Maruti Udyog in 2003

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Case Details:

Case Code : BSTA074
Case Length : 19 Pages
Period : 2003
Organization : Maruti Udyog Limited
Pub Date : 2003
Teaching Note :Not Available
Countries : India
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Our policy is to be present in most segments, but our focus will be on small cars. This country for a good number of years will be a small car market because five million two-wheelers are sold and only six lakh cars. You have got 35-40 million two-wheelers on the road. They have to upgrade.

- Jagdish Khattar, CEO, Maruti.

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Introduction

In early 2003, Maruti Udyog, a joint venture between Suzuki of Japan and the Indian government, dominated India's automobile market with a 54% market share.¹ With an annual production capacity of 500,000 cars, Maruti had the widest product range among Indian car manufacturers, with ten basic models and more than fifty variants. Three out of the top-five-selling car models in India (Maruti 800, Zen and Omni) were Maruti products. The company dominated the Indian small car market with a share of 100% in 'A' segment, 36% in 'B' segment, and 86% overall² (See Exhibit: VI).

The little 800cc car, the first and by far the most popular model produced by Maruti, had given a new dimension to the Indian car industry...

Excerpts >>

1] CMIE database, June 2003.

2] Business India, 26th May 2003.

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