Abstract

The case highlights the pricing strategy of Maruti Udyog Limited (MUL), the market leader in the Indian passenger car industry. MUL has launched various models catering to all market segments at various price points. The case provides a brief note on the various models of MUL, their prices and their features. It specifically focuses on the competition between two of MUL’s best selling models - the M800 and Alto. MUL reduced the price difference between these two models positioning them on an almost equal platform, which resulted in confusion in the minds of consumers and industry analysts. M800 had ruled the passenger car market as the only car in the entry-level segment in the Indian automobile industry and was now facing the danger of cannibalization from one of its own family members, Alto. The case highlights the pricing dilemma faced by MUL and leads to a debate on the right pricing strategy for the company and the future of its flagship product M800.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Trends in the Indian passenger car industry, MUL’s pricing strategy.

Keywords

Case, Maruti Udyog, Pricing Strategy, Price Positioning, Maruti 800, Alto, Price Points, Flexible Pricing, Indian Passenger Car Industry, Promotion, Distribution and Market Penetration.