Maruti 800 – The car that catalyzed the Indian economy

Image Credit: Wikipedia By Swiftshashi – Own work, CC BY-SA 4.0

I am making a bold claim in this article. Giving credit to one car, a small car, for playing a significant role in boosting the Indian economy in the mid-to-late 80s.

First, let me introduce the car itself. The Maruti 800 was launched in India in 1983 as a collaboration between Suzuki, Japan, and the Government of India. These were the days when the Indian economy was strictly controlled (also known as the License Raj), which made foreign investment very difficult, not to mention seriously curbing entrepreneurship. 

The car, with its 796 cc, 3-cylinder gasoline engine, introduced India to FWD (front-wheel drive), bucket seats, a floor-mounted synchromesh gearbox, and even air conditioning in the DX AC-TG (Air Conditioning – Tinted Glasses) model. The initial supply was imported from Japan, and in the years that followed, these imported pieces became highly sought after. Second-hand imported cars were sold for more than brand-new locally assembled ones because they were perceived to be of higher quality (and this was largely true). 

In the early years, its lightweight construction was the subject of much ridicule. The competition (Hindustan Ambassador and Premier Padmini) used thicker gauge steel that faired better with nicks, dings, and minor accidents that were, and still are, too commonplace in India. However, all that didn’t stop the Maruti from becoming a darling of the masses, with sales soon surpassing those of the incumbents. Maruti’s smaller dimensions, lighter steering, drivability, and, most importantly, the low price point truly catalyzed car ownership in India. 

The Maruti was conceived as India’s People’s Car, and it absolutely fulfilled that goal. More importantly, it significantly reduced the gender bias toward driving. As the Maruti became a household name, the adoption of driving by women soared, marking a significant shift in societal norms. 

A whole chapter could be written about the political wrangling that took place in the 1970s to get this venture greenlighted. We won’t get into that in this post. I am glad that the project finally came to light, and I can share my recollection of the benefits it brought to India. 

I will limit the introduction for the car to the paragraphs above. If you are interested in learning more about the car, the internet offers a wealth of information. My focus here is on recognizing the value it created for the Indian economy. 

It is challenging to quantify the number of jobs created. So, rather than toiling over that, I will list the numerous employment opportunities this car was responsible for creating. It is not an exhaustive list, as it does not include jobs created at OEM suppliers, dealerships, authorized service stations, certified reseller programs, secondary parts manufacturers, independent mechanics, body shops, and other related entities. 

The Maruti 800, much like APIs for a software platform, opened up numerous possibilities for 3rd parties to create customizations, something India had never seen before. In the process, it created new businesses and brand-new jobs.

1. Driving Schools: The Maruti was cheap to own and easy to drive. Rather than depending on a driver, Indians started driving themselves. Driving schools cropped up across every city, large or small, offering viable employment to thousands. 
2. Restaurants – Families gained mobility. It became easier for a family of 4 or 5 to go out more and try food outside the house. The restaurant business began to see a steady rise.
3. Private Taxis – Lower cost of operations and reliability led to many taxi companies starting throughout the country.
4. Drivers – While the Maruti boosted driving, it also created the need for more drivers to ferry the family around, take kids to school, and so on. 
5. Employment at RTOs (DMV in the US) increased as the number of applicants for taxi permits, driver’s licenses, and other services rose. 
6. Track Racing – This sport was completely missing from India until the Maruti came along, and then, suddenly, track events were being organized everywhere. It was funny to see that every single car competing was a Maruti.

Car Accessories

Car accessories deserve their own section because, in India, Maruti played a pivotal role in establishing this industry from scratch. Apart from providing necessary features, the accessories also allowed people to flaunt their wealth. I had a lot of fun compiling this list, and I hope you enjoy it too. 

1. Car Accessory Stores – These stores began to appear in every city and town, offering a wide range of accessories. And they employed many people specializing in accessory fitment.
2. Car music systems – In India, Maruti was the first car with a dedicated spot on the dashboard to fit a music system (a car deck, as they were referred). Within a few years of its launch, a wide range of models became available. The car had a small trunk, but that didn’t stop the owners from placing large woofers in it. Driving around the busy streets with music at full blast became a sort of fashion statement for the well-to-do.
3. Window tinting – a whole range of them. The adoption of window tinting, not just in cars but also in buildings, in India, was initiated by Maruti. Large-scale commercial production of window tints started and soon became available for commercial and residential buildings.
4. Wheels and Wheel covers – They were non-existent during the Ambassador and Padmini era. After-market wheels were another fashion statement.
5. Car perfumes and air fresheners – I still recollect those citrusy fragrances. 
6. Decals – Who cared that the Maruti wasn’t a performance car! You could apply decals declaring yours as a Ferrari, a Lambo, or whatever you fancied. 
7. Custom Lighting – Your Maruti could feature off-road lighting, under-carriage lighting, musical lights, and more. Whatever your imagination and your pocket could afford.
8. Seat covers – A big necessity due to the dusty conditions and the fact that factory seats were made of vinyl, which is very uncomfortable in the heat. 
9. Interior decorations – A wide selection of things you could place inside your car. The most common being miniature idols of gods and goddesses. 

As I noted earlier, this list is far from comprehensive. However, it should give you an idea of how this small car not only captured the hearts of Indians but also played a significant role in boosting the country’s economy. It is a hard-to-recognize fact because people have never seen it this way. Still, I genuinely believe that if we list the major factors that have boosted India’s economy since its independence, Maruti’s influence would be near the top.