AUTOMOBILE INDUSTRY

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PROJECT STUDY ON

SUBMITTED TO:

PREPARED BY:HETAL SHAH

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This Capstone project is a part of PGDM Programme. My research objective of this

project is to find out factor affecting purchase of four wheelers in Rajkot city.

The duration of the project is 4th and 5th Trimester of PGDM Programme. We have to

submit this project at the end of 5th Trimester. It’s an individual project on the topic relevant to

the major specialization subject.

For this project, first we have to find out the topic with the help of magazine, journals or

some short of basic research. Our project guide suggest us appropriate title from our basic

research.

We have to prepare questionnaire to collect primary data from the respondents. I have

collected primary data from the respondents with the help of the questionnaire and analyses

the same in this project. In this report, I have put automobile industry information with help of

secondary data.

After completion of report we can say that there are some factors is influence on

consumer purchase decision like price of car, friend family and colleague, after sales service,

availability of car, mileage, power, safety, technology, ect.

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The satisfaction and joy that accompanies the successful completion of a task is

incomplete without mentioning the name of the person who extended his help and support in

making it a success.

We are greatly indebted to Dr. S.C.Reddy (Dean of MEFGI), my Project Guide and

Mentor for devoting her valuable time and efforts towards my project. We thank her for being

a constant source of knowledge, inspiration and help during this period of making project.

The creative input from the entire our collage facilities were responsible to completion

of the project. It is with a deep sense of gratitude that we would like to acknowledge with

thanks the resource, full service and support rendered by librarian at Marwadi education

foundation group of institutions.

DECLARATION

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As Capstone Project is a part of Partial Fulfillment of PGDM Programme, we have taken our project on “Indian Automobile industry: Factor affecting purchase of four wheelers”.

We hereby declare that we have gathered relevant information by my own sources and my worked for the same project is so original and i have not tried for any malpractices. I ensure that we have not taken any published reports. I got conclusion by our combined and effective work. There was no scope of any type of copying by outer sources.

Hetal shah

EXECUTIVE SUMMARY

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Competitive pressures and increasing complexity have led automotive companies to

look for an edge wherever they can find it. Improved consumer insight into vehicle shopping

and buying behavior can provide that valuable advantage. This report contains insight that can

help vehicle manufacturers and dealers develop and execute more effective strategies in areas

such as sales, marketing and advertising, after sales service, Customer Relationship

Management (CRM) and manufacturer/dealer collaboration.

The Indian Automobile Industry is manufacturing over 11 million vehicles and

exporting about 1.5 million every year. The dominant products of the industry are two

wheelers with a market share of over 75% and passenger cars with a market share of about

16%. Commercial vehicles and three wheelers share about 9% of the market between them.

About 91% of the vehicles sold are used by households and only about 9% for commercial

purposes. The industry has attained a turnover of more than USD 35 billion and provides

direct and indirect employment to over 13 million people.

The level of technology change in the Motor vehicle Industry has been high but, the rate

of change in technology has been medium.  Investment in the technology by the producers has

been high. System-suppliers of integrated components and sub-systems have become the order

of the day. However, further investment in new technologies will help the industry be more

competitive. Over the past few years, the industry has been volatile. Currently, India’s

increasing per capita disposable income which is expected to rise by 106% by 2015 and

growth in exports is playing a major role in the rise and competitiveness of the industry.

Tata Motors is leading the commercial vehicle segment with a market share of about

64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.

Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in

the overseas market. Hero Honda Motors is occupying over 41% and sharing 26% of the two

wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the

three wheeler market.

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Consumers are very important of the survival of the Motor Vehicle manufacturing

industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in

demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is

putting a cost pressure on manufacturers and cost is getting transferred to the end consumer.

The price of oil and petrol affect the driving habits of consumers and the type of car they buy.

The key to success in the industry is to improve labour productivity, labour flexibility,

and capital efficiency. Having quality manpower, infrastructure improvements, and raw

material availability also play a major role. Access to latest and most efficient technology and

techniques will bring competitive advantage to the major players. Utilizing manufacturing

plants to optimum level and understanding implications from the government policies are the

essentials in the Automotive Industry of India. 

Both, Industry and Indian Government are obligated to intervene the Indian Automotive

industry. The Indian government should facilitate infrastructure creation, create favorable and

predictable business environment, attract investment and promote research and development.

The role of Industry will primarily be in designing and manufacturing products of world-class

quality establishing cost competitiveness and improving productivity in labour and in capital.

With a combined effort, the Indian Automotive industry will emerge as the destination of

choice in the world for design and manufacturing of automobiles.

 

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Table of Contents1.RESEARCH METHODOLOGY 10

1.1 RESEARCH OBJECTIVE 11

1.2 SCOPE OF STUDY 11

1.3 DATA COLLECTION………………………………………………………………………………………………………………………………………….… 12

1.3.1 Primary Data…………………………………………………………………………………………………………………………………………..12

1.3.2 Secondary Data………………………………………………………………………………………………………………………………………12

1.4 SAMPLING DESIGN………………………………………………………………………………………………………………………………………….… 12

1.4.1Limitation………………………………………………………………………………………………………………………………………………..14

1..4.2litrature review………………………………………………………………………………………………………………………………………15

2.INDUSTRY PROFILE OF AUTOMOBILE INDUSTRY 18

2.1 INTRODUCTION 20

2.2 GROWTH22

2.3 HISTORY OF AUTOMOBILE INDUSTRY…………………………………………………………………………………………………………………23

2.4 OVERVIEW AN INDIAN AUTOMOBILE INDUSTRY…………………………………………………………………………………………….… 26

2.5 KEY PLAYERS………………………………………………………………………………………………………………………………………………………28

2.6 AUTOMOBILE KEY PLAYERS IN INDIA………………………………………………………………………………………………………………….29

2.6.1 Maruti Suzuki……………………………………………………………………………………………………………………………………….….29

2.6.2 Tata Motors…………………………………………………………………………………………………………………………………………….31

2.6.3 Hyundai Motors India………………………………………………………………………………………………………………………….....33

2.6.4 Mahindra & Mahindra…………………………………………………………………………………………………………………………….34

2.6.5 Honda Siel Car India ……………………………………………………………………………………………………………………………….36

2.6.6 Toyota …………………………………………………………………………………………………………………………………………………...38

2.6.7 Ford India ……………………………………………………………………………………………………………………………………………….39

2.6.8 General Motors …………………………………………………………………………………………………………………………………......40

2.6.9 Hindustan Motors …………………………………………………………………………………………………………………………………..41

2.6.10 Skoda Auto India ……………………………………………………………………………………………………………………………….….43

2.6.11 Force Motors ……………………………………………………………………………………………………………………………………....44

2.6.12 Fiat India Automobile ……………………………………………………………………………………………………………………........45

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2.7 SUPPLY CHAIN …………………………………………………………………………………………………………………………………………………...47

2.8 POTENTIAL OF INDIAN AUTOMOBILE INDUSTRY ………………………………………………………………………………………………..48

2.9 SEGMENTATION ……………………………………………………………………………………………………………………………………………..….49

2.9.1 Product and service Segmentation ………………………………………………………………………………………………………...50

2.9.2 Major Market Segmentation ………………………………………………………………………………………………………………….51

2.9.3 Geographical Segmentation ………………………………………………………………………………………………………………..….52

2.9.4 Export and domestic ……………………………………………………………………………………………………………………………....53

3. INDUSTRY ANALYSIS …………………………………………………………………………………………………………………………………………..55

3.1 SWOT Analysis …………………………………………………………………………………………………………………………………………………..56

3.2 PEST Analysis …………………………………………………………………………………………………………………………………………………….58

3.3 Porter Five Force Analysis ………………………………………………………………………………………………………………………………….61

4. MICRO LEVEL ANALYSIS ………………………………………………………………………………………………………………………………………65

5. KEY FINDING ……………………………………………………………………………………………………………………………………………………….98

6. RECOMMENDATION OR SUGGESTION ………………………………………………………………………………………………………………101

7. CONCLUSION …………………………………………………………………………………………………………………………………………………….103

BIBLIOGRAPHY ……………………………………………………………………………………………………………………………………………….105

ANNEXURE ………………………………………………………………………………………………………………………………………………………..106

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RESEARCH METHODOLOGY

Research objective

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Objectives

Find out factor affecting purchase of four wheelers in automobile

industry

My research objective understands what are the factor affecting the purchase of four wheelers in Gujarat region. So purpose of this research is to know the factor affecting the purchase of four wheelers in particular in city Rajkot.

Scope of study

The Research study conducted herewith is restricted to the market of Rajkot and Rajkot

only.

This research project is part of my study. I learned lot of during this research work so

this is one of best advantage for me and this opportunity is given by our institute. This research

is importance for other who is connected with automobile sectors because of this report they

will know about consumer behavior, consumer perception about particular product.

Improved consumer insight into vehicle shopping and buying behavior can provide that

valuable advantage. Capgemini’s Cars Online report contains insight that can help vehicle

manufacturers and dealers develop and execute more effective strategies in areas such as sales,

marketing and advertising, after sales service, Customer Relationship Management (CRM) and

manufacturer/dealer collaboration.

Data collection

(A) Primary data:

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I collect primary data from some people who are living in Rajkot I went and

meet them personally and I mail some of my friend and ask about which factor

affect when they want to buy car.

Primary data was collected personally through structured questionnaire.

Data collection method- Personal interview with a questionnaire containing

some open and close ended questions

(B) Secondary data:

Secondary data is very help full to industry analysis if you want to know about

what happened in industry like growth, statistical data so that secondary data

is very useful.

Secondary data was collected from various sources such as journals,

magazines, websites, books

Sampling design

In our project research we made qualitative method of sampling to reach the

behaviouristic aspects of the customers. We here select the target customer for the project with

the help of convenience sampling which helps us in making exact approach of the consumer

behaviour for the same.

Sample size of the project-100

Research type- Primary analytical research

Limitations

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It was not possible for us to make a survey from whole cities. Those respondents are

taken who are convenient to reach.

Sample size taken is small to cover this vast topic.

Coverage of study- Rajkot

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CONCEPTUALISATION OF MODEL FOR STUDYING CONSUMER

PURCHASE BEHAVIOUR OF PASSENGER CARS

ABSTRACT:

Automobile Industry in India is influenced by the presence of national and multi-

national manufacturers. The presence of many manufacturers and brands in the state

provides many choices to the customer. The current market for car manufacturers has

been transformed from a monopoly of one or two manufacturers in the seventies to

oligopoly of many manufacturers in the current marketing scenario. The main objective

of the research paper is to explore and conceptualize various parameters and develop a

model, which influence the purchase patterns of passenger cars in the State of Kerala.

Thus, the main purpose of this paper is to come up with a model, which shall facilitate

further study on the consumer purchase behaviour patterns of passenger car owners in

the State of Kerala, India. The author intends to undertake further quantitative analysis

to verify and validate the model so developed. The main methods used for this paper are

secondary research on available material, depth interview of car dealers, car financing

agencies and car owners in the city of Cochin, in Kerala State in India. The depth

interviews were conducted with the use of prepared questionnaire for car dealers, car

customers and car financing agencies. The findings resulted in the identification of the

parameters that influence the consumer purchase behaviour of passenger cars and the

formulation of the model, which will be the basis for the further research of the author.

The paper will be of tremendous value to the existing and new car manufacturers both

indigenous and foreign, to formalize and strategies their policies towards an effective

marketing strategy, so as to market their models in the State, which is known for its high

literacy, consumerism and higher educational penetration.

Key Words: Consumer Behaviour Patterns, Customer Loyalty, External Influence,

Brand Community, Family Influence, Customer Satisfaction

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CONSUMER PERCEPTION OF GLOBAL VS. LOCAL

BRANDS:

THE INDIAN CAR INDUSTRY

ABSTRACT:

This study examines consumer perception of global brands vs. local brands in the

Indian car industry. Consumer brand perceptions have substantial implications in

Marketing. The study explores and understands consumer perceptions of global and

local car brands in India by accomplishing the secondary objectives. The secondary

objectives were achieved by highlighting the factors that effect consumer preference for

global brands; by examining the effects of country of origin on consumer perceptions of

global brands and local brands; and by studying the effects of consumer ethnocentrism

towards global brands. For creating a deep understanding of consumers’ insights of

global car brands against local car brands, qualitative approach was adopted with an in-

depth and semi- structured interview process. Interviews as a qualitative tool helped the

researcher to uncover individual’s covert feelings and emotions towards perception of

global brands vs. local brands. The findings of the study advised that the consumers

who possessed global car brands, preferred their car brands due to factors such as global

presence, worldwide reputation, and quality of being a foreign make. Prestige or status

had a very little or no influence in their preference for global car brands. Consumers

made favorable Consumer Perception of Global vs. Local Brands: The Indian Car

Industry .

Key words: Consumer Perception, Global brands, Local brands, consumer

preference, Country-of-origin, foreign brand, globalness, Consumer

ethnocentrism.

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ECONOMIC PERFORMANCE OF INDIAN AUTOMOBILE

INDUSTRY: AN ECONOMETRIC APPRAISAL

ABSTRACT:

Indian automobile industry embarked on a new journey in 1991 with delicensing of the

sector and subsequent opening up for 100 percent FDI through automatic route. In view of

this, the study attempts to estimate the economic performance of Indian automobile industry in

terms of capacity utilization at an aggregate level. It estimates econometrically rate of capacity

utilization in the industry at aggregate level and analyses its trend during the post liberalization

period, 1991-92 to2005-06.The study also tries to assess the impact of various factors

influencing capacity utilization. In this paper, optimal output is defined as the minimum point

on the firm’s short run average total cost curve and the rate of capacity utilization is merely

ratio of its actual output to capacity output level. We use an econometric model to determine

the optimal capacity output. Our result shows that capacity utilization has been improved after

the path breaking economic reforms initiated in 1991 at the rate of around 5 percent per annum

but capacity grows more rapidly than output growth. In view of identifying several factors that

influence capacity utilization, result suggests that coefficient of export-intensity variable,

import penetration ratio are negative which indicate that capacity utilization was relatively

lower in firms belonging to industry characterized by high export-intensity and import

penetration. A positive relationship is found between size and capacity utilization and

similarly between market share and capacity utilization.

Key word: Liberalization, Capacity Utilization, Automobile, Industry.

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Introduction

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Industry Definition

This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle engines.

Products and Services

The primary activities of this industry are:

1. Motor cars manufacturing2. Motor vehicle engine manufacturing

The major products and services in this industry are:

Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles & Multi Purpose Vehicles)

Commercial Vehicles  (Medium & Heavy and Light Commercial Vehicles) Two Wheelers Three Wheelers

The data obtained from ministry of commerce and industry, shows high growth obtained

since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05.

Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was

15.1 per cent the automobile industry grew at a compound annual growth rate (CAGR) of 22

per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of

the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-

component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in

2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

If I tell you about dealer’s model in India In terms of Car dealer networks and authorized

service stations, Maruti leads the pack with Dealer networks and workshops across the

country. The other leading automobile manufacturers are also trying to cope up and are

opening their service stations and dealer workshops in all the metros and major cities of the

country. Dealers offer varying kind of discount of finances who in turn pass it on to the

customers in the form of reduced interest rates.

THE KEY FACTORS BEHIND THIS UPSWING

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The risk of an increase in the interest rates, the impact of delayed monsoons on rural

demand, and increase in the costs of inputs such as steel are the key concerns for the

players in the industry.

The ability of the players to contain costs and focus on exports will be critical for the

performance of their respective companies.

Growth

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The auto component sector has also posted significant growth of 20 per cent in 2003-04,

to achieve a sales turnover of Rs.30, 640 crore (US$ 6.7 billion).

Opposing the belief that the growth in automobile industry has catered only to the top

income-stratum of society, Growth of exports of 32.8 % in the first three quarters of

2004-05, the fastest growth in volumes has come from commercial vehicles as against

passenger cars.

1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times compared to

the 2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to

dominate the volume statistics of the sector.

In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers

produced.

In the two wheeler segment, there is a greater preference for motorcycles followed by

scooters, with both production and domestic sales of motorcycles increasing at faster

rates than for scooters in the current and previous years.

This report study is designed to give automotive companies information that can help them

get a better grasp on changing consumer trends, shopping patterns and demands. Interestingly,

we found significant commonalities among responses across the more mature markets, with

differences still quite apparent in the emerging Chinese automotive market. This report

highlights these results, as well as country-specific differences. The executive summary

provides an overview of key findings from the study, and the sections that follow offer more

in-depth data and analysis on consumer behavior, environmental issues, web usage, lead

management and customer loyalty. The automotive world today is changing; consumers are

changing. And the speed of change is continuing to accelerate.

HISTORY OF AUTOMOBILE

INDUSTRY

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In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first

automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,

military tractor that made the use of a steam engine. The range of the automobile, however,

was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,

these automobiles were not fit for the roads as the steam engines made them very heavy and

large, and required ample starting time. Oliver Evans was the first to design a steam engine

driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and

1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were

amongst the first to invent more applicable automobiles, making use of non-rechargeable

electric batteries in 1842. Development of roads made travelling comfortable and as a result,

the short ranged, electric battery driven automobiles were no more the best option for

travelling over longer distances.

Charles Kettering's invention of the electric starter in 1912 turned the process of starting

automobiles faster and easier at the same time, doing away with the hand tools. Crude oil

being discovered in Texas, the automobiles driven by engines that ran on gasoline became

even more affordable, as the prices of gasoline reduced. The prices of electric automobiles

were going through a constant rise, in spite of the fact that these were less efficient than the

gasoline automobiles.

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Jean Joseph Etienne Lenoir was the first to invent an internal combustion engine that

ran on petroleum and attached it to a three-wheeled carriage, and successfully traversed a

distance of fifty miles in 1863.

Karl Benz manufactured the first automobile ( a three-wheeled car) that was affordable

and compatible for travelling over long distances for its internal combustion engine that ran on

gas, in 1886.Later in 1887, Gottlieb Daimler was the first to invent the predecessor of the

modern automobile with an engine that had a vertical cylinder in addition to a gasoline driven

carburetor. First building a two-wheeled automobile (“Reitwagen”). Daimler was again the

first to build a four-wheeled automobile in 1886. The engines manufactured by Daimler were

improved upon and these portable and fast engines made automobiles the way we see them

today.

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The advanced engines turned the slow, expensive automobiles of the yesteryears, a thing of the

past, and cars became more affordable as both the prices of gasoline and petroleum as well as

the manufacturing costs reduced through their mass manufacture at the assembly lines of

factories. Penhard and Levassor in 1889, and Peugeot in 1991 became the earliest mass

manufacturers of the modern automobiles.

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Starting its journey from the day when the first car rolled on the streets of Mumbai in

1898, the Indian automobile industry has demonstrated a phenomenal growth to this day.

Today, the Indian automobile industry presents a galaxy of varieties and models meeting all

possible expectations and globally established industry standards. Some of the leading names

echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and

Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of

others.

During the early stages of its development, Indian automobile industry heavily

depended on foreign technologies. However, over the years, the manufacturers in India have

started using their own technology evolved in the native soil. The thriving market place in the

country has attracted a number of automobile manufacturers including some of the reputed

global leaders to set their foot in the soil looking forward to enhance their profile and

prospects to new heights. Following a temporary setback on account of the global economic

recession, the Indian automobile market has once again picked up a remarkable momentum

witnessing a buoyant sale for the first time in its history in the month of September 2009.

The automobile sector of India is the seventh largest in the world. In a year, the country

manufactures about 2.6 million cars making up an identifiable chunk in the world’s annual

production of about 73 million cars in a year. The country is the largest manufacturer of

motorcycles and the fifth largest producer of commercial vehicles. Industry experts have

visualized an unbelievably huge increase in these figures over the immediate future. The

figures published by the Asia Economic Institute indicate that the Indian automobile sector is

set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest

exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the

Overview of Indian Automobile industry

26

year 2050, India will top the car volumes of all the nations of the world with about 611 million

cars running on its roads.

At present, about 75 percent of India’s automobile industry is made up by small cars,

with the figure ranking the nation on top of any other country on the globe. Over the next two

or three years, the country is expecting the arrival of more than a dozen new brands making

compact car models.

Recently, the automotive giants of India including General Motors (GM), Volkswagen,

Honda, and Hyundai, have declared significant expansion plans. On account of its huge market

potential, a very low base of car ownership in the country estimated at about 25 per 1,000

people, and a rapidly surging economy, the nation is firmly set on its way to become an

outsourcing platform for a number of global auto companies. Some of the upcoming cars in

the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo

(Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition

to several others.

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Key players

New Hub:

UttaranchalWES

North

East

Sout

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Automobile key players in India

1.Maruti Suzuki India

Market Share: Passenger Vehicles 46.07%

Maruti Suzuki India Limited, a subsidiary of

Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting

for over 45% of the domestic car market.

The company offers a complete range of cars from entry level Maruti-800 and Alto, to

stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports

Utility vehicle Grand Vitara.

Since inception in 1983, Maruti Suzuki India has produced and sold over 7.5 million

vehicles in India and exported over 500,000 units to Europe and other countries.

The company’s revenue for the fiscal 2008-2009 stood over USD 4 billion and Profits after

Tax at over USD 243 million

All cars models of Tata Motors in India

Maruti Suzuki A Star

Price Range:3.60 to 4.38 lakh

Maruti Suzuki Eeco

Price Range: 2.82 to 3.80 lakh

Maruti Suzuki Estilo

Price Range: 3.27 to 4.14 lakh

Maruti Suzuki Grand Vitara

Price Range: 16.94 to 18.27 lakh

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Maruti Suzuki Gypsy

Price Range: 5.44 to 5.63 lakh

Maruti Suzuki Alto

Price Range: 2.32 to 3.28 lakh

Maruti Suzuki Kizashi

Price Range: 16.50 to 17.50 lakh

Maruti Suzuki New Swift

Price Range: 4.22 to 6.48 lakh

Maruti Suzuki Omni

Price Range: 2.05 to 3.28 lakh

Maruti Suzuki swift

Price Range: 4.95 to 7.30 lakh

Maruti Suzuki Ritz

Price Range: 4.03 to 5.47 lakh

Maruti Suzuki SX4

Price Range: 7.00 to 9.01 lakh

Maruti Suzuki Wagon R

Price Range: 3.36 to 4.21 lakh

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2.Tata motors

Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%

Tata Motors Limited is India’s largest automobile

company, with consolidated revenues of USD 14 billion in

2008-09. It is the leader in commercial vehicles and

among the top three in passenger vehicles.

Tata Motors has winning products in the compact, midsize car and utility vehicle segments.

The company is the world's fourth largest truck manufacturer, and the world's second

largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata

Motors as has produced and sold over 4 million vehicles in India.

Tata Motors is the first company from India's engineering sector to be listed in the New

York Stock Exchange (September 2004), has also emerged as an international automobile

company.

Through subsidiaries and associate companies, Tata Motors has operations in the United

Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business

comprising the two British brands which was acquired in 2008.

In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second

largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has

launched several new products in the Korean market, while also exporting these products to

several international markets.

Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata

Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed

Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.

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In 2006, Tata Motors formed a joint venture with the Brazil-based Marco polo, a global

leader in body-building for buses and coaches to manufacture fully-built buses and coaches

for India and select international markets.

In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant

Company of Thailand to manufacture and market the company's pickup vehicles in

Thailand.

The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck,

with the Xenon having been launched in Thailand in 2008.

Tata Motors is also expanding its international footprint by franchises and joint ventures

assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.

With over 3,000 engineers and scientists, the company's Engineering Research Centre,

established in 1966, has enabled pioneering technologies and products.

In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development

which signifies a first for the global automobile industry. Nano brings the comfort and

safety of a car within the reach of thousands of families. The standard version has been

priced at USD 2,200 or Rs.100, 000 (excluding VAT and transportation cost). The Tata

Nano has been subsequently launched as planned, in India in March 2009.

All cars models of Tata Motors in India

Tata Motors Aria

Price Range: 11.58 to 16.13 lakh

Tata Motors Indica

Price Range: 3.33 to 3.33 lakh

Tata Motors Indica eV2

Price Range: 2.99 to 5.04 lakh

Tata Motors Indica Vista

Price Range: 3.88 to 6.11 lakh

Tata Motors Indigo Manza

Price Range: 5.44 to 7.73 lakh

Tata Motors Indigo XL

Tata Motors Xenon

Tata Motors Sumo Grande

Tata Motors New Indigo eCS

Tata Motors Safari

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Price Range: 5.57 to 6.74 lakh

Price Range: 9.13 to 10.11 lakh

Price Range: 7.30 to 8.39 lakh

Price Range: 4.54 to 5.89 lakh

Price Range:8.19 to 12.56 lakh

3.Hyundai motors India

Market Share: Passenger Vehicles 14.15%

Hyundai Motor India Limited is a wholly owned

subsidiary of world’s fifth largest automobile

company, Hyundai Motor Company, South Korea,

and is the largest passenger car exporter.

Hyundai Motor presently markets 49 variants of passenger cars across segments. These

includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+

segment, the Accent and the Verna in the C segment, the Sonata Transform in the E

segment.

Hyundai Motor, continuing its tradition of being the fastest growing passenger car

manufacturer, registered total sales of 559,880 vehicles in the year 2009, an increase of

14.4% over 2008.

In the domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863

units, while overseas sales grew by 10.7%, with export of 270,017 units. Hyundai Motor

currently exports cars to more than 110 countries across European Union, Africa,

Middle East, Latin America and Asia. It has been the number one exporter of passenger

car of the country for the sixth year in a row.

In a little over a decade since Hyundai has been present in India, it has become the

leading exporter of passenger cars with a market share of 66% of the total exports of

33

passenger cars from India, making it a significant contributor to the Indian automobile

industry.

In 2009, in spite of a global slowdown, Hyundai Motor India’s exports grew by 10.7%.

In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to

the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports

to Australia are expected to be in the region of 15,000 per annum.  

All cars models of Hyundai in India

Hyundai Accent

Price Range: 5.03 to 5.03 lakh

Hyundai EON

Price Range: 2.70 to 3.72 lakh

Hyundai i10

Price Range: 3.55 to 5.96 lakh

Hyundai i20

Price Range: 4.59 to 7.60 lakh

Hyundai Santa Fe

Price Range: 21.46 to 24.37 lakh

Hyundai Verna

Price Range: 7.00 to 10.90 lakh

Hyundai Sonata

Price Range: 14.65 to 17.15 lakh

Hyundai Santro Xing

Price Range: 2.81 to 3.92 lakh

4.Mahindra & Mahindra

34

Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three

Wheelers 1.31%

Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three

Wheeler segments directly. The company competes in the Light Commercial Vehicle

segment through its joint venture subsidiary Mahindra Navistar Automotives Limited

and in the passenger car segment through another joint venture subsidiary Mahindra

Renault.

In the year 2009, on the domestic sales front, the Company along with its subsidiaries

sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light

Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through

Mahindra Renault), recording a growth of 0.6% over the previous year.

The company’s domestic Multi Utility Vehicle sales volumes increased by 3.3%, as

against a decline of 7.4% for industry Multi Utility Vehicle sales.

A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in

2009 compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra

further strengthened its domination of the domestic Multi Utility Vehicle sub-segment

during the year, increasing its market share to 57.2% over the previous year’s market

share of 51.3%.

Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the

Xylo was launched in South Africa. The company formed a new joint venture Mahindra

Automotive Australia Pty. Limited, to focus on the Australian Market.

(Source: Mahindra & Mahindra Annual Report)

All cars models of Mahindra in India

Mahindra New Bolero

Price Range: 6.28 to 6.91 lakh

Mahindra Scorpio

Price Range: 7.59 to 12.40 lakh

Mahindra Thar

Price Range: 6.36 to 6.36 lakh

35

Mahindra Xylo

Price Range: 7.38 to 9.47 lakh

Mahindra Verito

Price Range: 4.64 to 6.72 lakh

Mahindra XUV 500

Price Range: 10.80 to 12.80 lakh

5. Honda siel car India

Honda Siel Cars India Ltd., (HSCI) was incorporated

in December 1995 as a joint venture between Honda

Motor Co. Ltd., Japan and Siel Limited, a Siddhartha

Shriram Group company, with a commitment to

providing Honda’s latest passenger car

models and technologies, to the Indian

customers.

The total investment made by the

company in India till date is Rs 1620

crores in Greater Noida plant and Rs

784 crores in Tapukara plant.

HSCI’s first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997.

The green-field project is spread across 150 acres of land (over 6, 00,000 sq. m.).

36

The annual capacity of this facility is 100,000 units. The company’s second manufacturing

facility is in Tapukara, Rajasthan.

This facility is spread over 600 acres and will have an initial production capacity of 60,000

units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility

was inaugurated in September 2008.

The company’s product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic

and Honda Accord which are produced at the Greater Noida facility with an indigenization

level of 80%, 77%, 76%, 74% and 28% respectively.

The CR-V is imported from Japan as Completely Built Units. Honda’s models are strongly

associated with advanced design and technology, apart from its established qualities of

durability, reliability and fuel-efficiency.

All cars models of Honda in India

Honda Accord

Price Range: 19.61 to 26.00 lakh

Honda Brio

Price Range: 3.95 to 5.10 lakh

Honda Civic

Price Range: 12.22 to 14.42 lakh

Honda CR V

Price Range: 22.64 to 24.88 lakh

Honda Jazz

Price Range: 5.50 to 6.06 lakh

Honda New City

Price Range: 6.99 to 10.22 lakh

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6.Toyota

Towards the end of the nineteenth century, Sakichi Toyoda

invented Japan's first power loom, revolutionizing the

country's textile industry.

January 1918 saw him create the Toyoda Spinning and

Weaving Company, and with the help of his son, Kiichiro

Toyoda, Sakichi fulfilled his lifelong dream of building an automatic loom in 1924.

The establishment of Toyoda Automatic Loom Works followed in 1926. Kiichiro was also

an innovator, and visits he made to Europe and the USA in the 1920s introduced him to the

automotive industry. With the £100,000 that Sakichi Toyoda received for selling the patent

rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation,

which was established in 1937. One of the greatest legacies left by Kiichiro Toyoda, apart

from TMC itself, is the Toyota Production System.

Kiichiro's "just- in-time" philosophy - producing only precise quantities of already ordered

items with the absolute minimum of waste - was a key factor in the system's development.

Progressively, the Toyota Production System began to be adopted by the automotive

industry across the world. Rising from the ashes of industrial upheaval in post-war Japan,

Toyota has become the largest vehicle manufacturer in Japan with over 40% market share.

Toyota is number one for customer satisfaction in the majority of European countries and

has built an excellent reputation across Europe for reliability and customer service.

This enviable reputation, along with the support of a network of more than 25 distributors

and 3,500 sales outlets, are important factors in supporting Toyota's European sales growth

in the coming years.

38

All cars models of Toyota in India

Toyota Camry

Price Range: 21.58 to 23.73 lakh

Toyota Corolla Altis

Price Range: 10.53 to 14.83 lakh

Toyota Etios

Price Range: 4.99 to 7.87 lakh

Toyota Fortuner

Price Range: 20.15 to 20.15 lakh

Toyota Innova

Price Range: 8.61 to 12.81 lakh

Toyota Prado

Price Range: 53.28 to 53.28 lakh

Toyota Liva

Price Range: 3.99 to 5.99 lakh

Toyota Land Cruiser

Price Range: 86.02 to 87.58 lakh

7.Ford India

The modern Ford India Private Limited

began production in 1996, although the

roots trace back to 1907 when the Model

A was launched.

Its manufacturing facilities are in

Maraimalai Nagar near Chennai. Ford

India Private Limited began production in 1926, but was shut down in 1954.

Production began again with the joint venture Mahindra Ford India Limited (MFIL) in

October 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford Motor Company

39

increased its interest to 72% in March 1998 and renamed the company Ford India Private

Limited.

FIPL's main manufacturing plant has a capacity of 100,000 vehicles annually and is located

in Maraimalai Nagar, 45 km from Chennai. As its new hatchback Figo was launched in

March 2010, Ford Motor Company has invested $500 million to double capacity of the

plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines

annually.

All cars models of Ford in India

Ford Endeavour

Price Range: 17.07 to 19.73 lakh

Ford Fiesta

Price Range: 8.25 to 10.44 lakh

Ford Fiesta Classic

Price Range: 5.50 to 8.20 lakh

Ford Figo

Price Range: 3.71 to 5.73 lakh

8.General motors

General Motors began doing business in India in 1928,

assembling Chevrolet cars, trucks and buses, but ceased its

assembly operations in 1954. GM continued with tie-ups with

Hindustan Motors to build Bedford trucks, Vauxhall cars, Allison

Transmissions and off-road equipment.

In 1994 GMIPL was formed as a joint venture, owned 50 percent by Hindustan Motors and

50 percent by General Motors, to produce and sell Opel branded vehicles. GM bought out the

40

Hindustan Motors interest in 1999.[1][2] GMIPL continued to produce Opel cars at the Halol

facility until 2003, when it started production of Chevrolet vehicles at that location.

In 2000, GMIPL moved its headquarters to Gurgaon. In 2003, the company opened its

technical center operations in Bangalore, which included research and development and

vehicle engineering activities. The technical center operations were expanded to include

purchasing and financial support services for General Motors operations located outside of

India (2006), vehicle engine and transmission design and engineering (2007) and a vehicle

design studio (2007).

GMIPL began construction of a second vehicle assembly plant in Talagaon in 2006, which

began production of Chevrolet vehicles in September 2008.

In late 2009, General Motors announced that it would put its India operation into a 50-50

venture with Shanghai Automotive Industry Corporation of China, which is the partner of

GM's main venture in China.

BRAND NAME

1. Chevrolet Optra (Launched 2003)

2. Chevrolet Tavera (Launched 2004)

3. Chevrolet Aveo (Launched 2006)

4. Chevrolet Aveo U-VA (Launched 2006)

5. Chevrolet Spark (Launched 2007)

6. Chevrolet Captiva (Launched 2008)

7. Chevrolet Cruze (Launched 2009)

8. Chevrolet Beat (Launched 2010)

9.Hindustan motors

41

Hindustan Motors Limited, the flagship venture of the multi-billion-dollar CK Birla Group,

was established during the pre-Independence era at Port Okha in Gujarat.

Operations were moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the

company began the production of the iconic Ambassador.

Equipped with integrated facilities such as press shop, forge shop, foundry, machine shop,

aggregate assembly units for engines, axles etc and a strong R&D wing, the company

currently manufactures the Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and

LPG variants) in the passenger car segment and light commercial vehicle 1-tonne payload

mini-truck HM-Shifeng Winner (1500 cc diesel) at its Uttarpara plant.

The first and only integrated automobile plant in India, the Uttarpara factory, popularly

known as Hind Motor, also manufactures

automotive and forged components.

The armoring division under Hindustan Motors

Finance Corporation Ltd., a fully owned

subsidiary of HM, is also based out of the Uttarpara

plant. It is one of the leading bullet-proof

fabricators for Ambassador Cars and

Mitsubishi Pajero.

The company also has operations in Pithampur near Indore in Madhya Pradesh where it

produces 1800 cc CNG variant of Winner. Hindustan Motors has technical

collaboration with Mitsubishi Motors Corporation of Japan and, under this

license, produces premium passenger cars viz. Lancer,  Pajero, Cedia,

Montero, Outlander and Lancer Evolution X (Evo X) at its third plant situated at Tiruvallur

near Chennai in Tamil Nadu.

Cars models of Hindustan Motors in India

Hindustan Motors Ambassador

Price Range: 5.00 to 6.43 lakh

42

10. Skoda auto India

Skoda Auto India Private Limited, more commonly

referred to as Skoda Auto India, established November

2001,is a fully owned subsidiary of the Czech automotive

manufacturer Skoda Auto and a division of Volkswagen

Group Sales India.

According to an official release, Skoda Auto India sold more than 16,000 units in 2008, a

28.5% increase from 2007 sales totals. Furthermore, SAIPL is aiming to become the

strategic hub in South and Eastern Asian markets for the Skoda Auto marque, by exporting

its locally produced products to Nepal, Sri Lanka and Thailand. As of April 2009, it has

sold over 61,000 units since operations began in November 2001.

S k o d a A u t o I n d i a P r i v a t e L i m i t e d

outskirts of Aurangabad which has an annual capacity of 40,000 vehicles. This Aurangabad

plant is also shared by Audi India to manufacture the Audi A4 and Audi A6 models. It also

uses the Volkswagen India Private Limited plant at Chakan, Maharashtra to manufacture

43

the Skoda Fabia.

All cars models of Skoda in India

Skoda Fabia

Price Range: 4.44 to 6.83 lakh

Skoda Rapid

Price Range: 6.75 to 9.19 lakh

Skoda Superb

Price Range: 18.65 to 26.94 lakh

Skoda Yeti

Price Range:13.46 to 16.89 lakh

Skoda Laura

Price Range: 13.62 to 18.24 lakh

11. Force motors

Force Motors is an Indian manufacturer of three

wheelers, multi-utility and cross country vehicles,

light commercial vehicles, tractors, buses and now

heavy commercial vehicles. It was originally named

Firodia Tempo Ltd. and later after partial acquisition

by Bajaj Auto as Bajaj Tempo Ltd.

The company was founded in 1958 by N.K.Firodia. Abhay N. Firodia is the Chairman and

Prasan Firodia is Managing Director.

Force Motors started production of the Hanseat three-wheeler in collaboration with German

Vidal & Sohn Tempo Werke and went on to establish a presence in the light commercial

vehicles field with the Matador, the proverbial LCV (light commercial vehicle) in India.

Through the 1980s and 1990s, and especially in the last five years with a major product

development effort, Force Motors has introduced new light commercial vehicles, a face

44

lifted series of Tempo Trax utility vehicles, new state-of-the-art tractors, and a new range

of three-wheelers.

The company which mainly operates in commercial vehicle segment entered into Personal

Vehicle segment on 19/08/2013 and launched its first SUV named Force-One. Amitabh

Bachhan , the Indian film industry icon, is the Brand Ambassador for this product.

Cars models of Force Motors in India

Force Motors Force One

Price Range: 10.65 to 10.65 lakh

12. Fiat India automobile

Fiat India Automobiles Limited is a 50-50

Industrial Joint Venture between Fiat Group

Automobiles (Fiat) and Tata Motors Limited

(Tata) originally incorporated on January 02,

1997. The company presently employs about

600 employees and is located at Ranjangaon in

the Pune District of Maharashtra.

The definitive agreement of the Joint Venture was signed on October 19th 2007. The board

of directors for this company comprises of five nominees each from Fiat and Tata.

45

The state-of -the-art facility at Ranjangaon will have an installed capacity to produce

100,000 cars and 200,000 engines, besides aggregates and components. The company plans

to double the production capacity for both car units and engines in the next few years.

This facility is currently manufacturing the Palio Stile 1.1 and 1.6 models, as well as

premium Fiat cars such as the Grande Punto and Linea.

The plant is expected to provide direct and indirect employment to more than 4,000 people

Fiat, which holds a 50% stake in the Company, also owns and controls five internationally

renowned brands:- Fiat Automobiles, Alfa Romeo Automobiles, Lancia Automobiles,

Abarth and Fiat Light Commercial Vehicles, the makers of renowned cars such as the

Ferrari, Maserati, Alfa Romeo and Lancia besides the Fiat branded cars.

Tata Motors Limited, the other partner to the Joint Venture, is the largest automobile

company in India, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is

the leader in commercial vehicles in every segment and the second largest in the passenger

vehicles market with winning products in the compact, mid-size car and utility vehicle

segments.

The company is the world’s fifth largest medium and heavy commercial vehicle

manufacturer and the world’s second largest medium and heavy bus manufacturer

All cars models of Fiat in India

Fiat 500

Price Range:14.83 to 14.83 lakh

Fiat Grande Punto

Price Range: 4.32 to 6.85 lakh

Fiat Linea

Price Range: 6.52 to 9.06 lakh

46

Supply Chain of Automobile Industry:

The supply chain of this industry in India is very similar to the supply chain of the

automotive industry in Europe and America. This may present its own set of opportunities and

threats. The orders of the industry arise from the bottom of the supply chain i. e., from the

consumers and go through the automakers and climbs up until the third tier suppliers.

However the products, as channeled in every traditional automotive industry, flow from the

top of the supply chain to reach the consumers.

Supply Chain

47

There is a very stiff competition in the automobile industry segment in India. This has

helped many to realize their dreams of driving the most luxurious cars. During the recent past,

a number of overseas companies have started grabbing a big chunk of the market share in both

domestic and export sales. Every new day dawns in India with some new launches by active

players in the Indian automobile arena. By introducing some low cost cars, the industry had

made it possible for common men to buy cars for their personal use. With some innovative

strategies and by adopting some alternative remedial measures, the Indian automobile industry

has successfully come unaffected out of the global financial crisis.

While the automobile industry in India is the ninth largest in the world, the country

emerged as the fourth largest automobiles exporter on the globe following Japan, South Korea

and Thailand, in the year 2009. Over and above, a number of automobile manufacturers based

in India have expanded their operations around the globe also giving way for a number of

reputed MNCs to enthusiastically invest in the Indian automobile sector.

Nissan Motors has revealed its prospective plans to export 250,000 vehicles produced in

its India plant by the year 2013. General Motors has also come up with similar plans.

During the current fiscal year, the Indian automobile industry rode high on the

resurgence of consumer demand in the country as a result of the Government’s fiscal stimulus

and attractively low interest rates. As a result the total turnover of the domestic automobile

industry increased by about 27 per cent.

A reply produced in the Lok Sabha recently has quoted data from the Society of Indian

Automobile Manufacturers and has revealed that the total turnover of the Indian automobile

Industry in April-February 2009-10 was 1,62,708.77 crore.

Potential of Indian automobile industry

48

This is a remarkable achievement compared with the total revenue of Rs 1, 28,384.53

crore reported during the same period of last fiscal year. Specifically, the segment of

commercial vehicles witnessed the biggest jump in revenues by 31 per cent by reporting Rs

38,845.09 crore. During the same period, the passenger vehicle segment in the country

witnessed a growth of 27 per cent over the last fiscal year by reporting total revenue of Rs

76,545.96 crores. These figures imply a highly prospective road lying immediately ahead of

the Indian automobile industry.

Predictions made by Ernst and Young have estimated that the Indian passenger car

market will have a growth rate of about 12 percent per annum over the next five years to reach

the production of 3.75 million units by the year 2014. The analysts have further stated that the

industry’s turnover will touch $155 billion by 2016. This achievement will succeed in

consolidating India’s position as the seventh largest automobiles manufacturer on the globe,

eventually surging forth to become the third largest by the year 2030 behind China and the US.

The Automotive Mission Plan launched by the Indian government has envisaged that

the country will emerge as the seventh largest car maker on the globe thereby contributing

more than 10 percent to the nation’s $1.2-trillion economy.

Further, industry experts believe that the nation will soon establish its stand as an

automobile hub exporting about 2.75 million units and selling about a million units to be

operated on the domestic roads.

49

(A) PRODUCT AND SERVICE SEGMENTATION

16%

5%

4%

76%

Product and service segmentation

Passenger vihiclesCommercial VehiclesThree WheelersTwo Wheelers

Source: Society of Indian Automotive Manufacturing (SIAM)

75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold

were motorcycles and about 12% were scoters. Mopeds occupy a small portion in the

two wheeler market however; electric two wheelers are yet to penetrate.

The passenger vehicles are further categorized into passenger cars, utility vehicles

and multi-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall

under passenger cars. Tata Niño is the world’s cheapest passenger car, manufactured

by Tata Motors - a leading automaker of India. Multi-purpose vehicles or people-

carriers are similar in shape to a van and are taller than a sedan, hatchback or a

station wagon, and are designed for maximum interior room.

Utility vehicles are designed for specific tasks. The passenger vehicles

manufacturing account for about 15% of the market in India.

Segmentation

50

(B) MAJOR MARKET SEGMENTATION

industries9%

houeholds91%

Major market segmentation

Source: Society of Indian Automotive Manufacturing (SIAM)

(C) GEOGRAPHICAL SEGMENTATION

The total number of new vehicles registered in the 28 states and 7 union territories of

India in the year 2008 were about 106,591,000.

The diagram above displays the registration of new vehicles in various states and

union territories.  About 16 states and 1 union territory had over a million new

vehicles registered.

Tamil Nadu had about 16 million new vehicles registered, Maharashtra had over 13

million, and Gujarat had over 10 million. About 91% of these vehicles are non-

commercial vehicles purchased by households looking for a two wheeler, or a car.

Only about 9% of new vehicles registered are used for commercial purposes.

About 91% of the vehicles sold in India are use household for their personal use. Less 10% vehicles sold are use for commercial purpose.

51

Details of category wise new vehicle registrations in the various states and union

territories are displayed in Appendix 1. The number of new vehicles registrations has

grown by about 66% in the past five years.

Source: Department of Road Transport & Highways, *ImaginMor estimates

52

(D) EXPORT

India exports automobiles in about 203 countries. Last year, India's automobile

exports had reached $4.5 billion and a consistent export growth rate can be estimated

in the year 2010 also with the estimation that it will cross $12 billion by 2014.

As per the SIAM records automobile exports have under gown a growth of 22.30

percent during the current financial year. United Kingdom is largest export market

for India's automobile industry followed by Germany, Netherlands and South Africa.

In the year 2009-10, India has made a huge profit by exporting 1,804,619 no.

vehicles. Different brands are utilizing the Indian automobile engineering expertise

to manufacture and export maximum no. of vehicles from their Indian plants.

Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by

2013. Similarly, General Motors announced its plans to export about 50,000 cars

manufactured in India by 2013.

Listed below is the statistics showcasing export sales rate of Indian automobile

industry for the year 2009-10.

Particular Export Sales (2009-10)Passenger Vehicles 446,146

Commercial Vehicles 45,007

Three Wheelers 173,282

Two Wheelers 1,140,184

Grand Total 1,804,619

53

Domestic

Even in the domestic market, the automobile industry is experiencing tremendous

success.

As per statistics launched by Society of Indian Automobile Manufacturers (SIAM),

there has been a growth of 32.28% in the domestic car sales, justified from the

January 2010 sales 145,905 units against the 2009 sales of 110,300 units.

The Commercial Vehicles segment grew marginally at 4.07 percent. While Medium

& Heavy Commercial Vehicles declined by 1.66 percent, Light Commercial

Vehicles recorded a growth of 12.29 percent. Listed below is the statistics

showcasing domestic market sales rate of Indian automobile industry for the year

2009-10.

PARTICULER DOMESTIC SALES (2009-2010)

Passenger Vehicles 1,949,776

Commercial Vehicles 531,395

Three Wheelers 440,368

Two Wheelers 9,371,231

Grand Total 12,292,770

54

55

INTERNAL

Strengths

Large domestic market Sustainable labor cost advantage Competitive auto component vendor base Government incentives for manufacturing plants

Weaknesses Low labor productivity High interest costs and high overheads make the production uncompetitive Various forms of taxes push up the cost of production Low investment in Research and Development Infrastructure bottleneck

EXTERNAL

56

Opportunities

Commercial vehicles: SC ban on overloading Heavy thrust on mining and construction activity Increase in the income level Cut in excise duties Rising rural demand

Threats

Rising input costs Rising interest rates Cut throat competition

57

Political

• In 2002, the Indian government formulated an auto policy that aimed at promoting

integrated, phased, enduring and self-sustained growth of the Indian automotive

industry

• Allows automatic approval for foreign equity investment up to 100% in the automotive

sector and does not lay down any minimum investment criteria.

• Formulation of an appropriate auto fuel policy to ensure availability of adequate amount

of appropriate fuel to meet emission norms

• Confirms the government’s intention on harmonizing the regulatory standards with the

rest of the world

• Indian government auto policy aimed at promoting an integrated, phased and conductive

growth of the Indian automobile industry.

• Allowing automatic approval for foreign equity investment up to 100% with no

minimum investment criteria.

• Establish an international hub for manufacturing small, affordable passenger cars as

well as tractor and two wheelers.

• Ensure a balanced transition to open trade at minimal risk to the Indian economy and

local industry.

• Assist development of vehicle propelled by alternate energy source.

• Lying emphasis on R&D activities carried out by companies in India by giving a

weighted tax deduction of up to 150% for in house research and R&D activities.

• Plan to have a terminal life policy for CVs along with incentives for replacement for

such vehicles.

• Promoting multi-model transportation and the implementation of mass rapid transport

system.

58

Economic

The level of inflation Employment level per capita is right.

• Economic pressures on the industry are causing automobile companies to reorganize

the traditional sales process.

• Weighted tax deduction of up to 150% for in-house research and R & D activities.

• Govt. has granted concessions, such as reduced interest rates for export financing.

• The Indian economy has grown at 8.5% per annum.

• The manufacturing sector has grown at 8-10 % per annum in the last few years.

• More than 90% of the CV purchase is on credit.

• Finance availability to CV buyers has grown in scope during the last few years.

• The increased enforcement of overloading restrictions has also contributed to an

increase in the no. of CVs plying on Indian roads.

• Several Indian firms have partnered with global players. While some have formed joint

ventures with equity participation, other also has entered into technology tie-ups.

Social• Since changed lifestyle of people, leads to increased purchase of automobiles, so

automobile sector have a large customer base to serve.

• The average family size is 4, which makes it favorable to buy a four wheeler.

• Growth in urbanization, 4th largest economy by ppp index.

• Upward migration of household income levels.

• 85% of cars are financed in India.

• Car priced below USD 12000 accounts for nearly 80% of the market.

• Vehicles priced between USD 7000-12000 form the largest segment in the passenger

car market.

59

• Indian customers are highly discerning, educated and well informed. They are price

sensitive and put a lot of emphasis on value for money.

• Preference for small and compact cars. They are socially acceptable even amongst the

well off.

• Preference for fuel efficient cars with low running costs.

Technological• More and more emphasis is being laid on R & D activities carried out by companies in

India.

• Weighted tax deduction of up to 150% for in-house research and R & D activities.

• The Government of India is promoting National Automotive Testing and R&D

Infrastructure Project (NATRIP) to support the growth of the auto industry in India

• Technological solutions helps in integrating the supply chain, hence reduce losses and

increase profitability.

• Internet makes it easy to collect and analyse customer feedback

• With the entry of global companies into the Indian market, advanced technologies, both

in product and production process have developed.

• With the development or evolution of alternate fuels, hybrid cars have made entry into

the market.

• Few global companies have setup R &D centers in India.

• Major global players like Audi, BMW, Hyundai etc have setup their manufacturing

units in India.

60

Porter’s Five Forces of Competition framework views the profitability of an industry as

determined by five sources of competitive pressure. These five forces of competition include

three sources of “horizontal” competition: competition from substitutes, competition from

entrants, and competition from established rivals; and two sources of “vertical” competition:

the bargaining power of suppliers and buyers. The strength of each of these competitive forces

is determined by a number of key structural variables

Competition from Substitutes

The price customers are willing to pay for a product depends, in part, on the availability

of substitute products. The absence of close substitutes for a product, as in the case of

automobiles, means that consumers are comparatively insensitive to price (i.e., demand is

inelastic with respect to price). The existence of close substitutes means that customers will

switch to substitutes in response to price increases for the product (i.e., demand is elastic with

respect to price).

The extent to which substitutes limit prices and profits depends on the propensity of

buyers to substitute between alternatives. This, in turn, is dependent on their price performance

61

characteristics. The more complex the needs being fulfilled by the product and the more

difficult it is to discern performance differences, the lower the extent of substitution by

customers on the basis of price differences.

Rivalry between Established Competitors

For most industries, the major determinant of the overall state of competition and the

general level of profitability is competition among the firms within the industry. In some

industries, firms compete aggressively – sometimes to the extent that prices are pushed below

the level of costs and industry-wide losses are incurred. In others, price competition is muted

and rivalry focuses on advertising, innovation, and other non price dimensions. Six factors

play an important role in determining the nature and intensity of competition between

established firms: concentration, the diversity of competitors, product differentiation, excess

capacity, exit barriers, and cost conditions.

Threat of Entry

If an industry earns a return on capital in excess of its cost of capital, that industry acts as a

magnet to firms outside the industry. Unless the entry of new firms is barred, the rate of profit

will fall toward its competitive level. The threat of entry rather than actual entry may be

sufficient to ensure that established firms constrain their prices to the competitive level.

Economies of Scale – Since Indian automobile market is of order $ 350 billion; the economies of scale

are very high. Thus, threat of new entrants is low.

Product Differences – Since there is hardly any difference in the offerings of the various providers, so

product differentiation is low. So threat of new entrants is high.

Brand Identity – Since there is no big Retailer like Amazon.com or Wal-Mart in India. So threat of

new entrants is high.

Government Policy – Since the Government Policy has been quite restrictive till now with respect to

the Retail market & FDI, so threat of new entrants is low.

62

Capital Requirements – The capital requirements for entering in the automobile sector are

substantially high (high fixed cost and cost of infrastructure), so only big names can think of venturing

into this area so, in that respect threat of new entrants is low.

Access to distribution – Since in India there is no well established distribution network. So threat of

new entrants is low.

Bargaining Power of Buyers

The firms in an industry operate in two types of markets: in the markets for inputs and the

markets for outputs. In input markets firms purchase raw materials, components, and financial

and labor services. In the markets for outputs firms sell their goods and services to customers

(who may be distributors, consumers, or other manufacturers). In both markets the transactions

create value for both buyers and sellers. How this value is shared between them in terms of

profitability depends on their relative economic power. The strength of buying power that

firms face from their customers depends on two sets of factors: buyers’ price sensitivity and

relative bargaining power.

Product Differences – Since there is hardly any difference in the offerings of the various providers, so

product differentiation is low. So bargaining power of buyers is high.

Buyer Information – Today’s customers are well educated about the various product offerings in the

sector. So bargaining power of buyers is high.

Buyer Switching Costs – Since customers don’t have to pay a fat premium to be registered for

provision of services, so bargaining power of buyers is high.

Brand Identity – High Brand Identity and trustworthiness reduce the bargaining power of buyers but,

otherwise the bargaining power of buyers is high.

Buyer Profits – Since dealers offers discounts and various bundling services like 0% insurance, old

car sale, etc, on different items. Hence bargaining power of buyers is high.

63

Bargaining Power of Suppliers

Analysis of the determinants of relative power between the producers in an industry and

their suppliers is precisely analogous to analysis of the relationship between producers and

their buyers. The only difference is that it is now the firms in the industry that are the buyers

and the producers of inputs that are the suppliers. The key issues are the ease with which the

firms in the industry can switch between different input suppliers and the relative bargaining

power of each party.

Product Differences – Since there is hardly any difference in the offerings of the various suppliers, so

product differentiation is low. So bargaining power of Suppliers is low.

Supplier Information – Today’s automobile manufacturers are well educated about different

Suppliers. So bargaining power of Suppliers is low.

Supplier Switching Costs – Since different Suppliers hold resources as per buyer’s requirements and

a large inventory has to be maintained. So bargaining power of Suppliers is low as they would have to

incur a huge cost on switching. But if they get automobile manufacturers for similar products who can

pay higher Supplier switching cost is low. In such case, bargaining power of Suppliers is high.

Brand Identity – High Brand Identity and Trustworthiness of a Supplier increases the bargaining

power of Suppliers. But, otherwise the bargaining power of suppliers is low.

64

65

Demographic profile of respondents:

Age

Below18 18-25 26-36 36-50 51 above

Age 2 47 40 6 5

2.5

7.5

12.5

17.5

22.5

27.5

32.5

37.5

42.5

47.5

Age

y

Interpretation

As per analysis there are 100 respondents with different age group is classified in five

categories.

Out of them two categories highly responded one is 18-25 which is 47% and 26-36

which is 40%.

Gender

Sample Size 100

66

84%

16%

Gender

MaleFemale

Occupation

Business CA Lawyer Professor Service Student Worker0

5

10

15

20

25

30

35

40

20

4 5

16 15

39

1

Occupation

Interpretation

We can see here the Business, Student, Professor and Service man respondent ratio is

high as compare to other respondent.

67

Qualification

Graduate HSC Post graduate SSC PHD0

10

20

30

40

50

60

70

21

8

67

31

Qualification

Interpretation

As per analysis of above chart mostly respondent are educated so that they may be

aware about automobile industry.

As per above chart out of 100 respondent 67% are post graduate, 21% graduate and 1%

PHD

Section 2

68

Q-1 Do you think that when people purchase car, there is an influence of family on the buying decision?

Yes No0

20

40

60

80

100

120

Do you think people purchase car that influence of family buying decision

Do you think people purchase car that influence of family buying decision

Interpretation

Hear 100% respondent say that people purchase car that influence of family buying

decision.

Q-2 How many Members are there in your family?

69

2 3 4 5 6 7

Family Member 6 19 32 26 14 3

2.5

7.5

12.5

17.5

22.5

27.5

32.5

Family MemberY

Interpretation

In the above chart I found that 19%, 32% and 26% are respondent have 3, 4 and 5 family members respectively in their family and only 6% have 2 family member in their family so we can say that people who are live with joint family or large family mostly their requirement is to purchase car. So that factor influence to purchase car decision.

Q-3 what new car did you buy?

Interpretation

Following chart shows that which new car people did purchase so I found that out of

100 respondents people mostly prefer Maruti Swift, Alto, Wagon R, Manza and Zen.

As per given data in chart 21% people have Swift, 15% people have Alto, 6% people

have Wagon R and Manza. So I analyze that current scenario demand of car is increase.

70

Alto

BMW

Camery

Ferrari

Chevy

Hundie

Fiat

Ford Fiesta

Honda Accord

Honda Civic

Honda City

i10

i20

Manza

Swift

Maruti800

Neno

Opera

Skoda

Indigo

Varena

Vento

Wagon R

Zen

Not Purchase Car

0 5 10 15 20 25

15

2

1

3

1

1

4

1

3

2

1

4

4

6

21

4

2

1

2

1

1

1

6

9

4

No.Of Car

71

Q-4 which of the following information source did you uses to

find out about the car you brought and other consideration?

3% 3%

68%

2%

15%8%

1%

Information Source

Car MagazineTV programs Friends, Relatives, ColleagueNews paper ArticleInternatDealer sales staff Motor shows/ Exhibition

Interpretation

In current scenario information source is very important for people to got knowledge.

There are many information sources available in market for any information.

If people wants to buy car so that they want to take decision on the basis of information

source like Internet, Car magazine, Dealer staff, News paper, Advertising media on TV,

friends, relatives, colleague est.

so as per above chart I found 68% of people brought car on reference of friend, relatives

and colleague 15% and 8% go through internet and dealer sales staff respectively and

remaining 3%, 2% and 1% go through car magazine, TV programs, news paper article

and Motor Exhibition.

So we can say that mostly people go through friends, relatives and colleague because

peoples only trust on that people who are near him and there are more chances to gate

right information to right person.

72

Q-5 which source is most appropriate for you give first three ranks?

Car Magazine

TV programs

Friends, Relatives, Colleague

News paper Article

Internat

Dealer sales staff

Motor shows/ Exhibition

12

12

59

2

13

1

0

5

2

29

10

41

6

7

27

16

2

9

18

19

7

Chart TitleRank 3 Rank 2 Rank 1

Interpretation

As per above chart analysis 59% people give 1st ranks and 29% people give 2nd ranks

of friend and family. After that 13% people give 1st ranks of internet and 41% give 2nd

ranks of internet. TV Programs and car magazine also gate good rank from people.

So we can say that mostly people go through Friends, family, internet, car magazine and

TV programs because may be it is suitable source of information.

73

Q-6 According to you, which Factors are affecting for the car purchase decision?

1.Price of car

26%

69%

5%

Price of Car

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Interpretation of above chart we find that 69% of peoples are agree and 26% people are

strongly agree that price of car is one of the factor to influence purchase decision.

Remaining 5% people are Neutral however we seen that overall 95% people are agree

with price of the car is one of the factor to influence purchase decision.

74

2. You Take Suggestions From Your Family Members

78%

17%

5%

Suggestion From Your Family Member

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Current scenario family play vital role to take decision. If you want to purchase any

item from market family member always involve that matter to take decision and

suggestion, especially for children. Mostly children influence to purchase anything from

market.

As per above data 78% people strongly agree and 17% people agree that suggestion

from family member is influence people to purchase decision.

So we can say family member’s suggestion is most influence to take purchase decision

of car.

75

3. Family Need

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

Family Need

Family Need

Interpretation

We seen family member graphical analysis that19%, 32% and 26% are respondent have

3, 4 and 5 respectively family members in their family so this type of joint family may

be require car.

As per above graphical analysis there are 69% people agree and 7% strongly agree with

that family need is one of the factor to influence to take decision making to purchase of

car so we can say most of the people are agree with that.

4. Status Symbol

7%

69%

24%

76

3%

27%

61%

5%4%

Status Symbol

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

As per data given above graphical chart there are 27% people are agree and 3% people

are strongly agree so overall 30% people are agree that status symbol influence on

people to take purchase decision for car.

61% people are Neutral they don’t go with neither agree nor disagree so that we can say

status symbol is not influence to take purchase decision of car.

77

5. Brand Name

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

50

Brand Name

Brand Name

10%

48%

30%

12%

Interpretation

As per graphical chart we seen that 48% of people agree and 10% people are strongly

agree so overall 58% of people are agree that brand name is the factor to influence

consumer to purchase car.

Other side 30% people are neutral and 12% are disagree however there are two sides of

coin every person have different perception even else on the basis of graphical analysis

we can say brand name is factor to influence to take decision to purchase car.

78

6 Income level

13%

17%

66%

3% 1%

Income Level

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Income level is one of demographic factor. We can seen here that out of 100

respondents 66% people go through neutral they don’t believe in income level that

affects to decision.

Only 30% people is agree out of that 13% is strongly agree that income level is one of

the demographic factors which influence on consumer buying behavior.

So that we can say some people believe however mostly people are neutral, those people

are believe that some time it’s may be affect some time may not.

7 Festival Season/Offers

79

6%

61%

24%

7%2%

Festival Season/Offers

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Our Indian society is very familiar with good culture and different festival which is

celebrated here. During festival season Company provide many offers for customer so

it’s influence to customer purchase particular product.

As per above chart 61% people is agree and 6% people is strongly agree that festival

season and offer are influence to take decision to purchase car.

24% people believe that festival season and various offer are not that much influence to

take decision weather car purchase or not.

As per above data we can say mostly people believe that festival season and various

offer are influence to purchase car.

80

8 Special Family Programs/Events like Anniversary, Birthday

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

Special Family Programs

Special Family Programs

62%

23%

10%

Interpretation

Interpretation of above chat I found that 62% people are agree 23% people go through

neutral and 10 people are disagree so we can say mostly people believe that special

family programs is one of factor to influence purchase car.

One of the reasons is that during this special family Programme like Event, Birthday.

During that day people wants to give gifts.

9 Friends

Interpretation

As per following chart analysis 65% people agree that friend circle is one of factors to

influence to purchase car and remaining 24% are neutral. So as per data we can say that

friend is influence to take decision.

81

2%

65%

24%

6%

3%

Friend Circle

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

10 Advertisement and promotion

24%

43%

21%

10%2%

Adv. & Pro.

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Current scenario we seen that advertising and promotion is most suitable factor for any

company because advertisement is one of the factor to increase sales of product and

service. I read one article from 4 P’s of marketing in this article mention that 86%

advertise given on television, 7% given on internet and remaining are others. So we

understand that what the importance of advertisement for company is.

As per above chart 43% peoples are agree and 24% peoples are strongly agree that

advertisement is one of the factor which affect consumer buying decision.

82

21% people are neutral and remaining 12% are disagree however most of the people

believe that advertisement and promotion is factor influence people to purchase

decision.

11 After sales service

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 5 10 15 20 25 30 35 40

11

31

18

37

3

After Sales Service

Interpretation

As per above information there are 37% peoples are disagree and 3% are strongly

disagree. 31% peoples are agreed and 11% peoples are strongly agreed that after sales

service is influence customer. So hear ratio of agree and disagree is equal (40%)

Remaining 18% people are neutral.

After sales service is important for each and every customer however it’s not that much

influence to people to take decision on that base.

So we can say after sales service is not factor to influence people to take decision.

12 installment Payment facility

83

Strongly Agree

Agree Neutral Disagree Strongly Disagree

0

5

10

15

20

25

30

35

40

45

Installment Payment Facility

Installment Payment Facility

41%

24%

18%

9%

Interpretation

As per above char 41% peoples are disagree and 9% peoples are strongly disagree.

Only 18% peoples are agreed and 7% people are strongly agreed that installment

payment facility is one of factor that influences people buying decision.

However mostly people can’t believe this things so we can say that installment payment

facility is not affect purchase decision of customer.

13 Insurance Facilities

84

Interpretation

As per above

chart we found

that only 25%

are people

are agree and

6% people are strongly agree that insurance facility is influence to take consumer

buying decision. However 36% people are disagree and 13% people are strongly

disagree that insurance facility is not influence on buying decision so we can say that

mostly people disagree that insurance facility is not a factor to influence consumer

buying decision.

14 Location of the car dealer shop

6%25%

20%

36%

13%

Insurance Facility

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

85

2%

20%

24%

30%

24%

Location

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

As per chart analysis I find that 20% people are agree, 24% people are neutral, 30%

people are disagree,24% people are strongly disagree.

Over all 54% people are disagree so we can say location of car dealer shop is not a

factor which influence on consumer buying decision.

15 Home delivery facilities

86

4%10%

15%

50%

21%

Home Delivery

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Above given data 14% (10% agree and 4% strongly agree) people are agree that home

delivery facility is influence on customer to purchase decision. However there are 71%

(50% disagree and 21% strongly disagree) people are not agree that home delivery

facility is influence buyers.

So we can say most of the people are disagree and so that home delivery facility is a

factor not influence on buying decision.

16 Credit Card Acceptances

Interpretation

As per following char 45% disagree and 19% strongly disagree so we can say credit

card acceptance is a factor which is not influence in peoples buying decision.

87

Strongly Agree Agree

NeutralDisagree

Strongly Disagree

05

1015202530354045

Credit card

Credit card

20%

12%

45%

19%4%

17 Information provided by sales person

Strongly AgreeAgree

NeutralDisagree

Strongly Disagree

0

5

10

15

20

25

30

35

40

5

40

2025

10

Series 1

Interpretation

As per above chart 40% people are agree and 5% people are strongly agree, 25% people

are disagree and 10% are strongly disagree, 20% people are neutral.

So we can say mostly people are believe that information provided by sales person is

may be influence on peoples buying behavior.

88

18 Show rooms have verity of car

4%

75%

15% 5%1%

Column1

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

as per data given above that 75% people are agree and 4% people are strongly agree that

show room have verity of car is affect customer decision.

Only 5% people are disagree this things so we can say most of the people agree that

show room have verity of car is one factor that influence peoples buying decision

because some time it’s happened that consumer go to show room but there are not car

available which consumer wants. Customer shows every aspect in product color, looks,

est.

89

19 Information Provided various car related

magazine

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

80

Series 1

Series 1

76%

14%

4%5% 1%

Interpretation

As per above chart 4% people are disagree and 14% people is neutral so they don’t

think that car related magazine is influence to people in purchase decision.

However most of the people believe that that influence like above chart 76% people are

agree and 5% people are strongly agree that information provided by various car related

magazine is influence to people buying decision.

90

20 Mileages

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

68

23

6

2

1

MileageMileage

Interpretation

Mileage is important for every customer when customer go to any show room they first

will see car model and then after they want know about Mileage, average, capacity to

carry ect.

Hear 23% people are agreed and 68% people are strongly agreed that mileage is factor

to influence to people in their buying or purchasing decision.

So hear most of the people go through agree and strongly agree so we can say that

mileage is actor to influence to people in purchase decision.

91

21. Powers

51%

40%

5% 4%

Power

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

As per above data out of 100 respondent 51% people are strongly agree and 40% people

are agree that power s is also one of the factors is influence to people in their purchase

decision.

22. Looks

Interpretation

As per following chart 65% people are strongly agree and 28% people are agree so we

can say overall 93% people are agree that looks of car is also important for people who

buy car.

So we can say looks is also one of the factor to influence people to purchase decision of

car.

92

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

70

Looks

Looks

65%

28%

4% 2% 1%

23 Safeties

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

0 10 20 30 40 50 60 70 80

71

23

2

2

2

Safety

Interpretation

All human being need safety anywhere so why not in car?

That’s why 71% people are strongly agreed and 23% people are agreed. So mostly

people believe that safety is one of the factor that influence people to buying decision.

24. Car Accessory

93

20%

64%

9%7%

Car Accessory

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

As per above data 64% people are agree and 20% people are strongly agree, 9% people

are neutral, 7% people are disagree.

So we can say the many people believe that car accessory is factor to influence people

to purchase decision.

25 Easy Availability of spare part

Interpretation

As per following chart 52% people are agree and 13% people are strongly agree that

availability of spear part is influence people to purchase decision.

28% people are disagree, 6% are neutral however most of the people are agree so we

can say that availability of spear part is influence people purchase decision.

94

Strongly Agree Agree Neutral Disagree Strongly Disagree

0

10

20

30

40

50

60

Series 1

Series 1

13%

52%

6%

28%

1%

26 Availability of Service station

Strongly Agree Agree Neutral Disagree Strongly Disagree0

10

20

30

40

50

60

24

55

17

2 2

Series 1

Interpretation

Ones you purchase car then after you want to go to service station if you face any

difficulty so service station is require. As per above data 55% are agree, 24% people are

strongly agree, 17 neutral and remaining are disagree.

95

So most of the people believe that service station is require and that influence on people

to purchase decision.

27 Technologies

49%

39%

6%5%

1%

Technology

Strongly AgreeAgreeNeutralDisagreeStrongly Disagree

Interpretation

Current scenario technology is increasing day by day and implementation of new

technology also increases. People want to go through better technology. We seen that

there are many car come up with new technology and that influence people.

As per above chart analysis 49% people are strongly agree and 39% people are agree

that technology is also one of the factor to influence people to buying behavior.

5% only disagree however most of the people agree that so we can say technology is

influence customer purchase decision.

28 Overall, I am satisfied with my own car

96

Strongly Agree Agree Neutral Disagree Strongly Disagree0

10

20

30

40

50

60

70

80

76

18

31

2

Series 1

Interpretation

We analyze all factor over hear some factor agree for people some disagree for people

however people fist think about their family member. They try to do that family member

should satisfy that sit.

So we can see chart that almost people agree and strongly agree there are 76% people is

strongly agree and 18% people are agree so we can say that family member satisfied

their own car.

97

98

KEY FINDINGS

When it comes to making their final decision about which vehicle to buy, consumers focus

on factors such as reliability, safety, and price and fuel economy. There are following some

key finding that influence to car purchase decision.

The role of family is most important during vehicle buying decision because that’s only

decided that we want purchase or not. The decision processes and acts of final

household consumers associated with evaluating, buying, consuming, and discarding

products for personal consumption

The role of the Internet during the vehicle buying process is becoming increasingly

important as web usage for both purchasing and research has increased. The number of

Indian consumers researching online reached 95 percent in 2013 up from 86 percent in

2010.

After sales servicing is growing as a factor in vehicle decisions. Servicing is taking on a

bigger role for many consumers with after sales service climbing up the list of important

factors in choosing a vehicle. In addition, servicing can influence future buying

decisions. In vehicle service contracts, Indian customers focus on extended warranty

and vehicle insurance, followed by customer care.

Price of car, Mileage, Power, Safety, Car accessory is also growing as factors in vehicle

decision. Because this are the basic requirement of every customer.

Advertisement and promotion, Information provided by sales person, show room have

variety of car, car related magazine all are information source is best factors to help

consumer decision making.

Technology is also influence to customer to take decision making.

99

Overall, various internal and external factors like extra care facilities, location of the

shops, various information provided by car dealers, advertisement and print media

promotions, features of the car in all are contributing in making car purchasing

behaviour of customers.

100

101

RECOMMENDATION OR SUGGESTION

After completion of this project I find out some factor which is influence customer to

their purchase decision however some factor are also there that customer are not

satisfied with them like. Installment Payment Facility, Insurance Facility, Home

Delivery Facility, Credit Card Acceptance, Easy Availability of Spare Parts ect.

So that It is important for the car manufacturers and car dealers to be able to understand

the different factors which is not satisfy and that much influence customer so I would

like to suggested them to improve up to customer need.

102

103

CONCLUSION

Since Indian Automobile market is continuously in the prowl of surging as a major car

manufacturer, people are purchasing car as there is increase of income of common people as

well as change in tastes and preferences of consumers. It is important for the car manufacturers

and car dealers to be able to understand the different factors affecting the extent in car

purchasing behaviour. The factor analyses results indicate that factor which consists of

Information provided by salesperson; safety; easy availability of spare parts, technology are

affecting the car purchasing behavior. People are more conscious about the on spot

information provided about various cars who serves according to the needs and wants of the

customer. The type of technology used and the wider reach of the service stations also affect

the most on car purchasing decision. Another factor like includes family needs; brand image;

income level; special family programs/events like Anniversary, Birthday, location of the car

dealer shop; looks; availability of service station showing customers accessibility to the

service provided. Also affect the most on car purchase decision.

Overall, various internal and external factors like extra care facilities, location of the

shops, various information provided by car dealers, advertisement and print media promotions,

features of the car in all are contributing in making car purchasing behaviour of customers.

104

BIBLIOGRAPHUY

Website:

www.Capgemini online.

www.Indian automobile industry

www.Caronline

Various Link:

Overview of Indian automobile industryhttp://www.entrepreneurswebsite.com/2010/05/26/automobile-industry-in-india/

overview statisticshttp://www.automobileindustryindia.com/resources/overview-of-indian-automobile-industry.html

Import Export Datahttp://www.imaginmor.com/automobileindustryindia.html

Major Players In Markethttp://auto.indiamart.com/auto-industry/http://www.economywatch.com/indian-automobile-industry/top-players.html

Brand different companyhttp://www.cardekho.com/allcar/brands

Porter five forcehttp://porters-5-forces.blogspot.com/2013/11/porters-5-forces-in-automobile-industry.htm

Questionnaire

105

I am Hetal Shah Student of PGDM from Marwadi Education Foundation Group of Institutions conducting a research on “factor affecting the purchase of four wheelers for consumer decision”. I assure you that data given by you will be used only for research purpose.

Personal Information:

Name:_____________________________________________________ Gender_________________

Age

Below18 18-25 26-35 36-50 51 and above

Occupation

Service Business Student Housewife

Qualification

HSC under Graduate Graduate Master Degree other

Annual Income

Up to 2 lack Rs. 2 lack to 5 lack Rs. 5 lack to 10 lack Above Rs. 10 lack

Section II

106

(1) Do you think that when people purchase car, there is an influence of family on the buying decision? If yes then continue with the 3rd question or else move on to question 2nd

Yes No

(2) If no, what are the other factors that have an influence on the purchase of 4-wheeler?__________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

(3) How many Members are there in your family?

2 3

4 5

6 7

8 9

(4) (A) What new car did you buy?____________________________________________________

(B)Month/Year of purchase. _______________________________________________________

(5) Which of the following information source did you use to find out about the car you brought and other consideration (tick as many as appropriate and then give rank three most important source)

SOURCE OF INFORMATION TICK RANK THE 3 MOST IMPORTANT TO YOU

Car Magazine

TV programs

Friends, Relatives, Colleague

News paper Article

Internat

Dealer sales staff

Motor shows/ Exhibition

(6) According to you which of these Factors are Affecting Car Purchasing Decision in particular two cities Rajkot and Rajkot. Please fill according to instruction in bracket given below

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(SA-Strongly Agree; A-Agree; N-Neutral; DA-Disagree; SDA-Strongly Disagree)

Sl.No Statements Strongly Agree

Agree Neutral Disagree Strongly Disagree

1. Price Of The Car

2. You Take Suggestions From Your Family Members

3. Family Needs

4. Status Symbol

5. Brand Name

6. Income Level

7. Festival Season/Offers

8. Special Family Programs/Events Like Anniversary, Birthday

9. Friend Circle

10. Advertisements And Promotions

11. After Sales Service

12. Installment Payment Facility

13. Insurance Facility

14. Location Of The Car Dealer Shop

15. Home Delivery Facility

16. Credit Card Acceptance

17. Information Provided By Salesperson

18. Show room have verity of car

19. Information Provided By Various Car Related Magazines

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20. Mileage

21. Power

22. Looks

23. Safety

24. Car Accessories

25. Easy Availability Of Spare Parts

26. Availability Of Service Station

27. Technology

28. Overall, I Am Satisfied With My Car I Own

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