THE COMPETITORS:
Two categories of competitors can be distinguished. The first are what we call the direct competitors and the second are what we call the in-direct competitors.
Direct competitors:
• Maruti Suzuki – (Model 1-Maruti 800, model 2— Maruti Zen)
• Maruti Udyog is India’s largest automobile company. The company is a joint venture with Suzuki of Japan, and has written a runaway success story. When Maruti entered the Indian car market, it sought to provide high quality fuel—efficient, low—cost vehicles and total customer satisfaction. These objectives shaped the company’s policies and approach to quantity.
• The first cars rolled out from Maruti Udyog on 14th December 1983, marking the beginning of a revolution in the Indian automobile industry.
• The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade ending 1983. In 1993, this figure reached a number of 1,96,820. Maruti’s figures were a different story altogether. The company reached a total production of one million vehicles in March 1994,becoming the first Indian company to cross this milestone. They crossed the two million mark in 1997
• For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a Profit before tax of I US$ 244 million. During the year, Maruti produced over 3,50,000 vehicles, out of which 26,000 were exported. Maruti has made profit in every since inspection, and has been paying dividends for the last ten years.
• Through the years, Maruti has provided world-class contemporary Japanese technology, suitably adapted to Indian conditions arid Indian car users. They have also provided users with a range of ears to suit different needs. Maruti’s market share shows the response of customers. In 1997-98, their market share of vehicles was 83 per cent. Maruti has a 97 per cent share in the economy segment of the car market.
• With many international automobile majors setting up base in India, the company expects intense competition. And they welcome the transition from a sellers market to a buyer’s market. In this environment, only firms that have a strong supplier base and after—sales network will survive. MUL has its strength in 174 dealer outlets and 1210 authorized service centers across 471 cities.
• As for the future, Maruti has embarked on a drive that will keep them ahead of the completion. Recently, a Rs 4 billion expansion project was completed at the current site. This has the total production capacity to over 3,20, 000 x chides per annum.
Suzuki has agreed to further modernize the existing facilities and to augment capacity by 1,00,000 units in the year 1998-99
• The company’s total production will exceed 4,00,000 vehicles per year. And the total investment of Rs.18billion reflects the company’s will to smoothly ride into the next millennium
• Maruti 800 a hatchback car actually is 796cc.was introduced in dec83 was re-launched in a different shape and with new technology in April 86, Sep97 and Jan 98.
• Maruti800 is 95% indigenised.
• The company had developed an extensive network of after sales service centers compromising 123 dealers, 161 sales outlets (covering 93 cities), 194 dealer workshop and 868 Maruti authorized service stations besides 204 spare parts outlets including 26 stockiest (covering 421 cities in India). Maruti has exported over 1.9 lacs vehicles to more than 100 countries (till October 1998), 75% of this has been sent to Europe.
• Maruti launched the Zen, which was a small car at a high price than Maruti800 and having better quality. It was designed to tap the higher income group who were looking for a higher quality small car. It plugged the gap between Maruti 800 and Maruti Esteem.
• Maruti has mainly focused on the small car segment rightly identifying the latent need for a low price, efficient quality car. This segment is the largest of all segments and has the buying potential, since most of the people in this segment were salary earners; Maruti is the first company to come out with a car-financing scheme.
More than 50% of those who buy Maruti 800 are up graders from two wheelers and Zen has Ken positioned as a high quality car in the upper end of the same segment and together these ~ o dominate the small car market.
Two categories of competitors can be distinguished. The first are what we call the direct competitors and the second are what we call the in-direct competitors.
Direct competitors:
• Maruti Suzuki – (Model 1-Maruti 800, model 2— Maruti Zen)
• Maruti Udyog is India’s largest automobile company. The company is a joint venture with Suzuki of Japan, and has written a runaway success story. When Maruti entered the Indian car market, it sought to provide high quality fuel—efficient, low—cost vehicles and total customer satisfaction. These objectives shaped the company’s policies and approach to quantity.
• The first cars rolled out from Maruti Udyog on 14th December 1983, marking the beginning of a revolution in the Indian automobile industry.
• The Indian car market had stagnated at a volume of 30,000 or 40,000 cars a year for the decade ending 1983. In 1993, this figure reached a number of 1,96,820. Maruti’s figures were a different story altogether. The company reached a total production of one million vehicles in March 1994,becoming the first Indian company to cross this milestone. They crossed the two million mark in 1997
• For the year ended 1997-98, Maruti posted a turnover of US$ 2.1 billion and a Profit before tax of I US$ 244 million. During the year, Maruti produced over 3,50,000 vehicles, out of which 26,000 were exported. Maruti has made profit in every since inspection, and has been paying dividends for the last ten years.
• Through the years, Maruti has provided world-class contemporary Japanese technology, suitably adapted to Indian conditions arid Indian car users. They have also provided users with a range of ears to suit different needs. Maruti’s market share shows the response of customers. In 1997-98, their market share of vehicles was 83 per cent. Maruti has a 97 per cent share in the economy segment of the car market.
• With many international automobile majors setting up base in India, the company expects intense competition. And they welcome the transition from a sellers market to a buyer’s market. In this environment, only firms that have a strong supplier base and after—sales network will survive. MUL has its strength in 174 dealer outlets and 1210 authorized service centers across 471 cities.
• As for the future, Maruti has embarked on a drive that will keep them ahead of the completion. Recently, a Rs 4 billion expansion project was completed at the current site. This has the total production capacity to over 3,20, 000 x chides per annum.
Suzuki has agreed to further modernize the existing facilities and to augment capacity by 1,00,000 units in the year 1998-99
• The company’s total production will exceed 4,00,000 vehicles per year. And the total investment of Rs.18billion reflects the company’s will to smoothly ride into the next millennium
• Maruti 800 a hatchback car actually is 796cc.was introduced in dec83 was re-launched in a different shape and with new technology in April 86, Sep97 and Jan 98.
• Maruti800 is 95% indigenised.
• The company had developed an extensive network of after sales service centers compromising 123 dealers, 161 sales outlets (covering 93 cities), 194 dealer workshop and 868 Maruti authorized service stations besides 204 spare parts outlets including 26 stockiest (covering 421 cities in India). Maruti has exported over 1.9 lacs vehicles to more than 100 countries (till October 1998), 75% of this has been sent to Europe.
• Maruti launched the Zen, which was a small car at a high price than Maruti800 and having better quality. It was designed to tap the higher income group who were looking for a higher quality small car. It plugged the gap between Maruti 800 and Maruti Esteem.
• Maruti has mainly focused on the small car segment rightly identifying the latent need for a low price, efficient quality car. This segment is the largest of all segments and has the buying potential, since most of the people in this segment were salary earners; Maruti is the first company to come out with a car-financing scheme.
More than 50% of those who buy Maruti 800 are up graders from two wheelers and Zen has Ken positioned as a high quality car in the upper end of the same segment and together these ~ o dominate the small car market.