Should

Maruti Invest
in E-Cars:
Group 8
•Anirban Das MBA07009

•Akash Bacchav MBA07021

•Daksh Malhotra MBA07032

•Harendra Potlia MBA07043

•Jagruti Borkar MBA07053

•Kartikeya Vaishnav MBA07063

Why Indian Government
wants to phase out fossil
fuels?
• Substantial increase in demand of
energy sources
• High Petroleum Costs
• Dangerous for environment
 • Buying Capacity of consumers
Why Maruti • Skeptical
is resultant • Charging Infrastructure and Battery
to forge in production
• Dependence on imported Lithium Battery
EV segment? • Breakdown in electric supply
Should Maruti enter the
market
 Competitor
• Mahindra and Mahindra:
Innovative technology superior and differentiated
Invested in R&D,
First Mover- Two e-cars Eto+ and E- Verito
• Tata Motors:
Not a Leader.
 Strategic Partnership with Volkswagon.
Yet to enter- Electric NANO and Tiago EV in concept stage
• Ashok Leyland:
Still in process of developing e-cars- Circuit Series Electric buses)
Key player in Indian Medium and Heavy Commercial Vehicle
Game Theory
• Key players- 
Maruti Suzuki- A  Tata Motors- B  Ashok Leyland- C 
• Market situation-
Demand not matching supply, cannot accommodate all players simultaneously 

The payoff for one player staying away alone- 1

The Payoff for staying away with one opponent is 2
The payoff for staying away with both opponent is 3
Entering with no opponent is 4
Entering with one opponent is 5
Entering with both opponent is 6

• Best outcome- 4, worst outcome- 6

One player’s act of entering will cause another player to enter. The effect of this would
be any other player entering thus moving the payoffs to either 6 or 5.
• Nash equilibrium point- All players stay away
• Conflicting situation-
Entry of one player will push the two other players that chose to stay away to enter
and enjoy the profits. While avoiding the adverse outcome of having all players in the
market. 
 • Partnership and Acquisitions
• Invest in R&D
• Wait for government policies
Mode of entry • Develop the Infrastructure
and Appropriate • Second Mover advantage

Time
 Creating and Expanding the
charging infrastructure

Strategic Free Public Parking, and offer

Recommendations free charging in initial stage

Battery and Parts Liability and

costs