Maruti car finance report

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.

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
1 Swami-amritsar 2181
2 Competent-delhi 2152
3 Popular-cochine 1945
4 Sai-bombay 1789

Maruti 800
1 Popular-cochin 5805
2 Indus-cochin 4972
3 Vehcl-pathancot 4502
5 Rohan-gaziabad 3858

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
 IT returns or continuity proof showing 2 years continuity of partner.
 Bank statement of the firm of last 6 months.
 Partnership deed.
C.Previledge
 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)
- Joint & Several Paper
C. Previledge
- General Documents
- Credit card of SCB or Track record if any
- MOA
- Board’s resolution
- J&S paper

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

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 workforce. 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.

Maruti car finance report

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