Business Model of Maruti Suzuki | How does Maruti Suzuki make Money?
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When it comes to automotive manufacturing, Maruti Suzuki India Limited has caught all the fame. Although today, the automobile industry has developed immensely. But the charm and popularity of Maruti Suzuki haven't failed!
The company is a subsidiary of Japan's Suzuki Motor Corporation. In India, Maruti Suzuki is considered the largest manufacturer of passenger cars. In fact, it's Maruti Suzuki who is credited for the revolution of the ushered automobile industry in the country.
Maruti Suzuki begins its journey with the legendary Maruti 800 and today, the company has come up with around 16 car models along with more than 15 variants. Maruti Suzuki manufactures a broad range of passengers as well as luxurious cars like Alto 800 to Ciaz.
Maruti Suzuki offers the facility of car financing and pre-owned sales of the car fleet management. Its factories are established in Gurgaon and Manesar, Haryana, and the art R&D center in Rohtak. Maruti Suzuki is very promising and remarkable with its products and services. In this article, we will be discussing the business model and strategies of Maruti Suzuki. Let's begin!
About Maruti Suzuki
Where does Maruti Suzuki operate?
Key Products of Maruti Suzuki
Target Audience of Maruti Suzuki
Business Model of Maruti Suzuki
How does Maruti Suzuki make money?
Conclusion
FAQs
About Maruti Suzuki
Maruti Suzuki was formerly known as the Maruti Udyog Limited, India, and functioned through a joint endeavor between the government of India and Japan's Suzuki Motor Corporation, signed in 1981.
Maruti Suzuki is widely famous as the largest company in the automobile industry. The company is headquartered in New Delhi and was founded in 1981 by the government of India.
Later in 2003, the automobile manufacturer- Maruti Suzuki was sold to the Suzuki Motor Corporation and functioned as its subsidiary. The Suzuki Motor Corporation owns the capital of 56.2% in the Maruti Suzuki company. Alongside, the company has a market share worth 53% in the market of the Indian passenger car.
The shareholdings of Maruti Suzuki are displayed and traded through the platform of the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Maruti Suzuki is accountable for around 50% of the domestic car market.
The company launched its first product- Maruti 800 and resulted in 13 months of record production. The chairman of this prominent automobile manufacturing company is R.C. Bhargava and Kenichi Ayukawa is the managing director and CEO.
Where does Maruti Suzuki operate?
Maruti Suzuki India Limited is the most prominent automobile manufacturer across India. The company is a subsidiary of Japan's Suzuki Motor Corporation. The automobiles manufactured by Maruti Suzuki are used by almost every third individual in India.
Key Products of Maruti Suzuki
Maruti Suzuki offers a great range of cars such as the Maruti 800, the first-ever Maruti car; Alto 800, Alto K10 as the entry-level cars while Swift, Wagon R, Ritz as the stylish hatchback.
The company provides many commercial vehicles, Automobiles, Pickup Trucks, and SUVs.
Target Audience of Maruti Suzuki
Maruti Suzuki India Limited puts its entire focus towards the young aged people. Its target audience is generally around 30 to 35 years old. Half of the Nexa customers belong to the age group of 30 years.
Souvik Dey
Business Model of Maruti Suzuki
The business model of Maruti Suzuki Limited India is based on its wide range of cars and customer services. The automotive company has recently shifted to the digital platform due to the marketing crisis that occurred from the covid-19 pandemic.
To keep up with its competitors, Maruti Suzuki opted for the digital world for better content marketing and more customer engagement. The digital platforms have become a very crucial part of Maruti Suzuki's Business Model. Around one-fourth of its total marketing budget went off to the delicacy of digital media.
Maruti Suzuki manufactures its automobiles based on the requirements and facilities of the middle class as well as the upper-class section. That's why the company produces a broad range of its products at affordable rates and features.
Maruti Suzuki follows a certain model to cope with the difference between online marketing and the dealership experiences of the customers. The company has brought around 900 dealerships to the online platforms through India's largest Dealer Digitization Program by the company. With the developing digital technologies, Maruti Suzuki has been earning a great sum of deals and customer support.
Ria Puneyani
How does Maruti Suzuki make money?
Maruti Suzuki is considered India's largest automobile manufacturer with around 50% of the total market share. The company earns way more profit when compared to Korea's Hyundai, its biggest market rival. The automobile manufacturers do not provide a clear figure of the company's profit on each deal but they do declare the net profit earned by the company.
According to the calculated data, Maruti Suzuki has sold more than 7.5 million automobiles in India, to date. And around 500,000 units have been sent mostly to European countries. The company's profit includes the money generated through the sales of spare parts of the automobile. However, the profit differs based on the car's size, features, and model. The larger cars are expected to bring more profit to the company's account.
From the latest calculated data, Maruti Suzuki has its revenue worth Rs. 16,997.9 crore along with a profit of Rs. 1,391 crores.
Conclusion
Maruti Suzuki is one of the most prominent automobile manufacturers across India. The company has had an incredible journey since 1983 when it launched its first car- Maruti 800. The company offers a great range of cars with amazing features.
Maruti Suzuki follows a very strong and remarkable business model and now, with digital media, Maruti Suzuki is growing even more. The company has a long run ahead. Stay tuned for more updates!
FAQs
What is the revenue of Maruti Suzuki?
The revenue of Maruti Suzuki is 78,994 crores INR in 2020.
Who is the CEO of Maruti Suzuki?
The CEO of Maruti Suzuki is Kenichi Ayukawa.
When was Maruti started?
Maruti was founded by the Government of India in 1982.
What are the most sold models of Maruti Suzuki?
Most sold car models of Maruti Suzuki are:
- Maruti Suzuki Alto 800
- Maruti Suzuki WagonR
- Maruti Suzuki Baleno
- Maruti Suzuki Celerio
- Maruti Suzuki Swift Dzire
- Maruti Suzuki Ignis
What is Nexa?
NEXA is Maruti Suzuki's premium sales channel for Maruti Suzuki premium & luxury Sedan and Hatchback cars in India.
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