Key Decisions by Indian Union Government ||

Impacts
• The Union government of India, in 2013, unveiled the National Electric Mobility Mission Plan
2020 (NEMMP) with a vision to put 6-7 million new full range electric vehicles on the road
including an estimated 4-5 million two-wheelers. This was done with an aim to achieve national
energy security, mitigation of environmental impact and encourage domestic Manufacturing.
• In September 2016, The Union Ministry of Road Transport and Highways had notified that BS VI
emission standards will apply to all vehicles manufactured on or after April 1, 2020. Vehicles
conforming to BS IV standards manufactured before April 2020 will not be registered after 30th
June 202013, thereby notifying auto manufacturers to plan their production and inventories
accordingly.
• The government aims to develop India as a global manufacturing centre and an R&D hub.
• Under NATRiP, the Government of India is planning to set up R&D centres at a total cost of US$
388.5 million to enable the industry to be on par with global standards
• The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster
Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government
will also set up incubation centre for start-ups working in electric vehicles space.
• In February 2019, the Government of India approved the FAME-II scheme with a fund
requirement of Rs 10,000 crore (US$ 1.39 billion) for FY20-22.

Ujjwal Ranjan (MBA19155) 5

Maruti Suzuki || Details About The Company
Founded In: Incorporated as Maruti Udyog Limited in 1981 by the Government of India,
with the efforts of V. Krishnamurthy, only to merge with Japanese automobile company
Suzuki in October 1982.
Number of Employees: Maruti Suzuki currently has 40000 employees
Vision & Mission
• The leader in the Indian automobile industry
• Creating customer delight and shareholders’ wealth
• A pride of India
Operating Location
• Registered Office –New Delhi
• Three Manufacturing Plants – Gurgaon, Manesar, Gujarat R.C. Bhargava, Chairman
Basic Financial Details from P&L Statement
Balance sheet at 31st March 2019 shows the company’s Total assets at INR 629,318 million
and Total Equity stands at INR 461,415 million.
Revenue from Operations for the year ended March 31, 2019 is INR 860,203 million.
Profit for the period 2018-19 is INR 75,006 million
Company’s Operation : The Company is engaged in the business of manufacturing and
sale of passenger vehicles in India.
Product Line: Its product line consist of Baleno, Ciaz, S-Cross, Ignis, Dzire, Vitara Brezza,
Ertiga, Swift, Wagnor, Alto 800, Alto K10, Celerio, Eeco, Gypsy, and Super Carry. Kenichi Ayukawa,
Managing Director & CEO
Ujjwal Ranjan (MBA19155) 23
Maruti Suzuki || Recent News & Future Plans
• On 25 April 2019, Maruti Suzuki announced that it would phase out production of diesel cars by 1 April 2020,
when the Bharat Stage VI emission standards come into effect. The new standards would require a significant
investment from the company to upgrade its existing diesel engines to comply with the more stringent
emission standards. Chairman R.C. Bhargava stated, "We have taken this decision so that in 2022 we
are able to meet the Corporate Average Fuel Efficiency norms and higher share of CNG vehicles will
help us comply with the norms. I hope the union government's policies will help grow the market for
CNG vehicles." Diesel cars accounted for about 23% of Maruti Suzuki's annual sales.
• Maruti Suzuki India Limited on 20 August, 2019 announced that it has received enthusiastic response, from
its customers, for the BS6 range of vehicles. The BS6 models offered by the Company currently constitute
around 70% of the total petrol vehicles sold.
• Maruti domestic dealer sales in august declined significantly by 35.9% year-on-year to 94,728 units.
• Maruti Suzuki India Ltd Chairman RC Bhargava said on 26 August,2019 the company had not renewed the
contracts of 3,000 temporary employees, as the automaker battled rising inventory amid a slowdown in
demand.
• Maruti Suzuki India Limited on 21 January, 2019 launched a program - Mobility & Automobile Innovation
Lab (MAIL) to promote innovation in India for automobile and mobility space.
• India’s largest car maker Maruti Suzuki is hopeful of bouncing back to its "usual rate of growth" in 2021,
though the environment remained challenging amid transition to new regulations during the current financial
year.

Ujjwal Ranjan (MBA19155) 24

 Maruti Suzuki || Business Model & Strategic
Business Model Focus Areas
Focus Areas
• Product:
1. Offering relevant product and technology that India
• Extending product portfolio by bringing in aspirational,
needs by leveraging the unique ability of Suzuki
environment-friendly and safer products with support
Motor Corporation to design feature rich,
from Suzuki Motor Corporation
environment friendly products with world class
• Research and Development:
quality at an affordable price
• Capability enhancement for designing, developing and
2. Giving attention to details to scale localization,
testing of new models
value engineering through cost optimization
• Managing regulatory compliances with support from
3. Optimum resource utilization to increase the ability
Suzuki Motor Corporation
to offer aspirational products at an affordable price
• Marketing, Sales and Service:
4. Attracting more customers which leads to high
• Enhancing the focus on digital marketing and target
sales and volumes
marketing techniques
5. Better dealer viability for sales leads to sales and
• Use of data analytics for effective and efficient decision
service network expansion and use of multi
making
channel strategy
• Manufacturing
6. The operational excellence results in enhanced
• Pursuing Industry 4.0 to continuously improve the build
reach and customer experience
quality of products
7. Lifetime customers when all contribute to provide
• Promoting the 3R principle in manufacturing and
best ownership experience and higher lifetime
industrial waste management techniques
value
Ujjwal Ranjan (MBA19155) 25
 Maruti Suzuki || 4P & SWOT Analysis
SWOT ANALYSIS 4P ANALYSIS
Strengths: Product
• Largest passenger car company in India • Key features - products are made keeping the
• Strong brand value and strong presence common man in mind.
• Strong marketing through Nexa and high customer • Products are durable, quality after sales service and
satisfaction with all basic features.
 Weakness Place
• Inability to penetrate into the international market • Largest distribution & Service - 400 sales showrooms,
• Excessive dependence on Suzuki 600 dealer workshops, and 1900 Authorized Service
• Less market command over premium and SUV Stations
segment • For Rural India reach they opened extension counters.
• Lack of quality features and facilities in the car to Promotion
compete with foreign brands • Emphasizes on road safety and environment friendly
 Opportunities products.
• Developing hybrid cars and fuel efficient cars for the • Currently Varun Dhawan (Bollywood Actor) is the
future can be an opportunity for Maruti Suzuki brand ambassador of Maruti Suzuki.
 Threats Price
• The cost of raw materials are very high and the fuel • Prices has been set to target the lower middle class
costs are fluctuating. and middle class families
• Slowdown of economy • Penetration pricing
• Increasing competition from the foreign brands
Ujjwal Ranjan (MBA19155) 26
Maruti Suzuki || VRIO Analysis
Valuable

• Manufacturing Facility (Japanese Technology)

• Very strong distribution network

Rare

• National wide network of dealers

• Best customer service facility ( 30 Express service stations on 30
National Highways across India

Imitable

• Master in assembly line production

• Wide length and depth product range in low cost segment

Organistional Support

• Innovation, dedication, responsibility and ownership by the employees

Ujjwal Ranjan (MBA19155) 27

 References
References Used By: Member-5_Name (MBA19XXX)
• Company and business model and focus area | Integrated Report 2018-19 (Link:
https://www.marutisuzuki.com/corporate/investors/company-reports )
• Maruti Suzuki launches its Innovation Program(Link:
https://www.marutisuzuki.com/corporate/media/press-releases/2019/maruti-suzuki-launches-its-innovation-
program
)
• Maruti Suzuki goes greener with environment friendly BS6 compliant vehicles(Link:
https://www.marutisuzuki.com/corporate/media/press-releases/2019/maruti-suzuki-goes-greener-with-envir
onment-friendly-bs6-compliant-vehicles
)
• Auto industry is near bottom of downward cycle: Maruti Suzuki Chairman Bhargava(Link:
https://www.thehindu.com/business/Industry/auto-industry-is-near-bottom-of-downward-cycle-maruti-suzuk
i-chairman-bhargava/article29267803.ece
)
• Marketing mix of Maruti Suzuki(Link: https://www.marketing91.com/marketing-mix-of-maruti-suzuki/)
• PRODUCT STRATEGY OF MARUTI SUZUKI (Link:
https://www.academia.edu/6459104/PRODUCT_STRATEGY_OF_MARUTI_SUZUKI_7 )
• Maruti Suzuki SWOT Analysis, Competitors & USP (Link: