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The Maruti Story: How A Public Sector Company put India on Wheels

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About the Book: The Maruti Story: How a Public Sector Company Put India on Wheels The targets were stupendous and considered unachievable by almost everyone: Slightly over two years to find a suitable partner, finalize all legal documentation, get governmental approval to these agreements as well as to the investment proposals, build a factory, develop a supplier base to meet localization regulations, create a sales and service network, and develop and launch a people's car that would sell 100,000 a year, in a sector where Indian expertise was limited. And to do this as a public sector company, having to follow all governmental systems and procedures, and having to please both its masters in the government and Suzuki Motor Corporation. However, the Maruti project succeeded, and in ways that were unimaginable in 1983. The car revolutionized the industry and put a country on wheels. R.C. Bhargava, who was at the helm of the company, co-writing with senior journalist and author Seetha, shows how it was done in this riveting account of a landmark achievement. About the Authors: R.C. Bhargava, Seetha R.C. Bhargava moved to Maruti Udyog Limited as marketing director in 1981. He was appointed managing director of MUL in 1985. In 1990, he became chairman of the board. He retired in 1997 but was re-inducted to the board in 2003 when Maruti was listed. Seetha is a Delhi-based senior journalist and the author of The Backroom Brigade: How a Few Intrepid Entrepreneurs Brought the World to India. She has over twenty-five years of experience with various reputed publications. Reviews 'For anyone studying the evolution of India's automobile industry, this book is indispensable' ? Indian Express 'This well-documented study of the birth, growth and success of Maruti will be of great value for policy makers, entrepreneurs and any auto enthusiast' ? The Statesman

383 pages, Paperback

First published January 1, 2010

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Displaying 1 - 30 of 37 reviews
Profile Image for Swateek.
213 reviews17 followers
November 29, 2024
This book is written well, and the flow of ideas comes out naturally as a story rather than being a documentation.

Many things to learn about building organisations sans the little governmental bureaucracy that Maruti had to face over the years. Overall, quite enriching.
Profile Image for Prabhat.
Author 1 book8 followers
January 6, 2019
Written in simple language, not preachy, some inside view on Maruti. Anybody knowing about License Permit raj would understand the hills Maruti had to climb. Should be made a compulsory read in Management Schools.
Profile Image for Dinakaran.
3 reviews4 followers
December 7, 2011
Maruti 800 - My uncle had this legendary car during the 90's and it was a great pride for all of us.Every one of us loved the car and it seemed to be an object of fascination and status symbol.It was the latest car at that point of time other Premier Padmini and other set of big cars. I believe , it was the first major hatchback to hit India.

So when i saw the book The Maruti Story - How A Public Sector Company put India on Wheels ,i became interested and wanted to understand how the whole thing worked out.

Why i wanted to read this book:

When my uncle sold the car few years later , he still sold it for almost the same price for which he bought.I was always amused about how it was possible.

Maruti Udyog / Maruti Suzuki - these names always confused me as in to whether it is a government company and how a government company was able to evolve and stand up over test of time and be so popular even today.

If you are in car market today , Maruti Suzuki is the king with major marke share. Come how many big auto giants ,they still cannot beat Maruti , especially in the small car segment . Usually a company when small can be managed well but even after evolving into a big company, Maruti Suzuki is able to retain the numero uno position which made me wonder how they are keeping themselves above every one else.
So when i picked up this book , i was expecting to seek answers .

P.S: Since this book is written by Bhargava ,the Managing Director of Maruti Suzuki , his views may be generally biased and very positive about what they did . Hence i'm not going to research or being nitpicking but just share how the history evolved of the people's car evolved in India as i read in the book
So how did happen ?

Maruti seems to be the pet project of Sanjay Gandhi, son of Indira Gandhi. He started the company Maruti Udyog and initially involved during 1970's to bring out the people's car - an affordable , low-cost means of transportation for masses. Although Wiki reveals that Sanjay Gandhi was favored this project by then Prime Minister Indira Gandhi, but the project didn't exactly kick off as expected , there was a factory setup , prototype being tried out which didn't work out and he was killed off in air crash before realizing his dream.

In 1980's , again the project was kick started and Indira Gandhi was very critical about the success of this project as tribute to her son's unrealized dream and has shown personal interest by making sure all the required approvals are obtained in time with help of ministers looking over and taking care of any government side intervention.

Maruti Udyog was established as a PSU - Public Sector Undertaking , which means people money is used for the project and hence the Planning Commission was critical for this people's car project as this project did not encourage public mode of transport . Since the govt, favored the project , this critical road block was cleared out eventually.

At that time , the two other car manufacturers were Padmini and Standard Motors in this segment who were in the business for long time but still could not get it right with the pulse of Indian consumers and both these company ran out of business in due course of time, one reason could be of Maruti which had great help from Govt. in ways of getting exemption on import goods and bypassing some govt. policies.

So it all started off with setting up the management team , hand-picked officials who were working in other PSU's but performed exceptionally well . Due to limited technical expertise prevalent in India, Maruti was looking for a suitable foreign collaborator to provide technical and process expertise and to work 60/40 agreement.

Management Team initially went looking for European car majors - Fiat , Renault , Volkswagen and other companies and initially zeroed on a bigger car with powerful engine and less fuel efficient. Management Team was bit skeptical about the choice being made and hence carried out a market survey in India to understand the expectations from the market which were :
Smaller car and space for not more than 4.
Price to be around 12 times the salary of average employed which was around that time 3000 rs and hence at any cost the car cannot exceed 45000.
Car has to be fuel-efficient
VW was coming close with offering Golf and Jetta but did not materialize for some reasons. Had it happened during that time, VW would not have been a premium car maker like now and could have enjoyed major market share.Ironically VW means People's car but in India , it is being sold as premium brand.

One main reason for auto majors to be apprehensive in their partnership with Maruti was that it was afraid of the Govt. intervention and their understanding of how badly other PSU's were run in India.This was a big drawback for major autos to show any interest in the very capable market of the developing country.

When the team shifted focus to Japan to look for collaborators, Suzuki Motor Corporation(SMC) was finalized after having discussions with Toyota/Mitsubishi . SMC had the best people car running in Japan and it fit the requirement that came out of the market survey and also Suzuki the CEO was personally involved in this setup in India as he saw great potential in this untapped market.Since the direct CEO was involved , it was easy to take decisions quickly . It should be noted that a good trust was built between Maruti and SMC that led to the long-term success of the joint venture.

One significant point re-iterated over and over again in the book was that the Japanese not only brought the technical expertise but also the process excellence by means of cost cutting continuously , training and motivating the employees to be punctual , disciplined and dedicated to their workers.5s and other management best practices helped in taking the company to the next level.

This Japanese culture initially was difficult to be adopted by Indian managers who were used to hierarchical work structure and experienced being the major aspect of it. But slowly it changed and all became aligned to the company's goal . Uniforms were provided all of them in company - workers to top managers , common canteen and rest room facilities , open cabin offices with anybody can approach others in the company gave a sense of equality to every one associated with the company.

It seems when the car was announced initially , there was great response for the car and the booking amount itself went to a huge 135 crores making this PSU profitable from the very first year.The first car launched was Maruti 800 and later was followed by OMNI . Both were run away success and waiting period for all these cars ran to years which was unprecedented in any other part of the world.

Significant effort was put out in engaging with the vendors and establishing dealerships. This experience as a whole helped the country when it was open for other autos to enter India freely in 90's. By this time, since Maruti was established and making profits , a slew of auto majors came to set up their company with great confidence since the vendor industry has substantially matured by the time.

Maruti was having 60% and Suzuki 40% at the start and in the 90's , it was 50% each and in 2007 , govt. exited out of partnership after establishing the indian auto industry on its path and it was re-christened as Maruti Suzuki.

It has to be noted that there were innumerable tussle between the Govt. and Suzuki that actually hampered the progress and the strikes that followed by employees.There was some lack of trust between the Govt. and SMC followed a brief period of mull which resulted in loss.
Over all , it was an interesting to read how a Govt. PSU which usually was not very accountable for any losses that comes out of public money had made great strides to operate with great degree of excellence and not only bring profit to the company but also made a revolution to the Indian auto industry there by putting India in the global auto market.
23 reviews1 follower
September 27, 2010
The company started with the dream of Sanjay Gandhi to manufacture small cars in India. After his death it was a challenge for his mother Mrs Indira Gandhi to fulfill his dream. Mother Gandhi was also the Prime Minister of the country. This is what started Maruti as a PSU.
The story by RC Bhargava provides deep insight into Japanese culture, management style; and how Maruti despite being a PSU moulded itself to this culture. The story also provides a deep insight into the evolution of automotive sector in India.
A good read overall.
102 reviews9 followers
September 12, 2017
The story of Maruti from its inception till up to about 2010 written by the man who midwifed the company, was its MD from 1985-1997 and Chairman since 2003- a position he holds to this day. It is the story of how a public sector company set benchmarks that are the envy of the private sector even today. Like Unilever, it became a crucible for moulding competent managers. While, owing to the links to Indira Gandhi, the project undoubtedly enjoyed a degree of insularity from the political class that otherwise treats the PSUs as an instrument of distributing patronage, it can take nothing away from the way the organisation was set up as a professionally managed one. The tone has to be set at the very top and the company was fortunate in having two extremely competent men with high integrity in charge. The book details how various challenges- regulatory, political, economic, commercial and human resource related- were overcome at various stages and makes for instructive reading. The company went public only in 2003 and became completely free of any government shareholding only in 2007 and yet was able to establish a reputation for quality, reliability and competence in the corporate landscape. Dealing with powerful, clueless and often rapacious politicians and bureaucrats is tricky territory and navigating it takes a lot of spine as well as cunning. RC Bhargava and Krishnamurthy with their long experience in the government and the network they had established therein, manage to hold their own. From a professional viewpoint, the most useful chapter for me was the one that describes the vendor development process by the company. Many of the companies referred to are clients of the bank I work for and one of the earliest vendors with whom Maruti formed a joint venture, is a part of the portfolio I oversee.
Profile Image for Santosh Rangapure.
63 reviews2 followers
May 25, 2019
The Maruti journey which I experienced with the help of this book is simply incredible. It is one of the greatest example in the Indian Corporate sector that how a PSU can achieve outstanding position in the market and that too with starting from a scratch. Totally new ideas and new concepts in Indian Auto industry channelized successfully by Maruti mnagement simply astonished me. The situation of Car industry in India before Maruti came looks laughable now but it's true that people need to buy car on ration. And with the thriving launch of Maruti-800 model the company achieved great success followed by all of its successful models like Alto,Wagon R and Swift.

Being a government owned company Maruti had to go through lot of bumpy rides but with the help of determined management and of course positive attitude of government towards Maruti it sailed through all the difficult times and set an example for others. The collaboration with Suzuki in Japan is one of the key element in Maruti's success. The systems employed by Suzuki in almost all areas like production,Sales and Finance are simply amazing and were totally new in India. The way management dealt with workers is simply great. The vendor development and dealer allotment was also an interesting chapter to read as this was also a totally new concept in India. Maruti was also quick in adopting challenge of new competition in Auto sector. Overall reading "the Maruti story" gave me many insights about the PSU and corporate structure and Auto sector in India. Till today this great company enjoys more than 50% market share with stiff competition with almost 15-20 Indian and Global players.
Profile Image for Ayesha Jahagirdar.
1 review3 followers
November 24, 2017
This book is a great source of knowledge if you are eager to know about the history of India's first car under a PSU.
Maruti Udyog Limited was dream of Sanjay Gandhi which was bought to life by Indira Gandhi and a group of people that were passionate about this project. Since it's inception in 1986 MUL has faced many challenges from the government and private companies but it still managed to derive sales that were exceptionally well and took the Indian automobile market by storm.
Maruti, joined hands with a Japanese company Suzuki to bring better technology in the automobile industry in India. There were many issues regarding the stake of Suzuki and the government in the company and many conflicts took place, but they were resolved with the help of Krishnamurthy and RC Bhargava who have been CEO's of the company. One of the best thing that happened was the introduction of a better work culture in the Maruti Suzuki offices. The workers, staff and the top management wore the same uniform to show that they were united and there was no discrimination in the company. They also put up open offices so that the managers could be easily approached.
Maruti Suzuki ltd has been a blessing for the Indians as Maruti 800 was of best quality and affordable for the Indian consumers. This car set a benchmark for the upcoming cars. This company, even though being a PSU made enormous profits and still continues to do so.
Profile Image for Girish.
1,157 reviews262 followers
September 14, 2024
The Maruti Story is one of those books that is a complete case study in itself for the B-schools and organizations. Except the bit on corruption and politics which down sells the entire ecosystem (because it is true), I think this book had a lot in common with one of my favorite books "I too had a dream" by Verghese Kurien.

The structure of the book starts out chronologically but then starts to focus on specific sections like vendor management, distribution etc - which I understand the need for. The first part of the book of why Maruti was set up and choosing the partner for the entry level car was fascinating. I especially loved the selection criteria and how they narrowed down on Suzuki.

The customer research and positioning, pricing and the allocation logic is a pedagogical gold mine. Many D2C companies can learn a lot about this forgotten practice. Skipping the leadership tussle and the complex workings of a JV (from the POV of an invested party) is safe since there are many sides to this coin. The vendor management practices, the employee practices are gold too.

I luckily started my career implementing the Japanese TPM systems in manufacturing and hence love the philosophy that governs their operational practices. Mr.Bhargava stays away from explaining this and I felt, at times, he was taking credit for what is the norm in Japan.

Definitely recommend it to all B-school aspirants and managers.
82 reviews
August 10, 2023
I’m amazed that why this book is so less read. It’s been an amazing journey for company which started with a dream of a powerful politician & how in reality it surpassed the annual sales of all its nearest competitors alone. Today maruti is a leader with majority of their cars plying on the road & ruling. The journey is also of strong willed management who embraced the change & helped maruti become the success it is today. Also it would be critical to note that the manage management had a lot of clout & political support. If few people not with support from government but without intervention of government we’re able to achieve so much, I’m not sure what the collective societies would have done in the absence of license & permit Raj.
Profile Image for Deepanshu.
7 reviews2 followers
September 8, 2025
Very interesting, including a lot of details about the challenges faced by Maruti in getting it off the ground - how finalization of Suzuki happened, how the execs handled pressure from political counterparts, how Maruti drove a shift in culture to focus on profitability, quality and customer experience.

I could only complete 70% till it became quite repetitive in learnings.
Profile Image for Karthik BS.
15 reviews
July 10, 2017
Good book. Never new Maruti was PSU once. Since the story is narrated from writer's perspective who was a former employee of Maruti, we get to hear only one side of the story. However, it still lets you know the problems or challenges faced by PSU companies in general.
1 review7 followers
November 14, 2017
It is a goodread

Gives you an insight into the problems associated with managing a PSU
Tells you why the Indian auto industry's growth stagnated for decades in the past
And a few things about the Japanese way of doing business
10 reviews2 followers
March 9, 2018
Very good to understand Maruti DNA

Any company's success depends on its DNA. This book clearly depicts how maruti has started and how it became India's passenger car leader.worth reading.
Profile Image for Amritha Kailesh.
48 reviews1 follower
March 21, 2018
This is one of the best books I have ever read!
The struggles ad facts are so well written. I really felt the struggles Maruti went through. This book keeps the reader so anticipated and at the edge of the seat. Worth a read.
39 reviews2 followers
September 22, 2018
A good book to understand the 1st modern car making unit of India. Though it started on the whims of Sanjay.... it turned the auto industry on its head, sometimes this book sounds like a rant.... though gives valuable insights
2 reviews
June 10, 2019
Honest Story

Honest story by honest man. A spectacular progress inpite of PSU like working style during beginning. Appreciate hardworking and systematic approach by both krisnamurthy and author.
Profile Image for Sonam  Puri.
102 reviews21 followers
April 18, 2020
Fact based story. Interesting political situations discussed. Lot of financial problems were faced and overcome by the company. Also talks about the marketing and advertising campaigns done so as to beat the upcoming competitors.
1 review
December 16, 2019
Good in Parts

Slightly biased coming from a Maruti's MD.
Was expecting a more neutral view to the whole partnership between the two companies.
6 reviews
March 14, 2021
Good read to understand the making of a car company from scratch in a very new and conventional market like India.
Profile Image for Shrikant.
45 reviews
October 9, 2025
A good book to understand how the automobile industry changed with the introduction of Maruti.

Many things I got to know:
- Maruti was a PSU once.
- Importance of having a Japanese collaborator, Suzuki
- Maruti as PSU working better than many private sector companies in India.
- The iconic maruti 800. Details around why 800 was the first choice car.
- Discusses in details working with the govt, vendors, dealers, customers. They had to create a new competitive environment of vendors and dealers.

-- To add more.
Profile Image for Radha Krishna.
5 reviews28 followers
April 27, 2013
I was able to connect to the most of the things the book quoted as I had the opportunity to work with Maruti Suzuki India Limited (MSIL)for more than 2 years. Interestingly, I read this book after I came out of the company. It was like a recapitulation of Maruti's plant, environment as a whole. Though this book is a bulky one, a person who fell in love with the brand "Maruti" will enjoy it absolutely as I did so.

Author of this book, Mr. R C Bhargava, a senior bureaucrat acted in various roles of the company, has been with the company right from its origin. So, the reader has an advantage of understanding the journey of Maruti from a person who himself had experienced this in his life. This is a unique feature of this book.

You, as a reader will get to know the situations of Indian automobile industry prevailed in 1980s from this book. You will also find the various topics like the first ever negotiations Mrs Indira Gandhi had with Japanese officials, surprising facts like Mr. Sunil Mittal applying for Maruti dealership, topics like controversial removal of Mr. Bhaskaradu from the MD post of Maruti Udyog Limiled (MUL) and many others. To an extent, you will also understand the working culture of Japanese and their way of doing business. This books will also gives a hint why Mrs Gandhi is called a Iron lady of India.

So, the reader has the full advantage of understanding the journey of Indian automobile particularly Cars industry from its cocoon to the butterfly stage.

All in all it is a good read for people who loves automobiles.

Personal: I still feel proud that i got an opportunity to work with Maruti & meet some of its senior colleagues who actually made me a matured individual today.

Godspeed Maruti.
Profile Image for Venky.
1,046 reviews420 followers
June 8, 2020
A first hand account of how India's iconic car manufacturer embellished the image of the functioning of a much maligned Public Sector Undertaking in India. The book contains invaluable insights regarding the pernicious working of the erstwhile License Raj which led to ridiculous levels of customer service (or the lack of it). Established as Maruti Udyog Limited subsequent to the tragic death of Sanjay Gandhi, the mandate provided to the PSU was to roll out India's own car by December, 1983. Working over time and in collaboration with Suzuki Motor Corporation, Maruti overcame insurmountable hurdles, both political and practical to release the first vehicle within the stipulated deadline. Since then Maruti has progressed from strength to strength not only introducing multiple variants of cars to cater to a wide segment of customers but also has had the pride of seeing its vehicles being exported to both Eastern and Western Europe, and Latin America.

R.C.Bhargava also provides an illuminating overview of the bureaucratic rigmaroles plaguing a PSU and a sacrosanct need to follow draconian procedures with a sole objective of protecting vested interests at the cost of increased sales and improved profitability. However where the book disappoints the reader is the excessive platitudes showered upon the Japanese Joint Venture company in aiding and assisting Maruti to become a automobile manufacturer of repute. While there is no denying the indispensable role played by SMC in the furtherance of Maruti's prospects, placing the entire credit for the success of the company in the hands of its Japanese partner is a bit disappointing.

On the whole this is a very important book that fills the reader with pride and passion.

The Maruti Story - Driving dreams to a great distance!
3 reviews1 follower
November 9, 2012
The Maruti Story is not just a story of how a public company put India on wheels but its about about how a group of motivated bureaucrats proved to the world that perseverance, passion and a strong vision can lead to success in business. The book talks in detail about the challenges in the Indian Bureaucracy, need for technology and innovation for a country and also how technology if shared can make this world a better place. RC Bhargava deserves appreciation for documenting the story of one of the best Indian PSUs (though not a PSU now).
Profile Image for Aashish.
52 reviews23 followers
September 10, 2016
Good book which chronicles how the combination of Indian intellect and enterprise and some out of turn government patronage, helped beat Maruti the tough business climate of the 80s and 90s in India.

The book tends to get repetitive in a few places and at times comes across as rambling. But this is a unique book - coming from the man who ran the best performing PSU and is reasonably forthright in calling out the ills, something atypical for Indian bureaucracy.
Profile Image for Amar Kulkarni.
7 reviews1 follower
April 10, 2014
Although I wish it covered more aspects of Manufacturing, I understand its not, because its aimed at a more general audience than someone from "within" the industry.
A lot of details but I guess if anyone is interested in understanding the Political, economical, social and engineering challenges India puts forth, read this book. Much of what happened 30 years ago still happens in this country anyways :-)
Profile Image for Nishant.
20 reviews3 followers
March 27, 2010
How the dream of Sanjay Gandhi, a common man's car was brought to reality!
A must read, especially for someone who would like to do business in India. A must read for students of any Indian B-School.
Profile Image for Ravinder.
137 reviews20 followers
June 9, 2012
A fantastic read. I would recommend this to all engineering students and any professional interested in knowing how the automobile industry was developed in India.

Plenty of wonderful insights throughout the book.
Profile Image for Vysakh Menon.
11 reviews2 followers
Read
May 15, 2013
Quite a journey..from a rusted old palnt to one of the most profitable companies in India...It shows how even public sector companies can become profitable qith outsacrificing the interest of the public
Profile Image for Saurabh Shanbhag.
2 reviews2 followers
March 20, 2012
A brilliant tale of how a public sector company gave many Indians their first car Maruti 800!
Profile Image for Pavan.
15 reviews2 followers
September 30, 2012
A very good read. The author takes us behind the scene into showing how the Maruti was established; the challenges they had to face in becoming the leading car-manufacturer in India.
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