Maruti Suzuki India Ltd (NSE:MARUTI) was established in 1981. A joint venture agreement was signed between the Government of India and Suzuki Motor Corporation (SMC), Japan in 1982. The Company became a subsidiary of SMC in 2002. In terms of production volume and sales, the Company is now SMC’s largest subsidiary. SMC currently holds 56.28% of its equity stake. It is a public limited company and its shares are traded at the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE)

Production Capacity

 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. Highly efficient lean manufacturing processes, together with a skilled and motivated workforce, enables manufacturing of reliable and quality products. Suzuki Motor Gujarat Private Limited (SMG), a subsidiary of SMC, was set up in Hansalpur, Gujarat to cater to the increasing market demand for the Company’s products and has been operational since 2017. Through this new facility, an additional annual production capacity of 0.5 million units has been made available, thereby taking the combined production capability to ~2 million units. The Company is responsible for the sales and distribution of units produced at the SMG facility in Gujarat.


Plant Location

The Company has five plants,

  • Two plants - Palam Gurugram Road,  Gurugram, Haryana
  • Three located at  Manesar Industrial Town,  Gurugram,  Haryana.

Product Portfolio


  • Ciaz
  • XL6


  • ALTO
  • EECO




Business Overview


During the year ended March 2020, the Company posted a decline in sales of 18.2% in the domestic passenger vehicle market, which is the highest ever annual de-growth registered by the Company since its inception.1

Amidst a weak demand environment, the Company successfully managed the transition from BSIV to BSVI vehicle technology. Given the wider portfolio of the Company, the introduction of BSVI vehicles had to be done at the right time with meticulous planning in order to ensure that the dealer partners were not burdened with any unsold stock of BSIV vehicles. The Company has sold around 8 lakh BSVI vehicles during the year.

During FY 2019-20, the Company expanded its sales network further. With the pursuit of going closer to the customer for better convenience and experience, despite weak market conditions, the Company added 152 sales outlets primarily in non-urban markets.

Maruti Suzuki Sales Network

The Company has acquired 118 land parcels for setting-up sales outlets and service workshops on the CODO principle (Company Owned & Dealer Operated). Six pilot projects are being taken up across zones. During the year, the focus was to complete pre-construction activities and roll out the pilot projects in FY 2020-21. Based on the learning from these pilot projects, the sales and service facilities will be built on rest of the acquired land parcels. The Company will continue to work on this initiative in future with higher focus on setting up small service workshops to increase its service touchpoints.

The Company’s two new products—XL6 and S-Presso—launched just before the festive period, were well received by customers. This created excitement in the market and helped improve sales. The shift towards petrol vehicles is more evident now with share of diesel vehicles for the industry falling below 20% in Q4 FY 2019-20. For the Company the contribution of sales from petrol vehicles stands at 93% in Q4 FY2019-20.

Seven out of the top ten best-selling models in India came from the Company. Maruti Suzuki has been leading the green mobility initiative in India by providing the factory fitted S-CNG Technology. During the year, while overall sales of the Company in domestic market declined by 18%, the CNG sales grew by 1%. This clearly indicates the growing interest of customers in CNG vehicles.


Light Commercial Vehicles (LCVs)

The Company sold 21,778 units of Super Carry during the year posting a degrowth of 8.8%. Going forward, the Super Carry CNG with industry-best fuel efficiency and attractive pricing is well placed to provide value to the customer.

Pre-owned car sales

Adopting increasingly digital ways in functioning

The Company had re-launched its pre-owned car brand 'True Value' with a new brand identity three years ago and has since been evolving every year. The Company uses a combination of digital applications and artificial intelligence based tools in vehicle evaluation. This not only ensures transparent practices but helps in buying and selling good quality cars to help improve the overall customer satisfaction. During the year, the Company introduced online vehicle buying facility through which the customers can get their cars evaluated digitally at their homes. There are now a total 280 independent True Value outlets across 162 cities. During the year, the certified True Value sales contracted by 6.5%.

To improve the quality of service, the Company trains the workshop manpower on the latest and advanced technological platforms, behavioural and soft skills through Suzuki Service Qualification System (SSQS) based on the global standards defined by the Suzuki Group. The Company has rapidly scaled up its training infrastructure from just 17 in FY 2017-18 to 200 this year.

Spare Parts and Accessories

Availability of spare parts is critical in minimising the downtime of the vehicle and enhances customer satisfaction. It is a big challenge to ensure quick availability of every single part, from a basket of 70,000 different spare parts, in the vast network spread across the country.

Accurate forecasting methods, along with Artificial Intelligence based delivery route optimisation system has helped ensure that more than 98% of customers have immediate access to Maruti Suzuki Genuine Parts (MGP).


During the year, the Company exported 102,171 vehicles to over 100 countries, registering a decline of 6%. The economic and political uncertainties and increased protectionism in some of the export markets affected the sales.

Exports to Latin American region, one of the major markets for the Company, were adversely affected due to socio-political unrest and huge currency depreciation in some of the countries.

Petrol vs Diesel

Given the uniqueness of the Indian passenger vehicle industry with over 75% of sales coming from small cars, the significant increase in acquisition cost coupled with the narrowing price gap between petrol and diesel fuel prices would only mean diesel vehicles are not going to be affordable to the masses. Even before transition to BSVI standard, the share of diesel vehicles in industry sales was continuously falling from the highs of ~60% in FY 2012-13 to well below 30% in FY 2019-20, especially the industry diesel share in Q4 FY 2019-20 was lowest at ~20%. Any model or powertrain technology offered in the market should be relevant to preferences of the consumers.

Consequent to the reducing gap in fuel prices between diesel and petrol, the share of diesel models in Indian passenger vehicle market has contracted continuously.


Financial Highlights

The total revenue was Rs 790,314 million as against Rs 885,813 million in the previous year showing a decrease of 10.78%. Sale of vehicles in the domestic market was 1,461,126 units as compared to 1,753,700 units in the previous year showing a decrease of 16.7%. Total number of vehicles exported was 102,171 units as compared to 108,749 units in the previous year showing a decrease of 6.05%.

Profit before tax (PBT) was Rs 70,648 million against Rs 104,656 million showing a decrease of 32.50% and profit after tax (PAT) stood at Rs 56,506 million against Rs 75,006 million in the previous year showing a decrease of 24.66%.

The Board recommends a dividend of Rs 60/- per equity share of Rs 5/- each for the year ended 31st March, 2020 amounting to Rs 18,125 million. The Company has formulated a dividend distribution policy which forms part of the annual report. No amount was carried to General Reserve.

Maruti Suzuki Consolidated December 2020 Net Sales at Rs 23,471.30 crore, up 13.27% Y-o-Y 2

Reported Consolidated quarterly numbers for Maruti Suzuki India are:

Net Sales at Rs 23,471.30 crore in December 2020 up 13.27% from Rs. 20,721.80 crore in December 2019.

Quarterly Net Profit at Rs. 1,996.70 crore in December 2020 up 25.82% from Rs. 1,586.90 crore in December 2019.

EBITDA stands at Rs. 3,221.60 crore in December 2020 up 11.51% from Rs. 2,889.10 crore in December 2019.

Maruti Suzuki EPS has increased to Rs. 66.10 in December 2020 from Rs. 52.55 in December 2019.

Recent developments

Maruti Suzuki sales rise 11.8% to 1,64,469 units in February 3

March 01, 2021; The country’s largest carmaker Maruti Suzuki India (MSI) on Monday reported a 11.8 percent increase in wholesales to 1,64,469 units in February.

The company had sold 1,47,110 units in February last year, Maruti Suzuki India (MSI) said in a statement.

Domestic sales increased 11.8 percent to 1,52,983 units last month, as against 1,36,849 units in February 2020, it added.

Sales of mini cars, comprising Alto and S-Presso, declined by 12.9 percent to 23,959 units, as compared to 27,499 in the same month last year.

Sales of compact segment vehicles, including models Swift, Celerio, Ignis, Baleno and Dzire, increased by 15.3 percent to 80,517 units, as against 69,828 cars in February last year.

Sales of mid-sized sedan Ciaz, however, declined by 40.6 per cent to 1,510 units, as compared to 2,544 units in February 2020.

Utility vehicle sales, including Vitara Brezza, S-Cross and Ertiga, rose 18.9 percent to 26,884 units, as compared to 22,604 units in the year-ago month, MSI said.

Exports in February were up 11.9 percent at 11,486 units, as against 10,261 units in the corresponding month last year, the company said.

Maruti Suzuki crosses 20 lakh cumulative exports mark 4

February 27, 2021; The country's largest carmaker Maruti Suzuki India (MSI) on Saturday said it has achieved the milestone of 20 lakh cumulative exports.

The auto major achieved the milestone as a batch of products comprising S-Presso, Swift and Vitara Brezza left for South Africa from the Mundra Port in Gujarat.

"The company has been exporting vehicles for past 34 years much before India became a prominent player in the global automobile business. This early global exposure helped the company enhance its quality and attain global benchmarks," MSI  MD and CEO Kenichi Ayukawa said in a statement.

The automaker currently exports 14 models comprising nearly 150 variants, to over 100 countries, he noted.

"Vehicles manufactured at its facilities in India have found high acceptance owing to global standards of quality, safety, design and technology," Ayukawa said.

Going forward, the company has aligned itself with the evolving needs of customers in African and Latin American nations, he noted.

"With a flurry of new models in pipeline, Maruti Suzuki will attract customers in new segments to enable the company to accomplish bigger milestones at a much faster pace," Ayukawa said.

MSI commenced export of vehicles way back in 1986-87 and the first large consignment of 500 cars was shipped to Hungary in September 1987.

In 2012-13, the company achieved the milestone of one-million exports with more than 50 per cent of the shipments going to the developed markets in Europe.

The company achieved the subsequent million in over eight years with special focus on emerging markets in Latin America, Africa and Asia regions.

"With concerted efforts, the company has been able to gain sizeable share in markets like Chile, Indonesia, South Africa and Sri Lanka," the automaker said.

Models such as Alto, Baleno, Dzire and Swift have emerged as popular choices in these markets, it added.

In January this year, the company started production and export of Suzuki''s celebrated compact off-roader Jimny from India.

With India as a production base for Jimny, Suzuki aims to leverage MSI''s global production stature, the company said.


  1. ^ https://www.bseindia.com/bseplus/AnnualReport/532500/5325000320.pdf
  2. ^ https://www.moneycontrol.com/news/business/earnings/maruti-suzuki-consolidated-december-2020-net-sales-at-rs-23471-30-crore-up-13-27-y-o-y-6414231.html
  3. ^ https://www.moneycontrol.com/news/technology/auto/maruti-suzuki-sales-rise-11-8-to-164469-units-in-february-6587321.html
  4. ^ https://www.moneycontrol.com/news/business/maruti-suzuki-crosses-20-lakh-cumulative-exports-mark-6582371.html
Created by Asif Farooqui on 2021/03/01 17:44
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