"A STUDY OF WORKING CAPITAL MANAGEMENT AT MARUTI

SUZUKI RNS MOTORS PRIVATE LIMITED”

A project report submitted in partial fulfillment of the requirements for the award
of the Degree of

MASTER OF BUSINESS ADMINISTRATION

OF
BANGALORE UNIVERSITY

BY

ARCHANA D

Register No: P03BX22M015011

Under the guidance of

Prof: DEEPASHREE

27/2, 33rd cross, 2nd Main, 7th Block

Jayanagar, Bangalore- 560082

2023-2024
 STUDENT DECLARATION

I hereby declare that the project report titled "A STUDY OF WORKING CAPITAL
MANAGEMENT AT MARUTI SUZUKI RNS MOTORS PRIVATE LIMITED”
Submitted in partial fulfilment of the requirement of the degree of Master of Business
Management in Bangalore University has been prepared by me during the academic
year 2023-2024 under the guidance of PROF. DEEPASHREE in Department of
Management.

I further declare that this Project Report is the outcomes of my efforts and that is not
submitted to any other University or Institution for the award of another degree or
diploma or other certificate.

Place: Bangalore MS. ARCHANA D

Date: Reg no. P03BX22M015011

 CERTIFICATE FROM THE COLLEGE

This is to certify that MS. ARCHANA D bearing Register No: P03BX22M015011

has completed the project report titled "A STUDY OF WORKING CAPITAL
MANAGEMENT AT MARUTI SUZUKI RNS MOTORS PRIVATE LIMITED”
for the partial fulfilment of the requirement of the Bangalore University for the award
of Master of Business Administration. This research work was carried out by her and
it is original.

Place: Bangalore PRINCIPAL

Date:
 CERTIFICATE FROM THE GUIDE

This is to certify that the project report titled "A STUDY OF WORKING CAPITAL
MANAGEMENT AT MARUTI SUZUKI RNS MOTORS PRIVATE LIMITED”
is the Bonafade work carried out by Ms. ARCHANA D Bearing Register No:
P03BX22M015011 in partial fulfilment of the requirement for the award of MBA
degree of Bangalore University, under my guidance and supervision.

This Project Report submitted by her been completed and reflects her hard work and
sincere effort.

Place: Bangalore PROF: DEEPASHREE

Date: Project Guide Department of MBA

 ACKNOWLEDGMENT

I owe a deep sense of gratitude to those who have contributed to the

successful completion of this endeavour and take this opportunity with
much pleasure to thank all the people who have helped us through the
course of journey towards producing this Project report.

At the onset, I express my gratitude to the Almighty God for his abundant
grace, blessing and goodwill throughout this project.

I am grateful to my guide Prof Deepashree, City College for their constant

support, encouragement and guidance.

I am grateful to who gave his valuable time for the interaction and allowed
me to carry out this project.

I would also like to thank all who helped me directly or indirectly in

completing this project successfully.

ARCHANA D

P03BX22M015011
 PLAGIRIASM REPORT

Name of the student : ARCHANA D

Registration Number : P03BX22M015011

Title of the project : "A STUDY OF WORKING CAPITAL

MANAGEMENT AT MARUTI

SUZUKI RNS MOTORS PRIVATE

LIMITED”

Name of the guide : DEEPASHREE

Similarity content (%) identified :

(Acceptable maximum limit of similarity 25%)

ID Number(s) in :

TURNITIN

The project report has been checked using TURNITIN anti-plagiarism software
(Attached first page of the originally report as ANNEXURE) and found within limits
as per plagiarism policy and instruction issued by the

UNIVERSITY/CBCMS.

We have verified the contents of the live project report, as summarized above and
clarified that the statements made above are true to the best of our knowledge and
belief.

Signature of Guide Signature of the Principal/Director

(Date & seal) (Date & seal)

"A STUDY OF WORKING CAPITAL MANAGEMENT AT MARUTI SUZUKI RNS MOTORS
PRIVATE LIMITED”

TABLE OF CONTENT

CHAPTER
NO TOPIC Pg.no

CHAPTER-1 COMPANY PROFILE

CHAPTER-2 INTRODUCTION
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CHAPTER - 1
INTRODUCTION

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WORKING CAPITAL MANAGEMEN

INTRODUCTION:

Working capital is the amount of money a business invests in current assets. It discusses
the amount of money needed by a certain economic sector to fund its daily activities.
As part of the capital utilized for short- term operations, working capital is related to
the maintenance of current assets and current liabilities.

CURRENT ASSETS:

Current assets are those that can be turned into cash within a year and in the regular
course of business. Those are

• Cash and bank balance

• Barren
• Accounts receivable
• Marketable securities
• Prepaid expenses

CURRENT LIABILITY:

Current obligations are those that are originally planned to be paid in the regular course
of business, revenue from current assets that will be used within a year, or interest on
them. They are an essential part of a company’s financial structure, reflecting its short-
term financial obligations.

• Trade creditors

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• Bank Overdraft
• Unsecured/short term loans
• Outstanding expenses & payables

DEFINITION OF WORKING CAPITAL:

Working capital is defined as the current assets of a firm that are transferred from one
person to another in the normal course of business, such as from cash to inventory or
from inventory receivables to cash.

CONCEPTS OF WORKING CAPITAL:

There are two concepts of working capital:

• Gross Working Capital

• Net Working capital

• GROSS WORKING CAPITAL

Working capital is the sum of a firm's investments in current assets. Cash and bank
accounts (CR), short-term securities, receivables, stocks and other items are example
of current assets for a business.

• NET WORKING CAPITAL

Net working capital refers to an organization's investment in current assets. Cash,

bank balances, short-term investments, notes receivable, inventory, and current
liabilities including short-term loans, bills due, unpaid costs, etc. are examples of a
company's current assets.

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NET WORKING CAPITAL HAS BEEN DEFINED AS:

Working capital, sometimes referred to as net working capital or working capital,

is the difference between current assets and liabilities that "allows a company to
determine the exact amount it has available for operating needs."

Net Working capital = Current Assets – Current Liabilities

NEED FOR WORKING CAPITAL:

It is impossible to overstate the importance of working capital for the smooth

running of day-to-day operations. There aren't many companies that don't need
some form of operating capital. Of course, the amount of working capital required
by different firms varies.

We understand that companies want to maximize shareholder wealth. A company

must earn sufficient returns from its operations to maximize shareholder value.

Working capital is essential for a company's day-to-day operations. It ensures

smooth business functions by covering short-term expenses like payroll, inventory,
and bills. Adequate working capital helps a company seize opportunities, navigate
uncertainties, and maintain financial stability.

Successful sales operations are necessary to generate stable profits and for sales
operations to be successful, the company must expend sufficient funds in its current
assets. Sales do not turn into cash immediately, so current assets are needed.
Monetization of revenue always involves an operating cycle.

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OPERATING CYCLE

After resources are converted into inventory, the operational cycle is the period of
time needed to transform sales into cash. The following three phases make up a
manufacturing company's operational cycle:

• Procurement of resources like labor, fuel, electricity and raw material.

• The product is manufactured, including the transformation of raw materials into

work-in-progress and finished goods;

• It can be sold for cash or on credit. Credit sales generate recoverable book debts.

These phases affect cash flows, which are often asynchronous and unpredictable.
Due to the fact that cash outflows often precede inflows, they are asynchronous. It
is difficult to accurately predict sales and collections, which in turn result in cash
flows. As a consequence, in order to run efficiently and continually, the
organization has to invest in its current assets. Since there is no correlation between
cash inflows and outflows, liquidity must be maintained in order to buy raw
materials and cover costs like labour and wages as well as other costs associated
with production, administration, marketing, and taxes.

Cash is also kept on hand to meet any unexpected needs. In order to ensure smooth
production and to avoid the availability of raw materials and other components,
inventories of raw materials and work in progress are maintained. The Company
keeps finished goods in stock to meet frequent customer orders and occasional
requirements from some customers. Due to marketing and competitive factors,
goods are sold on credit, creating book debts (accounts receivable). As a result, the
company invests appropriately in inventory and book debt to ensure efficient and
continuous production and sales.

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Determinants of working capital

The working capital requirements of firms are not pre-determined by any fixed
rules or principles. However, there are key variables that often affect the amount of
working capital businesses need.

Nature and size of Business

A firm's working capital requirements are largely influenced by the nature of its
industry. Commercial and banking firms spend very little in fixed assets, but require
a lot of money for working capital. To meet the varied and ever-changing demand
of consumers, retail businesses, for example, must maintain huge inventories of a
range of goods. On the other hand, public utilities must make large investments in
fixed assets and have a relatively limited demand for operating capital.

manufacturing cycle

Acquiring, using and manufacturing raw materials are all part of the manufacturing
cycle and as the production cycle lengthens the need for working capital increases.
It requires effective planning and coordination at all levels of activity. Any delay
in the production process leads to backlog of work and waste of time.

Increase sales

As sales increase, the firm's demand for working capital increases. In practice, it is
difficult to establish a relationship between sales volume and working capital
requirements; Before expansion can take place, existing assets must be utilized.
Therefore, it is always necessary to prepare working capital for business
development.

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Demand conditions

Demand for goods and services is subject to seasonal and cyclical fluctuations for
the majority of firms. These changes in business affect the company's working
capital requirements, especially its short-term working capital requirements. Sales
increase during economic recovery and as a result, the company's investment in
inventory and book debt also increases. Some companies may increase investment
in fixed assets during a boom period to increase their production capacity.
Corporate actions require further increase in working capital.

Product guidelines

A continuous manufacturing strategy leads to stocking in the off-season, which

exposes the company to higher inventory costs and losses. As a result, if the costs
and risks involved in maintaining a fixed production plan are significant, a company
may decide to adopt a strategy of adjusting its production schedules to meet
changing demand. Firms with manufacturing capacity used to produce a range of
products can benefit from diversification and solutions to their working capital
problems. They produce the original product line when there is high demand and
during slow periods, but they may also produce other goods to utilize their own
labor and material resources.

Price changes

Changing price levels make it difficult to perform financial management functions.

He has to predict how changes in price levels will affect the firm's requirement for
working capital.

A business often needs to maintain a higher level of working capital when price
levels are high. When prices rise, investments should be made at a higher rate than
current assets.

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A business often needs to maintain a higher level of working capital when price
levels are high. When prices rise, investments should be made at a higher rate than
current assets.

However, firms that can quickly raise the prices of their products do not have a
serious problem of working capital. In addition, because individual prices fluctuate,
the consequences of an increase in the overall price level are perceived differently
by firms. While some companies may not suffer due to price hike, others may suffer
severely.

Company credit policy

Working capital is influenced by the company's credit strategy through the amount
of book debt. Customer credit terms may be subject to the company's industry
standards. However, the company is free to customize its credit policy while
adhering to accepted industry standards and procedures. Credit terms are granted
to customers only at the Company's discretion.

Customers may be offered different terms based on their own circumstances. A

generous credit policy with no further payments. The company must collect on
time. A long collection time keeps money in debt on the books.

IMPORTANCE OF WORKING CAPITAL:

One of the most important aspects of financial management is working capital

management. In the current economic climate, business faces intense competition
from various sources. Effective use of available resources is absolutely necessary

for the continued survival of a company or organization. The objective of working

capital management is to deploy existing assets as profitably and risk-effectively as
possible.

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In India, working capital is total assets or 60% of total assets or total working capital
of large and medium enterprises. Therefore, working capital management should
receive constant attention of the finance manager. A working capital manager has a
significant impact on the success or failure of overall industry operations.

INTRODUCTION TO FINANCE:

Gutman and Dougal define corporate finance as the process of planning, raising,
managing and managing the finances utilized in an organization.

The phrase “funding” refers to the capital required for a project, particularly the capital
required to launch a new firm. The financial standing of a firm is regarded as its main
assets. This is because finance is one of the fundamental cornerstones of all different
kinds of economic processes in the modern economy. A request for finance is made
after taking into account the business’s starting idea. The proverb “work is to make
more money, but only under the right management, as a result, good financial
management goes hand in hand.

FEATURES AND CHARACTERISTICS OF FINANCE

Finance is the soul of economic activities. To perform any economic activities, certain
resources are needed which are to be pooled in terms of money. Every business, big or
small, needs financing. Compared to mega business ventures, small business
enterprises require less money. Depending on the type of activity to be financed,
business financing may be short-term that includes the calculation of financial demand
for undertaking and raising the required funds. Finance plays a very important role in
making an organization successful.

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And it is a starting point of every business activity. It plays a crucial role in facilitating
economic activities, managing resources and ensuring the efficient allocation of funds
for individuals and organizations. Finance is regarded as science as well as an art. It is
the soul of every business and basic requirement for starting and running business.
Business finance is the lifeblood of business. There must be continuous flow of funds
in and out of a business enterprise.

Finance makes the wheels of business to run smoothly. In these modern days, finance
is one of the foundations of economic activity of mankind.

Features:

1. Risk Management :

Finance involves assessing and managing risks to achieve financial goals

effectively.

2. Investments :

It deals with the allocation of assets and resources to maximize returns while
considering risk tolerance.

3. Budgeting :

Finance helps in creating budgets to plan and allocate resources for individuals,
businesses, and governments.

4. Financial Markets :

Involves the buying and selling of financial instruments like stocks, bonds, and
derivatives.

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5. Financial Institutions :

Banks, credit unions, and other entities play a crucial role in facilitating financial
transactions and services.

6. Financial Planning :

Involves setting financial goals, creating a roadmap to achieve them, and adapting to
changing circumstances.

7. Corporate Finance:

Deals with financial decisions within a corporation, such as capital structure and
investment strategies.

8. Personal Finance:

Concerns individual financial management, including budgeting, saving, and

investing.

9. Finance:

A financial tool used for risk mitigation, providing protection against potential losses.

IMPORTANCE OF FINANCE:

➢ The importance of finance has expanded as business activities are now

permanently organized into organizational forms of business enterprise .
➢ The importance of financing has been affected by the increase the size of the
company and the scope of business activities resulting from the growth.

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➢ One reason financing is so important is the wide spread of business ownership

➢ One factor contributing to the importance of finance is the separation of
ownership and management found in corporate forms of commercial
enterprises.
➢ One reason for the important of finance in contemporary business is the capital
– intensive mode of production.
➢ Access to finance is crucial for businesses to expand, launch new products, and
enter new markets. Investors, both individuals and institutions, play a vital role
in providing capital for growth.

1. Capital Allocation :

Finance helps in the efficient allocation of capital by directing funds to productive

activities. It enables businesses to invest in projects, research, and development,
fostering economic growth.

2.Business Operations:

Companies rely on finance for daily operations, covering expenses such as payroll,
utilities, and raw materials. Proper financial management ensures smooth business
functioning.

4. Risk Management:

Finance assists in identifying and managing risks. Tools like insurance and financial
derivatives help individuals and businesses mitigate potential losses.

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5. Personal Finance:

On an individual level, finance is essential for managing budgets, saving for goals, and
planning for retirement. It empowers people to make informed decisions about
spending, investing, and debt management.

6. Economic Stability:

A well-functioning financial system contributes to economic stability. Banks and

financial institutions play a key role in ensuring liquidity, stability, and efficient
functioning of the economy

7. Government Funding:

Governments rely on finance through taxes and borrowing to fund public services,
infrastructure projects, and social welfare programs. Public finance is crucial for the
overall well-being of a society.

8. Innovation and Entrepreneurship:

Finance supports innovation by providing funding for research, development, and

entrepreneurial ventures. Start-ups and small businesses often depend on access to
finance for their ideas to flourish.

The importance of benefit of finance may be considering in three

different heads they are

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➢ Importance or benefits to business units

➢ Importance or advantages of financing for investment
➢ Importance or benefits to society

TYPES OF FINANCE:

• SHORT TERM FINANCE

• LONG TERM FINAN

Short-Term Finance:- Short-term finance refers to the funding and financial

activities with a relatively brief time horizon, typically less than one year. It helps
businesses meet their immediate operational needs, such as paying bills, managing
inventory, or handling unforeseen expenses. Examples include trade credit, bank
overdrafts, and short-term loans. financing required by a company to purchase raw
materials, pay wages and cover other day-to-day manufacturing costs in the company.

Long Term Financing: Long-term finance refers to funding or capital investment

with a maturity exceeding one year. It is often used for significant projects or assets,
such as infrastructure development, real estate, or large-scale business expansions.
Common sources include bank loans, bonds, and equity financing. financing required
for a period of five to twenty years, usually longer than five years, and is required for
financing fixed capital.

Funding Sources: A funding source refers to the origin of the money used to finance
a project, investment, or business activity. It can come from various channels such as
equity, debt, government grants, or other forms of capital. The choice of funding source

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can impact the cost, risk, and terms associated with the funds obtained, any type of
corporate finance can be obtained through various sources.

Sources:-

• Stocks
• Preferred shares
• Bonds and Debt Notes
• General Deposits
• Internal resources
• Leasing
• Grants and Subsidies

FINANCIAL MANAGEMENT:

• Financial management is the measure of success and failure of organizational

financial management. It is a unique practice in economics that includes
• Money management
• Control and reporting system
• Financial costs and management accounting
• Tax planning
• Budget specifics.

Financial management involves planning, organizing, directing, and controlling an

individual's or organization's financial activities. It includes budgeting, investing, risk
management, and monitoring financial performance. Creating a detailed plan for
income and expenses to ensure financial stability and achieve financial goals.

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Ensuring a study and healthy cash flow to meet daily expenses and financial obligation

Allocating funds to different investment vehicles such as stocks, bonds, and real estate
to generate returns and build wealth over time.

Identifying and managing potential financial risks through methods like insurance and
diversification.

Developing a comprehensive strategy to achieve short-term and long-term financial

goals, including retirement planning and education funding.

Ensuring there's enough cash to cover day-to-day expenses while optimizing the use of
surplus funds.

Strategically managing and reducing debts to improve overall financial health.

Regularly assessing financial statements and performance indicators to make informed

decisions.

Additionally, it is important for operating managers to understand that financial

management goes beyond simple accounting management. Financial choices such as
how to obtain financing loans, retain profits, make investments, use cash, etc. are made
along with accounting.

FUNCTION OF FINANCIAL MANAGEMENT:

• Assess financial needs

• Acquisition of financial resources
• Allocation of funds in business
• Management of fund allocation

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• Corporate Performance Analysis

• Fundraising at the facility
• Financial planning
• Budgeting
• Cash flow management
• Risk management
• Capital structure management
• Investment decision
• Financial control
• Financial reporting

INDIAN FINANCIAL SYSTEM:

A set of interrelated activities and services used in an economy to achieve a specific

objective or goal.

The objective of the financial system, according to its mission statement, is “to provide
financial resources to the various economic sectors and activities that promote the

maximum possible use of resources without the adverse effects of price level
adjustments or unwanted interference with human aspirations. ."

The economy's main goal is to "provide a link between saving and investment to allow
for the creation of new wealth and portfolio adjustment in existing wealth creation."

A network of institutions, markets, and tools that are connected in an orderly manner
make up a financial system, which serves as the primary vehicle for transforming
savings into investments.

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The financial industry can be broadly classified into the following categories.

• Organized sector
• Unorganized sector

A regulated economy consists of the following sub-systems:

1) Banking system
a) Public sector
b) Private sector

2) theka operating system

3) Money market
4) Companies/Financial Institutions.

▪ The importance of financing is affected by the increase in company size and

scope of business activities.
▪ One plausible reason for the importance of finance can be found in the wide
spread of business ownership.
▪ One factor contributing to the importance of finance is the separation of
ownership and management found in corporate forms of commercial
enterprises.
▪ One reason for the importance of finance in contemporary business is the
capital-intensive mode of production.

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The value of economic benefits can be considered in three

different areas:

• Importance or benefits to business units

• Importance or advantages of financing for investment
• Importance or benefits to society

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Chapter – 2
Company profile

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MARUTI SUZUKI COMPANY

COMPANY PROFILE

RNS Motors Ltd – We proudly introduce ourselves as one of the largest Maruti Suzuki
dealer network having a unique identity. Rama Nagappa Shetty is an entrepreneur and
educationist. In 1961, Rama Nagappa Shetty laid the foundations of the R N Shetty and
company, a partnership firm. During the next four years, the company took up
construction of three major projects-building bridges on the Honnavar – Bangalore
Road.

RNS Motors was established in the year 1995 and is a part of the R N Shetty group of
companies, Global headquarters for RNS Motors is located in Bangalore, India.

R N S Motors commenced its operation in the year 1995 as an authorised Maruti Suzuki
dealership in HUBLI Karnataka and since from 8 different cities in Karnataka catering
to our customers’ needs from 21 locations

One step closer to serve our customers we are now present in Bangalore, Hubli,
Dharwad, Bijapur, Murudeshwar, Gadag, Sirsi and Haliyal.

Rama Nagappa was an Indian entrepreneur, philanthropist and educationist. He was

the owner of RN Shetty Group of companies, including RNS infrastructure, RNS
Maruti Suzuki (RNS Motors)

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Maruti Suzuki India Limited (MSIL), a subsidiary of Suzuki Motors corporation,

Japan, is India’s largest passenger car market. The company is engaged in the business
of manufacturing and sale of passenger vehicles in India.

RNS Motors private Limited is a private incorporated on 16 september 1998. It is

calculated as non-government company and is registered at Register of companies,
Bangalore.

Its authorized share capital is RS.10,000,000 and its paid-up capital RS. 2000. It is
involved in Architectural, engineering and other technical activities

The present variant of Suzuki logo is designed in red and blue colours. The red colour
represents passion, integrity and tradition , while the blue stands for excellence and
grandeur

Maruti suzuki Ltd is an Indian company specializing in the manufacturing, sale, and
service of automobiles. It is the largest automobile company in India and is
headquartered in New Delhi. In 2024, Maruti suzuki employed 16,259 people, a 0%
change from the 16,259 number of employees in the previous year.

Maruti Suzuki was established in 1981 as a joint venture between the Indian
government and Suzuki Motors corporation. The company aimed to produce
affordable, reliable, and user-friendly cars for the masses in India. Initially,

Today, Maruti offers more than 15 different models, ranging from compact cars to
multi-purpose vehicles and luxury sedans.

Maruti Suzuki India Ltd is a market leader in India, as the majority of cars sold annually
in India are from maruti. The company not only focuses on the Indian domestic market
but has also conquered international markets.

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Maruti Suzuki India pays a quarterly dividend. This is distributed in the months of
September. Maruti Suzuki India paid dividends every year for the past 23 years. The
dividends of Maruti Suzuki India are distributed in INR.

PRESENT MARKET SCENARIO:

Looking back over the year just gone is always an absorbing experience. 2007 was
another eventful one in an industry at the forefront of some of the mega trends of our
time. Developing countries with big populations are irresistible to many firms looking
for new customer and low-cost suppliers. China’s Market kept on growing, but
attention moved increasingly to India also .

If low-cost cars are the key to these markets, Renault’s Logan has stolen a march. But
that’s far from the end of the story. Ratan tata’s imminent 1-Lakh car could be another
very important chapter and Renault itself wants to do a smaller ‘son of Logan’.

In India the first car ran on the streets of Mumbai in 1898. Today more than1 million
cars are being sold in India every year.

Every Indian dream of owning a car. The purchasing power of consumers has increased
rationally. The demand of passenger cars has surged as compared with the previous
years. Now Mahindra and Mahindra India is a huge potential market for many global
players. Domestic players like Maruthi Suzuki, Tata and facing a tough competition in
the market. The demand of passenger car has shown in figure.

Maruti also has a strong presence in the service sector. The company operates over
3,000 services centers in India and claims to have one of the best customer loyalty

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strategies in the industry. Maruti believes in proactive maintenance to ensure longevity

and maximum customer satisfaction .

As part of its sustainable business model, Maruti is also committed to developing

environmentally friendly technologies. The company is working to reduce the
emissions of its cars while improving performance and reliability. Maruti has already
introduced a range of hybrid and electric vehicles and is advocating for a green future.

Maruti Suzuki India Ltd has five production facilities in India and has partnered with
the Japanese automotive giant Toyota to produce hybrid and electric vehicles in India.
The company also has a strong presence in the export business, operating in the Asia-
pacific, Europe, and Latin America regions.

In conclusion, Maruti Suzuki India Ltd is one of the leading automobile companies in
India, known for quality, reliability, and genuine Indian designs. The company has a
wide range of products, from affordable compact cars to luxury sedans. With its focus
on customer service and sustainability, Maruti has established itself as a trusted and
respected name in the Indian automobile industry.

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HISTORY

The development of the automobile is one of the most important and fascinating
chapters in the history of transportation. More than 400 million people spend their lives
traveling for pleasure. Cars are often called "cars" in the United States. They are
sometimes referred to as cars in Britain and many other countries.

Western Europe, the United States, Canada and Japan produce the most cars in the
world. The automobile has dramatically changed lifestyles in every country. Thanks to
the development of the automobile, city dwellers can now take fun vacations in the
country or drive to visit relatives who live far away.

Before the invention of the automobile, people often traveled short distances by
walking or cycling. Longer distances were traveled by train, tramway or horse-drawn
carriage. In fact, early cars were referred to as "homeless wagons".

The European car appeared first. However, America first became an important means
of transportation. The majority of European cars are very expensive and hand built. It
was only available to the wealthy.

In the late eighteenth century, the development of steam-powered engines made rapid
progress in Europe. An autonomous vehicle called the "homeless buggy" was a figment
of inventors' imaginations, and steam seemed the most plausible power source.

In 1769 and 1770, French military engineer Nicolas-Joseph Cugnot built the first self-
propelled road vehicles. The rest were three-wheeled steam tractors for pulling artillery,

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while one was meant for transporting people. Four-wheeled, steam-powered,

passenger-carrying road vehicles (steam cars) were tested by Richard Trevithick of
England in 1801 and 1803. However, he lacked funds to continue his mission.

Competition between railways and coach companies led to the failure of many
initiatives in Britain to promote the use and development of mainstream cars. The Red
Flag Act of 1865 effectively halted motor development in Britain for 30 years.

Steam cars have many disadvantages. The fire took a long time to heat up the boiler
first. This problem was solved by the inventors, but others continued. Since steam
engines were good for cars and provided the necessary power, they had to be high
pressure engines.

Initially, electric cars were more popular than steam cars because they were powered
by batteries. Being quiet, easy to use and free of unpleasant pollutants, electric vehicles
are rapidly gaining popularity. However, the range and speed of electric cars are limited
by the batteries. Only a few electric cars can reach speeds higher than 32 km/h and the
batteries need to be recharged at least every 80 km.

The development of the internal combustion engine led to the creation of the modern
gasoline-powered automobile. Early internal combustion engines were fueled by gases.
An engine powered by hydrogen and air was invented in 1820 by British inventor W.
Cecil.

The first efficient four-stroke petrol engines were created in 1885 by two Germans,
Gottlieb Daimler and Karl Baynes, both working independently. France is where the
main design of today's cars was created. Emil Laves and René Panhard, two partners
in the transport business, designed the first car in 1890 It was powered by a Daimler
engine.

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Ransom E., Henry Ford and other inventors began mass-producing automobiles in the
early 1900s. The arrival of the new car was hailed by many as it got rid of street waste,
which had an unpleasant odor and attracted disease-carrying insects. While some
scorned the homeless bandwagon, others welcomed its first entry. People no longer
have to worry about caring for horses or limiting short trips.

The number of vehicles in the United States now exceeds that of any other country by
nearly 130 million. The United States, Australia and France have one in two each. Japan
and the United Kingdom have one car for every four people, respectively.

Other auto-producing countries are Germany, Japan, France, Italy and Spain. In
addition, there are auto industries in Australia, the Czech Republic, India, South Korea,
Malaysia, Sweden, and the United Kingdom.

IMPORTANCE OF CARS

People's lifestyles across the globe have been significantly impacted by the invention
of the vehicle. No other technical advancement, invention, or innovation can cause such
significant or quick changes in civilization.

Influence on Society Many individuals moved more because of the vehicle. Vehicles
have an impact on people's lifestyles, including where they live, work, and spend their
free time. In the United States, the vehicle started to fundamentally alter people's lives,
and it has subsequently expanded to many other industrialized nations. Urban
employees used to go to their workplaces on foot, by bicycle, by rail, or in a horse-
drawn carriage before the development of the vehicle.

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The independence that came with having a vehicle, however, caused more people to
move to the suburbs as the 1920s went on and the number of cars on the road rose. By
the middle of the 1950s, manufacturers also started to move to the suburbs.

Economic impact: The automobile industry employs millions of people in

industrialized countries, including the United States, Japan, Germany, the United
Kingdom, and Italy. Batteries and grades are still important even in industrialized
countries with little or no auto industry. They carefully examine the traffic lights, the
number of lanes, road junctions and ramps to major roads.

CAR INDUSTRY

Ninety percent of the vehicles on the planet were produced in the United States in the
early 1920s. It reached about 20% by the end of the 20th century. However, since the
1920s, American production has generally increased. World production skyrocketed
from about 101.2 million cars in 1950 to more than 45 million in the 1990s.

The two largest automakers are Japan and the United States. From 1980 to 1983, Japan
overtook America in passenger car production. It regained the number one spot in 1987
and still holds it. The United Kingdom and Germany are two other important
manufacturers. Car markets are often the largest in countries that produce the most cars.
The largest car market, by far, is in the United States. Japan, Italy and France are among
the most backward countries.

The well-known British luxury automobile brand Rolls-Royce has been in continuous
operation since 1904. The first British automaker to copy Henry Ford's mass production
techniques was William Morris. Volkswagen's invention had a significant role in
Germany's success on the international market. Germany became the second-largest
vehicle manufacturer in the world in 1960

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surpassing Britain and France because to the success of businesses like BMW and
Mercedes-Benz. His primary competitors were Japan and Italy.

Honda, a motorcycle company that started in the automobile industry in 1962, is one
of the leading automobile manufacturers in Japan. Nissan, Toyota and Mazda, which
bought Chrysler in 1982. Nissan was founded in 1915, but until 1931 it exclusively
manufactured cars. When they opened their facilities in Sunderland, Britain, they made
history as the first Japanese automaker to produce cars in Europe.

General Motors, Ford and Chrysler are the "big three" automakers in the United States.
About 200 large companies are its largest suppliers and thousands of smaller ones.

Under several brand names, each company manufactures a range of vehicles and light
trucks. Through the heavy consumption of other industries' products, the automobile
sector also contributes to the economies of many countries.

industries. For example, an average car requires 770 kilograms of steel, 180 kilograms
of iron, 110 kilograms of aluminum and 60 kilograms of rubber.

The advantages of cars and other gasoline-powered vehicles for military use were
demonstrated during World War I (1914-1918). The value of mass manufacturing
techniques in the automotive sector also emerged during the war. The 1920s saw
tremendous growth in the automobile industry. For the most part, working conditions
are favorable and employment is plentiful.

Maruti Udyog Limited (MUL) was established in February 1981. by Parliamentary Act.
A public limited company, Maruti Udyog Limited was established in accordance with
the Companies Act of 1956. A joint venture between the Government of India and the
Suzuki Motor Company of Japan is called Maruti Udyog Limited.

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Suzuki Motor Corporation was selected from seven potential global partners. In
October 1982, Suzuki Motors and the Government of India signed a licensing and joint
venture agreement.

The Indian automobile sector underwent changes in December 1983. To create the first
affordable car for the average Indian, Maruti has partnered with Japanese Suzuki.

In the ten years ending 1983, the Indian automobile market remained unchanged at
30,000 to 40,000 vehicles.

Every Maruti vehicle is loaded with value-added features. They are designed to be as
fuel efficient as possible and require very little maintenance, so we get exceptional
quality at an affordable price.

Maruti Udyog Limited has created history by starting production of cars at a record
level in 13 months. On December 14, 1983, Smt. Indian Prime Minister Indira Gandhi
inaugurated the country's first car by handing over the keys to a Maruti 800 to Mr.
Harpal Singh of Delhi.

In 1993, Maruti Udyog Ltd sold up to 1,96,820 units, exceeding its forecast in terms of
volume. Maruti entered the Indian auto market in March 1994, becoming the first
Indian company to produce a car for the country's largest automaker. Maruti is
committed to providing affordable, high quality and fuel-efficient cars. With Japanese
technology optimized for Indian conditions and car consumers, the Maruti 800 offers a
wide range of models across market segments.

Maruti recently announced Rs. 4 billion expansion projects at the existing site will
increase the total manufacturing capacity to over 3,20,000 vehicles annually. The move
was taken to counter the growing competition. In addition, it has plans to modernize
the existing infrastructure and increase its capacity to 100,000 units in 1998-1999. The
company produces more than 4,000,00 cars annually.

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Core values

Customer Obsession

• Speed, flexibility and first step

• Innovation and creativity Networking and sharing

• Openness and learning

Vision of Maruti Udyog ltd

• To be a leading company in the Indian automotive industry

• Creating customer satisfaction and shareholder wealth

Strengths of Maruti Udyog Limited

• Experience in small car technology

• Extensive product portfolio.

• High quality products.

• Extensive sales and service network.

• Brand strength.

• Integrated manufacturing facility.

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Maruti Udyog Limited

Suzuki's small car technology has been blended in Maruti vehicles in successful ways.
Suzuki is an industry leader in small car technology and that leadership is reflected in
every Maruti model. A technique that has perfected the art of maximizing time as little
as possible to provide an interior worthy of a small car

1. Durability of venues and performances:

This is an example of extraordinary technical expertise that has led to the creation
of a completely new class of new cars worldwide.

2. Reliable caliber:

We must mention that Maruti is associated with reliability as its client base
expands to over 2 million. It is also an automobile manufacturer that constantly
improves its offering to meet your evolving needs as well as the needs of the
times.

3. Wide variety to suit every need:

Maruti is now the only Indian automaker to guarantee its customers a wide
variety of cars to suit their varied lifestyles.

Largest network:

With 178 Maruti Showrooms and 1029 Maruti Authorized Service Locations spread
across 488 cities, the company has a strong support network to deliver world-class

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service. Offering a state-of-the-art workshop, genuine Maruti components and 30,000

qualified employees, Maruti is designed to be worry free.

THE MANAGEMENT TEAM

The key people of Maruti Udyog limited

• Chairman- R C Bhargava
• Managing Director-Hisashi Takeuchi
• Director for Marketing and Sales- Vinay Pant

PASSENGERS CAR MARKET IN INDIA

VOLKSWAG EN
16%

TATA
6%

HUNDAI
6% MAHINDRA
53%

TOYOTO
15%

KIA
4%
MAHINDRA KIA TOYOTO HUNDAI TATA VOLKSWAG EN

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REPRESENTATION OF SALES AND PAT

400000

350000

300000

250000

200000

150000

100000

50000
2012- 2013- 2014- 2015- 2016- 2017- 2018- 2019- 2020-
13 14 15 16 17 18 19 20 21
NET SALES 120034 145922 178603 203583 289585 358490 347059 426125 426488
PAT 11891 15620 17308 12187 24976 22886 16352 23921 27830

MARKET SHARE OF PASSENGERS CAR

IN NOV 2022

1% 1%
2% 1% 0%
2% 1% MARUTHI SUZUKI
4%
HYUNDAI
8% 41%
TATA
10%
MAHINDRA
14%
KIA
15%
TOYOTA
HONDA
RENAULT

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SWOT ANALYSIS OF MARUTI SUZUKI

Maruti Suzuki is the market leader and a well-known brand in India. Maruti is
renowned for the services it provides and is linked to the Maruti800, the nation's first
compact automobile. The benefits, drawbacks, strengths, and threats of Maruti
Suzuki are listed in the SWOT analysis that follows.

STRENGTHS :

Maruti Udyog Limited (MUL), which has a 48.74 percent market share,is the industry
leader. The greatest after-sales service in the nation and MUL's dealer center network
are two of its key advantages. MUL uses an effective marketing plan to spread the
word about its goods to the general audience. In terms of sales, Maruti Suzuki
outperformed all other local manufacturers, moving 9,66,447 units as opposed to
7,65,533 the year before. It exceeded the threshold of 10 million domestic sales.
Strong brand value and a loyal client base are two key benefits for MUL.About 15
different models of automobiles are offered by Maruti. Sales of the Alto continue to
lead the small vehicle market, and Maruti has a strong array of fuel-efficient cars,
including the Swift, diesel, and Alto. MUL was the first carmaker to begin offering
pre-owned vehicles for sale with its True Value division.

Because MUL dominates the market, after-sales servicing is a significant source of

income.

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WEAKNESSES :

• Subpar interior quality as compared to high-end producers like Hyundaiand other

foreign competitors like Volkswagen, Nissan, etc.
• The ownership of MUL as a consequence of government involvement.

• New multinational brands have become quite popular among younger

generations.
• There is tension in the company's relations with the unions. Sales havesuffered as
a result of the recent industrial slowdown caused by labour strikes.
• Maruti has not made a name for itself in the SUV industry, in contrast to other
rivals.

OPPORTUNITIES

• MUL made a smart choice by offering an LPG version of the Wagon-R

• MUL may start working on electric vehicle development as a superior fuel option.
The Maruti Scervo 600 is a significant competitor to the Nano and has a great deal
of potential to win over mid-range buyers.

• The new Maruti DZire is anticipated to increase market share and perform
similarly to the Maruti Esteem (now out of stock). Market possibilities in the
United States and the United Kingdom are being revived by the company's export
potential. The administration is working very hard to raise the GDP to double
digits, and the economy of the nation is continuously growing.

THREATS :

• Because of several tiny businesses like Volkswagen Polo, market share has been
lost by large giants like Maruti Suzuki, Hyundai, and Tata.

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• The Figo significantly boosted Ford's market share.

• Similar to how Tata Motors debuted the Nano in 2012, the Indigo e-cs poses
significant difficulties for each competitive market area.
• Given that China also plans to join the Indian car industry, the debut of the
Hyundai H800 may be to blame for the decline in Alto sales.

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