Suzuki is able to reduce its manufacturing cost using
Answers
New Delhi: Maruti Suzuki India has smashed all forecasts and reported the highest ever profit in its history for 2012-13. How did Maruti achieve this, in the very year when passenger vehicle market is down in the dumps and car makers are struggling with piling inventories?
By relentless focus on driving down costs, making further inroads into rural markets and by hedging currencies to lessen the impact of yen movement on its bottomline. In a small way, price increase in the last quarter of 2012-13 has also helped but Maruti's biggest achievement able to do is bring down costs while simultaneously opening up new frontiers for car sales. Also, new launches like the Ertiga MPV have helped Maruti in not only attaining record profits but also in improving market share by a percentage point to 39.6% for the full year; its share stood at 42% in the March quarter.
Its very possible for Suzuki to reduce its manufacturing cost and increasing its profit without affecting its potential output.
They can come up with a programs of training and mentoring the mechanics whose aim is to seek employment afterwards. They may then use the trainees as the source of the workforce in their manufacturing procedures during the training sessions.