INDUSTRIAL ANALYSIS

Presented By:-
Appu
Rajeev
Shaurya
Omkar
Arnabh
 Automobile Industry Overview:

• 4th largest in the world with sales increasing 9.5 per cent
year-on-year (excluding two wheelers) in 2017.
• 7th largest manufacturer of commercial vehicles in 2018.
• Automobile exports grew 14.5 per cent during FY 2019.
• passenger vehicle sales in India crossed the 3.37 million.
• Foreign Direct Investment (FDI) worth US$ 21.38 billion
during the period April 2000 to March 2019
Automobile Market Share:
 About the Company

• Founded by the Government of India in 1981.

• Formerly known as Maruti Udyog Limited.
• Subsidiary of Suzuki Motor Corporation of Japan.
• India’s largest passenger car company.
• 53 percent of Indian passenger car market.
• Production output 15,68,603 units as per 2019.
• 40,000 Employees working with the company.
 Registered Office:

• Address: Plot No. 1, Nelson Mandela Road, Vasant Kunj

• City – New Delhi, State – Delhi
• Pincode:- 110070
• Tel No. – 011-46781000
• Fax no. – 011-46150275
• Email: - Investor@maruti.co.in
• Internet: - https://www.marutisuzuki.com/
 Key People

Chairman:
R.C. Bhargava(Chairman)

Managing Director and CEO:

Kenichi Ayukawa
Maruti Gurgaon Plant
 Revenue of 2018-19
Revenue of 5 Cars(In Lacs.)
4500000

4000000

3500000

3000000

2500000

Total
2000000

1500000

1000000

500000

0
Alto Brezza Dzire Swift Wagonr
Total 862949.5 4000000 1521944 700000 580885
 Units Sold of 2018-19
TOTAL UNITS SOLD
116177
WAGONR

100000
SWIFT

190243
Total
DZIRE

400000
BREZZA

246557
ALTO K10
 Gross Sales of 5 Years(In Cr.)

90000

80000

70000

60000

50000
Total
40000

30000

20000

10000

0
2015 2016 2017 2018 2019
Total 55133 65054 77266 81994 86020.3
 SWOT ANALYSIS
STRENGTH
• Maruti Suzuki is in a leadership
position with market share of 51%
• Maruti Suzuki has largest network of
Dealers and after sales service.
• Maruti Suzuki is the first company to
start sales of second hand cars in the
name of “True Value” in the country.
WEAKNESSS
• Low interior quality of cars as
compared to other foreign players.
• Younger generation started affinity
towards other foreign brands.
• Government intervention due to
having share in it.
• Company management and labor
union are not in good terms
• Maruti does not have a car in SUV
segment
 OPPORTUNITY THREATS
• Maruti Suzuki has launched LPG • Maruti Suzuki recently faced decline
version of Wagon R of market share from 53% to 51%.
• Maruti Suzuki can start R&D on • Launch of Hyundai’s H800 may result
electric vehicle in decline in the sales of Alto.
• Export capacity of company is giving
new hopes in American and UK
market
• New DZire from Maruti Suzuki will
capture the market share and create
the same magic as Esteem. \
PESTLE ANALYSIS
 PORTERS FIVE FORCES

• 1. Threat of new entrants - LOW

• 2. Threat of Substitutes - MEDIUM
• 3. Bargaining power of the customers – LOW
• 4. Bargaining power of the suppliers - LOW
• 5. Competitive Rivalry - HIGH
 Threat of New Entrants:
• Brand -> Low
Maruti Suzuki has been in the industry for a long time, it commands most of the
market share and has a strong brand name.
• Financial investment-> Low:-
There is less chance of any new entrant to invest as much as Maruti Suzuki and
perform well at the current market. Start up cost of new entrant is low.
• Sales-> Low:-
New entrants may sell their products at low prices but still Maruti Suzuki’s strong
brand name attracts customer
• Conclusion: Maruti Suzuki has no or less threats from new entrants, because
Maruti has established itself as a well known recognisible brand. It has a huge
brand value and gained a good market position than any other player in the
market.
 Threat of Substitutes

• Substitutes -Medium
There are many substitutes products but Maruti Suzuki products are efficient and
cost effective.
• Importance of substitutes -Medium
There are not many products that are very efficient so their importance goes down
• Cost rate-Low
There are few substitutes that are efficient or reputable, still Maruti Suzuki has a foot
hold in that position
• Conclusion: Though there are many Substitutes, Maruti Suzuki have gained a
niche market position for itself but the product efficency in Maruti Suzuki is a
concern.
 Bargaining power of the customers

• Quality of the product - Medium

When people look for high Quality product, price is also considered important.
• Competition -High
There are many Automobile Companies competing with Maruti Suzuki are so high in
competition
• Differentiation products - Medium
Customers always look for new and efficient products
• Conclusion: Since Maruti Suzuki offers good quality and cost effective products
with great services, customers usually don’t consider features of the product so
the level of threat is normally low when compared with other competitors in the
market.
 Bargaining power of the suppliers

• Price of suppliers -Medium

Prices of the product goes up as the demand increases.
• Power of suppliers -Low
Suppliers have to meet the customers needs to get orders in the future
• Political issues -Medium
Political issue are to be met by the suppliers
• Conclusion: There will be little or less threat as suppliers usually try to
keep their customers happy.
 Competitive Rivalry

• Brand identity -High

All Competitive companies such as TATA, Hyundai, Ford have good brand
reputation in the market
• Company growth -High
Tough competition from other companies affect the growth
• Cost structure -Medium
Most of the companies maintain their cost of profit accordingly to the other
competitors.
• Conclusion: There are products which may be considered as a competitor
to Maruti Suzuki so the competitive rivalry among stores is high
 LATEST CURRENT AFFAIRS OF MARUTI SUZUKI
1. Government inks MoU with Maruti Suzuki to support Skill India in automobile industry.
Kenichi Ayukawa first took over as MD and CEO of the company in March 2013 as Shinzo
Nakanishi had attained the age of retirement.
2. Maruti Suzuki introduced Suzuki Connect Application. It aimed at giving customers
access to services such as emergency alerts, vehicle tracking and car assistance.
3. Exports in September were down by 17.8 per cent at 7,188 units as against 8,740 units
in the corresponding month last year, the company said.
4. Maruti Suzuki Chairman R.C. Bhargava said that the overall demand for cars, festival
demand, in particular, has taken a hit due to rising oil prices and the new regulations on
insurance.
5. Maruti Suzuki India Limited announced a price reduction of select models by Rs 5,000/-
on September 25, 2019. Along with the above reduction, the company has also reduced
the Ex-Showroom price of its model i.e. Baleno RS by Rs 100,000/-.
6. Maruti SuzukiNSE -0.63 % sold 200,000 BS-VI compliant petrol vehicles in the first half
of the fiscal year.
JIMNY YET TO LAUNCHED IN INDIA
 GAME CHANGER IN SUV
SEGMENT
EXPECTED PRICE - 10 LAKHS
LENGTH - 3645 MM
WIDTH - 1645 MM
WHLEEBASE - 2250 MM
PETROL ENGINE -1462 CC
NO. OF CYLINDER -4
TRANSMISSION TYPE - MANUAL
 References:

• https://www.ibef.org/industry/india-automobiles.aspx
• https://www.marutisuzuki.com/
Thank You