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Indian automotive industryPre 1983 1983-1993 1993-2007
•Closed market
• Growth of market limited by supply
• Outdated models
Players• Hindustan Motors• Premier• Telco• Ashok Leyland• Mahindra & Mahindra
•Suzuki, Japan and GOI jointventure to form Maruti Udyog
• Joint ventures with companies in commercial vehicles and components
Players• Maruti Udyog• Hindustan Motors• Premier• Telco• Ashok Leyland• Mahindra & Mahindra
•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
Pre Liberalization Post Liberalization
GROWTH DRIVERS OF 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 Nepal’s leading automobile manufacturing company and the market leader .
It had 18.28% of the company was owned by the Indian government and 54.2% by Suzuki of Japan.
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 ModelsManufactured locally
• 800 (Launched 1983)
• Omni (Launched 1984)
• Gypsy (launched 1985),
• WagonR (Launched 2000)
• Alto (Launched 2000)
• Swift (Launched 2005)
• Estilo (Launched 2009)
• SX4 (Launched 2007)
• Swift DZire (Launched 2008)
• A-star (Launched 2008)
• Ritz (Launched 2009)
• Eeco (Launched 2010)
• Alto K10(Launched 2010)
Imported
• Suzuki Grand Vitara, Grand Vitara (Launched 2007), Kizashi (Launched 2011)
Discontinued car models
• 1000 (1990–1994), Zen (1993–2006)
• Esteem (1994–2008), Baleno (1999–2007)
• Zen Estilo (2006–2009), Versa (2001–2010)
• Grand Vitara XL7 (2003–2007)
MAJOR COMPETITORS
Passenger Vehicle market(India)
Financials of the Company(2011)
Sales Turnover- 36299.74 (in crore)
Net Profit- 2288.64 (in crore)
Earning per share - 79.21
Market Share- 50% (2010)
Till March, 2011 Maruti Suzuki had 44.9% of Market share.
Market share
Marketing Mix
Price
Product
Promotion
Place
Marketing Mix Maruti
SWOT Analysis of Maruti Udyog
STRENTHSContemporary technology
Japanese Management practices
After sale services
Distribution
Diversification & R&D
WEAKNESSStill depends upon SUZUKI COPORATION
10% components are manufactured outside India
Still considered as poor man’s brand
Unaccustomed to international standards or keen competition.
OPPURTUNITYfirst company to roll out suitably Designed cars before 2008 as per Govt.’s Proposal of new ethanol (renewable)
Other companies lacks economy of scale
Rising demand
Untapped rural market
THREATNumbers of new Technology driven players and manufactures are in market
Reduction in subsidies by government on petroleum products
Changing environmental and emission norms
Higher local taxes
BCG Matrix with respect to Maruti models
STARS
Swift
QUESTION MARKS
CervoKizashi
CASH COWS
AltoWagon R
DOGS
M-800
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‘