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  • 1. INTRODUCTIONThe Indian Automobile industry is expected to grow at a CAGR of over 10 percentamounting to over $40 billion by 2010-11. The Commercial Vehicle Segment has beencontributing to the automobile market to a great extent too.The automobile sector of India is the seventh largest in the world. In 2010-11, the countrymanufactured about 3.7 million cars making up an identifiable chunk in the world’s annualproduction of about 73 million cars in a year. The country is the largest manufacturer ofmotorcycles and the fifth largest producer of commercial vehicles. Industry experts havevisualized an unbelievably huge increase in these figures over the immediate future. In theyear 2009, India rose to be the fourth largest exporter of automobiles following Japan, SouthKorea and Thailand. Experts state that in the year 2050, India will top the car volumes of allthe nations of the world with about 611 million cars running on its roads.The Indian automobile industry today reported 30 per cent growth in vehicle production andsales during 2010-11, mainly riding on the back of robust economic growth, more focus onrural areas and new model launches.The Society of Indian Automobile Manufacturers (SIAM), however, forecast a slowdown in the rateand predicts a 15 per cent growth in 2011-12. The Indian industry is expected overtake Brazil tobecome the sixth largest auto maker in the world during this fiscal.Many foreign companies have been investing in the Indian Automobile industry in variousways such as technology transfers, joint ventures, strategic alliances, exports, and financialcollaborations. The auto market in India can boast of attractive finance schemes, increasingpurchasing power, and launch of the latest products.Maruti Suzuki India Limited is a partial subsidiary of Suzuki Motor Corporation of Japan, isIndias largest passenger car company, accounting for over 45% of the domestic car market.The company offers a complete range of cars from entry level Maruti 800 and Alto, to stylishhatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4, Grand Vitara andLuxury Sports sedan Kizashi.It is the first company in India to mass-produce and sell more than a million cars in a year. It islargely credited for having brought in an automobile revolution to India. It is the market leader inIndia and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki IndiaLimited. The companys headquarters are located in Delhi.Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sales are more than45% of total passenger cars sold in the Indian car market. For the past 10 years Maruti Suzukiis getting a stiff competition from the foreign companies like Hyundai, Ford, Honda,Chevrolet and Volkswagen. As a result its sales have gone down and it has lost over 15% ofthe market share in the concerned period.Maruti Suzuki SX4 has been the best-seller car in the A3 segment for quite some time but therecent sales figures have dropped with the inclusion of Volkswagen Vento and Hyundai
  • 2. Verna in the concerned segment. Recently, SX4 diesel variant was launched to give a boostto the sagging sales figures. The move has worked and SX4 is back in the reckoning. Thework does not end there and thus, some surveys had to be carried regarding the profile ofSX4 customers and the analysis of the competition for SX4.OBJECTIVESThe main objectives of my Corporate Internship Project are:The competitor analysis of Maruti SX4 based on sales pitch for the competitorbrand’s car and sales pitch against SX4 by the competitor brand’s car.The sales pitch of Vento, Verna, Fiesta, City and Linea to evaluate their positioning inA3 segment.The customer profiling of the Maruti SX4 based on a questionnaire.The national and regional analysis of the profile of SX4 buyers based on theirprofession, the car they used previously, their next best alternative to SX4 and the keyreason to buy SX4.The SWOT analysis of the concerned public company.The period of the internship will be 6 weeks or 42 days flat.COMPANY PROFILE
  • 3. Maruti Suzuki India Limited, a partial subsidiary of Suzuki Motor Corporation of Japan, is Indiaslargest passenger car company, accounting for over 45% of the domestic car market. It was the firstcompany in India to mass-produce and sell more than a million cars. It is largely credited for havingbrought in an automobile revolution to India. The companys headquarters are located in New Delhi.Maruti Udyog Limited (MUL) was established in February 1981, though the actual productioncommenced in 1983 with the Maruti 800, based on the Suzuki Alto car which at the time was the onlymodern car available in India.Maruti Suzuki has been Indias number one automobile manufacturer and the market leader in the carsegment, both in terms of volume of vehicles sold and revenue earned, for over two decades.More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of SuzukiMotor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public andfinancial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.The company annually exports more than 50,000 cars and has an extremely large domestic market inIndia selling over 1000000 cars annually. Maruti 800, till 2004, was the Indias largest selling compactcar ever since it was launched in 1983. More than a million units of this car have been sold worldwideso far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest sellingin A2 segment.Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi.Maruti Suzuki offers 14 models across following segments:A1 SEGMENT :Maruti 800A2 SEGMENT :Alto, WagonR, Estilo, A-star, Ritz, Swift,A3 SEGMENT :Swift DZire, SX4A4 SEGMENT: Kizashi.MULTI PURPOSE VEHICLES: Omni, EecoUTILITY VEHICLES: Gypsy, Grand Vitara.Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi areimported from Japan as completely built units(CBU), remaining all models are manufactured in MarutiSuzukis Gurgaon Plant.Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for threedecades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact,lightweight engine that is clean and fuel efficient.Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated firstin customer satisfaction among all car makers in India from 1999 to 2009 by J D Power AsiaPacific.MARUTI SUZUKI’s VISIONA leader in the Indian Automobile Industry.Creating Customer Delight and Shareholders wealth.A pride of India!
  • 4. CREATING CUSTOMER DELIGHT THROUGH:Values for money focusQuality in our productsUnparalleled Service network.Maruti Suzuki India limited Manufacturing facilitiesMaruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing facilitieshave a combined production capacity of 1,250,000 vehicles annually.Gurgaon Manufacturing FacilityThe Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread over300 acres (1.2 km2). All three plants have an installed capacity of 900,000 vehicles annually. TheGurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy and Eeco.Manesar Manufacturing FacilityThe Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600 acres(2.4 km2). The production capacity is 550,000 vehicles annually. The Manesar Plant produces the A-star, Swift, Swift DZire and SX4.CAPACITY ADDITIONThe next few years will see great improvements in increasing the capacity at Manesar unit. Currentlythe company is functioning at a rate of 1.4 million units but by FY12, a 250000 capacity will come upat Manesar taking the total capacity to 1.65 million units. This will be followed by yet another unit atManesar in FY13 with a further capacity of 250000 taking the total installed capacity to 1.9 millionunits by the end of FY13.RESEARCH AND DEVELOPMENTIn addition to that the company is also in the process of setting up an R&D (Research andDevelopment) centre at Rohtak. MSIL acknowledges that while it gets excellent support from its parentin launching a number of new models, it is about time that is develops the expertise to do this with itsown R&D capability. Company is in the process of inducting and training design engineers, putting upworld class proving grounds, crash test facilities, wind tunnel laboratories and other testinginfrastructure. This will also see a greater degree of localization, thereby reducing the company’sexposure to the yen.Maruti sales segment wise break-up for 2010-11:
  • 5. The A2 segment is the cash cow segment for Maruti Suzuki. They have been the undisputed King ofthis segment for over two decades.But, Maruti’s share in A2 segment is declining:Maruti’s market share in 2010-11 stands declined at 44.94%.268458085571312721385666157219SALES IN 2010-11A1 SEGMENTA2 SEGMENTA3 SEGMENTA4 SEGMENTUTILITY VEHICLESMULTI PURPOSE VEHICLES58.11%57.74%56.12% 55.99%54.50%55.00%55.50%56.00%56.50%57.00%57.50%58.00%58.50%Jan-08 Jan-09 Jan-10 Jan-11Marutis market share in A2 segment
  • 6. LATEST MODEL LAUNCHED: MARUTI KIZASHIMODELS TO BE LAUNCHED IN 2011: RIII MUV, CERVO Volkswagen AG have brought 19.9% stake in Suzuki Motor Corporation and thus, MarutiSuzuki cars like the SX4, A-star and Swift will be available in Europe under the Volkswagenbrand name. Maruti would soon enter the MPV segment with the RIII car to introduce itself into a segmentwhere it has no market share.13.97%44.94%14.26%6.79%4.25%2.36%3.91% 2.05%3.34%0.84%MARKET SHARE IN PASSENGER VEHICLE SALESIN 2010-11Tata MotorsMaruti Suzuki IndiaHyundai Motor IndiaMahindra and MahindraGeneral Motors IndiaHonda Siel carsFordVolkswagenToyotaFIAT