Indias Passenger Vehicle Industry

The following example essay on “Indias Passenger Vehicle Industry” is a SWOT analysis of Maruti Suzuki. This research method is a method of strategic planning, which consists in identifying factors of the internal and external environment of the organization.

Indias passenger vehicle industry suffered its worst sales performance from last few years. Indias largest carmaker Maruti Suzuki India Ltd has reported a 27 percent decline in domestic PV(passenger vehicle) sales in 2019 at 110,454 units against 151,512 units. The deprived sales run sustained with the carmaker witnessing an eighth consecutive overall monthly sales declined.

The mini sub-segment, including of Alto, old WagonR and the newly-launched S-Presso, underwent a decline of 42.6 per cent to 20,085 units. The solid sub-segment, which contains new WagonR, Celerio, Ignis, Swift, Baleno and Dzire, proverb the sales going down by 22.7 per cent to 57,179 units. There was an enormous 72.5 percent decline in the mid-size sub-segment, which only has Ciaz to 1,715 units.

The overall economic strike coupled with dawdling of monsoon and higher monsoon deflects in few zones have untoward rural demand.

And, liquidity issue to some extent, the numerate correction for better business viability at dealers, converting diesel cars to BS-VI technology as resulted into substantial volume decline. Customers are also delaying their buying decisions due to numerous considerations, including an expected reduction in GST rates, and the hope that the changeover from BS-IV to BS-VI may lead to large reductions between January and March 2020.

Maruti Suzuki SWOT analysis is as follows :

STRENGTH:

•  Effective new product launches and Massive product collection.
•  Top market presence and better-quality business performance.
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•  High client satisfaction and solid marketing.
•  Growing EPS and taming their financial concert.
•  Good advertising policy is implemented by Maruti (MUL) to transfer its thoughts to the individuals about its products.
•  Has worthy product outlines with decent fuel efficiency like Maruti Swift, Alto etc.
•  Solid existence in the second-hand car marketplace.

WEAKNESS:

•  Improve features and interior facility ambience to compete with foreign brands.
•  Failure to enter the international marketplace
•  Employee management problems have disturbed Maruti’s brand image.
•  Government intrusion due to having share in MUL(Maruti Udyog limited (MUL).
•  Maruti obligate to evidenced itself in SUV model like other companies.

OPPORTUNITIES :

•  Maruti can goal developing markets across the world and construct a world-wide brand.
•  Emerging hybrid cars and fuel effective (BS VI) cars for the upcoming can be an opening for Maruti Suzuki.
•  Fluctuating client preferences.
•  Elevated market ability for rural India.

THREATS :

•  With the demonetization in India and opening of GST, the financial tasks are increasing for industries in India.
•  Ever increasing fuel prices.
•  Supernumerary modes of public transport like buses, metro trains etc
•  Government procedures.
•  Instant change in technology.