An Overview

Maruti Suzuki

Name Maruti Suzuki India Limited

Incorporated February 1981

Joint Venture
October 1982
Agreement

Equity Structure 54.2% Suzuki, Japan, balance with Other Financial Institution and Public

Sales (No of Cars)

Financial year 674, 924 including 39,295 exports.
2006-07

Sales (Net of Excise)

INR 152.5 Billion , Yen 423.675 Billion ,
Financial year
$ 3.499 Billion *
2006-07

Employee Strength 4993 of Financial year 2006-07

Joint Venture 15 Joint Venture companies, including Suzuki Powertrain India Limited
for component supply.

Product Portfolio 10 models with around 100 variants including:

Maruti 800 Omni
Alto WagonR
Swift Zen
Gypsy Esteem
Versa SX4
Grand Vitara
 Mitsubishi Motors

An Overview

Mitsubishi

Name Mitsubishi Motors Corporation

Established April 22, 1970

Head office 33-8, Shiba 5-chome, Minato-ku, Tokyo 108-8410 Japan

Chairman of the
Board
Takashi Nishioka (As of 22 June, 2007)
[ Representative
Director ]

President
[ Representative Osamu Masuko (As of 22 June, 2007)
Director ]

Net Sales JPY 2202.9 billion (in FY2006, consolidated)

Automotive Sales 1,232 thousands units

Products Sold in More than 170 countries

Models in the Market

Maruti Suzuki

Maruti 800 Maruti Omni Maruti Alto

Maruti Wagon R Maruti Zen Estilo Maruti Versa

Maruti Swift Maruti Gypsy Maruti Esteem

Maruti SX4 Maruti Grand Vitara

Models in the Market

Mitsubishi

Colt Colt Plus Delica D:5

ECLIPSE Eclipse Spyder Endeavor

Galant Galant Fortis Grandis

Lancer Lancer Evolution X Minica

Outlander Pajero Pajero Mini

TRITON Town box / Minicab eK Series

Introduction to the Company

Maruti Suzuki

Maruti Udyog Limited was incorporated on February 24, 1981, and In October 1982
MUL made a Joint venture with Suzuki Motor Corporation Japan, to meet the growing
demand for a personal mode of transport caused by the lack of an efficient public
transport system, with Suzuki as a minor partner, to make a people's car for middle
class India. Maruti 800 was the first car that was launched in 1984. The car had an
engine capacity of 796 cc, high fuel efficiency and the pricing was extremely
competitive. Over the last 10 years, MUL has launched various models targeting all
segments of customers over the years, the product range has widened, ownership has
changed hands and the customer has evolved. What remains unchanged, then and
now, is their mission to motorise India.

The parent company, Suzuki Motor Corporation, has been a global leader in mini and
compact cars for three decades. Suzuki's technical superiority lies in its ability to pack
power and performance into a compact, lightweight engine that is clean and fuel
efficient. The same characteristics make their cars extremely relevant to Indian
customers and Indian conditions. Product quality, safety and cost consciousness are
gelled into their manufacturing process, which they have inherited from parent
company. Right from inception, Maruti brought to India, a very simple yet powerful
Japanese philosophy 'smaller, fewer lighter, shorter and neater'

Introduction to the Company

Mitsubishi

Mitsubishi Motors Corporation is the sixth largest automaker in Japan and the
seventeenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu,
formerly the biggest industrial group in Japan, and was formed in 1970 from the
automotive division of Mitsubishi Heavy industries.

Mitsubishi has its roots in producing commercial vehicles for its home market of Japan.
Its current selection of vehicles, which include cars, trucks and SUVs, tend to offer
above-average performance and style.
A Japanese word meaning "three diamonds," Mitsubishi was founded in by Yataro
Iwasaki, a descendant of samurais, in the early 1870s. The company's initial focus was
on shipping, but it quickly diversified into areas such as mining and ship repair.

In 1917, Mitsubishi unveiled the Model A, Japan's first series production passenger car.
In 1960, with the launch of the compact Mitsubishi 500, the company began producing
passenger vehicles on a large scale. Mitsubishi's automobile production arm was
officially spun off into a company of its own with the establishment of Mitsubishi Motors
Corporation in 1970.
Product Adaptation in Indian Markets and Exports:-

Maruti Suzuki

In Indian Market the Product adaptation goes by Region wise or Zone wise like East,
West, North and South. But being the Market Leader since 20 years now Maruti Suzuki
are manufacturing and launching those models in the Market which will fetch good
demand and mark their presence in consumers mind. The Models which are produced
are given equal importance in all the region and markets of India.
Maruti Suzuki being largest passenger car manufacturing organisation, Maruti Suzuki
has always encouraged exports to remain competitive in global markets. An exposure of
global markets always comes handy in improving product quality and cost.
This is why, in 1986 despite a 3-year waiting period in the domestic market, The
Company started exporting cars, only to ensure that they will remain competitive in
terms of cost and quality. Since then the company managed to sell more than 450,000
cars to more than 100 countries of the world. Some of the cars became bestsellers. Like
old Zen- was projected as the World Car and was very well received in Europe.
Similarly, Alto received rave reviews in Netherlands, Greece, Germany and Switzerland.

At present, company exports entry level models to many Latin American and African
nations. With a heavy focus on Non-European Countries Company have managed to
bring incremental sales and our exports to these countries have grown by 47%, 65%
and 40% in the past three years.
New Export Model - Concept A-Star is the upcoming export model that has been
developed by Maruti and Suzuki Motor Corporation jointly. Production of this world car
will begin in October 2008, at Maruti's Manesar Plant.
Product Adaptation in Different Markets/ Culture

Mitsubishi

Japan and Asian Market

 MMC steadily improved its performance, delivering higher year-on-year sales.

Supporting this performance was the launch of the new eK series and new
Pajero model.

 MMC is targeting Japanese retail sales of 250,000 units. This target is based on
the launch of two new sedan models and special editions of current models.

 MMC’s goal is to make the Delica D:5 a long-selling model along with the Pajero
and Outlander in the SUV category, where MMC is strong. This move is to
reinforce the line-up of registered vehicles in both the SUV and sedan categories
as the co. work to increase the ratio of registered vehicles in companies’ total
sales volume in Japan.

North America and Canada

 MMC’s active launch of new models was hugely successful. One of those models
was the new Eclipse Spyder, which went on sale in the U.S. market in April 2006.

 MMC then by launching the new Outlander into the expanding compact SUV
segment.

 In March 2007, the new Lancer was rolled out in the North American market first,
before any of MMC’s other markets.

 The new Outlander and Lancer models have been strong sellers in Canada as
well.

European

 The compact Lancer sedan has continued to achieve strong sales in European
market. The successive roll-out of the Thai-built L200 (Triton) one-ton pickup
truck.

 The new Outlander and Pajero (Montero or Shogun in some markets) SUVs in
the second half, also made substantial contributions to sales MMC is targeting
European retail sales of 316,000 units. This target is based on sales of a
strengthened lineup of SUV models such as the new Outlander and Pajero.
  By expanding sales of an enhanced SUV model lineup, including the new Pajero
and L200 (Triton), MMC aim to strengthen their presence in the European
market.

Advertising and Communication

Maruti Suzuki

The advertisement part of the Maruti Suzuki is taken care by few Advertising and Brand
Management Company who understand very well what advertising and marketing
strategies has to apply and which is the better medium for them to reach customer and
tend them to buy the product, here are the brands and the company which managed
that particular Brand. Company Name: - Hakuhodo Percept: - Maruti Suzuki 800, Maruti
Suzuki WagonR
Lowe Lintas India: - Maruti Suzuki Alto, Maruti Suzuki Alto Vxi, Maruti Suzuki Esteem,
Maruti Suzuki Omni, Maruti Suzuki Versa, Maruti SX4.

Medium used for promotion of the product are Primarily National and regional
newspaper, Magazines, Outdoor hoardings, Television Advertisement, and
Internet.
Advertising and Communication

Mitsubishi

Mitsubishi’s brand strategy included the importance of distinguishing its brand and
making it stand out from all the rest.

MOTTO: “Spirited Products for Spirited People”

 Reflects Mitsubishi’s design and performance character.
 Differentiates Mitsubishi from other Japanese manufacturers
Mitsubishi aims its brand toward a diverse audience that is “young at heart.” They
emphasize the importance of making their cars in the image of their distinct
customers.
Most of their customers are under the age of 35.

Advertising Strategies:
Deutsch’s incorporation is advertising and brand Management Company which handles
the Mitsubishi brand. Their strategic approach includes “emphasizing a vehicle's
emotional appeal based on style and design.” Although Mitsubishi states that it does not
advertise to a specific demographic group, Deutsch have created their ad campaigns to
appeal and build brand recognition among Generation Y, people aged 16-20. They have
successfully completed this task over the past years by including aspects of pop culture,
such as rising singers and bands.

Media
Magazine, National newspaper, Outdoor, Network TV, Spot TV, Syndicated TV,
Cable TV and Internet.

The major way of attracting consumer’s through proving their competencies by

participating in World Championship Rallies.

 FIA World Rally Championship

 FIA Asia Pacific Rally Championship
 Dakar Rally
 FIA World Cup for Cross Country Rallies
 FIA International Cup for Cross Country Bajas
Manufacturing, Distribution Centres and Franchises:-

Maruti Suzuki

Facilities Gurgaon: 3 vehicle assembly plants

Manesar: 1 vehicle assembly plant
Head Office in New Delhi, India
Regional offices: 16
Diesel Suzuki Powertrain India Limited (SPIL), Joint Venture between Suzuki
Powertrain Motor Corporation 70% Equity the rest is with Maruti Suzuki India
Plant Limited.
Global hub for Diesel engines and transmissions for Suzuki worldwide.

 There are 400 showrooms covering 229 cities and 150 rural format sales outlets
in 143 cities.

 There are 620 dealer service stations &1900 Maruti Authorized Service Stations.

 Over 1190 cities covered by Service Network with Widest product range in India.

 Majority of new showrooms & workshops coming from existing dealers Wherein
the Investment goes up to of $ 2.25 Billion by FY 2010. Manesar ($ 625 Million)
to increase capacity to 300K cars. Diesel Engine Plant ($ 625 Million) to increase
capacity to 300K units.

 Setting up New Engine Plant & Gurgaon facilities up gradation ($ 1,000 Mn).
MUL’s plant is located at Gurgaon in Haryana. It has an installed capacity of
350,000 vehicles. However, the company, through productivity improvement
Initiatives, would be easily able to produce 500,000 vehicles with its existing
facilities.

 MUL manufactured 370,000 cars at its three plants in Gurgaon in FY 2002-03.

The total manpower strength of the organization is 4,629, with an average age of
all employees at 36.53 years.
Manufacturing, Distribution Centres and Franchises:-

Mitsubishi

Major Manufacturing Plant

Manufacturing Plant and Distribution

Countries centres Model
Japan Nagoya Plant–Okazaki Colt, Colt Plus, Grandis
Mizushima Plant Outlander, Lancer, i, eK Wagon,
Pajero Manufacturing Co., Ltd. Pajero (Montero)
Powertrain Plant Kyoto Engines

Mitsubishi Motors North America, Inc. Eclipse, Galant, Endeavor,

U.S.A (MMNA) Eclipse Spyder

Netherlands Netherlands Car B.V. (NedCar) Colt (European model)

Australia Mitsubishi Motors Australia, Ltd. (MMAL) 380

Triton, Strada, Lancer,

Thailand Mitsubishi Motors (Thailand) Co., Ltd Spacewagon (Grandis)

Mitsubishi Motors Philippines

Philippines Corporation (MMPC) Adventure, L300 (Delica)

Pajero, Liebao (old Pajero),

China Hunan Changfeng Motor Co., Ltd. Liebao Feiteng (Pajero iO)

Galant, Lancer, Savrin (Chariot

Taiwan China Motor Corporation (CMC) Grandis), Zinger

Vietnam Vina Star Motors Corporation Pajero, Joly, Grandis

Descriptive Explanation

 Mitsubishi Motors Corporation (referred to herein as “MMC” or the “Company”)

and its group of forward companies is comprised of MMC and 113 subsidiaries,
42 affiliates and one associate (as of September 30, 2004).

 The MMC Group is engaged in the development, production and selling of cars,
as well as automotive components. MMC is responsible for most of the
development work. In Japan, Mitsubishi sedans, compacts and mini cars are
 produced by MMC, with some sport utility models (including the Pajero) also
being produced by Pajero Manufacturing Co., Ltd.

 Tokyo Mitsubishi Motor Sales Co. and other Mitsubishi Motors sales companies
sell these automobiles in Japan.

 Mitsubishi Automotive Engineering Co., Ltd. undertakes some of the

development of MMC automotive products, which are distributed by Mitsubishi
Automotive Logistics Co., Ltd. throughout Japan, and Mitsubishi Automotive
Techno-Service Co., Ltd. is responsible for the inspection and servicing of certain
new Mitsubishi vehicles.

 Overseas, in the United States, Mitsubishi vehicles are produced and sold by
Mitsubishi Motors North America, Inc.

 In Europe, Mitsubishi vehicles are produced by Netherlands Car B.V. and sold by
Mitsubishi Motors Europe B.V.
Overall Strategies

Maruti Suzuki
The Company has a complete confidence over their network partners and the
capabilities are evident from the fact that majority of companies new showrooms and
workshops are coming from existing dealers.

 The overall portfolio consists of 11 basic models & over 150 variants spanning
across all segments of the industry. While maintaining the focus on Compact
cars, Maruti's presence in A3 segment is getting stabilised fast by recently
launched SX4. Company have sold maximum number of cars in domestic A3
segment this year till Oct'07.

 The foray is Alternate fuel segment (with LPG powered WagonR and Swift
Diesel) has seen a very encouraging response from customers.

 The company had launched 6 new models (including Swift Diesel & WagonR
Duo) in this span of time Following a decentralised sales network in the company
has enabled to give tailor made solution to take care of various regional
challenges.

 The whole country has been divided in to 4 zones and further into 16 ROs and 15
AOs. And Proposed Investments till 2010 is INR 9000 Crores i.e. INR 90 Billion,
Yen 257 Billion (1Yen = 0.35 Rs), $2.25 Billion (1 $ = Rs 40).

 As the Indian economy shifts to higher gear, Company believe that maximum
reach is a very important factor. In the last year, MUL have also reached to new
customer segments through the NRI - Dil Se Program. Another segment that we
targeted was the rural segment through the Panchayat scheme.
Overall Strategies

Mitsubishi
MMC will continue to actively expand business in markets where Company can
demonstrate their MMC’s strengths.

 MMC currently enjoys extremely strong sales in growing markets, mainly Russia
and the Ukraine. Other markets with strong sales are Central and Eastern
Europe, the Middle East and Brazil. These markets will collectively drive global
economic growth, and are projected to continue to grow for some time yet.
 MMC is steadily expanding retail sales in Russia and the Ukraine, underpinned
by a strong reputation in each market. Efforts in these markets will remain
focused on deepening ties with local partners and actively rolling out mainstay
models such as the Outlander and the new Lancer.
 In China, MMC has three priority business are local production, imports of
finished vehicles from Japan, and engine production. Efforts are also focused on
stepping up the adoption of locally produced, Mitsubishi Motors-brand vehicles,
mainly by increasing investments in local companies.

 In India, MMC will actively roll out finished vehicles from Japan and Thailand as a
means of augmenting our model lineup. MMC aim to have the Outlander and
other core models successively follow suit.

 In Brazil, there is growing demand for flex-fuel vehicles (FFVs) that run on
gasoline, ethanol or various combinations of these fuels. In July 2007, the locally
produced Pajero TR4 Flex FFV went on sale. This model became Brazil’s first
true 4WD FFV. *3
Vision and core values

Maruti Suzuki

Vision: - To be a Leader in the Indian Automobile Industry through creating Customer

Delight and shareholder’s Wealth, A Pride of India.

Core Values: -
 Customer obsession
 Fast, Flexible and First Mover
 Innovation and Creativity
 Networking and partnership

Vision and mission

Mitsubishi

 To provide high levels of quality and customer satisfaction through distinctive

technologies and products.

 MMC has the strengths to succeed as a global automaker, based on its proven
technological capabilities, excellent personnel and more.

 MMC wants to become an automaker that provides the utmost driving pleasure
and safety for their valued customers and builds environmentally friendly
automobiles at the world’s highest levels.

Swot Analysis

Maruti Suzuki

Strengths
  Despite new entrants, MUL has maintained its market leadership in the
Passenger car industry, with annual volumes exceeding the combined volumes
of all other players put together.

 MUL has a 55% market share in the largest selling A & B segments, which
account for 85% of cars sold in the Indian market.
 Unparalleled sales and service network, which is larger than all the other players
put together

Weakness
 Company hasn’t yet launch or not even decided to launch the car in C& D
segment wherein there is good Market for Company Indian like Maruti Suzuki
 The Lower Middle class person future buyers of Maruti 800 has stopped and
decided to wait for some while and see which is the better car for them TATA
Motors Nano or Maruti 800
 Export Market should flourish, the company is loosing good amount of export
revenue

Threats
 MUL has been losing market share. There is a high dependence on the small car
segment, where growth has been lower than the mid sized and premium end
segments of the car market.

 Technology agreement restricts exports to Suzuki's other markets.

 Lack of a diesel variant restricts MUL’s growth in the second largest B segment,
where an estimated 33% of sales are of diesel models.