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INTRODUCTION
The Indian Automobile industry is expected to grow at a CAGR of over 10 percent
amounting to over $40 billion by 2010-11. The Commercial Vehicle Segment has been
contributing 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 country
manufactured about 3.7 million cars making up an identifiable chunk in the world’s annual
production of about 73 million cars in a year. The country is the largest manufacturer of
motorcycles and the fifth largest producer of commercial vehicles. Industry experts have
visualized an unbelievably huge increase in these figures over the immediate future. In the
year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South
Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all
the 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 and
sales during 2010-11, mainly riding on the back of robust economic growth, more focus on
rural areas and new model launches.
The Society of Indian Automobile Manufacturers (SIAM), however, forecast a slowdown in the rate
and predicts a 15 per cent growth in 2011-12. The Indian industry is expected overtake Brazil to
become the sixth largest auto maker in the world during this fiscal.
Many foreign companies have been investing in the Indian Automobile industry in various
ways such as technology transfers, joint ventures, strategic alliances, exports, and financial
collaborations. The auto market in India can boast of attractive finance schemes, increasing
purchasing power, and launch of the latest products.
Maruti Suzuki India Limited is a partial subsidiary of Suzuki Motor Corporation of Japan, is
India's 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 stylish
hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4, Grand Vitara and
Luxury Sports sedan Kizashi.
It is the first company in India to mass-produce and sell more than a million cars in a year. It is
largely credited for having brought in an automobile revolution to India. It is the market leader in
India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India
Limited. The company's headquarters are located in Delhi.
Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sales are more than
45% of total passenger cars sold in the Indian car market. For the past 10 years Maruti Suzuki
is 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% of
the market share in the concerned period.
Maruti Suzuki SX4 has been the best-seller car in the A3 segment for quite some time but the
recent sales figures have dropped with the inclusion of Volkswagen Vento and Hyundai
Verna in the concerned segment. Recently, SX4 diesel variant was launched to give a boost
to the sagging sales figures. The move has worked and SX4 is back in the reckoning. The
work does not end there and thus, some surveys had to be carried regarding the profile of
SX4 customers and the analysis of the competition for SX4.
OBJECTIVES
The main objectives of my Corporate Internship Project are:
The competitor analysis of Maruti SX4 based on sales pitch for the competitor
brand’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 in
A3 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 their
profession, the car they used previously, their next best alternative to SX4 and the key
reason 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
Maruti Suzuki India Limited, a partial subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market. It was the first
company in India to mass-produce and sell more than a million cars. It is largely credited for having
brought in an automobile revolution to India. The company's headquarters are located in New Delhi.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production
commenced in 1983 with the Maruti 800, based on the Suzuki Alto car which at the time was the only
modern car available in India.
Maruti Suzuki has been India's number one automobile manufacturer and the market leader in the car
segment, 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 Suzuki
Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and
financial 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 in
India selling over 1000000 cars annually. Maruti 800, till 2004, was the India's largest selling compact
car ever since it was launched in 1983. More than a million units of this car have been sold worldwide
so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling
in 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 800
A2 SEGMENT :Alto, WagonR, Estilo, A-star, Ritz, Swift,
A3 SEGMENT :Swift DZire, SX4
A4 SEGMENT: Kizashi.
MULTI PURPOSE VEHICLES: Omni, Eeco
UTILITY VEHICLES: Gypsy, Grand Vitara.
Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are
imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti
Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three
decades. 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 first
in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia
Pacific.
MARUTI SUZUKI’s VISION
A leader in the Indian Automobile Industry.
Creating Customer Delight and Shareholders wealth.
A pride of India!
CREATING CUSTOMER DELIGHT THROUGH:
Values for money focus
Quality in our products
Unparalleled Service network.
Maruti Suzuki India limited Manufacturing facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing facilities
have a combined production capacity of 1,250,000 vehicles annually.
Gurgaon Manufacturing Facility
The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread over
300 acres (1.2 km2
). All three plants have an installed capacity of 900,000 vehicles annually. The
Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy and Eeco.
Manesar Manufacturing Facility
The 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 ADDITION
The next few years will see great improvements in increasing the capacity at Manesar unit. Currently
the company is functioning at a rate of 1.4 million units but by FY12, a 250000 capacity will come up
at Manesar taking the total capacity to 1.65 million units. This will be followed by yet another unit at
Manesar in FY13 with a further capacity of 250000 taking the total installed capacity to 1.9 million
units by the end of FY13.
RESEARCH AND DEVELOPMENT
In addition to that the company is also in the process of setting up an R&D (Research and
Development) centre at Rohtak. MSIL acknowledges that while it gets excellent support from its parent
in launching a number of new models, it is about time that is develops the expertise to do this with its
own R&D capability. Company is in the process of inducting and training design engineers, putting up
world class proving grounds, crash test facilities, wind tunnel laboratories and other testing
infrastructure. This will also see a greater degree of localization, thereby reducing the company’s
exposure to the yen.
Maruti sales segment wise break-up for 2010-11:
The A2 segment is the cash cow segment for Maruti Suzuki. They have been the undisputed King of
this 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%.
26845
808557
131272
138
5666
157219
SALES IN 2010-11
A1 SEGMENT
A2 SEGMENT
A3 SEGMENT
A4 SEGMENT
UTILITY VEHICLES
MULTI PURPOSE VEHICLES
58.11%
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-11
Maruti's market share in A2 segment
LATEST MODEL LAUNCHED: MARUTI KIZASHI
MODELS TO BE LAUNCHED IN 2011: RIII MUV, CERVO
 Volkswagen AG have brought 19.9% stake in Suzuki Motor Corporation and thus, Maruti
Suzuki cars like the SX4, A-star and Swift will be available in Europe under the Volkswagen
brand name.
 Maruti would soon enter the MPV segment with the RIII car to introduce itself into a segment
where 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 SALES
IN 2010-11
Tata Motors
Maruti Suzuki India
Hyundai Motor India
Mahindra and Mahindra
General Motors India
Honda Siel cars
Ford
Volkswagen
Toyota
FIAT

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Introductio1

  • 1. INTRODUCTION The Indian Automobile industry is expected to grow at a CAGR of over 10 percent amounting to over $40 billion by 2010-11. The Commercial Vehicle Segment has been contributing 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 country manufactured about 3.7 million cars making up an identifiable chunk in the world’s annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized an unbelievably huge increase in these figures over the immediate future. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all the 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 and sales during 2010-11, mainly riding on the back of robust economic growth, more focus on rural areas and new model launches. The Society of Indian Automobile Manufacturers (SIAM), however, forecast a slowdown in the rate and predicts a 15 per cent growth in 2011-12. The Indian industry is expected overtake Brazil to become the sixth largest auto maker in the world during this fiscal. Many foreign companies have been investing in the Indian Automobile industry in various ways such as technology transfers, joint ventures, strategic alliances, exports, and financial collaborations. The auto market in India can boast of attractive finance schemes, increasing purchasing power, and launch of the latest products. Maruti Suzuki India Limited is a partial subsidiary of Suzuki Motor Corporation of Japan, is India's 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 stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4, Grand Vitara and Luxury Sports sedan Kizashi. It is the first company in India to mass-produce and sell more than a million cars in a year. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in Delhi. Maruti Suzuki is India’s No. 1 customer satisfaction car company. Its sales are more than 45% of total passenger cars sold in the Indian car market. For the past 10 years Maruti Suzuki is 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% of the market share in the concerned period. Maruti Suzuki SX4 has been the best-seller car in the A3 segment for quite some time but the recent 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 boost to the sagging sales figures. The move has worked and SX4 is back in the reckoning. The work does not end there and thus, some surveys had to be carried regarding the profile of SX4 customers and the analysis of the competition for SX4. OBJECTIVES The main objectives of my Corporate Internship Project are: The competitor analysis of Maruti SX4 based on sales pitch for the competitor brand’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 in A3 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 their profession, the car they used previously, their next best alternative to SX4 and the key reason 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 India's largest passenger car company, accounting for over 45% of the domestic car market. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. The company's headquarters are located in New Delhi. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto car which at the time was the only modern car available in India. Maruti Suzuki has been India's number one automobile manufacturer and the market leader in the car segment, 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 Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and financial 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 in India selling over 1000000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in 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 800 A2 SEGMENT :Alto, WagonR, Estilo, A-star, Ritz, Swift, A3 SEGMENT :Swift DZire, SX4 A4 SEGMENT: Kizashi. MULTI PURPOSE VEHICLES: Omni, Eeco UTILITY VEHICLES: Gypsy, Grand Vitara. Swift, Swift DZire, A-star and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. 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 first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific. MARUTI SUZUKI’s VISION A leader in the Indian Automobile Industry. Creating Customer Delight and Shareholders wealth. A pride of India!
  • 4. CREATING CUSTOMER DELIGHT THROUGH: Values for money focus Quality in our products Unparalleled Service network. Maruti Suzuki India limited Manufacturing facilities Maruti Suzuki has two state-of-the-art manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 1,250,000 vehicles annually. Gurgaon Manufacturing Facility The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2 ). All three plants have an installed capacity of 900,000 vehicles annually. The Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni, Gypsy and Eeco. Manesar Manufacturing Facility The 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 ADDITION The next few years will see great improvements in increasing the capacity at Manesar unit. Currently the company is functioning at a rate of 1.4 million units but by FY12, a 250000 capacity will come up at Manesar taking the total capacity to 1.65 million units. This will be followed by yet another unit at Manesar in FY13 with a further capacity of 250000 taking the total installed capacity to 1.9 million units by the end of FY13. RESEARCH AND DEVELOPMENT In addition to that the company is also in the process of setting up an R&D (Research and Development) centre at Rohtak. MSIL acknowledges that while it gets excellent support from its parent in launching a number of new models, it is about time that is develops the expertise to do this with its own R&D capability. Company is in the process of inducting and training design engineers, putting up world class proving grounds, crash test facilities, wind tunnel laboratories and other testing infrastructure. This will also see a greater degree of localization, thereby reducing the company’s exposure 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 of this 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%. 26845 808557 131272 138 5666 157219 SALES IN 2010-11 A1 SEGMENT A2 SEGMENT A3 SEGMENT A4 SEGMENT UTILITY VEHICLES MULTI PURPOSE VEHICLES 58.11% 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-11 Maruti's market share in A2 segment
  • 6. LATEST MODEL LAUNCHED: MARUTI KIZASHI MODELS TO BE LAUNCHED IN 2011: RIII MUV, CERVO  Volkswagen AG have brought 19.9% stake in Suzuki Motor Corporation and thus, Maruti Suzuki cars like the SX4, A-star and Swift will be available in Europe under the Volkswagen brand name.  Maruti would soon enter the MPV segment with the RIII car to introduce itself into a segment where 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 SALES IN 2010-11 Tata Motors Maruti Suzuki India Hyundai Motor India Mahindra and Mahindra General Motors India Honda Siel cars Ford Volkswagen Toyota FIAT