Maruti Suzuki India

limited
PASSENGER VEHICLES
 CONTENTS
Introduction of Product
Concept of Utility and Diminishing Marginal Utility &
Consumer Equilibrium
Demand, Factors, Extension and Contraction, Increase and
Decrease, Elasticity of Demand
Supply, Factors, Extension and Contraction, Increase and
Decrease, Elasticity of Supply
Demand Forecasting ( Qualitative and Quantitative)
 Maruti Suzuki India Limited

2018,
2005, July
April Captured a
5 Millionth market
1982 Car Rolled share of 53%
Out in India
Started as a
joint venture
of importers
of cars
Journey so far
INTRODUCTION
Maruti Suzuki India Limited (MSIL) is the leader manufacturer and seller
of passenger vehicles in India. It had started as joint venture of
importers of cars and then transitioned from manufacturing parts to
manufacturing complete cars. Soon it has become the India’s favorite
car brand because of its reliability, cost effectiveness, good mileage and
easy to maintain quality. Maruti Suzuki had launched many car models
in passenger vehicles segment and most of them had turned out to be
successful. In 2015 Maruti Suzuki had launched NEXA, a new dealership
network for its premium cars. Currently Maruti Suzuki is offering
WagonR, Swift, Dzire, Alto, Celerio, Ciaz and Vitara Brezza in its
passenger vehicle segment.
Concept of Utility and Marginal
Utility
The term utility can be defined as the total satisfaction or usefulness derived to the
consumer from a product or service. Consumers always aims for maximum
satisfaction for the price they are paying for the product or service. Utility differs for
the different consumers as per their preferences and choices. Also utility differs for
the same consumer from time to time due to change in his or her desire. Quantifying
utility is impossible as satisfaction and usefulness is an abstract topic.

Marginal utility is the change in total utility from consuming one additional
unit of the good.
For example: The first car gives high utility but the second car gives
significantly lower utility.
Total and Marginal Utility
Law of Diminishing Marginal Utility
100
No. of Cars Total Utility Marginal 80
Utility

Utility (in utils)

1 50 50 60
2 70 20
40
3 80 10
4 80 0 20
5 70 -10
0
1 2 3 4 5
-20
Number of cars
Total Utility
Marginal Utility
Consumer Equilibrium on Indifference Curve

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