MARUTI UDYOG LIMITED

MARUTI UDYOG LIMITED

Saurabh Jain Varun Chugh

Amit Mittal Kamal Gupta

Sunil Saini

OverviewOverview

Market Car Segments Maruti Suzuki Portfolio Competition

Market Car Segments Maruti Suzuki Portfolio Competition

Vehicles per ‘000 personVehicles per ‘000 person

Automotive Penetration

478

373 395

508

3 14 50

100

200

300

400

500

600

No

of

Ca

rs

Automotive Penetration

478

373 395

508

3 14 50

100

200

300

400

500

600

No

of

Ca

rs

Source: World Bank, Provided by GAIL India Ltd. (2001-02)

Market Size & GrowthMarket Size & Growth

Source: GAIL India Ltd.

Economic FactorsEconomic Factors

Customers buy on basis of income, aspiration levels, and lifestyles

Increasing disposable income in service sectors.

Easy availability of finance options.

Customers buy on basis of income, aspiration levels, and lifestyles

Increasing disposable income in service sectors.

Easy availability of finance options.

Easy Finance OptionsEasy Finance Options

76% of Maruti cars are financed

44% through Maruti Finance, 12 % through SBI and associate banks

In year 2006-07, it added Mahindra Finance, Magma Leasing , Cholamandalam and Axis Bank.

76% of Maruti cars are financed

44% through Maruti Finance, 12 % through SBI and associate banks

In year 2006-07, it added Mahindra Finance, Magma Leasing , Cholamandalam and Axis Bank.

Car SegmentationCar SegmentationSegment Price Range Cars

A < 3.0 lacs Maruti 800, Omni , Reva

B 3.0 -5.0 lacs Wagon R, Zen, Versa, Ambassdor, Fiat Palio, Esteem, Tata Indica, Indigo

C 5.0 -10.0 lacs Baleno, Elantra, Honda City, Lancer, Innova, Sx4

D 10.0 -15.0 lacs Octivia, Corolla, Civic

E 15.0 – 30.0 lacs Honda CRV, Maruti Grand Vitara, Honda Accord

http://www.surfindia.com/automobile/automobile-industry.html

Market segmentationMarket segmentation

The Journal of Business Perspective, Vol 10, No 1: Jan - Mar 2006

Segments A and B constitute around 80% of total passenger car sales

Major players in the market Major players in the market

The Journal of Business Perspective, Vol 10, No 1: Jan - Mar 2006

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Maruti’s MarketshareMaruti’s Marketshare

Se

gm

en

t A

Se

gm

en

t B

Se

gm

en

t C

0

25

50

75

100FY02 FY03Segment A:Maruti 800, Omni

Segment B:Zen, Alto, Wagon R

Segment C:Swift, Esteem, Baleno

Maruti Suzuki Product PortfolioMaruti Suzuki Product Portfolio

Maruti 800

Omni

Alto

WagonR

Swift

Zen

Gypsy

Esteem

Versa

SX4 

Grand Vitara

Maruti 800

Omni

Alto

WagonR

Swift

Zen

Gypsy

Esteem

Versa

SX4 

Grand Vitara

ExportsExports

PlacingPlacing

Sales network of 562 outlets in 372 towns and cities

2538 workshops in over 1200 towns and cities

Sales network of 562 outlets in 372 towns and cities

2538 workshops in over 1200 towns and cities

www.marutisuzuki.com

Maruti 800 : Change Your Life Maruti 800 : Change Your Life The Maruti 800, has gone beyond just a car,

it has actually changed the lives and lifestyles of countless people, by bringing the joy of motoring to millions across the length and breadth of the country

The Maruti 800, has gone beyond just a car, it has actually changed the lives and lifestyles of countless people, by bringing the joy of motoring to millions across the length and breadth of the country

Alto: Let’s goAlto: Let’s go

The alto is a great combination of economy , practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24-hour endurance record set on Aug 03, 2003 of covering 3082 kms in 24 hours at an average speed of 128kmph.

The alto is a great combination of economy , practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24-hour endurance record set on Aug 03, 2003 of covering 3082 kms in 24 hours at an average speed of 128kmph.

Omni: Fits allOmni: Fits all

The Omni is truly India’s original Multipurpose vehicle. Today it is available in 6 Avtars – 5 Seater, 8 Seater, Cargo, Ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the job.

The Omni is truly India’s original Multipurpose vehicle. Today it is available in 6 Avtars – 5 Seater, 8 Seater, Cargo, Ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhorse is easy on the pocket, yet tough on the job.

Zen Estilo: Shape Your WorldZen Estilo: Shape Your World

A Spanish expression for Style, the new Zen Estilo stands true to its name. Its aerodynamic body, unique bean shape, sparkling colors and snazzy lights will rev up your style quotient. An amazing blend of style and substance, its agile nature will leave you enthralled.

A Spanish expression for Style, the new Zen Estilo stands true to its name. Its aerodynamic body, unique bean shape, sparkling colors and snazzy lights will rev up your style quotient. An amazing blend of style and substance, its agile nature will leave you enthralled.

Wagon R: For the Smarter RaceWagon R: For the Smarter Race Drive with complete peace of mind. The word-

class safety features of the wagonR keep you safe and secure, always. Wearing new vibrant colors, the new wagonR is full of freshness and energy to keep you charged up and always to go.

Drive with complete peace of mind. The word-class safety features of the wagonR keep you safe and secure, always. Wearing new vibrant colors, the new wagonR is full of freshness and energy to keep you charged up and always to go.

PricingPricing Maruti is the industry leader and sets the

standards in pricing. Penetrative pricing policy to reach

masses 800 : Rs 2.2 lakh Alto : Rs 2.5 lakh Wagon-R : Rs 3.5 lakh Zen Estillo : Rs 3.3 lakh Omni : Rs : 2.5 lakh

Maruti is the industry leader and sets the standards in pricing.

Penetrative pricing policy to reach masses

800 : Rs 2.2 lakh Alto : Rs 2.5 lakh Wagon-R : Rs 3.5 lakh Zen Estillo : Rs 3.3 lakh Omni : Rs : 2.5 lakh

PromotionPromotion

Advertisements targeting different segments

Promotional offers through out the years

Psychographics is used : Wagon-R : Smarter people (executives) Omni : People who need to transport goods

Alto : Small car : small family Zen Estillo : Young trendy people

Advertisements targeting different segments

Promotional offers through out the years

Psychographics is used : Wagon-R : Smarter people (executives) Omni : People who need to transport goods

Alto : Small car : small family Zen Estillo : Young trendy people 21

The CompetitionThe Competition

HYUNDAI SANTRO

•

• TATA INDICA

CHEVY SPARK

HYUNDAI SANTRO

•

• TATA INDICA

CHEVY SPARK

Hyundai SantroHyundai Santro

+ Santro rated “Best Small Car” in JD Power Asia Pacific Initial Quality and APPEAL studies.

+ European styling , power-assisted brakes, advanced suspension system and uniquely responsive engine.

+ Celebrity endorsed (Shahrukh Khan and Preity Zinta).

+ Hyundai had a national network of 300 sales and service outlets.

- The spares are expensive than that of Maruti.

+ Santro rated “Best Small Car” in JD Power Asia Pacific Initial Quality and APPEAL studies.

+ European styling , power-assisted brakes, advanced suspension system and uniquely responsive engine.

+ Celebrity endorsed (Shahrukh Khan and Preity Zinta).

+ Hyundai had a national network of 300 sales and service outlets.

- The spares are expensive than that of Maruti.

Tata IndicaTata Indica+ Car built for Indians by Indians.

+ Ambassador’s internal dimension and Maruti 800’s price with option of diesel engine.

+ Has a sleek fascia with chrome lined grill, clear lens illumination, muscled flares, flexible seating and electronic instrumentation with tachometer.

+ Cheaper and home grown spares.

+ Has lowest running cost (around Rs. 2.06 /km)

+ Car built for Indians by Indians.

+ Ambassador’s internal dimension and Maruti 800’s price with option of diesel engine.

+ Has a sleek fascia with chrome lined grill, clear lens illumination, muscled flares, flexible seating and electronic instrumentation with tachometer.

+ Cheaper and home grown spares.

+ Has lowest running cost (around Rs. 2.06 /km)

Chevrolet SparkChevrolet Spark

+ General Motors rolled out its small car Chevrolet Spark in India as it takes on market leader Maruti Suzuki.

+ Rs 3.09 lakh (Ex-showroom Delhi) slightly lower than Maruti’s Zen Estillo base model. Improved cabin space.

+ General Motors rolled out its small car Chevrolet Spark in India as it takes on market leader Maruti Suzuki.

+ Rs 3.09 lakh (Ex-showroom Delhi) slightly lower than Maruti’s Zen Estillo base model. Improved cabin space.

25

Supply Chain Supply Chain

The joint initiatives taken by Maruti and its team of suppliers have generated over 29% cost reduction over three years for Maruti

Less than 20 per cent of a car is manufactured in-house. The rest is accounted for by 215 suppliers and hundreds of second and third tier of vendors who, in turn, supply to them.

The joint initiatives taken by Maruti and its team of suppliers have generated over 29% cost reduction over three years for Maruti

Less than 20 per cent of a car is manufactured in-house. The rest is accounted for by 215 suppliers and hundreds of second and third tier of vendors who, in turn, supply to them.

Thank YouThank You

27