About MARUTI SUZUKI

It is the largest car manufacturer in India and has been a dominant player in the Indian automotive
market for several decades. Maruti Suzuki is an Indian automotive manufacturer that is a subsidiary
the Japanese automaker Suzuki Motor Corporation. The company is the largest car manufacturer in
india and has been dominant player in indian automative market for several decades.

HISTORY

Maruti Suzuki was established in 1981 as a joint venture between the Indian government and Suzuki
Motor Corporation, with the aim of producing small cars for the Indian market. The first car, the
Maruti 800, was launched in 1983 and quickly became popular.

Market type

Market Suzuki operates in an oligopoly market, where a small number of large firms dominate the
industry. In the case of the Indian automotive market, a few major players, including Maruti Suzuki,
Hyundai, Tata Motors, Mahindra & Mahindra, and others, constitute a significant portion of the
market share. Oligopolistic markets are characterized by intense competition among a small number
of large firms, and these firms often consider the actions and reactions of their competitors when
making strategic decisions. In the automotive industry, companies compete not only on product
features and pricing but also on factors such as after-sales service, brand reputation, and
technological innovations.

Competitors:

Maruti Suzuki faces competition from various automotive manufacturers in the Indian market. Some
of its key competitors include:

1. Hyundai Motor India: Hyundai is a South Korean automaker that has a significant presence
in the Indian market. Models like the Hyundai Grand i10, Hyundai i20, and Hyundai Creta
compete with Maruti Suzuki's offerings.

2. Tata Motors: Tata Motors is an Indian multinational automotive manufacturing company. It

produces a range of passenger cars, including the Tata Tiago, Tata Nexon, and Tata Harrier,
which compete with Maruti Suzuki's vehicles.
 3. Mahindra & Mahindra: Mahindra is another major player in the Indian automotive market,
known for its SUVs and utility vehicles. Models like the Mahindra Scorpio and Mahindra
XUV500 are among the competitors for Maruti Suzuki.

4. Toyota Kirloskar Motor: Toyota, a Japanese automaker, has a presence in India through its
subsidiary Toyota Kirloskar Motor. Models like the Toyota Innova and Toyota Fortuner
compete in segments where Maruti Suzuki also has a presence.

5. Ford India: While Ford's market presence in India has diminished in recent years, certain
models like the Ford EcoSport continue to compete in segments where Maruti Suzuki
operates.

6. Honda Cars India: Honda offers a range of cars in India, including the Honda City, Honda
Amaze, and Honda WR-V, which compete with Maruti Suzuki's sedan and compact SUV
offerings.

7. Kia Motors India: Kia is a relatively newer entrant in the Indian market but has gained
popularity with models like the Kia Seltos and Kia Sonet, competing in the same segments as
some of Maruti Suzuki's vehicles.

8. Renault India: Renault has a presence in India with models like the Renault Kwid and
Renault Triber, which compete in the small car and compact MPV segments.

CURRENT MARKET SHARE

Indian automobile maker Maruti Suzuki India is looking to increase its market share to 50 per cent
overall , up from 45 per cent now, as it makes a big splash into the SUV market with the launch of its
Jimny and Fronx variants.
PRODUCT DIFFERENTIATION

Maruti Suzuki, as a prominent player in the Indian automotive market, uses several strategies for
product differentiation to cater to diverse consumer needs. Here are some aspects of product
differentiation used by Maruti Suzuki:

1. Wide Product Range: Maruti Suzuki offers a diverse range of vehicles, including hatchbacks,
sedans, SUVs, and compact cars. This extensive product portfolio allows the company to
cater to a broad spectrum of customers with varying preferences and requirements.

2. Fuel Efficiency: Maruti Suzuki has historically been known for producing fuel-efficient cars.
This emphasis on fuel efficiency addresses the concerns of cost-conscious consumers and
aligns with the demand for vehicles that are economical to run.

3. Affordability: Maruti Suzuki has positioned itself as a brand that provides affordable and
value-for-money vehicles. This strategy appeals to a large segment of the Indian market,
particularly first-time car buyers and budget-conscious consumers.

4. Technological Features: The company incorporates various technological features into its
vehicles, such as advanced safety features, infotainment systems, and connectivity options.
By staying up-to-date with technology trends, Maruti Suzuki aims to attract consumers
looking for modern and feature-rich vehicles.

5. After-Sales Service: Maruti Suzuki places significant emphasis on after-sales service and
maintenance. A strong network of service centers, availability of genuine spare parts, and
customer service initiatives contribute to a positive ownership experience, enhancing the
brand's reputation.

6. Brand Trust and Reliability: Maruti Suzuki has built a strong reputation for reliability and
trustworthiness over the years. The brand is often associated with quality manufacturing,
and this perception contributes to customer loyalty.

PRICING STRATEGY

Maruti Suzuki has traditionally adopted a competitive pricing strategy in the Indian market,
emphasizing affordability and value for money. Here are some key aspects of the pricing strategy
used by Maruti Suzuki:

1. Affordability: Maruti Suzuki is known for producing cars that cater to the mass market,
especially focusing on affordability. The company aims to offer vehicles at price points that
are accessible to a wide range of consumers, including first-time car buyers and those with
budget constraints.
 2. Cost Leadership: Maruti Suzuki follows a cost-effective production model, leveraging
economies of scale and efficient manufacturing processes. By controlling costs, the company
can pass on the benefits to customers in the form of competitive pricing.
3. Value-Based Pricing: While maintaining affordability, Maruti Suzuki also focuses on
providing value for money. The pricing of its vehicles is often aligned with the perceived
value and features offered, creating a positive perception among consumers.
4. Finance and EMI Options: Maruti Suzuki collaborates with financial institutions to offer
attractive financing and EMI (Equated Monthly Installment) options. This makes it easier for
customers to purchase vehicles by spreading the cost over a period, further enhancing
affordability.

PRICE DETERMINATION

The pricing of Maruti Suzuki vehicles is determined through a combination of factors that take into
account manufacturing costs, market conditions, competition, and the perceived value of the
product. Here are some key factors that influence the pricing of Maruti Suzuki cars:

1. Manufacturing Costs: The production cost of a vehicle, including material costs, labor costs,
and overhead expenses, plays a crucial role in determining its pricing. Maruti Suzuki, like any
other automaker, aims to optimize its manufacturing processes and achieve economies of
scale to keep costs down.

2. Competition: Maruti Suzuki closely monitors the pricing strategies of its competitors in the
Indian automotive market. The company may adjust its pricing to remain competitive within
each segment. This competitive positioning is essential for attracting customers in a market
with various choices.

3. Market Demand and Supply: Pricing is influenced by the demand and supply dynamics in
the market. If a particular model is in high demand and there's limited supply, it may
command a higher price. Conversely, if demand is low or there is excess supply, pricing
adjustments may be made accordingly.

4. Government Policies and Taxes: Government policies, taxes, and import duties can impact
the pricing of automobiles. Changes in tax rates, environmental regulations, and other policy
factors can influence the final cost of a vehicle.

5. Exchange Rates: For an automaker like Maruti Suzuki that may source components globally,
exchange rates can affect the cost of imported parts. Fluctuations in currency exchange rates
may impact the overall manufacturing cost and, consequently, the pricing of vehicles.

6. Economic Conditions: The overall economic conditions, including inflation rates and
consumer purchasing power, can influence pricing decisions. During economic downturns,
automakers may adjust pricing to stimulate demand.
7. Dealer Margins and Incentives: The pricing structure also considers the margins for
dealerships. Maruti Suzuki may offer various incentives and discounts to dealers, which can
affect the final on-road pricing for customers.

8. Lifecycle Stage: The stage of a vehicle's lifecycle (introduction, growth, maturity, or decline)
can also impact its pricing. New models may be priced competitively to gain market share,
while mature models may see pricing adjustments based on market conditions.