CHAPTER I INTRODUCTION 1.

1 INTRODUCTION ABOUT THE CAR MARKET Car Market in India The first car rolled onto the Indian Roads in the year 1898 and since then announced the onset of the Indian automobile market or as can be said, the Car Market in India. Initially, the car market in India did not experience much boom but with intervention of the favorable government policies the automobile market in India and car market in India, specifically, have seen great developments. Car Markets in India experiences growth The liberation policy of the Indian government has encouraged several foreign investors to come in and invest generously in the automobile market. Decrease in the rate of duties for small cars has also encouraged a significant boom in the automobile industry. By noticing the trend of car buyers, sellers and manufacturers, it has been stated that the car market in India can be ranked the third largest car market in the world after China and USA. Indian automobile market has seen a brighter prospect to grow in India today than what it used to be in the past with some unfavorable government issues. Reasons for the growth of Car Market in India The reasons for a vital growth in the car market in India are many. A good network of roads and transportation system that has emerged recently in India has definitely added to the growth in the car market. While observing it from the economy point of view, it is noticed that with the growth in the GDP, per capita income and high ownership capacity which are a result of several foreign companies coming in, has led to a

significant rise in the lifestyle of the people residing in the country and earning a livelihood from the several foreign companies that has come in and consequently this high standard of living has given the car market an attention, which in turn is growing with time and is sure to scale newer heights in time to come. Growth of car markets in India is also the result of shedding of the geographical limitations through the intervention of media. Openness to the greater world has given people an idea and a desire for owing cars which are technologically modern and technically better and definitely improved. Car market in India is sure to experience growth and rise for the fact that India now operates as a nodal point for various car manufacturers which are originally foreign companies but have rested their faith on the fact of developing the India as a car manufacturing ground with man power easily available which is turn is definitely in a motion to eradicate the unemployment scenario of the country. 1.2 HISTORY OF CARS, EVENTS & MILESTONES The birth of the cars as we know it today occurred over a period of years. It was only in 1885 that the first real car rolled down on to the streets. The earlier attempts, through successful were steam powered road-vehicles. The first self-propelled car was built by Nicolas country in 1769 which could attain speeds of upto 6kms / hour. In 1771 he again designed another steam-driven engine which ran so fast that it rammed into a wall, recording the worlds first accident. In 1807 Francois Isaae de Rivaz designed the first internal combustion engine. This was subsequently used by him to develop the worlds first vehicle to run on such an engine, one that used a mixture of hydrogen and oxygen to generate energy. This spawned the birth of a number of designs based on the internal combustion engine in the early nineteenth century with little or no degree of

commercial success. In 1860 thereafter, Jean Joseph Etienne Lenox built the first successful two-stroke gas driven engine. In 1862 he again built an experimental vehicle driven by his gas-engine, which ran at a speed at 3kms/hour. These cars became popular and by 1865 could be frequently espied on the loads. The next major leap forward occurred in 1885 when the four stroke engine was devised. Gottileb Damn Lier and Nicolas Otto worked together on the mission till they feel apart. Daimler created his own engines which he used both for cars and for the first four wheels horseless carriage. In the mean while, unknown to them, Kael Benz, was in the process of creating his own advanced tri-cycle which proved to be the first true car. This car first saw the light of the day in 1886. 1.3 Ford Many auto giants that launched new products in this segment are trying to make changes in their strategies. Ford India has projected demand for midsize cars at 80,000 this year, which amounts to about 30 percent increase. The season of experiments continued across the season in the United States where Henry Ford began work on a horseless carriage in 1890. he went several steps forward and in 1896, computed his first car, the Quadricycle in 1896. This was an automobile powered, by a two cylinder gasoline engine. The Ford Motor company was launched in 1903 and in 1908 he catapulted his vehicle, Model Ford to the panicky of fame. Continuing with his innovations, he produced. This model on a moving assembly line, thus introducing the modern mass production techniques of the automobile industry. The modern car, there fore comes from a long list of venerated ancestor, and lineage will, hopefully grown longer as progress. MAIN CAR PLAYERS IN INDIA

Hyundai Hyundai has also been balancing its Santro and Accent within the existing capacity constraint and is biting for respite through operating a third shift. In a couple of months Hyundai expects to sell beyond the break- even of 70,000 cars and Ratan Tata has indicated that India project would reach the level in the year 2002. Daewoo and Honda expect to get closer this year, achieving break even in 2001-2002. During 1999-2000 the passenger car industry crossed the 600000 units mark. Passenger car sales during the financial year 1999-2000 increased to 639000 units as compared to 410000 units in the previous year. According to society of Indian Automobiles Manufacturers, Maruti Udyog registered a 21.8 percent growth at 3.98 Lakh cars but its market share dipped sharply to 62.2 percent during the year compared to 80 percent in 1998-1999. Global leaders such as General Motors and Mercedes Benz recorded negative sakes during the reviewed period. Multi-utility vehicles registered a 10.5 percent increase in sales at 1.23 Lakh during 1999-2000 as compared to 1.11 Lakh recorded in the previous year. Tata Motors: Tata Motors Limited is Indias largest automobile company. Its name comes first in the category of commercial vehicles and the second largest in the passenger vehicles, midsize car and utility vehicle segments. The company is the worlds fifth largest medium and heavy commercial vehicle manufacturer. Over 3.5 million Tata vehicles is moving on Indian rods, since1954. its manufacturing plant is located at Jamshedpur, Pune, and Lucknow 1.4 About Maruti Suzuki December 1983 heralded a revolution in the Indian car industry. Maruti collaborated with Suzuki of Japan to produce the first affordable car for the average Indian. At this time, the Indian care market has stagnated at a volume

of 30,000 to 40000 cars for the decade ending 1983. This was from where Maruti took over The sales figure for the year 1993 reached up to 196820. the company reached a total production of one million vehicles in March 1994 becoming the First Indian company to cross this milestone. It crossed the two jillion mark in 1997. Indias largest automoble company Maruti entered the Indian car market with the avowed aim to provide high quality, fuel-efficient, low-cast vehicles. Its cars operate on Japanese technology, adapted to Indian conditions and Indian car users. Maruti comes in a variety of models in the 800 segments. To fend off growing competition, Maruti has completed a RS. 4 billionexpansion project at the current site, with has increased the total production capacity to over 3,20,000 vehicles per annum. It has further plans to modernize the existing facilities and to expand its capacity by 1,00,000 units in the year 1998-99. The total production of the company will exceed 4,00,000 vehicles per year. In the small car segment it produces the Maruti 800 and the Zen. The big car segment includes the Maruti Esteem and the maruti1000. Inspite of all the competition in the Indian market, Maruti Suzuki has maintained its edge over its rivals and Maruti and continue to be the best selling in the Indian market. The huge domestic car market where small cars are still preferred over costly big cars, Maruti Alto is the best selling fourwheeler. After the economic liberalization policies of the Indian government in the early 1990 s, foreign carmakers came running to the emerging and highly potential Indian car market. It was a great opportunity for those companies to get access to the Indian market, especially after markets in the developed countries had largely saturated. Of late Indian consumers have seen a huge number of both small and luxury cars coming to the country. Car companies have come up with cars loaded with advanced technology and efficient agencies with the rising

spending power of the Indian middle class and growing economy car sales have risen steadily. Even luxury cars have seen constant demand among the upwardly mobile people. Maruti Suzuki has been the market. Leader for long. In spite of all the competition from new car companies like Honda, Hyundai Chevrolet fiat etc. it has maintained its lead over rivals. New car makers have come up with highly successful models like Honda city, Chevrolet spark and Hyundai Santro. Hyundai particularly has tasted success and has become No.2 passenger car company in the country after Maruti. However all this competition has failed to displace Maruti from its leadership position. Competition has pushed Maruti to come up with better products. The company has responded well to the challenge by launching new and improved Maruti Cars. The maker of the best seller Maruti Alto, has recently come up with A-star. Models: Product Maruti 800-Ac Maruti 800-Std Maruti Alto-LX Maruti Alto-LXI Maruti Alto Std Maruti - Baleno-LXI Maruti - Baleno-VXI Maruti - Dzire-Diesel Maruti - Dzire-Petrol Maruti - Esteem-LX Maruti - Esteem-LXI Maruti - Esteem VXI Maruti - Grand Vitara Maruti - Gypsy Maruti - Omni Maruti - Swift-LXI Price (in lakhs) 2.1 1.9 2.7 2.9 2.3 5.8 6.6 5.6 4.6 4.3 4.6 4.5 23 5.2 2.5 4 Engine capacity Segment Small cars Small cars Small cars Small cars Small cars Sedan Sedan Sedan Sedan Sedan Sedan Sedan Sports utility Vehicle Jeep Van Sedan

3CYL 796 CC 3CYL 796 CC 3CYL 796 CC 3CYL 796 CC 3CYL 796 CC 4CYL 1590 CC 4CYL 1590CC 4CYL1248MIET-CR 4CYL 1298CC 4CYL 1298CC 4CYL 1298CC 4CYL 1298CC V62736CC 4CYL 1298CC 3CYL 796CC 4CYL 1298CC

Maruti - Swift-VXI Maruti - Swift-ZXI Maruti - SX4 Maruti Versa-DX Maruti Versa-DX2 Maruti Versa-Std Maruti WagonR AX Maruti WagonR-LX Maruti Wagonr-LXI Maruti WagonR-VXI Maruti Zen-LX MarutiZen-LXI MarutiZen-VXI
1.5

4.3 5.1 7 4.3 4.7 4.3 4.6 3.3 3.5 3.7 3.76 4 4.22

4CYL 1298CC 4CYL 1298CC 4CYL 1298CC 4CYL 1298CC 4CYL 1298CC 4CYL 1298CC 4CYL 1061CC 4CYL 1061CC 4CYL 1061CC 4CYL 1061CC 4CYL 993CC 4CYL 993CC 4CYL 993CC

Sedan Sedan Van Van Van Van Van Van Van Van Small Car Small car Small car

COMPANY PROFILE:

The company: AR.A.S. P.V.P.V & Co. Introduction Dealership facility remains the most crucial touch point between the brand owner and its customers in the business of selling cars. Dealership requires a dynamic focus on fulfilling and exceeding customers needs and expectations. AR.A.S., P.V.P.V & Co started its automobile business in 1930 with the dealership for Ford cars and Trucks Chryster, Plymouth, Dodge, Morris and Hindustan Motors. They have taken MARUTI Dealership in August 1996 Sri. P.V. Jambukesan the former CEO of the company joined in 1956 after an 18 month postgraduate training in U.K. His brothers son Sri.C. Jawahar is the present CEO. In 2005, the new firm AR.A.S. , P.V.P.V Automobiles was formed with the Dealership of MARUTI car sales for Tirunelveli and Nagercoil area. The partners of this firm are 1. Mr. C. Jawahar 3. Mrs. J. Sumathi - Managing Partner/ CEO. - Wife of Mr. C. Jawahar 2. Mrs. C. Senthamil Selvi - Mother of Mr. C. Jawahar

AR.A.S. ,P.V.P.V & Co is also functioning as the sister concern of AR.A.S. ,P.V.P.V Automobiles. AR.A.S. ,P.V.P.V & Co Perhaps it is not an easy switch from agriculture and dealing in timber to automobile trade-but, way back in 1930, when a novel product like an automobile inspired more awe than commercial ambition AR.A.S. founders did just that. And took up the dealership for Ford cars and trucks. Sri A. R.A. Shenbaga Nadar was a busy timber dealer in Madurai, Tirunelveli and Tuticorin. His son-in-law, Sri P.V.P Valasubramania Nadar, a progressive agriculturist from a family of businessman, joint him in forming AR.A.S., P.V.P.V. & Co. a venture that was to grow in to their present company. 1930 founding of AR.A.S., P.V.P.V. & Co. at Madurai and Tirunelveli as dealer for Ford motors and trucks. 1935 took franchisee for Chrysler products: Plymouth, dodger, DeSoto and Chrysler cars. 1947 Extension to Palayamkottai. 1957 Dealership for Hindustan cars. 1996 Dealership for Maruti cars.

Maruti Udyog Limited Dealership The Maruti Udyog Limited Dealership was given to AR.A.S.,P.V.P.V & Co., Tirunelveli in August 1996 is 13 years old, but with an experience that spans six decades. Location and Excellent performance AR.A.S.,P.V.P.V & Co., firm is situated in the main through fare of the town with an approximate area of about 54505 sq.ft. the vehicle show room has an enviable frontage of about 100 ft. which conditioning, illumination and piped music. All the different car models are displayed and supplemented with demo cars easily available to the customers. Sales manager who has been in the company for nearly 30 years and his team are to be credited on their excellent performance in achieving the Maruti All India No.1 dealer award in customer satisfaction index for sales for 2 consequent years 1997 and 1998. best performance SSI in 2001- 2002, 2002-2003. The spare parts section is adjoining the showroom with good accessibility for counter customers and workshop use. A separate godown is provided for stocking body and other heavy spares. The staff have a good rapport with customers, other unauthorized workshops in Tirunelveli area. The company have a 10 bay workshop suitably manned by an experienced hand an experienced team of a works manager, service advisors, supervisors and mechanics. The workshop is well equipped and has facilities like inspection pits, two post lift, wheel alignment bay, wheel balancing bay and engine tuneup bay. Separate body repairs section with 6 bays and painting is available. The front office and the customer lounge over look the workshop and is air condition with TV, pantry and toilets. The average service load is about 650 vehicles per month. The company staffs are the assets for that company. Many of them are with the company for decades and all of them are given an opportunity to rise within the organization. Participation in management through suggestions for

improvement in encouraged and promptly rewarded with higher responsibility and better work opportunities. Maruti Finance Customers are given required credit facilities supported by the Maruti Finance, Maruti has tied up with 8 finance companies to form a consortium. They are Citicomp Maruti, Maruti countrywide, ICICI, HDFC bank, Standard Chartered, ABNAMRO, Kodak, Mahindra and Mahindra Sundaram Finance. Maruti Finance offers low rates of interest. Maruti Insurance In case of an accident in a different city the customers still have access to Marutis nation wide network of dealer workshops that will help him through insurance claims. 1.6 CUSTOMER FRAMEWORK Customer Satisfaction - Introduction Customer satisfaction is a term generally used to measure a customer perception of a companys products and services. Its not a straight forward science however, as customer satisfaction will vary from person to person, depending on a whole host of variables which may be both psychological and physical. The challenge for companies in recent years has been to measure those perceptions. Measurement usually makes use of feedback of some kind. Customers are asked to respond to a set of questions or statements using a 4 to 5 point scale. The customer completes the survey by evaluating the service they have received in terms of their perception and expectations. SATISFACTIONTHEORETICAL

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Companies can compare the completed surveys with previous surveys to see if they are improving or getting worse, or benchmark their satisfaction survey results with that of other companies. The ultimate aim of measuring customer satisfaction must be to act on the information gathered close the gaps between the customers perception of service and the actual service provided. Recent thinking by leading customer service gurus such as Dr. Ken Blanchard concludes that customers should not be merely satisfied they should be delighted. Thats one more challenge for companies who claim to have achieved 100% customer satisfaction.

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