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    Maruti Suzuki - Group 8

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    Unnat Bharat Abhiyaan
    Maruti Suzuki should invest in electric vehicles for several reasons: 1) India has ambitious targets to transition to electric vehicles by 2030 which will benefit automakers like Maruti that invest early. 2) Investing now allows Maruti to gain an advantage over competitors before massive investments are required in electric vehicle manufacturing and charging infrastructure. 3) Not transitioning to electric vehicles risks losing market share as customers and governments support electric vehicles for environmental and energy independence reasons.

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    Maruti Suzuki - Group 8

    Uploaded by

    Unnat Bharat Abhiyaan
    34 views8 pages
    Maruti Suzuki should invest in electric vehicles for several reasons: 1) India has ambitious targets to transition to electric vehicles by 2030 which will benefit automakers like Maruti that invest early. 2) Investing now allows Maruti to gain an advantage over competitors before massive investments are required in electric vehicle manufacturing and charging infrastructure. 3) Not transitioning to electric vehicles risks losing market share as customers and governments support electric vehicles for environmental and energy independence reasons.

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    Maruti Suzuki_Group 8

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    Maruti Suzuki should invest in electric vehicles for several reasons: 1) India has ambitious targets to transition to electric vehicles by 2030 which will benefit automakers like Maruti that invest early. 2) Investing now allows Maruti to gain an advantage over competitors before massive investments are required in electric vehicle manufacturing and charging infrastructure. 3) Not transitioning to electric vehicles risks losing market share as customers and governments support electric vehicles for environmental and energy independence reasons.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    34 views8 pages

    Maruti Suzuki - Group 8

    Uploaded by

    Unnat Bharat Abhiyaan
    Maruti Suzuki should invest in electric vehicles for several reasons: 1) India has ambitious targets to transition to electric vehicles by 2030 which will benefit automakers like Maruti that invest early. 2) Investing now allows Maruti to gain an advantage over competitors before massive investments are required in electric vehicle manufacturing and charging infrastructure. 3) Not transitioning to electric vehicles risks losing market share as customers and governments support electric vehicles for environmental and energy independence reasons.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    Should Maruti Suzuki invest in

    Electric Cars?

    Group No : 8
    Shivam Rasraj(MBA07239), Rias Hassan RT(MBA07249),
    Gyan Prakash(MBA07219), Divyansh Shukla(MBA07207),
    Ankit Kumar(MBA07197), P Sridhar Prasad(MBA07229)
    E V in India
    Mahindra E-20 & E-Verito
    EV is less than 1 %
    Mission 2030 & benefits

    Maruti transition to EV
    Click Here

    Huge investment in the sunrise sector


    With collabration
    Pollution Control and Environmental Sustainability

    Air pollution crisis-1.2M death per year


    Govt. Plan to Phase
    out Fossil fuel cars Oil import Bill
    Almost Double the Previous Fiscal Year

    Movement towards E-cars


    Huge investment in
    conventional cars Energy Efficient
    manufacturing and oil refineries Import independance

    Forced to lower spending on some Key Areas

    Cascading Inflationary Impact


    Increase in Current Deficit
    Why is Maruti reluctant to immediately forge ahead
    in the e-car segment? Are they committing a
    strategic mistake in doing so?

    Target segment
    Economies of scale
    Competitors
    Customer expectations
    If Maruti Decides to enter the E.V. market, what should be the
    mode of entry? What would be an appropriate time?

    70-75% of 115k units cars sold are sub 10 Lakh.(May'22) 51%


    Control Price or Create sub-brand like Nexa
    Strategic Acquisitions maybe required (e.g. Reva) 2020

    Time to Enter?
    41%

    Already In Market Imminent 2022


    Based on the current business environment, should Maruti enter
    the E-Car Segment.

    FY PC sales(in millions) Fossil

    2021-22 2.72

    EV
    2020-21 2.39

    2019-20 2.77

    Source :Statista
    NASH equilibrium
    NASH equilibrium - Maruti can do best what others can do.
    Maruti's market share Crude Prices
    in PC ( fossil fuel)

    Fear of Govt Policy EV - Ecosystem


    Environment Battery Swapping Policy
    What will be your three strategic recommendations to Maruti on
    executing its e-car strategy?

    Manufacture the batteries of e-cars locally.

    Establish battery manufacturing plant near bauxite-rich areas


    (e.g. Odisha, Gujarat).

    Set up vehicle scrapping and recycling units.

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