MARUTI_PPTs[1]..final_project

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Managerial EconomicsThe Indian Car Industry : 

Group: A-4 ADITYA RAO ATISH VISHAL CHANDNI JAIN KURNAL KAPOOR RICHA DHAR RUCHIRA ROY Managerial EconomicsThe Indian Car Industry

The Indian Car Industry – Introduction : 

The Indian Car Industry – Introduction Segments – on basis of price Economy Segment (<Rs. 2.5 L) Higher end economy segment (Rs. 2.5-4.0 L) Mid-size segment (Rs. 4.5-8.0L) Luxury/premium segment (>Rs. 8.0L) Demand for passenger cars rising Rising incomes Easy financing available Sales of passenger vehicles > 1,000,000

Quick Reference to Basic Market Structures : 

Quick Reference to Basic Market Structures

Oligopoly : 

Oligopoly Oligopoly is a market form with - Few participants. Firms make its price and output decisions with regard to the responses of the other firms. Each have substantial share in market. Change in price or market share of one firm is reflected in the sales of the others. Industry is at the highest risk for collusion.

Determinants of market structure : 

Determinants of market structure Freedom of entry and exit. Nature of the product – homogenous (identical), differentiated. Control over supply/output. Control over price. Barriers to entry.

Market Players in the Indian Market : 

Market Players in the Indian Market Maruti Udyog Limited Joint venture with Suzuki Corp. First offering – Small Car – 800 cc engine – Maruti-800 Sales of Maruti-800 around 15,000 per month No direct competition for Maruti-800 Other offerings – Zen, Esteem, Wagon-R, SX4, Grand Vitara Market share declined – 64% in 1999 to 52% in 2000

Product offerings - MUL : 

Product offerings - MUL

Market players – Indian market : 

Market players – Indian market Hyundai Motors India Ltd. Entered market with Santro Essence of Hyundai’s Strategy – localization Santro a major success, as the sales crossed 75,000 in 2000 Faces competition due to small size of company

Product Offerings - Hyundai : 

Product Offerings - Hyundai

Market players – Indian market : 

Market players – Indian market TELCO Launched Indica to great response Made TELCO serious challenger to MUL Indica market share 21% in Rs. 3.0-4.5 L segment TELCO needs more models to be a leading player

Product Offerings – TELCO : 

Product Offerings – TELCO

Cars Compared : 

Cars Compared Maruti Zen: 16*4 All Aluminum Hypertech Engine, 16-Bit Microprocessor, Electronic Power Steering, Complete Safety, Smooth Driving. Hyundai Santro: 4 Speed Automatic Transmission, Power Steering, Anti Lock Braking System, Aerodynamics, Exterior Styling Concept, Air Ventilation System, Pull type door handles. Tata Indica: 1405cc diesel engine, Roomiest car in class, energy absorbing crumple zones, side-impact beams, rigid mono-chrome frame, child safety locks.

Sales data of Last four Years : 

Sales data of Last four Years

Factors Determining the Growth of Market Share of Zen : 

Factors Determining the Growth of Market Share of Zen

Factors contd… : 

Factors contd…

Factors contd… : 

Factors contd…

Factors contd… : 

Factors contd…

Demand and Supply Analysis : 

Demand and Supply Analysis Factors creating demand Price of the car Income of consumer/buyer Factors affecting supply Price of the car Factors of production Government policies and tax

Market share in small car segment : 

Market share in small car segment

Conclusion : 

Conclusion Hyundai has achieved the fastest market penetration MUL has enjoyed dominance in small car segment and close competition from TATA and HYUNDAI In addition to pricing of car, finance options, income of consumer, advertising and marketing, the after-sale services have also emerged as a major factor of demand. Price of fuel has also affected demand.

THANK YOU… : 

THANK YOU…

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