Maruti - 1: The 800 Rolls Out

The Maruti Story by RC Bhargava is written the way a Western guy would write: a fast-paced narrative, the right level of detail, never boring and yes, with pride in having done something that was very hard. A great read, in short.

Sanjay Gandhi was interested in making a people’s car, ever since he apprenticed at Rolls Royce from 1964 to 1967. His own company named Maruti got nowhere before he died. After his death, a new PSU was formed by Indira Gandhi with the same intent… and the same name. Formed in 1981, its mandate was to get cars rolling within 2 years. A private company head was appointed CEO and chairman, something unheard of for a PSU. An Indira relative, Arun Nehru, was appointed the pointsman for the project. The message in all this? This wasn’t just another PSU; so politicians, stay away; and bureaucrats, don’t get in the way.

Multiple foreign car manufacturers were considered for partnership. But the terms, the target price point, the need for a small car, the risks of a new market, the association with the government, and the demands on local manufacturing were turnoffs for most companies. By the time Suzuki was made the partner, it was already Oct, 1982. The clock was ticking, even though the idea was to just bring in knocked down cars (CKD’s) from Japan and assemble them here.

Road shows of the yet-to-be-manufactured Maruti 800 generated a huge amount of interest. But also concerns whether the car could handle Indian roads. Customizations like making the distributor water proof so it could run even on flooded roads; and shock absorbers suited for Indians roads were added.

An unheard of technique, the booking amount, was used to raise cash for the company. The Japanese couldn’t believe the fact that people would give money for a car that might be delivered only years later! Other moves to make money included selling the crates in which the knocked down parts came from Japan: this was sold as Maruti Ply (plywood)!

At times, even the installation of equipment needed innovative thinking. Here’s how the extremely heavy vehicle inspection equipment was lowered into the pit, as told by the contractor who did it:

“Sir, we brought huge blocks of ice and filled the pits with it, rolled the equipment on the ice. In the night, the ice melted and the machine went down and settled in the pit automatically.”

Given the heavy overbooking, a randomizing program was used to decide who got the cars first. Years later, when the need for forex rose, those who could pay in forex were allowed to jump the queue. But for now, when an Indian Airlines employee got the first ever Maruti 800 in end 1983, it was a remarkable achievable: the car had come out by the target date…