Abstract

The caselet examines the entry of Maruti Udyog Limited (MUL), the leading Indian car manufacturer, into the used car market. Between the late 1990s and early 2000s, MUL found its profit margins going down. This made it imperative for it to look for other revenue generating avenues, and this included the entry into the user car market in India. The caselet also examines how Maruti used its customer relations practices to build customer loyalty and word-of-mouth awareness.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Evolution of the used car-market in India
• Role of word-of-mouth in developing new business for a company
• and The role of changing demographics in developing new markets.

Keywords

Maruti Udyog Limited (MUL), Maruti True Value Services, Jagdish Khattar, ICICI Bank, Automartindia, Ford Assured services, User car market, Daewoo Motors India Ltd., Hyundai and State Bank of India