- Maruti Suzuki India Ltd (MSIL) is a subsidiary of Suzuki Corporation and has been the leader in the Indian car market for over 25 years. - MSIL has the capacity to produce over 1.2 million vehicles annually and plans to expand capacity to 1.75 million by 2013. - Some of MSIL's popular cars include Maruti 800, Alto, Swift, Ritz, and SX4. However, MSIL's success has become a burden as its market share is declining due to increased competition from other automakers entering the Indian market.

1. CASE STUDY: ”Where success is a
burden”
ABHIJITH BABU
AJU VARGHESE
ANEETTA MERIN KURIEN
ANSU MARY VARGHESE
CHINNU MERIN JOHN
Mar Athanasios College for Advanced Studies ,Tiruvalla(MACFAST)

2. SUMMARY
• Maruti Suzuki India Ltd. (MSIL), formerly known as Maruti
Udyog Ltd.
• MSIL is a subsidiary of Suzuki Corporation, Japan.
• MSIL has been a leader in the Indian car market for over two
and a half decades.
• MSIL has a capacity to produce over 1.2 million vehicles per
annum and has plants to expand the capacity to 1.75 million by
2013.
• The popular cars of MSIL are Maruti 800, Alto, Swift, Ritz,
SX4 etc.
• Sales turnover of MSIL has been rising year over year and has
been listed both in BSE and NSE.

3. • Maruti Udyog Ltd. Was incorporated on
February 24, 1981 as a fully-owned
government company.
• The govt. has decided that the company to
increase its production and to source and
secure foreign technology.
• The company became a joint-venture
enterprise between the govt. of India and the
Suzuki Motor Corporation , Japan.

4. What made MSIL tick?
• MSIL is one of the biggest car maker.
• The firm has a strong R&D establishment with
1110 scientist and engineers.
• Maruti has 80 odd vendors and the company
works closely with tier 1 and tier 2 vendors to
help them upgrade on several fronts, including
talent , productivity, and R&D
• Maruti has 2000 dealers in 800 cities.
• The company is tying up with PSU banks and
RRBs to finance car puchase by vilagers.

5. • MSIL has evolved unique HR policies by introducing
common uniform for all its employees from managing
director to the janitor.
• MSILs management took initiatives in promoting a union
MUEU (Maruti Udyog Empoyees Union).
• The importance of the union was higlighted by ensuring
that the president and the general secretary of the union
were seated on the dais at every Maruti function.
• The company introduced an attractive suggestion scheme
in1984.
• Many of the HR practices of MSIL have been replicated by
the Indian private sector.

6. Weaknesses Multiply
• Major weakness of MSIL is its own success
which has become a big burden on it.
• Complacency is showing off in the declining
market share.
• Competition is becoming tougher by day as
more and more auto giants are making their
presence felt on Indian roads.
• MSIL is deeply entrenched in the no-frills
value-for-money segment.

7. Q.Why has MSIL’s management not
tried to enter foriegn markets via fdi
route?
• MSIL is a govt. owned company.
• Lead to job loses.
• Avoid foreign monopoly.
• Big threat to small indian companies.
• Prevent the develepment of small companies

8. Q.What can MSIL do to regain its near
monopoly position in the Indian market?
• MSIL has to focus on two main areas- capacity expansion and R&D
capabilities
• Both the management and employees of MSIL should have an
attitude of striving for vibrancy, initiative and innovation. Focus to
become more creative and cost-efficient
• MSIL must gear up to maintain its leadership position in spite of
tough competition from global auto majors like Honda, Toyota,
Volkswagen, Ford etc by designing small cars suitable for the Indian
conditions.
• It should set pace for future green cars.
• To launch more of compact cars with more features to meet the
needs of the customers locally.

9. REFERENCES
• International Business K.Aswathappa,6th
edition
• Internet
• International Business by subb Rao
• Competing in global market by mc grew hill
• Etc.