Abstract

The case examines the competitive strategies of Maruti Suzuki India Limited (Maruti), a subsidiary of Japan based Suzuki Motor Corporation (Suzuki), the market leader in the Indian passenger car industry. Maruti was founded in 1981. After the liberalization of the Indian economy in 1991, several foreign players had entered the Indian passenger car market. Maruti started losing market share as the competitors firmly established their foothold in the car market with the launch of several new models that became popular with the Indian buyers. To counter the competition, Maruti started a major restructuring exercise in 2003. The company focused on upgrading manufacturing, increasing capacity, launching new products at regular intervals so as to cater to all the segments of the Indian passenger car market and venturing into other related businesses like car finance, insurance and buying and selling used Maruti cars. Maruti’s restructuring exercise helped the company hold its market leadership position and retain its market share. The case examines how the deregulation of the Indian automobile industry had an adverse impact on Maruti’s market share. It also details how Maruti’s competitive strategies helped it to sustain its market leadership. The case ends with a discussion on Maruti’s future strategy.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Study the impact of liberalization in the Indian automobile industry.
• Examine the growth strategies of Maruti over the decades.
• Analyze the restructuring program implemented by Maruti and its impact on the company's competitive position.
• Evaluate the competitive strategies of Maruti to retain its market share in the recent years.
• Examine the future plans of Maruti to improve its competitive position.

Keywords

Maruti Suzuki, Restructuring Program, Operational Efficiency, Indian Automobile Industry, Liberalization, Deregulation of Automobile Industry, Competitive Advantage, Competitive Strategies, Promotional Strategies, Value Added Services, Product Portfolio, Business Portfolio, Distribution Network, Economic Meltdown, Electric Car Technology, Indian Passenger Car Market