• For Hyundai Motors India Pestle and Swot analysis, see Hyundai India Pestle & Swot.

1.0 INTRODUCTION 

Maruti Suzuki India Ltd (MSIL) is an Indian based carmaker and subsidiary of Suzuki Motor Corporation Japan. It was first established as a joint venture in 1981 between state-owned Indian car maker Maruti Udyog and Suzuki with the principle aim of manufacturing and selling of motor vehicles. The company is now majority owned by Suzuki and interestingly, Maruti Suzuki has a market capitalisation three times bigger than Suzuki Motor Corporation itself (Mundy 2017). Maruti Suzuki is also the biggest vehicle manufacturer in India with a market share of over 50% meaning, one out of every two cars purchased in India is a Maruti Suzuki. Its closest rival is Hyundai Motors with a market share of around 17% meaning the combined market share of Maruti Suzuki and Hyundai Motors India is close to 70%. Such a high concentration of the market share between the two dominant players means India’s automotive sector is a duopoly (Maruti Annual Report 2016; Mukherjee 2017; Mundy 2017). Maruti Suzuki net revenue for the year ended 31st December 2016 was US$9.1bn on profits after tax (PAT) of US$720million (Annual Report 2016).

As will be looked at shortly, many factors both macro and micro have contributed to the dominance of Maruti Suzuki in the Indian automobile industry. As an early pioneer of the Indian car manufacturing indistry, Maruti Suzuki enjoys early mover advantages that have enabled it create a sustained competitive advantage over rivals for a longtime. Despite these advantages, rivals such as Hyundai Motors India Ltd have been making inroads in the Indian passenger car market, gaining market share in segments that Maruti Suzuki is weak in.

Using PESTLE, and Porters Five Forces framework, we examine all the factors in the Indian automotive industry starting with the current external macro environment and the political, economic, social and technoligical factors that are shaping, making it more competitive. Using Porters Five Forces analysis, we look at how the industry structure of Indias automotive industry makes it harder for other car manufacturers to challenge Maruti Suzuki. We supplement this analysis with a Maruti Suzuki SWOT analysis as well as Maruti’s BCG matrix looking at its current strengths and how its further fortifying them against competition. We also take a look at internal weaknesses of Maruti Suzuki and how rivals such as Hyundai Motors India Ltd or Mahindra & Mahindra can recover some ground and take market share from Maruti Suzuki. 

All isn’t lost for rivals such as Hyundai Motors India Ltd, in fact some current and future macro trends in the Indian automobile industry actually may favour it if can enter and position itself in...

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