Company Analysis - Maruti Suzuki introduction company during covid falling demand pre-covid Future plans Technological plans HR plans other plans upcoming launches

1. Maruti Suzuki
Future Plans
PRESENTED BY
JOYDEEP SINGH 191103 KANIKA GOYAL 191104
KOMAL BANSAL 191105 SANDEEP SHARMA 191125

2. DURING COVID
 The lockdown from the 25th March 2020 led to disruption of the sale plans
of all companies as the last week of March is always important.
 There could be no production in April and in May 2020 production was
very limited extent because of the need to comply with all regulations and
to ensure the safety of employees and customers.
 Lockdown put significant pressure on cash flows of suppliers and dealers.
The Company provided them with cash flow support to ensure that they
are able to pay salaries to their employees and meet other obligations.
 The plan to shift the Gurugram facility has had to be delayed because of
the COVID-19 pandemic.

3. DURING COVID
 It helped a small start-up company Agva
Healthcare to scale-up production volumes. With
support from a vendor, Motherson Sumi, reached
a production of 400 ventilators a day by the end of
April.
 Bharat Seats Limited, a joint venture of MSIL, to
manufacture protective clothing

4. DURING COVID
 Delivered over 120,000 cooked meals in the last
three weeks, while more than 10,000 dry ration kits
have been distributed to community members
through local administration and the Indian Red
Cross Society.
 Krishna Maruti Limited, a joint venture of MSIL
manufactured over 2 million 3-ply masks for
supply to the Haryana and Central governments.

5. COMPANY’S ANALYSIS OF FALLING
DEMAND PRE-COVID
 The sale of cars in the country fell by 18% compared to the previous year.
Your Company’s sales also dropped by 16%. The profits after tax were
lower by 25%.
 The major challenge before your Company in FY 2019-20 was to meet the
requirement of transiting all products to meet BS-VI standards before 31st
March 2020.
 14 models were made BS-VI compliant and introduced to the market in a
phased manner. The first BS-VI model was introduced in the month of
April 2019 itself.
 BS-VI was not the only regulatory compliance required. Safety regulations
had also been enhanced

6. COMPANY’S ANALYSIS OF FALLING
DEMAND PRE-COVID
 Enhancements of emission and safety regulations resulted in a significant
increase in the cost of production of cars.
 Several State governments also decided to substantially increase the rates
of road tax in FY 2019-20. The road tax is now a one-time tax and is
realized at the time of sale.
 In FY 2019-20 the entire financial sector was under considerable stress
because of rising NPA’s of banks and NBFC’s. Consumer financing suffered
as a consequence, with banks demanding higher initial deposits for a car
loan and tightening the creditworthiness norms. Almost 80% of our car
sales are financed and these changes made the situation even worse.

7. COMPANY’S ANALYSIS OF FALLING
DEMAND PRE-COVID
 The uncertainty in the minds of consumers during the year was created by the
availability of BS-IV and BS-VI cars during the year. The consumer was
uncertain as to which version to buy. All this led to many consumers
postponing buying decisions.
 the tax on cars in India was far higher than in any other car manufacturing
country in the world. In the European Union (EU), the VAT is 19% and no other
taxes. In Japan, taxes are around 10%.
 the increase in the cost of acquisition of a car, coupled with the higher hurdles
to be crossed to obtain a loan, led to a fall in sales.
 RC Bhargava (chairman) in Annual report said “The downturn experienced by
the automobile sector brought home the lesson that if there is a combination
of substantial price increases with uncertainty in the minds of consumers there
will almost certainly be a drop in the sale of high value consumer durables.”

8. WAY FORWARD –
POLICIES AND STRATEGIES

9. FUTURE OF PRODUCTS AND
INNOVATION
 It has collaborated with the International Centre for Automotive
Technology (ICAT) and Automotive Research Association of India (ARAI) to
upgrade validation and testing facilities in R&D centers at Gurugram and
Rohtak and ensure timely compliance.
 The Company has decided to not offer diesel vehicles from 1st April, 2020.
It anticipates BS VI diesel vehicles will not be financially viable for the
masses.
 This is because the combined effect of higher cost of diesel for BS VI
vehicles on account of the high technology upgradation cost, and the
reduced fuel price differential between gasoline and diesel, makes diesel
vehicles disproportionately expensive.

10. FUTURE OF PRODUCTS AND
INNOVATION
 Real Driving Emissions (RDE) norm, which will come into effect from April
2023, will create further viability issues. The Company is currently
monitoring the market and may consider introduction of bigger diesel
vehicles in its future portfolio.
 The next-generation progressive, smart hybrid technology with dual
battery, which has been developed by Suzuki, offers functions such as
torque assist, idle start-stop and brake energy regeneration, resulting in
improved fuel efficiency and lower emissions. After Ertiga, Ciaz and S-
Cross, the smart hybrid technology has been extended to Baleno, XL6 and
the new Vitara Brezza with automatic transmission.

11. CAFE NORMS
 The Government of India has implemented the Corporate Average Fuel
Efficiency (CAFE) norms to reduce the carbon footprint of the automobile
industry.
 The first phase of the CAFÉ norms was implemented from April 2017 with a
fleet target of 130 g CO2/km at 1,037 kg of fleet weight.
 Company’s fleet is the most efficient among M1 category passenger
vehicle manufacturers in terms of emissions and fuel consumption. Its fleet
emission was less than 110 g CO2/km and average fuel consumption was
less than 5 litres per 100 km.
 The more stringent second phase is planned to be implemented from April
2022 with a fleet target of 113 g CO2/km at 1,145 kg of fleet weight by
Govt. of India.

12. FUTURE LOW CARBON STRATEGY
 The Company plans to adopt a technology-agnostic approach to its future
low-carbon powertrain strategy, focusing on a mix of CNG, hybrid and
electric vehicles.
 The Company will also strengthen and expand its CNG product portfolio to
increase penetration of green fuel mobility in the market.
 The Company has been conducting nation-wide field testing of prototype
electric vehicles in multiple terrains and climatic conditions.
 The Company aims to achieve the sale of one million green vehicles,
including CNG and hybrid vehicles, in the next couple of years.

13. SAFETY TECHNOLOGIES
 Company has adopted is Suzuki’s new-generation HEARTECT platform. The
platform uses Ultra and Advanced High Tensile Steel (UHSS and AHSS)
which help it better withstand and absorb collision impact, and disperse
the residual impact evenly through the intelligently designed structure.
 HEARTECT platform has been used in eight models. The S-Presso and XL6,
launched during the year, are based on the fifth-generation platform.
 The Electronic Stability Program (ESP) is being progressively adopted. ESP
improves a vehicle’s stability by detecting and reducing loss of traction.
 ESP along with hill-hold function has been introduced in XL6 and Dzire.

14. SAFETY TECHNOLOGIES
 The Company is working with the Society of Indian Automobile
Manufacturers (SIAM) and Ministry of Road Transport and Highways
(MoRTH) to build an India-specific safety rating program called Bharat
New Vehicle Safety Assessment Program (BNVSAP), which is based on a
scientific method involving analysis of India’s accident data.
 In order to provide quality driving training and education, the Company
has set up seven Institutes of Driving Training and Research (IDTR) and 19
Road Safety Knowledge Centres (RSKC) in association with five state
governments in India.
 In future, the Company plans to set up new IDTRs in Chhattisgarh and
Jammu.

15. END OF LIFE VEHICLE MANAGEMENT
 ELV management requires that products are designed for maximum
recoverability and recyclability.
 The Company is complying with the EU ELV Directive norms for Reusability,
Recyclability and Recoverability (RRR) for export markets.
 In India, bodies such as the Ministry of Road, Transport and Highways
(MoRTH) and the Central Pollution Control Board (CPCB) have introduced
policies and standards on ELV management, and regulations are being
drafted.

16. END OF LIFE VEHICLE MANAGEMENT
 S-Presso and XL6 launched in 2019-20, voluntarily meet EU ELV norms for
recoverability and recyclability, ahead of Indian regulations.
 RRR norms will be voluntarily met for all new models being introduced and
for all running models by 2023.
 The Company has entered into a joint venture with Toyota Tsusho Group
to set up a vehicle dismantling and recycling unit in Noida, Uttar Pradesh.
The unit is expected to be operational in 2021.
 The unit will have an initial capacity to dismantle around 2,000 vehicles per
month. The JV will add more such units across India in future.

17. LI-ION BATTERY RECYCLING
 With Electric Vehicles, the use of Lithium-ion batteries (LiB) will increase.
LiBs are being preferred in hybrid and electric vehicles.
 The regulations and infrastructure for LiB recycling in India are slowly
developing.
 Company has proactively established a mechanism for recovery of LiBs
from the market, as well as their safe storage and scientific disposal.
 It has also entered into an agreement with an international firm for
recycling of the collected LiBs.

18. OCCUPATIONAL HEALTH AND SAFETY
MANAGEMENT SYSTEM
 The OHSMS engages all employees in creating a culture of risk awareness
and accident prevention. It involves them directly in identifying and
reporting hazards and potentially hazardous situations.
 The Head Office in New Delhi, the manufacturing plants in Manesar and
Gurugram, as well as the R&D center in Rohtak are externally certified
under OHSAS 18001.
 The Company has prepared a comprehensive roadmap to migrate to ISO
45001 by the year 2021.

19. HR POLICY PLANS
 The Company is driving a Gender Diversity and Inclusion initiative Women
in Network, Growth and Success (WINGS) for empowerment of women at
work and promotion of an inclusive work environment.
 Under this initiative, an assistance program called ‘Care for You’ has been
started to provide counselling and stress management related support to
female employees.
 In future, the Company plans to launch initiatives around mentoring and
capability building in order to empower its female employees to take up
more challenging roles.
 A comprehensive learning and development framework is being
implemented by Maruti Suzuki Training Academy (MSTA), the training arm
of the Company.

20. OTHER PLANS
 The Company is steadily increasing the share of solar power in its energy
portfolio.
 In 2019-20, a photovoltaic (PV) solar plant of 5 MWp capacity was set up at
the Gurugram facility, increasing the total installed capacity of solar power
to 6.3 MWp. further expansion of captive solar power generation capacity
is being planned.
 The Company is committed to eliminate the use of Ozone-Depleting
Substances (ODS) at its facilities.
 It is gradually reducing its inventory of R-22, which is currently contained
in condensers, chillers and air-conditioning units, and intends to procure
equipment with only non-ODS refrigerants.

21. OTHER PLANS
 the Company is planning to commission railway sidings at Manesar plant
and Gujarat sales and distribution facility by 2022 and 2023 respectively.
 The third production line commissioning was delayed because of the fall in
demand in FY 2019-20 and the pandemic. Its commissioning date will
depend on market conditions in 2021.

22. FUTURE CSR INITIATIVES
 Company is building a 50-bed hospital in the Mehsana area of Gujarat,
which lacks in medical facilities in partnership with Zydus Cadilla. This
would be operational by April 2021.
 A school is also being built in the same area and would be progressively
expanded to provide education up to class 12. Its start has had to be
postponed to June 2021 because of the COVID-19 pandemic.

23. UPCOMING LAUNCHES
 The company has plans to expand the
footprint of the Nexa premium
dealerships and thus brand new vehicles
are definitely on the cards.
 The first all-electric model from Maruti
Suzuki based on the Wagon R may as
well see the light next year at Nexa
outlets.
Maruti Wagon-R Electric

24. UPCOMING LAUNCHES
 An electric hatchback and an entry-
level 800 cc hatch that could act as a
replacement to the Alto are also
rumored.
 In 2023, Maruti Suzuki is expected to
launch a C-segment MPV co-developed
with Toyota and it could slot between
the Ertiga seven-seater MPV and the
Toyota Innova Crysta.
Maruti Futuro-e

25. UPCOMING LAUNCHES
 Maruti Suzuki is widely believed to launch the India-spec five-door version
of the Jimny with a four-wheel-drive configuration paired with a 1.5-litre
petrol engine.

26. UPCOMING LAUNCHES

27. UPCOMING LAUNCHES

28. THANK YOU