Capstone Project 2021-23

Phase 1 Report
Sem II
Title of the Project:
To Study-Supply Chain in Automobile Industry

Name of Faculty Asst Prof-Gayatri Name of the Satyam Kumar

Guide: Kaple mam Student: Gyandhar Dubey
Roll no: 020530021001
Designation: Area coordination- Program: PGDM
Operation
Batch: Operation&SCM
Semester: 2nd

Institute for Technology and Management

Plot No. 25 / 26,
Institutional Area,
Sector – 4, Kharghar,
Navi Mumbai

1
 CERTIFICATE FROM THE FACULTY GUIDE

This is to certify that the Project Work titled To Study Supply Chain in
Automobile Industry is a bonafide work carried out by Mr. Satyam Kumar
Dubey Roll No 020530021001, a student of PGDM Program 2021– 2023 of
the Institute for Technology & Management, Kharghar, Navi Mumbai under
my supervision & guidance.

Signature of Guide:

Name of Guide:Asst Prof.Gayatri Kaple

Designation: Area coordination-Operation, ITM Kharghar

Date:

Place: Kharghar, Navi Mumbai

2
 ACKNOWLEDGEMENT

Execution of a project of this nature is impossible without active

support from the faculty guide and professors at the Institute. I
would like to express my sincere gratitude to my guide Prof.
Gayatri Kaple for his/ her guidance during the entire project
duration.
I also extend my sincere thanks to my family, relatives, and friends
for their support and for the direction shown to me from time to
time till the completion of the project.

Name of the Student……… Signature of the Student………

3
 TABLE OF CONTENTS

S No Name of the topic Page

No

1. Front Cover Page 1

2. Certificate from the faculty Guide 2

3. Acknowledgement 3

4. Table of Content 4

5. (Chapter 1) 5.1 An Overview of Steel Sector 5-9

5.2 Sectoral Growth Last Five years 10-11
5.3 Govt Policies/ Regulation of the Steel Sector 11-12
5.4 Government Initiatives 12
5.5 Overview of Maruti Suzuki- Company 13-20
5.6 Organizational structure, product services, manpower 21-22
5.7 SWOT Analysis, PESTEL Analysis, BCG Matrix 22-32
5.8 Maruti Suzuki Vs it’s Competitors 32-33
5.9 Literature Review 34-37
5.10 Objective of The Study 38

6. (Chapter II) 6.1 Area of The Study 38

6.2 Types of Research Used 38
Bibliography 39-40

4
 Supply Chain in Automobile industry.

An overview of Automobile Industry:

The Indian automobile industry, which is made up of automobile and parts
manufacturers, has grown steadily since the economic liberalization in the early
1990s. With the advent of the world's leading automobile companies, the
domestic sector has adopted supply chain best practices. This has improved
competitiveness and led to dramatic growth in exports. However, the Indian
automotive industry needs to operate in a unique environment that poses
additional challenges to the already complex automotive supply chain. Therefore,
supply chain practices in this sector need to be continually investigated from the
perspective of modern practitioners in order to identify key differentiators that
ultimately provide a competitive advantage. This paper seeks to understand the
current situation, complexity and challenges facing the Indian automotive sector.
Examine trends such as visibility and innovation, collaboration and supply
networks, and the evolution of leadership roles that influence supply chain
effectiveness. Strategies for addressing challenges are presented as a framework
for further research and analysis.

KEYWORDS
Supply Chain Management, automotive industry, Supply Chain Challenges,
Assembler-supplier synergy, India

Domestic Scenario
With 3.49 million units sold in the passenger and commercial vehicle categories
combined in 2020, India was the fifth-largest auto market. In 2019, it was the
seventh-largest commercial vehicle manufacturer. Due to a growing middle class
and a young population, the two-wheeler category dominates the market in terms
of volume. Furthermore, the increased interest of businesses in investigating rural
markets boosted the sector's expansion. India is a major auto exporter, with
excellent export growth prospects in the near future. In addition, many initiatives
by the Indian government and major vehicle manufacturers are expected to propel
India to the forefront of the global two-wheeler and four-wheeler markets by
2020.By 2026, the Indian automotive sector is anticipated to be worth $300
billion. Between FY16 and FY20, domestic automobile production climbed at a
2.36 percent compound annual growth rate (CAGR), with 26.36 million vehicles
5
produced in FY20. Between FY16 and FY20, domestic automotive sales climbed
at a 1.29 percent compound annual growth rate (CAGR), with 21.55 million
vehicles sold in FY20.The domestic Indian car market is dominated by two-
wheelers and passenger automobiles. Small and mid-sized cars account for the
majority of passenger car sales. In FY20, two-wheelers and passenger cars
accounted for 80.8 percent and 12.9 percent of the market share, respectively,
with over 20.1 million vehicles sold. The total production volume of passenger
vehicles, three wheelers, two wheelers, and quadricycles reached 2,125,304 units
in September 2021 (excluding BMW, Mercedes, Tata Motors, and Volvo Auto).

Competitors & Market Size

1. Tata Motors Ltd

• Revenue: Rs 296,917 Cr
• Employees: 82,797
• Promoter holding: 38.37 %
Tata Motors is one of the leading Automobile Companies in India and the world,
providing mobility solutions to over 175 countries. The portfolio includes a wide
range of cars, utility vehicles, trucks, and buses. The company is the largest
automobile company in the list Top 10 Automobile Companies in India based on
the Turnover

Market share

• Passenger Vehicles: 6.3%

• Commercial Vehicle: 45.1%
The Company has a strong global network of 134 subsidiaries, associate
companies and joint ventures, including the Jaguar Land Rover in the UK and the
Tata Daewoo in South Korea. TML offers automotive products, ranging from
sub-one-tonne to 49-tonne Gross Vehicle Weight (GVW) trucks, small, medium,
and large buses and coaches and passenger vehicles.

2. Maruti Suzuki India Ltd

• Revenue: Rs 83,281 Cr
• Employees: 33,180
• Promoter holding: 56.21 %

6
Market leader in the passenger vehicle segment in India. The Company
was established in 1981. A joint venture agreement was signed between the
Government of India and Suzuki Motor Corporation (SMC), Japan in 1982. The
Company became a subsidiary of SMC in 2002. Maruti is the Second Largest
Automobile Companies in India by the Revenue

Market share

• Passenger Vehicles: 53 %
In terms of production volume and sales, the Company is now SMC’s largest
subsidiary. SMC currently holds 56.21% of its equity stake. Maruti Suzuki largest
car company in India based on Market share. The Company has two state-of-the-
art manufacturing facilities located in Gurugram and Manesar in Haryana, with a
combined annual production capacity of ~1.58 million units per annum.

3. Mahindra & Mahindra Ltd

• Revenue: Rs 77,077 Cr
• Market Cap: Rs 70,725 Cr.
• Employees: 42,875
• Promoter holding:18.90 %
Mahindra & Mahindra Ltd., a mobility products and farm solutions provider, is
the flagship company of the Mahindra Group. It is one of the leading car
companies in India. Since assembling the first vehicle in 1947, The Company has
grown rapidly. It is the Third Largest Automobile Companies in India by Total
Sales.

Market share

• CV: 25.3%
• Passenger Vehicles: 7.4%
• Tractor: 40.2%.
• UV: 25%
• LCV : 44.5%
Today, The Company offers a wide range of products and solutions ranging
from SUVs to electric vehicles, pickups, commercial vehicles, tractors, two

7
wheelers, and construction equipment. It is one of the leading Indian automobile
companies.

4. Hero MotoCorp Ltd

World’s largest two-wheeler manufacturer in 2001, in terms of unit volume sales

in a calendar year, and has maintained the coveted title for the past 18 consecutive
years. With over 90 million satisfied customers across the globe, it continues to
champion socio-economic progress and empowerment through its range of
products and services.

• Revenue: Rs 32,871 Cr
• Employees: 8,551
• Promoter holding: 34.63 %
• Market share: 36.0%
It became the only Indian two-wheeler company to set up a manufacturing base
in Latin America when it started operations at its manufacturing facility in
Colombia in 2016. The company is a part of Hero group.Hero
MotoCorp currently has an annual combined production capacity of around 9
million units of two-wheelers. The is the fourth largest automobile company
among the Top 10 automobile manufacturing companies in India.

5. Bajaj Auto Ltd

Present in over 70 nations, Bajaj Auto is the world’s 3rd largest manufacturer of
motorcycles and the largest manufacturer of three-wheelers. Its footprint stretches
over a wide range of industries, spanning automobiles (two-wheelers
manufacturer and three-wheelers manufacturer). The company is a part of Bajaj
Group.

• Revenue: Rs 30,598 Cr
• Employees: 8,064
• Promoter holding:53.52 %
• Market share: 18.7%
Bajaj Auto is ranked as the world’s fourth-largest three and two-wheeler
manufacturer and the Bajaj brand is well-known across several countries in Latin
America, Africa, Middle East, South, and Southeast Asia. The company is fifth
in the list of Top 10 automobile manufacturing companies in India.Bajaj Auto
International Holdings BV is a 100% Netherlands based subsidiary of Bajaj Auto
8
Ltd. Over the years, through this subsidiary, Bajaj Auto has invested a total of
€198.1 million (H 1,219 crore) and holds approximately 48% stake in KTM AG
of Austria (KTM), the fastest-growing motorcycle brand in the world.

Global Scenario

Several automakers have started investing extensively in various parts of the

business in the last few months to keep up with the growing demand. According
to data given by the Department for Promotion of Industry and Internal Trade,
the industry attracted US$ 30.51 billion in FDI between April 2000 and June
2021, representing for 5.5 percent of overall FDI during the period (DPIIT).

• In November 2021, Skoda Auto announced plans to locally manufacture

electric cars in India. However, the firm may bring its first EV, the
Enyaq, through the CBU route, before committing to local
manufacturing.
• In October 2021, Tata Motors announced that private equity group TPG
along with ADQ of Abu Dhabi has agreed to invest Rs. 7,500 crore (US$
1 billion) in its EV division.
• In January 2021, Fiat Chrysler Automobiles (FCA) announced an
investment of US$ 250 million to expand its local product line-up in India.
• In January 2021, Tesla, the electric car maker, set up a R&D centre in
Bengaluru and registered its subsidiary as Tesla India Motors and Energy
Private Limited.

9
Sectorial growth in last five years:
Domestic automobiles production increased at 2.36% CAGR between FY16-20
with 26.36 million vehicles being manufactured in the country in FY20. Overall,
domestic automobiles sales increased at 1.29% CAGR between FY16-FY20 with
21.55 million vehicles being sold in FY20.

In October 2021, the total production volume of passenger vehicles (except for
BMW, Mercedes, Tata Motors & Volvo Auto), three wheelers, two wheelers and
quadricycles reached 2,214,745 units.
Two wheelers and passenger vehicles dominate the domestic Indian auto market.
Passenger car sales are dominated by small and mid-sized cars. Two wheelers
and passenger cars accounted for 80.8% and 12.9% market share, respectively,
accounting for a combined sale of over 20.1 million vehicles in FY20.

In July-September 2021 quarter, the luxury car market registered sales of 8,500
units.

Overall, automobile export reached 4.77 million vehicles in FY20, growing at a

CAGR of 6.94% during FY16-FY20. Two wheelers made up 73.9% of the
vehicles exported, followed by passenger vehicles at 14.2%, three wheelers at
10.5% and commercial vehicles at 1.3%.

Indian automobile exports stood at 1,419,430 units from April 2021 to June 2021
as compared to 436,500 units in April 2020 to June 2020.

10
Government Polices / Regulation for this sector:
For the Automotive Industry, There Is A PLI Scheme
The Union Cabinet authorised a Rs 26,058 crore production-linked incentive
(PLI) scheme in September to help India's domestic manufacturing of electric and
fuel cell vehicles, as well as drones. According to the government, the initiative
will bring in Rs 42,500 crore in new investment in the vehicle and auto
component industries over the next five years. The government has set out Rs
25,938 crore for the automobile industry and Rs 120 million for drones. Also see:
As the fuel price hike rally continues, electric vehicle registrations in Delhi
skyrocket.
Amendment to FAME II
In another step to boost the use of electric two-wheelers in India, the government
of India amended the current FAME-II (Faster Adoption and Manufacturing of
Electric Vehicles-II) scheme in June of this year. The government narrowed the
price difference between petrol-powered two-wheelers and electric two-wheelers
by boosting the subsidy rate for electric two-wheelers from Rs 10,000/kWh to Rs
15,000/kWh, as well as capping incentives at 40% of vehicle costs, rather than
20% previously. Also see Tesla visits the Prime Minister's Office, requesting a
reduction in import taxes on electric vehicles before entering the Indian market.
In addition, the government of India's procuring agency, Energy Efficiency
Services Ltd (EESL), will pool demand for 3 lakh electric three-wheelers from
numerous users.
Centre disposal policy Prime Minister Narendra Modi announced a de facto
vehicle dismantling policy at the Gujarat Investor Summit in August this year.
This policy aims to phase out improperly contaminated vehicles in an

11
environmentally friendly manner. Under the directive, the vehicle will be
scrapped not only because of its age, but also if it turns out to be unsuitable for
automated testing. The Private Car Disposal Directive is scheduled to come into
force in 2024. The directive is expected to give India's automotive sector a long-
awaited boost and bring an investment of around Rs. 10,000 by improving new
car sales.
Government Initiatives:
Changes to state EV regulations
The provincial government, along with the Center, is taking every step to promote
the faster adoption of electric vehicles in India. To promote the spread and spread
of battery-powered electric vehicles (BEVs), the governments of about 20 states
in India, including Delhi, Gujarat, Goa, Maharastra and Rajastan, have already
submitted draft or final drafts of state-level EV policies. doing. Policy goals at
the state level vary, but some common goals include solving air quality problems,
mitigating climate change, reducing reliance on imported oil, and promoting the
development of the electric vehicle industry. I have.

12
 Company-MARUTI SUZUKI

Introduction to Maruti Suzuki Ltd.

Maruti Suzuki India Co., Ltd. is a leading manufacturer of automobiles in India.
Born in 1983 with the mission of motorizing India, Marti was a joint venture
between the Government of India and Suzuki Motor Corporation of Japan. It
quickly grew into India's largest compact car maker and remained in that state
until 2004. The company started with Suzuki owning a small stake in the
company and Go I owning a large stake. At the time of this writing, GoI sold its
entire stake in the company and transferred control of the company to Suzuki
Motor Corporation. Today, Marti and its partners employ more than 75,000
people. There are two manufacturing facilities in Gurgaon and Manesar, south of
New Delhi.
History of Company.
1981 – Maruti Udyog Ltd

India was regaining the glory after independence. People started to look out for
ways to live an elegant life. But yet, no one was spending a lot on cars. Brands
like Premier and Hindustan Motors were trying hard to gain customers to which
they were a lot successful. But were they ready for the storm that was about to
come?

Government of India, especially, Sanjay Gandhi is to be credited with the

establishment of Maruti Udyog Limited in 1981.

13
1982 – Collaboration with Suzuki.

In October 1982, Maruti Udyog limited merged with the Japenese automobile
company, Suzuki. The same year, the company also set up a manufacturing unit
at Gurgaon, Haryana. With the JV between Maruti and Suzuki, the company
received the right to import 40,000 fully built Suzuki cars from Japan in the first
two years, after which also the company was planning to use about 33% of
indigenous products only.
1983 – Maruti 800
This is the car which flagged off the company’s dawn was the Maruti 800. It was an 800cc
engine powered 5-door hatchback made by Maruti Suzuki which instantly became a hit in the
market. 800 was so popular that if in the mid-1980s, someone was talking about Maruti, he
surely was talking about the 800. It became the acronym for the company. But Maruti 800 was
not the only car to be launched that year.

Every child’s fear, the kidnapping car of that era, Maruti Omni was also launched at that time
powered by the same engine as that of the 800.

14
1985 – The Off-roading King Launched

There’s no doubt that even without the mention of the car, you would have
guessed the name. Maruti Suzuki Gypsy was launched in 1985. A 4WD
offroading vehicle was launched and instantly became a hit, especially in the
offroading arena. It was based on the Suzuki Jimny and was powered by a 1.0-
litre engine.
1986 – Maruti Suzuki reaches a milestone
1,00,000th vehicle rolled out the factory of the company. Within 2 years, Maruti
Suzuki was dominating the market. The same year, the company also launched a
new generation of 800, which was the SS80 Alto hatchback known globally. In
1987, the company exported 500 cars to Hungary thus commencing the sales
outside India, via export.

1989 – India’s first sedan launched

15
Maruti 1000, launched in 1989, was India’s first sedan which was powered by a
1.0-litre engine. It became a huge success due to its off-roading capabilities,
though was not that popular as a family car.Then in the next few years, Maruti
Suzuki launched many cars. Here is the list of cars with the year they were
launched in.

• Maruti Suzuki Zen – 1993

• Maruti Suzuki Esteem – 1994
• Wagon R and Baleno Sedan – 1999
• Alto – 2001
By the year 1994, Maruti Suzuki had sold 1 million cars in India. Maruti also
opened a second plant which increased the annual capacity of the company from
1,00,000 to 2,00,000 units.

1998 – Company’s first diesel car

Zen D or the Zen Diesel was Maruti’s first diesel offering in India. It was powered
by a 1.5-litre diesel engine.

2004 – Alto overtakes 800

Maruti Suzuki Alto became the highest selling car in India overtaking 800 after
nearly two decades of ruling the arena. Alto stayed at the top for a straight 15
years after that, only to be dethroned by the Maruti Suzuki Dzire in 2019.

2007 – Maruti Suzuki SX4 launched

The premium looks and the stylish interiors made it an instant success story. SX4
had an amazing ride quality. It was powered by a 1.6-litre VVT DOHC petrol
16
engine which could churn out 104hp of power and 145Nm of torque. But with the
advent of diesel engines in the segment, SX4 started losing the monopoly in the
market. In 2011, Maruti Suzuki tried to revive the SX4 by introducing a 1.3-litre
DDis diesel engine which could produce 88hp of power and a torque of 200Nm.
But by the time SX4 got this oil burner, it was too late. The sedan was
discontinued in 2014. You might easily see one running on the roads at present.
2015 – NEXA

New Exclusive Automotive Experience or the NEXA platform was introduced

by the company to launch premium cars in India. The first car to be sold through
this channel was the S-Cross. Maruti Suzuki sells Baleno, XL-6, Ciaz and Ignis
currently through this channel. S-Cross petrol is to be launched soon. Introducing
a brand for premium cars was a wise choice as the company failed to attract
customers through the normal channel. Would the premium luxury cars been sold
as the normal ones, the company would have met the same fate as that of the
Kizashi and other premium cars.
2016 – Company’s first compact SUV
Maruti Suzuki’s first-ever compact SUV was unveiled at the Auto Expo 2016.
The car carried forward the name from the Grand Vitara and added a light wind
to it, thus Vitara Brezza.

17
Initially, it was offered 1.3-Litre D13A four-cylinder turbodiesel engine which
was capable of producing 89hp of power and a peak torque of 200Nm. The mill
is mated to a 5-speed manual gearbox. With the ARAI certified range of
24.3kmpl, Vitara Brezza became the best-in-segment car for the mileage. And,
this was enough for the buyers to select it over the rivals. The starting price of
₹6.99lakhs just acted as the fuel for skyrocketing sales of the SUV.

The SUV became a hit as there was no direct competition in the arena. It
recently was given a new facelift in 2020.

2020 – The BS6 Effect

With the BS6 emission norms taking place of the previous BS4 norms, the
company had to discontinue all the diesel variants across its offerings. Thus, all
the cars across the line-up are currently being offered with petrol engine options
only with CNG options too.

Sales growth history:

Maruti Suzuki has 3,598 sales outlets across 1,861 cities in India. The company
aims to increase its sales network to 4,000 outlets by 2020. It has 3,792 service
stations across 1,861 cities throughout India. Maruti's dealership network is larger
than that of enough known companies combined. Service is a major revenue
generator of the company. Most of the service stations are managed on franchise
basis, where Maruti Suzuki trains the local staff. Also, The Express Service
stations exist, sending across their repair man to the vehicle if it is away from a
normal service centre.

18
Maruti Suzuki India Limited posted total sales of 167,014 units in March 2021,
consisting of domestic sales (Passenger Vehicle and Light Commercial Vehicle)
of 149,518 units, sales to other OEMs of 5,899 units and exports of 11,597 units.
MSIL domestic sales in FY19-20 had fallen by 18% due to reasons that are well
known and in FY20-21 have been impacted due to COVID related factors.
Domestic Sales in March 2020 had dropped about 48% due to COVID related
disruptions. It will be seen that domestic sales in March 2021 have only recovered
to March 2019 levels.
For the full financial year 2020-21, the Company posted a total sale of 1,457,861
units, which is 6.7% lower than FY 2019-20. Total sales in the year include
domestic sales of 1,323,396 units, sales to other OEMs of 38,326 units and
exports of 96,139 units
Market shares, competitors market share:
1. Honda Motors
Honda Motor Company, Ltd. (Japanese: Hepburn: Honda Giken
Kōgyō KK, IPA: [honda] (commonly simply known as Honda) is a
Japanese public multinational conglomerate manufacturer of automobiles,
motorcycles, and power equipment, headquartered in Minato, Tokyo, Japan.
Honda has been the world's largest motorcycle manufacturer since 1959, reaching
a production of 400 million by the end of 2019, as well as the world's largest
manufacturer of internal combustion engines measured by volume, producing
more than 14 million internal combustion engines each year. Honda became the
second-largest Japanese automobile manufacturer in 2001. Honda was the eighth
largest automobile manufacturer in the world in 2015.
Honda was the first Japanese automobile manufacturer to release a dedicated
luxury brand, Acura, in 1986. Aside from their core automobile and motorcycle
businesses, Honda also manufactures garden equipment, marine engines,
personal watercraft and power generators, and other products. Since 1986, Honda
has been involved with artificial intelligence/robotics research and released
their ASIMO robot in 2000. They have also ventured into aerospace with the
establishment of GE Honda Aero Engines in 2004 and the Honda HA-420
HondaJet, which began production in 2012. Honda has two joint-ventures in
China: Dongfeng Honda and Guangqi Honda.

2.Toyota motor corporation

Toyota Motor Corporation (Japanese: Hepburn: Toyota Jidōsha

kabushikigaisha, English: commonly known as simply Toyota) is a
Japanese multinational automotive manufacturer headquartered in Toyota

19
City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on
August 28, 1937. Toyota is one of the largest automobile manufacturers in the
world, producing about 10 million vehicles per year.

The company was originally founded as a spinoff of Toyota Industries, a machine

maker started by Saki chi Toyoda, Kiichiro's father. Both companies are now part
of the Toyota Group, one of the largest conglomerates in the world. While still a
department of Toyota Industries, the company developed its first product,
the Type A engine in 1934 and its first passenger car in 1936, the Toyota AA.

3.Hyundai motors

Hyundai Motor Company, often abbreviated to Hyundai

Motors (Korean: Hyeondae Jadongcha) and commonly known as Hyundai is a
South Korean multinational automotive manufacturer headquartered in Seoul,
South Korea. Hyundai Motor Company was founded in 1967. Currently, the
company owns 33.88 percent of Kia Corporation, and also fully owns two
marques including its luxury cars subsidiary, Genesis Motor, and an electric
vehicle sub-brand, those three brands altogether comprise the Hyundai Motor
Group.
Hyundai operates the world's largest integrated automobile manufacturing facility
in Ulsan, South Korea which has an annual production capacity of 1.6 million
units. The company employs about 75,000 people worldwide. Hyundai vehicles
are sold in 193 countries through 5,000 dealerships and showrooms.

4.Tata motors

Part of the USD110 billion Tata group founded by Jamshedji Tata in 1868, Tata
Motors is among the world’s leading manufacturers of automobiles. We believe
in ‘Connecting aspirations’, by offering innovative mobility solutions that are in
line with customers' aspirations. We are India's largest automobile manufacturer,
and we continue to take the lead in shaping the Indian commercial vehicle
landscape, with the introduction of leading-edge powertrains and electric
solutions packaged for power performances and user comfort at the lowest life-
cycle costs. Our new passenger cars and utility vehicles are based on Impact
Design and offer a superior blend of performance, driveability and connectivity.

20
5.volkswagen

Volkswagen (German: [ˈfɔlksˌvaːɡn̩] shortened to VW [faʊˈveː] ) is a

German motor vehicle manufacturer headquartered in Wolfsburg, Lower
Saxony, Germany. Founded in 1937 by the German Labour Front, known for
their iconic Beetle, it is the flagship brand of the Volkswagen Group, the largest
car maker by worldwide sales in 2016 and 2017. The group's biggest market is in
China, which delivers 40% of its sales and profits. The German
term Volk translates to "people", thus Volkswagen translates to "people's car".

Organization Structure:

21
Total man power of Maruti:

Number of employees. 40,000 (2019) Parent: Suzuki Motor Corporation

(56.21%) others (43.79%) Website: www.marutisuzuki.com: Maruti Suzuki
India Limited, formerly known as Maruti Udyog Limited, is an automobile
manufacturer in India. It is a 56.21% owned subsidiary of the Japanese
automotive manufacturer Suzuki Motor Corporation. As of July 2018, it had a
market share of 53% of the Indian passenger car market. The company is
headquartered at New Delhi. History. Logo of Maruti Udyog.

SWOT Analysis Matrix

SWOT Analysis of Maruti Suzuki can show how a well-established company

uses its opportunities to ensure its growth. It can show how the company takes
advantage of its strengths to use the opportunities while working on its
weaknesses. SWOT Analysis of Maruti Suzuki will also reveal its expansion
plans.
To better understand the SWOT analysis of Maruti Suzuki, refer to the
infographic below:

22
Now first let’s begin with the strengths of the company from the SWOT analysis
of Maruti Suzuki.

Strength:

The strengths of a company are the unique qualities that provide it with an
advantage in acquiring more market share, attracting more customers, and
maximizing profitability. Maruti Suzuki’s strengths are as follows:
• Market Share: Maruti Suzuki has a large market share with a share value
of 45 percent which is comparatively more if compared to its competitors
and this is one of the biggest strengths of Maruti Suzuki.
• Number of Sales: Maruti Suzuki registered the highest number of
domestic sales in the previous fiscal year, with 9,66,447 units. This has
recently surpassed the national sales mark of 10 million.
• Brand Value: Maruti Suzuki has high brand recognition and a large
consumer base. Also earned a good reputation for selling second-hand
vehicles of good quality through its true value chain.
• Strong Advertising & Reliable Suppliers: Effective approaches of
advertising, good product range, largest dealers’ network to attract people.
It has a strong base of reliable suppliers of raw material thus enabling the
company to overcome any supply chain bottlenecks.
• Product Quality: Maruti Suzuki engine capacity is supreme which
provides more mileage as compared to its competitors, their cars require
less maintenance and service cost is the lowest in the market. These
advantages give Maruti Suzuki a complete edge over its competitors in
terms of capturing the market of the lower and middle class which
percentage is more as compared to the rich class.

Weaknesses:

Weaknesses are elements of a company or brand that can be strengthened. The

following are Maruti Suzuki’s flaws:
• Weak Interior Quality: Maruti Suzuki’s interior quality is weak in
comparison with the high-quality interior of Hyundai, Maruti Suzuki,
Volkswagen etc. Also, the build quality of Maruti Suzuki cars is a little bit
low compared to these competitors.

23
 • Government Intervention: Government intervenes because of having a
share in Maruti Suzuki as it’s owned by the government and a public
company. Strategic decisions are dependent upon government approvals.
• Penetration Inability: Maruti Suzuki’s one of biggest inabilities is not
being able to penetrate the world market. The company is only popular in
India and some of the Asian regions other than this Maruti Suzuki’s
presence in Europe and the North American market is not that fascinating.
• Weak Managerial & labour Relationship: The relationship between
management and labour unions is not good. Employee strikes, worker’s
wages strikes have declined the reputation of Maruti Suzuki in terms of
being the best working place.
• Diversification in the Workforce: The workforce at Maruti Suzuki
Motors is analyzed with mostly local workers, and low amounts of workers
from other ethnical backgrounds. Lack of diversification makes it difficult
for employees from different ethnical backgrounds to adapt at the
workplace, leading to loss of talent.

Opportunity:

Potential areas of attention for a corporation to enhance results, expand sales, and,
ultimately, profit are known as opportunities. Maruti Suzuki’s opportunities are
• LPG Version of Cost-Effective Hatchbacks: Maruti Suzuki is popular
among the taxi sector and most of the taxis are connected with LPG. A
recently positive move by Maruti Suzuki is that it introduced its LPG
version of Wagon R which is a smart move taken by the company.
• Collaborations: Maruti Suzuki can jointly work with big car
manufacturers to bring innovations in the market by improving relations.
Just like recently, Maruti Suzuki is working with Toyota on a project to
launch small electric SUVs in the market.
• Technological Developments: Technology succeeds with numerous
advantages among many departments. Operations can be automated to
diminish costs. Technology enables better data to be obtained from
customers and improves trading accomplishments.
• Immense Production Potential: Maruti Suzuki has immense potential in
foreign markets and it is a rapidly growing market for automobiles. It can

24
 tap into European and other untouched markets where growth potential is
even more.
• Transport Industry: The transportation industry has been thriving in
recent years and has significant growth potential in the future. This has
reduced transportation costs, which benefits Maruti Suzuki by lowering its
overall costs.

Threat:

Environmental variables that can damage a company’s growth are known as

threats. Maruti Suzuki’s threats include the following:
• Fall in Market Share: Maruti Suzuki has experienced a great fall in its
market share because of the higher increment in market share of other
brands, such as Figo, Ford, Volkswagen. Also, Maruti Suzuki registered a
sales drop in January 2022.
• Intense Competition: China intends to join the Indian car market which
can create immense competition. Also, Maruti Suzuki has other
competitors from global automotive brands.
• Controversies: Maruti Suzuki is facing certain controversies such as its
cars are failing accident tests and safety benchmarks which is one of the
most important aspects customers look into before purchasing any car.
• Costs and Expenses: Higher fuel costs including demonetization
expenses and economic recession has caused decreasing purchases by
customers.

Pastel Analysis:

Political Factors:

The political factors in the Maruti Suzuki PESTLE Analysis can be explained as
follows:

Political factors that affect the sale and revenue of automobile companies like
Maruti Suzuki are rules and regulations formed by the government. The policies
which are laid by the government for the automobile sector need to be followed
by Maruti Suzuki. Taxation and labour laws, affect the overall revenue of the

25
company if the taxes increase then the company has to increase its product price,
and there is also an increase in labour laws by the government. High skilled labour
finds it easy to get a job in the automobile sector due to these labour laws.
According to the target market, the company manufactures small cars so that it
can target economically low-income consumers. The company needs to abide by
the rules and regulations while exporting or importing its counterparts from the
international market.
Economic Factors:
Below are the economic factors in the PESTLE Analysis of Maruti Suzuki:
The economy of a country affects the sales and revenue of an automobile
company like Maruti Suzuki.
As the economy of India currently, is facing a downfall so the automobile sector
is facing an economic crisis. Maruti Suzuki is the leading automobile company
in India but due to the economic downfall, its sales decreased by 32.7 percent in
August 2019. An increase in interest and inflation rate will result in a negative
impact on the growth if the company. The oil price is a major factor in
determining the sale of the company, as the oil prices are rising people are not
willing to buy the cars and thus the sale decreases. The manufacturing sector has
grown by around 10 percent per annum in the last few years. But due to the
economic slowdown this year, the company has curtailed its manufacturing.

Social Factors:

Following are the social factors impacting Maruti Suzuki PESTLE Analysis:

Socially Maruti Suzuki has done a lot for the people, Maruti Suzuki believes in
serving enhanced customer requirements, and perceived social value. Maruti has
set up many welfare camps, took initiative for the education of the
underprivileged, has adopted energy-saving technologies, reduced water wastage,
taken care of road safety, etc. Maruti Suzuki has set up its driving schools to
assure every person learns the right approach and to minimize the risk of
accidents. Maruti has always fulfilled and delivered the needs of common people.
Due to the cricket world cup, IPL, etc, the country attracts tourism so there is a
great opportunity for a company like Maruti to increases its marketing and
business. As Maruti has a strong brand value it attracts people easily. To cater to
the needs of the youth, Maruti has also launched Maruti Genuine Accessories
which extends stereo systems, carpets, body covers, and many other car care
products for its huge customer base.

26
Technological Factors:
The technological factors in the PESTLE Analysis of Maruti Suzuki are
mentioned below:
The automobile sector always needs to be updated in technologies to consider
driving safety needs and innovations in the model. The company invests a lot in
research and development to improve engine features. Maruti Suzuki is involved
in the manufacturing of fuel-efficient and small car engines. For its highest selling
car Alto, it launched a CNG kit. The company applies next-generation KB series
engine in its new hatchback car A-star. The company developed the
LPG/CNG/Hybrid system for the MPI engine to use as the alternate fuel
technology.
The company has included a virtual design review to its Research and
development department to assure the virtual validation to reduce the cycle time
and development cost of manufacturing.

Legal Factors:

Following are the legal factors in the Maruti Suzuki PESTLE Analysis:
Maruti Suzuki has to follow the highest standards of corporate governance. All
the legal laws need to be followed by the company to take care of the safety of
the consumers. The company has evolved a legal compliance scheduling and
management software by which specific tasks are given to every individual. The
customers can contact any time for their queries to the secretarial and legal
department. Maruti Suzuki is involved in international trade, so it has to follow
the trade laws of every country involved. Increased level of regulations and
privatization of the automobile sector also affects the sale of Maruti Suzuki.
Environmental Factors:
In the Maruti Suzuki PESTLE Analysis, the environmental elements affecting its
business are as below:
The automobile industry follows international standards of emission and safety.
There is a growing concern about the pollution caused by automobiles. Maruti
Suzuki enables a continuous process of promoting recyclable and reusable car
parts. Maruti is also practicing the 3 R model - Reuse, Reduce, Recycle for a long
time.
Cars which are economical and eco-friendly are introduced by the company like
hybrid cars. In August 2010, the company took an initiative to introduce
environmentally friendly cars which are fitted with CNG option across the vehicle
segment which included Eco, Alto, Estilo, Wagon R, and SX4. Thus, Maruti

27
became the first-ever automobile company to introduce and manufacture CNG
fitted models of car.

Porter’s five force model:

Porter Five Forces model is heavily borrowed from the traditional field of micro
economics. The five forces that determine the industry structure of organization
in case name case study are –

1.Competitive Rivalry in the Market: Competition in the automotive industry

varies from country to country. Competition in the Japanese automobile industry
is fierce. Increasing demand for Japanese cars is also intensifying competition.
The world's most famous car manufacturers are based in Japan for technological
advances and advanced societies. Suzuki Motor's main competitors are Toyota,
Nissan and Honda. In 2020, Suzuki Motors generated $ 29.9 billion in revenue
and $ 8.1 billion in gross profit (Forbes, 2021). During the same period, Nissan
generated $ 74.1 billion in sales and $ 9.3 billion in gross profit (Forbes, 2021).
Toyota Motor is by far the largest automobile company in Japan. They reported
sales of $ 256.6 billion and earned $ 45.5 billion (Forbes, 2021). Honda forms a
dispatch team of four major automobile manufacturers. In 2020, Honda reported
revenues and sales of $ 25.7 billion and $ 124.1 billion, respectively (Forbes,
2021). From this, it can be inferred that the Japanese automobile market is
extremely competitive.

2.Threat of Substitutes: In the industry, alternative threats are moderate to high.

The biggest burden on the industry is the shift from internal combustion engines
to electric vehicles. Climate change has forced automakers to take action,
drawing worldwide attention to the negative environmental impact of internal
combustion engines. The transport sector accounts for 14% of CO2 emissions
(Hannappel, 2017). Electric vehicles are already on the market. The main
problem they face is the charging network. Ether is a lack of infrastructure to
charge the vehicle. Another issue is the availability of better batteries. The
government is supporting vehicles with low CO2 emissions to support the
required green transition. Therefore, the threat of alternatives remains moderate
to high.

3. The Threat of New Entrants: The threat of new entrants is considered high
when conditions are favorable for growth, access to financing, and a supportive
regulatory environment. The industry is very capital intensive and requires huge
capital to get started. Another caveat is access to technology. Companies need to
hire professionals to operate and manage their operations. The presence of
established operators also discourages new entrants. However, it has become
28
easier to raise funds because it is now possible to raise funds on favorable terms.
In addition, if a pioneering company wants to produce an electric vehicle, a huge
amount of regulatory support is available. This has led companies to join the
automotive industry. The Tokyo Metropolitan Government has announced that
by 2030, all vehicles in the city will be hybrid or electric vehicles (Statista, 2020).
Therefore, the threat from new entrants is moderate.

4. Bargaining Power of Buyers: Buyer power depends on the state of the

industry and the buyer's genetic factors. Buyers have a high bargaining power
when they are focused. There are more easily available alternatives and general
competition. The industry is very competitive and the market is very competitive.
Due to the crowded market, buyers have many choices, and the entry of electric
vehicle manufacturers into the market gives consumers more choices. In
addition, consumers are getting more informed about their purchases and making
more informed choices. Manufacturers have low switching costs. Low shift costs
affect the relationship between consumers and manufacturers (ElManStry, 2016).
The above factors of the findings have a strong purchasing power from medium
to medium.

5. Bargaining Power of Supplier: Suppliers bargaining power depends upon the

underlying factors affecting the supply chain. The underlying factors that
determine suppliers` power are the importance of suppliers for the business, the
nature of supplies and the value for the buyer`s supply chain. In the automotive
industry, suppliers have increased significance and therefore can exert high
bargaining power. Suppliers have concentrated in the last few years, and they act
as assemblers rather than suppliers only. There are only 20 mega suppliers
available for supplies in the auto industry. The contribution of car suppliers has
increased from 56% since 1985 to 83% now (Kallstrom, 2015). Therefore,
suppliers have medium to high bargaining power.

Business strategy of the company vs competitor’s strategy

Maruti Suzuki
Segmentation, targeting, positioning in the Marketing strategy of Maruti Suzuki
–
Having the wide range of models in almost every segment of
the automobile market. Maruti Suzuki offers 16 brands and 150 variants
spanning across all segments consisting of Maruti 800, Maruti Zen Estilo,
Maruti Omni, Maruti Alto, Maruti Versa, Maruti Gypsy, Maruti A Star, Maruti
Wagon R, Maruti Swift, Maruti SX4, Maruti Kizashi, Maruti Eeco, Maruti
Ertiga, Maruti Grand Vitara. Thus, serving the diverse range of
customers. Brand product strategy focuses on catering to the needs of almost all
the segments from the middle class to high class.

29
With cars in the economy segment, mid-range segment luxury and super
premium segment Target group for the brand includes anyone above 4 Lakh p.a.
salary, people looking to switch from 2-wheeler to 4-wheeler, millennials
employed as professionals and managers. The middle class, Upper middle class,
High class, and Affluent class the age bracket of 21-65 years comprises of its
target group.

MSI positions all its16 brands in almost as many ways to serve different wants
and desires of consumers such as:

Alto– Let’s go- Positioned as India’s most fuel-efficient car which can be
afforded by lower income groups as well.
Wagon R– Inspired Engineering- Positioned as a brand which goes well with
people who want to lead economic and interesting lifestyle, reflect confidence
and have the multifaceted personality.

Swift– You’re the fuel– Positioned as the car with style, modern looks, and young
attitude.

Swift Dzire– The heart car- Positioned as an entry-level sedan for the aspirational
class.

SX4– Men are Back– Positioned as the powerful car for men.

Ertiga– “A Feeling called LUV” – Life Utility Vehicle– Positioned as a compact

seven-seater, one which will have a small footprint and a tight turning radius.

Competitive advantage in the Marketing strategy of Maruti Suzuki –

With over 30 years of presence in the country, there’s a brand trust among the
customers. Also, with two manufacturing unit in the country, one in Gurugram
and Manesar gives the brand edge over its competitors.

Factors which set apart Maruti Suzuki from its competitors include

• The Quality Advantage

• Brand Trust- A Buying Experience Like No other
• Quality Service Across 1036 Cities
• The Low cost of Maintenance Advantage
• Lowest Cost of Ownership

30
 • Technological Advantage

• MSF continues its strong domination both in Indian market and in exports
as well with the company selling over 1.64 million vehicles to bring its
market share close to 50% in the domestic market and exporting 4-
wheelers to over 125 countries globally to become the largest passenger
cars exporter from India last year, dethroning Hyundai Motors India Ltd.
which now stands fourth after Volkswagen and General Motors.

• The company exported 57,300 units in the April-September period last

year with a growth of 6% from 54,008 unit a year ago. MSI has also not
only managed to sustain its huge sales numbers but has also increased its
market share both in the urban and rural market.

BCG Matrix in the Marketing strategy of Maruti Suzuki –

With most of the brands of MSI are popular among customers and are preferred
over the rivals in the same segment because of low maintenance cost thus Brands
like Celerio, Alto, Alto K10, Eeco, Vitara Brezza, Baleno, Ignis, S-Cross,
ErtigaThe brand continues to hold high market share in their segments and thus
feature as Stars for the company. While Swift, Swift Dzire and Wagon R have
been the Cash Cow for the company in their respective segment. While Ciaz as a
brand hasn’t been able to make a mark in Sedan segment and Gypsy along with
Omni have lost their market share over the years thus all three continues to a
question mark for the company. Some of the brands like Zen Estilo, Versa, SX4,
A-Star over the years started to appear in Dog segment and has thus been
discontinued by the company in the last couple of years.

31
Distribution strategy in the Marketing strategy of Maruti Suzuki –
With its two manufacturing units having a combined production capacity of
14,50,000 vehicles annually Maruti Suzuki has a strong dealer network as well to
complement with. Maruti Suzuki, in fact, has been one of the very first company
in the country to realize the importance of after-sales service in high involvement
product like cars.

The company has the largest distribution and after-sales service network
comprising of over 400 sales showrooms, 1900 Authorized Service Stations
spanning across over 1190 cities, 30 Express Service Stations on 30 National
Highways across 1,314 cities and over 600 dealer workshops which are
unparalleled in the country.

The company also has 280 Nexa showrooms exclusively for premium car
segment. To increase customer touch points in the rural parts of the country were
setting up of the complete dealership was very difficult company has opened
extension counters which are operated by some dealer in the city.

Brand equity in the Marketing strategy of Maruti Suzuki –

Maruti Suzuki has managed to break into global Top 10 brand chart for the auto
sector, where it stands at 9th most valuable auto brand in the world just ahead of
Volkswagen and behind Tesla. In addition to this Maruti Suzuki India is ranked
99th and 71st on Forbes World’s Most Innovative Companies list and Top
Regarded Companies list of 2018. The brand also features at 366 on Global 2000
companies of Forbes 2018.

Competitors:

Hyundai-

Marketing Strategy of Hyundai analyses the brand with the marketing mix
framework which covers the 4Ps (Product, Price, Place, Promotion). There are
several marketing strategies like product innovation, pricing approach, promotion
planning etc. These business strategies, based on Hyundai marketing mix, help
the brand succeed.

Toyota-

Toyota is the most leading Japanese automobile company. By creating more

innovative car design and spending billions of dollars in advertisement a year,
32
Toyota has appeared in the eyes of many auto consumers worldwide. By
producing high quality vehicles at affordable prices, Toyota has built its
reputation globally. Toyota has reduced their prices as compared to other
automobile makers. Toyota believes that the role of purchasing should be long
term at the lowest price and no compromise on the production of quality products.
Normally, companies do not want to cut their targeted return and they follow the
strategy which is formulated in to the cost + profit = selling price. But Toyota
takes a slightly different strategy which is formulated in to the price-cost=profit.
Strategic management has a direct impact on its business in all organizations.
That’s why Toyota has become leading company in auto industry because of the
attractive strategic management policy. Now, Toyota plans to build training
centers in different parts of the world, where they can easily train their new
workers and managers how to design new cars and assemble them. Toyota is
constructing more new factories. Although, it has already plants in 27 countries.
When Toyota enters in US, everyone believes that this company will not be able
to run a successful business. But, at present Toyota is leading in auto companies
worldwide because of its strategic management planning.

Honda-

5 Brilliant Strategies That Make Honda One of The World's Most Innovative
Companies.

• 1. Don't globalize, localize. Unlike Toyota and most other

multinationals in any industry, Honda is not a top-down company,
controlled by headquarters.
• 2. Embrace paradox.
• 3. Robots? Not so fast.
• 4. Put an engineer in the hot seat.
• 5. Focus on factory flexibility.

33
Literature Review:

1.Title of paper: Sustainable Supply Chain of Automobile Sector: A Literature

Review

Author: Ajay Serohi

Journal Name: Graduate School of Business, Stanford University, Palo Alto,

California, USA

Objective: Reflection provides a valuable foundation for building a professional

automotive supply chain, combining actively scattered research clauses with
suggestions for future research.

Analysis: Today, in economic conditions, the UK automotive industry still has

its own advantages. The global automotive industry is entering a period of radical
and revolutionary change as sales in favour of innovative vehicles continue to
sway and environmental regulations are tightening. Automotive production
maintained steady growth. In 2012, 2.5 million units were delivered. At the same
time, German car production fell 8.1% and Spain fell 16.6%. France lost another
12.3 percent. By 2013, the annual supply of British cars had reached 1.6 million
units. It has returned to levels well before the financial crisis. Alternatively, the
overall development from the supply chain to the expansion of the supply chain
may be carried out by different companies. As one of the largest and dominant
organizations in the world, the automotive industry can have a significant impact
on better social development. Other combinations have emerged in the field of
original supply chain management and the review department cannot fully cover
it. Research at the forefront of the automobile industry. To fill this gap, the study
focuses on sustainable management of the automotive supply chain around 2017.
Therefore, the examination was subjected to bias analysis and materials that are
convinced and their research content. According to functional modelling ICAM
definition (IDEF0), content analysis is classified into several important business
structures that are common methods of each enterprise structure. Ensure research
to ensure useful principles for the construction of automotive supply chains.

Conclusion: As the information from British car manufacturers and dealers

(SMMT) shows, due to the Brexit loophole, British car interests fell by about half
a year in 2018. The total speculation for the year was 588.6 million pounds. The
output of automobiles decreased by more than 9% year on year, and about 1.51
million vehicles were continuously delivered. This article examines the impact of
sustainability on EV manufacturers or EV buyers supply chains. In this article,
the highlights of our findings are that although the British government developed
34
an EV stimulus model for the scope of the organization (including EV
manufacturers and customers), but in this model, we were able to identify the lack
of EV retailers. In addition to that, if you apply for a maximum percentage of
salary increases, early and late grants, and conveyor technology, the chain itself.
The first thing to consider is EV.

2. Title of paper: Sustainable Supply Chain Management in the Automotive

Industry: A Process-Oriented Review

Author: S. Maryam Masoumi 1, Nima Kazemi 2 and Salwa Hanim Abdul-

Rashid 3

Journal Name: MDPI, Published: 19 July 2019

Objective: The study provides a practical guideline for designing a sustainable

automotive supply chain and culminates with the outlined research gaps and
recommendations for future research.

Analysis: An overall change from a traditional supply chain to a sustainable

supply chain has been implemented in various industries for many years. One of
the largest and most powerful automotive industries the world`s influential
industries can have a significant impact on the move towards a sustainable
economy society. Despite the growing literature in the field of sustainable supply
chain management There is no review that comprehensively summarizes the
current state of research. Automotive industry. To fill this gap, this paper outlines
sustainable supply chain management. Automotive industry literature published
between 1995 and 2017. With systematic review. Content analysis was performed
to collect the survey and analyse its content. Content analysis based on a set of
key business processes according to the Integrated Function Definition (IDEF0)
method. This is a structured approach to analysing business processes. This
research culminates in providing a working guide for designing sustainable
automotive supply chains and outlining research gaps and recommendations for
future research.

Conclusion: This study outlines the process orientation of research in the field of
autoSSCM. Using a structured and systematic approach, various publications
were collected to categorize and discuss the major issues addressed in the
autoSSCM literature. A content analysis framework was developed based on
IDEF0 to categorize papers, and research was divided into several major
processes in the industry. (2) Laws and standards. (3) SSCM process, (4) resource
/ mechanism. (5) Output / performance. Based on the results of examining various
aspects of the autoSSCM literature, a five-step procedure that can be used as a
35
guideline for the design of SSCs for automobiles was presented. Content analysis
identified some promising research opportunities that needed further
investigation. This verification paper uses a strict systematic survey method as
well as other review studies and some restrictions. The first limitation refers to
the search stage. Here we have limited search for items issued by Peer Rewed
journal and skip other academic resources. (D. H. Paper, Meeting Paper, Chapter
of Book). Add these overlooked resources to samples that may lead to additional
surveys that can provide additional survey results. Another limitation This
assessment is based on the process of the automotive industry and not on other
characteristics of the study (such as model characteristics). Obviously, another
content analysis approach to the same sample leads to another study that can
provide useful insights. This limit is reserved for future research.

3. Title of Paper: Supply chain management in Indian Automotive industry:

complexity, challenges and way ahead.
Author: Souresh Bhattacharya, Dr. D. Mukhopadhyay and Dr. Sunil Giri
Research Scholar, College of Management, SMVD University, Katra, J &
K, India Dean, Faculty of Management, SMVD University, Katra, J & K, India
Associate Professor, MDI, Murshidabad, West Bengal, India

Objective: This paper seeks to understand the present status, complexities and
challenges facing the Indian automobile sector. It examines trends such as
visibility and innovation, collaboration and supply networks and
evolving leadership roles impacting supply chain effectiveness. Strategies for
overcoming challenges are presented as also a framework for further study and
analysis.

Analysis: The Indian automotive industry, comprising vehicle and component

manufacturers, has grown steadily since the economic liberalization of the early
1990`s. The arrival of major global auto companies has galvanised the domestic
sector into adopting Supply Chain best practices. This has enhanced
competitiveness leading to a quantum growth in exports. However, the Indian
automotive industry has to operate in a unique environment further posing
challenges to the already complex automobile supply chain. Therefore, a need is
felt to continually study supply chain practices in this sector from a contemporary,
practitioner`s viewpoint in order to identify key factors of differentiation which
would ultimately provide competitive advantage.

Conclusion: Indian industry has not yet met the supply chain standards of
developed countries and has great potential for national level supply chain
integration. This paper highlights some future trends in the automotive industry

36
that require significant changes in supply chain practices in the automotive
supply chain. We also need to support the industry externally by supporting
government regulations, policies and infrastructure development. The industry
needs to meet futuristic and rigorous standards, focusing on the development of
green technologies such as hybrid vehicles, low emissions and fuel efficiency.
Increase R & D and effort in the area of cost control (fuel economy technology
in the development of Tata Nano), investment, especially in the field of
automobile parts manufacturing, and build the scale to increase exports
throughout the automobile value chain. The sustainable growth of India's
automobile industry will make a significant contribution to the country's GDP.
However, this requires the determination and commitment of everyone
involved, including governments, OEMs and suppliers. With no control over
external agencies or factors, it is imperative that automakers focus on improving
their supply chain practices and adapting to a dynamic and evolving business
environment. Continued academic to this important industry that provides a
comprehensive and meaningful theoretical framework and identifies specific
dimensions of goals that practitioners carry out in their ongoing quest to
improve competitiveness. Interest is also needed.

37
 Research Design:

Area of the study:To study is exclusively supply chain in automobile industry.

It is process of delivering the right product at right place, right price. To reach its
effectiveness and responsive to its goal to achieve its objectives.

Types of Research Used:

Exploratory Research: In this report, Exploratory type research is used. Because

it is qualitative in nature.

Secondary Data: Data collected by government agencies, organisational

documents, and the data that are basically collected for other research objectives.

1)Books, Magazines, and Newspapers

2)Reports

3)Publications by Renowned Organisations

4)Research Articles

5)Government Data

38
 Bibliography

Internet Websites:

1.https://airccse.org/journal/mvsc/papers/5214ijmvsc06.pdf

2.https://www.ibef.org/industry/india-automobiles

3.https://www.123helpme.com/essay/Introduction-to-Maruti-Suzuki-Ltd-
164432

4.https://gomechanic.in/blog/maruti-suzuki-the-history/

5.https://en.wikipedia.org/wiki/Maruti_Suzuki#Sales_and_service_network

6.https://en.wikipedia.org/wiki/Honda

7.https://en.wikipedia.org/wiki/Toyota

8.https://en.wikipedia.org/wiki/Hyundai_Motor_Company

9.https://finpedia.co/bin/Tata%20Motors%20Ltd/

10.https://en.wikipedia.org/wiki/Volkswagen_Group

11.https://iide.co/case-studies/swot-analysis-of-maruti-suzuki/

12.https://www.mbaskool.com/pestle-analysis/companies/17997-maruti-
suzuki.html

13.https://www.porteranalysis.com/porters-five-5-forces-suzuki-motor/

14.https://www.marketing91.com/marketing-strategy-of-maruti-suzuki/

15.https://www.researchgate.net/publication/349679573_Sustainable_Supply_C
hain_of_Automobile_Sector_A_Literature_Review

16.https://www.mdpi.com/2071-1050/11/14/3945/pdf

39
Reference:

1. B. S. Sahay (Institute of Management Technology, India), Vikram Sharma

(Krishna Institute of Engineering and Technology, India) and G. D. Sardana
(Institute of Management Technology, India)

2. Growing the Automotive Supply Chain: The Road Forward by Matthias

Hollweg (Author), Yung Tran (Author), Philip Davies (Author)

3.Toyota Supply Chain Management: A Strategic Approach to Toyota's

Renowned System by Ananth Iyer (Author), Sridhar Seshadri (Author), Roy
Vasher (Author)

40