INDEX

S.No. Title Page No.

1 Chapter 1 02-15
1.1 Introduction
1.2 Objective of the study
2 Chapter 2 16-38
2.1 Literature Review
3 Chapter 3 39-43
3. Research Methodology
4 Chapter 4 44-48
4. Data Interpretation
5 Chapter 5 49-54
5. Result and Discussion
6 Chapter 6 55-56
6. Conclusion
Chapter 7 57-58
7
7. Bibliography

1
 Chapter 1
INTRODUCTION

2
 1.1 INTRODUCTION

INDIAN AUTOMOBILE INDUSTRY

One of the major global automotive industries in the coming years. A number of domestic
companies produce automobiles in India and the growing presence of multinational
investment, too, has led to an increase in overall growth. Following the economic reforms of
1991 the Indian automotive industry has demonstrated sustained growth as a result of
increased competitiveness and relaxed restrictions. The monthly sales of passenger cars in
India exceed 100,000 units

In 1953, the government of India and the Indian private sector initiated manufacturing
processes to help develop the automobile industry, which had emerged by the 1940s in a
nascent form. Between 1970 to the economic liberalization of 1991, the automobile industry
continued to grow at a slow pace due to the many government restrictions. A number of
Indian manufactures appeared between 1970-1980. Japanese manufacturers entered the
Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign
firms initiated joint ventures with Indian companies.

Timeline of Indian automobile industry:

 1897 First Person to own a car in India - Mr. Foster of M/s Crompton Greaves
Company, Mumbai
 1901 First Indian to own a car in India - Jamshedji Tata
 1905 First Woman to drive a car in India - Mrs. Suzanne RD Tata
 1905 Fiat Motors
 1911 First Taxi in India
 1924 Formation of traffic police
 1928 Chevrolet Motors
 1942 Hindustan Motors
 1944 Premier Auto Limited
 1945 Tata Motors
 1947 Mahindra Motors
 1948 Ashok Motors
 1948 Standard Motors

3
  1974 Sipani Motors
 1981 Maruti Udyog
 1994 Rover Motors
 1994 Mercedes Benz
 1994 Opel
 1995 Ford Motors
 1995 Honda SIEL
 1995 Reva Electric Car Company
 1995 Daewoo Motors
 1996 Hyundai Motors
 1997 Toyota Kirloskar Motors
 1997 Fiat Motors (Re-Entry)
 1998 San Motors
 1998 Mitsubishi Motors
 2001 Skoda Auto
 2003 Chevrolet Motors (Re-Entry)

Following the economic reforms of 1991, the automobile section underwent delicensing and
opened up for 100 percent Foreign Direct Investment. A surge in economic growth rate and
purchasing power led to growth in the Indian automobile industry, which grew at a rate of
17% on an average since the economic reforms of 1991. The industry provided employment
to a total of 13.1 million people as of 2006-07, which includes direct and indirect
employment. The export sector grew at a rate of 30% per year during early 21st century.
However, the overall contribution of automobile industry in India to the world remains low as
of 2007. Increased presence of multiple automobile manufacturers has led to market
competitiveness and availability of options at competitive costs. India was one of the largest
manufacturers of tractors in the world in 2005-06, when it produced 2,93,000/- units. India is
also largely self-sufficient in tyre production, which it also exports to over 60 other countries.
India produced 65 million tyres in 2005-06.

4
Overview

Pran Tiku (2008)—on the subject of automobile industry in India—holds:

India’s car market has emerged as one of the fastest growing in the world. The number
of cars sold domestically is projected to double by 2010, and domestic production is
skyrocketing as foreign makers are setting up their own production plants in India.
The government’s 10-year plan aims to create a $145 billion auto industry by 2016.

According to McKinsey, the auto sector’s drive to lower costs will push outsourcing.
The auto sector could be worth $375 billion by 2015, up from $65 billion in 2002.
McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian
suppliers, 80 percent have the ISO 9000 certificate—the international standard for
quality management.

The production of automobiles in India is largely aimed at local consumers. Several

Indian manufacturers also export a diverse variety of auto components. Tiku (2008)
predicts a sale of 4.2 million four wheeler automobiles in India by 2015. Indian
passenger vehicle exports are also expected to rise from 170,000 in 2006 to 500,000 in
2010. Indian automobile companies

5
The following are some of the notable Indian automobile manufacturers:

Company Description Product

Ashok Leyland is a commercial

vehicle manufacturing company based
in Chennai, India. In 1948, Ashok
Motors was set up in what was then
Madras, for the assembly of Austin
Cars. The Company's name changed 18 seater to 82 seater double-decker
soon with equity participation by buses, 7.5 tonne to 49 tonne in
Ashok British Leyland and Ashok Leyland haulage vehicles, special application
Leyland commenced manufacture of vehicles, and diesel engines for
commercial vehicles in 1955. Ashok industrial, marine and genset
Leyland has six manufacturing plants: applications.
a plant at Ennore near Chennai, two
plants at Hosur (called Hosur I and
Hosur II, along with a press shop), and
the assembly plants at Alwar and
Bhandara.

Gas-cylinder carrier, copied from 3-

wheel Vidal & Sohn Tempo-Werke
(German) Hanseat; Matador, a version
Force Motors, formerly Bajaj Tempo, of Hanomag van and light-truck (1.5
Force Motors
is a Pune-based manufacturer of a tonne payload); Tempo-traveller,
Ltd
number of commercial vehicles Indian version of Daimler-Benz T-1
transporters; Man-Force Trucks,
licensed version of MAN AG trucks;
and UV's copied from Daimler-Benz.

6
 Hindustan Motors is one of the oldest
Indian car manufacturers in India. It is Trekker (discontinued), Land master
perhaps best known for the (discontinued), Contessa
Hindustan Ambassador which has remained (discontinued)—5th generation
Motors virtually unchanged for about 30 Vauxhall Victor, and the
years. It is still very popular as a taxi Ambassador—a version of the 1950s
and is widely used by Indian Morris Oxford.
politicians.

The automotive section of Mahindra

started off when a first batch of
seventy five Utility Vehicles (UVs) Armada (discontinued), Voyager
Mahindra &
was imported in CKD condition from (discontinued), Bolero. Commander,
Mahindra
Willys in 1947. It presently CL, MaXX, Scorpio, and Mahindra
Limited
manufactures Jeeps along with and Mahindra Classic.
agricultural equipment and light
trucks.

Maruti Suzuki (formerly Maruti

Udyog) was formed as a partnership
between the Government of India and
Suzuki of Japan. It brought India its
first "affordable" car, the Maruti 800.
800, Omni, Alto, Gypsy, Swift, SX4,
Maruti It is the biggest car manufacturer in
WagonR, Versa, Zen Estilo, Grand
Suzuki India and especially dominant in the
Vitara, and Swift Dzire.
small car sector. Then it brought out
the Maruti 1000, made by Maruti
Udyog was the first ever contemporary
sedan-type car launched in India. The
car (which Suzuki sold in other
countries as the Cultus/Swift/Geo

7
 Metro with a 1.3 L or 1.6 L engine)
was introduced in October, 1990. Sold
at Rs.3.81 lakh, it was back then the
costliest car released in the Indian
market. Then the company replaced it
with Esteem and from those days on a
line of Suzuki cars rolled out in the
Indian market.

Walchand Hirachand started Premier

Automobiles Ltd. (PAL) in 1942.
They assembled De Soto and
Premier Plymouth cars in 1946 in association Padmini (discontinued), 118 NE
Automobiles with Chrysler from the United States. (discontinued), and Premier Sigma.
They also manufactured the Premier
Padmini which was a version of the
Fiat 1100.

REVA Electric Car Co. is the producer

of the Reva (G-Wiz), an electric car
intended for use as a City car. More
REVAs have been produced than any
REVA REVA (G-Wiz).
other currently selling electric car and
sales are increasing. It is currently the
world's leading electric car
manufacturing company.

Tata Motors, formerly known as

TELCO, is the largest automobile Indica, Indigo, Indigo Marina, Safari,
Tata Motors manufacturer in India and commands Sumo, TL, and Tata Nano.
more than 70% of the commercial
vehicle market in India and has also

8
 increased its share of passenger
vehicle market. It was responsible for
developing India's first indigenous
vehicle, the Indica. It has proved to be
a success in the market after initial
quality problems. The company also
exports the car to many countries. Tata
owns major stake in Jaguar and Range
Rover.

In addition to Bangalore-based Reva, which currently is the only company actually selling
EVs today, electric cars made in India includes:

 Mahindra & Mahindra: Four-seat model by 2010.

 Tata: 2008-2009 (Also possibly an air car).
 Ajanta Group: clockmaker with plans for low-cost EV.
 Tara: Low-cost EV less than a Tata Nano.
 Hero Electric: 2013 Electric car.

9
Multi-national companies in India

Company Description Product

In January 2008, Audi started

production with the Audi A4 and A6 at
Audi A4, A6, A8, R8, Q7, and TT.
its factory in Aurangabad in the state
of Maharashtra.

BMW is a manufacturer of sport

sedans. BMW enjoys good brand
recognition in India. It has set up a
plant in Chennai, Tamil Nadu, to 3 Series, 5 Series, 6 Series, 7 Series, X3,
BMW
manufacture cars locally exclusively and X5.
for the local market with no plans for
export. It set up the plant to
circumvent high import duties.

The Fiat Uno was one of the first

products to be introduced. The Fiat
Palio was later introduced and was
Uno (discontinued), Palio, Palio Stile,
initially a success with its style and
Siena (discontinued), Siena Weekend
ride comfort coupled with solid build
but has slowly lost its sheen due to low (discontinued), Petra (discontinued),
Adventure, Fiat Bravo—sold in
Fiat fuel efficiency. Other models were
introduced such as the Palio Weekend collaboration with Tata Motors, Fiat
and Siena. Fiat tried re-branding of the 500—sold in collaboration with Tata
Motors, and Fiat Linea—sold in
Fiat Siena to Fiat Petra without much
collaboration with Tata Motors.
success. It roped in Sachin Tendulkar
as one of its brand ambassadors. Even
Michael Schumacher appeared in an ad
for the Palio. It has entered now into

10
 an alliance with Tata Motors to jointly
manufacture cars at its plant in
Ranjangaon, near Pune. The facility
will enable the two companies to make
about 200,000 cars per annum, and
also house an engine manufacturing
unit with a capacity of 250,000 units
per annum. The alliance will also see
Tata Motors use Fiat's diesel
technology—the 1.3 litre multijet
diesel engine—for its own vehicles.
The two companies also have a
distribution and service partnership.

Ford entered India in collaboration

Escort (discontinued), Ikon, Mondeo
Ford with Mahindra & Mahindra in 1995
(discontinued), Endeavour, Fusion, and
Motors with a plant in Tamil Nadu. The first
Fiesta.
model was the Escort.

Chevrolet has been a recognized brand

in India for several decades. The Tavera—rebadged Isuzu Panther,
model line-up consists of vehicles Forester (discontinued)—rebadged First
from cheaper sister brands like Generation Subaru Forester, Aveo—
Daewoo. General Motors initially second Generation Daewoo Kalos sedan,
General entered India with the Opel brand, but Aveo UV-A—first Generation Daewoo

Motors the Opel brand was dropped in March Kalos hatchback, Optra—rebadged
2006 because sales were at an all time Daewoo Lacetti, SRV—rebadged
low due to high prices and General Daewoo Lacetti, Spark—formerly
Motors wanted to focus more on their Daewoo Matiz in India, and Captiva—
Chevrolet brand. Since the Chevrolet recent launch in India.
brand was introduced in India, there
have been no new Opel products. GM's

11
 Indian operations were originally a JV
between Hindustan Motors and GM,
with most of GM's vehicles assembled
at Hindustan's plant in Halol, Gujarat.
Since then, GM India is now wholly
owned by GM.

Honda Siel Cars entered India in 1995.

It sells 4 cars in India—the City, Civic,
Accord, and CR-V. The manufacturing
plant of Honda Siel is located in
Honda Greater Noida. The model of Accord Accord, City, Civic, and CR-V.
sold in India is the 2003 model. The
most inexpensive car from Honda—
The City. The most expensive—The
Honda Accord V6.

Santo—second generation Hyundai

Atos, Accent—second generation
Hyundai Accent sedan, Sonata—sold as
When Hyundai entered India, the
the Sonata Embera, Verna—third
brand was virtually unknown in the
generation Hyundai Accent sedan,
Hyundai Indian market. But now Hyundai has
Getz—sold as the Getz Prime, Elantra—
good market because of its models like
3rd generation Hyundai Elantra sedan,
SANTRO, Accent etc.
Terracan (discontinued), Tucson, i10—
brand new small car, global launch in
India in 2007, and i20.

Renault- Logan (in partnership with Mahindra

-
Nissan and Mahindra).

12
 Mercedes-Benz has had to cater to the
ever gowning luxury segment in India,
especially after the arrival of the other
luxury German manufacturers. Now,
Mercedes-Benz cars are launched in C-Class, E-Class, S-Class, ML-Class,
Mercedes-
India soon after the worldwide launch SL-Class, CL-Class, SLK-Class, CLK-
Benz
and homologation as opposed to Class, GL-Class, and CLS-Class.
earlier, when Mercedes-Benz had
monopolized the niche Indian market.
In 2007 they launched the SLK-Class
and CLS-Class.

Lancer - Sixth Generation Mitsubishi

Lancer, Cedia—seventh generation
Mitsubishi Mitsubishi Lancer, Pajero—second
-
Motors generation Mitsubishi Pajero, Montero—
third generation Mitsubishi Pajero, and
Outlander.

Škoda Auto is an important car

manufacturer of India. It recently
launched the Laura; the Octavia still
Škoda Octavia, Superb, Laura, and Fabia.
continues to exist. Škoda also offers
the Superb in India but it's not too
popular.

Toyota Kirloskar sells 4 car models in Qualis (discontinued)—3rd generation

India. It stopped producing the Toyota Toyota Kijang, Camry—7th generation
Toyota Qualis to make way for the Toyota Toyota Camry (the latest generation
Innova, which was launched in India in Camry), Corolla—9th generation Toyota
2005. The most expensive car from Corolla, Innova, and Land Cruiser Prado

13
Toyota is the Land Cruiser Prado. VX—latest generation Toyota Land
Cruiser (PRADO).

14
 1.2 OBJECTIVE

1. To find out the market share of Maruti Suzuki

2. To study competitors of Maruti Suzuki
3. To study the marketing strategies of Maruti Suzuki
4. To study the strength, weakness, opportunity, and threats (swot -
- analysis) of Maruti Suzuki.
5. To study the customer satisfaction regarding Maruti Suzuki cars
6. To study the comparison of swift and swift dzire.

15
 Chapter 2
LITERATURE REVIEW

16
 Chapter 2

LITERATURE REVIEW

Maruti Udyog Limited

Maruti Udyog Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the
leader of the Indian car market for about two decades. Its manufacturing plant, located some
25 km south of New Delhi in Gurgaon, has an installed capacity of 3,50,000 units per annum,
with a capability to produce about half a million vehicles.

The company has a portfolio of 11 brands, including Maruti 800, Omni, premium small car
Zen, international brands Alto and WagonR, off-roader Gypsy, mid size Esteem, luxury car
Baleno, the MPV, Versa, Swift and Luxury SUV Grand Vitara XL7.

In recent years, Maruti has made major strides towards its goal of becoming Suzuki Motor
Corporation's R and D hub for Asia. It has introduced upgraded versions of WagonR, Zen
and Esteem, completely designed and styled in-house.
Maruti's contribution as the engine of growth of the Indian auto industry, indeed its impact on
the lifestyle and psyche of an entire generation of Indian middle class, is widely
acknowledged. Its emotional connect with the customer continues

Maruti tops customer satisfaction again for sixth year in a row according to the J.D. Power
Asia Pacific 2005 India Customer Satisfaction Index (CSI) Study.
The company has also ranked highest in India Sales Satisfaction Study.

The company's quality systems and practices have been rated as a "benchmark for the
automotive industry world-wide" by A V Belgium, global auditors for International
Organisation for Standardisation. In keeping with its leadership position, Maruti supports safe
driving and traffic management through mass media messages and a state-of-the art driving
training and research institute that it manages for the Delhi Government.

The company's service businesses including sale and purchase of pre owned cars
(TrueValue), lease and fleet management service for corporates (N2N), Maruti Insurance and
Maruti Finance are now fully operational. These initiatives, besides providing total mobility
solutions to customers in a convenient and transparent manner, have helped improve

17
economic viability of The company's dealerships. The company is listed on Bombay Stock
Exchange and National Stock Exchange. The objectives of MUL then were:

• Modernization of the Indian Automobile Industry.

• Production of fuel-efficient vehicles to conserve scarce resources.
• Production of large number of motor vehicles which was necessary for economic growth.
Production / R & D
Spread over a sprawling 297 acres with 3 fully-integrated production facilities, the Maruti
Udyog Plant has already rolled out over 4.3 million vehicles. In fact, on an average, two
vehicles roll out of the factory every minute. And it takes on an average, just 14 hours to
make a car. More importantly, with an incredible range of 11 models available in 50 variants,
there's a Maruti Suzuki made here to fit every car-buyer's budget. And dream.

OTHER PRODUCTS OF MARUTI SUZUKI

MODEL TYPE

Maruti 800 Small

 Maruti 800 STD BS III

 Maruti 800 AC BS III

Omni Small

 5 seater Maruti Omni

 8 seater Maruti Omni
 LPG Maruti Omni

Maruti Alto Small

 Alto
 Alto Lx
 Alto Lxi

Maruti Zen Mid-Size

18
  Maruti Zen Lx
 Maruti Zen Lxi
 Maruti Zen Vxi

Wagon R Mid-Size

 WagonR Lx
 WagonR Lxi
 WagonR Vxi
 WagonR Ax

Versa Mid-Size

 5 seater
 8 seater ( DX & DX2)

Maruti Esteem Mid-Size

 Maruti Esteem Lx
 Maruti Esteem Lxi
 Maruti Esteem Vxi

Baleno Mid-Size

 Baleno Sedan VXi

 Baleno Sedan LXi

19
 BIT ABOUT MARUTI UDYOG LTD.
COMPETITORS OF MARUTI UDYOG LTD.

20
21
COMPETITORS OF MARUTI SUZUKI SWIFT
1. HYUNDAI SANTRO 1.1 CRDI:
When Hyundai launch the Santro’s replacement in 2007, it will come with the surprise
addition of a 1.1 litre common rail diesel. Likely to be the cheapest car on sale powered by a
CRDi engine, this motor is the new Accent’s CRDi unit less one cylinder. Incredibly
powerful for its size, this 1,120cc engine produces a whopping 75bhp. Unconfirmed reports
talk of overall figures, city and highway combined, in excess of 20 kilometres a litre.

2. HYUNDAI GETZ 1.5 CRDI:

Not as attractive as the Swift, but more practical, with greater rear seat comfort and more
useable space, Hyundai’s diesel assault continues up the range with its large hatch. The Getz
will share its motors with the new Accent/ Verna. Hyundai sell the Getz powered by a
detuned version of the new Accent motor in the European continent, and it’s likely to be the
case here as well. Producing 87bhp as against 108bhp, using two versions of the same engine
will help Hyundai get a handle on costs. The diesel Getz also qualifies for excise sops,
meeting both length and engine capacity criteria.

3. TATA INDICA 1.3 MULTIJET:

By the time the larger new Indica is out, the Tata-Fiat tie-up will be going full throttle. Tata
will borrow engines from Fiat with, you guessed it, the 1.3 litre Multijet being the engine of
choice. Thoroughly localised, cheaply assembled and very capable, it will give the new
Indica/ Indigo family a huge leap forward as far as overall ability is concerned.

22
 MARKETING MIX

4P’s OF MARUTI SUZUKI SWIFT

 PRODUCT
 PRICE
 PROMOTION
 PLACE

PRODUCT

Features:
The all-new Maruti Suzuki Swift is excellent creation of the company it is fully loaded with
a range of exciting new features. It's a perfect complement to your evolved tastes and
lifestyle. And the best way to take your driving pleasure to a brand-new high.

European Styling. Japanese Engineering. Dream-Like Handling.

The new Swift is a generation different from Suzuki design. Styled with a clear sense of
muscularity, its one-and-a-half box, aggressive form makes for a look of stability, a sense that it
is packed with energy and ready to deliver a dynamic drive.
Its solid look is complemented by an equally rooted road presence and class-defining ride quality.
New chassis systems allow for the front suspension lower arms, steering, and gearbox and rear
engine mounting to be attached to a suspension frame. You get lower road noise and a greater
feeling of stability as you sail over our roads with feather-touch ease.
There are three variants of Maruti Suzuki Swift (Petrol):

23
 Petrol version
 Swift LXi
 Swift VXi
 Swift ZXi
Diesel version
 Swift LDi
 Swift VDi
 Swift ZDi

 SWIFT LXi:
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position), console box
(lower), cup holders (front 2, rear1), front door trim pockets, green tinted glass window,
halogen headlamps, headlamp levelling device, heater and manual Air conditioning, OVRM
(internally adjusted), rear fog lamps, wind screen wiper 2 speed plus 1 speed intermittent,
tailgate opener key type, trip meter (digital display), sun visors (both sides), brake assist ,
child lock (rear door), high mounted stop lamp, power steering, rear seat belts etc. are the
features available in this model.

 Swift VXi
Apart from the features found in other model, striking features of this model are black
coloured A & B pillars, 12v accessory socket in centre console, day and night rear view
mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat belt
warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints, fabric
accented door trims, central door locking (4 door), front and rear electronic windows, front
fog lamps, light off/ key reminder, manual air-conditioning, key not removed warning buzzer,
etc.

 Swift ZXi
Special features that have made this model more market friendly are rear window demister,
rear parcel shelf, rear window wiper, room lamp and luggage room, keyless entry, dual front
airbags, coloured outside door mirror cowls, coloured outside door handles, 12v accessory
socket in luggage room, driver seat height adjuster, central door locking (5 doors), seat belts
3-point ELR with shoulder adjusters, seat belts front 3-point ELR with pretensioning, tailgate
opener electromagnetic type etc.

24
  PRICE
Maruti is expected to take Hyundai heads on with the pricing of their upcoming Maruti
Suzuki Swift car. After launching cars for the masses since so many years, India’s largest
automobile manufacturer is now targeting the premium segment with their latest model from
the Suzuki’s stable. The analysts predict the pricing of this premium hatchback to start from
Rs. 4 lakh (petrol) but diesel version cost start from 5.5 lakh. Customer prefer diesel version
because of diesel is economic than petrol and average of swift diesel is also high compony
claims it 18/ltr.

This price range would practically rip apart Hyundai’s offering in Getz, which is priced at a
much higher tag of Rs. 4.5 lakh. Both the companies are known for their value based
offerings and Maruti with their extensive service network and brand reputation for making
reliable cars should get the customer’s nod over their competition.

The official pricing however is still not out. However, the company is said to be studying the
prospects of launching the base model at the 4-lakh price tag. There is another advantage in
doing so considering in the capital city of Delhi NCR road tax on the sub 4 lakh priced cars is
comparatively lower at 2%. Cars at a price higher than 4 lakh have to pay a 4% road tax.

25
Delhi NCR is one of the major targeted markets and it might get the benefit of this policy.
And if they indeed do take the chance of pricing Suzuki Swift at a considerable lower price
than Hyundai Getz, they would quite likely force the competition to rethink their strategy.
\

Non
Metallic
Variant Metallic
Price
Price

Swift LXi 416485 416485

Swift VXi 443924 443924

Swift VXi
464962 464962
(ABS)

 PROMOTION

When Maruti Udyog launched the Swift in May last year, the automotive industry was agog
with expectation that the car had the makings of a real winner. Three versions were launched
with the base variant carrying a retail tag of Rs 3.85 lakh, ex-showroom, New Delhi, and this
aggressive pricing only reinforced this feeling.

A year later, the company says the Swift is now the most-sold car in the first year of any car
in the history of the Indian automobile industry, having totted up sales of 61,200 units.

This is higher than what Maruti had initially planned to sell. The car recorded an estimated
4,000 bookings at the time of its launch, and the initial output of 200 units a day on a two-
shift basis, wasn’t enough to cope with demand.

In October, the company increased capacity for the Swift which helped cut down on the
waiting time from an estimated three months. The company currently makes over 300 units
every day.

26
The Swift has made a real impact in the small hatchback segment leaving its closet rival, the
Getz far behind. Between April 2005 and April 2006, Hyundai sold 16,872 units of the Getz.
Maruti is now gearing up for the diesel version of the Swift which is expected to debut by
October. The diesel version will benefit from the excise sops in this year’s buget, and it
remains to be seen how the models fares in the marketplace.

 PLACE

The car manufacturing company, called Maruti Suzuki Automobiles India Limited, is a joint
venture between Maruti Udyog and Suzuki Motor Corporation holding a 70 per cent and 30
per cent stake respectively.

The Rs.1,524.2 Crore plant has a capacity to roll out 1 lakh cars per year with a capacity to
scale up to 2.5 lakh units per annum. The car manufacturing plant will begin commercial
production by the end of 2006.

The engine and the transmission plant has owned by Suzuki Power train India Limited in
which Suzuki Motor Corporation would hold 51 per cent stake and Maruti Udyog holding the
balance.

The ultimate total plant capacity is three lakh diesel engines. However, the initial production
is 1 lakh diesel engines, 20,000 petrol engines and 1.4 lakh transmission assemblies.

SWOT ANALYSIS OF MARUTI UDYOG LTD.

 STRENGTHS
 WEAKNESSES
 OPPURTUNITIES
 THREATS

 STRENGTHS

27
The Quality Advantage

Maruti Suzuki owners experience fewer problems with their vehicles than any other
car manufacturer in India (J.D. Power IQS Study 2004). The Alto was chosen No.1
in the premium compact car segment and the Esteem in the entry level mid - size car
segment across 9 parameters.

The J.D. Power APEAL Study 2004 proclaimed the Wagon R no. 1 in the premium
compact car segment and the Esteem No.1 in the entry level mid - size car segment.
This study measures owner in terms of design, content, layout and performance of
vehicles across 8 parameters.

A Buying Experience like No Other

Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189
cities, with a workforce of over 6000 trained sales personnel to guide our customers
in finding the right car. Our high sales and customer care standards led us to achieve
the No.1 nameplate in the J.D. Power SSI Study 2004.

Quality Service across 1036 Cities

In the J.D. Power CSI Study 2004, Maruti Suzuki scored the highest across all 7
parameters: least problems experienced with vehicle serviced, highest service
quality, best in-service experience, best service delivery, best service advisor
experience, most user-friendly service and best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during
service. The J.D. Power CSI study 2004 also reveals that 97% of Maruti Suzuki
owners would probably recommend the same make of vehicle, while 90% owners
would probably repurchase the same make of vehicle.

28
WEAKNESSES

 OPPURTUNITIES

Leading Growth

As the market leader, MUL led the growth in the passenger car sector last year. Maruti's sales
went up 30% to 4,72,000/- units. This is the highest annual sale since the company began
operations 20 years ago. Maruti also gained market share, mainly on account of its
performance in the competitive A2 segment where it increased its share from 40.3% in 2002-
03 to 47.7% in 2003-04.

29
The record sales performance was reflected in the financials. Net Sales (excluding excise)
grew by 31% to Rs 93,456 million. Operating Profit Margin increased from 0.8 % in 2002-03
to 4.7 % in 2003-04. Profit After Tax jumped 2700 million to Rs 5421 million.

MUL is committed to motorising India. Towards this end, company's partnership with State
Bank of India and its Associate Banks took organised finance to small towns to enable
people to buy Maruti cars.

 THREATS

THREATS FROM COMPETITORS

Tata Motors Limited

In the 2004 fiscal year, Tata Motors generated revenues of $3,542.2 million (INR154,935.2
million). The company made a net profit of $185 million (INR8,103.4 million) in the 2004
fiscal year.

30
General Motors Corporation
For the fiscal year ended December 2004, GM generated revenues of $193,517 million, an
increase of 4.3% from the previous year. The company reported a net income of $2,805
million for fiscal 2004, down 26.6% from the previous year.

PRODUCT LIFE CYCLE

Introduction:

As a new product much time will be spent by the organisation to create awareness of it
presence amongst its target market. Profits are negative or low because of this reason.

Growth:

If consumers clearly feel that this product will benefit them in some ways and they accept it,
the organisation will see a period of rapid sales growth.

31
Maruti Suzuki stands on Growth Stage. As the sales of Maruti Suzuki Swift is high as
compare to Hyundai Getz then the consumer will buy Maruti Suzuki Swift by providing
them with great benefits in future and they will accept it.

Cash Cows:

High Market Share / Low Market Growth

Here, you’re well-established, so it’s easy to get attention and exploit new opportunities.
However it’s only worth expending a certain amount of effort, because the market isn’t
growing and your opportunities are limited.

Maruti Suzuki Swift stands on Cash Cows where they have established their brand in the
market. Of which they can exploit new opportunities. They have opportunities to expand their
product more in the market. As they have expanded globally in the global market.

32
 NEW MODEL OF SWIFT

Swift Dzire - is that the name of the Maruti Swift sedan which will replace the Esteem?

Maruti Suzuki Dzire, the replacement for old warhorse Maruti Esteem is on cards. Maruti is
expected to unveil the Suzuki Dzire at the Auto Expo in New Delhi.

Basically, the Suzuki Dzire will be the sedan version of the hugely successful Suzuki Swift.
Maruti has been planning for a while to bring in a 3-box version of the Swift, and the Dzire
may be the answer.

Though the Dzire will be essentially the Maruti Suzuki Swift in a sedan avatar, the company
is planning modifications in the headlamps, front grille and bumper design to make the car
not look like a Swift with a tail. Unlike the Suzuki Swift which is made in several countries,
Maruti Suzuki plans to build the Suzuki Dzire only in India. The Dzire may be exported to
several countries.

Maruti Suzuki has been phasing out older 3-box models and bringing in new global products
to replace them. The Maruti Suzuki Baleno was the first to go out, to be replaced by the
Maruti Suzuki SX4. The next in line seems to be the Maruti Esteem, one of the longest
selling cars from the Maruti stable. The car, which initially made a feeble appearance as the

33
Maruti 1000, went in for a complete overhaul and reappeared as the Maruti Esteem. With
minor cosmetic changes, Maruti has been successfully selling the sedan for 14 years now.

The Suzuki Dzire is likely to offer both petrol and diesel options, in 1.3 litre engines. The car
is likely to come with ABS, power steering, fog lamps and automatic climate control systems.

Maruti Suzuki has launched the Swift Dzire, its seventh model in three years. Priced in the
introductory range of Rs.4.49 lakh to Rs.6.7 lakh (ex-showroom, Delhi), the Maruti Suzuki
Swift Dzire has both diesel and petrol variants, powered by 1.3-litre engines. While the petrol
variant will cost between Rs.4.49 lakh and Rs.5.9 lakh, the diesel version will carry a price
tag of Rs.5.39-6.7 lakh.

Complete with an integrated stereo, steering-mounted audio controls, automatic climate

control, power windows and dual airbags, The Swift Dzire looks like a terrific buy - for now.
This is because the Maruti Suzuki Swift Dzire may prove to be costly for buyers who opt to
wait for a bit before buying the Swift Dzire. Rising input costs, especially that of steel and
petroleum products, are putting pressure on the margins and it is expected that Maruti Suzuki
might hike the price of the Swift Dzire.

The Dzire is an India-only model as far as we know. It appeals to the Indian preference for
seans over hatchbacks. At the current price, the Dzire will take on the various Tata Indigos,
the Mahindra Logan, Ford Fiesta - appropriately enough. After all, it is a car that would
replace the ageing Maruti Esteem.

34
There are many who have expressed reservations about the looks of the Swift Dzire though. It
looks a bit odd, definitely, from certain angles. Not that it is going to matter to an Indian
buyer.

Maruti Suzuki expects that with growing incomes and better lifestyles, many households
would want to upgrade to a sedan. Maruti maintains that the Swift DZire is an entry-level
sedan offering style, features and performance at an attractive price.

Meanwhile, Maruti Suzuki plans to launch its Maruti A-Star in October 2008. The Maruti A-
Star is expected to join Maruti Suzuki’s existing products WagonR and Zen Estilo. Maruti
also plans to export the A-Star model to the European market as well.
Showrooms of Maruti in Delhi;

 Allianz Automobiles:
Kamal Cinema Building, Safdarjung Enclave, New
Delhi
Telephone: 91-11-26104693, 26183785
E-Mail: aalianz@satyam.net.in

 Apra Auto India Private Limited:

K-804/2 Mahipalpur, Vasant Kunj Road, New Delhi.
Telephones: 91-11-42390000, 41009900
Fax: 91-11-52390088
E-Mail: apravk@apraauto.net

 Bagga Link Motors Private Limited:

395, Patparganj Industrial Area, New Delhi.
Telephones: 91-11-22169111, 22169555, and 22169222
Fax: 91-11-22141133
E-Mail: bim@del2.vsnl.net.in

 Competent Automobiles Company Limited:

48, Ring Road, Lajpat Nagar IV, New Delhi.
Telephone: 91-11-26917814 Fax: 91-11-26830306
E-Mail: cacllp@mnatraonline.com

35
 Competent Automobiles Company Limited:
14, Competent House, Middle Circle, Connaught Place, New Delhi. Telephones: 91-
11-23355285/86/87, 23354572/73/74, 23328009
E-Mail: competent@del6.vsnl.net.in

 Competent Automobiles Company Limited:

19, Shivaji Marg, New Delhi.
Telephones: 91-11-25925261, 25925329, and 25930611
E-Mail: competent@del6.vsnl.net.in

 Competent Automobiles Company Limited:

3, Gazipur, Delhi( East), Delhi.
Telephones: 91-11-22446551, 22217774, and 22446552
Fax: 91-11-22446553
E-Mail: competent@del6.vsnl.net.in

 D D Motors:
100, Mayapuri Phase II, New Delhi.
Telephone: 91-11-41845000, 28116502, and 28115403
Fax: 91-11-28113505
E-Mail: ddinfo@ddmotors.net

 DDMotors:
5, Wazirpur Industrial Area,
Near Wazirpur Bus Depot, New Delhi.
Telephone: 91-11-27153999, 41843000
Fax: 91-11-27151466
E-Mail: ddnorth@bod.net.in

 D D Motors Private Limited:

F 1/9, Okhla Industrial Area, Phase 1, New Delhi.
Telephone; 91-11-40523000
E-Mail: dd.south@ddmotors.net

 Fair Deal Cars Private Limited:

485-A, Jhilmil, Main G.T.Road, Shahdara, New Delhi

36
 Telephone: 91-11-22119626/27
Mobile: 9910894050
E-Mail: fairdealcars@rediffmail.com

 Gautam Motors Private Limited:

E-46/14, Okhla Industrial Area, Phase-II, Main Kalkaji Road, New Delhi Telephone:
91-11-41613879, 28613880, 28613879
Fax: 91-11-26921189
E-Mail: gautam_sh@eth.net

 Krish Automotors Private Limited:

Mam Ram Majesty Mall, Plot Number 2, Road Number 43, Guru Harkishan Marg,
Pitampura, New Delhi
Telephone: 91-11-32435050
E-Mail: krishautomotors@yahoo.co.iN

 Marketing Times Automobiles Private Limited:

A-1, Chirag Enclave, New Delhi
Telephone: 91-11-26292629
E-Mail: Maruti@marketing-times.com

 Marketing Times Automobiles Private Limited:

Vishal Cinema Complex, Vishal Enclave, Rajouri Garden, New Delhi
Telephone: 91-11-25112222
E-Mail: vishal@marketing-times.com

 Maruti Service Master:

F-39, Okhla Industrial Area, Phase-2, New Delhi
Telephone: 91-11-41612194, 41612195

 Pasco Automobiles:
A-1, Udyog Nagar, New Rohtak Road, Peeragarhi, New Delhi
Telephone: 91-11-25963535
E-Mail: pasco@vsnl.net

37
 Rana Motors Private Limited:
Rikhi House A 2/7, Safdarjung Enclave Opposite Bhikaji Cama Place, New Delhi.
Telephone: 91-11-26712222 (10 Lines)
Fax: 91-11-26711320
E-Mail: ranamotors@vsnl.in

 Rana Motors Private Limited:

Tis Hazari Metro Station, Boulevard Road, New Delhi.
Telephone: 91-11-23972222
E-mail: ranamotors@bol.net.in

 Rohan Motors Limited:

A-15, Mohan Co-operative Industrial Area, Mathura Road, Delhi
Telephone: 91-11-41679303/04, 41678695,
Fax: 91-11-51679302
E-Mail: rminewdelhi@touchtelindia.net.in

 Saya Automobiles Limited:

A-21-22, G.T.Karnal Road, Industrial Road, Industrial Area, New Delhi,
Telephone: 91-11- 27231955-57, 27231960, 27251402/03
Fax: 91-11-27216900
E-Mail: saya@ndb.vsnl.net.in

 Sikand & Company:

50, Janpath, New Delhi.
Telephones: 91-11-23320450, 23310364, 23326508
Fax: 91-11-23313765
E-Mail: hds@ndf.snl.net.in

 T R Sawhney Motors Private Limited:

33 & 34, Harichand Melaram Complex, East Gokulpur, Wazirabad Road, New Delhi.
Telephones: 91-11-22816777, 22816533, and 22816733
E-Mail: trsawhney@sawhney.net.in

 T R Sawhney Motors Private Limited:

B-5, Industrial Area Phase-1, Badli Opposite Sector-18,

38
Telephone: 91-11-27853094
E-Mail: trsawhney2@sify.com

39
 Chapter 3
RESEARCH
METHODOLOGY

40
 Chapter 3
Research Methodology
Research methodology is considered as the nerve of the project. Without a
proper well-organized research plan, it is impossible to complete the project and
reach to any conclusion. The project was based on the survey plan. The main
objective of survey was to collect appropriate data, which work as a base for
drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods but also
logic behind the methods used in the context of a research study and it explains
why a particular method has been used in the preference of the other methods

Research design:
Research design is important primarily because of the increased complexity in
the market as well as marketing approaches available to the researchers. In fact,
it is the key to the evolution of successful marketing strategies and
programmers. It is an important tool to study buyer’s behaviour, consumption
pattern, brand loyalty, and focus market changes. A research design specifies
the methods and procedures for conducting a particular study. According to
Kerlinger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to
control variance.

Type of Research is:

 Descriptive Research
The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is

41
interested in knowing the proportion of people in a given population who have
in particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the “who, what, when, where and how” of the subject under
investigation. There is a general feeling that descriptive studies are factual and
very simple. This is not necessarily true. Descriptive study can be complex,
demanding a high degree of scientific skill on part of the researcher.
Descriptive studies are well structured. An exploratory study needs to be
flexible in its approach, but a descriptive study in contrast tends to be rigid and
its approach cannot be changed every now and then. It is therefore necessary,
the researcher give sufficient thought to framing research.

Questions and deciding the types of data to be collected and the procedure to
be used in this purpose. Descriptive studies can be divided into two broad
categories: Cross Sectional and Longitudinal Sectional. A cross sectional study
is concerned with a sample of elements from a given population. Thus, it may
deal with household, dealers, retail stores, or other entities. Data on a number of
characteristics from sample elements are collected and analyzed. Cross sectional
studies are of two types: Field study and Survey. Although the distinction
between them is not clear- cut, there are some practical differences, which need
different techniques and skills. Field studies are ex-post-factor scientific
inquiries that aim at finding the relations and interrelations among variables in a
real setting. Such studies are done in live situations like communities, schools,
factories, and organizations.
Another type of cross sectional study is survey result, which has been taken by
me. A major strength of survey research is its wide scope. Detail information
can be obtained from a sample of large population .Besides; it is economical as
more information can be collected per unit of cost. In addition, it is obvious that
a sample survey needs less time than a census inquiry. Descriptive research

42
includes survey and fact finding enquiries of different kinds of the major
purpose. Descriptive research is description of the state of affairs, as it exists at
present. The main characteristic of this method is that the researcher has no
control over the variables; he can only report what has happened or what is
happening. The methods of research utilized in descriptive research are survey
methods of all kinds including comparative and co relational methods. The
reason for using such needs to be flexile in its approach, but a descriptive study
in contrast tends to be rigid and its approach cannot be changed ever now and
then.

Data collection tools:

After the research problem, we have to identify and select which type of data is to research.
At this stage; we have to organize a field survey to collect the data. One of the important
tools for conducting market research is the availability of necessary and useful data.
Primary data: For primary data collection, we have to plan the following four important
aspects.
 Sampling
 Research Instrument
 Secondary Data - The Company’s profile, journals and various literature studies are
important sources of secondary data.
 Data analysis and interpretation
1. Questionnaires
2. Pie chart and Bar chart

Questionnaires:
This is the most popular tool for the data collection. A questionnaire contains question that
the researcher wishes to ask his respondents which is always guided by the objective of the
survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a number of categories.
This diagram consists of a circle of divided into a number of sectors, which are proportional

43
to the values they represent. The total value is represented by the full create. The diagram bar
chart can make comparison among the various components or between a part and a whole of
data.

Bar chart:
This is another way of representing data graphically. As the name implies, it consist of a
number of whispered bar, which originate from a common base line and are equal widths.
The lengths of the bards are proportional to the value they represent.

LIMITATIONS:-
Every study has certain limitations. In my study, also there were certain limitations, which I
could not able to solve.

1. The research was conducted in a very small area.

2. My research work period witness the biggest ups and downs in product sale of only
one brand, which affected the perception of the customer. This was biggest drawback
of my study.
3. Time factor was also important for me.
4. I had only found the upper-middle class family to fill up the questionnaire, but
generally, an average middle class family was required for the study.
5. The sample size is also very small which represent my research on consumer
behaviour.

44
 Chapter 4
DATA INTERPRETATION

45
 Chapter 4

ANALYSIS

Q1. Have you ever purchased any car of Maruti Suzuki?

 Yes
 No
Sample size Yes No

60 40 20

60

50

40
Yes
30
No
20

10

Q.2 While purchasing car which feature influence you?

Sample Price Product Brand Service Durability
size Feature
100 25 20 30 10 15

 Price
 Product feature
15% Price
25%
 Brand 10% Product Feature

 Service Brand
Service
 Durability 20%
30%
Durability

46
Q3. From where you prefer buying a second hand car?
 Through advertisement
 Dealers
 Showroom
Sample size THROUGH 40
ADVERTISEMENT

100 DEALERS 40
SHOWROOMS 20

40
35
30
25 THROUGH ADVERTISEMENT
20 DEALERS
15 SHOWROOMS
10
5
0

47
Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons

Sample Attractive servi Brand Service Durability

size price
100 25 20 30 10 15
 Attractive Price
 Service
 Demonstrations 30% Attractive Price
Service
 Offers
55% Demonstration
5%
Offers
10%

Q.5.Which Car of Maruti of do you have?

 SWIFT

 SWIFT DZIRE

 ESTEEM

 MARUTI800

 ALTO

SAMPLE SWIFT DZIRE ESTEEM MARUTI ALTO

SIZE 800

100 21 7 5 45 22

48
 45
40
35
SWIFT
30
DZIRE
25
ESTEEM
20
MARUTI800
15
10 ALTO
5
0

Q.6. How frequently you change your cars?

SAMPLE 1-3 3-5 YEAR 5-10 YEAR MORE THAN
SIZE 10 YEAR
YEAR

100 15 35 45 5

 1-3 years
1-3 years

 3-5 years 5% 15%

3-5 years

 5-10 years 45%

35%
5-10 years

More than 10
 More than 10 years years

49
Q.7. Which bank do u prefer for financing the car?
SAMPLE ICICI HDFC SBI AXIS PNB
SIZE BANK

100 25 23 22 20 10

 HDFC

 ICICI

 AXIS BANK

 PUNJAB NATIONAL BANK

STATE BANK OF INDIA

25

20
ICICI
15 HDFC
SBI
10 AXIS
PNB
5

50
 Chapter 5
RESULT AND DISCUSSION

51
 Chapter 5
Result and Discussion

a) Maruti should improve it’s after sale service because its hits badly
car market share.

b) More detailed customaries service is to be provided.

c) Show room demonstration should be given at frequent time interval
and feed back should be considered positively.
d) The company should look into the matter of person hiring for in
showroom demonstration. A big showroom should have at least 5
such kind of person.
e) As there is a bottle neck competition between Hyundai and Maruti,
it is necessary to take measure steps to overcome the area of
downfall in Maruti with respect to Hyundai.
f) The marketing managers should make better relations with dealers
and reputation of the company.
g) Customer considers quality as their first preference, so the
company should give more stress on this.
h) The product is well aware and it is on top of mind of customer. So
company should always improve services and update their
technology.

52
 Chapter 6
CONCLUSION

53
 Chapter 6
Conclusion

Maruti should improve it’s after sale service because its hits badly car market
share. More detailed customaries service is to be provided. Show room
demonstration should be given at frequent time interval and feed back should be
considered positively.

The company should look into the matter of person hiring for in showroom
demonstration. A big showroom should have at least 5 such kind of person.

As there is a bottle neck competition between Hyundai and Maruti, it is

necessary to take measure steps to overcome the area of downfall in Maruti with
respect to Hyundai. The marketing managers should make better relations with
dealers and reputation of the company.

Customer considers quality as their first preference, so the company should give
more stress on this. The product is well aware and it is on top of mind of
customer. So company should always improve services and update their
technology.

54
 Chapter 7
BIBLIOGRAPHY

55
 CHAPTER 6
BIBLIOLOGY

www.marutisuzuki.com
www.managementparadise.com
www.carwale.com
Autocar Magazine

56
QUESTIONNAIRE

Q1. Have you ever purchased any car of Maruti Suzuki?

 Yes
 No

Q.2 While purchasing car which feature influence you?

 Price

 Product feature

 Brand

 Service

 Durability

Q3. From where you prefer buying a second hand car?

 Through advertisement

 Dealers

 Showroom

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of
following reasons
 Attractive Price
 Service
 Demonstrations
 Offers

57
Q.5.Which Car of Maruti of do you have?
 SWIFT

 SWIFT DZIRE

 ESTEEM

 MARUTI800

 ALTO

Q.6. How frequently you change your cars?

 1-3 years

 3-5 years

 5-10 years

 More than 10 years

Q.7. Which bank do u prefer for financing the car?

 HDFC

 ICICI

 AXIS BANK

 PUNJAB NATIONAL BANK

58