Increasing growth of Maruti-Suzuki in rural area

GROUP NO.7
ROHAN VASHISTA(106)
MOHD. AMAN(33)
VIPUL KUMAR(81)
PRIYA KUMARI(123)
SUHANSHI PRIYA(93)
NISHU GUPTA(137)
AKANKSHA SRIVASTAVA(7)
SALONI GUPTA(53)
SHUBHAM PAUL(66)
 Indian automobile industry
• The Indian automobile sector took boom in the late 1970’s.
• India is home to vibrant automobile segment of more than 40 million
vehicles.
• In 2009-10, it recorded its highest volume ever, and expected to that it will
increase its car per capital income in 1000 population.
• India has emerged as Asia's fourth largest exporters of automobiles behind
japan, south Korea and Thailand.
• India automobile sector occupied predominant position in the world.
a) It is second in 2 wheelers
b) Third in small cars
c) Fifth in commercial vehicles
Growth
• The India auto industry became the 4th largest in the world with sales
increasing 9.5 per cent year-on-year to 4.02 million units (excluding two
wheelers) in 2017. it was the 7th largest manufacturer of commercial vehicles
in 2018.
• The two wheelers segment dominates the market in terms of volume owing to
a growing middle class and a young population. moreover, the growing
interest of the companies in exploring the rural markets also.
• The passenger vehicles production in India touched 3.23 million unit in 2012-
13 and expected to reached 10 million in 2020-21.
• India is also preferred to accumulated its manufacture facilities with US and
Australia.
Growth
Consumer behavior in automobile sector
• Buying behavior may have many
parameter:
1. Social
2. Economical
3. Political
4. Product and tech.
5. Demographic
6. Geographic
7. Psychographic
Consumer segments in passenger car market
• Sports utility (SUV) and multiutility vehicle (MUV)
segment.

• Luxury and coupe subsegment.

• Compact car segment.

• Micro car segment.

Strategies followed by Maruti-Suzuki
• Maruti-Suzuki is a joint company which was founded
by government in 1981, only to merge with the
Japanese automobile company Suzuki in October
1982.
• Almost 68.84 percentage of the Indian population
resides in rural India.
• The 74 percentage stake is hold by government and
26 percentage by Suzuki japan.
Strategies in rural areas
“Ghar Ghar Mein Maruti”
• Overall car sale is 8.5 percentage in 2008-09 in compare with 2007-08 which was 3.5.
• They also promote the car finance in regional rural bank around 6,00,000
Villages.

“Mera Sapna, Meri Maruti”

• The company started offering additional cash discount of rupees 5,000 on the entry-level car.
• They also develop network with rural dealers, sales executives for marketing in villages and
developed contacts with 2.1 lakh panchayat representatives.
• The sale team is further supported by over 186 countries.

Video on wheel
• Maruti has been organizing road shows with films screening .
Exchange
• The car exchange business of Maruti grew by 19 percentage in 2014. The exchange scheme is
valid for any make and model of car.

Promotional strategies
• In, 2003 to attract customers Company has launched attractive campaigns such as Change Your
Life. Under which they have offered vehicle insurance for ₹1
• In, 2004 they introduced 2599 offers under which by paying an EMI of ₹2599 for seven years.
• They also introduce teachers scheme, under low interest rate.