Abstract
Maruti Udyog Ltd. (MUL) was set up in 1980 by the government to produce automobiles. By collaborating with Suzuki Motor Company in 1982, it was hoped that the famed Japanese style of management would catalyze the small and backward car industry and some of the others to which it was linked. Maruti got off to an excellent start by public sector standards. However, by 1985, fiscal, balance of payments, and technology transfer problems began to surface. With current order books winding down by 1990, questions arise as to MUL's mission, its product-market strategies, its pricing policy, and the value of Japanese participation. Questions also arise regarding the coherence, long term stability, and developmental aims of government's policy towards the automobile industry.
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