Indian automotive industry

Pre 1983
Closed market
Growth of
market limited
by supply
Outdated
models
Players
Hindustan
Motors
Premier
Telco
Ashok Leyland
Mahindra &

1983-1993
Suzuki, Japan and GOI
joint
venture to form Maruti
Udyog
Joint ventures with
companies in
commercial vehicles
and components
Players
Maruti Udyog
Hindustan Motors
Premier
Telco
Ashok Leyland

1993-2007
DE licensing of sector in
1993
Global major OEMs
start assembly in India
(Toyota, GM, Ford,
Honda, Hyundai)
Imports allowed from
April 2001; alignment of
duty on components and
parts to ASEAN levels
Implementation of VAT

Industry

INDIAN AUTO MARKET

2010
Rising industrial and agricultural output
Favorable demographic distribution with
rising working population and middle class

Urbanization
Greater affordability of vehicles
Easy finance schemes

Maruti Udyog Ltd.

Facts
Maruti Suzuki is India and Nepals leading automobile manufacturing
company and the market leader .

It had 18.28% of the company was owned by theIndian government and

54.2% bySuzukiofJapan.

As of November 2012, it had a market share of 37% of the Indian

passenger car market.

Competed to Hindustan motors by launching Maruti 800 in 1984.

On 17th September,2001 Maruti Udyog was renamed to Maruti Suzuki
India Limited.

It is subsidiary of Suzuki Motor Corporation of Japan

Maruti Models
Manufactured locally

800(Launched1983)

Omni(Launched1984)

Gypsy(launched1985),

WagonR(Launched2000)

Alto(Launched2000)

Swift(Launched2005)

Estilo(Launched2009)

SX4(Launched2007)

SwiftDZire(Launched2008)

A-star(Launched2008)

Ritz(Launched2009)

Eeco(Launched2010)

AltoK10(Launched2010)
Imported

SuzukiGrandVitara,GrandVitara(Launched2007),Kizashi(Launched2011)
Discontinued car models

1000(19901994),Zen(19932006)

Esteem(19942008),Baleno(19992007)

ZenEstilo(20062009),Versa(20012010)

GrandVitaraXL7(20032007)

MAJOR COMPETITORS

Passenger Vehicle
market(India)

Financials of the
Company(2011)
SalesTurnover-36299.74(incrore)
NetProfit-2288.64(incrore)
Earningpershare-79.21
MarketShare-50%(2010)
TillMarch,2011MarutiSuzukihad44.9%ofMarketshare.

Market share

Marketing Mix
Maruti

SWOTAnalysisofMarutiUdyog

STRENTHS
Contemporarytechnology
JapaneseManagementpractices
Aftersaleservices
Distribution
Diversification&R&D

OPPURTUNITY
firstcompanytorolloutsuitablyDesignedcars
before2008asperGovt.sProposalofnew
ethanol(renewable)
Othercompanieslackseconomyofscale
Risingdemand
Untappedruralmarket

WEAKNESS
StilldependsuponSUZUKICOPORATION
10%componentsaremanufacturedoutside
India
Stillconsideredaspoormansbrand
Unaccustomedtointernationalstandardsor
keencompetition.

THREAT
NumbersofnewTechnologydrivenplayers
andmanufacturesareinmarket
Reductioninsubsidiesbygovernmenton
petroleumproducts
Changingenvironmentalandemission
norms
Higherlocaltaxes

BCG Matrix with respect to Maruti

models

STARS

Swift
CASH
COWS

Alto
Wagon
R

QUESTIO
N MARKS

Cervo
Kizashi

DOGS

M800

Decline in Market Share

Obsolete
Industrial Relations

Campaigns
Three compact car models - Alto, WagonR, and Zen
-- competing with Hyundai Santro, Tata Indica, and
Fiat Palio.

In 2003,to attract customers Maruti launched novel

offers like "Change Your Life" campaign.

It also offered vehicle insurance for just

-Rupee One only