A project report

on finance of Maruti cars

at

Kiran Motors Limited

Submitted to :

NRIBM,

in partial fulfillment of MBA-course.

Submitted by:

Nilofer ajmeri

Date: July 23, 2004

Preface

Today’s modern world is progressing by leaps and bounds. In this fast changing world

management of business is very important phase.

The course of MBA gives great knowledge to the students. Summer training is also a

part of the MBA course. The training enables the student to understand how they can apply

their theoretical knowledge in practical world. It helps us to develop our leadership skills,

communication skills, analytical skills and so on.it presents a unified picture of what

management is and how it is applied to various forms of human endeavor.

I got the opportunity to work with Kiran Motors Limited, the second largest dealer of

Maruti Suzuki in India. This project report gives details about maruti udhyog. It also gives

detailed information about car finance. An over all view of finance industry presented in the

report gives better idea about different options available to customers. Also the current

scenario of automobile industry is reflected in this report.

After reading the project report one will be able to know how small firms undertakes it’s

operations.

Acknowledgement

This project report has been prepared with the help of many people without whose support and co-operation this report could not have been accomplished fully.

I am deeply thankful to Mr. Ankit Desai the Branch manager of Kiran Motors Ltd – Rajpath for his guidance in preparing this project. I am also thankful to Mr. Baiju Executive of Standard Chartered Bank who provided detailed information about the financial facilities available to different types of customers.

Last but not the least I would like to thank all the sales executives, counter executives, receptionist, and insurance agents working at Kiran Motors Ltd. Who helped me a lot by providing me minute details about the working of KML.

Ajmeri Nilofer M. Roll No.: - 03002.

Index

Car finance

Ever since the Indian passenger car industry was de - licensed in 1993, the market has

witnessed a veritable explosion of innumerable car models vying for our attention in an attempt

to woo the customer.

Almost every car manufacturer – till date – is offering various permutations and combinations

of their model product portfolio, resulting in a plethora of variants, which at times can be pretty

bewildering for – the – average – car – buyer.

When a customer walks into any car showroom he will find various models. Any single model

will have at least 5 to 8 different variants – distinguished by equally cryptic sounding trim level

names – such as LX, VX, DX, PS, EL, FS, SP, Lxi, EX+, Di – it makes the customer feel that

there is something different in each model and the customer can make comparison on the

basis of it.

Manufacturers will tell that they are offering the customer choice. They will tell that they have a

model and a trim level for each and every customers’ tastes – to suit every budget, to cater to

any level of customer taste.

But the main point here is, have the dealerships and most importantly - dealer sales staff –

kept pace with the rapidly changing dynamics of the car market? Are they in a position to

clearly make the customer understand and to differentiate to them as to which model carries

what attribute??

Apart from a handful of dealers in India, the bulk of them – cannot differentiate between a

steering wheel and a spare wheel – forget about convincing the customer enough to make him

write out a cheque to buy a higher priced model or a higher trim level variation of the same

model – on product attributes alone.

The lack of incisive and in - depth sales knowledge on the part of dealer staff is worrying to say

the least. Apart from mouthing the usual banalities – most of which you find on the product

leaflet anyway – dealer sales personnel offer precious little addition to their sales blabber to

invite the customers’ attention enough.

Thus what happens is that the customer decides on a model – which probably has been drilled

into his mind because his friend or mechanic has suggested that model to him – and he

proceeds to write out the cheque for that car only. The bargaining then boils down to the most

competitive financing package and the amount of upfront discount the dealer can give as well

as any freebies along with it.

It’s about time car manufacturers in India understand that in a market already facing

oversupply and idle production capacity – the last differentiator – the last bastion of innovation

- is in the area of vehicle retailing.

Dealers are the first point of contact the customer has with a car company and no effort must

be spared to make sure that dealer personnel are some of the best human talent that the

company recruits. Merely planting pretty ladies in itsy – bitsy skirts and flashing ‘Toothpaste –

Ad’ smiles – are not going to win the sales sweepstakes.

What is needed is knowledgeable individuals – possessing not merely selling skills – but with

the capability to conceptualize, strategizes, implement and finally execute a well rounded sales

plan.

Why the bulk of car dealer sales personnel lack these qualities are quite easy to explain.

Most car dealership selling activity in India suffers from a perceptual problem. It is still viewed

as ‘infra – dig’ by people – especially by fresher and B- school grads – as having not enough

glamour appeal to work there. Hence there is a lack of proper personnel even wanting to work

at these places.

Secondly – almost all car dealerships in India are closely held family owned businesses – and

the promoters of these businesses lacks the professional vision which they ideally should

posses.

Thus they offer pathetic pay packets to sales personnel – translating to inadequate incentives

– whom are not enough to retain and or recruit new knowledgeable people.

And lastly – one has to realize that selling cars is a very, very specialized task. Its not similar to

selling fast moving consumer goods such as soaps and toothpastes!!

Car retailing requires a deep understanding of the industry, the technicalities involved in the

product as well as a certain degree of affection for the automobile to make a convincing sales

pitch. Product knowledge - of the car salesperson - is perhaps the most indispensable tool

which he / she can possess at all times and should utilize it to its fullest potential.

The car industry in India today is at a crossroad. With a market size which has still a fair way to

go before hitting the million units mark, and with quality and reliability levels of cars rapidly

converging – the only area left in which to innovate is in the sphere of effective retailing – and

the sooner the manufacturers do something about this the better.

Precautions before taking finance

Before the customer start shopping for a finance scheme the customer need to do two things:-

Check his bank balance and decide on how much down payment he.

Remember that it's always better to pay a higher down payment if the customer can afford it

since it turns out to be cheaper in the long run.

Look at the income stream and get a fix on the instalment that he will be

able to pay (monthly or quarterly) without disturbing his current lifestyle and for how long.

Armed with these figures the customer can start looking for a financier, either by responding to

their ads, or by signing up on some of the websites that offer match making services between

financiers and potential clients.

Have enough time on the customer’s hands whilst searching for the customer finance scheme.

Rushing into finalizing a scheme is a cardinal sin and the customers are likely to end up paying

more. Call from quotes for as many financiers as possible. Shortlist a set of at least 3

financiers based on the initial quote and then negotiate with them on each component of the

scheme. Armed with the rudimentary knowledge about car financing the customer will be able

to ask the right questions and get the best deal.

Remember not to fall for longer tenure lower installment schemes, because eventually the

customer pay a higher interest amount and more often than not, the market value of the

customer’s car depreciates much faster, than the rate at which the customer have been retiring

the principal. Also, do not fall for the 0% interest schemes, since if the customers are not

paying the interest, then someone else is and it is usually the manufacturer in the form of a

discount to the financier. Once the customers are able to get a handle on the discount amount,

the customer can work out a scheme better suited to the customer’s requirements.

In today's world, the consumer is King. Two individuals availing a finance scheme from the

same source can get different deals. So negotiations can go a long way to get the customer

better deals.

Kiran motors limited

Kiran motors limited is one of the biggest Maruti dealers in India. The first branch of Kiran

Motors Limited was started by Mr. Kiran. It has 9 branches in Gujarat. Kiran Motors Limited

deals with the product of MARUTI SUZUKI. Different cars of Maruti are sold at km. In

Ahmedabad it has got six branches, one warehouse and two service stations. The details

about Kiran Motors Limited are as follows.

Branches:

Ahmedabad:- Kiran Motors Limited has got six branches with one head office in ahmedabad.

Its branches are :

Mithakhali Branch

Bapunagar Branch

Nehrunagar Branch

Rajpath Branch

Maninagar Branch

Navrangpura Branch

Baroda:- Kiran Motors Limited has got one branch at Baroda.

Surat:- Kiran Motors Limited has got two branches at Surat.

0rganisation chart

Managing director

General manager

Branch manager

Sales Counter Inquiry Receptionist

executive executive manager

Objectives and operating principles.

A company has to know what it wants to accomplish. What are management’s real goals? A

first step, therefore, is to develop and set forth clearly the company’s management philosophy

and objectives.

Objectives: - Objectives of Kiran Motors Limited are

To provide customer with better services.

To build and maintain long term customer relationship.

To sale the product at most competitive prices.

To increase co-operation between different departments.

To build and maintain good relationship with the financers.

Operations at Kiran Motors Limited

Lines of authority and responsibility

1. There are to be definite, non-overlapping lines of authorit. There must be no

crossing of the lines of authority. At Kiran Motors Limited the line of authority is very clear. The

branch manager, the sales executives, the insurance people, supervisor at service station, the

counter executives, etc. knows the area in which they can take some decisions related to their

work.

2. one and only one person is to be responsible for the implementation of every

individual decision. At Kiran Motors Limited the branch manager is responsible for the

implementing the decisions at his or her branch.

Cooperative management

1. A number of properly organized, actively functioning, permanent committees must

meet promptly at regular, specified intervals, with additional meetings whenever required. At

Kiran Motors Limited managing director, branch manager, insurance department’s head,

inventory controller, supervisor of service station and executives of maruti udhyog limited

meet regularly to discuss the present working of their respective departments.

2. Each division head shall hold staff meetings. At Kiran Motors Limited whatever is

decided in the meeting is discussed with other executives of Kiran Motors Limited after the

meeting gets over.

3. Decisions by individuals and by groups are to be made promptly. At Kiran Motors

Limited the executives at junior level discuss about the decisions taken in the meeting and if

they agree with the decision then prompt implementation is made. And if they don’t agree, then

the decisions are discussed again and changes are made, if necessary.

Development Of Leadership

1. Every executive must have, at all times, a clear understanding and a complete

listing of the company’s general and specific objectives and policies, as well as the objectives

and policies which apply to his own division or department. At Kiran Motors Limited the sales

executives knows about the goal of Kiran Motors Limited and their individual goals. They

knows very well about their target to be archived. On an average a sales executive is given

target of eight to ten cars per month depending on their capacity and the market condition.

2. Every executive must consciously avoid waste of time. Meetings, interviews,

telephone calls, appointments, visits, and trips must be kept as short as possible consistent

with adequate results. Sales executives at Kiran Motors Limited are given the job to complete

an inquiry which is waiting to be completed. A record of customers is maintained and daily

work to sales and marketing people are given.

3. Executives should maintain a cooperative spirit and avoid jealously guarding the

prerogatives of their offices to satisfy personal pride. At Kiran Motors Limited the marketing

people and other executives helps new employee to achieve his target. Sometimes the out

side work like passing of vehicles are also done for new executive by the experienced

executive. Even the absenteeism of one employee is taken care by other employees.

4. Every executive should establish and maintain a dignified friendliness with each

member of his division or department. At Kiran Motors Limited the work environment is

informal, the employees at Kiran Motors Limited calls their peers and superiors by their first

name. Even people from two different departments behave like friends.

5. Every executive is to enforce strict discipline throughout his organization. Although

the executives behave in an informal way they enforce strict discipline in their work. The

executive comes on time, he starts his work immediately, he avoids absents, and also does

not leave before time.

6. Every executive is to train and encourage his subordinates to develop initiative. At

Kiran Motors Limited the subordinates are trained by their superiors. Sometimes even branch

manager gives the training to his executives. New executives who has to do field work are

guided by experienced executives, they takes the new executive with them in field before they

start working alone.

7. Praise is to be given wherever justified. At Kiran Motors Limited the executive who

performs outstandingly are given some monetary reward for their extra efforts. Even they are

given high position in the company.

Kiran Motors Limited’ achievement

Kiran Motors is one of the largest dealers of Maruti Suzuki. All the products of Maruti are

available at Kiran Motors. The following result shows Kiran Motor’s performance during the last

year.

Kiran Motors Limited’s performance from April 2003-March 2004

All India domestic sales

Rank Dealer name No.of vehicles sold

1 Popular-cochin 12725

2 Competent-Delhi 12349

3 Indus-cochin 10520

4 Sai-bombay 10398

5 Kiran-ahmedabad 9396

Maruti Zen

Rank Dealer name No.of vehicles sold

1 Swami-amritsar 2181

2 Competent-delhi 2152

3 Popular-cochine 1945

4 Sai-bombay 1789

5 Kiran-ahmedabad 1695

Rank Dealer name No.of vehicles sold

1 Popular-cochin 5805

2 Indus-cochin 4972

3 Vehcl-pathancot 4502

4 Kiran-ahmedabad 3959

5 Rohan-gaziabad 3858

Maruti 800

Insurance

The insurance of maruti vehicles is provided by national insurance all over India for both

domestic sales as well as export of cars.

Warrantee

It is a feature that makes the custpmer more satisfied about the expenses related to meet the

unexpected breakdowns.

Now the dealership will be the contact point for insurance of new policies, making

endorsements and renewal of old policy. Additionally, in case of an accident, the customer

doesn’t need to pay upfront for any repairs (except towards depreciation and compulsory

excess). Hence it will be near cashless settlements for the customers. Moreover, the dealer

will be responsible for initialing of carrying out all the accident related activities including

arranging of the survey and repair of the vehicle. The repairs are done using Maruti Genuine

Parts, adhering to strict quality standards (conditions apply). In case the vehicle is rendered

immobile, the dealer will provide towing free of cost cup to Rs. 1500/-). All these services are

available to the customer seamlessly across the entire MARUTI SUZUKI Dealership network.

Price

Price of Maruti are very competitive on the road cost in A’ bad is shown in the given price list.

Also the Ex. Stockyard price, RTO Tax, Insurance, Octroi, Registration fees, Municipal Tax,

etc. are also given in the price list.

Payment

The payment of nice of cars is very easy in the Maruti. It can be done in the following ways.

1. Cash Payment

2. Payment by loan. The loan facility is provided to customers of Maruti by several

banks, these banks also grants the customer discounts on loan. Loan can be available from 60

to 95% if the customer makes payment through loan than he will have to pay the amount of

down payment, which includes RTO Tax, Octroi, Registration Fees, Insurance, Margin Money,

& municipal Tax etc.

FINANCING OPTIONS:

Maruti has partnered with the top Finance companies in India, so that its customers get the

best possible service and rates. The alliance partner Finance companies for Maruti Finance

are Citicorp Maruti Finance Ltd. , Maruti Countrywide, ICICI bank, HDFC bank, Kotak

Mahindra, ABN Amro bank, Standard Chartered bank and Sundaram Finance

There are essentially three basic financing options available to the customer. Loan, Hire

purchase and Lease. Each of these options has individual merits to suit a particular kind of

borrower.

LOAN:

When the customer take a loan to buy a car, the customer is the registered owner of the car

and the financier creates a lien on the same as a security. The customer repays the loan

(principal) along with interest over a pre-agreed period (tenure) in the form of periodic

instalments. In case of a default in payments the financier has the option of invoking the lien

clause. Businessmen/self-employed persons and companies that use such a car for business

purposes can treat the interest paid on the loan as a business expense and also avail of tax

deductions against depreciation, in any accounting year. Loan agreements attract stamp duty

depending on the state in which they are executed.

HIRE PURCHASE:

In this method of financing, the financier purchases the vehicle on the customerr behalf. The

customer hire it out from the financier with the intention of buying it from him at the end of a

pre-determined period. In hire purchase, although the customer are the registered owner, the

car is hypothecated to the financier (an endorsement is made in the R/C Book) thereby giving

the financier the legal ownership of the car. The hypothecation is removed by a special

procedure (mentioned under documentation later in this article) after the instalments are fully

paid off.

For businesses/self-employed persons/companies, a car taken on hire purchase appears on

their Balance Sheet as an asset and they can get tax deductions against the interest paid,

along with the depreciation, in any accounting year. Please be aware that a hire purchase

transaction attracts additional sales tax, turnover tax, value-added tax, stamp duty, etc.

depending on the state in which the agreement is being signed.

LEASE:

In a lease, the financier leases out a car to the customer for a certain time-period, after which

the financier can either take back the car or sell the car to a third party. In effect, the customer

will not be the owner of the car either during the tenure of the lease or even after the lease has

been terminated. This is the technical definition of a lease and the customer may come across

several variants depending on the financier the customer are dealing with.

Lease is an attractive option for companies who are acquiring cars in the name of the company

to be given out to their employees, with the employees having an option of buying the car on a

later date at a nominal value. This helps the company is two ways. One the cars do not appear

as assets on the Balance Sheet of the company (cars are usually treated as unproductive

assets and best kept off the Balance Sheet), and two, the company can treat the entire lease

rentals paid (principal + interest) as a business expense and avail of substantial tax

deductions. However, under a lease, the financier, not the customer, claims MARUTI SUZUKI

the depreciation on the car.

Like hire purchase, a lease transaction attracts additional sales tax, turnover tax, value-added

tax, stamp duty, etc. depending on the state in which the agreement is being signed.

Documents required for the loan funding are as follows: -

Different documents are required for different type of customers. Ther customer can be of the

following type.

For salaried: -

A. Vanilla Scheme.

- General Documents

- IT returns of last 2 years or Form – 16 of last 2 years

- Bank statement of savings of last 6 months.

- Maximum Loan: -

For 1,2 & 3 yrs = Gross Salary x 1.5

4 yrs. = Gross Salary x 2

5 yrs. = Gross Salary x 2.5

B. High Equity

- General Documents

- IT returns if < 60,000 or proof of job which should show that the person

is employed from more than last 2 years i.e. appointment letter, or Electricity bill, or Form –

16 of last 2 years Bank statement

- Maximum Loan: -

Loan is available for maximum 4 years and maximum of 70% of the amount can be given to

candidate.

C. Privilege.

- General Documents

- Credit card of Standard Chartered Bank or track record of

another bank which shows the transaction with bank with respect to previous loan.

- Maximum loan :-

upto 90 % for 5 years.

For a Proprietor or Proprietory firm

A. Vanilla Scheme.

- General Documents

- IT returns of > 60, 000 last 2 yrs.

- Bank st. of current account of last 6 months.

- Loan available

Maximum Loan = gross Income x 5

B. High Equity

- General Documents

- IT returns if < 60,000 of 2 yrs. Or continuity proof – which shows the business is running

from last 2 years i.e. Electricity bill, or telephone bill

- Registration certificate if Income Tax certificate is not available

- Bank statement of current account of last 6 months.

- Loan amount

Maxi. 70 % of total amount for maximum of 3 years.

B. Previledge

- General Documents

- Credit card of Standard Chartered Bank or track record of another bank

Partnership: - If partner purchases with his own checks

A.Vanilla Scheme.

General Documents

IT returns of > 60, 000 last 2 yrs.

Bank statement of the firm of last 6 months.

Partnership deed.

B.High Equity

General Documents

IT returns or continuity proof showing 2 years continuity of partner.

Bank statement of the firm of last 6 months.

Partnership deed.

C.Previledge

General Documents

Credit card of Standard Chartered Bank or track record of another bank

Partnership deed

If Partner purchases with firm’s checks.

A. Vanilla

- General Documents- IT returns of partner of last 2 years. > 60,000.- Bank Statement of savings A/c- Partner ship deed- Authority Letter- IT returns of firm & parter’s capital A/c & Trading A/c, & P&L A/c, & B/S

or Audited Balance Sheet- J & S Paper

B. High Equity

- General Documents- Income Tax Returns of last 2 yrs. (proving continuity)- Partnership Deed- Authority Letter - IT return of the firm, Partner’s capital A/c, Trading A/c P&L A/c,

Balance Sheet, or Audited Balance sheet- Joint & several paper

C. Previledge

- General Documents- Credit card of SCB or track record of old (purchase of vehicle, home

etc. on loan)- Partnership deed

Partner ship firm

A. VScheme

- General Documents- IT returns of firm of last 2 yrs. - Bank st. of current A/c of firm of last 6 months

- Partnership deed- Authority Letter- Financial documents (Here, J & S Paper will not come)

B. High Equity

- General documents- IT returns of firm of last 2 years or CP proof- Bank st. of last 6 months of firm- Continuity proof (i.e. firm should prove that it is in existence since last 2

yrs. If it doesn’t have IT returns)- Partnership deed- Financial documents of firm (such as P&L A/c, Partner’s capital a/c,

B/s, or Audited B/s with 3cb-3cd form if to 40 lacs.- Authority Letter

C.Previledge

- General Documents (with documents of signing partner)- Credit card of SCB or Track record if any

Directors: - with individual checks

A. Vanilla Scheme

- General Documents- IT returns > 60,000 or F-16 form - Bank statement of last 6 moths of director’s account- Memorandum of Association

B. High- Equity

- General Documents- IT returns if not then continuity proof, which can be MOA; Form – 16,

or salary sleep of last 2 years i.e. which shows that the person is employed since last 2 years)

- Bank statement of last 6 months- MOA

C. Previledge

- General Documents- Credit card of SCB or old Track record- MOA

With company’s checks

A. Vanilla

- General Documents- IT returns or F-16 > 60,000- Bank statement of last 6 months- Director’s report- Joint & Several papers

B. High Equity- General Documents- IT returns or F- 16 form < 60,000- Bank statement of savings a/c of last 6 months- MOA - Board resolution - Audited B/s of last 2 year (with 3CB-3CD form if turn over > 40 lacs)- Director’s report- Joint & Several Paper

C. Previledge

- General Documents- Credit card of SCB or Track record if any- MOA - Board’s resolution - J&S paper- Director’s report

Pvt. Ltd. Or Ltd.: - With its name (only one possibility)

A. Vanilla Scheme- General Documents [ documents of one Director sign]- Financial documents of the company- Board resolution - Director must take responsibility [ J&S paper will come here]

B. High Equity

- General Document [documents of one Director sign]- IT returns <60,000 or continuity proof of last 2 yrs.- Financial documents of company- J&S paper- MOA - Board resolution

C. Previlege

- General Documents [documents of one Director sign]- J&S Paper- MOA - Board resolution - Credit card of SCB or Track record if any.

CUSTOMERS ARE FOUND OUT IN THE FOLLOWING 5 WAYS: -

1. Cool Hunt

2. Walk-in-Inquiries

3. Telephone- Inquiries

4. Field- Inquiries

5. Inquires though reference ( i.e. becoz of word of month )

Cool Hunt:-

In this program a marketing executive of kml visits the offices and residents of prospective

customers. The customer may or may not intended to buy the car but a simple approach my

result in sales. Cool hunt sometimes affects the brand image of the company. If not handeled

properly this program may build negative impact on prospective customers. Kml avoids the

cool hunt program. It concentrates on the other four ways to find it’s customers.

References: -

This way of marketing the product really good, especially in case when the existing customers

are satisfied the marketing becomes easy. Word- of- mouth plays a major role in this case. The

sales executive has to convince the prospects in only a few areas. Most of convinced before

they enter in the show – room. Good customer relation plays major role in this Advertising.

Walk-in inquiries:-

Many of the customers come directly to the showroom to purchase the car. The customer may

be attracted by the newspaper advertisement, or he may have decided earlier to purchase the

maruti car from a particular showroom. Walk-in inquiries are generally handled by counter

executives. Some times sales executives also addreses to these inquiries. To deal with these

customers the executive should possess substantial knowledge of the product, its competitors,

discounts associated with a particular product etc.

Telephone inquiries:-

Generally handled by the receptionist, telephone inquiries do not have a good success rate.

Although the customer makes a telephone inquiry he has to come to dealer if he wants

demonstration of a particular car.

Field- Inquiries:-

The field inquiries are generally made for those customers who show their interest in buying

the product in nearer future. Field inquiry facilitates the customer in the sense that the

executive meets the customer at his home or in his office, this saves the customer’s time and

energy.

MARUTI SUZUKI – Count On us.

History

Maruti Udyog Limited (MARUTI UDHYOG LIMITED) was established in Feb 1981 through an

Act of Parliament, to meet the growing demand of a personal mode of transport caused by the

lack of an efficient public transport system.Suzuki Motor Company was chosen from seven

prospective partners worldwide. This was due not only to their undisputed leadership in small

cars but also to their commitment to actively bring to MARUTI UDHYOG LIMITED

contemporary technology and Japanese management practices (which had catapulted Japan

over USA to the status of the top auto manufacturing country in the world).A licence and a

Joint Venture agreement was signed between Govt of India and Suzuki Motor Company (now

Suzuki Motor Corporation of Japan) in Oct 1982.

COMPANY PROFILE

Vision

The Leader in

The Indian Automobile Industry,

Creating Customer Delight and Shareholder's Wealth;

MARUTI SUZUKI is the number-1 car company in India. MARUTI SUZUKI is a name India has

loved and trusted for 20 years. There are around 40 lacs satisfied MARUTI SUZUKI owners on

the road today. MARUTI SUZUKI sells more cars than all the other put together. New MARUTI

SUZUKI cars are built with technology other cars just can’t match. MARUTI SUZUKI

customers enjoy benefits few other cars companies can offer. MARUTI SUZUKI owners are

more satisfied with their cars than anyone else.

16 x 4 Hypertech is installed in Maruti’s vehicles. MARUTI SUZUKI vehicles have advanced

new MPFI technology that works with the unique 16x4 hypertech engine to give the customer

unmatched performance. Most MARUTI SUZUKI vehicles have a powerful 16 – bit computer

and 4 – valves per cylinder. 16 x 4 hypertech gives the customer much more power &

performance. Almost no other car in India has this technology. They mostly have 8 – bit

computers and 2 – 3 valves per cylinder. Better fuel economy. Lower emission levels easily

meet Euro – II nor MARUTI SUZUKI. It also makes the engine run very smoothly. It makes the

car more enjoyable to drive.

objectives

The objectives of MARUTI UDHYOG LIMITED then are:

- · Modernization of the Indian Automobile Industry.

- · Production of fuel-efficient vehicles to conserve scarce resources.

- · Production of large number of motor vehicles which was necessary

for economic growth.

The Core values at Maruti Suzuki

Customer Obsession

Fast, Flexible and First Mover

Innovation and Creativity

Networking and Partnership

Openness and Learning

Addresses

Registered and Corporate office

11th Floor, Jeevan Prakash, 25, Kasturba Gandhi Marg,

New Delhi - 110001, India

MARUTI UDHYOG LIMITED FACTORY

Palam Gurgaon Road,

Gurgaon -122015, Haryana, India

Regional offices

East For the States: Eastern Madhya Pradesh, Orissa, West Bengal, Bihar, Andaman &

Nicobar

L & T chambers 4th floor,

16,camac street

Kolkata-700 016

North East For the States: All North East States

403, Orian Towers,

Christian Basti,

G.S. Road,

Guwahati (Assam)

North 1 For the States: Delhi, Rajasthan, Uttar Pradesh (NCR) and parts of Western UP,

parts of Haryana

6th Floor, Hansalaya Building,

15 Barakhamba Road,

New Delhi - 110001

North 2 For the States: Haryana, Chandigarh, H.P., J&K, Punjab, Chandigarh

Sector 8-C, SCO 39-40 Madhya Marg

Chandigarh - 160018

Central For the States: Central and Eastern Uttar Pradesh, North and West Madhya Pradesh

Ground Floor, Block B-1,

Pickup Building, Vibhuti Khand,

Gomtinagar Lucknow - 226 010.

South 1 For the States: Tamil Nadu, Kerala and Pondicherry

7th Floor, Capital Towers,

180, Kodambakkam High Road,

Nungambakam,Chennai - 600034

South 2 For the States: Andhra Pradesh, Karnataka

204, 2nd Floor,

"Embassy Classic"

Vittal Mallya Road

Bangalore - 560 001

Area Office: Andhra Pradesh

603/2 , 6th Floor White House (Block -1)

6-3-1192/1/1, Kundan Bagh

Begumpet, Hyderabad - 500 016

West-1 For the States: Maharashtra, Goa, Daman & Diu

602, Madhava Building,

Bandra-Kurla Complex,

Bandra(E), Mumbai - 400051

West 2 For the State: Gujarat

505, Satkar Complex,

Behind Swagat Building, Off C G Road,

Navrangpura, Ahmedabad - 380 009.

Product profile: -

As we know KIRAN MOTORS LIMITED deals with cars of Maruti Suzuki, most of the models

of Maruti cars are available for sale at KIRAN MOTORS LIMITED. Also accessories and

insurance for Maruti cars are sold at KIRAN MOTORS LIMITED. The following are main car

models available with KIRAN MOTORS LIMITED.

Maruti-800

Omni

Versa

Baleno

Esteem

Alto

Zypsy

Zen

Wagon-r

Baleno-altura

The following are main dates when Maruti launched its new models and also

launch of various variants of Maruti Suzuki are shown below.

2004 Apr: New (non A/C) variant of Alto

2004 Mar: LPG variant of 'Omni Cargo'

2004 Mar: Versa 5-seater, a new variant

2004 Jan: Baleno LXi, a new variant

2003 Dec: New Suzuki Grand Vitara XL-7

2003 Nov: Redesigned and all-new Zen

2003 Oct: New upgraded WagonR

2002 July: WagonR Pride

2002 July: Esteem Diesel. All other variants upgraded

2002 May: Maruti Insurance. Two new subsidiaries started: Maruti Insurance Distributor

Services and Maruti Insurance Brokers Limited

2002 May: Alto Spin LXi, with electronic power steering

2002 Mar: Special edition of Maruti 800, India’s first colour-coordinated car

2002 Jan: Maruti True value in Mumbai

2002 Jan: Maruti Finance in Mumbai with 10 finance companies

2001 Dec: Zen LXi

2001 Oct: Maruti True Value launched in Bangalore and Delhi

2001 Oct: Maruti Versa, India’s first luxury MPV

2001 Aug: Alto Vxi

2001 Aug: Zen Easy Drive

2001 Aug: Customer information centers launched in Hyderabad, Bangalore and Chennai

2000 Oct: First car’s company in India to launch a Call Center

2000 Sept: New Alto

2000 Aug: Altura, a luxury estate car

2000 Mar: IDTR (Institute of Driving Training and Research) launched jointly with the Delhi

government to promote safe driving habits

1999 Jan: Maruti 800 EX (796cc, hatchback car)

1999 Jan: Zen LX (993cc, hatchback car)

1999 Oct: Zen VXi (993cc, hatchback car with power steering)

1999 Oct: Omni XL (796cc, MUV, high roof)

1999 Nov: Baleno (1600cc, 3 Box Car)

1999 Dec: Wagon R

1998 Dec: Maruti launches website as part of CRM initiatives

1998 Aug: Zen D (1527 cc diesel, hatchback car)

1998 July: Zen VX & Zen VX Automatic

1998 Feb: New (Omni & Omni E) (796cc, MUV)

1997 Oct: 1998 Esteem (1299cc, 3 box car) LX, VX and AX

1997 Sept: New Maruti 800 (796cc, hatchback Car) Standard and Deluxe

1996 Dec: Gypsy (E) (970cc, 4WD 8 seater)

1996 Dec: Omni (E) (796cc, MUV, 8 seater)

1996 Nov: Gypsy King (1298cc, 4WD, off road vehicle)

1996 Oct: Zen Automatic (993cc, hatchback car)

1996 June: Esteem 1.3L (1298 cc, 3 box Car) AX

1995 Nov: Esteem 1.3L (1298 cc, 3 box car) VX

1994 Nov: Esteem1.3L (1298cc, 3 box car) LX

1993 Oct: Zen (993cc, hatchback Car), which was later exported in Europe and elsewhere

as the Alto

1990 Oct: Maruti 1000(970cc, 3 box), India’s first contemporary sedan

1986 June: Maruti 800 (New Model-796cc, hatchback Car)

1985 Dec: Gypsy (970cc, 4WD off-road vehicle)

1984 Nov: Omni, a 796cc MUV

1983 Dec: Maruti 800, a 796 cc hatchback, India’s first affordable car.

Chronology of events as on 2004

2004: Launch of LPG variant of its commercial vehicle 'Omni Cargo'

Launch of Versa 5-seater, a new variant of its Maruti Udhyog Limited multi purpose vehicle

Launch of Baleno LXi, a new variant of its premium mid-size sedan

Launch of new (non A/C) variant of Alto

Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the

highest ever since the company began operations 20 years ago

2003: Enters into partnership with State Bank of India

Launch of Grand Vitara XL-7 (produced by Suzuki)

Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed

10 times

2002: Suzuki Motor Corporation (SMC) increases its stake in Maruti to 54.2 percent

Launch of Maruti Insurance

2001-02: Launch of new businesses: Maruti True Value (buying, selling or exchange of

pre-owned cars), Maruti Finance (car financing) and N2N (Corporate Lease & Fleet

Management)

2001: Launch of versa

2000: Launch of Alto and Altura

1999: Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social

initiatives

Launch of Maruti Baleno and Wagonr

Plant 3 inaugurated; installed capacity increased to 350,000 units

1998: Launch of website as part of CRM initiatives

1997: Produced the 2 millionth vehicle since the commencement of production

1996: Launch of 24-hour emergency on-road vehicle service

1995: With the launch of second plant, installed capacity reached 200,000 units

1994: Produced the 1 millionth vehicle since the commencement of production

1993: Launch of Maruti Zen

1992: SMC increases its stake in Maruti to 50 percent

1991: Reaches cuMaruti Udhyog Limitedative indigenisation of 65 percent for all vehicles

produced

1990: Launch of three-box car, the Maruti 1000

1988: Installed capacity increased to 100,000 units

1987: Exported first lot of 500 cars to Hungary

1986: Produced 100,000 vehicles (cuMaruti Udhyog Limitedative production)

1985: Launch of Maruti Gypsy

1984: Installed capacity reached 40,000 units

Launch of Maruti Omni

1983: Production was started under JVA

Launch of 796 cc hatchback Maruti 800

1982: License and JV agreement signed between Maruti Udyog Ltd. and SMC of Japan

1981: Maruti Udyog Ltd was incorporated under the provisions of the Indian Companies Act,

1956

BENEFITS:

Maruti always offers its customer the quality product. Starting form greeting the customer to

making presentation, demonstration, making actual sales, receipt of payment and providing

loan facility are done very well by the sales executives of Maruti dealers.

Unbeatable service advantage.

Only MARUTI SUZUKI has a nation – wide network of over 1900 service station

in more than 900 towns. From Kashmir to Kanyakumari!

Army of 30,000 professionally trained service personnel.

Modern, advanced repairing equipment and tools.

Express Highway Services

Express Highway Services introduced with services stations at convenient points

on important national Highways.

Maruti On – Road Service

Maruti on road service. Just dial 9622962200 for a 24 hour on road breakdown

service in many cities. No other car company can match this. Maruti is giving the service in

such a way so that the customer can avail it anywhere in India.

Genuine Parts

MARUTI SUZUKI spares are easily available across the length and breath of the

country. Also the spare parts are available at cheaper rate compared to its competitors.

Maruti Suzuki Extended Warranty

MARUTI SUZUKI now offers optical extended warranty up to the 3rd year of

60,000 kMARUTI SUZUKI, which ever is earlier, with effect from April, 2002.

All new vehicles sold on or after 14th may 2001 and covered under the primary

warranty of 2 years or 40,000 kms (which ever is earlier) are eligible of this. It gives total

peace of mind for 4 years, flexibility to approach any MARUTI SUZUKI dealers across the

country for availing this warranty and of course, the MARUTI SUZUKI assurance. All this is

available at an extremely customer friendly price.

Maruti finance: - A better way to buy a car.

Thanks to Maruti Finance, customers can now get the best interest rates for car loans at

their MARUTI SUZUKI Dealership itself. In fact, the dealer will compare all the necessary

paper work and other formalities. More importantly, the percentage of ex – showroom price

that the customer can get as loan (LTV) is higher than what is others. Besides this, the

customer is also offered value Added Services (VAS) like Extended Warranty for 3rd and 4th

year at a discounted price. And that’s not all. Under certain conditions, the customer can also

get loans for car insurance and Maruti Genuine Accessories.

The Maruti Finance offer to its customers is different from other offerings in the market in 4 key

ways:

Best Interest Rates: The Maruti Finance program offers most competitive interest

rates to its customers, which are lower by 0.25% to 0.5% from the market rates.

Value Added Services: Extended warranty for the 3rd & 4th years can be

bundled along with the Maruti Finance loan.

Higher Loan Amounts : Under Maruti Finance, the customer could get higher

Loan To Value (LTVs), loan top ups for Insurance & Maruti Genuine Accessories.

Convenience & Transparent Deals: Maruti Finance has defined high service

standards for its customers, and hence promises to offer the best in the market service. The

customer gets the convenience of getting all his / her car needs – Car, Finance, Accessories,

all under the same roof. Also, Maruti Finance ensures transparent & genuine deals to its

customers through its wide dealership network.

The interest rate offered for car financing depends on the credit evaluation of the customer by

the Finance company. However, the rates offered by Maruti Finance are 0.25% to 0.5% lower

than those available in the market across all credit profiles.

The rates being offered by the Finance company under Maruti Finance are special rates that

have been negotiated by Maruti with the Finance companies for its customers. Hence, these

rates are lower than those being offered in the market. The customer does not have to bear

any indirect costs to reconcile for these lower rates.

The amount of loan available depends on the car that is being purchased, as the Finance

companies define a maximum Loan-to-Value ratio for the customers. The value here is the

price of the car that the customer proposes to purchase. The Loan-to-Value ratio offered to the

customer depends on the credit evaluation of the customer by the Finance company. The LTV

to a customer can go upto 100%.

Loans for Insurance and Accessories.

Loans for insurance and accessories are built into the EMI's, keeping the whole deal simple

and hassle free.So if the customer haven't already made up the customerr mind, just walk into

an authorised Maruti dealership for the best cars and best finance options.

The Maruti Finance program aims to offer the best in class service to its customers. With this

objective, the following service standards have been set for the performance of the business:

* Incomplete Application Turn Around Time (TAT) – In case there is further documentation

required for the application to be processed, the Finance company will inform the dealer within

2 working hours of receipt of application file, and the customer can subsequently be informed

of the same by the dealer

* Approval TAT after receipt of satisfactory documentation – On receipt of the completed

application with satisfactory documentation, the Finance company will take a decision on

approving the loan within a duration of 4 hours & not exceeding 24 hours from receipt of

application

* Complaint addressal – The Finance Company will address any customer complaint

received within 24 hours from receipt of complaint.

In addition, Maruti will monitor the service being offered to its customers to ensure that the

defined service standards are maintained.

Maruti Finance

Maruti has partnered with the leading Finance companies in India to provide highly attractive

Finance deals to its customers through its dealers. Maruti Finance is the program under which

these deals are being offered exclusively to customers of Maruti vehicles.

To bring the customer competitive financing, Maruti has launched Maruti Finance. Now the

customer can avail of Maruti Finance services across Guwahati, Maharashtra, Goa, Andhra

Pradesh, Karnataka, Tamil Nadu and Kerala.Maruti has tied up with eight finance companies

to form a consortium. This consortium comprises Citicorp Maruti, Maruti Countrywide, ICICI,

HDFC Bank, Standard Chartered, ABN AMRO, Kotak Mahindra and Sundaram Finance.Best

Interest Rates Maruti Finance offers the best rates of interest. The instalment schemes are

designed to suit the customerr convenience, at a rate that fits the customerr pocket.

Maruti Countrywide Finance

Maruti Countrywide was set-up when GE Capital, HDFC and Maruti Udyog Limited formed a

captive finance company in 1995.A professionally managed company we share the ideals and

work culture of the parent companies. Our prime objective is to cater to the needs of Maruti car

buyers by offering innovative finance schemes for the purchase of Maruti cars

SBI Maruti Car Loans

The country's largest bank and the largest car maker have joined hands to make affordable car

finance available to more and more people across the country. The mega alliance makes car

loans available at lower interest rates to a wider section of people, with transparent terms and

conditions. It is supported by the unmatched combined network of SBI branches and Maruti

outlets.

The Unbeatable Advantages of SBI-Maruti Car Loans

Two market leaders in their respective industries with trusted brand names.

Lowest interest rates of 9.50%*

No processing fees or hidden costs to ensure transparency

No extra charge for repaying loans ahead of schedule

Standardised loans that offer fixed interest rates across models and locations.

Car loans available for diverse categories of customers including government

employees and agriculturists

More loan amount available as it is extended on the basis of the car's on-road price, not

ex showroom price.

Longer loan repayment period -- upto seven years

Interest rates at the time of purchase of the car will be applicable. Interest rates are

subject to change and are at the sole discretion of SBI. Interest rate of 9.50% applicable on

repayment periods up to 36 months. An interest rate of 10.00% is applicable for a repayment

periods of 7 years. Credit is at the sole discretion of SBI.

Citicorp Maruti Finance Ltd

Citicorp Maruti Finance Limited was formed when Maruti joined hands with Citibank in May

1998.Located in 23 cities we are the first company that provides services to finance the

purchase of secondhand cars nationally.We also offer a wide range of flexible and customised

financing options at affordable rates to individuals buying a Maruti car.

Benefits to registered customer.

All owners of MARUTI SUZUKI vehicles who register at www.marutiudyog.com enjoy all these

benefits for free: -

An exclusive “My Maruti” page for their car’s details.

Reminders for service, insurance and PUC certification, and other reminders

(anniversary etc.)

Car pool

Service station locator, including unique maps for cities states and major highways.

Interactive maintenance planner.

On-line service booking

Tips for car care, driving, insurance, avoiding and dealing with accidents, etc.

Expert advice

Order Maruti Genuine Accessories on-line

Download owners manual

Special offers like discounts on travel, tyres, etc.

Route guides for driving to holiday destinations

Priory information on events in their city like free service camps, contests etc.

Wallpapers, & screen savers.

Quality Systems

Maruti Suzuki provides consumer satisfaction through continuous improvement of the products

and services by following PDCA (PLAN-DO-CHECK-ACT) in all functions of the organisation.

ISO 9001:2000

At Maruti, the approach to quality is in keeping with the Japanese practice--"build it into the

product". Technicians the MARUTI SUZUKIelves inspect the quality of work. Supervisors

educate and instruct technicians to continually improve productivity and quality. The movement

of quality indicators is reviewed in weekly meetings by the top management.

In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the

world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International

Organization for Standardisation(ISO), certified Maruti after a four day long audit, covering

varied parameters like Customer Focussed organisation, Leadership, Involvement of people,

Process approach, System approach to Management, Continual improvement, etc.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in

production, installation, marketing and sales as well as after sales services. We were also one

of the first companies in the world to pioneer ISO 9000 certification for our dealers.

In October 1993, MARUTI UDHYOG LIMITED passed the Conformity Of Production (COP)

Audit, which is based on a European Union Directive. This authenticated our quality

systeMARUTI SUZUKI and testing facilities for export to Europe.Our emphasis on total quality

has meant that today we are in a position to guide vendors and dealers in establishing and

consolidating their individual quality systeMARUTI SUZUKI. This commitment to quality has

ensured a consistently satisfying product and world-class sales and after-sales services.

Employee quality measures

Kaizen is based on the concept of making incremental improvements in our products. It

incorporates a series of continuous small and simple improvements, which aim at involving

employees at all levels.

The Suggestion Scheme is based on the same principle. Under this scheme, employees are

encouraged to make suggestions for improvement in any area of our operation. Over 50,000

suggestions are received from employees every year.

Maruti has won the First place in "Excellence in Suggestion Scheme Contest 2003", which is

the 6th consecutive award won in as many years. This contest is organized by Indian National

Suggestion Schemes Association (INSSAN). Since 1998 Maruti has won this award 10 times.

"Quality Circles" are groups of five to eight members from a particular work area who work as

a team to identify priorities and solve work related problem in the area.

The company believes that it is the unwavering commitment to quality that will lead to the

further growth of the organization as competition increases.

TS 16949:2002

A new feather was added recently in Maruti’s cap in the field of quality when the Quality

Management System of its Press Shop & associated functions (collectively termed as Press

Function) got certification for conformance to the requirements of TS16949:2002 standard.The

need for TS certification of Press Function had its genesis in the prestigious project that Maruti

earned for the supply of stamped panels to General Motors India for one of its forthcoming

models.As a part of Quality system requirements, GM requires all its suppliers to be certified to

either ISO TS 16949 or QS 9000.These standards address Quality System requirements,

which are particularly specific to the automotive industry and requires an organization to be in

compliance with ISO 9000 systems as a basic requirement. However, whereas QS 9000 would

become defunct and cease to exist after Dec 2006, TS 16949 is going to be the standard of

the future.

The TS 16949 standard, brought out by ISO in the year 1999, is an extension of the ISO

9001:2000 standard that prescribes Quality management system requirements that are

specifically applicable to the automotive industry.TS 16949 has gained high popularity and

almost all major automobile players across the globe including GM, Ford, Daimler Chrysler,

Nissan, Honda are embracing & promoting it.

Transfer of Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer

of contemporary technology from the partner Suzuki is a smooth process. Great stress is laid

on training and motivating the people who man and maintain the equipment, since the best

equipment alone cannot guarantee high quality and productivity. From the beginning it was a

conscious decision to send people to Suzuki Motor Corporation for on-the-job training for line

technicians, supervisors and engineers. This helps them to imbibe the culture in a way that

merely transferring technology through documents can never replicate. At present 20% of the

company’s workforce have been trained under this programme experts. If a customer books’ a

service with his dealer he can download the owner manuals. That's not all. The customer can

create his own cyber parking for his Maruti at 'My Maruti'.

At The Time Of Buying

At the time of buying, the customer requires much more than just the car. The customer needs

choice. From the company with India's largest range of cars, the customer now get a variety of

other options too, starting from how much warranty support the customer need, to high-quality

accessories to customized the customer’s car just the way the customer like. We also

recognized that the customer may need finance not only for the car, but for these value ads.

The customer also deserves the best option for exchanging the customerr old car at its true

value. And, while the customer certainly need insurance, wouldn't it be nice to get a product

which settles with the dealer directl

Achievements

Maruti created history by going into production in a record 13 months.

On 14 December 1983, the then Prime Minister of India, Mrs Indira Gandhi, released the first

vehicle for sale by handing over the keys of a Maruti 800 to Mr. Harpal Singh of Delhi. We

exceeded the volume targets, and in March 1994, we became the first Indian company to

produce over one million vehicles, a landmark yet to be achieved by any other car company in

India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having

produced over 4 million vehicles by April 2003.

Maruti revolutionized the way Indians looked at cars. "No other car company so completely

dominates its home market" - (The Economist). MARUTI UDHYOG LIMITED is the first and

only car company in the world to lead its home market in the MARUTI SUZUKI of both market

share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India

Customer Satisfaction studies). It is also the only car company in the world to be Top ranked

four times in a row (2000, 2001, 2002 & 2003).

Awards

· 2003 Dec: Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10 automotive

brands in "Most Trusted Brand survey 2003"

· 2003 Nov: J D Power ranked 3 models of Maruti on top: Wagonr, Zen and Esteem

· 2003 Nov: Maruti 800 and Wagonr top in NFO Total Customer Satisfaction Study 2003.

· 2003 Oct: MARUTI UDHYOG LIMITED tops in J D Power CSI (2001) for 4th time in a row

· 2001 Oct: MARUTI UDHYOG LIMITED tops in J D Power CSI (2001) for 2nd time in a row:

another international first

· 2000: Maruti bags JD Power CSI - 1st rank; unique achievement by market leader anywhere

in the world

· 1999: MSM launched as model workshop in India; achieves highest CSI rating.

· 1999 July: Central Board of Excise & Customs awards Maruti with "Samman Patra", for

contribution to exchequer and being an ideal tax assessee

· 1998: CII's Business Excellence Award

· 1996 Dec: Maruti wins INSSAN award for "Excellence in Suggestion Scheme"

· 1996 April: awarded the Star Trading House status by Ministry of Commerce

· 1994-95: Engineering Exports Promotion Council's award for export performance

· 1994: Best Canteen award among Haryana Industries as part of employee welfare

· 1992-93: Engineering Exports Promotion Council's award for export performance

· 1991-92: Engineering Exports Promotion Council's award for export performance

Conclusion

Thus we can conclude that Kiran Motors Ltd is dealing with automobiles successfully.

All the departments Kiran Motors work hard to achieve the organizational goals. KML

possess all important feature required for small organization. To satisfy a customer is

not an easy task. It requires competent work- force. Also efficient pre-sales and post-

sales services should be given to the customers.

The project also gives brief idea about car-finance. Different documents required for

loan are also stated in the project.

In short the project can become a guide for those who are interested in knowing about

car finance.