V On the canvas of the Indian Economy, Auto

Industry occupies a prominent place.

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



V ’he 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.
V á 


V 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, ’oyota, Volkswagen, Daewoo, and
Honda.
m 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.
m Maruti Udyog Limited (MUL) was established
in February 1981
m Maruti rolled out its first car, the Maruti 800,
with an 800 cc engine, in December 1983
m Initially itǮs competitors was the Hindustan
Ambassador and Premier Padmini
m ’his model, targeted at the masses, was
launched as the 'people's car'. ’he car became a
runaway success.
m Various successful models were launched
subsequently
m 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.
m On 17 September 2007, 3    was
rebranded 3    


Indira Jalgaonkar
m Indian experts started search for collaborator
m Negotiated with-’oyota, Nissan, Honda and
Suzuki
m After rounds of negotiation Suzuki was
selected
m With 30:70 Ratio of Suzuki Corporation and
Maruti ltd.
m ’he success of the joint venture led Suzuki to
increase its equity from 26% to 40% in 1987,
and further to 50% in 1992.
m Until recently, 18.28% -owned by the Indian
government, 54.2%-Suzuki of Japan.
m offers 13 models, Maruti 800, Omni, Alto,
Versa, Ritz, Gypsy, A Star, Wagon R, Zen
Estilo, Swift, Swift Dzire, SX4, and Grand
Vitara.
m In India It sells over 730,000 cars and exports-
50,000 cars annually.
m 


m Suzuki Motor Corporation, the parent
company, is a global leader in mini and
compact cars for three decades.
m Suzukiǯs technical superior
m lightweight engine that is clean and fuel
efficient.
m Nearly 75,000 people are employed directly
by Maruti Suzuki and its partners.
m 
 

m Large Indian Market
m Monopolistic trade in the
Indian automobile market
m Availability of resources