CONTENT

Executive summary List of tables List of graphs Introduction Objective Methodology Analysis Conclusion Bibliography

INDIAN AUTOMOILE INDUSTRY

The Indian automobile industry is to a very extent dominated by the four wheeler sector- comprising 12 manufactures (at present). The passenger car sector is mostly MUL PAL HML and TELOC among which MUL is in the lead with a market share of nearly 80% percent. The growth in the car sector

has been to the extent of 20 percent during the last year which was in continuum from its previous year thus leaving the Indian roads with almost 35-40 percent more fourwheeler vehicles within a span of 2 year. The AIAM expects the car production to rose to 750,000 units by 2005.

GROWTH PROSPECTS OF THE AUTOMOBILE INDUSTRY

The Indian economy is now at a take- off stage and is taking rapid strides towards high quality goods needed to meet intense global competition. The growth of the Indian

automobile industry in the next 5-10 years is expected to be

exponential. Major growth has been forecast in all sectors of this industry. The car market is expected to dominate the Indian automobile industry in the years to come while India moves towards attaining the status of a developed country. The demand for car at the point of its entrance into the market will dominate the future outlook. Consumers are expected to move up from scooters and motorcycles to passenger cars. Passenger car sales on the whole are expected to increase by 611,000 by 2005.

EMERGING TRENDS IN THE AUTOMOBILE INDUSTRY

Things have been consistently changing over the past few years in this industry. Several world brands, which one saw only in glossy magazines or on the TV in the past, are making a bee-line to enter the country. Many of the current

collaborators

have

majority

share

holding

in

the

collaborations. Collaborators are willing to hold the hands of the Indian manufacturers in the export markets. In fact, the focus of the new generation of collaborations is to build technological capabilities in the Indian automobile industry. In 1993, the worlds largest car market, General Motors, signed up with Hindustan Motors for assembling one of its German products the Opel Astra, French giant Peugeot the joined hands with Premier Automobiles to make Peugeot 309 and Britains car major Rover has tied up with Banglaorebased small timer Sipani Automobiles, to assessable the Rover Montego. Mahindra and Mahindra have embarked upon the process of assembling Chryslers Jeep Cherokee, using its new Peugeot engine and gear box, TELCO has finally signed up the Dailmer-Benz for manufacture of the Mercedes-Benz. DCM has tied up with the emerging South Korean car maker, Deawoo.

Top automobile magazine

Alto is at its best while driving in the city where the angle handling can be enjoyed and small engine does not feel inadequate. Actually Alto is so light-weight that the 1,1 litre engine feels surprisingly powerful. Gear ratios are optimal and the engine runs perky on lower rpms too, so drive Alto in a city is actually a pleasure. Tuuliasi (The second biggest Finnish car magazine) Altos CO2 emissions are as low as 119 grams per kilometer, among the lowest yet achieved in a gas-powered car. Since the Alto was launched in 1979, more than 7.3 million have been sold worldwide, making it one of the most popular minicars ever. Newsweek Alto is a great choice for a city car. It is easy to drive, has a great value for money and very low consumption Autocar, Greece.

The Alto performs well and handles well and the driving features provide both confidence and comfort. Autovisie, Netherlands Its high power engine makes Alto the fastest city car. At the same time it is one who needs less fuel to run. The combination of driving ease and comfort is great . Buy new Alto with AC- its cool Car. The driving feel : The Alto surprised us even more on the road. The 63-PS engine is a lively fellow. Its responsive and allows brisk acceleration: easily up to 155 kph, if need be. And the small 4-cylinder engine achieves this with a standard consumption of 4.9 litre Super fuel. When one avoids high engine speeds, one can even enjoy a quite engine. S Sure footed: Always looking for something to quibble about, we took the Alto to the test through some corners. It was rather unipressed. Without dangerous swerves the Alto held safety it course and offered proper suspension comfort.Autovisie, Netherlands.

The 63 PS motor is a real tough guy, good mileage, smooth pick-up and smooth acceleration. All this with a small 4 cylinder which consumes only 4.9 litres for 100 kms. Alto is big hit in Finland. The increase in demand for the Alto, which has exceeded the supply, has forced the company to bring in new lots from big markets. Iltalehti (One of the largest Finnish newspaper) The New Suzuki Alto is capable of remaining the consumers dream (the consumers organization has declared it the most economical car on several occasions), as it offers both low consumption and high serviceability. The Alto does everything that a car should do. It performs well and handles well, and the driving features provide both confidence and comfort Autovisie, Netherlands. Eariler, it was the Zen (Known as the Alto in Europe) The True Indian Globertrotter which own many laurels in Europe competing category: with internationally renowed models in its

Rated most fuel-efficient car in its category in a test conducted by ADAC 1997. Rated No. 1 car in Belgium 1997. Largest selling car in Netherlands 1997 The Maruti 800 has successfully positioned itself as an economical, small car in Chile, Uruguay, Algeria, Egypt, Sri Lanka, Yugoslavia and Malta, amongst others. The versatility of the Omni makes it an attractive buy in countries like Kenya, Mozambique, Cyprus and Nepal. The reliable and rugged Gypsy is a front runner in the 4WD segment of many African and Asian markets.

Maruti Udyog Ltd. Maruti Udyog Ltd (MUL), is the largest car manufacturer in the country with a market share of over 80 per cent in the car industry. It is a joint sector corporation setup by the Government of India and Suzuki Motor Corporation, Japan. Although the company is a clear leader, it faces threats from new entrants into car industry. The company was incorporated in 1981 to take over the assets of the erstwhile Maruti Ltd. Maruti Ltd set up in June 1971 had been wound up by a High Court order in 1978. The assets of Maruti Ltd were then acquired by the Government under the Maruti Ltd (Acquisition And Transfer of

Undertakings Act, 1980). In the year 1982, the government signed a joint venture agreement with Suzuki Motor Corporation of Japan. Suzuki's stake had risen from 26% to 40% in 1987. Suzuki's stake went up once again to 50.25% in 1992. Between August 1997 and June 1998, there were severe tensions between the two

partners over the issue of appointment, of the managing director of the company. This was resolved in June 1998. The first product, Maruti 800 was launched in 1984. In 1985, the all-terrain vehicle Gypsy was launched and Maruti sold its 50,000th vehicle. The Maruti 1000 was launched in 1990 and the Zen in 1993. The company manufactures passenger cars at its factory in Gurgaon, Haryana. Its installed capacity of 350,000 vehicles is expected to rise to 450,000 in the year 1999. The company's models include the 800cc small car, Esteem, Zen and Gypsy. In the car segment, it had a market share of 83% in FY98, with sales of 345,303 cars. For the period April '98 to January '99, MUL car sales have dropped by 6.4% to 263,681 compared to 281,697 cars for the corresponding period for FY98. The company is a significant exporter with exports to over 50 countries. During FY98, exports also witnessed a drop of 26.87% to 24,757 cars. For the period April '98 to January

'99, MUL car exports dropped by 10% to 17,155 compared to 19,054 cars for the corresponding period in FY98. In August '98, the company launched the diesel version of the Zen which is powered by a 1527 cc engine supplied by Peugeot Citreon Motors, France. The company also intends to launch a diesel version of the Gypsy and a new model in the 800 cc segment. The company is known for its strategy of value-for-money pricing which has been made possible due to the high levels of indigenisation of its vehicles. While the Maruti 800, Zen, Esteem and Omni are indigenised to the extent of over 90 per cent, the Gypsy is indigenised to the extent of 82 per cent and the export version of the Zen called Alto to the extent of 76 per cent. Maruti has a vendor network of about 375. The company has several joint ventures with some of these vendors to source its raw material requirements. On the sales and marketing side, Maruti has a network of 112 dealers and sales outlets in 86 locations across the country. It also has a

1,010 strong service work shop network covering 412 locations in the country. In August 1997, a major dispute broke out between the Government of India (GOI) and Suzuki Motors Corpn (SMC), Japan. SMC also described the appointment as illegal, as its five directors who comprise a majority of the company's board strength of 9, had opposed the appointment. The GOI's argument was that as per the amended agreement between the two partners in 1992, each partner could nominate a managing director for five years and there was no need for any discussion on it. The issue resulted in a major dispute with SMC dragging the GOI to the International Court of Arbitration. At that time, the GOI was led by the United Front government. The industry minister at that time, Mr. Murasoli Maran even started scouting for a new partner to replace SMC. The issue was finally resolved in June 1998 when BJP led government took over at the centre. A compromise was worked out between the two partners wherein it was decided that Bhaskarudu

would retire on 31st December 1999 instead of the earlier scheduled time of 2002. Jagdish Khattar, executive director was made the Joint Managing Director and was scheduled to take over as managing director from Bhaskarudu in January 2000. MUL plans to launch Baleno in the luxury car segment and Wagon R in mid-size car segment. Baleno will be powered by a 1.8 litre, 16 valve powerplant. Initially they will be produced at the new plant from CKD/ SKD kits imported from Japan. In December '98, MUL slashed the prices of its 800cc and Zen cars by about Rs24,000 and Rs51,000 respectively. This has helped MUL to restrict the slide in its market share, due to entry of new car manufacturers. For FY99, MUL's total income dropped by 4.2% to Rs81.2bn. The decrease in prices of 800cc and Zen, was reflected in a drop of 20% in net profit to Rs5.2bn compared to Rs6.5bn in FY98.

As a process of its disinvestment in PSU, the GOI is seriously considering disinvesting its holding in MUL, in the domestic market. But there have been no announcements regarding this from the company.

Maruti to improve export performance

MARUTI Udyog Ltd is confident of registering a growth in vehicle exports this financial year despite the adverse international market conditions, a top company official said. But the company is unlikely to meet the internal export target of 18,000 vehicles, the official said. Maruti had exported about 15,300 vehicles in 2000-01, which was down 28.67 per cent from 21,450 vehicles exported in 1999-2000. In April-September, the first six months of the current financial year, Maruti Udyog has already exported 5,022 cars, which is down 28.34 per cent compared with 7,008 cars exported in 2000-01. Car exports in the first half of 19992000 were 8,248 cars.

In addition to this, the company has exported 220 `Gypsy' utility vehicles this year, which is significantly higher than the 90 vehicles exported in the same six months of last year. In 1999-2000, the company had exported 199 vehicles in this period. At this point in time, I see no reasons why we will not better last year's export performance despite the adversities in the international market,'' the official said. Maruti, a 50:50 joint venture between the Indian Government and Japan's Suzuki Motor Corp, is the second largest car exporter from the country with a 22.1 per cent share of all car exports from India. Ford India Ltd, a subsidiary of US Ford Motor Co, is the largest exporter, sending its `Ikon' car to markets such as South Africa and Mexico. It has a market share of 65.38 per cent of all car exports. But despite an international slowdown and economic

uncertainty that has risen after the September 11 terrorist

attacks in the US and the subsequent war on Afghanistan, this year car exports from India has risen sharply due to vigorous exports by Ford India. The going, however, has not been all that good for other manufacturers. ``There are very clear signs of a slow down in various emerging economies. However, (car) orders as far as Europe is concerned, we are on target,'' said the official. That is good news for Maruti as Europe accounts for every second car the company exports. ``Some of our neighbouring countries such as Bangladesh and Nepal are going through political and economic uncertainty. African markets such as Egypt and Algeria are also not in the best of shapes,'' the official said. South American markets are also going through an economic slowdown. Maruti Udyog exports vehicles under the Maruti, Maruti Suzuki and Suzuki badge in the international market.

International

Maruti has a strong international presence with sales in over 70 countries worldwide spanning from Europe, South and Central America, Africa, Oceania and Asia. In the map above, the areas shaded in blue indicate our presence. Our total exports till July 2002 were over 253000 vehicles. Over 71% of these vehicles have been exported to Europe. The internationally popular Alto has carved a niche for itself in extremely competitive and technologically advanced European countries like Netherlands, UK, Finland, Sweden, Greece, Italy, Belgium, and in South America. Building on our performance record and the ties of trust we have forged over the years, we remain committed to our

corporate vision of being an internationally competitive company in terms of products and services, and providing value and satisfaction worldwide. For successfully carving out this niche in international marketing, the Government of India has awarded us the Golden Star Trading House status.

Export models
The Alto has replaced the Zen/Alto in Europe from February 02. Since then, it has been creating waves in the competitive compact car markets of Europe. The Alto was shown for the first time at the Geneva Motor Show in February 02. Our distributors then formally launched the Alto in their respective countries. The first country to launch the Alto was the Netherlands, which is our biggest and most important export market, and to which we we exported over 46,000 vehicles till March 02. The launch function was held on 30th March 02 and the highlight of this function was a fuel economy rally in which

only

journalists

from

prominent

newspapers

and

auto

magazines participated. Our distributors, BV Nimag, report that the Alto is a hit with the press and received very good reviews. What followed was way beyond their expectations. People waited for hours to have a test drive. Around 500 cars were sold on the first day itself and 2300 cars were booked in the first fifteen days. This tremendous response led to the distributor doubling his planned purchases of the model for the year April 2002-March 2003 to 7000 cars. We will export the New Alto to the following European countries: Austria, Belgium, Finland, France, Germany,

Greece, Ireland, Italy, Netherlands, Switzerland and UK. Orders for 700 units from Sweden have already come in some extracts from reviews in top automobile magazines and sites: Alto is at its best while driving in the city where the agile handling can be enjoyed and small engine doesnt feel inadequate. Actually Alto is so light-weight that the 1,1 liter engine feels surprisingly powerful. Gear ratios are optimal and

the engine runs perky on lower rpms too, so driving Alto in a city is actually a pleasure. -Tuulilasi (the second biggest Finnish car magazine) [For more (in Finnish), click Tuulilasi] Alto's CO2 emissions are as low as 119 grams per kilometer, among the lowest yet achieved in a gas-powered car. Since the Alto was launched in 1979, more than 7.3 million have been sold worldwide, making it one of the most popular minicars ever. Newsweek Alto is a great choice for a city car. It is easy to drive, has a great value for money and very low consumption. -Autocar, Greece The Alto performs well and handles well and the driving features provide both confidence and comfort. -Autovisie, Netherlands Its high power engine makes Alto the fastest city car. At the same time it is one who needs less fuel to run. The combination of driving ease and comfort is great....buy new Alto with AC - it's cool. Car

The driving feel: The Alto surprised us even more on the road. The 63-PS engine is a lively fellow. It's responsive and allows brisk acceleration: easily up to 155 kph, if need be. And the small 4-cylinder engine achieves this with a standard

consumption of 4.9 litre Super fuel. When one avoids high engine speeds, one can even enjoy a quiet engine. Sure-footed: Always looking for something to quibble about, we took the Alto to the test through some corners. It was rather unimpressed. Without dangerous swerves the Alto held safely its course - and offered proper suspension comfort. -Autovisie, Netherlands The 63 PS motor is a real tough guy, good mileage, smooth pick-up and smooth acceleration. All this with a small 4 cylinder which consumes only 4.9 litres for 100 kms. Alto is a big hit in Finland. The increase in demand for the Alto, which has exceeded the supply, has forced the company to bring in new lots from big markets. -Iltalehti (One of the largest Finnish newspaper)

THE

NEW SUZUKI

ALTO

is

capable

of

remaining

the

consumers dream (the consumers organisation has declared it the most economical car on several occasions), as it offers both low consumption and high serviceability. The Alto does everything that a car should do. It performs well and handles well, and the driving features provide both confidence and comfort -Autovisie, Netherlands Earlier, it was the Zen (known as the Alto in Europe) "The True Indian Globetrotter" which won many laurels in Europe competing category: Rated most fuel-efficient car in its category in a test conducted by ADAC - 1997. Rated No.1 car in Belgium - 1997. Largest selling car in Netherlands - 1997. Rated No 1 car in England - CAP Motor Research, 1997. The Maruti 800 has successfully positioned itself as an economical, small car in Chile, Uruguay, Algeria, Egypt, Sri with internationally renowned models in its

Lanka, Yugoslavia and Malta, amongst others. The versatility of the Omni makes it an attractive buy in countries like Kenya, Mozambique, Cyprus and Nepal. The reliable and rugged Gypsy is a front runner in the 4WD segment of many African and Asian markets.

COMPANY PROFILE
Maruti Udyog Limited
Maruti Udyog Limited was established as a Government Company in February 1981 with the following objectives: Modernization of Indian Automobile Industry. Production of Fuel efficient vehicles to conserve the resources and Production of large number of motor vehicle which are necessary for economic growth. A License and a Joint Venture agreement was signed with Suzuki Motor Corporation of Japan in October 1982 by which Suzuki Motor Corporation (SMC) acquired 26% share of the equity. Suzuki increased its equity to 40% in 1987 and 50% in 1992, converting Maruti into a Non-Government Company. Marutis total equity is Rs. 1332.90 million.

MISSION OF THE COMPANY

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export market.

Production
The average daily production is 1300 vehicles per day, i.e., nearly one car every minute. The existing plant capacity is 250000 units per annum. The production facilities at Maruti Udyog Limited inlcude a modern Blanking Line, Press Shop, Weld Shop, Paint Shop, Parallel Assembly lines for different models, Engine Assembly line, Machine Shop, Testing & Inspection Lines.

Exports
In the last seven years Maruti exported a total of 67000 vehicles to sixty seven countries. 80% of these vehicles have

been sent to European countries. The table below gives the export performance vis--vis production.

Maruti Culture
Organizational Cultural is a philosophy which guides the actions and behaviors pattern of the employees. Maruti has a distinctive work environment where all employees are treated as equally important members of Maruti family. A well established suggestion scheme encourage all employee to implement a least two suggestion every month. Suitable regards are given for each implemented suggestion.

Joint Ventures
Maruti has established nine joint ventures. Five of these are located with in the premises of the company and the rest four are situated around the plant. These joint ventures are engaged in production of high value, high quality components such as Bumpers, Seats, Fuel tanks, Glasses, Steering column, Radiator etc. Since most of the joint ventures supply

excessively to Maruti, their supply has been regulated to maintain just in time inventory levels for these parts.

MARUTI 800

80000

71963

70000

60000

50000

40000

30000 17429 20000 6999 10000

21624

0 Asia Africa Latin America

0 Oceania Europe & Israel

OMNI

5796 6000

5000

4000

3000

1601 2000 1188

1000 54 0 Asia Africa Latin America Oceania Europe & Israel

GYPSY

6000

4739 5065 5000

4000

2961 3000

2000

1578

1769

1000

0 Asia Africa Latin America Oceania Europe & Israel

ESTEEM

1000

928

900

800

700

600

500

400

300

200 26 100 0 0 Asia Africa Latin America Oceania Europe & Israel 18

BALENO
7 7

1 0 0 0 Asia Africa Latin America Oceania Europe & Israel 0

WAGON R

180

174

160

140

120

100

80

60

40 10 20 0 0 Asia Africa Latin America Oceania Europe & Israel 5

VERSA

25

24

20

16

15

10

4 5

0 0 Asia Africa Latin America Oceania Europe & Israel

ALTO

30000
26166

25000

20000

15000

10000

5000
0 0 0

0 Asia Africa Latin America

Oceania

Europe & Israel

SWOT ANALYSIS
Strength
1. Largest production base about 1300 cars per day 2. Different model exported to different country (Maruti 800, Alto, Wagon R, Omini) 3. Well established networking and distribution system in 30 countries of the world. 4. Market share of 70% in the Indian car industry. 5. Only exporter of cars from India. 6. Good technical support and service abroad. 7. Produces the most fuel efficient vehicles. 8. Consider to be good small car on the foreign roads in Europe. 9. Highly efficient and technical staff abroad. 10.Good customer support.

11.Good infrastructure in India.

Weakness
1. 2. 3. Low emphasis on research and development Exports limited to Zen and Alto only. Technology in Maruti 800 is out dated.

Opportunities
1. Largest market in India and also good market in Europe.

Threats
1. 2. Competition from the automobile industry of the world. Not regarded as the branded name around the globe.

ANALYSIS OF THE RAW DATA TABLES

AFRICAN CONTINENT
Mauritius The market for export of Maruti Car opened in 1986-1987 in Africa when three exports were made to Mauritiuss.

Algeria There were no exports to Algeria from 1986-1996 but maruti enter the Algerian market in 1997 with exporting 42 cars and the export have been increasing ever since and in 2002-2003 the figure was 1190. Anglola The market for export in Anglola opened in 1990-91 with only two export order in 1991 to 1995 their were no export to Anglola but in 1996 there was a jump of 100 exports till 1999 the export have been constant. The total number of Maruti Cars present in Anglola is 859.

Burundi & Bennin

The market for export in Burundi have been nil because Burundi is considered to be the poorest country of the African Continent.

Egypt
The market for export opened in 1992 when Maruti received a order of 56 cars to be exported to Egypt. A total number of maruti car present in Egypt is 3891 with maximum number of maruti 800 with the figure of 3595.

Kenya
Kenya has been a good market for export since 1993 the export in this region has been satisfactory.

South Africa
South Africa is considered to be a developed region in African continent there has been no export to South Africa because people in South Africa are very rich and they love to drive big and luxury segments car.

Asia and Middle East

EXECUTIVE SUMMARY
The research is to find out volume and value of exports (region wise) of cars manufactured by maruti udyog more over the research also focus on exports over the years,also the report the strategies followed by maruti udyog Maruti has a strong international presence with sales in over 70 countries worldwide spanning from Europe, South and Central America, Africa, Oceania and Asia. Things have been consistently changing over the past few years in this industry. Several world brands, which one saw only in glossy magazines or on the TV in the past, are making a bee-line to enter the country. Many of the current collaborators have a majority share holding in the

collaborations.Collaborators are willing to hold the hands of the Indian manufacturers in the export markets. In fact, the focus of the new generation of collaborations is to build technological capabilities in the Indian automobile industry

This is a exploratory research completely based on secondary data

INTRODUCTION
The Indian economy is now at a take- off stage and is taking rapid strides towards high quality goods needed to meet intense global competition. The growth of the Indian

automobile industry in the next 5-10 years is expected to be exponential. Major growth has been forecast in all sectors of this industry this report is useful for people in automobile

sector because this report provides them with the best practices followed by maruti udyog limited and there

shortcoming so that the can have a in sight on how to carry out exports in this sector. This report will be useful for a number of people including students of international business who want to study the export potential of maruti cars and and also tell the presence of maruti in different continents.

INDIAN AUTOMOBILE INDUSTRY

The Indian automobile industry is to a very extent dominated by the four wheeler sector- comprising 12 manufactures (at present). The car sector is mostly MUL PAL HML and TELOC among which MUL is in the lead with a market share of nearly 80% percent. The growth in the car sector has been to the extent of 20 percent during the last year which was in continuum from its previous year thus leaving the Indian roads with almost 35-40 percent more four-wheeler vehicles within a span of 2 year. The AIAM expects the car production to rose to 750,000 units by 2005.

EMERGING TRENDS IN THE AUTOMOBILE INDUSTRY

Collaborators are willing to hold the hands of the Indian manufacturers in the export markets. In fact, the focus of the new generation of collaborations is to build technological capabilities in the Indian automobile industry. In 1993, the worlds largest car market, General Motors, signed up with Hindustan Motors for assembling one of its German products the Opel Astra, French giant Peugeot the joined hands with Premier Automobiles to make Peugeot 309 and Britains car Mahindra and Mahindra have embarked upon the process of assembling Chryslers Jeep Cherokee, using its new Peugeot engine and gear box, TELCO has finally signed up the Dailmer-Benz for manufacture of the Mercedes-Benz

COMPANY PROFILE
Maruti Udyog Limited
Maruti Udyog Limited was established as a Government Company in February 24 th objectives: Modernization of Indian Automobile Industry. Production of Fuel efficient vehicles to conserve the resources. Production of large number of motor vehicle which are necessary for economic growth. Maruti Udyog Limited was incorporated, to meet the growing demand for a personal mode of transport caused by the lack of an efficient public transport system. Suzuki Motor Company was chosen from seven prospective partners worldwide. A license and a Joint Venture agreement were signed with Suzuki Motor Company (now Suzuki Motor Corporation of 1981 with the following

Japan) in October 1982, by which Suzuki acquired 26% share of the equity. MUL created history by going into production in a record 13 months. Maruti 800 was the first car that was launched in 1984. The car had an engine capacity of 796 cc, high fuel efficiency and the pricing was extremely competitive. Over the last 10 years, MUL has launched various models such as Omni, 1000, Zen, Esteem, WagonR, Gypsy, Alto, Baleno and Vitara, targeting all segments of customers. MULs plant is located at Gurgaon in Haryana. It has an installed capacity of 350,000 vehicles. However, the company, through productivity improvement initiatives, would be easily able to produce 500,000 vehicles with its existing facilities. MUL manufactured 370,000 cars at its three plants in Gurgaon in FY 2002-03. The total manpower strength of the organization is 4,629, with an average age of all employees at 36.53 years.

MUL is a subsidiary of Suzuki Motor Corporation, the largest manufacturer of mini passenger vehicles since 1974. Suzuki has a volume market share of 31.6% in 2002, according to Japan Mini Vehicle Association. Suzuki is the also the eleventh largest vehicle manufacturer in the world and the fourth largest manufacturer in Japan. Suzuki is best known for building small compact cars and giving customers the advantage of big car packed into a small frame. Suzuki increased its equity stake in MUL from 26% to 40% in 1989 and further to 50% in 1992, converting MUL into a nongovernment company. MUL made a Rights Issue of 1,219,512 equity shares of Rs.100/- each in May, 2002, at a price per share of Rs3280/, which led to an increase in Suzukis stake to 54.2%. In addition, Suzuki paid a control premium of Rs10bn to the Government of India and management control now vests completely with Suzuki Motor Company , Japan.

The Passenger Car Industry The global car industry is estimated to be valued at around 38mn cars and US$700bn in value. The highly penetrated markets of US, Europe and Japan have witnessed a slowdown in demand growth during the last three years due to economic slowdown. Most auto majors globally have therefore set their sight on the low penetrated markets in developing economies. Global Penetration statistics Country USA Japan Bangladesh Sri Lanka India Car per thousand population 800 700 14 12 7

Demand Drivers The key factors that determine demand for cars are 1. Household Income Levels 2. Product Availability and Access 3. Product Affordability 4. Availability of Finance 5. Infrastructure (Road) Development A case in example would be the Chinese market, where the passenger car market has doubled in size during the last two years. Chinese car sales have grown from 0.6mn vehicles in 2000 to 1.1mn vehicles in 2002. This growth has been largely driven by factors such as lower import duties on imported cars, reduction in car prices by local manufacturers, entry of new foreign players in the country through joint ventures, etc.

Major players in the Indian market Company name MUL Telco Hyundai Daewoo Ford HM Fiat Honda GM Installed capacities 350000* 160000 120000 110000 100000 64000 50000 30000 25000 Utilization % 102% 58% 78% 10% 36% 34% 33%

Passenger Car Market Shares : 2002-03 Hyundai Telco Maruti Others 16.1% 11.5% 57.1% 15.3%

Brand Segment Capacity (CC) Launched in M800 A Omni A Alto B WagonR Zen B Baleno C Esteem C M1000 C Versa C Gypsy UV Vitara UV 1590 1298 1000 1298 1298 2700 796 796 796/1061 B 1061 83 Dec 84 Nov 00 Sep 99 Dec 93 99 Dec 94 Nov 92 Apr 01 Oct 85 Dec 03 Apr

MISSION OF THE COMPANY

To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export market.

The Revolution

Maruti created history by going into production in a record 13 months. On 14 December 1983, the then Prime Minister of India, Mrs Indira Gandhi, handed over the keys of the first car to Mr. Harpal Singh of Delhi. Volume targets were routinely exceeded, and in March 1994, we became the first Indian company to produce over one million vehicles, a landmark yet to be achieved by any other car company in India. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 4 million vehicles by April 2003.

Maruti is one of the most successful automobile joint ventures, and has made profits every year since inception except 2000-01. In 2001-02, we made a profit (before tax) of Rs 1183 million. In 2002-03, the profit (before tax) rose to Rs 2821 million, recording a growth of 138.4% over the previous year. We revolutionised the way Indians looked at cars. "No other car company so completely dominates its home market" (The Economist). MUL is the first and only car company in the world to lead its home market in terms of both market share and in the JD Power Customer Satisfaction study (JD Power Asia Pacific 2000 India Customer Satisfaction studies). It is also the only car company in the world to be Top ranked three times in a row (2000, 2001, 2002)

Production
The average daily production is 1300 vehicles per day, i.e., nearly one car every minute. The existing plant capacity is 250000 units per annum. The production facilities at Maruti

Udyog Limited inlcude a modern Blanking Line, Press Shop, Weld Shop, Paint Shop, Parallel Assembly lines for different models, Engine Assembly line, Machine Shop, Testing & Inspection Lines.

Transfer

of

Technology

Every minute two vehicles roll out of the Maruti Plant. It is therefore imperative that the transfer of contemporary technology from our partner Suzuki is a smooth process. Great stress is laid on training and motivating the people who man and maintain the equipment, since the best equipment alone cannot guarantee high quality and productivity. From the beginning it was a conscious decision to send people to Suzuki Motor Corporation for on-the-job training for line technicians, supervisors and engineers. This helps them to imbibe the culture in a way that merely transferring

technology through documents can never replicate. At present

20%

of

our

workforce

have

been

trained

under

this

programme.

Export
In the last seven years Maruti exported a total of 67000 vehicles to sixty seven countries. 80% of these vehicles have been sent to European countries.

Maruti Culture
Organizational Cultural is a philosophy which guides the actions and behaviors pattern of the employees. Maruti has a distinctive work environment where all employees are treated as equally important members of Maruti family. A well established suggestion scheme encourage all employee to implement a least two suggestion every month. Suitable regards are given for each implemented suggestion.

Quality

Systems

ISO

9001:2000

At Maruti, our approach to quality is in keeping with the Japanese practice--"build it into the product". Technicians themselves inspect the quality of work. Supervisors educate and instruct technicians to continually improve productivity and quality. The movement of quality indicators is reviewed in weekly meetings by the top management. In 2001, Maruti Udyog Ltd became one of the first automobile companies anywhere in the world to get an ISO 9000:2000 certification. AV Belgium, global auditors for International Organization for Standardisation(ISO),

certified Maruti after a four day long audit, covering varied parameters like Customer Focussed organisation, Leadership, Involvement of people, Process approach, System approach to Management, Continual improvement, etc.

In May 1995, Maruti got ISO 9002 certification. The audit for this covered quality assurance in production, installation, marketing and sales as well as after sales services. We were also one of the first companies in the world to pioneer ISO 9000 certification for our dealers. In October 1993, MUL passed the Conformity Of Production (COP) Audit, which is based on a European

Union Directive. This authenticated our quality systems and testing facilities for export to Europe. Our emphasis on total quality has meant that today we are in a position to guide vendors and dealers in establishing and consolidating their individual quality systems. This

commitment to quality has ensured a consistently satisfying product and world-class sales and after-sales services.

Joint Ventures
Maruti has established nine joint ventures. Five of these are located with in the premises of the company and the rest four are situated around the plant. These joint ventures are engaged in production of high value, high quality components such as Bumpers, Seats, Fuel tanks, Glasses, Steering column, Radiator etc. Since most of the joint ventures supply excessively to Maruti, their supply has been regulated to maintain just in time inventory levels for these parts.

Our

Vision

The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India. Our Core values: 1. Customer Obsession

2. Fast, Flexible & First Mover 3. Innovation & Creativity 4. Networking & Partnership 5. Openness & Learning

SWOT ANALYSIS
Strength
Largest production base about 1300 cars per day Different model exported to different country (Maruti 800, Alto, Wagon R, Omini) Well established networking and distribution system in 30 countries of the world. Market share of 70% in the Indian car industry. Only exporter of cars from India. Good technical support and service abroad. Produces the most fuel efficient vehicles. Consider to be good small car on the foreign roads in Europe. Highly efficient and technical staff abroad. Good customer support.

 Good infrastructure in India.

Weakness
Low emphasis on research and development Exports limited to Zen and Alto only. Technology in Maruti 800 is out dated.

Opportunities
Largest market in India and also good market in Europe.

Threats
Competition from the automobile industry of the world. Not regarded as the branded name around the globe.

ANALYSIS OF THE RAW DATA TABLES

AFRICAN CONTINENT
Algeria There were no exports to Algeria from 1986-1996 but maruti enter the Algerian market in 1997 with exporting 42 cars and the export have been increasing ever since and in 2002-2003 the figure was 1190. African markets such as Egypt and Algeria are also not in the best of shapes Anglola The market for export in Anglola opened in 1990-91 with only two export order in 1991 to 1995 their were no export to Anglola but in 1996 there was a jump of 100 exports till 1999 the export have been constant. The total number of Maruti Cars present in Anglola is 859.

Burundi & Bennin

The market for export in Burundi have been nil because Burundi is considered to be the poorest country of the African Continent.

Egypt
The market for export opened in 1992 when Maruti received a order of 56 cars to be exported to Egypt. A total number of maruti car present in Egypt is 3891 with maximum number of maruti 800 with the figure of 3595.

Kenya
Kenya has been a good market for export since 1993 the export in this region has been satisfactory.

South Africa
South Africa is considered to be a developed region in African continent there has been no export to South Africa because people in South Africa are very rich and they love to drive big and luxury segments car. So maruti was unable to capture that market because of exporting on economy or mid segment cars

Mauritius The market for export of Maruti Car opened in 1986-1987 in Africa when three exports were made to Mauritiuss.

Asia and Middle East

BangladeshAll over the world maruti got the first export order from Bangladesh .the export order was of 55 cars in 1986-87 and at present in 2003 the export is 3767.maruti 800 was the most successful car in Bangladesh .maruti has also singed a contract with the government of Bangladesh to use maruti as a taxi in Bangladesh.maruti hopes to export at least 1,000 cars to Bangladesh for the taxi market this year. Maruti will shortly be introducing the 800-cc cars again in Bangladesh as a taxi, a return after the Government there imposed restrictions on cars with small engine capacities as taxis. The export order increased year after year because of being very near to India easily transported,labour mechanics being very cheap,good service station of maruti,parts are easily available,performance of maruti on their roads excellent.total number of maruti cars present on the Bangladesh roads are upto 6529. Some of our neighbouring countries such as

Bangladesh and Nepal are going through political and economic uncertainty

NEPALMaruti entered in Nepal in 1986-87 with 32 exports .the

market for Indian cars like maruti has been increasing at a very high rate.the export rate increased because of the roads conditions being similar to India .very near from India,good service station with 24 hour breakdown facility. the

company's efforts in the current financial year would be to give a big push to the sales of the recently-introduced models in Nepal.

Pakistan and bhutanif the relation improves with Pakistan then maruti may enter the Pakistan car market .there has been no exports order from Pakistan ever since 1986.the market for Indian cars like maruti and telco is increasing rapidly.the total number of maruti cars present there are 3968

Saudi Arabia
There has been no exports to saudi arabia since 1986 .maruti is unable to capture this market because of presence of many international compaianes like general motors ,Toyota

,mistibushi,ford .these companies has a very good hold on automobile sector in Saudi but as is maruti exporting in mid segement like zen and alto there may be a good market in the future

Singapore
maruti has not got a good share in south east asia because suzuki is already present over there and has got a good share in these market the countries were Suzuki has a good market are japan, malyasia, Singapore, hongkong

EuropeEurope has been the hottest market for maruti udyog limited since 1994 there are 35 countries in Europe were maruti is exported with a good export figure 26228 in 1996-97 when the exports was maximum .alto is the most preferred and successful car on the european roads .the reason for alto being successful are of good space, left hand drive,fuel efficient,build on euro standards. The Alto has replaced the Zen/Alto in Europe from February 02. Since then, it has been creating waves in the competitive compact car markets of Europe. The Alto was shown for the first time at the Geneva Motor Show in February 02. Our distributors then formally launched the Alto in their respective countries. The first country to launch the Alto was the Netherlands, which is our biggest and most important export market, and to which maruti exported over 46,000 vehicles till March 02. The launch function was held on 30th March 02. maruti report

that the Alto is a hit received very good reviews. What followed was way beyond their expectations. People waited for hours to have a test drive. Around 500 cars were sold on the first day itself and 2300 cars were booked in the first fifteen days. This tremendous response led to the distributor doubling his planned purchases of the model for the year April 2002-March 2003 to 7000 cars.

Latin America
Chile was the first country in latin America were there was some exports in 1989-90 the market from that period has been increasing .there has been no maruti exports in costa rico ,cuba,Surinam .the reasons for not geeting good export order are not a good market for Indian cars,outdated technology,highly labour,not ment presence for of American cars,expensive not so

american

roads,service

cheap,tarnspotation risk,no mechanics for Indian cars not so good performance, the quality of interiors not good

latin American markets are also going through an economic slowdown.

OceaniaAustralia and new Zealand have been markets for maruti exports maruti entered austalia in 1989 with 180 exports and new Zealand in 1988 in with 9 exports .the market for maruti cars increased from 1989 to 2000 but there has been no exports in last two years .the main exports were mainly in gypsy and zen .total numbers of maruti cars present in the autralian roads are 5575 as compared to new Zealand the figure of maruti cars is 479. The Maruti 800 has successfully positioned itself as an economical, small car in Chile, Uruguay, Algeria, Egypt, Sri Lanka, Yugoslavia and Malta, amongst others. The versatility of the Omni makes it an attractive buy in countries like Kenya, Mozambique, Cyprus and Nepal. The reliable and

rugged Gypsy is a front runner in the 4WD segment of many African and Asian markets.

Maruti expoting orders

MARUTI Udyog Ltd has bagged orders for exporting 16,000 Alto cars to European countries in the current financial year the orders for the 1.1-litre version of the Alto had come from across France, the European countries: Austria, Belgium, Finland, Germany, Greece, Ireland, Italy, Netherlands,

Switzerland and UK Suzuki's Europe-based distributors had already got these orders, The order comes at a time when Maruti is confronted with a dip in its car exports for the second year running. In 2001-02, Maruti exported 11,874 cars, down about 21 per cent from 15,025 cars exported in 2000-01. The company's exports in 1999-2000 were 20,943 cars, as per the data provided by the Society of Indian Automobile Manufacturers.

Maruti, a 50:50 joint venture between the Union Government and Japan's Suzuki Motor Corp, had exported 356 utility vehicles in 2001-02, which was 45 per cent higher than exports of 2000-01. Europe is said to account for every second car the company exports. The company uses the Maruti, Maruti Suzuki and Suzuki badge in the international market. The company's efforts in the current financial year would be to give a big push to the sales of the recently-introduced models. The company was expecting to better the export performance in 2002-03 in a significant manner, mainly on the back of the Europe export orders, , the company is expecting to export over 22,000 cars in 2002-03

Maruti to improve export performance

MARUTI Udyog Ltd is confident of registering a growth in vehicle exports this financial year despite the adverse international market conditions But the company is unlikely to meet the internal export target of 18,000 vehicles. Maruti had exported about 15,300 vehicles in 2000-01, which was down 28.67 per cent from 21,450 vehicles exported in 1999-2000. In April-September, the first six months of the current financial year, Maruti Udyog has already exported 5,022 cars, which is down 28.34 per cent compared with 7,008 cars exported in 2000-01. Car exports in the first half of 19992000 were 8,248 cars. In addition to this, the company has exported 220 `Gypsy' utility vehicles this year, which is significantly higher than the 90 vehicles exported in the same six months of last year. In 1999-2000, the company had exported 199 vehicles in this period.

Maruti, a 50:50 joint venture between the Indian Government and Japan's Suzuki Motor Corp, is the second largest car exporter from the country with a 22.1 per cent share of all car exports from India. Ford India Ltd, a subsidiary of US Ford Motor Co, is the largest exporter, sending its `Ikon' car to markets such as South Africa and Mexico. It has a market share of 65.38 per cent of all car exports. But despite an international slowdown and economic

uncertainty that has risen after the September 11 terrorist attacks in the US and the subsequent war on Afghanistan, this year car exports from India has risen sharply due to vigorous exports by Ford India. The going, however, has not been all that good for other manufacturers. ``There are very clear signs of a slow down in various emerging economies. However, (car) orders as far as Europe is concerned, maruti is on target

That is good news for Maruti as Europe accounts for every second car the company exports.. African markets such as Egypt and Algeria are also not in the best of shapes,. South American markets are also going through an economic slowdown. Maruti Udyog exports vehicles under the Maruti, Maruti Suzuki and Suzuki badge in the international market.

INTERNATIONAL SENARIO
Maruti has a strong international presence with sales in over 70 countries worldwide spanning from Europe, South and Central America, Africa, Oceania and Asia. In the map above, the areas shaded in blue indicate our presence. Our total exports till July 2002 were over 253000 vehicles. Over 71% of these vehicles have been exported to Europe. The internationally popular Alto has carved a niche for itself in extremely competitive and technologically advanced European countries like Netherlands, UK, Finland, Sweden, Greece, Italy, Belgium, and in South America. Building on our performance record and the ties of trust we have forged over the years, we remain committed to our corporate vision of being an internationally competitive company in terms of products and services, and providing value and satisfaction worldwide.

For successfully carving out this niche in international marketing, the Government of India has awarded us the Golden Star Trading House status.

Reviews in top automobile magazines:

Alto is at its best while driving in the city where the agile handling can be enjoyed and small engine doesnt feel inadequate. Actually Alto is so light-weight that the 1,1 liter engine feels surprisingly powerful. Gear ratios are optimal and the engine runs perky on lower rpms too, so driving Alto in a city is actually a pleasure. -Tuulilasi (the second biggest Finnish car magazine) [For more (in Finnish), click Tuulilasi] Alto's CO2 emissions are as low as 119 grams per kilometer, among the lowest yet achieved in a gas-powered car. Since the Alto was launched in 1979, more than 7.3 million have been sold worldwide, making it one of the most popular minicars ever. Newsweek Alto is a great choice for a city car. It is easy to drive, has a great value for money and very low consumption. -Autocar, Greece The Alto performs well and handles well and the driving features provide both confidence and comfort. Netherlands

Its high power engine makes Alto the fastest city car. At the same time it is one who needs less fuel to run. The combination of driving ease and comfort is great....buy new Alto with AC - it's cool. Car The driving feel: The Alto surprised us even more on the road. The 63-PS engine is a lively fellow. It's responsive and allows brisk acceleration: easily up to 155 kph, if need be. And the small 4-cylinder engine achieves this with a standard

consumption of 4.9 litre Super fuel. When one avoids high engine speeds, one can even enjoy a quiet engine.

METHODOLOGY
The research methodology, which has been applied for this project, includes the following:

Data collection - The data was collected from secondary sources only. Following are list of articles and references. WEBSITES3

www.google search www.msn search

www.marutiudyogltd.com

Magazines
Automart Overdrive Cars

Astro Overview Introduced in 1985 as a rival to the first front-wheel-drive (FWD) Chrysler minivans, the midsize, truck-based Astro was Chevrolets original entrant into that market. Still available with either rear-wheel drive (RWD) or all-wheel drive (AWD), the Astro is positioned between Chevys FWD Venture and the full-size, RWD Express.

For the 2003 model year, the Astro minivan gets standard four-wheel disc brakes. Newly styled 16-inch aluminum wheels go on the LS and LT passenger models; those trim

designations are actually option groups. A new, lower-cost base model equipped with 16-inch steel wheels has been added. A two-seat Cargo Van is also available for commercial applications.

GMCs Safari is nearly identical to the Astro, but Chevys van outsells its GMC cousin by a wide margin. Neither has been selling strongly.

Exterior Produced in a single body length, the Astro rides a 111.2-inch wheelbase and measures 189.8 inches long overall. A regularlength Dodge Caravan is nearly as long as the Astro, while a Dodge Grand Caravan stretches 11 inches longer. Optional running boards help ease entry and exit in the Astro.

A sliding door is installed only on the passenger side, and swing-open rear cargo doors are standard. Dutch doors with a

swing-up rear window on top and twin swing-out doors on bottom are optional. A rear defogger is included with the Dutch-door setup.

Interior Astros are equipped with a tilt steering wheel, cruise control, and power windows, locks and mirrors. Eight-passenger seating consists of two front buckets and a pair of three-place rear bench seats. An optional seven-passenger configuration for the LT puts two second-row bucket seats in place of the bench; the LT may have optional leather seating. With the second- and third-row seats removed, cargo space totals 170.4 cubic feet.

Under the Hood A 4.3-liter V-6 engine produces 190 horsepower. The fourspeed-automatic transmission incorporates a Tow/Haul mode that alters shift patterns when transporting heavy loads. A

RWD passenger model can tow up to 5,400 pounds, while the Cargo Van is capable of pulling 5,800 pounds. AWD Astros offer towing capacities that are 200 to 300 pounds lower. RWD passenger Astros have a 1,648-pound payload rating vs. 1,495 pounds for AWD models.

Optional AWD normally sends full power to the back wheels. In case of slippage, the system begins to deliver power to the front wheels until the Astro is able to regain traction.

Safety Four-wheel all-disc antilock brakes are standard. Side-impact airbags are not available.

Driving Impressions In terms of both size and overall driving feel, the Astro and its Safari cousin are more like scaled-down Express vans than enlarged Venture minivans. Despite refinements in current models and a load of comfort and convenience features, RWD inevitably produces more of a trucklike sensation than youd experience in a FWD Venture or its rivals. For ample hauling capacity and a spacious cargo hold, the Astro can be a useful compromise. But for everyday driving, most people would be more comfortable in a conventional, FWD minivan.

Reported by Jim Flammang for cars.com .tbltext { FONTFAMILY: { arial,sans-serif; Arial, FONT-SIZE: 12px } .inctvbtn

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Daewoo Overview
The reality of any Daewoo automobiles reaching U.S. dealerships for the 2003 model year was in question as of the summer of 2002. By fall, it was obvious that Daewoo was out of the American market. No more Lanos, Leganza or Nubira models will be arriving at dealerships, and other than existing models already on the road, the Daewoo brand will disappear from the United States. In March 2002, as the companys financial status worsened, dealers stopped ordering new cars. General Motors purchased a 42percent share of the embattled South Korean company in April

2002 that includes two assembly plants in South Korea and sales organizations in various countries. The GM purchase did not include the companys U.S. sales arm, which is unfortunate for American dealers and current Daewoo owners. The No. 1 automaker considered selling Daewoo cars in countries such as Mexico, where they would likely have worn Chevrolet or Suzuki badges, but no plans for the continuation of Daewoos in the United States were suggested under any

nameplate. After laying off 65 percent of its work force, Daewoo Motor America filed for Chapter 11 bankruptcy on May 16, 2002. More than 500 Daewoo dealerships were left hanging and unsure about additional vehicle shipments. A number of dealers filed lawsuits in an attempt to clarify their situation and obtain some compensation.

By November 2002, executives of the newly formed General Motors Daewoo Auto and Technology Company indicated that the South Korean automaker would focus its attention on European and Asian sales rather than on sales in Latin America and other parts of the world, according to Automotive News. By then, some auto insurers in the United States were refusing to offer collision coverage to

Daewoo owners, citing the unavailability of repair parts.

The

new

GM/Daewoo

organization

will

fund

third-party

administrators who are responsible for warranty fulfillment. In the United States, that administrator has entered into an interim agreement with Daewoo Motor America (the original U.S. sales company), which will fund warranty work. Consumers can continue to get work done on their cars by a Daewoo dealer.

Over the past couple of years, Daewoo suffered serious financial troubles sufficient enough in magnitude to prompt its executives to seek a buyer for the company. Along with its parent company, the Daewoo automotive group endured massive losses.

Ford emerged first as the highest bidder for the forlorn car business, but that prospect fell through. GM then appeared to be the most likely buyer, but negotiations lingered for many months before a decision was made.

Since its emergence into the U.S. market in 1999, with a lineup of three models, the South Korean manufacturer had sought to

become a notable global player. Rather than abiding by the traditional dealership tactics, an innovative selling policy was employed at first. Daewoo in America relied on college students to promote the small Lanos, midrange Nubira and larger Leganza sedans. That program didnt last long, and conventional showrooms began to spring up around the country.

Daewoo managed a 117-percent sales increase in 2000, with 68,360 cars going to customers, but sales slumped by 29 percent during the 2001 calendar year to just 48,296 units, according to Automotive News.

At one point, Daewoo had intended to introduce a Korando sport utility vehicle, but that plan was scuttled. A redesigned Leganza sedan was exhibited in January 2001 at the North American International Auto Show in Detroit. A new micro-minivan, codenamed U100 and wearing a Rezzo nameplate, was also unveiled at the 2001 Detroit show. Barring a miracle, none of those vehicles will ever turn up in the United States.

Reported by Jim Flammang for cars.com

Fans of the British-built Mini hadnt seen one officially imported into the United States since 1967. In March 2002, a brand-new Mini arrived in America that capitalizes on the Minis heritage but creates a new brand. The modern-day rendition of the legendary Lilliputian motorcar came into being after BMW bought the company that had produced the original.

BMW

announced

Mini

pricing

at

Detroits

North

American

International Auto Show in January 2002: $16,300 for the base Cooper and $19,300 for the more powerful Cooper S (excluding destination charges). Prices for 2003 have risen by $125 because Minis get new interior trim choices. A Sirius Satellite Radio is optional for the 2003 model year.

The 21st-century Mini is larger than its 1960s predecessor, and it debuted at the Paris Motor Show in the fall of 2000. A close-toproduction version turned up in January 2001 at Detroits auto show. Production began on April 26, 2001, at an all-new plant in Oxford, England. The first cars were earmarked strictly for Britain, where the Mini went on sale on July 7, 2001. The BMW-owned factory expects to produce 100,000 units per year, and 20,000 of

those will be sent to the United States.

Developers were focusing on fun and ended up creating the shortest car sold in America. Its not about size; its about character and charisma says Product Manager Kevin Philips.

BMW is noted for rear-wheel-drive automobiles, but the Cooper and Cooper S are equipped with front-wheel drive. In addition to the standard manual shift, both Cooper models are available with a Steptronic continuously variable transmission (CVT). A number of the Cooper and Cooper Ss components are shared with other BMW vehicles, but nothing has been carried over from the old Mini. The original Mini actually remained in production and was available for sale outside the United States until October 2000.

When the two Cooper models initially went on sale in the United States, only about 70 BMW dealers were permitted to sell them. Each dealership must establish a brand-specific sales environment.

Back in the 1960s, Minis turned into automotive icons similar to the trend with the Volkswagen Beetle. Economy-minded

consumers, celebrities and even British royalty drive Minis. The early Mini had a gift for irreverence and fun and cheekiness, says Michael McHale, communications manager for Mini. BMW wouldnt mind seeing similar interest develop in the modern Mini like the comparable outpouring of enthusiasm for the Volkswagen New Beetle. A smaller BMW model is also in the works, but it has no relation to the Mini.

Exterior Designers selected the 1967 Mini Cooper as their starting point for the new model. Despite its increased dimensions and a more contemporary appearance overall, the modern Mini has a squarish shape thats similar to the original. All four wheels are positioned at the far outside corners a theme that also harks back to the first Mini. Short overhangs yield a wheelbase thats only 4 feet shorter than the entire length of the vehicle.

Mounted on a 97.1-inch wheelbase, the Cooper measures 142.8 inches long and the Cooper S stretches to 143.9 inches long overall. Standard tires for the base model measure 15 inches in diameter, and 16-inch run-flat tires are optional. The Cooper S

comes with standard 16-inch run-flat tires and optional 17-inchers, which is quite a contrast to the 10-inch tires on the original Mini. Cooper buyers have a choice of 10 exterior colors, and the new models may be equipped with or without a signature contrastingcolor roof. The Cooper S comes in eight body colors, and two of them are exclusive to that model. A sunroof is optional. Sport and Premium Packages for both models are priced at $1,250, which is the same amount charged for the optional CVT.

Interior Four occupants fit inside the Mini in a configuration similar to that of old Minis. The current model provides more interior space than its exterior dimensions suggest. Leatherette upholstery is standard, and cloth or leather is optional. A center-mounted speedometer is also reminiscent of the one used on the original Mini, and the tachometer sits atop the steering column. Options include a navigation system, xenon high-intensity-discharge headlights and heated seats. In models equipped with the navigation system, the speedometer is mounted ahead of the driver. Cargo space is 5.3 cubic feet, and that number jumps to 23.7 cubic feet when the rear seat is folded down.

Under the Hood The Coopers 115-horsepower, 1.6-liter four-cylinder engine teams with either a five-speed-manual gearbox or a Steptronic CVT. The engine pumps out 110 pounds-feet of torque, which Mini claims is sufficient to accelerate the Cooper from zero to 60 mph in 8.5 seconds.

A supercharged Cooper S that uses a Getrag six-speed-manual transmission also went on sale in March 2002. The Cooper S engine is rated at 163 hp and 155 pounds-feet of torque, and it can accelerate the car from zero to 60 mph in 6.9 seconds.

Safety The Cooper and Cooper S each contain six airbags, including BMWs Head Protection System. Dynamic Stability Control is standard, and these models use all-disc brakes.

Driving Impressions Fun takes center stage with the new Mini. Tight, quick

maneuverability is its No. 1 attribute. This little hatchback clings to

the pavement as if it was magnetized. It can start to leap upward in hard turns at high speeds, but theres no sensation of losing straight-on momentum or relinquishing the tires grip on the road. Only a slight turn of the steering wheel just 2.5 turns lock-to lock produces substantial directional change, which is a big reason for the Minis intense delight quotient.

Ride quality is another story. All cars are compromises between ride and handling. When making a decision, BMW developers clearly leaned toward sportiness. The Mini can get pretty bouncy on uneven pavement. While delivering smile-inducing experiences otherwise, the ride comes closer, for example, to that of the Mazda MX-5 Miata than the Volkswagen New Beetle. The 15-inch tires yield a smoother ride than the 16-inch run-flat tires.

Enthusiasts are likely to adore the Minis cheery personality and tenacious talents by applauding its nimbleness and agility during every outing. Potential buyers who expect more docile, gentle motoring would be wise to try the Mini on a variety of road surfaces to make sure its comfort level is sufficient for longer journeys.

Defying its 115-hp capacity, the Coopers engine delivers plenty of zest, but response in the middle gears at low speeds occasionally falters. Only the most ardent enthusiasts need to consider the higher-powered Cooper S, whose impact is most noticeable at relatively high engine speeds. The Cooper S delivers its extra helping of vigor with no significant penalty in ride comfort.

The Coopers five-speed-manual transmission and clutch make a great team; the tall lever helps the driver zip through the gears without a moments hesitation. The Getrag six-speed in the Cooper S is even sweeter, and it makes you want to shift as often as possible. In a brief test drive, the CVT units performance seemed more hesitant than that of the stick-shift model, but it functioned as promised.

Despite very short bottoms, the sport seats are comfortable and supportive. The regular seats are more basic and just as comfortable, but they may not suit every driver. The backseat may look uninviting, but its actually quite comfortable with abundant headroom; it offers less space for the rear-seat occupants legs if the front seats are positioned rearward. The Coopers seat

adjustors arent the easiest to operate, and some of the controls are idiosyncratic, but thats part of the Minis unique personality.

The huge speedometer in the middle of the dashboard is easy to read at a glance, and placing the tachometer atop the steering column seems appropriate in this car. The mirrors are a bit small, and the front seat has no grab handles.

Putting questions of ride comfort aside, consumers who savor a sensational driving experience at a low price should start looking for a dealer that is willing to sell one of these mighty little machines. Despite the cars small size, buyers are guaranteed to get a fully packed driving experience.

Hyundais most popular model slots between the subcompact Accent and the midsize Sonata in both size and price. An Elantra GT five-door hatchback joined the regular four-door GLS sedan in 2002. For the 2003 model year, a four-door GT sedan with a conventional trunk joins the hatchback in Hyundais sporty Elantra GT series. The Elantra earned new styling and larger dimensions for the 2001 model year.

European-themed GT models promise the comfort and handling characteristics of a Euro-sedan. They get a tauter suspension with higher-rate springs, gas-filled shock absorbers and larger-diameter stabilizer bars. All-disc brakes, fog lamps and five-spoke alloy wheels are installed. The same 140-horsepower engine found in the regular Elantra powers the GT models.

Exterior The Elantra is highlighted by strong character lines, and its styling is more chiseled and European-looking than on prior models. The Elantra rides a 102.7-inch wheelbase, measures 177.1 inches long overall, stands 56.1 inches tall and stretches 67.7 inches wide.

Interior Each Elantra model seats five occupants. The three-place, 60/40split, folding rear seat expands the sedans trunk space, which totals 11 cubic feet. Standard equipment includes air conditioning, a four-speaker sound system with a cassette player, a rear defogger, and power windows, door locks and mirrors. A sixspeaker sound system with a CD player is optional.

A unique instrument panel in GT models features purple-lit VDO gauges. Leather seating surfaces are included in the GT.

Under the Hood Both Elantra models are powered by a 140-hp, 2.0-liter fourcylinder engine that mates with a standard five-speed manual or an optional four-speed-automatic transmission.

Safety Side-impact airbags are standard in all models. Antilock brakes are optional for the GT.

Driving Impressions

Even though the Elantra isnt overly enticing at first, it tends to grow on an open-minded driver and then turns into an appealing little automobile. Performance with the manual shift is surprisingly frisky, and the Elantra accelerates with spirit. The gearbox and clutch are well matched to the engine, which permits a gentle engagement for easy takeoffs. But putting it in Reverse can be a chore at times. Except for a slight growl during acceleration, the Elantra is quiet on the road. The automatic transmission is likely to sap some of the strength from the 140-hp engine.

The Elantra manages to whip through corners and turn with ease, almost with a passion that is uncommon for a car of its class. Some body lean is evident in curves, but its not enough to be troubling. The Elantras ride is pleasantly easygoing for a small car because its suspension copes adeptly with rough spots.

The seats are especially attractive, firmly cushioned and have very good back support. Compared to other cars glove boxes, the Elantras holds more items than most these days. Backseat legroom is also amazing, and even the center rear position isnt too bad.

The Elantras handling is noticeably, but not dramatically, tauter on the shapely GT hatchback, and ride comfort suffers only modestly. This car is fun to drive because of the easy-to-use manual gearshift and well-behaved clutch. The GTs leather upholstery is a pleasant bonus. The gauges on the GT are large, but their distinctive hue isnt the easiest to read at a glance during nighttime driving.

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INTERNATIONAL STRATEGY

Export marketing in the integrated marketing of goods and services that are design for customers in International Market. Export marketing requires 1. Target market environment :- Maruti must have clear understanding of the target market environment so that it can launch vehicles according to the market need. 2. The use of marketing research before entering the market or launching a new vehicles Maruti should used marketing research in a extensive way and should Identity the market potential. 3. Decision regarding Product Design, Pricing, destruction channels, advertising and communication should be taken care of in the light of target market environment and market potential.

4.

Company can state of art service centre across all the 70 countries to which it is exporting to gain customer confidence.

5.

The company can set up small assembly plants in which it can assemble CKD Completely knock Down Kit to leverage the labour cost component cost etc.. if any in another countries for example in developing counties like Algeria , Mauritius, Burundi and Benin.

6.

Market like Argentina, Chile and Panama it can leverage General Motors, Distribution channels and intelligent to hold the market over their because General Motor has a own stay in Suzuki which is Maruti parent company.

7.

It should search for strategic partner which meet the following five criterion in the overseas market. (i) Mission :- Successful strategic partner create win to win situation in which participant pursue objective on the basic mutual needs. (ii) Strategic :- A company may established separated strategic partners with different strategic avoid conflict.

(iii) Governance : Partners must be viewed as equals (iv) Culture :- Personal Chemistry in important is successful development of a shared set values. (v) Organization :- Innovative strategic and design may be needed to offset the complicity of Multi Country management. 8. Should assess the potential of in developing economic and under developed economies to do business over their.

9.

Management strategic partners involved a different type of decision making issue must be identified in advance and clear.

LIMITATION

1.

The subject matter of the research is such that it is very difficult to carry primary research.

2.

The persons who were contacted for interview could not take out time.

3.

The analysis of data have a personal bias.

CONCLUSION

Maruti is currently exporting over 70 countries. What maruti need to do is to build a strategic ties in developing economic so that it can build a brand image of itself by gaining market share and market knowledge from the alliance partner in order to follow their design, distribution channel and

marketing communication for a particular market in those countries in which it is currently exporting. It can also upon state of service station across different countries so that the fail among the customers can result to positive word of mouth that may result to increase of sales and export to that country. Maruti should also give the customers the best quality, service to have a edged in the market.

ACKNOWLEGMENT

I would like to take this opportunity to express my sinecures thank to Prof. Pankaj Kumar who took a keen interest in my project and help me out with my study.