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    Maruti Suzuki - Group 3

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    Unnat Bharat Abhiyaan
    The document discusses whether Maruti Suzuki should invest in electric cars in India. It notes that while the Indian government wants to phase out fossil fuel cars to reduce pollution and oil imports, Maruti Suzuki is reluctant to enter the electric car segment due to high battery costs, lack of charging infrastructure, and uncertain government policies. Game theory is applied, finding that the most favorable move for Maruti would be to enter the market as the sole player, while waiting to see what competitors do has the highest payoff in Nash equilibrium. Recommendations include using the FAME subsidy scheme, partnering with local manufacturers, targeting affordable electric cars once proper infrastructure is established.

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    Maruti Suzuki - Group 3

    Uploaded by

    Unnat Bharat Abhiyaan
    39 views8 pages
    The document discusses whether Maruti Suzuki should invest in electric cars in India. It notes that while the Indian government wants to phase out fossil fuel cars to reduce pollution and oil imports, Maruti Suzuki is reluctant to enter the electric car segment due to high battery costs, lack of charging infrastructure, and uncertain government policies. Game theory is applied, finding that the most favorable move for Maruti would be to enter the market as the sole player, while waiting to see what competitors do has the highest payoff in Nash equilibrium. Recommendations include using the FAME subsidy scheme, partnering with local manufacturers, targeting affordable electric cars once proper infrastructure is established.

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    Maruti Suzuki Case

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    Maruti Suzuki_Group 3

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    The document discusses whether Maruti Suzuki should invest in electric cars in India. It notes that while the Indian government wants to phase out fossil fuel cars to reduce pollution and oil imports, Maruti Suzuki is reluctant to enter the electric car segment due to high battery costs, lack of charging infrastructure, and uncertain government policies. Game theory is applied, finding that the most favorable move for Maruti would be to enter the market as the sole player, while waiting to see what competitors do has the highest payoff in Nash equilibrium. Recommendations include using the FAME subsidy scheme, partnering with local manufacturers, targeting affordable electric cars once proper infrastructure is established.

    Copyright:

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

    Maruti Suzuki - Group 3

    Uploaded by

    Unnat Bharat Abhiyaan
    The document discusses whether Maruti Suzuki should invest in electric cars in India. It notes that while the Indian government wants to phase out fossil fuel cars to reduce pollution and oil imports, Maruti Suzuki is reluctant to enter the electric car segment due to high battery costs, lack of charging infrastructure, and uncertain government policies. Game theory is applied, finding that the most favorable move for Maruti would be to enter the market as the sole player, while waiting to see what competitors do has the highest payoff in Nash equilibrium. Recommendations include using the FAME subsidy scheme, partnering with local manufacturers, targeting affordable electric cars once proper infrastructure is established.

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    Should Maruti Suzuki Invest in Electric Cars?

    Presentation By:
    Group 3
    Divyatej Prakash
    G. Veeksith
    Kuldeep Rai
    Nayan Kamdi
    Neel Surti
    Rishu Kumar
    Why does Indian Government want to phase out fossil fuel cars considering
    the country has already invested huge amount in conventional cars and oil
    refineries.

    • SAVINGS ON OIL IMPORT


    • LESS POLLUTION
    • STAY AHEAD OF THE
    COMPETITION
    • INVESTMENT IN INDIA BY
    MULTINATIONAL COMPANIES
    Why is Maruti Suzuki reluctant to enter the e-car segment?
    Are they committing a strategic mistake by doing so?

    Skeptical of buying
    Lack of infrastructure High battery cost Lack of government clarity
    behaviour

    Due to high manufacturing cost, Maruti Suzuki will not be able to cater to its customer segment
    which make it strategically logical to go for the second mover advantage.
    Should Maruti enter the e-car
    market?
    • Market share of maruti suzuki in passenger cars 40 percent as of
    2015-16 .
    • Out of all the passenger cars sold in India only 5 percent cost
    more than 15 lakhs.
    • Maruti serves the rest 95 % of the market as of now. Model Price Range
    • Average cost of an electric vehicle in India is 15 to 18 lakhs.
    Breeza 8 to 14 lakhs

    Swift 6 to 9 lakhs
    Barriers to entry
    • High cost of batteries Baleno 6.5 to 10 lakhs

    • Insuffiecient charging infrastructure Ertiga 8 to 13 lakhs


    • Inconsisitency in government policies
    Game Theory approach
    Players - Maruti , Tata Motors and Mahindra & Mahindra
    One player does not enter - 1
    Does not enter with one player -2
    Does not enter with both player -3
    Enterting with no players - 4
    Entering with one player - 5
    Entering with both opponents - 6

    Most favorable condition - 4


    Nash Equilibrium - 3
    If Maruti Suzuki decides to enter the e-car market, what should be its mode of entry? What would be
    appropriate time for Maruti to enter the e-car market?

    Setting Up Partnership with


    Use Of FAME
    Proper Local
    India Scheme
    Infrastructure Manufacturers

    Grab Second-
    Target Customer Mover B2B
    Advantage
    STRATEGIC RECOMMENDATIONS

    1 2 3

    "The most affordable E- FAME Scheme Infrastructure Utilizing


    Car" Renewable Power
    THANK YOU!

    WE'RE OPEN TO
    QUESTIONS NOW

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