The document provides information about the automobile industry in India and Maruti Suzuki. It discusses that Maruti Suzuki was founded in 1981 as a joint venture between the Government of India and Suzuki. It has grown to become the largest car manufacturer in India, holding a 47.6% market share as of 2016. However, Maruti Suzuki is facing increased competition from other automakers. The Indian auto industry is also facing a slowdown and declining sales volumes in recent months, impacting Maruti Suzuki's sales as well. The document puts forth suggestions for Maruti Suzuki to transition to EVs and focus on new segments, and for the government to reduce road tax and bring financial reforms to help revive the industry

1. Strategic
Management
Project on
Maruti Suzuki
Group-4
Paridhi Trivedi:19DM131
Rajat Chauhan: 19DM153
Shamli Sharma: 19DM190
Sahajdeep Singh: 19DM171
Shubham: 19DM209
Sparsh Kapoor: 19DM222
Divya Singhal: 19DM248
Tuhina Priya: 19DM229

2. Automobile Industry In India
• The first car that plied on Indian roads was in early 1897 & was
owned by an English man Mr Foster of Crompton Greaves
• In 2009, India emerged as the 4th largest exporter of
passenger cars after Japan, South Korea & Thailand.
• In 2011, India became the 6th largest car manufacturer in
the world & Asia’s 2nd largest two-wheeler manufacturer.
• India’s automobile industry accounts for 49% of the
country’s manufacturing GDP
• It directly and indirectly employs 37 million workers.
• The auto sector contributes roughly 15% to GST collection.

3. Maruti Suzuki- Origin, Business affiliations
and evolution
• Maruti Suzuki India Limited, formerly known as Maruti Udyog
Limited
• Maruti Udyog Limited was founded by the Government of India
in 1981, only to merge with the Japanese automobile company
Suzuki in October 1982.
• In 1996, with little competition and a much smaller stable,
Maruti reigned supreme with 60% market share. In 2016, in
much more competitive environs, Maruti still stands tall with a
47.6% share.
• Making a small beginning with the iconic Maruti 800 car, Maruti
Suzuki today has a vast portfolio of 16 car models with over 150
variants. Maruti Suzuki’s product range extends from entry
level small cars like Alto 800, Alto K10 to the luxury sedan Ciaz.
3

4. Maruti Suzuki Product
Portfolio
• Arena
• Nexa
• True Value
• Commercial
4

5. Major Products
2
Maruti Suzuki S-Presso
₹ 4.09 - 5.43 Lakh
Maruti Suzuki Vitara Brezza
₹ 8.29 - 13.3 Lakh
Maruti Suzuki Wagon R
₹ 4.87 - 6.52 Lakh
New Maruti Suzuki Swift
₹ 5.72 - 10.11 Lakh
Maruti Suzuki Dzire
₹ 6.47 - 10.88 Lakh
Maruti Suzuki Baleno
₹ 6.18 - 10.1 Lakh
Maruti Suzuki Ciaz
₹ 9.52 - 13.19 Lakh
Maruti Suzuki Celerio X
₹ 5.35 - 6.18 Lakh

6. • The automotive
industry has a
huge impact on
every country’s
economy.
• Major user of
computer chips,
textiles,
aluminum,
copper, steel,
iron, lead,
plastics, vinyl,
and rubber.
• These industries
include anything
from the
aluminums to lead
to vinyl.
• The ecological
and
environmental
aspects, such
as R&D
activity,
automation,
technology
incentives and
the rate of
technological
change.
• Technological
shifts can affect
costs, quality,
and lead to
innovation.
• Automotive
regulations
governed by- the
Ministry of
Shipping, Road
Transport &
Highways
• Principal
instrument
governing -Motor
Vehicles Act, 1988
along with the
Central Motor
Vehicles Rules
1989.
• Act governs-
emission norms
,safety standards in
India
• Indian govt.
formulated Auto
Policy
• Govt. has granted
concessions-
reduced interest
rate for export
financing
• Formulation of
auto fuel policy
• Ensures a
balanced
transition.
• Emphasis on
R&D activities
and tax
deduction.
• The cultural
aspects and
awareness,
population
growth rate,
age
distribution,
career
attitudes.
• Emphasis on
safety.
• Trends in social
factors affect the
demand for a
company’s
products.
• Physical
infrastructure
such as roads and
bridges affect the
use of automobiles.
• Physical
conditions like
environmental
situation affect the
use of automobiles.
• Increasing
number of
vehicles-pollution.
• Best option is
Biofuel
POLITICAL ECONOMIC SOCIAL TECHNOLOG
Y
LEGAL ENVIRONMENT

9. 9
Different players that entered the
industry
S.No. Company
Name
Entry Model Year Price
01. Tata Motors Indica 1998 ₹2.6 Lakh
02. Honda Honda City 1998 ₹5.75 Lakh
03. Hyundai Santro 1998 ₹2.34 Lakh
04. Toyota Qualis 2000 ₹5.86 Lakh
• Indica was India’s first indigenously developed car.
• Honda city became a success and one of the top selling cars in its segment
as soon as it was launched.
• With the inception of Santro HMIL became second largest automobile
manufacturer.
• Qualis discontinued in 2005, because of change in customer’s need.

10. 10
Potential Threats to Maruti Suzuki
• Maruti discontinuing Diesel Cars.
• Many carmakers have already announced the BS-VI diesel engines
like Hyundai Verna and the Honda City.
• Little Presence in SUV segment and entry of Kia and MG further
increasing the competition.
• Chinese companies Great Wall Motors, Changan Automobile
Company planning to enter into Indian Car Industry.
• Investment in Electric vehicle segment by Tata, Mahindra, Renault
etc as showcased in Expo 2020.

11. Growth &
Performance of
Automobile
Sector
Data Source: Society of Indian
Automobile Manufacturers

12. 12

13. 13
0
5
10
15
20
25
30
35
2017 2018 2019
25.33
29.07
30.92
21.86
24.97
26.27
NumberofVechiles(inMillion)
Year
Number of Automobiles
Produced(in Million)
Number of Automobiles Sold
Market
Size

14. 14
Export
Trends

15. 15
Gross
Turnover

16. Maruti has been Indian
market leader since a
long time
Good advertising and
high brand visibility.
Largest distribution
network of dealers and
after sales service
centres.
Available in petrol and
diesel variants.
One of the most
popular global brand
names
• Inability to penetrate
into the international
market
• Light body
• Difficult to maintain
market share in an
intense competitive
sedan market
Fast growing automobile
market &
Increased purchasing
power parity
Developing hybrid cars
and fuel efficient cars for
the future can be an
opportunity for Maruti
Suzuki
• Intense competition
• Government
regulations and Ever
increasing fuel prices
• Improvement in
public transport
SWOT ANALYSIS
Strength Weakness Opportunity Threat

17. 17
Main Competitors & Their Market Shares
Source: Autocar Professional
Maruti Hyundai Mahindra Tata Honda Toyota
53.3% 16% 7.5% 5.3% 2.0% 2.2%
Market Share (January 2020)
Source: Indian Auto Report FY20

18. Effect of Recent Economic
Slowdown on Auto sector
• Over the past 11 months auto industry is showing decline in
growth.
• The combined sales of all automobiles fell to 1.9 million units in
June last year against 2.2 million units a year ago.
• In particular, passenger vehicle sales have dropped for nine
straight months through July, with some automakers suffering
year on-year declines of more than 30% in recent months.
• According to the Society of Indian Automobile Manufacturers
(SIAM), 3,50,000 jobs (mostly contractual) have been lost and
over a million are at a risk due to plant shutdowns and
bankruptcy of dealers and component makers
18

19. 19
• In a regulatory filing on March 1, Maruti Suzuki
said that its sales for the month of February 2020
declined by 3.6%, as compared to the same
period last year.
• The company noted that it had sold a total of
139,100 vehicles in the country in February 2019,
but a year later, that number fell to 134,150.
• Further, the upward revision in road and
registration charges by state governments are
making vehicle ownership unaffordable as
rightly highlighted by the Maruti chairman
Effect of Slowdown on
Maruti Suzuki

20. SUGGESTION
For Maruti Suzuki
• Transition to EV.
• Focus on new segments which are more
profitable.
• Follow better inventory planning practices.
For Government
• Government need to reduce road tax on
New cars.
• Bring in New reforms In financial sector.
20

21. 21
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