Impossible to Possible: Maruti's Incredible Success and How It Can Change India

by R.C. Bhargava

IN 1981 A COMPANY WAS formed that, quite unbelievably, led to the creation of a modern car industry in India. The company was Maruti and its experiences have relevance far beyond the car industry, extending to the entire manufacturing segment. Its success is all the more remarkable as Maruti started out as a public sector company but with a Japanese partner, an almost certain recipe for failure given the cumbersome bureaucratic procedures and socialistic ideology that were prevalent. Moreover, the component industry needed to support its ambitious plans-100,000 cars annually-was fragmented and technologically obsolete.
Today India has become the third-largest automotive market in the world and a major exporter of cars. Maruti itself ranks among the biggest manufacturers and is set to double its capacity to 4 million cars by 2030. As R.C. Bhargava, who has been with the company from its inception, emphasises, Maruti's learnings apply not just to one industry but, more crucially, to India's growth aspirations. Manufacturing is the cornerstone of these, making Impossible to Possible one of the most important books to come out on the subject of management and development.

261 pages, Kindle Edition

Published January 18, 2024

Reviews

[Jung]

In "Impossible to Possible: Maruti's Incredible Success and How it Can Change India", R. C. Bhargava tells the remarkable story of how a modest public sector initiative overcame seemingly insurmountable odds to transform India’s automobile industry and, by extension, the way the country thought about manufacturing, efficiency, and customer service. The rise of Maruti was anything but assured. Launched at a time when private cars were seen as luxuries, when industrial policies discouraged innovation, and when public enterprises were infamous for inefficiency, the project seemed destined for failure. Yet within a few decades, Maruti had become the country’s dominant carmaker, redefined consumer expectations, and helped India establish itself as a global automobile producer. This book explores how bold leadership, trust between management and workers, relentless focus on the customer, and a culture of continuous improvement turned the impossible into reality.

Bhargava emphasizes that Maruti’s greatest strength was not just technology or foreign collaboration but the leadership team and the culture they built. V. Krishnamurthy’s administrative energy, Osamu Suzuki’s personal involvement, and Bhargava’s own decision to leave the civil service for this uncertain venture laid the foundation for a company that refused to operate like any other state-owned enterprise. Instead of bureaucracy, the leaders insisted on discipline, accountability, and partnership. This commitment made it possible to launch the Maruti 800 on schedule in 1983, something unheard of in India’s public sector at the time. The symbolism of rolling out a car that ordinary Indians wanted, produced without delays and with attention to quality, was not just a corporate milestone but also a signal that the country’s industries could compete with the best in the world if they changed their ways.

The story of how Maruti got off the ground highlights the role of adaptability. Early plans to partner with Renault collapsed when feasibility studies showed the model would be too costly and unsuitable. Instead of pressing forward with a doomed idea, the management took the unprecedented step of surveying consumers to ask what they wanted. The answer was clear: a small, fuel-efficient, affordable car. This insight led the team to Japan, where Suzuki became the ideal partner, both technologically and culturally. Suzuki not only supplied advanced know-how but also instilled systems of lean production, quality control, and continuous review. Advance bookings provided funding independence, and meticulous weekly meetings ensured deadlines were met. These early steps not only gave India a car it wanted but also set a new benchmark for how major projects could be managed.

Perhaps the most transformative aspect of Maruti’s journey was the cultural revolution within the company. In an era when profit was treated with suspicion and excuses for inefficiency were common, Maruti built a performance-driven environment. Suzuki’s influence was evident in everything from team-based problem-solving to open offices that flattened hierarchies. Incentives were directly tied to productivity, meaning workers had tangible reasons to show up on time, collaborate, and achieve results. Bonuses often exceeded base pay, attendance surpassed 95 percent, and employees began to take pride in achieving global standards. Unlike other enterprises where seniority dictated promotions, Maruti tied advancement to merit, creating a culture of aspiration and accountability.

A vital part of this cultural shift was the way Maruti fostered trust on the factory floor. Instead of repeating the adversarial labor relations that plagued much of Indian industry, management deliberately emphasized equality and openness. Uniforms, shared canteens, and common facilities eliminated barriers between workers and managers. Financial transparency ensured that employees understood how profitability translated into their own security. Welfare measures like cooperative housing and quality schools for employees’ children reinforced the sense that workers’ futures were tied to the company’s success. The result was a motivated workforce that identified with the company’s mission and embraced productivity as a shared goal.

Training proved to be the real engine of change. Workers and engineers were sent to Japan to experience firsthand the discipline, punctuality, and standards of global factories. What they witnessed - spotless plants, on-time systems, and worker involvement in decision-making - reshaped their own approach to work. Returning employees spread these lessons at home, helping Maruti leap ahead of Indian industry norms. Training wasn’t just about technical skills but about reshaping mindsets: engineers shed reluctance to work with their hands, line workers learned to take ownership of quality, and managers adopted a hands-on approach to problem-solving. This culture of constant learning became one of the company’s greatest assets.

At the heart of Maruti’s long-term competitiveness was the philosophy of continuous improvement, or kaizen. Rather than seeing processes as fixed, the company encouraged everyone - from senior executives to assembly-line workers - to suggest small changes that would enhance quality, reduce costs, or improve safety. Suggestion schemes and quality circles, borrowed from Japanese practices, gave employees a voice in shaping the workplace. Incentives and recognition reinforced participation, and over time, kaizen became ingrained in the company’s DNA. This approach stood in stark contrast to India’s prevailing systems, where rigidity and fear of questioning procedures blocked progress. By demonstrating that competitiveness was a shared responsibility, Maruti created a resilient model that stayed ahead even as competition grew.

Another central theme of Bhargava’s account is Maruti’s customer-first approach. In the India of the early 1980s, consumers were used to being treated with indifference. Limited models, unreliable vehicles, and dismissive dealers made buying a car frustrating. Maruti broke this cycle by putting the consumer at the center. From the initial survey that shaped the Maruti 800 to transparent booking systems that avoided corruption, every move was designed to build trust. Dealerships became welcoming spaces, workshops were standardized, and customers could observe service without stepping onto the factory floor. Genuine spare parts were distributed widely, ensuring safety and reliability. Even logistics were modernized to ensure cars reached customers in pristine condition. This emphasis on fairness and transparency not only won customer loyalty but also reset industry expectations.

The broader lesson of "Impossible to Possible" is that bold vision must be matched by disciplined systems, trust, and relentless focus on improvement to achieve lasting success. Maruti was not just about building cars; it was about building a new way of thinking in Indian industry. The company demonstrated that when leaders align their incentives, workers are treated as partners, and customers are placed at the center, remarkable outcomes follow. In doing so, it proved that India could create globally competitive enterprises even within the constraints of its complex policies and industrial environment.

R. C. Bhargava’s account is ultimately about more than automobiles. It is about how organizations can transform themselves and their industries by refusing to accept mediocrity as inevitable. Maruti succeeded because it combined vision with execution, discipline with empathy, and foreign expertise with local commitment. The book serves as both a history and a manual for how India - and indeed any country or company - can turn daunting challenges into opportunities for reinvention.

In conclusion, "Impossible to Possible: Maruti's Incredible Success and How it Can Change India" is a testament to the power of leadership, trust, and customer-centricity in reshaping industries. It shows that extraordinary achievements are not the result of luck or chance but of deliberate choices to challenge norms, invest in people, and never stop improving. Maruti’s journey from a risky experiment to an international benchmark proves that with clarity of purpose and systems that reward performance and innovation, the impossible can indeed become possible.

[Shino Jacob · Rating 4 out of 5]

As practical as it gets.
Sneak peek into Mr. Bhargava's thinking and strengths of Maruti.