Maruti Udyog Ltd

1. Presented By:
Paul Rishiraj (46)
Vachhani Khushali (58)
Mirukhe Amit(22)
Sharma Mitesh (51)
Parmar Dhruti(30)
Subject : Business Environment

2. INTRODUCTION
Maruti Udyog Ltd. (MUL)
• Established :- Feb 1981
(Act of Parliament- by Sanjay Gandhi in 1971 to develop a cheap
'people's car’)
• Ownership-( 18.28%) & (54.2%)
• JAN 2018 :- Market Share-49.6 %(Volume of Sales)
• Manufacturing Unit -Palam, Gurgaon, Haryana.

4. 1971- This Is First Prototype Of Maruti Car.

5. • Established Distribution & After Sales Network
• Understanding Of Indian Market
• Brand Image
• Experience & Know How In Technology
• Lack of experience with foreign market
Comparatively new to diesel cars.
• People resistant to upper segment models.
• Heavy import tariffs on fully built cars.
• Purchasing Power Of Indian Middle Class
• Government Subsidies
• Tax Benefits.
• Prospective Buyers From 2 Wheeler Segment
• 2nd Hand cars & Nano Cars
• Price War between co.s
• Presence of Global Manufacturers

6. #1.Introduction
• Market share & growth is slight.
Substantial research and
development costs have been
incurred.
• Marketing costs may be high in
order to test the market, undergo
launch promotion and set up
distribution channels.
• Highly unlikely that companies will
make profits on products

7. #2. GROWTH
• Characterized by rapid growth in
sales and profits. Profits arise due to
an increase in output
• Significant promotional resources
are traditionally invested in
products that are firmly in the
Growth Stage.
• Cheaper for businesses to invest in
increasing their market share.

8. #3. MATURITY
• Competition is most intense as
companies fight to maintain their
market share. Any significant moves
are likely to be copied by
competitors.
• The Maturity Stage is the time when
most profit is earned by the market
as a whole.
• Any expenditure on research and
development is likely to improve
production efficiency and quality.

9. #4. DECLINE
• Market is shrinking, reducing the overall
amount of profit. Possible to take out
some production cost, to transfer
production to a cheaper facility, sell the
product into other, cheaper markets.
• Depending on whether the product
remains profitable, a company may
decide to end the product.
• Care should be taken to control the
amount of stocks of the product.

10. PESTEL ANALYSIS
•Ind govt auto policy aimed at
promoting phased &balanced
growth of automobile industry.
•Est. international hub for
manufacturing small & affordable
cars.
•Increase in PPP Index led to
increase in market share of compact
cars.
•Welfare Camps, Medical support &
welfare Education to
underprivileged.
•Sales of Passenger car has been increased
to 8.45% per year.
•More than 70 per cent of the VEHICLES
purchase is on credit.
•Manufacturing sector grown @8-10% p.a.
•Innovative R&D in both Products &
Production Process.
•Launched CNG kit for Alto, its
highest selling small car
•Developing Hybrid Cars & fuel
efficient cars.
•Follows highest standards of
Corporate Governance.
•Customer can contact the
Secretarial & Legal Department for
any questions/clarifications.
•Follows rules & regulations strictly
developed by Govt.
•3R- reduce, reuse, and recycle
&Continuous process of promoting
100% recyclable and reusable car
parts.
•Basic infrastructure affecting
automobiles

11. Key Success Factor
• The Quality Advantage
• A Buying Experience Like No Other
• Quality Service Across 1036 Cities
• One Stop Shop
• The Low Cost Maintenance Advantage
• Lowest Cost of Ownership
• Technological Advantage

12. FUTURE CHALLENGES
• Peoples Car Image
• Growing Competition In Compact Cars
• Emission Norm
• Rise In Petrol Prices & Substitute Fuels

13. • Today, Maruti brand is synonymous with
‘Value Packed’ products which offers quality
,reliability & Originality.
• Things are now changing with LPG polices
and disinvestment; the real competitions has
already began after 1991.
• The smarter will certainly will be next leader,
but till then...Maruti Suzuki will going to be
the biggest brand .
• Thus, Maruti Udyog Limited, is counting its
profits, and fulfilling the Social
responsibilities, by making its tag line to be
implemented i.e.
“Count On Us”