Maruti Suzuki & Hyundai

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Why is Hyundai shy of taking on Maruti Suzuki

Transcript of Maruti Suzuki & Hyundai

Page 1: Maruti Suzuki & Hyundai

Why is Hyundai shy of taking on Maruti Suzuki

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CONTENTS

• Introduction• Maruti Suzuki• Hyundai• Why is Hyundai shy on taking on Maruti Suzuki?• Hyundai’s scale a potential threat to Maruti Suzuki’s dominance in India• Conclusion

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INTRODUCTION

1897 The first car ran on an Indian road

1930s Cars were only imported, and in very small numbers

1940s An embryonic automotive industry emerged in India

1980s The automobile market was still dominated by Hindustan and Premier

• Eventually, Suzuki and Toyota of Japan and Hyundai of South Korea started investing in Indian market

• Maruti and Hyundai were the most successful among this entries.

Evolution of cars in India

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Maruti Suzuki

Founders R.C.Bhargava (Chairman), Kenichi Ayukawa (CEO & MD)

Founded 1981Brand Slogan “Way of life”Headquarters New DelhiFirst Model Maruti 800• Has control over half of the domestic car market in the

country• The Indian unit sells 85,000-90,000 units on average every

month• The Brand Trust Report published by Trust Research Advisory

has ranked Maruti Suzuki in eleventh position in 2014 among the most trusted brands of India.

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FUTURE STRATEGIES

• To launch compact cars with more features • Maruti’s plan to build a plant in the western state• Maruti Suzuki’s focus on lower vehicle emissions • Capitalize on development capabilities • Focus on internal resources to finance• Emphasized on growing its export market

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HYUNDAI MOTOR INDIA

Founder Mr. Bo Shin Seo (MD)Founded 1996Brand Slogan New thinking new possibilities

Parent company Hyundai Motor CompanyHeadquarters Tamil Nadu, IndiaFirst Model Hyundai Santro• The largest automobile exporter in India• Balanced Sales Growth and Diversified Portfolio• Structural Improvement in Core Competitiveness

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FUTURE STRATEGIES

• Balanced Capacity Expansion • Cost Structure Improvement• Develop Independent and Distinctive Technology• Expand export sales • Enhance brand equity • Improve profitability by offering• Lower incentives than its peers

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Why is Hyundai shy on taking on Maruti Suzuki?

• Maruti Suzuki has a 15 years head start and has stood the test of time.

• Has attended to the demand of the public.• Maruti increased its market share from 50-52% in

passenger cars• Sales and services• Re-sale value• Wide spread network

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Top 10 Passenger vehicle models 2015

Sl Model Units sold

1 Maruti Alto 22,595

2 Maruti Swift 17,195

3 Maruti Dzire 16,473

4 Maruti Wagon R 12,467

5 Hyundai Elite i20 10,334

6 Hyundai Grand i10 10,112

7 Mahindra Bolero 7,569

8 Honda City 7,562

9 Maruti Celerio 6,653

10 Hyundai Eon 6,449

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Hyundai’s scale a potential threat to Maruti Suzuki’s dominance in India

• Popularity - Largest exporter of cars since 2008• Strategy - Plans to increase their market share • Achievements - Hyundai’s increasing domestic

sales • Future models - Aims to set a higher standard in

the premium sedan segment.• Hyundai's scale allows it to deploy capital at a rate

not possible for Suzuki• Prime minister of India plans to seek partnership.

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February Sales Analysis

Maruti Suzuki

Hyundai Motors

0

20000

40000

60000

80000

100000

120000

Feb '15Feb '14

Maruti Hyundai

Feb ’15 1,07,892 37,305

Feb ‘14 99,758 34,005

Uni

ts so

ld

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Thank You!