’s “The Auto Show - Car India & Bike India Awards 2017.” In addition, it won the Business World International Business Awards 2012 (Exports Auto and Engineering Category).

Maruti Suzuki India Business Segments

1. Maruti Suzuki Arena: The segment deals with numerous products under different categories, such as Hatchbacks, Sedans, MUVs/SUVs, Vans, and S-CNG,
2. Nexa Cars: It is a premium sales channel targeted at new customer segments, offering a global buying experience, innovative technology, and enhanced hospitality. The company added 50 NEXA sales outlets in FY 2023, further strengthening its competitive advantage in spite of a strong network presence in urban markets.
3. True Value: The segment earns revenue from pre-owned cars. The company entered the pre-owned car market in 2001, and the business has grown in size and stature since the start of the business.
4. Commercial: Under this segment, the company has products like Super Carry and EECO Cargo under the goods carrier category. In addition, the company also provides passenger cars like Tour H1, Tour H3, Tour S, etc.

Maruti Suzuki India Management Team

• Hisashi Takeuchi, Managing Director & CEO

Hisashi Takeuchi is the Managing Director and Chief Executive Officer of MSIL, appointed to the position effective April 01, 2022. In 1986, Mr. Takeuchi started working at Suzuki Motor Corporation (SMC). He has served as Joint Managing Director (Commercial) of Maruti Suzuki since April 2021 and has extensive experience in international operations at SMC as well as in foreign markets. He has been a member of the board since July 2019.

Maruti Suzuki India Management Outlook

• The construction of a new manufacturing facility in Kharkhoda, Haryana, has started to expand production capacity. This plant has a capacity of 2,50,000 vehicles per annum and is likely to be commissioned in 2025.
• The company is optimistic about the long-term growth potential of the Indian passenger vehicle industry, as automobile demand has a high correlation with economic growth.

Maruti Suzuki India SWOT Analysis

Strengths

• Encouraging market share.
• Disciplined cost optimisation.

Weaknesses

• Delay in EV segment.
• Poor R&D Spend.

Opportunities

• Global presence.
• Rising household income.

Threats

• Semiconductor shortage.
• Rising fuel prices.