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Maruti:: Valuing The Indian Used Car Market

Maruti started its used car business, called Maruti True Value, to tap into the growing used car market and offset declining market share. Through Maruti True Value, used cars are evaluated, priced, and sold through a network of over 300 dealers. Over 123,000 used cars were sold in FY09, with over 80% of buyers purchasing a new Maruti car. However, Maruti now faces challenges from new low-cost competitors entering the Indian market and changing customer preferences toward newer options.

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147 views8 pages

Maruti:: Valuing The Indian Used Car Market

Maruti started its used car business, called Maruti True Value, to tap into the growing used car market and offset declining market share. Through Maruti True Value, used cars are evaluated, priced, and sold through a network of over 300 dealers. Over 123,000 used cars were sold in FY09, with over 80% of buyers purchasing a new Maruti car. However, Maruti now faces challenges from new low-cost competitors entering the Indian market and changing customer preferences toward newer options.

Uploaded by

manisha1234567890
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

1

MARUTI:
VALUING THE INDIAN USED CAR MARKET

Group 1
Overview
2

 MUL came into existence in1981.


 Latter in 1982, went into a JV with Suzuki, Japan.
 After liberalization it faced a stiff competition from
foreign player like Hyundai, Tata & Daewoo.
 It resulted in decline in market share from 87% in
1998 to 64% by 1999.
 To tap a new segment Maruti started used-car
(organized) market operations.
Used-Car Market
3

 This service was named ‘Maruti True Value’.


 Under this service Maruti engineer estimated the value

of car and organized sale or exchange.


 Enhances residual value thereby reducing cost of

ownership.
 Network : 315 True Value Dealers in 181 cities.

 123,000 pre-owned cars sold in FY09 (growth of 22%

over FY08, ~12% of total used-car market).


 Over 80% translate into a new car sales.
Consumer Behavior
4

 It catered to new a low price car ownership market.


 First used-car market was not a hit but once several
companies jumped into the market, customers
started opening up to this scheme resulting in
exponential growth and wide range of choices.
 Maruti’s brand gave a reliability to this business.
 Security issue regarding ownership were dealt
which leading to credibility.
 Maruti’s website gave an insight into the product
which took care of ‘Cognitive Dissonance’.
Customer Decision Process
Marketing mix
• Product
• Price
• Promotion
• Place

Psychological Sociocultural
Influences Consumer Decision Process Influences
Information search • Personal
• Perception Alternative evaluation influence
• Learning Purchase decision • Reference
• Values, beliefs Post purchase behavior • Family
and attitude • Culture

Promotion Influences
• Purchase task
• Social surroundings
• Physical
surroundings
Maruti’s True Value Performance
6

Mass marketing
and greater
Change in CB insight due to E-
due to newer portal
player and
performance of
used-cars
New Challenges ahead….
7

 Tata Nano…
 Other new entrants like Bajaj Auto, Fiat, General
Motors, Ford Motor, Hyundai and Toyota Motor in
sub 100k market.
 Lower priced electric and hybrid cars.
 Service issues when volume becomes very large.
 Increasing high disposable income.
 Also customer may not like the idea of single brand
offering.
8

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