SWOT REPORT MARUTI SUZUKI INDIA LIMITED Submitted to: Prof Sriparna Basu Faculty, Fore School of Management Submitted by: Niharika Sharma Roll no: 241085 Nov 30, 2015 INDUSTRY ANALYSIS The automobile industry of India is one of the largest industry in the world. The industry has grown at 8.68 per cent over last year with a production of 23.37 million vehicles in 2014-15. The Indian automobile industry is expected to be the world 's third largest by 2016. Further, passenger vehicle production is expected to increase from 3.2 million in 2015 to 10 million in 2020. Currently, 13 per cent market share is governed by Passenger Vehicle (PV) segment.
With India emerging as a global automotive hub, domestic tyre companies are expanding their operations and global tyre majors are increasing their presence in the Indian tyre market. The new technological frontiers of the tyre industry in India are radialisation in the truck and bus segments and a shift to high-performance tubeless passenger car radials. Market Segmentation Replacement is the biggest market segment and accounts for about 54% of the overall revenues. The OEM and export segments account for 32% and 14% respectively. Some of the major players in the market are Apollo, JK Tyre, MRF, CEAT, Goodyear among others.
Presently, there are three major car manufacturers/assemblers in the car industry in Pakistan namely: Pak Suzuki Motor Company Limited, Indus Motor Company Limited and Honda Atlas Cars Limited. Pakistan automobile industry is inward looking and it tries to protect itself through the use of regulatory instruments. Pakistan needs to develop the automobile industry instead of protecting it and in this regard, imports have a disciplinary impact on domestic firms.  The auto industry in Pakistan is producing all kinds of vehicles that include; motor cars, buses, trucks, Light Commercial Vehicles, tractors, prime-movers and 2/3
2. Low presence in the strongest U.S. vehicle market and no presence in Japan’s vehicle market The U.S. market is the leading vehicle market in the world with 21.5 million units sold in 2015 alone. The market has plenty of opportunities for such high profit vehicles as pickup trucks, electric and fuel cell vehicles. Yet, HYUNDAI wasn’t even among the top 5 car manufacturers and sold less than 10% of the market units. HYUNDAI also has no presence in the Japanese vehicle market, after the company pulled out of it in 2009.
Table of Contents Industry Analysis 2 Automobile Industry 2 Maruti Suzuki 5 Hero MotoCorp 9 TVS Motors 12 International Trends 14 References 15 Industry Analysis Automobile Industry The automobile industry is one of India’s most vibrant and growing industries. This industry accounts for 22 per cent of the country 's manufacturing gross domestic product (GDP). The auto sector is one of the biggest job creators, both directly and indirectly. It is estimated that every job created in an auto company leads to three to five indirect ancillary jobs.The next few years are projected to show solid but cautious growth due to improved affordability, rising incomes and untapped markets. The relationship marketing in automobile industry plays a
Strategy Tripod Part One: Industry Conditions (Opportunities and Threats) The largest markets for the luxury automotive industry are China, the U.S., Europe, and India. As an industry, the global market for luxury automobiles have been largely unaffected by the financial crisis and other economic trends. The decline in sales from developed countries during the financial crisis was offset by the increase in sales in the emerging markets. Today, China and the United States are considered to be the most important markets for the premium automakers. According to PRNewswire, “China became the largest auto market in the world in 2009, leaving the US behind.
India represents one of the world’s largest automobile industries. The automobile industry can be classified into two-wheelers, three-wheelers, passenger vehicles and commercial vehicles. Passenger Vehicle Industry is an important sector of the automobile Industry. Increasing buying power of the Indian middle class along with easy availability of financing made passenger vehicles an attractive proposition. Besides, the growing organized used car market has also been a positive growth factor in the used car market of the country.
Industry Awareness Automobile Industry (Passenger Cars and Utility Vehicles) 8/24/2014 IIM Indore PGP1, Section E, Group 7 Overview of the Industry In India Automobile Industry is one of the key sectors of the economy. It acts as one of the key drivers of the economic growth due to its deep forward and backward linkages with several key segments of the economy. The Indian automobile industry after de-licensing in July, 1991 has grown at a spectacular rate of 17% on an average for last few years. The export in automobile sector has grown on an average CAGR of 30% per year for the last five years. Even with this rapid growth, the Indian Automotive Industry’s contribution in global terms is very low.
The industry has small number of dominant players like Air India, Spice Jet, Indigo, GoAir. Have barriers to entry and exit, evident from the example of Kingfisher airlines, which find it difficult to exit the market. Also, most of them compete on different schemes, rather than pricing, which is evident from the fact of recent schemes of by SpiceJet, IndiGo, Air
Competition The leader in automobile sales for quite a long time has been Toyota. It achieved the golden milestone of the largest selling car in history in 1974 and has remained on the top of the mountain since then (holding 12% global market share in 2013). In contrast Honda holds a comparatively paltry 4% market share and their earnings are less than half of Toyota. That being said, both are major manufacturers in the world automobile market. The other giants in the game, the Volkswagen Group (11%), PSA (3%), Nissan (8%) and Hyundai (9%) as well as General Motors (11%) and Ford (8%) in the U.S. all contribute significant market shares to the world total, the reasons these players always come out on top are several.