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Published by: Ivey Publishing
Originally published in: 2018
Version: 2018-09-10
Revision date: 23-Oct-2018
Length: 10 pages
Data source: Published sources

Abstract

The passenger car industry in India has witnessed intense competition since the Indian economy's liberalization in the early 1990s. Although Maruti Suzuki India Limited has been the most dominant player for the last three decades - with many Indians using 'Maruti' as a synonym for 'car - it has been unable to raise the prices of its cars over the last ten years due to a price war among rivals. Though Maruti has been a profitable company, rising input costs and poor price maneuverability are making it very challenging for the firm to remain profitable in the future. In 2014, Maruti is contemplating a major investment in a new plant. The chairman of Maruti must determine whether investing in the new plant would reduce costs significantly and help the company remain profitable.
Location:
Industry:
Size:
Large
Other setting(s):
2000-2014

About

Abstract

The passenger car industry in India has witnessed intense competition since the Indian economy's liberalization in the early 1990s. Although Maruti Suzuki India Limited has been the most dominant player for the last three decades - with many Indians using 'Maruti' as a synonym for 'car - it has been unable to raise the prices of its cars over the last ten years due to a price war among rivals. Though Maruti has been a profitable company, rising input costs and poor price maneuverability are making it very challenging for the firm to remain profitable in the future. In 2014, Maruti is contemplating a major investment in a new plant. The chairman of Maruti must determine whether investing in the new plant would reduce costs significantly and help the company remain profitable.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2000-2014

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