This Day in History (14-Aug-1980) – Centre nationalizes Maruti company

Maruti’s history begins in 1970, when a private limited company named ‘Maruti technical services private limited’ (MTSPL) is launched on November 16, 1970. The stated purpose of this company was to provide technical know-how for the design, manufacture and assembly of “a wholly indigenous motor car”. In June 1971, a company called ‘Maruti limited’ was incorporated under the Companies Act and Sanjay Gandhi became its first managing director. After a series of scandals, “Maruti Limited” goes into liquidation in 1977. This is followed by a commission of inquiry headed by Justice A. C. Gupta, which submits its report in 1978. On 23 June 1980, Sanjay Gandhi dies when a private test plane he was flying crashes. After his death, and at the behest of Indira Gandhi, the Indian Central government salvages Maruti Limited and starts looking for an active collaborator for a new company: Maruti Udyog Ltd being incorporated in the same year.

Maruti Suzuki India Ltd was incorporated on February 24, 1981 with the name Maruti Udyog Ltd. The company was formed as a government company, with Suzuki as a minor partner, to make a people’s car for middle class India. Over the years, the company’s product range has widened, ownership has changed hands and the customer has evolved. In October 2, 1982, the company signed the license and joint venture agreement with Suzuki Motor Corporation, Japan. In the year 1983, the company started their productions and launched Maruti 800. In the year 1984, they introduced Maruti Omni and during the next year, they launched Maruti Gypsy in the market. In the year 1987, the company forayed into the foreign market by exporting first lot of 500 cars to Hungary.

As of May 2007, the government of India sold its complete share to Indian financial institutions and no longer has any stake in Maruti Udyog. As of November 2012, Maruti had a market share of 37% of the Indian passenger car market. In February 2012, the company sold its ten millionth vehicle in India. Till recently the term “Maruti”, in popular Indian culture, was associated tothe Maruti 800 model.

 

Reference:

http://www.indianage.com/search.php

http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Maruti-Suzuki-India-Ltd/532500

http://en.wikipedia.org/wiki/Maruti_Suzuki

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