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Maruti Suzuki

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  • 1. Mapping of different cars, of different companies Synopsis Title Mapping of different Cars, of different companies. Issue Statement Analysis of different Cars and their demand in the market Scope Sample size of 50 Questionnaires to be filled by people who are living in New Delhi. Area The area for the study is south and west Delhi based. Likely Contribution Will help the organizations of which this research project design will be conducted, to develop a better understanding between consumers and producers. It will also generate a usable primary database for the organizations, Contributed by the students of Skyline Business School, Gurgaon. 1 Research Methodology
  • 2. Mapping of different cars, of different companies Methodology A sample size of 50 Questionnaires will be filled from some places in south and west Delhi. Our research is based on taste of the respondents. To know the market share and demand we have checked parking areas of some market places and some red lights in south and west Delhi. Method of data collection Primary Data was collected through questioners and in-depth interviews, conducted in particular areas. Secondary Data was collected through books/magazines and Internet. 2 Research Methodology
  • 3. Mapping of different cars, of different companies Company Overview Maruti Suzuki More than half the number of cars sold in India wears a Maruti Suzuki badge. They are a subsidiary of Suzuki Motor Corporation Japan. As India's largest passenger car company, they account for over 50 per cent of the domestic car market. They have a sales network of 562 outlets in 372 towns and cities, and provide maintenance support to customers at 2538 workshops in over 1200 towns and cities (as on December 31,2007). Since inception, they have produced and sold over 6.75 million vehicles, including almost 500,000 units in Europe and other export markets. They have been rated first in customer satisfaction for eight years in a row in J D Power's Surveys, and are India's Most Respected Automobile Company (As per survey conducted by Business world, a reputed Indian Magazine) Also, in an independent survey conducted by Forbes.Com where they rated top 200 reputed companies on various parameters such as reputation within the customer and employee fraternity, they stood 91st. In the automobile section they finished 7th. They offer 10 models ranging from people's car Maruti 800 to stylish hatchback Swift, SX4 sedan and luxury Sports Utility vehicle Grand Vitara. Maruti was able to sustain its national market share at around 54% in 2007. There was a big jump in exports to non-EU market, like Latin America, Indonesia, Egypt, Sri Lanka, totally around 50,000 units. On newly rolled out 'Estilo,' the response was very good, as sales clocked 20,000 units since its launch in 2007 end. 3 Research Methodology
  • 4. Mapping of different cars, of different companies Hyundai Hyundai Motor India Limited (HMIL) is a completely owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 34 variants of passenger cars in six segments. The Santro in the B segment, Getz Prime, i10 in the B+ segment, the Accent and Verna in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson in the SUV segment. Hyundai Motor India, continuing its tradition of being the fastest growing passenger car manufacturer, registered total sales of 299,513 vehicles in calendar year (CY) 2006, an increase of 18.5 percent over CY 2005. In the domestic market it clocked a growth of 19.1 percent a compared to 2005, with 186,174 units, while overseas sales grew by 17.4 percent, with exports of 113,339 units. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL is setting up its second plant, which will produce an additional 300,000 units per annum, raising HMIL’s total production capacity to 600,000 units per annum by end of 2007. HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 183 to 250 this year. And with the company’s greater focus on the quality of its after-sales service, HMIL’s service network will be expanded to around 1,000 in 2007. 4 Research Methodology
  • 5. Mapping of different cars, of different companies Honda Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market and has ever since been recognized as an engineering marvel in the Indian automobile industry. The success of City as well as all its other models has led HSCI to become the leading premium car manufacturer in India. The total investment made by the company in India till date is Rs. 1620 crores. The company has a capacity of manufacturing 100,000 cars. Showcase Manufacturing Facility HSCI’s state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P with an investment of Rs. 450 crore. The green-field project is spread across 150 acres of land (over 6,00,000 sq. m.). The initial installed capacity of the plant was 30,000 cars per annum, which was thereafter increased to 50,000 cars on a two-shift basis. The capacity has further been enhanced to 1,00,000 units annually in February 2008 . The capacity expansion was necessitated by the excellent performance of all the Honda models, particularly the growing demand for City ZX in India. Several modifications were done by the company with the objective of offering higher quality products to its customers, faster and quicker. The expansion process also included expansion of the covered area in the plant, from 1,07,000 sq. m. to 1,31,794 sq. m. 5 Research Methodology
  • 6. Mapping of different cars, of different companies HSCI currently produces the Honda City ZX, Civic and Accord models in India and the premium SUV, CR-V is sold as a fully imported unit from Japan. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management. Sales and Distribution Network Honda Siel Cars India has a strong sales and distribution network spread across the country. The network includes 73 facilities in 46 cities. HSCI dealerships are based on the “3S Facility” (Sales, Service, Spares) format, offering complete range of services to its customers. Product Range • City ZX • CIVIC • ACCORD • CR-V 6 Research Methodology
  • 7. Mapping of different cars, of different companies TATA Motors Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the second largest in the passenger vehicles market with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fifth largest medium and heavy commercial vehicle manufacturer, and the world's second largest medium and heavy bus manufacturer. The company's 22,000 employees are guided by the vision to be "best in the manner in which they operate, best in the products they deliver and best in their value system and ethics." Tata Motors helps its employees realise their potential through innovative HR practices. The company's goal is to empower and provide employees with dynamic career paths in similarity with corporate objectives. All- round potential development and performance improvement is ensured by regular in-house and external training. The company has won several awards recognising its training programmes. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles work on Indian roads, since the first rolled out in 1954. The company's manufacturing base is spread across India - Jamshedpur (Jharkhand) in the east, Pune (Maharashtra) in the west, and in the north in Lucknow (Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to Kolkata in West Bengal) to manufacture the company's small car. The nation-wide dealership, sales, services and spare parts network comprises over 2,000 touch points. The company also has a strong auto finance operation, TML 7 Research Methodology
  • 8. Mapping of different cars, of different companies Financial Services Limited, supporting customers to purchase Tata Motors vehicles. Tata Motors, the first company from India's engineering sector to be listed in the New York Stock Exchange (September 2004), has also emerged as an international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles Company, Korea's second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has launched several new products in the Korean market, while also exporting these products to several international markets. Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach manufacturer, with an option to acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In 2006, it formed a joint venture with the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to manufacture fully- built buses and coaches for India and select international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi Automotive Assembly Plant Company of Thailand to manufacture and market the company's pickup vehicles in Thailand. In 2006, Tata Motors and Fiat Auto formed an industrial joint venture at Ranjangaon (near Pune in Maharashtra, India) to produce both Fiat and Tata cars and Fiat powertrains for the Indian and overseas markets; Tata Motors already distributes and markets Fiat branded cars in India. In 2007, Tata Motors and Fiat Auto entered into an agreement for a Tata license to build a pick-up vehicle bearing the Fiat nameplate at Fiat Group Automobiles' Plant at Córdoba, Argentina. The pick-up will be sold in South and Central America and select European markets. 8 Research Methodology
  • 9. Mapping of different cars, of different companies Findings Market Share Maruti Hyundai 52% 18% Honda TATA Toyota Ford 8% Mahindra 4% 8% 4% 6% Companies Percentage (%)of Responses Maruti 52% Hyundai 18% Honda 8% TATA 8% Toyota 6% Ford 4% Mahindra 4% Market Share of small cars 3 1 Wagon R(Maruti) 10 800(Maruti) Santro(Hyundai) 5 Alto(Maruti) Indica(TATA) .i 10(Hyundai) 9 Research Methodology 6 5
  • 10. Mapping of different cars, of different companies Cars/Companies No. of Cars Wagon R (Maruti) 10 800 (Maruti) 5 Santro (Hyundai) 6 Alto (Maruti) 5 Indica (TATA) 3 .i 10 (Hyundai) 1 Total 30= 60% City (Honda) Market Share of Esteem (Maruti) From the Above chart we concludeCarsMaruti is the king Civic(Honda)sector. Big that, of small car Then after that Hyundai rules the market. Accent(Hyundai) Fiesta(Ford) Scorpio(Mahindra) Safari(Tata) 1 2 2 3 2 10 Research Methodology 1 1
  • 11. Mapping of different cars, of different companies Cars/Companies No. of Cars City (Honda) 2 Esteem (Maruti) 3 Civic (Honda) 1 Accent (Hyundai) 1 Fiesta (Ford) 2 Scorpio (Mahindra) 2 Safari (TATA) 1 Total 12= 24% Market Share of Luxury Cars From the Above chart we wrap up that, Honda and Maruti share the first place in Big car sector. Accord (Honda) 1 Sonata Embera 1 (Hyundai) Corolla (Toyota) Camry (Toyota) 1 1 11 Research Methodology
  • 12. Mapping of different cars, of different companies Cars/Companies No. of Cars Accord (Honda) 1 Sonata Embera (Hyundai) 1 Corolla (Toyota) 1 Camry (Toyota) 1 Total 4= 8% From the Above chart we conclude that, Toyota is the clear winner in Luxury car sector. Market Share Commercial cars (Small) 2 Esteem 3 (Maruti) Omni (Maruti) Indica (TATA) 4 3 Innova (Toyota) 12 Research Methodology
  • 13. Mapping of different cars, of different companies Cars/Companies No. of Cars Esteem (Maruti) 2 Omni (Maruti) 3 Innova (Toyota) 3 Indica (TATA) 4 Total 12= 24% From the Above chart we conclude that, TATA and Maruti share the top position in commercial car sector. Prefrence of colors 20 No. of Responses 15 10 White Silver 5 Black 0 White Silver Black 13 Research Methodology Colors
  • 14. Mapping of different cars, of different companies From the above graph we conclude that most of the people prefer white color for their cars and then silver. Youngsters prefer black color cars for themselves Analysis Based on Salary 50,000 to 1,50,000 1,50,000 to 2,50,000 2,50,000 to 3,50,000 3,50,000 to 5,00,000 Small Cars Big Cars Luxury Cars 14 Research Methodology Category
  • 15. Mapping of different cars, of different companies From the Above Graph we conclude that, the people having salary Rs. 50,000 to Rs. 2,50,000 prefer small cars and the people having salary between 2,50,000 to 3,50,000 prefer big cars, some of them prefer luxury cars also and the people having salary above 3,50,000 per annum prefer luxury cars. For them car is a status symbol. Preference of Cars on the basis of different Attributes Fuel efficency & 50% Budget Attributes Design, status & 20% Fuel efficency & Budget Comfort Design, status & Comfort Fuel efficency & Design Fuel efficency & 30% Design 0% 10% 20% 30% 40% 50% 15 Research Methodology % age
  • 16. Mapping of different cars, of different companies Attributes Outcome Responses Percentage (%)of Responses Fuel efficiency & Budget 25 50% Design, Status & Comfort 10 20% Fuel efficency & Design 15 30% From the Above Graph we conclude that, the people prefer to buy car on the basis of their ability to pay and fuel efficiency and then design, status. Conclusion 1. We conclude that more than 50% of the market is captured by Maruti and then 18% by Hyundai. 2. The segment of Small cars is captured by Maruti and then Hyundai. 16 Research Methodology
  • 17. Mapping of different cars, of different companies 3. The segment of Big cars is captured by Honda and then Maruti. 4. Working people specially those who are Frontline Managers select cars depending upon the fuel efficiency and budget. 5. The segment of Luxury cars is captured by Toyota 6. Majority of the people find the service centers not adequate depending upon the increasing number of cars. 7. Honda and ford spare parts are too expensive. 8. The segment of commercial cars is captured by TATA 9. Most of the people are satisfied with the objective they purchased their cars like status or power. 10.Now the world is changing because of the standard of the people. MARUTI is the clear cut winner of Automobile Sector (Cars Segment) Recommendations 1. Every company should think about the lower segment also like TATA launches Nano. 2. They should launch advanced car like in western countries. 17 Research Methodology
  • 18. Mapping of different cars, of different companies 3. Honda is not dealing in small car category so Honda should try that sector also, this will hell Honda to capture more market 4. Honda and Toyota should open more service centers 5. Every company should take care of the environment because of the increasing traffic. Like Honda launches, a car with H2o technology. 18 Research Methodology

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