Evaluation of strategies of

Maruti Suzuki India LTD.

Prepared by:
Abhishek Tandon
Ankit Aneja
Gaurav Chauhan
Kartik Abbi
Megha Singh
Growth Trend of MSIL
 MARUTI’S current scenario
• MSIL is the largest car manufacturer in India.
• It currently holds 55% market in domestic car
market.
• Production capacity of 650000 vehicles per
year.
• Maruti enjoys highest level of customer
satisfaction above the all industry average.
• Second largest exporter of passenger vehicles
in India.
 Current strategies of MSIL
• Focus on small market segment to beat the stiff
competition.
• Develop capabilities & internal resources to
finance its expansion and growth.
• To stay away from ultra low cost segment.
• To make India an exclusive small car
manufacturing base to leverage frugal engineering.
• To establish R&D facility in India to produce cars
in India, starting from design till production.
 SWOT Analysis/Internal environment
STRENGTHS: WEAKNESSES:

3.Established distribution and 3.Lack of experience in foreign

after sales network. markets.
4.Cost leadership in the market
due to efficient value chain.
5.R & D facilities and Japanese
collaboration.
6.Pan India service network.
7.Strong brand image & loyalty.
OPPORTUNITIES: THREATS:
2.Increasing purchasing power of 2.Stiff competition from local &
rural India. foreign players.
3.Perspective huge market of 3.Rising customer’s expectations.
government employees’.
4.High export growth potential.
 PESTEL Analysis/External
POLITICAL: environment
ECONOMIC: SOCIAL:
2.Government 2.Stable economic 2.Lucrative market in
continuously slashing policies. rural India.
tax rates 3.Easy availability of 3.Rapid urbanization
3.Govt. has launched finance. and income levels.
Automotive mission 4.Economic incentives 4.Skilled labour costs
plan(AMP) by local state govt’s. amongst the lowest
4.Automatic approval 5.Lower duties & in world.
for FDI in automobile taxes.
sector. 6.Huge domestic
demand.
TECHNOLOGICAL: ECOLOGICAL: LEGAL:
2.Four lakh engineers 2.Indian automotive 2.Weighted tax
pass out every year. regulations are deduction up to 150%
3.Credible local closely aligned to on in-house R&D
suppliers of high world standards on activities.
quality components. emission & safety. 3.Relatively high
4.India emerging as a 3.Proximity to major import duties.
hub for auto export markets.
manufacturing and
research.
 Core competencies of MSIL
• Wide rage of models
• National presence.