Financing of Cars
In mid 90’s Maruti Suzuki adopted a new strategy which aims to provide finance to its customers. This helps the company to strengthen their brand value and to increase their market share. They aimed to target the middle class people who wanted to purchase a car but had very little exposure about financing it as at that point of time financing a car was relatively a new concept.
Maruti has set up two joint ventures with Countrywide and Citibank which provide easy loan for cars. It helped the company to increase their customer base as people got an easy way to finance their cars.

Extensive Network of Service Stations
Proper servicing of the cars from the authorized service centre was one of the major worries of customers during mid 1990’s. Maruti provided them extensive network of service stations and their vast network of dealerships and Maruti Authorized Service Centers (MASS) had also contributed towards their massive popularity.

Easy availability of Spare Parts
It also make sure that Maruti service stations also act as sales point for original spare parts to the customers. Easy availability of service stations and spare parts proved to be a factor in low maintenance cost for Maruti cars.

Effective manufacturing units of Maruti Suzuki proved to be a mile stone in Indian automobile industry. The state of the art manufacturing units and its different strategies to reduce the manufacturing cost proved to be one of the factors in cost cutting.

Motivated and empowered workers
Satisfied employee is a key of successful manufacturing unit. Same is true with MUL. The management conduct various programmes for employees and encourages employees to give the suggestions in improving the production line. It develops a feeling of belongingness among the employees.
One of the example is introduction of Programme Management System and it proved to be very successful. It has a bottom up approach which insure involvement of all levels (Engineers, Managers, Executives, Supervisors) . In this approach, employees are encouraged to give solutions of the problems at their end. If the solution is good enough it is applied to all levels, thus motivating the operator and ensures his ‘ownership’ all through the solution finding process.
According to annual report of MUL, in year 2008-2009 company achieved savings of 707 million through 132,804 suggestions contributed by employees.

Reduction in inventory

Fall in transport costs

Lesser production time

Low rejects