Maruti Suzuki Porters Five Forces Analysis 2018

By: Jonathan Kush

Maruti Suzuki is 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. In fact, such is the dominance of Maruti Suzuki that seven of its passenger vehicles were featured in a list of India’s best selling cars of 2017. Its closest rival is Hyundai Motors India with a market share of around 17% meaning the combined market share of Maruti Suzuki and Hyundai Motors India 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. Using Porters five forces, this report examines the current industry structure of the Indian automobile industry to understand the nature of competition and more importantly shed some light on how Maruti Suzuki has gained and maintained such dominant market share in recent years despite increased competition in India’s automobile industry.

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