Mahinta Motors Essay
BUSINESS DIVERSIFICATION MARUTI SUZUKI
MARUTI SUZUKI is the most famous cars manufacturer in india .It was founded in february 1981.It started with Maruti 800 and 74% of its shares was owned by the Indian government.It has two manufacturing units in india and they produced 14,50,000 vehicles annually.it has 17 current models which is doing very well in Indian market and 8 discontinued models . It has 933 dealerships across 666 towns and cities in india . it has 3060 service stations in 1454 towns and cities throughout india.it has its own subsidiary which is known as Maruti Exports Lmited whose main focus on exports and it does not entertain in the domestic Indian market.it is ranked thirty seventh position in 2013 and eleventh
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It is a conglomerate business which is a part of Mahindra Group and was ranked as the 10th most trusted brand in india.it entered with logan in april 2007 under the Mahindra Renault joint venture. It has 10 current models which is successfully running in india.there are various companies of automotive under Mahindra group.these are some companies:-
Mahindra graphic research design – it was formed in 2008. It specializes in consulting onautomotive style,engineering,computer aided engineering and project management.
Mahindra Navistar Automotive – it was formed in 2005.it helps to set the range of rightly developed commercial vehicles for Indian terrain.they are creating and making light commercial vehicles and heavy commercial vehicles that continue to set the standards.
Mahindra Navistar Engines – it was formed in 2007.it produced diesel engines for medium and heavy commercial vehicles in india. It is committed for developing a robust engine business that will improve truck performance for many Indian
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This future demand prospects have also encouraged the investments of car manufacturing companies to set up their units in India.
TRENDS IN THE AUTOMOBILE INDUSTRY
1 % growth projections for the passenger vehicles for the year 2014-2015
India is estimated to see around 9.1% growth in car sales between 2010 to 2018
The total turnover in 2010-2011 was 58.5 US$,turnover by 2016 is slated to be 145 US$
100% FDI is allowed to the automotive sector
Automatic approval for foreign equity investment up to 100% with no minimum investment criteria
Focus on low cost manufacturing and product development solutions
Passengers vehicles are to increase at a CAGR of 16% between2013-2020
Export is expected to increase from 440,000 units in 2013 to 530,000 units in 2020
Mahindra & Mahindra (M&M) planning to develop the world 's first hybrid technology that can be deployed in vehicles with manual transmission and enhance fuel efficiency by almost 20 per
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