In this exclusive interview, Raghul Sivaguru spoke to Mr. Partho Banerjee, Senior Executive Officer, Sales and Marketing, Maruti Suzuki India Ltd (MSIL), to discuss the company’s remarkable journey and vision for the future. As India’s leading automobile manufacturer, Maruti Suzuki recently achieved the monumental milestone of producing 3 crore vehicles, reflecting their unwavering commitment to excellence and customer satisfaction over four decades. We delve into their strategies for maintaining a strong market presence amidst fierce competition, their extensive dealer and service network, and the innovative steps they are taking to ensure top-notch customer experiences. From their plans to expand production capacity and model range to their focus on digital initiatives and training, this interview provides a comprehensive overview of how Maruti Suzuki continues to drive forward with a customer-centric approach. Join us as we explore the key factors behind MSIL’s sustained success and their ambitious goals for the future.
Firstly, congratulations on Maruti Suzuki’s staggering milestone of 3 crore cumulative production milestone. What are your thoughts on this extraordinary feat?
Moments such as this are an opportunity to reflect not only on the magnitude of the achievement but also on the responsibility entrusted upon us by the Indian customer. Four decades of our relentless pursuit to serve the customer with world-class products and technology, complemented by our extensive sales and after-sales network, have helped us deliver on our mission to put India on wheels.
Today, India is the world’s third-largest passenger vehicle market and is expected to grow even stronger in the years ahead. To meet the demands and aspirations of our customers, we plan to invest further and increase our annual production capacity to 4 million units by the end of the fiscal year 2030-31. To this end, we will establish two new Greenfield manufacturing plants, each with a capacity of 10 lakh units, in Kharkhoda-Haryana and Gujarat. We will also expand our range of models from the current 18 to 28 by the end of the fiscal year 2030-31.
How strong is MSIL’s dealer network across the country? How many 3S facilities do you currently have and how many additional touch points across India?
Maruti Suzuki prioritizes customer convenience and has the largest and most extensive vehicle sales and service network in the country.
Presently, MSIL’s service network consists of 4,993 workshops, including 3,399 Arena workshops, 426 Nexa workshops, and 1,168 Maruti Authorized Service Centres. These service touch points are spread across 2,486 cities in India. For sales, MSIL has a robust network with over 3,002 Arena outlets in more than 2,535 cities, 496 Nexa outlets in over 301 cities, 381 commercial outlets in 274 cities, and 586 True Value outlets in 292 cities.
This extensive network ensures our customers always have easy access to the sales and service facilities they need, making their ownership experience seamless and enjoyable.
Despite heavy competition in the passenger car segment in India, MSIL has remarkably managed to hold its strong position, and after-sales service is a key factor in this aspect. What is MSIL doing to deliver above-par customer satisfaction when it comes to vehicle sales and after-sales service?
At Maruti Suzuki India, we prioritize exceptional sales and after-sales experiences. Our nationwide service network expansion demonstrates this commitment, providing customers with convenient access to authorized support. This infrastructure, combined with digital innovations like online service booking and smart pickup facilities (currently used by 30% of our customers), enhances convenience.
We also recognize the importance of a skilled workforce. Our digital broadcasting centres and the Suzuki Service Qualification System ensure our technicians possess the expertise to handle our diverse and technologically advanced vehicles.
Our emphasis on rural expansion, with tailored service models for these areas, demonstrates our dedication to serving all customers across India.
These comprehensive efforts solidify our commitment to seamless and satisfying ownership experiences, and the customer-centric approach reinforces our position as a leader in India’s competitive automotive market.
Is there an interesting insight into how many vehicles are sold and serviced each day by the retail outlets and service centres of MSIL across the country?
To serve our valued customers, Maruti Suzuki operates on a truly impressive scale. In the fiscal year 2023-24, we sold 1,793,644 vehicles domestically. That translates to an average of nearly 5,000 vehicles sold every single day through our nationwide network of MSIL retail outlets.
Furthermore, our MSIL service centers service almost two million vehicles every month. This means we expertly service an astounding average of over 65,000 vehicles each day!
These figures highlight our unwavering dedication to meeting the ever-evolving needs of Indian consumers.
Who are the target audiences for the lease and subscription models? What is the tenure of the loan taken predominantly by the customers of MSIL?
Maruti Suzuki’s subscription model primarily attracts three key customer segments:
Convenience Seekers: Individuals needing short-term vehicle solutions without the hassles of traditional ownership. This might include those relocating temporarily or needing a car for specific periods.
Prime Customers: Customers who desire the experience of frequently upgrading to a new car (every few years).
Aspiring Millennial: Customers who may lack credit history or find the financial barriers of traditional purchases (down payments, EMIs) less appealing.
Notably, more than 65% of the subscriptions come from users opting for a 3-4 year tenure period. Additionally, the Brezza, Baleno, Grand Vitara, and Ertiga are among the most subscribed popular models, accounting for over 53% of the overall subscriptions.How do you ensure the quality of your service is top-notch and, more importantly in today’s fast-paced world, ensure quick service turnaround time and get your customers’ vehicles back on the road?
As previously mentioned, Maruti Suzuki places a high value on investing in the training and development of its workforce to provide top-notch service. We continuously up skill our staff to ensure they are equipped to provide easy and efficient servicing of technologically advanced vehicles while maintaining high standards of vehicle care.
In addition to our skilled workforce, we have introduced several innovative formats to ensure quick turnaround and customer convenience. These formats include select workshops that provide service facilities seven days a week and at night, the Doorstep Service Facility, the specially designed ‘Service on Wheels’, Maruti Mobile Support, and the Quick Response Team. These services enable our customers to easily access our services at their convenience.
What has MSIL done to step up the game when it comes to on-site/road-side service assistance? How feasible/challenging is it, given the vastness and complexity of our country’s geography?
The on-road assistance service offers customers peace of mind while travelling, ensuring they are never stranded and receive help in the quickest time possible. We have integrated the on-road assistance help service on our Maruti Care app, allowing customers a fast way to call for help during an emergency and receive timely assistance. In a vast country like ours, providing such a service may seem challenging for many companies. However, we have the largest service network extending to even the country’s remote parts. With this strong presence, we can offer our customers a quick response through on-road assistance.
How strong is MSIL’s OE spares business? How are you working on growing the same?
Maruti Suzuki’s OE (Original Equipment) spares business is a crucial aspect of providing customers with access to genuine spare parts for their vehicles. We are actively expanding our dealer network, especially in rural areas, to ensure that OE spares are more accessible to everyone.
Furthermore, to educate our customers about the benefits of using genuine parts and maintaining vehicle safety, we regularly run online campaigns. Our dealerships also display counterfeit parts to help customers differentiate between genuine and counterfeit products.
Through these efforts, Maruti Suzuki is committed to having a strong and growing OE spares business.
We are living in a complex time frame with vehicles from BS-II to BS-VI on the road and we are adding CNG, EVs, hybrids, and other power trains to it. How much of a challenge is it to train your sales/service workforce for such complexity? How are MSIL and its channel partners handling the same?
The automotive industry is rapidly evolving and introducing diverse power trains, which creates a challenge for the workforce to keep up with the required training. To overcome this, Maruti Suzuki has established digital broadcasting centres across the country to train and up skill service technicians. They have also introduced the Suzuki Service Qualification System, which allows mechanics to upgrade their skills from bronze level to gold level based on their product knowledge and service skills. Each region has a standalone training division and dedicated training managers to ensure proper support and effective training delivery.
Where does MSIL stand as far as digital initiatives related to service and spares are concerned? When was the Maruti Care App launched, is it free for all users, and how many people do you have on the platform at present?
Maruti Suzuki is always cognizant of customer needs and caters to them. As we observed a growing integration of digital tools in consumers’ lifestyles, we decided to adopt digitalization ahead of most OEMs in the country to offer customers an even more convenient car buying and ownership experience.
We launched the Maruti Care app in 2015 to enhance the service experience and add another level of convenience. But as we enhanced our focus on digital initiatives, we decided to merge the Maruti Care app with our Maruti Suzuki Rewards super app. A first-of-its-kind loyalty program, the Rewards app offers a bouquet of benefits on the purchase of Maruti Suzuki cars, service, insurance, genuine accessories, and customer referrals among others.
The Rewards app offers the convenience of booking a service appointment, locating the nearest dealer workshop through Google Maps, tracking the status of the car given for service, keeping track of the cost of maintenance of the car on a yearly basis, and a service cost calculator. This app also provides some driving and maintenance tips, service due reminders, and on-road assistance. Available free of charge for Android and iPhone users, currently, we have 18,85,000+ customers who are benefitting from the Maruti Suzuki Rewards app.
What is your take on the growth of the used car segment? How is True Value performing and what is your market share?
The used car market is seeing a significant increase in India. For every two new cars sold, three second-hand cars are sold in the country. Therefore, in FY23-24, we also experienced a good amount of growth. The pre-owned car business has now returned to its pre-COVID levels, and we achieved 4.8 lakh sales at True Value in FY23-24, making True Value the fifth-largest automotive brand in the country.
What is MSIL’s presence on the driver training front – how many training schools do you have at present? Do you track how many of those getting trained gets converted to an MSIL customer?
Maruti Suzuki’s commitment to road safety is evident through its extensive Maruti Suzuki Driving School (MSDS) network. With more than 520 schools spread across over 250 Indian cities, MSDS has successfully trained over 2 million learners. At Maruti Suzuki, we firmly believe that driving is a crucial life skill, and through MSDS, our goal is to continue expanding the network and providing quality driving training to over 4 million individuals by 2030.
While we track overall training figures, conversion rates to Maruti Suzuki customers remain confidential. Our primary focus lies in equipping individuals with the skills and knowledge for safe and confident driving on Indian roads.
What is MSIL’s strategy to keep getting better on sales and service and further delighting your customers in this regard?
Our continued success depends on consistently exceeding customer expectations in sales and service. To achieve this, we have a multifaceted strategy focused on:
Network Expansion & Accessibility: We will continue our strategic expansion of sales and service touchpoints, with emphasis on rural markets, to bring convenience directly to more customers throughout India.
Digital Transformation: We will further streamline our sales and service processes with technology. This includes enhancing online booking platforms and implementing smart pick-up and delivery systems across our network.
Continued Focus on Skill Development: Our digital broadcasting centers and the Suzuki Service Qualification System will remain foundational to ensuring our workforce is always prepared to handle the latest technologies and service techniques.
Customer-Centricity in Innovation: We will actively seek customer feedback and leverage data analytics to gather insights that will help us tailor future service offerings and innovations to address customers’ evolving needs and expectations.
- MSIL’s Sales & Service Network – Mind-Boggling Numbers
- 3,002 Arena Outlets (in 2,535+ cities)
- 496 Nexa Outlets (in 301+ cities)
- 381 Commercial Outlets (in 274 cities)
- 586 True Value Outlets (in 292 cities)
- 4,993 Workshops (3,399 Arena, 426 Nexa, 1,168 Maruti Authorized Service Centres)
- Service Touch Points across 2,486 Indian cities
- Vehicles sold every day domestically – 5,000+
- Vehicles serviced every day domestically – 65,000+
