The passenger automobile business in India has seen intense competition since the Indian market's liberalization in the early 1990s. Although Maruti Suzuki India Limited has become the most dominant player for the past three decades - with many Indians using "Maruti" as a synonym for "automobile" - it has not been able to raise the costs of its own cars over the past ten years due to a price war among rivals.
Maruti Suzuki India Limited Sustaining Profitability Case Study Solution
Though Maruti has been a lucrative business, inferior price maneuverability and rising input costs are making it very challenging for the firm to stay profitable in the future. In 2014, Maruti is considering a major investment in a new plant. Maruti's chairman must determine whether investing in the brand new plant would reduce prices significantly and help the business stay prosperous. Ramakrushna Panigrahi is affiliated with International Management Institute.
PUBLICATION DATE: September 26, 2014 PRODUCT #: W14478-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION