I am making a bold claim in this article. Giving credit to one car - a small car for playing an outlandish role in boosting the Indian economy in the mid to late 80s.
Let me start by introducing 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 had a 796 cc, 3-cylinder gasoline engine with power figures that won’t excite anyone. It introduced FWD (front-wheel drive), bucket seats, a floor-mounted synchromesh gearbox, and even air conditioning in the DX AC-TG (Air Conditioning - Tinted Glasses) configuration. The initial supply was imported from Japan which in the years to come, became a hot commodity. Second-hand imported models from the original batch sold for higher than brand-new locally assembled ones because they were perceived to be of higher quality (and this was true to quite an extent).
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. But, all that didn’t stop the Maruti from becoming a darling with sales soon surpassing the incumbents. Maruti’s smaller dimensions, lighter steering, drivability, and most importantly the lower 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. Women’s adoption of driving soared as Maruti became a household name.
A whole chapter can be written on the political wrestling that went on in the 1970s for this venture to be greenlighted. We won’t get into that in this post. I am just glad that the project saw the light of day and I can narrate my recollection of the benefits it had for India.
I will limit the introduction for the car to the paragraphs above. If you are interested in learning more about it, the internet has tons of information. My focus here is to recognize the value created by it for the Indian economy.
Much like APIs for a software platform, the Maruti 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.
It is hard to put a number on the jobs created. So, rather than toil over that, I will list the employment opportunities it created. This is not a complete list by any means since I am not including the jobs created at OEM suppliers, dealerships, authorized service stations, certified resell programs, secondary parts manufacturers, independent mechanics, body shops, etc. Let’s look at the list
Driving Schools: The Maruti was cheaper-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. The driving schools thrived becoming a viable occupation.
Restaurants, Street food - Families gained mobility. It became easier for a family of 4 or 5 to go out more and try food outside the house. The food business started seeing a steady rise.
Private Taxis - Lower cost of operations and reliability led to many taxi companies being started throughout the country.
Drivers - While the Maruti boosted self-driving, it also created the need for more drivers for ferrying the family around, taking kids to schools, shopping trips, etc.
Employment at RTOs (DMV in the US) grew as applicants rose for taxi permits, driving licenses, etc.
Track Racing - This sport was completely missing from India until the Maruti came along and then suddenly, there were track events being organized everywhere. It was funny to see that every single car competing was a Maruti. So, ultimately, this was a true test of driving skills.
Car Accessories
This deserves its own section because Maruti was responsible for creating 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 them too.
Car Accessory Stores - Such stores started popping up in every city and town offering accessories. And they employed many people specializing in fitting those accessories.
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 large number of music systems were available. The car had a small boot but that didn’t stop the owners from placing woofers in there. Driving around the busy streets with music at full blast became a sort of fashion statement for the well-to-do.
A side business coming out of this was - car music systems for home use. These were portable with good sound quality. The Indian ingenuity of placing speakers on earthen pots yielded great results.
Window tinting - a whole range of them. I will go out on a limb and say that the adoption of window tinting, not just in cars but in buildings was started by Maruti. Large-scale commercial production of window tints started and soon became available for commercial and residential buildings.
Wheels and Wheel covers - They were non-existent during Ambassador and Padmini. After-market wheels were another fashion statement.
Car perfumes and air fresheners - I am deliberately distinguishing the two because perfumes became available in India much earlier than fresheners. I still recollect those citrusy fragrances.
Decals - Who cared that the Maruti wasn't a performance car? You could apply decals claiming yours as a Ferrari or a Lambo or whatever you fancied.
Custom Lighting - Your Maruti could have off-road lighting, under-carriage lighting, musical lights, etc. Whatever your imagination and pocket could afford.
Seat covers - A big necessity due to the dust conditions and the factory-fitted seats were vinyl - very uncomfortable in the heat.
Interior decorations - A wide selection of things you could place inside your cars. The most common being idols of gods and goddesses.
I hope this gives you an idea of how this small car not just came to rule the Indian hearts, it played a significant role in giving a boost to the country’s economy. It is a hard-to-recognize fact because people never saw it this way but I truly believe that if we list the major factors that boosted India’s economy since its independence, Maruti’s influence would be noteworthy.