Maruti Suzuki

The Indian government gradually reduced its stake, partially departed the business in 2003 by making it a public company and then sold all of its remaining shares to Suzuki Motor Corporation in 2007.

Sanjay Gandhi subsequently initiated his automotive project, establishing operations in a rented garage near Roshanara Bagh in Old Delhi.

[15] Amid allegations of nepotism, the Maruti car underwent a feasibility test by the Vehicle Research & Development Establishment in Ahmednagar.

With Indira's return to office in 1980 and Sanjay's death in a plane crash, the Government of India intervened and assumed control of Maruti through legislative measures.

[18] Following Sanjay's death, his mother Indira tasked Arun Nehru with evaluating the feasibility of resurrecting her son's vision to develop India's affordable car.

Following several months of preparations, Suzuki of Japan and Maruti Udyog Ltd. signed a license and joint venture agreement in October 1982.

[22] Maruti was granted permission to import two Suzuki vehicles that were completely assembled in the first two years of India's closed market, with an initial target of using just 33% domestic components.

There were some concerns that the Indian market would not support Maruti Suzuki's relatively high production levels, and the government even considered changing the petrol tariff and decreasing the excise fee to increase sales.

Eventually, Maruti secured aid from Axiom Bank in Japan, allowing them to finance the foreign exchange component of their expansion.

After the liberalization of the Indian economy in 1991, Suzuki increased its stake in Maruti to 50 percent, making the company a 50-50 joint venture with the government of India as the other stakeholder.

Maruti Udyog closed the financial year 2003–04 with an annual sale of 472,122 units, the highest ever since the company began operations, and the fiftieth lakh (5 millionth) car rolled out in April 2005.

In November 2021 Maruti Suzuki announce to set up of a big plant in IMT Kharkhoda in Sonipat district across 900 acres with an investment of ₹18,000 crores.

[38] In August 2022 Prime Minister of India Narendra Modi virtually laid the foundation stone of Maruti Suzuki's new manufacturing plant in Kharkhoda.

[47][48] However Maruti Suzuki Workers Union (MSWU) President Sam Meher alleged that management ordered 300 hired security guards to attack the workforce during the violence.

[48] Maruti said the unrest began, not over wage discussions, but after the workers' union demanded the reinstatement of Jiya Lal who had been suspended for allegedly beating a supervisor.

[54] Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience.

Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout.

Nakanishi apologized to affected workers on behalf of the company, and in press interview requested the central and Haryana state governments to help stop further violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories.

[64][65] The company dismissed 500 workers accused of causing the violence and re-opened the plant on 21 August, saying it would produce 150 vehicles on the first day, less than 10% of its capacity.

[66] In July 2013, the workers went on hunger strike to protest the continuing jailing of their colleagues and launched an online campaign to support their demands.

The remaining 13 workers were sentenced to life in imprisonment after being found guilty of the murder of General Manager of Human Resources Avineesh Dev.

[71][72] Maruti Suzuki has been criticized for compromising safety in their products by automotive enthusiasts, journalists, and the Global NCAP, as they are made lighter in terms of kerb weight to achieving higher fuel economy.

[74] Maruti Suzuki has also come under fire for discrimination with customers in India, by making cars safe meant for exports to European and African markets.

[75] The chairman, RC Bhargava stated that "If carmakers incorporate such features in even entry-level cars, obviously the price would go up, which would lead consumers to opt for two-wheelers, which would be more unsafe", which attracted criticism.

[76] The company, in February 2020, decided not to send their cars to Global NCAP for testing, as they only believe in the Safety Standards set by the Government of India.

Domestic manufacturers like Mahindra and Tata have demonstrated high levels of safety and protection for their customers, both achieving five star performance.

Surely it’s time for Maruti Suzuki to demonstrate this commitment to safety for its customers?” Alongside, David Ward, President of the Towards Zero Foundation said, "We have seen important progress on car safety in India, with new legislation introduced by the government and manufacturers like Mahindra and Tata accepting the Global NCAP five star challenge and producing models which go well beyond minimum regulatory requirements.

[79] While these cars came with basic safety features such as ABS and Dual Front Airbags, as mandated by the Government of India, the body structure was rated unstable with inability to withstand further loads.

[91] Maruti Suzuki currently sells Fronx, Baleno, Grand Vitara, XL6, Ciaz, Ignis and Jimny through Nexa outlets.

The company recently achieved a milestone of selling 1.5 million cars from over 350 dealerships across the country and is the third largest automobile retail channel of India.

Logo of Maruti Udyog
A 1996 Maruti 800 photographed in Chile
Car showroom near Eluru
A Maruti Driving School in Chennai