In preparation for the introduction of its first electric vehicle, a midsize SUV known as Concept eVX, which is scheduled to take place in January 2025, Maruti Suzuki India intends to install close to 25,000 electric vehicle charging stations. Aside from utilizing its more than 5,100 service centers located in 2,300 cities, the leading automobile manufacturer in the country is also in discussions with oil marketing companies (OMCs) and energy companies to establish a charging ecosystem.
Through their combined efforts, Indian Oil, Bharat Petroleum, and Hindustan Petroleum operate more than 81,000 retail stores across the nation, thereby controlling approximately 90 percent of the retail market!
It has been reported in the media that Maruti has begun conducting a study of their dealer workshops in search of charging points. Each of its service centers is going to be equipped with at least one dedicated bay and two charging stations, according to the plan. Training for service mechanics has already begun in Bengaluru.
How Maruti Is Planning to Execute Its Plan
Through their combined efforts, Indian Oil, Bharat Petroleum, and Hindustan Petroleum operate more than 81,000 retail stores across the nation, thereby controlling approximately 90 percent of the retail market!
Hisashi Takeuchi, the managing director of Maruti Suzuki, stated this week at the 64th Annual Convention of the Society of Indian Automobile Manufacturers (SIAM) in New Delhi that the company will develop a variety of solutions for its electric vehicle (EV) clients in order to lessen their concerns around the ownership of an EV. According to what he said, company would make use of the power of its network in order build confidence in its clients regarding their after-sale support.
Maruti intends to sell 3,000 units of the eVX within the first three months of its launch, with the cost of the vehicle being estimated to be between INR 20-25 lakh. The electric sport utility vehicle (e-SUV) will be manufactured at the company’s plant in Gujarat. Maruti intends to launch a total of six to seven electric vehicles over the following six to seven years.
Is It the Right Time to Enter in EV Domain?
Maruti is currently entering the segment at a time when sales in India’s emerging electric vehicle market have reached an eight-month low. According to data obtained from the Vahan portal of the government, electric vehicle sales in August were 6,335 units, representing a year-on-year decrease of 10%. The reduction can be attributed to a number of causes, including problems with the charging infrastructure, concerns about range, and high starting pricing.
It is not uncommon for automobile manufacturers to get their ecosystem ready before the launch of their first electric vehicle (EV), and then to continue growing it through collaborations with a variety of stakeholders.
Tata Motors, the market leader in electric vehicles (EVs), distributes five different models of electric vehicles and has established 5,600 public charging points. Meanwhile, Tata Power Renewable Energy, the business’ sister company, constructed 101,924 residential charging connections.
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!
Why Maruti suzuki cars are so popular? | Maruti Suzuki Business Strategy
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 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.
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.
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.
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.
The world is moving really fast. It was never in history that we had the luxury to learn about anything in the world from the comfort of our homes. The information that we deal with (on a daily basis) is immense. All of this just doesn’t come up out of the blue, it has a price that we pay every day. The price is some of the other natural resources or some non-replenishable resource. But now the world is witnessing the shift. The shift from non-sustainable methods of human activities to more sustainable methods.
One of the pioneers of such a transition is EVs. It is an acronym for Electric Vehicles. It is forecasted that these cars (or vehicles) will be the future of not just public transport but will be the future of private transportation as well. With that being said, everyone is trying to get into the business of EVs. Every other car manufacturer is making their cars electric.
In an immensely population-dense country, India, the sector is getting ready to launch. Top-notch companies are planning to disrupt this market with some innovation. Except for one carmaker, Maruti Suzuki. The largest carmaker in India will refrain from entering the electric vehicles market in India. This article talks about what are (and could) be the reasons for such waste of potential.
Maruti Suzuki Plans about launching EV in the Indian Market
First, let us give you some context. It has been reported that the country’s largest carmaker, Maruti Suzuki has plans that they will not enter the electric vehicles markets in the short term. This trend of refraining will continue till the market is feasible. Chairman R C Bhargava told shareholders at the company’s 40th annual general meeting.
Yes, this news surfaced all over the internet. It shook not only the investors but people who had hopes for the company to launch EV. Adding to the news, RC Bhargava, the chairman, told the investors and shareholders that the carmaker has no plans to enter the EV market in the short term. They will only enter the market when the market will show some feasibility in the future. This was seen as the main highlight of the 40th annual general meeting that was held last year.
Adding to the notion of not entering the EV Market, Bhargava said the government’s focus is on developing the two-wheelers with the primary goal of electrification.
In the product segment of two-wheelers, Hero and Ola have been innovating. We all know that Hero is trying its best to enter the electric vehicle market and on the other hand it is developing infrastructure for charging electric vehicles.
Ola, the ride-sharing and taxi service startup is also looking forward to an electric future, so much so that they recently launched their product called the “Ola Electric”. Ola electric is a two-wheeler that runs on electricity. Thus, apart from the product segments of the two-wheeler category, remains the passenger vehicle segment. This is the primary market of Maruti Suzuki and they are quite unaffected by the newborn electric vehicles in this segment.
Bhargava added that they know that the sale volume is minimal and it is not in much of a magnitude. This easily predicts that folks at Maruti Suzuki are trying to play it safe rather than just jump on what is the hottest trend in the market right now.
In the passenger vehicles segment, a few manufacturers have brought EVs, “but the sales volume is minimal, and it has had no impact on the market share of Maruti Suzuki,” Bhargava said.
Annual EV Sales in India
Another fact that is baffling the EV enthusiasts is that other vehicle makers like Tata Motors, Mahindra and Mahindra are already running fast in the EV race.
Tata Nexon EV
They are so much into Electric vehicles that they have already manufactured a little over a dozen battery-powered vehicles. That trend in those carmakers can be seen among various product segments.
They are even forecasted to be more active in the market in the short future. Up till 2025, they will lead the Indian Electric Vehicles market by much more than the then-newcomer in the EV market, Maruti Suzuki.
Why is Maruti Suzuki Refraining from the EV Market?
When asked why the country’s topmost car maker is refraining from the EV market they replied with a rather satisfactory answer. Bhargava mentioned that Maruti Suzuki is currently planning to focus on the Electric vehicle segment, without making a loss on its basic and natural operating cycle. This was what he replied when investors enquired about the Electric vehicle segment.
In response to queries from several shareholders, Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations.
“Maruti Suzuki is the leader in the passenger vehicle industry, and it fully intends to have leadership in EVs. But to be sure, Maruti Suzuki’s focus in the short term is CNG and hybrid vehicles – until the time EVs reach a certain scale. On its part, the company’s sister arm – Suzuki – and Denso and Toshiba, have already started working on localization of lithium-ion cells and engaging with the vendor fraternity to have a deeper localization to deliver an EV “that is accessible and delivers enough scale to add to the bottom line.” he added
After the statements by Maruti’s Chairman, one thing is clear that Maruti Suzuki has hopes for electric vehicles, but it doesn’t want to just jump right into the trend. It is waiting for a little more stabilised market in the Electric vehicle market and until then, Maruti is cleansing the company to better fit the EV market in the future. It is not scared of the innovations but just doesn’t want to regret any early investments. After all, it is such a big organisation and also holds a lot of expectations.
When will Maruti Suzuki Enter the Indian EV Market?
Suzuki’s parent company had said an India special EV might be ready by 2025. Regarding issues related to climate change, zero-emission and carbon neutrality, India has to follow its own schedule and not be pressured by the timelines set by more developed nations in the world, the chairman asserted.
“Yes, we must work with the rest of the world, we must be concerned about climate change, we must go on to reduce emissions. But we and the world have both to recognise the disparities in income and living styles and the disparity in the consumption of energy per capita in the developed world and India,” Bhargava answered.
The company will be launching an all-new sports utility vehicle next year to expand its footprint in the fast-growing segment in the mainstream market. The development work on the vehicle is underway, which will be introduced shortly. “Once we have the SUV next year, we will have more market share in that area”, he added.
It is clear from the above statements that the company clearly understands what the Indian user would want. It is true that the whole of India is not readily agreeing on shifting to electric vehicles and it will take some time. Until then Maruti plans to do more research and development on prospective investments.
Current Situation of Maruti Suzuki
If we look at the current situation in the product segment, we will find that Maruti Suzuki is the dominator of the vehicle segment. It has, in the local markets, very well accepted cars like that of Wagon R, Swift, Baleno, Vitara Brezza, Ertiga, XL6 and the S-cross. On the other hand, Hyundai (Korean rival) has made good growth in the SUV category.
Top Best-Selling Cars of December 2021
Separately, Bhargava said while Maruti Suzuki has faced some loss in production due to the shortage in availability of semiconductors, it is not of major concern. The current shortage of semiconductors facing the automobile industry is temporary, partly caused by the outbreak of the coronavirus pandemic and is expected to be over by 2022.
“Meanwhile, there has been a bit of a hit on the production of vehicles, and we have had to adjust, but there is no major loss that we have to be concerned about,” Bhargava said.
Bhargava has a thought process. That is, he thinks that India has to look after the citizens’ needs and wants. The only way to do that is to increase the lifestyle of individuals. They have to be better equipped with income to spend and live a decent life, this will create new demand for not just electric vehicles but everything else.
Not only this, he believes that this will also help in catching up with the rest of the world. The electronic vehicle is a concept that was first released in the outer boundaries of the world where technology is developed. They also enjoy a slightly better lifestyle than most Indians. EVs have to be tailor-made for Indians.
“It will require a much higher per capita energy consumption even if we adopt much more energy efficient means of consumption”. Bhargava pointed.
Bhargava further said: “And to do that we cannot follow everything which the West does. We have to make our own schedules and programmes and ensure that we do not adopt rules and regulations, which results in the people of India not being able ever to come up to the point of levels which they need to come up with to reduce (the gap) with the rest of the world.”
The above article points to the boundaries and the centre of the news piece that showed everyone. It is true that the homegrown vehicle maker Maruti Suzuki has hopes and aspirations for Electric scenes in India. But it surely does not want to do that in haste. Maruti has reported some slight losses due to manufacturing issues due to the unavailability of semiconductors. This however is not a big issue and they are getting better everyday. Maruti plans to be a little more stable in operations before they start investing in the Electric vehicle segment.
The news smoke came even when rival companies like Tata Motors and Mahindra and Mahindra had lined up a lot in the Electric vehicle domain. It is forecasted that up until 2025 they will launch some dozen more EVs for citizens.
To those queries, the officials have already answered the raised questions. Bhargava said Maruti Suzuki is looking at the electric vehicle (EV) segment without making a loss on operations. India is a special market for everything, not just in the segments of the electric vehicle.
One who understands the markets and the needs of Indian customers are set to rule the market. Maruti over the years have done really well in the passenger vehicle segments, and this is good proof of their understanding of the Indian scenario.
FAQ
Is Maruti coming with electric cars?
Yes, Maruti has plans to enter the Indian EV market in 2025.
What is the price of the Maruti electric car?
The Wagon R electric will be priced at 10 lakhs in India, which is slated to launch in 2025.
Why is Maruti not making electric cars?
Maruti Suzuki’s chairman, R C Bhargava stated in its annual general meeting that, They will only enter the market when the market will show some feasibility in the future.
The Indian automobile industry is one of the most competitive sectors in the economy. There are approximately 5000 car dealers in India wherein approximately around 11 – 12 cars are being sold every minute. Be it SUV or sedan, as the standard of living is rising in India, people feel like having a car is a necessity.
In the past decade, the popularity of having cars has increased a lot. Due to the advancement in technology, cars have become affordable as well as eco-friendly. With the increasing needs of people in India, the competition in the automobile industry is beyond par. Even when there are many automobile companies in India who sell affordable, luxury all kinds of cars, there is one company that has always been on the top priority of people and that is Maruti Suzuki.
Maruti Suzuki India Ltd has grown to be India’s largest passenger car company, which accounts for over 50% of the domestic car market. Maruti Suzuki is a subsidiary of Suzuki Motor Corporation, Japan, where the Japanese car company boasts of holding around 56.37% of stakes, according to the reports dated September 2020.
The company offers a wide range of cars starting from entry-level cars to stylish hatchbacks and the most modern sedans including DZire, SX4, Grand Vitara, and more. It takes care of the business of the manufacturing, purchase, and sale of motor vehicles and their spare parts (automobiles). Furthermore, it is also engaged in the financing of cars and the facilitation of pre-owned car sales fleet management. The Maruti automobile company has 2 manufacturing plants in Gurgaon and Manesar in Haryana and 1 manufacturing complex in Gujarat. According to the recent announcement of the company in May 2021, the company is capable of manufacturing around 200 cars per day in total.
In this Maruti Suzuki Case Study, you will know all about the History and Success of Maruti Suzuki in India.
Maruti Suzuki was started back on February 24, 1981, to manufacture cars for middle-class Indians. The company was formed as a government company, incorporated as Maruti Udyog Ltd. with Suzuki as its minor partner. Maruti Udyog then signed the license and joint venture agreement with Suzuki Motor Corporation, Japan, on October 2, 1982, which began the start of the long-lasting and successful partnership.
The company started its productions in 1983, which then came to be the choice of every Indian household. The first car it launched was Maruti 800. It was affordable back then and was thus incredibly popular. This model of Maruti is still considered to be a Maruti classic to date. Although the journey of Maruti Suzuki India Ltd. started off in a very different way.
Maruti Suzuki – 1980
In India, till the early 1980s, the government of India controlled the Indian automobile sector, and privatization did not enter yet. There were only two automobile companies – Premier Automobiles Ltd, which had their popular car, Premier Padmini, and Hindustan Motors Ltd, which made the Ambassador cars. Maruti Udyog Ltd. entered this era with Suzuki Motor Corporation as its minor partner.
Premier Padmini
Maruti Suzuki – 1983
Maruti Udyog signed a license and joint venture agreement (JVA) with Suzuki Motor Corporation of Japan in 1982. This is when the very first factory of Maruti Suzuki was established in Gurgaon, Haryana. In the first 2 years when Maruti was set up, the company was engaged in the importing of fully-built cars from Suzuki, which later grew to include only 33% native parts. This was not what the indigenous company had planned.
Though Maruti was ready with the idea of its own manufacturing facility in India, the company couldn’t continue with its plan fearing the small market here in the subcontinent. Besides, our country was in need of producing fuel-efficient vehicles to meet the increasing demands as the local transport was inefficient. This is why the company thought of adjusting the petrol tax and also reduce the excise duty to ramp up their sales.
Maruti Suzuki began its local production in December 1983 and introduced its Suzuki Alto (SS30/SS40), Suzuki Fronte, and Alto-based Maruti 800.
Maruti Suzuki came up with a new and powerful Suzuki Alto (SS80), a 796 cc hatchback, which replaced the former Maruti 800 model in 1986. The company also successfully manufactured its 100,000th vehicle in the same year.
By this time the company was already recognized for its stronghold in the automobile and at the turn of the new year, Maruti Suzuki also began its foreign exports. It started with exporting a lot of 500 cars to Hungary
Market Liberalization and Maruti Suzuki – 1991
1991 was the year of the liberalization of the Indian economy and by then, the company witnessed around 65% of its components being indigenized. It was also in this year that Maruti further increased its stakes in Maruti. Maruti Udyog then became a 50-50 joint venture with the Government of India and a Japanese automotive company as stakeholders.
Maruti Suzuki – 1994
Maruti Suzuki saw the production of its 1 millionth vehicle in 1994 since it started manufacturing automobiles. This year also saw the inauguration of the second plant of Maruti. Furthermore, the automobile manufacturers also started their 24-hour on-road emergency vehicle service.
Maruti Suzuki – 2000-2002
Maruti emerged as the first Indian car company to launch a call center for its internal processes and customer service in the year 2000. The company also saw the release of many more models of its cars in the next 2 years that followed, including the Esteem Diesel, which was launched in 2002. Meanwhile, Suzuki Motor Corporation also increased its stake in Maruti, which now became 54.2%.
Maruti Suzuki – 2003-2004
The company started the year 2003 with the introduction of the Suzuki Grand Vitara XL-7 and upgrading its Zen and Wagon R models. Later in the same year, the company manufactured the 4 millionth Maruti vehicle and also entered started its new partnership with the State Bank of India. Moreover, the company was also listed on BSE and NSE after which it went public with issues that were oversubscribed tenfold.
Maruti 800, which was the best-selling Maruti car till 2004 was overtaken by the incredible popularity of the Alto model after 2 decades in the same year. Maruti Udyog concluded the financial year 2003–04 with a record 472,122 units as its annual sale, which reached an all-time high since the company began operations.
Maruti Suzuki – 2007
On May 10, 2007, the government of India took an exit from the country’s largest car maker Maruti Udyog Ltd by selling the residual stakes, which amounted to Rs 2,360 crores to a bunch of financial institutions led by the Life Insurance Corporation. In July 2007, Suzuki decided to change the name of its subsidiary to Maruti Suzuki India Limited.
Maruti Suzuki Logo
Maruti Suzuki – 2012 and the Later Years
Maruti Suzuki successfully sold its 10 millionth vehicle in February 2012. The company boasted of having a market share of 45% in July 2014 and then in May 2015, it witnessed the production of the 15 millionth vehicle in India with the launch of the Maruti Suzuki Swift DZire.
Maruti Suzuki was cautious of the environmental factors and understood the need of embracing environmentally friendly automobiles. This is why the company declared that it would phase out the manufacturing of diesel cars by 1 April 2020. Furthermore, by this time the Bharat Stage VI emission standards also came into effect, which announced that the company must significantly invest in its diesel cars to comply with the stringent emission standards.
The company plans to launch its first electric car in the second half of 2021, according to the reports. The car would be named Maruti Suzuki WagonR Electric, which is currently put to test.
Maruti has carved its own league of success throughout the years that it has remained in business. The company now boasts of having 9 subsidiary companies in total, namely:
True Value Solutions Ltd
Maruti Insurance Agency Logistics Ltd
Maruti Insurance Agency Solutions Ltd
Maruti Insurance Distribution Services Ltd
Maruti Insurance Business Agency Ltd
Maruti Insurance Agency Services Ltd
Maruti Insurance Agency Network Ltd
J J Impex (Delhi) Pvt Ltd
Maruti Insurance Broker Ltd
Maruti Suzuki had surely achieved great success. 5 Main things that ushered in the success of the company are – Affordability, Goodwill, Hatchbacks, Low Maintenance & NEXA
Affordability
In the early ’80s cars weren’t something that every Indian man or a middle-class family could afford. It was a luxury resource about which only a few people could dream. There weren’t many car companies since liberalization came late in India.
When Maruti Suzuki entered the Indian market, the most prominent factor which made it the market leader at that time was the price of its cars. They were very successful in launching cars with excellent features at an Indian budget-friendly price which made it ‘people’s car’.
Even to date company’s cars are known to be in a range which any middle-class man today can afford to buy.
Goodwill
Over a decade ago, Maruti Suzuki launched an advertisement video which said ‘Ghar aa Gaya Hindustan’ which became an instant sensation among people of India. Since the initial years, Maruti Suzuki has been successful in creating a notion into the minds of people that they associate home, the nation with their car.
Their commercial still instills that India comes home in a Maruti Suzuki. The company has received great acceptance for the brand and its customers are very loyal to them. All these years, customer satisfaction has proved that Maruti Suzuki’s goodwill and brand loyalty are very strong and enthralling.
Hatchbacks are the most idol cars for Indian roads and they rule the market. They are everywhere present in the market and are the most preferred body type throughout the nation. Maruti Suzuki initiated the concept in India and its most popular hatchback car Alto is one is the most demanded cars in India to date.
Maruti Suzuki Alto
Low maintenance
When comparing the services of different automobile companies in India, Maruti Suzuki’s service charges are lower. The best thing about their services is that they have various stations and centers across the nation where they serve a huge number of cars daily. Today they make most parts in India under the Made in India and hence their spare parts and components are variably low when compared to other automobile companies.
Since Maruti Suzuki’s cars were always looked at as the mid-range cars that serve the middle-class category they wanted to enter the other market too. That is when Maruti Suzuki launched NEXA. In 2015 they started the delivery and operations of its premium range cars. This helped them engage with their high-end customer category.
Maruti Suzuki Nexa
Conclusion
The automobile sector has been growing rapidly over the past decade, even after the Covid-19 pandemic. Maruti Suzuki cars have emerged as budget-friendly and low-cost cars with superior after-sales services that have made it India’s top choice for many car owners.
Maruti Suzuki will play a very important role in making cars assessable and available to many Indians in the future as well. Its aggressive management and promotion strategies will cater to huge demand in the Indian automobile market.
FAQ
What is the net worth of Maruti Suzuki?
As of 2020, the total assets of Maruti Suzuki is ₹63,627 crore (US$8.9 billion).
Who is the chairman of Maruti Suzuki?
Shri Ravindra Chandra Bhargava is the chairman of Maruti Suzuki.
Is Maruti a Govt company?
Maruti was a Govt company, but in 2002, the Indian government gave the charge of the management of Maruti Udyog Ltd. to Suzuki for a consideration of Rs1000 crore.
Every Business has faced this situation, where there’s depletion in the company’s sales turnover as a new product has been introduced, repercussions affecting the sale of old products in the similar product line.
In other simple words, generally, Cannibalization refers to eating one species, where the devourer belongs to the same species. Just like that, in the business field, the instigation of modern products is coupling the demand and supply of former products.
Obviously, people purchase the new launch and totally overlook the old product considering it a banal version of a similar product line, moreover this is prevalent in business.
For instance, Apple constantly releases a series of iOS to its customers, when the company introduced iPhone 12 Pro, people were enthralled to acquire it and ultimately shut one’s eyes to its previous version-iPhone 12. Thus; Cannibalization engenders no vicissitudes in the company’s sales turnover regarding existing products but gradually accelerates sales growth for the new product.
Numerous corporations practice Cannibalism in Brands, by discounting existing products to compete with their recent products in the market. As a result, this will bring an augment profit on both existing and new products of the company. Besides, Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.
Effects of Cannibalization
Just like Newton’s third law: for every action, there is always an equal and opposite reaction. So, when the incorporation did anything, then it would definitely influence the incorporation in terms of sales or production.
If the company inaugurates a fresh product, say McDonald’s comes up with BTS meals, no wonder the BTS armies are everywhere and BTS meal is hyping up in recent times, albeit the existing food products like Big Mac or McMuffin are receiving derivative fond as customers prefer BTS meal to any other foods in McDonald.
Therefore; no one holds any reprehensible for the loss of the company’s market share, but itself the company by inaugurating new products as one of the newest versions of its old products.
Why is there a need for Cannibalization in Brands? How they overcome Cannibalization?
Cannibalization plays a crucial part in brands; where existing products are overlooked because of the newest product introduction. This will accelerate the demand for new products and decrease the sales of former products of its similar product line.
Businesses cannibalise their existing or outdated products by employing two ways to meet the same demand of their new product:
Discount
Company plans to touts existing products due to cannibalization, by providing discounts on such products in order to compete with the same demand for fresh products.
For instance; Samsung has launched its new version Samsung Galaxy F22 in July 2021, which overruled its preceding product Samsung Galaxy F12 which came to the market in April 2021.
What is the company planning to do, provided the former Samsung Galaxy F12 sales slump due to the demand for Samsung Galaxy F22 inflates?.
Factually, it is apparently evident that people would buy stuff when it is provided at a discount rate. So, the company vents former products at a discount price, where people fall for Samsung Galaxy F12 rather than paying a higher price for its newer version.
E-commerce
This pandemic became a beneficiary to e-commerce, where everything is supplied through Amazon, Flipkart or Myntra etc. E-commerce is the best way to captivate customers by generating many offers such as festival offers, Today’s Deals or deal of the day etc. For instance, Amazon recently applied for 26th-27th July Amazon prime Day India by selling products at low prices.
Five examples to state that Cannibalization works for existing products
Cannibalization for existing products can be seen in every company when a new product is launched ranging from low-cost products like school supplies to high-end products like vehicles. The cannibalization of existing products can be proved through these examples.
iPhones
Apple introduced iPhones which cannibalized iPods
Steve Jobs, the founder of Apple in his biography has quoted saying that ”If you don’t cannibalize yourself, someone else will”. And likewise, Apple itself cannibalizes its products.
The iPhone first model was launched in June 2007. During this period Apple was coveted for its iPods and sales were at a high rate but Apple came out with iPhones that practically had the music feature along with phone services with internet connectivity and media support.
This led to consumers straying towards iPhones as they were a better substitute for iPods. This product like in the case of iPhones is an example of Self Cannibalization.
Coke-Zero
Coke Zero Cannibalized Coke
Coca-Cola, famous for its product Coke and Diet Coke, chipped away at its sales by introducing Coke-Zero targeting the male population that worried about their sugar intake in 2006 in the UK while compensating their total revenue.
Coca-Cola has also cannibalized itself by introducing Minute Maid, Fanta, etc. and removing coke and its variants as the essential face of the company.
P&G’s Tide Detergent
Tide Detergent was introduced to cannibalize P&G’s Ivory Soap
Procter & Gamble was mainly known as a manufacturer of soap and was known for its Ivory Soap which had drawbacks of its own like dirt wasn’t removed when used with hard water.
So even with risking cannibalization of their Ivory Soap, the company went ahead and introduced Tide Detergent in 1946 which was the first synthetic detergent that could deep-clean clothing as P&G didn’t want to be cannibalized out of the soap producer industry.
Maruti Suzuki Alto
Maruti launched Alto which cannibalized Maruti 800
Maruti Suzuki Alto manufactured by Maruti Suzuki was introduced in 2000. It was the Indian built version of the fifth-generation Suzuki Alto. In 2006, it was India’s largest selling car and by 2008 it had crossed 1 million in terms of production. But this increase in sales was only achieved by eating away the sales of the famous Maruti Suzuki 800. This was done with the help of price cuts and an ad campaign that lured many.
WeChat
WeChat was introduced to cannibalize QQ
China’s Tencent famously known as the world’s largest gaming company and the most-used internet portal used QQ an online instant message service during the period when desktop computers were the hype.
QQ failed to meet the standards with the development of smartphones and electronic devices. Therefore Tencent ordered a group of engineers to develop a messaging platform that would cannibalize QQ. Thus, WeChat was developed and released in January 2011.
When human beings, in general, see something better, they essentially want it and feel inadequate with the thing they already possess and an urge to be updated with the upgraded version begins to fester. This is exactly what leads to the cannibalization of products.
The overlooking of existing products for a new one. If this phenomenon doesn’t work, there wouldn’t be customers for a newly launched product be it smartphones or vehicles.
Also known as corporate cannibalization of market cannibalization, this phenomenon is also the doom for a company as this nips away the sale of the previously introduced product. Thus proving this phenomenon to be double-edged.
FAQ
What is the example of brand cannibalization?
Coke Zero was introduced by Coca-Cola which chipped away the sales of Coke is one of the famous example of brand cannibalization.
What is Cannibalization?
Cannibalization is nothing but a competition between exciting and fresh products of the same brand within the company.
Why do brands cannibalize their existing products?
Brands usually cannibalize their existing products to accelerate the demand for new products and decrease the sales of former products of its similar product line.
Endorsing brands with celebrities is a common marketing strategy used in the Advertising Industry. Having a celebrity brand endorser comes with many advantages, they help advertising the company’s products, brand and services, reach their target audience and raise brand equity. Varun Dhawan is one of the top upcoming celebrity endorser in India.
Varun Dhawan is an Indian actor that works predominantly in the Hindi film industry. Currently, Varun Dhawan is also one of the highest paid actors and has also been featured in the list of Forbes India’s Celebrity 100, since 2014. Varun Dhawan at a young age of 34, became the only actor in Bollywood to get 11 box office successes in a row.
The actor is known for his work in movies such as Student of the Year, Main Tera Hero, Humpty Sharma Ki Dulhania, Badrinath Ki Dulhania, Dilwale, Dishoom, Judwaa, Badlapur, Sui Daaga, Street Dancer, etc. The net worth of the Varun Dhawan is estimated to be over $29 million in 2021. While the actor is known to charge over Rs 1 to 3 Crore.
The brands endorsed by Varun Dhawan are Reebok, Parle Agro Frooti, Layer’r Shot, Maruti Suzuki Arena, Resiquick, Lux Cozi, Fossil Watches, Tasty Treat, Brylcreem, FBB, Buffalo Clothing, SkyBags, Adar Poonawalla Clean City Initiative, Adiction Deodorant, Campus shoes, Philips, Dhawan & Only, We Chat, Nestle Fruita Vitals, Mazaa, Iconic Clothing, Panasonic, Gatsby hair gel, Idee, Ponds Men, Colgate, Oppo, Coca-cola, Bournvita, Navratna, Haathi Cement, Indian Cancer Society, etc.
Here is the list of brands endorsed by Varun Dhawan
Reebok
Reebok is globally known British footwear and clothing company that is a subsidiary of Adidas. The company was founded by J.W Foster and Sons in 1895 in Bolton Lancashire, England and currently has its headquarters based in Boston, Massachusetts, with offices in Amsterdam, Montreal, Hong Kong and Mexico City.
Reebok is the official footwear and apparel sponsor for popular companieslike CrossFit and Spartan. The company is known for its products such as fitness, running and CrossFit sportswear which include clothing and footwear. Reebok signed Varun Dhawan along with Katrina Kaif as its brand ambassador in 2019.
The duo have made fitness related ad commercials for reebok, recently the company launched its biggest campaign on Sole Fury, which is a dynamic new silhouette that is equal parts sport and style, featuring Varun Dhawan.
According to Sunil Gupta, the brand director of Reebok India, “Being a fitness enthusiast, the actor complements the brand brilliantly. Varun echoes Reebok’s enthusiasm and dedication to fitness, and we are confident that together we will continue to revolutionise the fitness industry.”
Parle Agro Frooti
Frooti is the second largest mango flavoured drink sold in India and a flagship brand of Parle Agro which is a FMCG Company. The brand was initially launched in 1985 and then became the most successful drink launched by Parle Agro. The drink used to be sold in a tetra pak packaging and are now available in PET bottles.
Frooti can be found in the countries such as USA, UK, UAE, Canada, Saudi Arabia, Malaysia, Maldives, Singapore, Thailand, New Zealand, Australia, Mozambique, Ghana, Malawi, Zambia, Nigeria, Tanzania, Japan, and Ireland. The company signed Varun Dhawan as its brand ambassador in 2019 and was also featured in a commercial for its new campaign called #TheFrootiLife along with Alia Bhatt.
Commenting on their association, Nadia Chauhan, the CMO of Parle Agro said that, “Introducing Varun Dhawan as Frooti’s new brand ambassador is a step towards accelerating our ambition to be the number one in mango drinks segment. The presence of both Varun and Alia will help us connect better with the consumers to take the brand to newer heights.”
Maruti Suzuki is one of the most known and trusted automotive company which is a subsidiary of Suzuki which is a Japanese automotive manufacturer. The company was earlier founded and owned by the Government of India until 2003. As of 2018, the company had achieved a market share of 53% in the Indian passenger car market.
Maruti Suzuki is currently the country’s largest car manufacturer and has launched Maruti Suzuki Arena. These new showrooms will be modern and will enhance transparency and offer a warm, friendly and comfortable environment to the customers.
The Maruti Suzuki Arena have four distinct retail channels which are Maruti Suzuki Arena, NEXA, Commercial and True Value. The company signed Varun Dhawan as an endorser for Maruti Suzuki Arena, the ad campaign for this will based on the tagline ‘A destination called you. A feeling called Maruti Suzuki Arena.’
In an interview, R.S. Kalsi, the Senior Executive Director of Maruti Suzuki said that, “Led by Varun Dhawan, our new campaign will showcase Maruti Suzuki Arena as a youthful and modern destination for a dynamic, trendy, social and connected car buying experience.”
Lux Cozi
Lux Cozi is a popular brand of men’s underwear that is owned by Lux Industries with its headquarters based in Kolkata, West Bengal. Lux Industries Ltd is one of the oldest underwear companies in the country, known for its Hosiery products for men, women and children. The brand was launched 1963, that now has a turnover of Rs 200 crores.
Lux Cozi is known to be sold in more than five lakh retail stores across the country. The company has also sponsored for some IPL teams such as Kings XI Punjab and Pune Warriors India. Lux Cozi signed Varun Dhawan as it brand ambassador in 2017, and the actor has so far been the face for the brand for a few years now and has appeared in many ad commercials.
In an interview, Mr. Udit Todi, senior vice president, Lux Industries said that, “A significant section of young audience connects with Varun and we believe will work in favour with our strategy to reach out to the youth of this country.”
FBB is a clothing brand that belongs to Big Bazaar and was founded in 2008, making it the oldest and largest retail hypermarket chains of India. Big Bazaar has more than 250 stores in over 120 cities and towns across the country with FBB stores available in every Big Bazaar store.
FBB has been trying to redefine affordable fashion which is why it has a strong presence across all metropolitan cities of India. FBB signed both Katrina Kaif and Varun Dhawan as its brand ambassadors. The company launched its ‘Everything Below 599’ campaign with Varun Dhawan in order to attract more customers especially during the pandemic.
Commenting on the association, Akshay Mehrotra, the CMO of FBB said that, “Katrina Kaif and Varun Dhawan represent the youth of today, who are independent, confident and have individualistic and inimitable style quotient. Both the actors personify fbb’s brand preposition of contemporary and comfortable style with mass appeal and with an aspiration that relates to youth across India.”
Fossil watches
Fossil is an popular American Fashion designer and a manufacturer that was founded in 1984 by Tom Kartsotis. Fossil Group is headquarters in Rishardson, Texas and has brand like Relic, Michele Watch, Fossil, Skagen Denmark, Misfit, WSI and Zodiac watches under it. The company also makes licensed accessories for other luxury brands such as BMW, Puma, Emporio Armani, Michael Kors, DKNY, Diesel, Tory Burch, Chaps, and Armani Exchange.
Varun Dhawan became the brand ambassador for Fossil Watches in India and has been featured in multiple fossil ad commercials. Fossil also collaborated with Varun to make a limited edition watch collection, a portion of the sales from the range is said to be donated to the Magic Bus. Magic Bus is a NGO with a mission to end poverty through education.
Commenting on his association with the company, Varun said that, “Fossil is an iconic brand that has always celebrated creativity, authenticity and optimism, everything that I swear by when it comes to my style. I am honored to be associated with a brand that is so close to me, to create a watch that truly personifies what I believe in something new, exciting, and affordably classy.”
Philips is one of the most trusted electronic multinational company that was founded by Gerard Philips in 1891. Philips has its headquarters based in Amsterdam and is the largest electronics companies in the world. As of now, Philips has more than 80,000 employees in over 100 different countries.
Philips is segregated into the sectors of Personal health, connected care and diagnosis and treatment, while the lighting division became a separate company. In 2012, Philips went on to became the largest manufacturer of lighting in the world as measured by applicable revenues. Varun became the Philips’s brand ambassador in 2015 and endorsed the male shaving category in some multimedia ad campaigns.
The company in a statement said that, the actor was roped infor the brand as he exemplified the modern man who is suave, confident and well-groomed. ADA Ratnam, President of personal health for Philips India, added that, “Who better than Varun Dhawan to endorse the new shaver’s range that is designed for all the men to get the perfect shave without any nicks and cuts.”
Pond’s Men
Ponds is an US brand known for its beauty and health care products, and is currently owned by Unilever. Ponds is was first patented medicine by Theron T Pond, a pharmacist in the 1846. By the 20th century the company was mainly selling cosmetic products. Today, the pond’s wide variety of creams are sold worldwide and are especially popular in countries like Spain, India, Japan and Thailand.
Ponds is known for its products that are specialized for different ethnicities, ages, environment and lifestyles. Ponds launched its skincare range for men in India with Varun Dhawan as it brand ambassador. When Ponds men was going to launch it was said to be the first of its kind, as it offered skincare range that instantly brightened and recharged skin for Indian men.
Varun so far has been the face of the brand in many of the ponds ads and also added, he loves the new Pond’s Men range of face washes and moisturizers because they are an effective and no-fuss solution to my skin needs. Pond’s is amongst the most reputed skincare brands in the world. He also added that, it is exciting to be the face of this product range for men.
Layer’r Shot is a deodorant brand that is owned by Adjavis Venture Limited. The company was initially established in 2013 by Devendra N Patel. Adjavis Venture Limited came up with LAYER’R Shot and Wottagirl which were both successful in the market. Layer’r Shot recently became one of the top selling fragrance brand for men and offers a wide range of world class, long lasting fragrances crafting especially crafted for the Indian customer.
Varun became the brand ambassador for Layer’r Shot in 2018, the last campaign featuring the actor is based on how older adults who are judgmental about today’s youth. The ad showcases how the new fragrance spreads good thoughts and removes the negative or judgmental thinking happening around them.
Commenting on the commercial, Virendra Saini, the Executive Director said that, “Varun Dhawan is a perfect fit for this campaign as this product appeals to the youth and who better than Varun to represent today’s youth and their thinking. The script demanded someone who has humour and also, someone who can bring freshness and liveliness to the brand.”
Oppo
Oppo is a popular Chinese consumer electronics and a mobile communications company and is among the top ten smartphones sold in India. The company has its headquarters in Dongguan, Guangdong and offers a variety of products ranging from smartphones, audio devices, power banks, blu ray players to other electronic products.
The company was initially launched in 2004 and is currently is available in over 40 countries selling smartphones in more than 200,000 retail stores. Oppo signed Varun Dhawan as its series ambassadors in 2021 for the range of smartphones called OPPO F19 Pro+ 5G and F19 Pro.
The actor launched the smartphone through its latest ad campaign with the tagline of ‘Flaunt the Nights’. In 2019, OPPO India also made actors such as Ranbir Kapoor as their brand icon, Katrina Kaif and Badshah as brand friends for the Reno smartphone series of OPPO. The three stars will be featured together for an ad film of OPPO India.
Adar Poonawalla Clean City Initiative
Adar Poonawalla Clean City is an initiative that focuses on sustaining environment and is undertaken by Adar Poonawalla. The initiative started in 2014 when Mr. Poonawalla found garbage piling up and being dumped across the city and even went on to pledge Rs. 100 crore for this initiative.
The main aim of this organization is to ensure that more and more cities adopt it to make Urban India becomes cleaner, greener and healthier. Both Varun Dhawan and Alia Bhatt were made endorsers of the Adar Poonawalla Clean City Initiative in 2017.
The two have been featured in ad films that highlights the need to keep your cities clean and dispose of garbage in the bin. The ad film was successful and gained over 1.5 million views in a single day.
Varun Dhawan is an Indian actor that works predominantly in the Hindi film industry. Currently, Varun is also one of the highest paid actor in the country.
How much does Varun Dhawan charge for brand endorsement?
Varun Dhawan is known to charge over Rs 1 to 3 Crore for brand endorsements.
What is the net worth of Varun Dhawan?
The net worth of the Varun Dhawan is estimated to be over $29 million in 2021.
Conclusion
After the success of many his movies, Varun Dhawan has also become quite popular in the advertising industry as the actor has endorsed many brands in a short span. The actor is in demand because he is young hence appeals to the youth and has huge fan following.
Varun can be seen endorsing big brands from the sectors of FMCG to automobile to even lifestyle on virtually every platform. Varun is known to endorse brands that generally appeal to the masses, which why it look like actor’s brand value will only continue to grow in the future.
Maruti Suzuki India which is one of the largest manufacturers of the four-wheeler segment in the country has seen a decline in the sales during the month of May. The company has been a pioneer in the consumer market segment of four-wheeler sales in the country. Let’s look at the reason for the decline in the number of sales.
On 1 June 2021, Maruti Suzuki had reported that there was a decline of around 71% in the sales of the largest carmaker in the country on May 2021. The carmaker has seen a decline of 71% when compared to the sales on April 2020 as during the month of April the sales were around 1,59,691 compared to the sales of May which amounted to just 46,555 units.
Maruti Suzuki India had also conveyed that their domestic dispatches to their dealers in the month of May amounted to around 35,293 units which saw a decline while compared to the month of April which amounted to around 1,42,454 units.
Segment wise Decline in sales of Maruti Suzuki
The sales of mini cars of the company such as S-Presso and Alto saw a decline of around 81% during the month of May which amounted to 4,760 units when compared to April which amounted to 25,041 units.
The sales of the compact segment vehicles such as Swift, Baleno, Dzire and Ignis saw a decline of around 72 % during the month of May which amounted to 20,343 units when compared to April which amounted to 72,318 units.
The sale of the mid-sized sedan which is Ciaz saw a decline during the month of May which amounted to 349 units when compared to April which amounted to 1,567 units. The sale of Utility Vehicles which include Vitara Brezza, Ertiga and S-Cross had also seen a decline of around 75 % during the month of May which amounted to 6,355 units when compared to April which amounted to 25,484 units.
As per the report received from Maruti Suzuki India, the company has also seen a decline in their export segment of around 35% which amounted to 11,262 units in the month of May when compared to the 17,237 units in the month of April.
Reason for the decline in Sales of Maruti Suzuki
One of the major reasons for the decline of the sales for the largest carmaker in the country was due to the shutting down of their manufacturing units. It is seen that the company had shut down the production process in the month of May 2021 from 1st to 16th.
The production process was stopped by the company in order to divert the oxygen from the industrial usage for the medical purpose across the country. There was a nationwide crisis as the majority of the hospitals have been facing a lack of oxygen supply for the patients and a lot of them losing their lives.
Soon after that, the major places in the country had gone under lockdown and not having a proper production process for the entire month has affected the sales volume of May 2021.
Maruti Suzuki Sales compared to May 2020
About Maruti Suzuki India
Maruti Suzuki India is a subsidiary company of the Japanese based automotive manufacturer Suzuki. The company was formerly known as Maruti Udyog Limited and was owned by the Government of India in between 2981 to 2003. In the year 2003, the Government of India had sold it to the Japanese company Suzuki Motor Corporation.
The company has a market share of around 53% in the Indian car passenger market. The company has its headquarters located in New Delhi, India.
Conclusion
Maruti Suzuki India has conveyed that due to the shut down of production for the supply of oxygen and disruptions faced due to lockdown, the normal production hasn’t taken place in the past two months and hence the sales volume of May 2020 is not comparable to the one that of May 2021.
FAQ
Who is the CEO of Suzuki?
Osamu Suzuki is the current CEO of Suzuki.
When was Maruti Suzuki founded?
Maruti Udyog limited was founded by the government of India in 1982.
Is Maruti Suzuki most selling car in India?
Yes, Maruti Suzuki has been consistent in selling most number of cars for fourth consecutive year.
Many brands are appointing popular Bollywood celebrities in order to promote a particular product, event or even a mission and though. Brand ambassadors are responsible for putting forth the message of the brand and making it popular among the masses.
In India it is very common for big brands to spend crores for endorsing their products or services. Salman khan is a main candidate for celebrity endorsements considering his popularity among the masses. Salman Khan born as Abdul Rashid Salim Salman Khan is one of the most popular Indian actor, producer, singer and television personality who works predominantly for Bollywood.
The actor has been working in the Hindi film industry for more than 30 years winning awards such as Film fare and National film awards as a producer. The actor is one of the most successful actors in the Indian cinema and was also ranked 82nd in the list of the top paid 100 celebrity entertainers in the world, according to Forbes in 2018.
Salman Khan is known for his work in movies like Karan Arjun, Hum Aapke Hain Koun, Dabangg, Ek Tha Tiger, Sultan, Tiger Zinda Hain, Bajrangi Bhaijaan, etc. Besides the acting career, the actor is also a host to the most popular reality show Bigg Boss since 2010. He is also is been a part of many humanitarian causes through his charity Being Human Foundation.
When it comes to his brand endorsement the actor is known to charge over 7 crore for a per day brand shoot, while commercial ads usually take up to 3-4 days to shoot. Salman Khan is currently the highest-earning brand endorser for a smartphone brand. The actor net worth is estimated to be $360 million in 2021, while the brand value of the actor is more than $45 million in 2021.
Salman earns over ₹3 million annually, just from advertising and endorsements. The actors has so far endorsed brands like Being Human, Coco-Cola, Thums Up, Goldiee Masale, Revital, Relaxo, Dixcy Scott, Wheel, Britannia Tiger Biscuit, Mountain Dew, Suzuki Motorcycles, Chloromint, Realme, BharatPe, PepsiCo, Emami, Appy Fizz, PNG Jewellers, Limca, Astral Pipes, among other.
Thumps up is an Indian cola brand that was introduced in 1977 to offset the withdrawal of the Coca- Cola Company in India. Coca-Cola later purchased the company and even re-launched it to compete against PepsiCo. From the year 2012, Thumps Up has continued being a leader in the cola segment in India, taking over 15% market share of the overall Indian aerated drinks markets.
Salman Khan in a Thumps Up commercial
Salman Khan became the company brand ambassador for the first time in 2002 and continued until the contract was over. Coca cola managed to get Salman Khan as its brand ambassador again to endorse the Thumps brand in 2012. At that time, Coca-Cola India had also signed an agreement with Salman’s Foundation Being Human in order to jointly promote, conceive and execute charitable and social activities.
But after that the company dropped Salman Khan they replaced him with Akshay Kumar and currently Ranveer Singh. During their contract however, the actor has been a part of many successful television advertisements.
Revital H
Revital H is a leading brand that is under Sun Pharmaceutical consumer healthcare which is one of the most trusted brands amongst its millions of customers. The brand is known for its Revital H capsule which is a nutraceutical for daily health, it contains a combination of vitamins and minerals that help in supporting daily energy needs and it also has components like Ginseng that improves concentration.
Salman in a revital advertisement
The capsule also increases oxygen consumption in the body and helps to maintains energy and stamina throughout the day. Sun Pharma had signed Salman Khan as its brand ambassador in 2012, when it was still a Ranbaxy brand. In 2016, however the company parted ways with the actor and signed M S Dhoni as its new brand ambassador.
Emami Group is an Indian Consumer goods conglomerate company that has its headquarters based in Kolkata, West Bengal. The company is known for its leading personal, healthcare business and a portfolio of 300 consumer products.
Salman Khan in a popular Navratna ad
The company has currently launched a sanitizer category as the demand for hand sanitizers has increased after Covid 19 pandemic. The company has made Salman Khan as the brand ambassador for its Navratna oil. Navratna oil is one of the largest selling hair oil brands in India and is available across pharmacy stores, modern trade outlets, and e-commerce platforms.
The company is confident that the association with Salman Khan will help brand to scale up due to actor’s mass appeal and huge fan base. Salman has also endorsed other Emami’s products such as Fair and Handsome, Rasoi, Bake Magic, and Himani Best Choice Refined Oil.
Suzuki Motorcycles
The Suzuki Motorcycle India Private Limited is a Indian subsidiary of the Japanese conglomerate, Suzuki. This brand was the third Suzuki automotive venture started in India after TVS Suzuki and Maruti Suzuki. The company has set up its own manufacturing facility at Gurgaon, Haryana with an annual capacity of 5,40,000 units.
Salman endorsing Suzuki Motorcycles
The SMIPL signed Salman Khan as its brand ambassador in 2013, and the actor has since promoted the different variants of the upcoming motorbikes of Suzuki. The first campaign featured Salman introducing the motorcycle Hayate, after that Salman was also a part of their mass media campaign to create awareness for Suzuki Brand.
Relaxo Footwear limited is an Indian multinational company that manufactures a wide variety of footwear. The company is headquartered in New Delhi and is known to be the largest footwear manufacturer in the country as per the volume and second largest in term of revenue. It also has over 5% market share as it manufactures products under 10 brands such as Flite, Sparx, Bahamas and schoolmate.
Salman Khan in a Relaxo commercial
Relaxo made Salman Khan as the brand ambassador for its slipper brand Hawaii in 2012. The commercial involves a dance performed by Salman on the song composed for the advertisement. The brand claims the product to be relaxing and strong in quality through the advertisement. The actor has remained the face of the brand for a long time.
Mountain Dew
Mountain dew is a carbonated soft drink that was originally inventive in 1940 by Tennessee beverage bottlers known as Barney and Ally Hartman. The company is subsidiary of PepsiCo, which is a conglomerate that is in over 200 countries generating more than $67 billion as its net revenue in 2019.
The company also manufactures carbonated drinks such as Diet Mountain Dew, Mountain Dew Code Red, Mountain Dew LiveWire, Mountain Dew Throwback, Mountain Dew Voltage and Mountain Dew White Out. PepsiCo signed Salman Khan as the brand ambassador of Mountain Dewwith an annual fee of Rs 5 crore.
Mountain dew is the second soft drink endorsed by Salman Khan after endorsing PepsiCo rival, Coco Cola’s Thumps Up. The actor has done many high-energy commercials featuring high-octane stunts for the “Darr ke aage jeet hai” campaign. The actor’s tough and fearless persona in the ads has positioned the soft drink as the drink which helps you overcome fear.
Realme is a popular Chinese smartphone brand that has its headquarters based in Shenzhen, China. This company was founded by Sky Li in 2018, who was also the former vice president of the Oppo Company. Realme is a spinoff of Oppo and is collectively owned by BBK Electronics.
Salman Khan in Realme commercial
Salman Khan became the brad ambassador of the company in February 2020 and also endorsed the brand’s Realme 6 and Realme 6 Pro smartphones.
In an interview, Madhav Sheth, the vice president and CEO of Realme shared that the reason behind choosing Salman Khan its brand ambassador was that, having the actor on board with mammoth of fan following will help their company reach and tap into their target audience.
Dixcy Scott
Dixcy was founded in 1982 with an intent to become the leader in the hosiery market. But went on to become one of the most popular innerwear and a lifestyle brand. The company is known to have produced 5,00,000 pieces in a day, while distributing them to over 1,20,000 stores across the country.
Salman Khan in a Dixcy Scott commercial
The company made Salman Khan its brand ambassador which helped the company with soaring popularity. The actor has done many commercial ads for the company, the latest ad engages the audience and creates interest among them.
Wheel
Wheel is a popular laundry detergent brand that is under the Hindustan Unilever Ltd. This brand was created to be a competitor of Nirma which also another low cost detergent. Despite being a household brand that is purchased mainly by women, Salman Khan still became the brand ambassador and has appeared in many of its commercials.
While talking about the deal in an interview, Salman added that he was extremely proud to be associated with one of the country’s oldest and most respectable brands.
The Tiger biscuit was originally launched in 1997 by the Britannia Industries in India. The brand became hugely successful as it was the company largest brand among its entire portfolio of products in the first year itself. Britannia industries made Salman Khan as its brand ambassador in 2013, and actor has endorsed the brand through many commercials.
Frequently Asked Questions
Who is Salman Khan?
Salman Khan is one of the most popular Indian actor, producer, singer and television personality who works mainly for Bollywood.
What is the brand value of Salman Khan?
The brand value of Salman Khan is estimated to be $45 million in 2021.
What are the main brands endorsed by Salman Khan?
The main brands endorsed by Salman Khan are Britannia Tiger Biscuit, Wheel, Dixcy Scott, Realme, Mountain Dew, Suzuki Motorcycles, Relaxo, Revital H, Emami and Thumps Up.
What are the other brands endorsed by Salman Khan?
The other brands endorsed by Salman Khan Goldiee Masale, Chloromint, BharatPe, Appy Fizz, PNG Jewellers, Limca, Astral Pipes, Yatra.com, Hero Honda, Force Motors, Yellow Diamond, CP Plus, etc.
How much does Salman Khan charge for brand endorsement?
Salman Khan charges over 7 crore for a per day brand shoot for brand endorsements.
What is the net worth of Salman Khan?
The net worth of Salman Khan is estimated to be $360 million in 2021.
Conclusion
Salman Khan is one of most popular actor and celebrity in India with a huge fan following. The actor is said to have over 39.2 million followers on Instagram, 42.4 million followers on Twitter and 50 million followers on Facebook through which the actor endorses and supports his brands. This is why the actor earns more than 3 million every year just from brand endorsements and this is expected to increase in following years.
The car sales in India in 2021 for the month of April and partial resumption of operations in May, the coronavirus pandemic coupled with the 18-month lockdown was a major pulldown for the Car Industry’s income for this monetary year. However, with the launch of Covid 19 vaccine the businesses have gradually increase pace as car manufacturers has notices a moderate growth of car sales in India, January 2021.
Moving forward, the restoration majorly is based upon the unfolding of the contagion. But OEMs are pinning their hopes on pent-up patron names for the easing of lockdown regulations and the imminent festive season. The dealers, have in a huge part dusted off its palms over the BS-IV inventory, besides a minimum quantity left stocked on the dealerships in containment zones of city cities.
India’s biggest carmaker, Maruti Suzuki India Limited (MSIL) income fell throughout the segments. While mini automobiles mentioned a 40 % decline, income for compact automobiles. Homegrown automaker Tata Motors announced in April that it has resolved to record quarterly income data, each in wholesale and retail, as a substitute rather than following the enterprise exercise of sharing it on a month-to-month basis. The automaker as a consequence mentioned a 61% dip in home income at 14,571 devices in Q1FY21.
Passenger Vehicle Market Share- India
Shailesh Chandra, President, Passenger Vehicles Business Unit (PVBU), Tata Motors, supported a steeper healing of retail in car sales in June 2021.However, retail became extra potent than wholesales through 27%.The corporation additionally offered 328 EVs later in the area. For Hyundai, launches of Creta, Verna, Aura contributed to the growth inmodel wise car sales in India 2021. Maruti Suzuki, Tata Motors and Hyundai continue to be the top three highest selling vehicle manufacturers in the country in January 2021 and car sales statistics of 2021.
Two-wheelers sales in India 2021
World’s biggest wheeler maker The Hero Moto Corp is now the top two wheeler manufacturer in India in January 2021. The company sold 4,67,776 units, while Honda comes at the second place as it sales increase to 4,16,716 units with a 11.39% volume increase. TVS motor company is in the third places 2,05,216 units were sold with an increase of 25.89%. While Bajaj Auto has also announced that it has now sold 3,84,936 two wheelers in the month of January 2021. This is a direct growth of 16% in terms of overall two wheelers sales.
India’s biggest business automobile producer Tata Motors’ general CV income (domestic + exports) crashed 90% to 10,476 devices in Q1FY21 as in competition to 1,00,357 devices throughout the equal duration in FY20. As the United States moved to the unfastened up phase, all flowers started out out operations from the stop of car sales in May 2020 and ramped up manufacturing regularly as elements availability improved. Retails modified into 67% within the returned of wholesales due to the fact of negligible beginning stock on the sellers and muted name for.
Indian Automobile Market FY2020
Maruti Suzuki
Maruti Suzuki is the India’s country’s car manufacturer, Maruti Suzuki witnesses sales of 1,39,0002 units in January 2021 as compared to 1,39,844 unit sales in the same period last year with an 0.6% increase in sales. The top 2 key contributors for Maruti Suzuki in January 2020 were the Alto (18,260 units), Swift (17.180 units) and the Wagon R (17.165 units).
On the UV front, the Vitara Brezza bought 1,10,641 gadgets, down 30 % over FY2019. Maruti concluded its transition to BS6 shunning diesels, with the diesel-handiest Brezza receiving Suzuki’s 1.5-liter petrol in early February. Combined with the S-Cross, Ertiga, and XL6, Maruti’s basic UV portfolio noticed an 11% drop in income to 2,35,298 gadgets, but the decline become cushioned through manner of approach of a superb reaction to the Ertiga (90,543 gadgets, up 39 %).
Hyundai
India’s second biggest carmaker in 2021 recorded a 11% declinein model wise car sales in India 2020. Hyundai’s typical the front runners similar to the i20 (1,08,091 devices, down 23 %), the Grand i10 – which include the emblem new Nios – (99,592 devices, down 21 %), and the Creta (82,074 devices, down 34 %) couldn’t get away the slump. The company however, has witnessed a healthy 23.8% growth with 52,005 unit sales in January 2021, which compared to January 2020 was only 42,002 unit sales. The top 3 cars sold by January 2021 the Creta with 12,284, Venue (11,779 units) and the Grand i10 at (10,865 units).
In the Fiscal year 2020 became tough for homegrown carmaker Mahindra & Mahindra due to the fact that it observed a 26 % decline in income. Volumes of its maximum seller, the Bolero, dropped 30 %, during the same time the Scorpio observed a 18 % decline.
In January 2021, Mahindra continues to grow significantly as it has registered 4.8% growth in January 2021 with 20,498 unit sales as compared to 19,555 units sold in January 2020. The top three most sold Mahindra cars are Bolero (7,567 units), XUV300 (4,612 units) and last but not the least the Scorpio (4,083 units) are the main key contributors to the overall sales.
The automaker has simply released the BS6 Bolero, and has the BS6 Scorpio in the making, each of that could prop up numbers as quickly as income resume. The release of the XUV500 and the rollout of its new medallion petrol engine very own circle of relatives in FY2021 ought to assist generate buzz and momentum throughout the emblem.
Tata Motors
The company has recently witnessed 26,980 unit sales as compared to 13,893 unit sales of 2020. The company has grown 94.2% growth in January 2021. The top three sellers of Tata motors are Nexon with 8,225 units, the Altroz 7,378 units while the Tiago with 6,909 unit. What is not surprising is that Nexon has registered its highest ever sales milestone in India last month.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi. It is a subsidiary of the Japanese automotive manufacturer Suzuki Motor Corporation.
Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The Brand Trust Report published by Trust Research Advisory, a brand analytics company, has ranked Maruti Suzuki in the thirty-seventh position in 2013 and ninth position in 2019 among the most trusted brands of India.
Maruti Suzuki India Limited is a holding company. The Company is engaged in the manufacture, purchase and sale of motor vehicles, components and spare parts (automobiles). The other activities of the Company comprise facilitation of pre-owned car sales, fleet management and car financing.
Its geographical segments include the domestic segment, which includes sales to customers located in India, and the overseas segment, which includes sales to customers located outside India. The Company’s product portfolio includes Alto 800, Alto K10, Wagon R, Celerio, Ritz, Swift, DZire, Ertiga, Omni, Eeco, Gypsy, Ciaz, etc.
Its service offerings include Maruti Finance, True Value, Maruti Genuine Parts, Maruti Genuine Accessories, Maruti Suzuki Auto Card and Maruti Driving School. It has approximately five plants, located in Palam Gurgaon Road, Gurgaon, Haryana, and at Manesar Industrial Town, Gurgaon, Haryana, with an installed capacity of over 1.5 million vehicles per year.
Maruti Suzuki – Logo and its Meaning
The present variant of Suzuki logo is designed in red and blue colours. The red colour (the letter S of Suzuki) represents passion, integrity and tradition, while the blue(the letter M of Maruti) stands for excellence and grandeur.
Maruti Suzuki’s Company Logo
Maruti Suzuki – Recent News
Maruti Suzuki sees ‘much better’ 2021 as economy rebounds: Chairman
Maruti Suzuki sales increase 1.7% to 1,53,223 units in November
Maruti Suzuki – Founder and History
Maruti Udyog Limited was founded by the government of India on 24 February 1981, only to merge with the Japanese automobile company Suzuki in October 1982. The first manufacturing factory of Maruti was established in Gurugram, Haryana, in the same year.
The company was formed as a government company with Suzuki as a minor partner to make a people’s car for middle class India. Over the years the company’s product range has widened ownership has changed hands and the customer has evolved.
On October 2, 1982 the company signed the licence and joint venture agreement with Suzuki Motor Corporation Japan. In the year 1983 the company started their productions and launched Maruti 800. In the year 1984 they introduced Maruti Omni and during the next year they launched Maruti Gypsy in the market. In the year 1987 the company forayed into the foreign market by exporting first lot of 500 cars to Hungary.
In the year 1990 the company launched India’s first three-box car Sedan. In the year 1992 Suzuki Motor Corporation Japan increased their stake in the company to 50%. In the year 1993 they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the market.In the year 1995 the company commenced their second plant. In the year 1997 they started Maruti Service Master as a model workshop in India to look after sales services.
In the year 1999 the third plant with new press paint and assembly shops became operational. In the year 2000 the company launched Maruti Alto in the market. In the year 2002 Suzuki Motor Corporation increased their stake in the company to 54.2%.
Maruti Suzuki’s mission statement says, “To be The Leader in the Indian Automobile Industry, Creating Customer Delight and Shareholder’s Wealth; A pride of India.”
Maruti Suzuki – Joint Ventures
Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media until Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues.
The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and to 50% in 1992, and further to 56.21% as of 2013. In 1982, both the venture partners entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director would have a tenure of five years.
Maruti Suzuki – Business Model
Maruti Suzuki’s product range extends from entry level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz. Other activities include facilitation of pre-owned car sales fleet management, car financing. Its Business Segments are divided into : Operating Income from sales of cars and Interests from Investments.
Maruti Suzuki offers 17 models of cars
Company focuses on catering to the needs of almost all the segments from the middle class to high class through wide range of products
Maruti Suzuki – Revenue and Growth
Maruti Suzuki: growth highlights are:
It has a presence in 34 cities as of March 2024
The company has 16,500 employees as per LinkedIn as of March 2024
It has served over 27 million happy customers in India as of March, 2024
It acquires news stakes in AI startup Amlgo Labs as per a news report from March 23, 2024
The company has manufactured close to 2 million cars a year in FY 2022-23
Financials
Auto major Maruti Suzuki reported 2.05 per cent year-on-year growth in consolidated profit at Rs 1,419.6 crore for the September quarter of FY21 (Q2FY21) while revenue rose 10.34 per cent to Rs 18,755.6 crore. In comparison, the company had posted revenue of Rs 16,997.9 crore and profit of Rs 1,391 crore in the corresponding quarter of last year.
Maruti Suzuki India on 13 May 2020, said its board took a slew of decisions, including acquisition of Delhi-based JJ Impex, and supply of Vitara Brezza to Toyota Kirloskar Motor (TKM). The car major on said its board has approved acquiring 39.13% equity stake held by Sumitomo Corporation, Japan and 10% held by Sumitomo Corporation India in JJ Impex (Delhi), a company engaged in automobile service and repair business.
The cost of acquisition or the price at which the shares are to be acquired is fixed at Rs 21.73 crore, the company said.
After the acquisition, the company shall become the wholly-owned subsidiary of MSIL. MSIL shall have the right to nominate/ appoint all the directors on the board of the company. The nominee Directors of Sumitomo Group shall resign from the board of the company, Maruti Suzuki India (MSIL) said. The acquisition does not require any government approvals, it added.
Suzuki Motors Corporation had to recall certain models of vehicles such as the Grand Vitara and XL 7 which were manufactured in the year 2005. A problem was detected in the adjuster pulley for the drive belt which has the outer portion made up of plastic and operates the power steering pump and air conditioner compressor. Repeated heat stress caused the outer body made up of plastic to weaken and pieces of the pulley broke off.
The company found out that the broken pieces of pulley can get caught between the pulley and the drive belt which can cause the drive belt to come off resulting in increased effort to steer the vehicle by the driver which in turn increased the risk of a crash or accidents. The company made a plan to resolve the issues in the vehicles with this problem and the dealers of Suzuki Motor Corporation replaced the power steering pump belt tension adjuster free of charge for the customers whose vehicles had the same defect.
Suzukis subsidiary Maruti Suzuki India Limited faced a great challenge to keep its lead in the small market segment of automobiles in India. The company was facing severe production issues which resulted in a long gestation period for some top-selling brands such as Maruti Suzuki Swift, Maruti Suzuki Swift Desire and a few other models. These production issues could have lead to loss in the market share of Maruti Suzuki in India however the company dealt with the situation by working with their vendors to increase the supply of the materials and the company was able to deal with the backlogs of its normal sales on many models.
Difficult days, but we will emerge stronger—This was the message India’s biggest car company gave out on Wednesday as it came out with its annual integrated report for the 2020 financial year and took stock of the toll that the pandemic was inflicting on its bottom line.
“The COVID-19 epidemic has given your company as well as its vendors and dealers an opportunity to review all systems of working and become more efficient and competitive. Thus, while we are going through difficult days, I believe we will emerge stronger and fitter in the future,” Maruti Suzuki chairman R.C.Bhargava said, addressing stakeholders.
The market leader had posted losses for the first time in about two decades, as the April-June 2020 quarter showed nearly Rs 250 crore loss. Net sales had declined to less than Rs 4,000 crore, compared to nearly Rs 19,000 crore from the period in the previous year.
In an alliance with Toyota, Maruti Suzuki will be targeting the Hyundai Creta space with a midsized SUV in 2022, and this vehicle will be based on the current Brezza architecture. A C-segment MPV in 2023 is also planned, and both vehicles are likely to be produced at Toyota’s factory in Bidadi.
Unlike the re-badged Baleno, Ciaz and Ertiga, which will be shared by Maruti and Toyota in India till 2022, the SUV and MPV under development are likely to have distinct characteristics or differentiation to ensure that both companies gain from India’s growing preference for utility vehicles.
“With over a dozen SUVs planned by its rivals, Maruti Suzuki knows it has to have competitive offerings to retain its 50% overall share. The exit from diesel makes compact UVs a challenge, but a 1.5-litre diesel engine is not yet ruled out,” said one of four executives aware of Maruti’s plans. “Plus, Maruti will be relying on the localised hybrid solutions from Toyota to spruce up its future portfolio.”
The utility vehicle segment is expected to overtake the humble hatchback segment in India, as an increasing number of buyers prefer the tall and high-seating SUVs and MPVs that cost as low as Rs 5 lakh and as high as Rs 1 crore. According to vehicle forecasting firm IHS Markit, utility vehicle sales will close 2019 at 38%, a tad behind the hatchback segment, before overtaking the latter in 2020. The share of entry-car or mini-car segment, once Maruti’s mainstay, today accounts for just 10% of the overall market as against 25% share it enjoyed 5-7 years ago.
Apart from bringing in the petrol versions of Vitara Brezza and S-Cross, Maruti created an entrylevel SUV with S-presso. Maruti expects a significant number of its Swift, Dzire, Ciaz, and Ertiga buyers to eventually upgrade to a bigger SUV and MPV.
Maruti Suzuki – FAQs
Who is the owner of Maruti Suzuki?
The company is a subsidiary of Suzuki Motor Corporation of Japan.
Which country company is Maruti Suzuki?
Maruti Suzuki India Limited (MSIL), formerly known as Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India’s largest passenger car company, accounting for over 50 per cent of the domestic car market.
Where is the head office of Maruti Suzuki?
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer headquartered in New Delhi.
Who is the CEO of Maruti Suzuki?
Kenichi Ayukawa is the current CEO of Maruti Suzuki.
Archana Karthikeyan
