Maruti Suzuki Essay

Introduction:

Industry Analysis

India’s passenger car industry has been growing at a robust pace fuelled by a rapid increase in disposable household incomes. In June 2014, the domestic passenger vehicle (PV) industry observed a sales volume of, 218,828 units. It observed a growth rate of 11.2% YoY. The last time the industry had experienced double-digit volume growth was in the month of October 2012.

The car/passenger vehicle industry can broadly be classified into following categories:

1. Executive Car Segment:

2. Mid-Size Car Segment

3. Super Compact Car Segment

4.Compact Car Segment

5. Mini Car Segment

Major Players

The four major players of Indian car industry are as follows:

 Maruti Suzuki

 Hyundai

 M&M

 TATA Motors.

Maruti Suzuki is the largest player of

Right from the point where a customer thinks of owning a car he might think of learning how to drive cars (which Maruti tries to accommodate through its driving school), to the point of sale and also the after sale services, Maruti takes the entire onus of providing the support to its customers. This is what Maruti Suzuki calls it as the N2N Maintenance.

SWOT Analysis Strengths

1. Maruti Suzuki is the largest passenger car company in India with 42.1% market share in FY2013-14. It is currently the leader in overall passenger car sales by a huge margin and currently offers 14 brands and over 150 variants.

Being the largest player in the market, it enjoys many advantages including:

• Economies of scale and resultant cost advantages.

• Better reach to customers and the suppliers.

• Increased bargaining power with respect to the customers and suppliers.

• Lower marketing expenditure on per unit of sales basis.

2. The company employees over 12000 people. The wide range of expertise provided by these employees can be used to achieve the company’s objectives