Industry Analysis:

Automobile Industry in India

Presented By Group 4, A1:-
1. Ayush Som (1022)
2. Sonit Kumar Jena (1003)
3. Soumita Das (1038)
4. Suravi Mondal (1020)
5. Nishant Singla (1028)
6. N Abinash Choudhary (1027)
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.
Passenger Automobile Market Share: FY 2018-19
Maruti Gurgaon Plant

 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.
About the Company 40,000 Employees
working with the
company.
Key People

 R.C. Bhargava(Chairman)
Managing Director and CEO:
 Kenichi Ayukawa
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
Achievements of a company
 • Drop in purchasing
power of people,
caused by a
Why sale sustained rural
decreased ? distress.
• Demonetization
• Arrival of
millennials into
adulthood
5c’s of
Maruti
Suzuki
 SWOT ANALYSIS
STRENGTH
 Consistent Leadership – 50% market
share
 Strong Brand Value and
Loyal Customer Base
 MUL is the first automobile company
to start secondhand vehicle sales
through its True-value entity
Hyundai
WEAKNESS
 Low interior quality inside the
cars when compared to quality
players like Hyundai and other
new foreign players
like Volkswagen, Nissan etc.
 Changing customer expectations
 Government intervention due to
having share in MUL
Maruti Suzuki
 SWOT ANALYSIS
Opportunities Threats
 MUL can start R&D on electric cars  Competition - Intense
for a much better substitute of the competition from cheaper brands
fuel
 Surge of costs - Ever increasing
 Export capacity of the company is fuel prices
giving new hopes in American and
UK markets
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
 1. Threat of New Entrants 2. Threat of substitutes
Brand value - low Importance of substitutes-
Financial investment - low medium
Sales – low Cost rate-low

Conclusion:- Conclusion:-
Has less threats from new entrants.
Has medium threat from
substitutes

3. Bargaining Power of the customers

Quality of the product-medium
Competition-high
Differentiation product-medium
Conclusion:-
level of threat is normally low when compared with
other competitors in the market.
4. Bargaining power of supplier's

Price of suppliers- medium

Power of suppliers- low
Political issues- medium

Conclusion:-
less threat as suppliers usually try to keep their
customers happy

5. Competitive rivalry
Brand identity- high
Company growth- high
Cost structure- medium

Conclusion:-
Competitive rivalry among stores is high
 Continued government
focus on supporting the
industry
 Favorable
macroeconomic and
demographic trends
 The development of
India as a
manufacturing hub

Future of
the industry
JIMNY YET TO LAUNCHED IN INDIA
 EXPECTED PRICE LENGTH WIDTH
10 LAKHS 3645 MM 1645 MM

GAME
CHANGER IN
SUV WHLEEBASE PETROL ENGINE NO. OF
SEGMENT 2250 MM 1462 CC CYLINDER 4

TRANSMISSION
TYPE - MANUAL
Conclusion
Thank You