ACE INSTITUTE OF MANAGEMENT
Case review and summary of “Maruti Suzuki Pvt. Ltd.”
Submitted By: Sanjay Kumar Rouniyar
Submitted To: Ajanta Das Dutta 12/18/2012
Summary of the Case Maruti Suzuki Pvt. Ltd.:
The case discusses the strategies that “Maruti Suzuki India Ltd” that were devised and followed by the company in order maintain its market leadership and keep a strong grip on the major market share of India. After the liberalization of Indian economy in 1991, Indian passenger car market saw many players and few foreign players were also very interested seeing it a high potential market. Marukti Suzuki India Ltd. was one of the subsidiaries of Japan based Suzuki Motor Corporation. Initially Marulti started to lose market share as the competitors were too strong in the car market but soon Maruti was the market leader and currently they are leader by far in the passenger car segment in India.Being one of the three passenger car manufacturing companies, Maruti enjoyed a good market share in India. Suzuki, a leader in the international market in the automobile industry provided its expertise which helped Maruti Suzuki claim that market leader title. After the deregulation in 1991, the government of India allowed other foreign industries to establish its factories and promote the sales of their automobiles, according to the ‘New Industrial Policy’. India then was a strongly growing economy in the world and attracted many foreign investors. With a huge population of middle class people, wanting to grow higher in their status, ownership of a car had become a fashion. in came Hyundai Motor Corp., Ford India, General Motors India, Toyota, Volkswagen, Daewoo and Honda, all big names in the automobile industry. This posed a big threat to the market share that Maruti owned. Due to increased competition, the market share of Maruti declined from 83.1% to 60.8% between the years 1997-98 and 1999-2000. Hyundai came forth as the biggest...
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