Maruti Suzuki India Limited

Table of content
1. Company Overview
2. PESTELD Analysis
 Political
 Economical
 Social
 Technological
 Environmental
 Legal
 Demographics
3. SWOT Analysis
 Strengths
 Weakness
 Opportunities
 Threats

Project Team
 Murtaza Mannan
 Shresth
 Ardik
 Gaurav
Company Overview
Overview

Launched 1983

HQ India

Employees 40,000

Business Sector Automobile Services

Operating Geography Asia, India, Global

Maruti Suzuki India Limited (MSIL) is a holding company engaged in

the manufacturing, purchasing, and selling of motor vehicles,
components, and spare parts of four wheeler cars. It was
established in 1981, and production started in 1983. The company
is a joint venture between the Government of India and Suzuki
Motor Corporations Japan. The company has 53% market share
and established market leadership in the Indian market. It has
three manufacturing facilities located in Gurgaon, Manser, and
Gujarat. All Plants have a combined capacity to produce
approximately 1.8 million vehicles per year. Going forward, the
company plans to increase the total production capacity of all
three plants from 1.8 million to 2.3 million vehicles per year by
2020.
PESTELD Analysis
The study helps us to understand the condition under which the
MSIL products were introduced in the Indian market. It analyzes
the factors that influenced the company’s effectiveness.

 Political Factors –
A) MSIL galloped in India during the adoption of new economic
policy by the government of India. As a result everyone very open
to the idea of collaboration with foreign companies
B) The government insisted on the companies using 70% local
content in the manufacturing of the cars as they would have
generated tremendous revenues for India.
C) Positive EXIM policies also have helped MSIL boost its top line
with export. The EXIM policy was introduced to enhance the
export of cars.
D) Rise in protectionism measures for business opportunities and
Make in India Initiative.

Economic Factors –
A) The economic condition during the launch of MSIL were very
relaxed and liberal. So there were no strict norms that the
company had to adhere by.
B) The resources available in India were utilized by Suzuki which
generated considerable revenues for the government.
C) A booming banking sector has made MSIL more affordable.

 Social Factors –
A) A rise in middle class population in India has propelled a
demand of B-segment cars. The company provides an exact
choice for this demand.
B) Enhanced customer requirement and perceived social value and
rise in car-pooling and shared mobility.
C) MSIL included train racks to transport the cars to decrease the
pollution level.
D) The company uses all types of media to promote its product.
The main focus is on the road safety measures.

 Technological Factors –
A) MSIL has the technology to manufacture everything from the
smallest screws to the biggest of machines in its factory.
Therefore, MSIL manufactures cars under best conditions
B) Increase in Embedded technologies like incorporation of radar,
camera coupled to steering, braking activities, as well as
innovation in power train technologies for better driving
experience and safety performance, in addition to
implementation of green technologies.

 Legal Factors –
A) Greater attention and more initiatives to reduce environmental
impact due to automobiles
B) More Legal compliance measures to increase passenger safety

 Environmental Factors –
Growing criticism towards environmental pollution created by
Vehicles

SWOT Analysis
Here is the SWOT analysis of MSIL :-
Strengths
 Brand Name - the most popular and top selling brands of the
company are Swift, Dzire, WagonR, and Eeco.
 Large Distribution networks – the company has strong dealer
network across India and has largest distribution and after
sales services. The company has 1,820 sales outlets across 1,
471 cities, and 3,154 service stations across 1,506 cities in
India.
 Wide product offering at different price points – Price
strategy of MSIL is as per both the penetrative and
competitive stage. The company offers vehicles at the price
range from lowest (2.68 Lacs) to highest (19 Lacs) across all
its categories including Minivan, Hatchback, Sedan, and Mini
MPV.
  Cheapest cars in respective segments – The product quality is
suited for the every segment of the population either it is
urban or rural.
 Encouraging Exports –
 Economy with Technology – Technology used by the MSIL is
as per the economic needs of the country
 Improving financial performance and rising Earning per share
(EPS)
Weaknesses
 Lack of separate Research and Development departments
 New model introduction to only cosmetic changes
 Dominance mainly at lower levels – Less command over
premium vehicles and SUV segment.
Opportunities
 Rise in the Indian middle class and small cities
 Improving economic scenario in domestic market –
Attributable to the country’s stabilized and healthy GDP
growth around 7% due to improved infrastructure
development in the country.
 Rising Exports – Positive development in the global economy
a healthy sign for export sales.
 In the political point of view – MSIL can enjoy more
investment opportunities under the more liberalized initiative
of the government allowing for 100% foreign direct
investment (FDI) It has been coupled with better
infrastructure increased tax holidays and setting up of Special
 Economic Zones (SEZs) which promise better investment
opportunities for the company
Threats
 Many Players fighting for the same – including Mahindra, Tata
as well as foreign brands Mercedes, BMW, Volkswagen,
Skoda, and Audi.
 Entry of new players – Foreign players setting manufacturing
facilities in India. China may give a good competition as they
are also planning to enter the Indian markets