strategy management presentation on the Maruti Suzuki company.

1. Maruti Suzuki
By Group 11

2. Maruti Suzuki
Follows……..

3. Reasons
Manufacturing capabilities
Distribution network
Cost reduction-Total operating performance
Low operating ratio with high profit margin, high domestic market
growth rate
High sales volume

4. Manufacturing Capacity
• Maruti has 3 manufacturing plant
across India
• They are the first largest car
manufacturer in India
• All manufacturing facilities have a
combined production capacity of
1,700,000 vehicles annually

5. Manufacturing Capacity
Name of
the
company
Production
capacity
Cars
produced
Utilization
capacity
Hyundai 6,80,000 6,40,000 94.11%
Maruti
Suzuki
17,00,000 16,20,000 95.29%
Honda 2,40,000 2,00,362 83.48%

6. Distribution Network
• It has 3,403 outlets in 1659 cities
• Maruti Suzuki and the Indian Railways have
developed a stacking area of 8,000 sq mtrs on two
NMG rakes.
• The loading of cars takes 3 hours and 40 minutes.
• This way of transporting cars besides being cost
effective is also better as damage to cars during
transit is much lower as against transporting them by
trucks that ply across the highway..

7. Particulars Maruti Suzuki Hyundai Tata Motors
Operating
Ratio(expenses/net
sales)
0.825 0.961 1.01
Inventory turnover ratio
(days)
15 50 90-100
Profit margin ratio 10.8% 3.93% 0.7%
Lower the
operating ratio
higher the profit
margin

8. High Sales Volume
Company 2017 2018 %
increase/de
crease
Hyundai 44,758 46,735 4.4%
Maruti
Suzuki
1,44,081 1,63,434 13.4%
Honda Cars 9,595 14,922 (35%)

9. Current Position……..

10. Suggestions
 Launching 20 or so car models sound like a grand plan, but the point to note is
that most of them are likely to be in the low-cost segment.
 Maruti Suzuki is already a leader in the lower-end of the small car, also known
as the compact car or hatchback, segment.
 Though they are the market leaders, in order to maintain in their position in
the long run they must focus on the premium segment or high end segment
and becomes as successful as they are in the other segment
 Can focus on spare parts and car maintenance

11. Thank You