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INDUSTRY PROFILE

AUTOMOBILE INDUSTRY
The automobile industry has changed the way people live and work. The earliest of modern cars
was manufactured in the year 1895.
Shortly the first appearance of the car followed in India. As the century turned, three cars were
imported in Mumbai (India). Within decade there were total of 1025 cars in the city.
The dawn of automobile actually goes back to 4000 years when the first wheel was used for
transportation in India. In the beginning of 15th century, Portuguese arrived in China and the
interaction of the two cultures led to a variety of new technologies, including the creation of a
wheel that turned under its own power. By 1600s small steam-powered engine models was
developed, but it took another century before a full-sized engine-powered vehicle was created.
Brothers Charles and Frank Duryea introduced the actual horseless carriage in the year 1893. It
was the first internal-combustion motor car of America, and it was followed by Henry Ford.
One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that
featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an
aluminum body.
Chauffeurs usually drove it and emphasis was on comfort and style rather than speed.
During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes.
Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body.
The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more
to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their
predecessor was.

The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires.
The year 1957 brought powerful high-performance cars such as Mercedes-Benz 300SL. It was
built on compact and stylized lines, and was capable of 230 Kmpl (144 mph).This was the Indian
automobile history, and today modern cars are generally light, aerodynamically shaped, and
compact.
AUTOMOBILE INDUSTRY IN INDIA
In the fast moving world with the biggest countries with huge economies India has managed to
be the eleventh in the world for annual production of 2 million units approximately. This sector
in India is growing at a very fast rate and it has crossed China in terms of selling the Units.
In the matter of population India is the second largest country in the world with a population of
1.1 billion. In this respect it is just next to China. But it has a very small land mass as compared
to China. India has become an attraction for car manufacturers around the Globe as a graph of its
ownership of car i.e. 7 per 1000 people.
Automobile industry in India comprises of 13 million direct and indirect employees. It
contributes 3.1% of Indias GDP (nominal) and the valuation of the industry is about US$ 34
billion.
India's motorcycle market with an annual sale of 5 million units is the second largest around the
globe. India has Fourth largest commercial vehicle market, Eleventh largest passenger car
market, fifth largest bus & truck market (by volume) around the globe.
With this growing pace India by 2016 is expected to be the seventh largest automobile market
and by 2030 worlds 3rd largest behind US & China.
Late 1890s is the time when Automobile was introduced in India but it came into existence only
after the independence in 1947. Until 1980s Hindustan Motors and some small manufacturers
Premier Automobiles, Tata Motors, Bajaj Auto, Ashok and Standard Motors held an oligopoly till
the time when Maruti Udyog Suzuki came into existence after the death of the great Indian
politician Sanjay Gandhi who championed the need for a "people's car".

It quickly gained over 50% of the market share. The Maruti 800 became popular because of its
low price, high fuel efficiency, reliability and modern features relative to its competition at the
time.
From the decades in the Indian automotive industry there were only few vehicle models but then
also there is a good lead time to get a car after the booking. So with changing economy,
competition, and urge to grow big we are here with more than 100 Models and every month with
a new model to offer.
Keeping in mind the comfort of the people and their choice the models are prepared.
Performance of vehicle is increasing day by day, its fuel efficiency and reliability has no match
with others around the globe.
Inspite of having manufacturing of major foreign automakers based in India our Indian Domestic
Automobile Companies are leading in the Market.
Tata Motors is the largest commercial vehicle company, Maruti Suzuki is the largest passenger
vehicle company & Hero Honda is the largest motorcycle company in India. Mahindra &
Mahindra, Ashok Leyland and Bajaj Auto are some more leading automobile manufacturers.
Automobile Domestic Sales Trends (Number of Vehicles)
Category

2006-07

2008-09

% change

Passenger Car

882208

1076408

22.01

Total Passenger Vehicles

1143076

1379698

20.7

Total Commercial Vehicles

351041

467882

33.28

Three Wheelers

359920

403909

12.22

Total Two Wheelers

7052391

7857548

11.41

Grand Total

8906428

10109037

13.5

Source: Society of Indian Automobiles Manufacturers.

Maruti Udyog Ltd, the biggest car maker of the country, selling 2, 93,536 vehicles as against
2,43,211 in the corresponding year last year. Having a growth rate of about 20.7 per cent during
April-August, 2009
Mahindra & Mahindra Ltd's (M&M) cumulative sales with exports were 1,06,094 units
compared to 78,144 units in the corresponding period last fiscal during the April-September
having a growth rate of about 35.8 per cent
Honda Siel Cars India Ltd. (HSCI), leading manufacturer of premium cars in India, selling
41,638 units against 35,853 units. Having a growth of 16.1 % in cumulative sales for the period
January to August, 2013.
DaimlerChrysler sold 1,681 units in India from January to August, growth of over 22 per cent
from a year ago.
Car-maker General Motors India (GM), totally owned subsidiary of General Motors Corporation,
reported a 114 % increase in domestic sales during August at 5,817 units against 2,720 units in
the same month last year.
Hero Honda crossed the 2 million unit sales mark during the Jan-Aug period.
Motorbike exports from India have grown to 3 to 21 to 321 units in the April-August period this
fiscal from 2 to 37 to 103 units in the same period last year.
CARS BY PRICE RANGE
Under Rs. 3 Lakhs

Maruti 800, Alto, Omni, Reva , Nano

Rs. 3-5 Lakhs

Ambassador, Fiat Palio, Hyundai Santro, Getz


Chevrolet Opel Corsa
Maruti Zen, Wagon R, Versa, Esteem, Gypsy
Ford Icon & Fiesta
Tata Indica, Indigo XL, Indigo Marina

Rs. 5-10 Lakhs


Chevrolet Swing, Optra Magnum, Tavera
Hyundai Accent, Elantra

Mahindra Scorpio
Maruti Baleno
Toyota Innova
Tata Safari
Mitsubishi Lancer, Mitsubishi Cedia
Honda City ZX
Mahindra Bolero
Hyundai Sonata Embera
Rs. 10-15 Lakhs

Toyota Corolla
Ford Mondeo & Endeavour
Chevrolet Forester
Skoda Octavia & Combi
Honda Civic

Rs. 15-30 Lakh


Honda CR-V
Maruti Suzuki Grand Vitara
Terracan & Tucson, Captiva
Mitsubishi Pajero
Audi A4
Opel Vectra
Honda Accord
Mercedes C Class
Toyota Camry

Major Companies
List of automobile manufacturers in India:
Indian companies
Force Motors:

Force Motors was formerly known as Bajaj Tempo Ltd. Founded in 1958, it is located in Akurdi,
a Pimpri-Chinchwad neighbourhood of Pune, India. They manufacture three wheelers, multi
utility and cross country vehicles, light commercial vehicles, tractors and now heavy commercial
vehicles.
1)
2)
3)
4)
5)

Gama,
Cruiser
Trax
Toofan
Challenger

Ashok Leyland
Ashok Leyland is a commercial vehicle manufacturing company based in Chennai, India. In
1948, Ashok Motors was set up in what was then Madras, for the assembly of Austin Cars. The
Company's destiny and name changed soon with equity participation by British Leyland and
Ashok Leyland commenced manufacture of commercial vehicles in 1955. For over five decades,
Ashok Leyland has been the technology leader in India's commercial vehicle industry, moulding
the country's commercial vehicle profile by introducing technologies and product ideas that have
gone on to become industry norms.
Ashok Leyland has six manufacturing plants - the mother plant at Ennore near Chennai, two
plants at Hosur (called Hosur I and Hosur II, along with a Press shop), the assembly plants at
Alwar and Bhandara.

From 18 seater to 82 seater double-decker buses, from 7.5 tonne to 49 tonne in haulage vehicles,
from numerous special application vehicles to diesel engines for industrial, marine and genset
applications, Ashok Leyland offers a wide range of products.
Hindustan Motors
Hindustan Ambassador
Hindustan Motors is one of the oldest Indian car manufacturers. It is best known for the
Ambassador which has been virtually unchanged for about 30 years. It is still very popular as a

taxi and is widely used by Indian politicians. Many people have come to associate India with
Ambassador and are a prominent part of the Indian landscape.
1)
2)
3)
4)

Trekker (Discontinued)
Landmaster (Discontinued)
Contessa (Discontinued) - 5th Generation Vauxhall Victor
Ambassador - a version of the 1950s Morris Oxford

Mahindra & Mahindra Limited


Mahindra Classic
The automotive section of Mahindra started off when a first batch of seventy five Utility Vehicles
(UVs) was imported in CKD condition from Willys in 1947. It has come a long way, not just
manufacturing Jeeps but also agricultural equipment and light trucks.
1)
2)
3)
4)
5)
6)
7)

Armada (Discontinued)
Voyager Discontinued)
Bolero
Commander
CL
MaXX
Scorpio

Mahindra and Mahindra Classic This was an open jeep with good off roading capabilities, a 4*4
and 4*2 option, huge headlamps and roof mounted lights. ==
Maruti Suzuki
1) Maruti 800
2) Maruti Gypsy
3) 800
4) Omni
5) Maruti Zen (Discontinued, but revived and re-branded as the Zen Estilo)
6) Alto
7) Esteem(Discontinued)
8) Baleno - (Discontinued)
9) Baleno Altutra - (Discontinued)
10) Gypsy
11) Swift
12) SX4

13) WagonR
14) Versa
15) Zen Estilo - First Generation Suzuki MR Wagon
16) Grand Vitara - First Generation Suzuki Grand Vitara
17) Eigo
Multi-national companies
BMW
BMW is manufacturer of prestigious sport sedans that are known for their nimble handling.
BMW enjoys good brand recognition in India, thanks to Indian movies and the rich who have
been importing these cars for decades. It has set up a plant in Chennai, Tamil Nadu, to
manufacture cars locally exclusively for the local market with no plans for export. It set up the
plant to circumvent high import duties.

1) 3 Series
2) 5 Series
3) 7 Series
Fiat
Fiat India has struggled in India since its inception. The Fiat Uno was one of the first products to
be introduced. The Fiat Palio was later introduced and was initially a big hit with its style and
ride comfort coupled with solid build but has slowly lost its sheen due to low fuel efficiency.
Other models were introduced such as the Palio Weekend and Siena. Fiat tried re-branding of the
Fiat Siena to Fiat Petra without much success. It roped in Sachin Tendulkar as one of its brand
ambassadors. Even Michael Schumacher appeared in an ad for the Palio. It has entered now into
an alliance with Tata Motors to jointly manufacture cars at its plant in Ranjangaon, near Pune.
The facility will enable the two companies to make about 200,000 cars per annum, and also
house an engine manufacturing unit with a capacity of 250,000 units per annum. The alliance
will also see Tata Motors use Fiat's diesel technology - the 1.3 litre multijet diesel engine - for its
own vehicles. The two companies also have a distribution and service partnership.
1) Uno(Discontinued)
2) Palio

3)
4)
5)
6)
7)
8)
9)

Palio Stile
Siena(Discontinued)
Siena Weekend (Discontinued)
Petra(Discontinued)
Adventure
Punto
Linea

Ford Motors
Ford entered India in collaboration with Mahindra & Mahindra in 1995 with a major plant in
Tamil Nadu. The first model was the Escort.
Escort (Discontinued) - It was offered with 1.3 Liter petrol termed Alpha and 1.5 Liter Diesel
engine termed Orion, and at a time when the car wars in India had just begun. The diesel version
was fancied by many due to the fact that diesel was available at half the price of petrol
(gasoline/gas) in India at that time. Among the famous owners of the Ford Escort was Azim
Premji who drove a black one for almost eight years until he traded it for a Toyota Corolla. The
Ford Escort 1.8 was ranked the highest in the J.D. Power and Associates 1997 Indian Customer
Satisfaction Study. It was also voted the Best Quality Car in the J.D. Power India Initial Quality
Study.
1) Ikon - Was launched to phase out the Escort, known for the Rocam engine, available with
a choice of petrol and diesel version, the car did well. Ford is known for launching new
versions with some minor cosmetic changes every now and then.
2) Mondeo (Discontinued) - Was Ford's offering to the D segment in India in 2001, was
brought in as a CBU from Belgium with Ghia being the only trim version available. It
was available with both 2.0L Duratorq diesel and 142 bhp 2.0L petrol Duratec engines. It
was the first car to be offered with Xenon HID headlamps in India. It is alleged that the
Mondeo performed better than the 2.3 L Accord available in India at that time. But buyers

stayed away as it was more expensive than the Accord. The diesel version was phased out
in 2003.
3) Endeavour - Sold as the Ford Everest in other parts of Asia and based on the Ranger
pickup, it was offered in both 4X4 and 4X2 options but with only a 2.5 L, 4 Cylinder Inline, Turbocharged & Inter cooled Diesel Engine and manual transmission.
4) Fusion - was launched as an Urban Activity Vehicle available with a 1.6 L , 4 cyl 101 bhp
(75 kW/102 PS) engine with 5 speed manual transmission. In 2007 a diesel version was
launched which has the same 1.4 L 68 bhp (51 kW/69 PS) engine as the Fiesta.
5) Fiesta - Launched in November 2005 and was Ford's fifth model in India, and is available
in 1.6 L petrol and 1.4 L diesel engines. Bill Ford made a personal visit to launch the car
in India.
General Motors
Chevrolet has been one of the most recognized brands in India for several decades. They were
made popular as the vehicle of choice of the heroes in Bollywood movies. The model lineup
consists of vehicles from cheaper sister brands like Daewoo. General Motors initially entered
India with the Opel brand, but the Opel brand was dropped in March 2006 because sales were at
an all time low due to high prices and General Motors wanted to focus more on their Chevrolet
brand. Since the Chevrolet brand was introduced in India, there have been no new Opel products.
GM's Indian operations were originally a JV between Hindustan Motors and GM, with most of
GM's vehicles assembled at Hindustan's plant in Halol, Gujarat. Since then, GM India is now
wholly owned by GM.
Cars from Chevrolet are:
1)
2)
3)
4)
5)
6)
7)
8)
9)

Tavera - Rebadged Isuzu Panther


Forester - (Discontinued) Rebadged First Generation Subaru Forester
Aveo - Second Generation Daewoo Kalos sedan
Aveo UV-A - First Generation Daewoo Kalos hatchback
Optra - Rebadged Daewoo Lacetti
SRV - Rebadged Daewoo Lacetti
Spark - Formerly Daewoo Matiz in India
Cruze
Captiva

Honda
Honda Siel Cars entered India in 1995. It sells 4 cars in India - the City, Civic, Accord, and CRV. The manufacturing plant of Honda Siel is located in Greater Noida. The model of Accord sold
in India is the 2003 model. The most inexpensive car from Honda - The City. The most
Expensive - The Honda Accord V6.
1) Accord - It was introduced in India in July 2001. It is sold in three versions - Accord VTiL M/T, Accord VTi-L A/T and Accord V6 A/T. Both the engines, the standard i-4 and V-6
have be de-tuned which produce less power compared to the American models, the I-4
produces 142 bhp (106 kW/144 PS) while the V6 produces 221 bhp (165 kW/224 PS),
de-tuned for better fuel efficiency.
2) City - Was launched in India in December 1997 ,initially offered in two options. A 1.3
liter engine producing 90 bhp (67 kW/91 PS) and a bigger 1.5 liter producing 100 bhp
(75 kW/101 PS). Two years later a VTEC option was also offered. All were four cylinder
engines. In October 2003 the City underwent a major revamp and is popularly called as
New Honda City (NHC). Surprisingly Honda gave the new City less powerful engines
and decided to improve the fuel efficiency. The new City features a 1.5 liter engine
producing 77 bhp (57 kW/78 PS). It offered more interior space and with bright and
refreshing interiors. About two years later, a face lifted version - CITY ZX - was
introduced. At the same time, a VTEC engine model too was introduced.
3) Civic - Was launched in July 2006 in India 6 months after the international debut. The car
is the first in this segment in India to offer unprecedented safety features like ABS, EBD
as standard. It is also the first in its class to feature reverse swing windshield wipers. The
only problem with the car with respect to India is its low ground clearance.
4) CR-V - It was introduced in India along with the Accord. It was and is still offered with a
2.4 liter i-VTEC engine producing 152 bhp (113 kW/154 PS).

Hyundai
When Hyundai entered India, the brand was virtually unknown in the Indian market. They signed
up Bollywood actor Shah Rukh Khan and their excellent advertising campaign made Hyundai a
household name and helped it reach the second place behind market leader Maruti Suzuki.
1)
2)
3)
4)
5)
6)
7)
8)
9)

Santro - second generation Hyundai Atos


Accent - second generation Hyundai Accent sedan
Sonata - sold as the Sonata Embera
Verna - third generation Hyundai Accent sedan
Getz - sold as the Getz Prime
Elantra - 3rd generation Hyundai Elantra sedan
Tucson
i10 - brand new small car, global launch in India in 2007.
I20- Elite, action, sportz

Renault-Nissan
1)
2)
3)
4)
5)
6)

Duster
Terreno
Scala
Micra
Pulse
Sunny

Mercedes-Benz
1)
2)
3)
4)

M-Class
S-Class
E-Class
C-Class

Mercedes-Benz has had to cater to the ever growning luxury segment in India, in a much better
fashion now, especially after the arrival of the other luxury German manufacturers. Now,
Mercedes-Benz cars are launched in India soon after the worldwide launch and homologation as
opposed to earlier, when Mercedes-Benz had monopolized the niche Indian market.

Mitsubishi Motors
1)
2)
3)
4)
5)

Lancer
Cedia
Pajero
Montero
Pajero sport

koda
koda is an important car manufacturer of India. It recently launched the Laura, the Octavia still
continues to exist. Skoda also offers the Superb in India but it's not too popular.
1)
2)
3)
4)

Octavia
Superb
Laura
Fabia

Toyota
Toyota Kirloskar sells 4 car models in India. It stopped producing the Toyota Qualis to make way
for the Toyota Innova, which was launched in India in 2005. The most expensive car from
Toyota is a very powerful SUV - The Land Cruiser Prado. Toyota Kirloskar Motors LTD is a
joint venture between Toyota Motor Corporation and the Kirloskar Group.
1)
2)
3)
4)
5)

Qualis
Camry
Corolla
Innova
Land Cruiser Prado

Chennai is home to around 35-40% of India's total automobile industry and for this reason it is
known as the Detroit of Asia. It is on the way to becoming the world's largest Auto hub by 2016
with a capacity of over 3 million cars annually.
The automotive industry in India is one of the largest automotive markets in the world. It was
previously one of the fastest growing markets globally, but it is currently experiencing flat or
negative growth rates.

In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand overtaking Thailand to become third in 2010. As of 2010, India was home
to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in
India in 2010 (an increase of 33.9%), making India the second fastest growing automobile
market in the world (after China).
India's passenger car and commercial vehicle manufacturing industry recently overtook Brazil to
become the sixth largest in the world, with an annual production of more than 3.9 million units in
2011. From 2011 to 2012, the industry grew 16-18%, selling around three million units.
According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected
to increase to 4 million by 2015, not 5 million as previously projected.
In 2011, there were 3,695 factories producing automotive parts in all of India. The average firm
made US$6 million in annual revenue with profits close to US$400 thousand.

HISTORY

A pre-Independence car showroom in Secunderabad

The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid80s.
In 1897, the first car ran on an Indian road. Through the 1930s, cars were only imported, and in
very small numbers. An embryonic automotive industry emerged in India in the

1940s. Hindustan was

launched

in

1942,

long-time

competitor Premier in

1944,

building GM and Fiat products respectively. Mahindra & Mahindra was established by two
brothers in 1945, and began assembly of Jeep CJ-3A utility vehicles. Following independence in
1947, the Government of India and the private sector launched efforts to create an automotivecomponent manufacturing industry to supply to the automobile industry. In 1953, an import
substitution programme was launched, and the import of fully built-up cars began to be
restricted.

Restrictions under the license raj


However, growth was relatively slow in the 1950s and 1960s, due to nationalisation and
the license raj, which hampered the Indian private sector. After 1970, with restrictions on the
import of vehicles set, the automotive industry started to grow; but the growth was mainly driven
by tractors, commercial vehicles and scooters.
Cars were still a major luxury item. In the 1970s, price controls were finally lifted, inserting a
competitive element into the automobile market. However, by the 1980s, the automobile market
was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited
numbers. During the eighties, a few competitors began to arrive on the scene.
In 1986, to promote the auto industry, the government established the Delhi Auto Expo. The
1986 Expo was a showcase for how the Indian automotive industry was absorbing new
technologies, promoting indigenous research and development, and adapting these technologies
for the rugged conditions of India. The nine-day show was attended by then Prime Minister Rajiv
Gandhi.

Liberalisation
Eventually multinational automakers, such as, Suzuki and Toyota of Japan and Hyundai of South
Korea, were allowed to invest in the Indian market, furthering the establishment of an
automotive industry in India. Maruti Suzuki was the first, and the most successful of these new
entries, and in part the result of government policies to promote the automotive industry
beginning in the 1980s.
As India began to liberalise its automobile market in 1991, a number of foreign firms also
initiated joint ventures with existing Indian companies. The variety of options available to the

consumer began to multiply in the nineties, whereas before there had usually only been one
option in each price class. By 2000, there were 12 large automotive companies in the Indian
market, most of them offshoots of global companies.

Vehicles manufactured or assembled in India

Manufactured only in Chennai, India, the i10 is one of Hyundai's best selling globally exported
cars.
BMW India: 1 Series, 3 Series, 3 Series GT, 5 Series, 7 Series, X1, X3, X5.
Audi India: A3, A4, A6, Q3, Q5, Q7.
Fiat India. Grande Punto, Linea.
Ford India: Figo, Fiesta Classic, Fiesta, Ecosport, Endeavour.
General Motors India(Chevrolet): Spark, Beat, Aveo U-VA, Sail, Aveo, Optra, Cruze, Tavera.
Honda Cars India Limited: Brio, Jazz, Amaze, City, Civic, CR-V, Accord.
Hyundai Motor India: Eon, Santro, i10, i20, Accent, Verna, Elantra, Sonata.
Isuzu: MU-7, V-Cross.
Jaguar (Subsidiary of Tata Motors): Jaguar XF.
Land Rover (Subsidiary of Tata Motors): Freelander.
Mercedes-Benz India: C-Class, E-Class, M-Class, GL-Class, S-Class.

MINI: Countryman.
Mitsubishi (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero.
Nissan Motor India: Micra, Sunny, Evalia, Dacia Duster.
Datsun: Datsun Go
Renault India: Pulse, Duster, Scala, Fluence, Koleos.
koda Auto India: Fabia, Rapid, Laura, Yeti, Superb.
Toyota Kirloskar: Etios Liva, Etios, Corolla Altis, Innova, Fortuner, Camry.
Volkswagen India: Polo, CrossPolo, Vento, Jetta, Passat
Opel was present in India until 2006. As of 2013, Opel only provides spare parts and vehicle
servicing to existing Opel vehicle owners.

SALES OF CARS COMPANIES

Mahindra & Mahindra Limited

Mahindra
Type: Public
Traded as
BSE: 500520
BSE SENSEX Constituent

Industry: Automotive
Founded: 1945 (Ludhiana)
Headquarters: Mumbai, Maharashtra, India
Area served: Worldwide
Key people: Anand Mahindra (MD)
Product: Automobiles, commercial vehicles, two-wheelers
Revenue: 691 billion (US$11 billion) (2012)[1]
Net income
41 billion (US$640 million)

Total assets
712 billion (US$11 billion) (2012)[1]
Number of employees 34,612 (Mar-2013)
Parent: Mahindra Group
Subsidiaries

Rise

Mahindra Two Wheelers limited


SsangYong Motor Company
Peugeot Motorcycles (51%)

HISTORY
Mahindra & Mahindra's Kandivali Unit, Auto Sector Main gate overlooking Western Express
Highway, Mumbai.
Mahindra & Mahindra was set up as a steel trading company in 1945 in Ludhiana as Mahindra &
Mohammed by brothers K.C. Mahindra and J.C. Mahindra and Malik Ghulam Mohammed
After India gained independence and Pakistan was formed, Mohammed emigrated to Pakistan.
The company changed its name to Mahindra & Mahindra in 1948. It eventually saw business
opportunity in expanding into manufacturing and selling larger MUVs, starting with assembly
under licence of the Willys Jeep in India. Soon established as the Jeep manufacturers of India,
the company later commenced manufacturing light commercial vehicles (LCVs) and
agricultural tractors. Today, Mahindra & Mahindra is a key player in the utility vehicle
manufacturing and branding sectors in the Indian automobile industry with its flagship UV
Scorpio and uses India's growing global market presence in both the automotive and farming
industries to push its products in other countries.
Over the past few years, the company has taken interest in new industries and in foreign markets.
They entered the two-wheeler industry by taking over Kinetic Motors in India. M&M also has
controlling stake in REVA Electric Car Company and acquired South Korea's SsangYong Motor
Company in 2011. In the 2010-11 M&M entered in micro drip irrigation with the takeover of
EPC Industry' Lt.
Mahindra & Mahindra, branded on its products usually as 'Mahindra', produces SUVs, saloon
cars, pickups, commercial vehicles, and two wheeled motorcycles and tractors. It owns assembly
plants in India, Mainland China (PRC), the United Kingdom, and has three assembly plants in

the United States. Mahindra maintains business relations with foreign companies like Renault
SA, France.
M&M has a global presence and its products are exported to several countries. Its global
subsidiaries include Mahindra Europe S.r.l. based in Italy, Mahindra USA Inc., Mahindra South
Africa and Mahindra (China) Tractor Co. Ltd.
Mahindra started making passenger vehicles firstly with the Logan in April 2007 under the
Mahindra Renault joint venture. M&M will make its maiden entry into the heavy trucks segment
with the Mahindra Truck and Bus Division, the joint venture with International Truck, USA.
Mahindra produces a wide range of vehicles including MUVs, LCVs and three wheelers. It
manufactures over 20 models of cars including larger, multi-utility vehicles like the Scorpio and
the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build
passenger cars.
At the 2008 Delhi Auto Show, Mahindra executives said the company is pursuing an aggressive
product expansion program that would see the launch of several new platforms and vehicles over
the next three years, including an entry-level SUV designed to seat five passengers and powered
by a small turbo diesel engine. True to their word, Mahindra & Mahindra launched the Mahindra
Xylo in January 2009, and as of June 2009, the Xylo has sold over 15000 units.
Also in early 2008, Mahindra commenced its first overseas CKD operations with the launch of
the Mahindra Scorpio in Egypt, in partnership with the Bavarian Auto Group. This was soon
followed by assembly facilities in Brazil. Vehicles assembled at the plant in Bramont, Manaus,
include Scorpio Pick Ups in single and double cab pick-up body styles as well as SUVs.
Mahindra planned to sell the diesel SUVs and pickup trucks starting in late 2010 in North
America through an independent distributor, Global Vehicles USA, based in Alpharetta,
Georgia. Mahindra announced it will import pickup trucks from India in knockdown kit (CKD)
form to circumvent the Chicken tax. CKDs are complete vehicles that will be assembled in the
U.S. from kits of parts shipped in crates. On 18 October 2010, however, it was reported that
Mahindra had indefinitely delayed the launch of vehicles into the North American market, citing
legal issues between it and Global Vehicles after Mahindra retracted its contract with Global
Vehicles earlier in 2010, due to a decision to sell the vehicles directly to consumers instead of

through Global Vehicles. However, a November 2010 report quoted John Perez, the CEO of
Global Vehicles USA, as estimating that he expects Mahindras small diesel pickups to go on
sale in the U.S. by spring 2011, although legal complications remain, and Perez, while hopeful,
admits that arbitration could take more than a year. Later reports suggest that the delays may be
due to an Mahindra scrapping the original model of the truck and replacing it with an upgraded
one before selling them to Americans. In June 2012, a mass tort lawsuit was filed against
Mahindra by its American dealers, alleging the company of conspiracy and fraud.
Mahindra & Mahindra has a controlling stake in Mahindra Reva Electric Vehicles. In 2011, it
also gained a controlling stake in South Korea's SsangYong Motor Company.
Mahindra has launched its relatively heavily publicised SUV, XUV 500, code named as W201 in
September 2011. The new SUV by Mahindra has been designed in-house and it is developed on
the first global SUV platform that could be used for developing more SUVs. In India, the new
Mahindra XUV 500 comes in a price range between Rs 11.40 lakh to Rs 15 lakh. The company
is expected to launch 3 products in CY'15 (2 SUVs and 1 CV) and an XUV 500 hybrid. M&Ms
two wheeler segment will launch a new scooter in Q1FY'15. Besides India, the company also
targets Europe, Africa, Australia and Latin America for this model. Mahindra President Mr.
Pawan Goenka stated that the company plans to launch six new models this fiscal. The company
launched CNG version of its mini truck Maxximo on 29 June 2012. A new version of Verito in
diesel and petrol options was launched by the company on 26 July 2012 to compete with
Maruti's Dzire and Toyota Kirloskar Motor's Etios.

YEAR BY YEAR HISTORY OF THE COMPANY


Milestones:

1945: 2nd October, Mahindra & Mohammed established.

1948: The Company was renamed Mahindra & Mahindra Limited (M&M).Steel trading
business commenced, in association with suppliers in UK.

1949: Jeep assembly commenced.

1950: The first business with Mitsubishi Corporation commenced and 5000 tons of wagon
building plates from Yawata Iron & Steel were supplied.

1953: Otis Elevator Company (India) was established.

1954: Technical and Financial Collaboration with Willys Overland Corporation to assemble
Jeeptype vehicles.

1956: Shares listed on the Bombay Stock Exchange. Dr. Beck & Company established a
joint venture with Dr. Beck & Company, Germany.

1957: Mahindra Owen established a joint venture with Rubery Owen & Company
Limited, UK.

1958: Machine Tools Division commenced operations.

1960: Mahindra Sintered Products Limited established a joint venture with Bir Field
(GKN Group, UK).

1962: Mahindra Ugine Steel Company established a joint venture with Ugine Kuhlmann,
France.

1963:

International Tractor Company of India established a joint venture with

International Harvester Company, USA.

1965: Manufacture of light commercial vehicles commenced. Vickers Sperry of India


Limited established a joint venture with Sperry Rand Corporation, USA.

1969: The Company entered the world market with export of utility vehicles and spare parts.

1970: Mahindra Engineering & Chemical Products Limited commenced operations.

1971: International Harvester collaboration ended.

1975: Mahindra Engines developed an indigenous diesel engine for its vehicles to beat the
fuel crisis.

1977: International Tractor Company of India merged with Mahindra & Mahindra to
become its Tractor Division.

1979: License from Automobiles Peugeot, France, for manufacture of XDP 4.90 Diesel
Engines.

1982: Mahindra brand of tractors launched.

Siro Plast Limited established.

1983: Mahindra & Mahindra became market leader in the Indian tractor market, a position it
has retained till date.

1984: Mahindra Hellenic Auto Industries S.A. established a joint venture in Greece to
assemble and market utility vehicles in Europe.

1986: Tech Mahindra (formerly known as Mahindra British Telecom) established a joint
venture with British Telecommunications Plc (BT), UK, leading the way for the Group's entry
into Information Technology.

1987: Acquired International Instruments Limited.

1989: Automotive Pressing Unit (now Mahindra Ugine Steel Company Limited) acquired
from GKN.

1991: Introduction of Commander Range of vehicles. Mahindra Financial Services Limited


established as a wholesale fund provider.

1992:
Division.

1993:

Merged diverse activities of Steel, Machine Tools and Graphics into Intertrade

1. Incorporation of Mahindra British Telecom International Inc., USA, a wholly owned


subsidiary of Mahindra British Telecom.
2. Mahindra Steel Service Centre Limited established in association with Mitsubishi
Corporation and Nissho Iwai Corporation of Japan.
3. Mahindra Acres Consulting Engineers Limited established a joint venture with Acres
International Limited (Canada) to provide multidisciplinary engineering consultancy
services.
4. Armada range of vehicles launched.

1994:
1. Reorganization of the Group creating six Strategic Business Units: Automotive, Farm
Equipment, Infrastructure, Trade & Financial Services, Information Technology (earlier
known as Telecom and Software) and Systech (earlier known as MSAT).
2. Mahindra Realty & Infrastructure Developers Limited established. Mahindra USA Inc.
established for distribution of tractors in the USA.
3. EAC Graphics (India) Limited established in collaboration with The East Asiatic
4.

Company Limited A/S, Denmark.


Mahindra Allwyn Nissan Limited merged with the Company.

1995:
1. Mahindra Holding & Finance Limited became a subsidiary of Mahindra & Mahindra to
carry out business as an investment company.
2. Technical collaboration with Mitsubishi to manufacture the Mitsubishi L300.
1996:
1. Mahindra Ford India Limited established a joint venture with Ford Motor Company,
USA, to manufacture passenger cars.
2. The Company made a Foreign Currency Convertible Bond (FCCB) issue of US$ 115
million.
3. Mahindra Holidays & Resorts India Limited established.
4. Mahindra Consulting (now Bristlecone) established.

1997: Inauguration of the Mahindra United World College of India. Mahindra World City
Developers Limited established to set up integrated townships.

1999:

1. The largest online used vehicle website in India launched by Mahindra Network
Services.
2. The Company acquired a major stake in Gujarat Tractors and renamed it Mahindra
Gujarat Tractors Limited.
3. Mahindra & Mahindra Financial Services Limited became a subsidiary of Mahindra &
Mahindra.
4. Mahindra Logisoft Business Solutions Limited established.
5. Mahindra Intertrade Limited established as the trading arm of the Group.

2000:
1.
2.
3.
4.
5.

The Company adopted a new logo.


Mahindra Auto Specialties Limited established a new 100% subsidiary.
Mahindra & Mahindra set up its first satellite tractor plant at Rudrapur.
A new age tractor, Mahindra Arjun 605 DI (60 HP), launched.
Bolero GLX (a utility vehicle) launched in response to the needs of urban consumers.

2001:
1. Champion, a 3wheeler diesel vehicle, launched.
2. Mahindra MaXX launched, a multiutility vehicle positioned with the caption
3.
4.
5.
6.

'Maximum Space, Maximum Comfort'.


Mahindra & Mahindra tied up with Renault for Petrol Engines.
A separate division established to provide Defence Solutions.
Mahindra Special Services Group established to provide Information Security.
Mahindra Infrastructure Developers Limited established for development and

management of infrastructure projects.


7. Mahindra Life spaces Developers Limited established for development of corporate
property.

2002: Scorpio launched, a new generation, worldclass sports utility vehicle that redefined
the SUV market and lived up to its positioning: 'Nothing else will do'.

2003:
1.
2.
3.
4.
5.
6.

Invader launched a sporty open top vehicle.


A second tractor assembly plant set up in USA.
MaXX Pick Up launched.
India's first Turbo tractor launched Mahindra Sarpanch 595 DI Super Turbo.
Mahindra & Mahindra ventured into Industrial engine business.
An alliance formed between Mahindra Defence & Lockheed Martin Information

Systems, UK, for defence products.


7. Mahindra Engineering Services established.

2004:
1. Mahindra World Tractor (75 HP) launched in the International market.
2. Systech (earlier known as MSAT) established, to focus on developing components as
well as offering engineering services.
3. Bolero and Scorpio launched in Latin American, Middle East and South African
markets.
4. Signed MoU to enter into joint venture with Jiangling Motor Company Group (JMCG)
of China, to acquire tractor manufacturing assets from Jiangling Tractor Company, a
subsidiary of Jiangling Motor Company Group.
5. Mahindra & Mahindra became the first Indian company to achieve sales of one million
tractors.

2005:
1. Acquired 51% stake in SAR Transmission Private Limited, a company engaged in
manufacture of gears and transmission shafts.
2. Farm Equipment Sector launched operations in Australia.
3. Mahindra & Mahindra became the first Indian auto manufacturer to launch the
Common Rail Diesel Engine (CRDe), offering it in the Scorpio.
4. Acquired 80% stake in the joint venture with Jiangling Motors i.e. in Mahindra (China)
Tractor Company.
5. Mahindra Renault Limited established a joint venture with Renault to manufacture
and market Logan, a midsized sedan, in India.
6. Mahindra International Limited established a joint venture with International Truck
and Engine Corporation to manufacture trucks & buses in India.

2006:
1. Announced plans to set up a 3000 acres Special Economic Zone in Jaipur.
2. The Mahindra United football team won the Federation Cup trophy.
3. Mahindra & Mahindras fifth fullscale automotive plant opened in Hardiwar
Industrial Estate to manufacture threewheeler.
4. The Scorpio Hybrid was unveiled at the Delhi Auto Expo along with 9 other prototype
vehicles.
5. Mahindra & Mahindra acquired the Stokes Group of UK, the largest automotive
forgings company in the UK.
6. Mahindra Finance became the first Mahindra Group Company in 23 years to be listed
publicly and was oversubscribed 27 times.
7. BMW entered Mahindra World City, Chennai.
8. The All New Scorpio with 43 new features was launched.
9. Mahindra Life spaces announced plans to set up a Special Economic Zone spreading
over 3000 acres in Pune.
10. Scorpio was chosen for the Gondwanaland Expedition a landmark assignment for
the vehicle.
11. Mahindra Holidays & Resorts India Limited (the 'Company'), a leisure hospitality
provider offering quality family holidays and part of the Mahindra Group of
Companies.
12. Mahindra & Mahindra's Farm Equipment Sector (FES) showcased India's first bio
diesel.
13. Mahindra & Mahindra launched the Scorpio Vseries.
14. On Nov. 1, 2007, a wholly owned affiliate of Navistar International Corporation
(Other OTC: NAVZ), signed a joint venture agreement with Mahindra & Mahindra to
produce diesel engines for medium and heavy commercial trucks and buses in India.
15. Logan was the highest selling sedan and Scorpio the highest selling UV in July 2007.
16. Mahindra launched the Mahindra PickUp (double cab) in Chile in July 2007.

2008:
1.
2.
3.
4.
5.
6.
7.

Mahindra enters into JV with TMI Pacific in Australia.


Project Ingenio is now Mahindra XYLO.
Mahindra introduces FuelSmart system in Bolero and Scorpio SUVs.
Tech Mahindra receives the Frost and Sullivan 2008 Growth Excellence Award.
Anand Mahindra receives Harvard Business School Alumni Achievement Award.
Mahindra launches first Sustainability Report with highest GRI Rating.
Mahindra First Choice Services launches first Car Space outlet in Chennai.

8. Mahindra to enter the twowheeler industry.


9. Mahindra Tractors launch Indias first biodiesel tractor.
10. Mahindra Intergrades inaugurates a worldclass Electrical Steel processing plant in
Vadodara.
2009:
1. Mahindra launches the Xylo January 13.
2. Mahindra launches the New, Mighty Muscular Scorpio March 6.
3. Tech Mahindra declared highest bidder for Satyam April 14.

2013:
1. Mahindra XUV500 sets a new record in the Limca Book of Records.
2. Mahindra launches its innovative customer care initiative, Mahindra QWIK.

2014:
1. Mahindra Group expands its footprint in the United States.
2. Mahindra Two Wheelers debuts in Uganda.
3. Mahindra signs MoU with Government of Bhutan to promote usage of Electric
Vehicles in the country.

COMPANY DEALS IN:


Military Defence
The company has built and assembled military vehicles, commencing in 1947 with the
importation of the Willys Jeep that had been widely used in World War II. Its line of military
vehicles includes the Axe. It also maintains a joint venture with BAE Systems, Defence Land
Systems India.

Energy
Mahindra & Mahindra entered the energy sector in 2002, in response to growing demands for
increased electric power in India.

Since then, more than 150,000 Mahindra Powerol engines and diesel generator sets (gensets)
have been installed in India, offering standard proper quality power, as do larger companies, in
areas with arguably less reliable grid electricity. The inverters, batteries, and gensets are
manufactured at three facilities in Pune (Maharastra), Chennai(Tamil Nadu), and Delhi; and 160
service points across India offer 24-7 support to most key markets. Powerol is present in
countries across Latin America, Africa, the Middle East, and Southeast Asia and expanding into
the United Arab Emirates, Bangladesh, and Nepal. Mahindra Powerol's energy services consist
mostly of power leasing and telecom infrastructure management. In 2006, it became a major
market leader in the telecom segment (and in 2011, its market share passed 45 percent). In 2007,
it won the Frost and Sullivan "Voice of the Customer" award for best practices in telecom.
Mahindra Clean tech Ltd focuses in eco-friendly, or 'green' power. In response to growing
acceptance of Solar Power, it formed a subsidiary, Mahindra Solar, in 2010 to offer a range of
solar solutions, both off grid and on grid, alongside Engineering, Procurement, and Construction
(EPC).
Mahindra EPC is the Engineering Procurement & Construction arm of the Mahindra group. A
portfolio company under the clean tech arm of Mahindra Partners, they offer solar solutions
spanning On-Grid solutions, EPC (Engineering, Procurement and Construction) and Off-Grid
Product solutions. The company commenced its operations in the year 2011 and has successfully
commissioned over 60 MW worth of Solar PV projects.
Meanwhile, its off-grid products include power packs and rooftop setups for business
organisations and public institutions alongside rural electrification through lanterns and home
and street lighting systems. The company works closely with Mahindras farm equipment
division to offer lighting products to some of the more rural areas in India. It also works with
Mahindra Powerol to offer solar power backup to telecom sites in India. In 2011, Mahindra Solar
received a CRISIL rating of SP1A in 2011, the highest rating for any solar photovaltaic off-grid
company.

Farm equipment
Mahindra Tractors

Mahindra began manufacturing tractors for the Indian market during the early '60s. It is the top
tractor company in the world (by volume) with annual sales totaling more than 200,000 tractors.
Since its inception, the company has sold over 2.1 million tractors. Mahindra & Mahindras farm
equipment division (Mahindra Tractors) has over 1,000 dealers servicing approx. 1.45 million
customers.
Mahindra tractors are available in 40 countries, including India, the United States, China,
Australia, New Zealand, Africa (Nigeria, Mali, Chad, Gambia, Angola, Sudan, Ghana, and
Morocco), Latin America (Chile, Argentina, Brazil, Venezuela, Central America, and the
Caribbean), South Asia (Sri Lanka, Bangladesh, and Nepal), the Middle East (Iran and Syria) and
Eastern Europe (Serbia, Turkey, and Macedonia. Mahindra Tractors manufactures its products at
four plants in India, two in Mainland China, three in the United States, and one in Australia. It
has three major subsidiaries: Mahindra USA, Mahindra (China) Tractor Company, and Mahindra
Yueda (Yancheng) Tractor Company (a joint venture with the Jiangsu Yueda Group).
In 2003, the Farm Equipment Sector of Mahindra & Mahindra won the Deming Application
Prize and in 2007 it received the Japan Quality Medal for implementing Total Quality
Management in its entire business operations. The company has garnered the highest customer
satisfaction index (CSI) in the industry at 88 percent. It earned a 2008 Golden Peacock Award in
the Innovative Product/Services category for its in-house development of a load car. In its 2009
survey of Asias 200 most admired and innovative companies, the Wall Street Journal named
Mahindra & Mahindra one of the 10 most innovative Indian companies.
In addition to tractors, Mahindra sells other farm equipment. It has expanded its product-line to
include farm-support services via Mahindra AppliTrac (farm mechanisation products), Mahindra
Shubh Labh (seeds, crop protection, and market linkages and distribution), and the Samriddhi
Initiative.

AUTOMOBILES
Mahindra Bolero
Overview:
Manufacturer

Mahindra and Mahindra Limited

Also called

Mahindra Cimarrn (South America)

Production

2001-present

Assembly

Nashik, Maharashtra, India


Haridwar, Uttarakhand, India

Body and chassis:


Class

SUV

Body style

Five-door

Related

Mahindra Maxx

Power train:
Engine

2.5 L MDI turbocharged Diesel

Transmission

Five-speed manual

Dimensions:
Wheelbase

2,680 mm (105.5 in)

Length

4,107 mm (161.7 in)

Width

1,745 mm (68.7 in)

Height

1,885 mm (74.2 in)

Chronology:
Predecessor

Mahindra Armada

Successor

Mahindra Scorpio

The Mahindra Bolero is a four-wheel drive off-road vehicle produced by India's largest growing
automotive company Mahindra & Mahindra.

Design

The basic design is based on the Mahindra Armada Grand. The first-generation Bolero was
equipped with a Peugeot 2.5 L (150 in3) IDI engine which produced 75 bhp (56 kW). The second
generation was released with slightly modified exteriors and the major change was the engine, a
2.5 L (150 in3) in-house mill from Mahindra. It is powered by a 72 bhp (54 kW) 2,523 cc
(154.0 cu in) turbo-charged direct injection diesel engine.

Interior

Specification

Default tyres are 235/75 R15 Goodyear Wrangler radials.


Mileage is 12.2 km/L (8.2 L/100 km; 29 mpg-US) fuel economy.
Mileage 14 km/L (7.1 L/100 km; 33 mpg-US) fuel economy on highway at around 80 to
100 km.
Drive: Manual with four-wheel drive option, power steering in SLX and DI variants.

Driving impressions
The Mahindra Bolero is a basic utility vehicle that is well-suited to Indian conditions. Even
though it is based on a decades-old platform, its high ground clearance makes it easier to drive
on rural Indian roads. Equipped with a 2523 cc diesel engine, it has become the vehicle of choice
for rural populace.

Models and trims


The Bolero is offered in the Indian domestic market in the following trims:
1. EX The "no frills" base model includes vinyl seats, basic digital instrument and engine
immobilization but lacks even the most rudimentary of modern conveniences such as
power steering or air conditioning.
2. SLE This trim replaces vinyl with a fabric/vinyl mix, and adds power steering, air
conditioning, a heater, a second row center armrest, a remote fuel lid opener, and a spare
wheel cover
3. SLX Adds CD and MP3 capability, body color ORVM, a body color spare wheel cover
insert, wood finish on the central console, power windows, central locking, keyless entry,
and a 12-volt port.
4. ZLX the top of the line ZLX trim adds the Mahindra Micro Hybrid System (similar to
start/stop), a more advanced driver info system, exterior graphics, a rear windshield
wiper, and VMS. The DI is similar to the EX trim but is available with the rugged DI
engine. The EX, SLE, SLX and ZLX meanwhile are available with the M2Dicr Low Cost
Common Rail Engine.
5. An ambulance model is also available.

MODELS AND FEATURES


BOLERO VARIANTS

Bolero ZLX
The new Mahindra Bolero ZLX isn't just an SUV. It's a feature-rich, adrenaline-pumping driving
experience. An experience that not only keeps you firmly in command throughout, but also way
ahead of the rest. Combining advancements like the new m2DiCR engine, Micro Hybrid
Technology & Voice Messaging System along with masculine exteriors, comfortable &
contemporary interiors including an advanced digital display, the Bolero ZLX has everything
you need to take on anything the country has to offer.

Specifications

Engine
Maximum Power
Maximum Torque
Gear Box

gear
Suspension

Rear - Ellipitical Leaf Springs


Tyres
Turning Radius
Dimensions (lxbxh)
Wheelbase
Brake Clutch

2523 cc m2DiCR Engine


46.3 kW @ 3200 rpm
195 NM @ 1400-2200 rpm
NGT 520, 5 speed, all synchromesh with overdrive in 5th
Front - Independent with Coil Spring and Anti Roll Bar
215/75 R 15
5.8 m
4107 x 1745 x 1880 mm
2680 mm
Front Disc
Rear Drum

Bolero SLX
The Bolero SLX has that distinctive Bolero look with its rough and rugged exteriors and is
powered by the mighty m2DiCR Engine. Experience superior comfort with the all new woodfinish central console, central locking system and an advanced digital display.

Features and Specification


Make: Mahindra
Mode: Bolero
Variant: SLX
Body Type: SUV
No. of Doors :5

Fuel Efficiency:
City Mileage
Highway Mileage

9.4 kmpl
12.4 kmpl

Fuel Capacity

60 liters

Fuel Type

Diesel

Fuel Grade

Engine Parameters:
Displacement

2523cc

Bore

Stroke

Cylinder Configuration

4 inline

Valve Gear Operation

Compression Ratio

No. of Valves

Aspiration
Fuel System

Turbo Charged
DI

Horse Power

63.12@3200 ps@rpm

Torque

180@1440 Nm@rpm

Steering and Suspension


Steering Type

Rack and pinion, power assist

Power Steering

Yes

Front Suspension

Independent with coil spring

Rear Suspension

Leaf spring

Dimensions:
Length

4056 mm

Height

1880 mm

Width

1660 mm

Wheel Base

2680 mm

Clearance

200 mm

Boot
Front Head Room
Front Leg Room

Min: 60mm Max: 60mm

Rear Head Room

Min: 60mm Max: 60mm

Rear Leg Room

Min: 74mm Max: 94mm

Krebs Weight

Min: 1615kg Max: 1615 kg

Gross Weight

Drive Train

Type

Manual

Gears

Drive Line

RWD

Comforts Features
AM / FM Radio

Present

Except AM / FM radio there is no other comfort is provided.


Safety: There is no safety feature included in Bolero SLX including antitheft system etc.

BOLERO SLE
The Bolero SLE has that distinctive Bolero look with its rough and rugged exteriors and is
powered by the mighty m2DiCR Engine. With tough and rugged exteriors and comfortable
interiors including and advanced digital display, the SLE combines extraordinary power with
efficient mileage for an effortless driving experience.
Feature and Specification
Make

Mahindra

Model

Bolero

Variant

SLE

Body Type

SUV

Number of Doors

Fuel Efficiency:
City Mileage
Highway Mileage

9.5 kmpl
13.2 kmpl

Fuel Capacity

60 liters

Fuel Type

Diesel

Fuel Grade

Engine Parameters:
Displacement

2523cc

Bore

Stroke

Cylinder Configuration

4 inline

Valve Gear Operation

Compression Ratio

No. of Valves

Aspiration

Turbo Charged

Fuel System

DI

Horse Power

63.12@3200 ps@rpm

Torque

180@1440 Nm@rpm

Steering and Suspension


Steering Type

Rack and pinion, power assist

Power Steering

Yes

Front Suspension

Independent with coil spring

Rear Suspension

Parabolic Leaf spring

Dimensions

Length

4056 mm

Height

1880 mm

Width

1660 mm

Wheel Base

2680 mm

Clearance

180 mm

Boot

Front Head Room

Front Leg Room

Rear Head Room

Rear Leg Room

Krebs weight

Min: 1615kg Max: 1615 kg

Gross weight

Drive Train
Type

Manual

Gears

Drive Line

RWD

Comfort Features
Air-Conditioning

Yes

Except Air conditioning, no other comfort features are present in the Bolero SLE.
Same as SLX no safety features are present in the Bolero SLE.

Mahindra Scorpio

Overview
Manufacturer
Mahindra and Mahindra Limited
Also called
Mahindra Goa (in Europe)
Production
2002present
Assembly
Nasik, Maharashtra, India 6th of October City, Egypt(BAG) Montevideo, Uruguay
Body and chassis
Class
Sport utility vehicle
Body style
Full-size SUV
Related
Mahindra Scorpio Getaway
Power train
Engine
2.1L Petrol I4 116
2.6L Turbo
2.2L M-Hawk
Transmission
5 speed manual / optional extras 4-wheel drive
Dimensions
Wheelbase

105.5 inch (2,680 mm)


Length
176.9 inch (4,493 mm)
Width
71.5 inch (1,816 mm)
Height
77.8 inch (1,976 mm)
Curb weight
5,534 lb

(2,510 kg)

(2WD)

5,754 lb (2,610 kg) (4WD)


The Mahindra Scorpio is a four-wheel drive compact SUV manufactured by Mahindra &
Mahindra Limited (M&M), the flagship company of the Indian Mahindra Group. It was the first
SUV from the company built for a global market.
The Scorpio has been successfully accepted in international markets across the globe, and will
shortly be launched in the United States.
The Scorpio was conceptualized and designed by the in-house integrated design and
manufacturing team of M&M.
The car has been the recipient of three prestigious Indian awards: the "Car of the Year" award
from Business Standard Motoring as well as the "Best SUV of the Year" and the "Best Car of the
Year" awards, both from BBC World Wheels.

DEVLOPMENT
Prior to the mid-1990s, Mahindra & Mahindra was an automobile assembly company. The
company manufactured Willys Jeeps and its minor modified versions, with modifications carried
out in India. In 1996, the company planned to enter the SUV segment with a new product which
could compete globally. Since M&M did not have the technical knowhow to handle such an
ambitious product, they devised an entirely new concept among Indian auto companies. Roping
in new executives who had worked in the auto industry in western countries, such as Pawan

Goenka and Alan Durante, the company broke the rule that says automakers must design,
engineer and test their own vehicles while spending millions of dollars in the process.
The new Mahindra Scorpio SUV had all of its major systems designed directly by suppliers, with
the only inputs from Mahindra being design, performance specifications and program cost. The
design and engineering of the systems were carried out by suppliers, as well as testing, validation
and materials selection. Sourcing and engineering locations were also chosen by suppliers. The
parts were later assembled in a Mahindra plant under the Mahindra badge, being a well-known
brand in India. Using this method, the company was able to build from scratch a new vehicle
with virtually 100 percent supplier involvement from concept to reality, at a cost of Rs 600 crore
($120 million), including improvements to the plant. The project took five years to move from
concept to final product. The cost was estimated in 2002 to be Rs 550 crore.
FIRST GENRATION

Mahindra Scorpio first generation


Mahindra Scorpio second generation
The Mahindra Scorpio was launched in India in 2002. Soon after the success of the Scorpio,
Mahindra launched an upgraded Scorpio with plush seats and rear centre arm rest, dual tone
exterior colour and various minor changes.
SECOND GENRATION
In April 2006, the company launched an upgraded Scorpio, dubbing it the 'All-New' Scorpio.

At the Auto Expo 2006 in Delhi, Mahindra also showcased their future plans on the Scorpio
model by showcasing a hybrid Scorpio with CRDe engine and a Scorpio based on a pickup
truck . The hybrid, the first such vehicle developed in India, was developed by Arun Jaura, a
former employee of Ford. His senior, Pawan Goenka, a former engineer at GM, heads
Mahindra's automotive division and oversees the Scorpio project.
In June 2007, Mahindra launched a pick-up version in India known as the Scorpio Getaway.
On September 21, 2008, Mahindra launched their latest Scorpio with a 6-speed automatic
transmission gearbox.

Safety

Mahindra Scorpio 2014 is the third generation model


The upgraded Mahindra Scorpio Getaway, launched in Australia in mid-2009, received
additional safety features to the Indian model such as ABS brakes and airbags in an attempt to
raise its rating to a minimum of 3 stars from the current 2 star ANCAP rating. The 2012 model
scored 6.6 points out of a possible 16, giving it a 3-star ANCAP rating.

Hybrid version
On April 14, 2008, Mahindra revealed a concept of a diesel-electric hybrid version of their
Scorpio SUV at the 2008 SAE World Congress.

Facelift 2014

A face lifted version of the Scorpio was launched on 26th September, 2014 with redesigned front
and rear fascias and a new dashboard. A revised automatic variant of the SUV is expected in
2015.

mHawk
The mHawk Diesel engine holds a capacity of 2.2 L with 4 cylinders that delivers 120hp. The
mHawk employs a top-mounted intercooler to improve turbocharger efficiency. The engine is
based on the Bosch Common Rail system with solenoid injectors and fuel spray design that
improves fuel efficiency.
The mHawk is equipped with a two chain drive stage system and hydraulic lash adjusters.

Western Europe
In Western Europe, so as not to confuse the vehicle with the Ford Scorpio executive car, it is
called the Mahindra Goa.

United States
Mahindra has for a while had plans on exporting to the United States, possibly with a dieselelectric hybrid. In 2006, it entered into an agreement with Global Vehicles USA to import and
distribute Mahindra vehicles.
It originally planned to release a modified pick-upversion of the Scorpio, named Appalachia, in
the United States by the end of 2009, but legal problems have pushed back its entry into the U.S.
market. This vehicle is projected to cost in the low $20,000s

SPECIFICATIONS
Engine: Top mounted intercooler, Intercooled, mHawk CRDe, 4 Stroke, Turbo charged,
DI
Cubic Capacity: 2179cc

Max. Gross power: 120 bhp (89 kW) @ 4000 rpm


Max. Gross torque: 290 Nm (210 lbfft) @ 1800-2800 rpm
Gear Box: 5 speed manual and 6 speed automatic
Tyres: P235/70 R16, Radial Tubeless
Front Brakes: Disc & Caliper type, Twinpod & Tandem booster (with anti-lock braking
system)
Rear Brakes: Drum Type
Fuel Tank Capacity: 60 l (13 imp gal; 16 US gal)
Fuel Type: Diesel
Turning circle radius: 5.6 m (18 ft) for 2WD

MODELS
Mahindra Scorpio S2: This is the base variant powered by a 2.5l M2diCR engine
producing 75bhp.
Mahindra Scorpio S4: This is the base model with many advanced features such as
mHawk engine, digital immobilizer, collapsible steering column, crash protection
crumple zone, illuminated spoiler, sporty bonnet scoop and tubeless tyres. In November
2011, a 4WD version was introduced in the S2 trim.
Mahindra Scorpio Getaway: This variant is powered by the 2.6L, 2609cc, and diesel
engine. It satisfies only BS III emission norms, so it is not available in metro cities. Also
it does not get the new generation Scorpio looks.

Mahindra Scorpio S6: This is an upgraded version with additional features like ABS, air
dams and mud flaps, front fog lamps, voice assist system, electrically operated ORVMs
and middle row sliding seats, 2din entertainment system.
Mahindra Scorpio S6+: It is the same as the S6 variant but with advanced safety features.
Mahindra Scorpio S10 : This is an upgraded version with additional features like sporty
decals, alloy wheels, anti pinch smart windows, cruise control and audio controls on the
steering wheel, dual airbags, micro hybrid technology, 6" touch screen infotainment
system, tyre , tronics, and LED Projector Headlamps with Eyebrows
Mahindra Scorpio S10 4WD: Same as the S10 it contains 4WD and an additional 100kg
of weight.

MAHINDRA XUV 5OO

Manufacture: Mahindra & Mahindra


Production: 2011present
Assembly:
Chakan, Maharashtra, India

Nashik, Maharashtra, India


Body and chassis
Class: Sport utility vehicle
Body style: 4-door SUV
Powertrain
Engine: 2.2 litre mHawk140, direct injection diesel, 5th generation Variable Geometry

Turbocharger (VGT)
Transmission: 6 Speed Manual
Dimensions
Wheelbase: 2,700 mm (106 in)
Length: 4,585 mm (181 in)
Width: 1,890 mm (74 in)
Height: 1,785 mm (70 in)
Kerb weight: 1,785 kg (3,935 lb)

The Mahindra

XUV500

is

a mid-size

SUV produced

by

the

Indian

automobile

company Mahindra & Mahindra.


The XUV500 was designed and developed at Mahindra's design and vehicle build center
in Nashik and Chennai, and is manufactured in Mahindra's Chakan & Nashik plant, India.
During its development, the car was code named 'W201'.

The company claims that the design is inspired by fastest land animal, the cheetah. It is the
first monocoque chassis based vehicle the company has produced.
The XUV 500 was launched in September 2011, and by June 2012 it was available in 19 cities in
India. Carefully managed hype surrounding the launch translated into 35,000 XUV500s being
sold in the first year, with another 14,000 buyers on a waiting list. To meet the growing demand
for the XUV 500, M & M planned to increase the monthly production to 5000 units by Sept-Oct
2012.
Despite being highly popular in India, it is less well known in other countries than is
the Mahindra Scorpio. But the XUV500 was relatively popular in the South African market with
sales exceeding 1200 units by February 2013.
Mahindras XUV 500 secured first place in the 2010 Desert Storm Rally - one of Indias toughest
tests for both man and machine. The car also clocked the fastest time in three sections of the
rally.

Models

The XUV500 is powered by a 2.2 litre (2179 cc) "mHawk" turbo diesel engine similar to the one
in the Mahindra Scorpio. It develops 140 bhp (104 kW; 142 PS) @ 3750 rpm and torque of
330 Nm (243 lbft) @1600-2800 rpm and is mated to a new 6-speed manual gearbox developed
by Ricardo.
The XUV500 was launched in two versions sharing the same engine; the W6 in two-wheel drive
only and the W8 which can be specified in two- or four-wheel drive.
The W6 includes a 6-inch monochrome infotainment display, two airbags, ABS with electronic
brake-force distribution (EBD), and disc brakes on all wheels.
The W8 adds GPS navigation, six airbags, a touch screen, electronic stability program (ESP)
with rollover mitigation, Hill Hold and Hill Descent control, alloy wheels, and leather
upholstery.
In August 2012, Dilip Chhabria, Mumbai-based automobile designer of DC Designs came out
with the lounge version of Mahindra XUV 500.

Exports
Mahindra XUV500 is also designed for international markets. The company has announced that
the SUV will be exported to South Africa, Australia, Chile and Italy under the name CBU. The
review intimated that the price of the SUV in foreign countries would be different from the
Indian version.

Performance
The XUV500 can accelerate 0-60 km/h in 5.4 seconds and 0-100 km/h in 12.5 seconds and reach
a top speed of 200 km/h. Its fuel economy is 15.1 km per litre (as per ARAI test), and 13.8 km
per liter in city and has a 70 litre fuel tank.

Awards
Mahindra XUV500 received Total Customer Satisfaction Award from TNS Automotive. The
flagship vehicle from Mahindra received the award for being top ranked in the SUV segment in
the largest syndicated automotive study in India conducted by TNS Automotive.

Mahindra Verito
The Indian multinational automobile manufacturers, the Mahindra & Mahindra, have been
widening its territory of the customer base by releasing new models into new categories of the
market.
Its successful attempt is the Mahindra Verito that is offered in seven chic colors. To start with its
performance, it has been integrated with an advanced braking mechanism that further has the anti
lock braking system with electronic brake force distribution. The safety section is addressed just
as in most of the recent vehicles by an advanced anti theft function known as an engine
immobilizer. It has been built into this vehicle to put all the theft related worries of any
unauthorized access put to bay. And the protection of the driver from any impact, by hitting the
steering wheel or to the windows out of a collision is avoided by providing an airbag.
Additionally, the side impact moldings that are in body color gives a great look to the side profile
of the car, but the actual purpose that they serve is to protect the vehicle from all the possible
minor scratches and damages that might take place during heavy traffic and reduce their impact
on the car.
It squeezes an impressive mileage of 20.03 Kmpl, which is quite good for daily commuters.
There is a driver information system that has a display capacity of multiple instrument
notifications. It is being sold with a powerful 1.5 liter dCi CRDi motor and the buyers must be
prepared for some serious acceleration and pickup as well. The cabin is integrated with elegant
new upholstery that looks, so fine that you don't want to mess it, but once you get onto them, it is
too cozy to get out ever.
There is a variometric AC unit with ergonomic controls and well placed vents. The 2-DIN music
system that is integrated into this sedan has a capacity to support multimedia devices like a
CD/MP3 player, a USB and an Aux-in. There is a cluster of switches that are mounted on the
driver side door on which the switches for power windows are fitted. The rear part of the cabin
has got spacious seating, which is very wide and all the three seats are fitted with head restraints.
The instrument panel that has numerous notifications has a stylish look as it has been layered in a
two tone finish.

Furthermore, in complimenting the style in the inside cabin, the grab handles have been given a
new design and also in has a fine finish to it. The outside rear view mirrors that can be
electrically adjustable have their control switches sitting in great style on the right side of the
dashboard.
It has an immense boot space that can accommodate massive 510 liters. On the frontage, there
can be seen a pair of fog lamps on either side that are in a new design covering to it in black,
which look like eyelids of the lamps.
This stylish body of sedan has been tailored with expertise and the one such feature that has
been stitched onto it are the roof rails that lie in style and adding to it there are the A, B and C
pillars that are in black.
The view from the rear side is enhanced altogether by the rear appliqu in chrome that holds the
name of model. It has been fitted with classy new alloy wheels that lift the entire body of Verito
in great style. Additionally, the eyebrow headlights improve the entire front fascia picture.
Furthermore, the sculpted new boot lid adds style to the rear and the clear lens tail lamps on the
front enhance the light quality. Additionally, the chrome plated front grille cannot be unnoticed.

SPECIFICATION
Diesel
1.5 Diesel
ENGINE Type
4 cylinder, 8 valve
Displacement (cc):1461
Max. Power (hp/rpm): 65/4000
Max. Torque (nm/rpm): 160/2000
Gross Weight (kg): 1630
Kerb Weight (kg): 1140

DIMENSIONS
Boot space (ltrs): 510
Overall length (mm): 4277
Overall width (mm): 1740
Height (mm):1540
Wheel base (mm): 2630
Ground clearance (mm): 172
Fuel tank capacity (liters): 50
Turning radius (meter): 5.25
Tyres: 185/70 R14 tubeless
SUSPENSION
Front: Macpherson-type with wishbone link
Rear: H-Section torsion beam with programmed deflection-coil spring

VERITO VBIBE

Engine and Transmission


Engine Displacement: 1461 cc
Fuel Type: Diesel
Power: 65 PS
Torque: 160 Nm
No of Cylinders: 4
Transmission: Manual
No of Gears: 5
Drive Type: FWD
Paddle Shift: N
Kerb Weight: 1155 Kg
Performance and Fuel Economy
Overall (Km/l): 20.8
Top Speed (Km/h): 160
Brakes Steering Suspension and Tyres
Suspension Front: Macpherson-Type With Wishdon Link
Suspension Rear: H-Section Torsion Beam With Programmed Deflection-Coil Spring
Brakes Front: Disc

Brakes Rear: Drum


Steering Type: Hydraulic Power Steering
Minimum Turning Radius: 5.25 Meters
Tyre Size: 185 / 70 R14
Wheel Size: 14
Tubeless tyres: Yes
Interior Dimensions
Seating Capacity: 5
Doors: 4
No of Seating Rows: 2
Boot Space: 330 Liters
Fuel Capacity: 50 Liters
Exterior Dimensions
Length Width Height: 3991*1740*1540
Wheelbase: 2630 mm
Ground Clearance: 172 mm
Interior
Seat Upholstery ( Leather/ Fabric): Fabric
Front and Rear Head Restraint: Both
Leather-wrapped Gear Knob: N
Exterior / Exterior Appearance
Wheels Type (Pressed Steel/ Alloy): Alloy
Body Colored Bumpers: Y
Outside Rear View Mirror: Electrically Adjustable
Body colored ORVMs: Y
Turn indicators on ORVM: N
Body Colored Outside Door Handles: Y
Side Mouldings: Y
Clear lens Head Lamp: Y
Clear lens Tail Lamp: Y
Cornering Headlights: N

Projector Headlights: N
LED tail lamps: N
Trunk Light: Y
Rear Spoiler: N
Antenna: Y
Roof Rails: Y
Comfort and Convenience
AC: Manual
Rear AC Ducts: N
Heater: Y
Power Steering: Y
Adjustable Steering (Tilt/Rake): N
Power Windows ( Front / Rear ):Both
Adjustable Driver Seat: Manually
Adjustable Front Passenger Seat: Manually
Low Fuel Warning Lamp: Y
Distance to empty: Y
Average Speed Display: Y
Average Fuel Consumption: Y
Safety and Security
Airbags: 1 (Driver Only)
Anti-lock Braking System (ABS): Y
Electronic Brakeforce Distribution (EBD): Y
Anti Theft System (Immobilizer): Y

SsangYong Rexton by Mahindra


Overview
Manufacturer: SsangYong Motor
Also called: Micro Rexton (SriLanka), Huanghai Aurora (China), Derways Aurora (Russia)
Production: 2001present
Assembly: (since 2009) Chakan, India (Mahindra & Mahindra[1])
Designer: Italdesign Giugiaro
Body and chassis
Class: Mid-size SUV
Body style: 5-door wagon
Related: Mercedes-Benz M-Class W163
Dimensions
Wheelbase: 2,820 mm (111.0 in)
Length: 4,720 mm (186 in)
Width: 1,870 mm (74 in)
Height: 1,830 mm (72 in)
It is based on the Mercedes-Benz M-Class W163 platform. This vehicle offers standard
appointments such as quiet on-road performance, car-like handling, and off-road capability, and
can be configured to seat seven people or as a five-seater.
The car's design was also styled by Giorgietto Giugiaro's Italdesign studio.
In 2006, the model received style changes, along with more comfort and convenience and was
then renamed the Rexton II.

First Genration ( Y200 2001-20060)


The SsangYong Rexton first generation was produced from 2001 to 2006. The car was available
only with four-wheel drive and one of three engines: a 2.7 liter 121 kW (162 hp) / 342 Nm
(252 lbft) common rail diesel, a 2.9 liter diesel and a 3.2 liter 162 kW (217 hp) / 310 Nm
(229 lbft) petrol engine, all manufactured under license from Mercedes-Benz.
In the summer of 2003, the Rexton was introduced in Europe. Technically, it is based on a
slightly extended chassis of the SsangYong Musso.
Initially, it was only available with a choice of two engines: a 2.9-liter five-cylinder diesel with
120 hp (89 kW) and 3.2-liter gasoline engine with 220 hp (164 kW). Both engines were
borrowed from the Mussowhich were licensed from Mercedes-Benz.
The transmission options for the diesel model were originally either a five-speed manual with a
gearbox from the American company Tremec or a four-speed automatic with a gearbox from the
Australian company BTR Automotive.
The petrol model was only offered with the automatic transmission. In 2004 with the
introduction of the 2.7 litre motor, a 5 speed Tiptronic gearbox (provided by Mercedes-Benz)
became an optional extra with that engine.

Second Generation (Y3oo 2006-2012)


The Rexton second generation was released in 2006 as a replacement for the original Rexton. In
Malaysia, the Rexton II is assembled by the sole importer and distributor of SsangYong vehicles
in Malaysia.

Rexton in India
India's largest SUV maker Manhindra and Mahindra had first introduced the Ssangyong Rexton
model in the country in 2012. It was first introduced in a total of two variants namely RX5 and
RX7, which are powered by the same 2.7-litre diesel engine. This engine in top end trim can
unleash a maximum power of 184bhp along with a peak torque of 402mm. However, in the base
version, it can churn out 162bhp of power along with 340Nm of torque. Recently, the automaker
has also rolled out a brand new RX6 trim in its series, which increases the total number of
variants to three. The car maker is offering the top end variant with automatic transmission
option, which sends out torque to all four wheels in AWD layout. While the remaining variants
are available with five speed manual transmission gearbox that works with intelligent 4x4
torque-on-demand system, which enables the driver to switch between 2WD and 4WD. This
model series is bestowed with several advanced comfort features including fully automatic
climate control system, audible rear parking sensors, and navigation system with pre-loaded
maps, which certainly makes the journey comfortable. The car maker is offering the base variant
with 8-way manually adjustable driver's seat while the remaining two trims are bestowed with
electrically adjustable seat.
On the other hand, its top end RX7 trim is equipped with a leather wrapped steering wheel,
which is decorated with additional metal-grain accents. The interiors of this SUV are extremely
spacious that can accommodate total of seven passengers. The company used high quality
scratch resistant material, which gives a luxuriant look to the cabin. In addition to these, there are
a lot of chrome inserts given inside the cabin, which adds to its elegance. This SUV has a classy
external appearance with neatly sculptured cosmetics on all the facts. However, the most

attractive aspect of its exteriors is its radiant eagle-eye shaped headlight cluster with 'Rexton'
emblem. The automaker is offering all the variants in this series with a set of stylish 10-spoke
design alloy wheels, which further emphasizes its classy appeal. This vehicle is built with triple
layer construction using ultra-rigid steel frame, which can reduce the risk of injuries in case of
any accident. There are several sophisticated features like dual front airbags, 3-point ELR
seatbelts, engine immobilizer and ABS. While the mid and top end trims are also incorporated
with aspects like ESP with off switch, active roll over protection and anti slip regulation, which
keeps the vehicle stable irrespective of road conditions. At present, it is placed in the luxury SUV
segment where it is competing with the likes of Honda CRV, Toyota Fortuner, Ford Endeavour
and Skoda Yeti. The automaker is currently offering this vehicle with an attractive warranty of 3
years or 100000 kilometers (whichever is earlier).
Mahindra Thar
Overview
Manufacturer: Mahindra & Mahindra Limited
Production: 2010present
Assembly: Nasik, Maharashtra, India
Body and chassis
Class: Compact SUV, Mid-size SUV,Convertible
Body style: Jeep
Layout: Front engine, rear-wheel drive /four-wheel drive
The Mahindra Thar is a compact and mid-size four-wheel drive off-road and sport utility
vehicle (SUV), manufactured by Indian automaker Mahindra & Mahindra Limited. The vehicle
was launched in the Indian market on October 4, 2010 to fill the void left by its predecessor
the Mahindra MM540. The Thar has been voted one of the top 10 SUVs available in the Indian
market. Three variants-DI 2WD, DI 4WD and CRDe, with available on soft top version.
The Thar also comes with a 7 seater option, though it can be converted in to a two seater.

Mahindra Xylo
Overview
Manufacturer: Mahindra & Mahindra
Production: 2009-present
Assembly: Nashik, Maharashtra, India
Body and chassis
Body style: 5-door crossover MUV
Related: Mahindra Scorpio Mahindra, Quanto, Mahindra Genio
Powertrain
Engine: 2.2L M-Hawk Turbo Diesel, 2.5 L mDI CRDe Turbo Diesel
Transmission: 5-speed manual transmission
Dimensions
Wheelbase: 2,760 mm (109 in)
Length: 4,520 mm (178 in)
Width: 1,850 mm (73 in)

Height: 1,895 mm (75 in)

The Mahindra Xylo is a MUV (multi utility vehicle), designed and manufactured by Mahindra &
Mahindra. The Xylo was launched on 13 January 2009 at Nashik. Five variants, D2, D4, H6, H8
and H9 are currently available [as of Jan 2015]. More than 3,000 units of Xylo were sold in its
first full month of sales, after launch in March 2009.[1]
History
The project, which initially had the codename of Ingenio, was announced by the company in
2006 and was designed to compete in the Indian market with both the Toyota Innova and the
Chevrolet Tavera. The project cost Mahindra around Rs 550 crore. Production started in the
Nashik plant in December 2008.
Launched in India in early 2009, the Xylo started off well with an initial flurry of sales.
However, since then sales have slowly declined, and it is widely believed that sales have not
lived up to Mahindra's expectations. The Xylo was loosely based on the Mahindra Scorpio's
ladder frame chassis. This chassis was modified to take account of the Xylo's longer wheelbase
and higher refinement requirements. The Xylo was launched with a number of seating
configurations, including two up front, and two benches [8 seats], or two up front, middle row
captain seats and a rear bench [7 seats].
Initially 44 variants of the Xylo were also planned, and various test mules had been spotted
undergoing trials. However, to date Mahindra has not launched any 44 variants of the Xylo.
This is perhaps due to the company fearing cannibalisation of its Scorpio's sales, as well as
reluctance to INVEST further in development costs of an underperforming model.

In 2012 the Xylo was comprehensively updated. New gearboxes and the modern M-Hawk turbo
diesel 2.2L engine were introduced to higher variants. Other changes included revised
suspension tuning, a restyled front end, smoked rear lights, blacked out B-, C- and D-pillars, and
leather interiors for the top spec H9 model.
These changes greatly improved the Xylo, both in terms of refinement, handling, and looks, all
of which had been criticized in the press and by owners alike. Xylo sales crossed the 100,000
mark in June 2012.
In late 2013 minor [and some would say unsightly] cosmetic revisions were again made to the
domestic Indian version of the Xylo, including side body decals and a bonnet chrome strip.
The crash safety performance of the Mahindra Xylo is unknown, as it has not been subjected to
any crash tests by a safety advocacy organisation, such as Global NCAP.
Certain variants of the Xylo do come equipped with dual front airbags and ABS with EBD. It is
unclear whether the Xylo is equipped with other features such as seat belt pre-tensioners and side
door impact beams.
The Xylo also lacks 3 point seat belts for the centre rear passenger seats, and Electronic Stability
Control [ESC] is not offered on any variants. It is hoped that a later revision of the Xylo will
include these vital modern safety aids.
The Xylo is sold in select international markets, including South Africa, Colombia, and certain
South Asian and North African countries.
Mahindra Quanto
The Mahindra Quanto was launched in September 2012 as a shortened version of the Xylo. It
shares the Xylo's front end, doors and wheelbase. However, the rear overhang is dramatically
shortened to bring the total length under 4m, which has certain retail tax benefits in the domestic
Indian market. The Quanto seats five in-cabin, with two extra jump seats in the rear. It is
powered by a three-cylinder engine for the Indian domestic market. The Quanto is sold in
various international makets, including South Africa, with the 4 cylinder 2.2L M-Hawk diesel
engine.

DEALER PROFILE: RAJ VEHICLES PATIALA


Our Distinction:
This is one of the largest authorized dealers for Mahindra & Mahindra Automotives in the area of Patiala.
Partners in Progress:
We are the preferred partners of M&M automotives, chiefly due to our successful sales record and quality.
Our facilities have remained unsurpassed, as we strive everyday to better our self.
Commanding Presence:
Raj vehicles are a centralized air-conditioned showroom of M&M automotives. It is situated on Rajpura
road, spread gracefully and decorated elegantly over an impressive 8100 sq.ft. Being equipped with
affable front office staff and adept professional technicians, Provide a perfect of quality Service and
Reliability.
Space Friendly:
The interiors are aimed at making you feel completely at ease, in luxury. Because for us the customer is
king, one who deserves a regal offering. The setting is apt for times when you need to switch into a
relaxed state of mind.
Technology to Stay Ahead:

We are equipped with the latest technological advancement in the industry, in order to give the best of
services when it matters. Not just to be part of, But to build the future, is our motto.
Ambience the Exude Relaxation:
Ours is one of the few service centers to be equipped with a fully-fledged customer-waiting lounge. A part
from a television and pool table, it had a wed kiosk to keep u connected all the time.
Service with Commitment:
Our dedicated team of mechanical specialty offers expert treatment for your vehicle. We ensure
consistency in performance each time, without fail.

Attention to Details:
We provide genius spare parts and accessories to ensure exceptional performance. Every single aspect
related to your vehicle is taken care of at our premises.
Dealing Made Convenient:
It is a part of our commitment policy to give advantage to the customer at every juncture. We offer
assistance of every kind at our premises itself, which makes it a one stop facility.
Expert Guidance at Every Step:
Our sales team gives utmost priority to your satisfaction. When you need help to make the right choice, it
is ensured that the result is beyond your expectations thus making it a point that you get the best in both
luxury and comfort always.
Models: Mahindra & Mahindra has been launching various type of MUVs and cars from the year of 1945,
keeping in mind the quality, design, driving, comfort, fuel efficiency, and service and resale value. These
from a formidable force that gives our customers the pride and the joy of value forever. What drives
M&M is

Commitment

Leadership

Any an eye for appropriate technology.

Since 1945, when M&M first began manufacturing MUVs & LCVs, M&M have been engaged in a
single-minded endeavor to bring you cars that only state-of-the-art, but are also some f the most
environment-friendly vehicles in this world-a reflection of our commitment and care, for better
environment.
At the heart of every M&M is a unique engineering and an optimal mix of power and economy.
All this is supported by M&M nation wide dealership network and automated workshop that provide
excellent after sale service
The company has constantly exploring new opportunity to define the shape to tomorrows driving
technology.
Promotional Activities:
The promotional activities adopted by G L Motors are

Test Driving
Free Driving
Hoarding
Discounts
Advertisement in Newspaper and magazines
Gift Schemes
Free Services
Mileage Contents
KIOSK
Monthly schemes
Farmers schemes

Promotional expenses have been borne by both Raj vehicles and M&M, shares in advertisement cost.
Service Offered:
Free and paid services provided after the sale of car.

Free checkups campaigns


Finance through bank
Demonstration for new products
Acceptance of warranty claims

Working Time in Raj vehicles:

Working hours in Raj vehicles are 8 hours 30 minutes per day starting from 9:30 am to 6 pm with onehour break for lunch and 15 minutes for evening tea and coffee.

PRODUCT AVAILABLE AT RAJ VEHICLES:


Raj vehicles have franchise of M&M Company.
These are:

BOLERO
VARIANTS

EX SHOWROOM PRICE

ON ROAD PRICE

1. SLE- BS3

7,15,798

8,30,908

2. SLX- BS3

7,68,622

8,89,569

3. ZLX- BS3

7,85,175

9,07,993

THAR

VARIANTS
1. DI 2WD
2. DI 4WD

EX SHOWROOM PRICE
5,12,498
5,62,913

ON ROAD PRICE
5,98,434
6,54,391

XYLO
VARIANTS
1. D-2

EX SHOWROOM PRICE
7,96,582

ON ROAD PRICE
9,19,084

2. D-4

8,39,365

9,66,392

VERITO
VARIANTS
1. D4
2. D6

EX SHOWROOM PRICE
6,99,089
7,69,001

ON ROAD PRICE
8,07,606
9,39,976

VERITO VIBE
VARIANTS
1. D4
2. D4

EX SHOWROOM PRICE
6,30,881
6,93,409

ON ROAD PRICE
7,25,767
7,95,125

SCORPIO
VARIANTS
1. S2
2. S4
3. S4+
4. S4- 4WD
5. S4+ 4WD
6. S6
7. S6+
8. S8
9. S10
10. S10- 4WD

EX SHOWROOM PRICE
8,74,943
9,40,876
9,82,744
10,59,412
10,99,345
10,66,301
10,97,597
11,81,397
12,46,975
13,59,899

ON ROAD PRICE
10,01,153
10,74,156
11,20,597
12,05,792
12,50,141
12,13,459
12,48,697
13,41,115
14,14,048
15,39,444

QUANTO
VARIANTS
1. C6
2. C8

EX SHOWROOM PRICE
780004
841437

ON ROAD PRICE
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CONSUMER BEHAVIOUR
Consumer Behaviour is the study of individuals, groups, or organizations and the processes
they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the consumer and society.
It blends elements from psychology, sociology, social anthropology, marketing and economics.
It attempts to understand the decision-making processes of buyers, both individually and in
groups such as how emotions affect buying behaviour.

It studies characteristics of individual consumers such as demographics and behavioural


variables in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, sports, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Research has shown that consumer behaviour is
difficult to predict, even for experts in the field.
Relationship marketingis an influential asset for customer behaviour analysis as it has a keen
interest in the re-discovery of the true meaning of marketing through the re-affirmation of the
importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship management,
personalisation, customisation and one-to-one marketing. Social functions can be categorized
into social choice and welfare functions.

Each method for vote counting is assumed as social function but if Arrows possibility
theorem is used for a social function, social welfare function is achieved. Some specifications of
the

social

functions

are

decisiveness, neutrality, anonymity, monotonicity,unanimity,

homogeneity and weak and strong Pareto optimality.


No social choice function meets these requirements in an ordinal scale simultaneously. The most
important characteristic of a social function is identification of the interactive effect of
alternatives and creating a logical relation with the ranks. Marketing provides services in order to
satisfy customers.
With that in mind the productive system is considered from its beginning at the production level,
to the end of the cycle, the consumer (Kioumarsi et al., 2009).
Consumer behaviour is the study that focuses on how, what, when and why people buy. It is a
study that blends elements from psychology, sociology, anthropology, marketing and economics.
It attempts to understand the consumers decision making process, both individually and in
groups based on social and economic division.
It studies characteristics of individual consumers such as demographics, psychographics, and
behavioural variables in an attempt to understand people's wants.

Topics under this study include, but are not limited to, affect, mood, and emotion; explicit and
implicit attitudes; social identity; self-concept and self-presentation; attachment, commitment,
trust, and loyalty; consumer-marketer relationships; motivation, goals, and regulatory focus;
conscious and deliberative information processing and reasoning; unconscious, automatic, and
intuitive information processing; consumption and culture; consumer decision-making;
organisational buying; technology and consumption; consumption value; post-consumption
reactions and appraisals; measuring consumption outcomes; and design and aesthetic issues. It
also tries to assess influences on the consumer from groups such as family, friends, reference
groups, and society in general.

Importance of studying consumer behaviour


Perhaps the most challenging concept in marketing deals with understanding why consumers do
what they do (or dont do). But such knowledge is critical for marketers since having a strong
understanding of consumer behaviour will help shed light on what is important to the consumer
and also suggest the important influences on consumer decision-making.
Using this information, marketers can create marketing programs that they believe will be of
interest to consumers. The reason for studying consumer behaviour seems very simple to
understand the consumers mindset and the factors that influence it.
But, just that much is not enough; today, we need to study consumer behaviour in detail, looking
into the smallest nuances of it so as to identify what exactly the consumer desires because in
todays times with so much of competition in every market segment we cannot afford to take the
consumer for granted.
With a range of choices in every product, if the consumers desire is not looked after they will
surely move on to any one of the competitors.
The answer is the lack of understanding of consumer behaviour. Not only is launching a new
product and getting the product noticed by the consumer important but what is more important is

to make sure that the consumer is hooked on to the product and comes back for it time and again
We can sell a product to a consumer again and again only if the consumer feels that this is the
best product in the market to satisfy his needs and maybe even give him some delight and in
order to design the best product, it is necessary to understand not just the physics and chemistry
of the product, but also the psychology of consumers and the sociology of consumer groups or
networks.
This is exactly why all managers must become astute analysts of consumer motivation and
behaviour. A fundamental understanding of consumer behaviour underpins all marketing activity
and is a necessary prerequisite to organisations being marketing orientated and thus profitable.

Black Box model


The black box model shows the interaction of stimuli, consumer characteristics, decision process
and consumer responses. It can be distinguished between interpersonal stimuli (between people)
or intrapersonal stimuli (within people). The black box model is related to the black box
theory of behaviourism, where the focus is not set on the processes inside a consumer, but
the relation between the stimuli and the response of the consumer. The marketing stimuli are
planned and processed by the companies, whereas the environmental stimulus are given by social
factors, based on the economical, political and cultural circumstances of a society. The buyer's
black box contains the buyer characteristics and the decision process, which determines the
buyer's responses.

Environmental factors

Buyer's black box

Marketing

Environmental

Buyer

Stimuli

Stimuli

Characteristics

Buyer's
response

Decision Process

Economic

Attitudes

Product

Technological

Motivation

Price

Political

Perceptions

Place

Cultural

Personality

Promotion

Demographic

Lifestyle

Natural

Knowledge

Problem

Product

recognition

choice

Information

Brand choice

search

Dealer

Alternative

choice

evaluation

Purchase

Purchase decision timing


Post-purchase

Purchase

behaviour

amount

The black box model considers the buyer's response as a result of a conscious, rational decision
process, in which it is assumed that the buyer has recognized the problem. However, in reality
many decisions are not made in awareness of a determined problem by the consumer.

Information search
Once the consumer has recognised a problem, they search for information on products and
services that can solve that problem. Belch and Belch (2007) explain that consumers undertake
both an internal (memory) and an external search. Sources of information include personal
sources and experience, and commercial and public sources.
The relevant internal psychological process associated with information search is perception,
which can be defined as "the process by which an individual receives, selects, organises, and
interprets information to create a meaningful picture of the world". Consumers' tendency to
search for information on goods and services makes it possible for researchers to forecast the
purchasing plans of consumers using brief descriptions of the products of interest.
The selective perception process can be divided into: Selective exposure: consumers select which promotional messages they will expose
themselves to.
Selective attention: consumers select which promotional messages they will pay attention
to.

Selective comprehension: consumer interprets messages in line with their beliefs,


attitudes, motives and experiences.
Selective retention: consumers remember messages that are more meaningful or
important to them.
The implications of this process help to develop an effective promotional strategy, and suggest
which sources of information are more effective for the brand.

Evaluation of alternatives
At this time the consumer compares the brands and products that are in their evoked set. The
evoked set refers to the number of alternatives that are considered by consumers during the
problem-solving process. Sometimes also known as consideration, this set tends to be small
relative to the total number of options available.
How can the marketing organisation increase the likelihood that their brand is part of the
consumer's evoked set? Consumers evaluate alternatives in terms of the functional and
psychological benefits that they offer. The marketing organisation needs to understand what
benefits consumers are seeking and therefore which attributes are most important in terms of
making a decision. It also needs to check other brands of the customers consideration set to
prepare the right plan for its own brand.

Purchase decision
Once the alternatives have been evaluated, the consumer is ready to make a purchase decision.
Sometimes purchase intention does not result in an actual purchase. The marketing organisation
must facilitate the consumer to act on their purchase intention. The organisation can use a variety
of techniques to achieve this. The provision of credit or payment terms may encourage purchase,
or a sales promotion such as the opportunity to receive a premium or enter a competition may
provide an incentive to buy now. The relevant internal psychological process that is associated

with purchase decision is integration. Once the integration is achieved, the organisation can
influence the purchase decisions much more easily.
There are 5 stages of a consumer buying process: The problem recognition stage, meaning the
identification of something a consumer needs. The search for information, which means you
search your knowledge bases or external knowledge sources for information on the product. The
possibility of alternative options, meaning whether there is another better or cheaper product
available. The choice to purchase the product and then finally the actual purchase of the
product. This shows the complete process that a consumer will most likely, whether recognizably
or not, go through when they go to buy a product.

Consumer Decision Making Process


In our day-to-day life we have to take so many decisions right from the time we wake up to the
time we retire for the night. We have to choose between several brands of toothpaste for brushing
our teeth. We have a variety of soaps to take our bath out of which we choose one. We decide
what we shall have on our breakfast table. We commute to our office using a specific mode of
transport and a specific vehicle to carry us. Then there are decisions regarding our means of

entertainment, cosmetics, sanitary products, health care products, books, magazines and
periodicals and the academic courses and institutions. All these decisions are choices from
several alternatives available.
There are five stages in the buying decision process:
1. Problem recognition
2. Information Seeking
3. Evaluation of Alternatives
4. Buying Decision

5. Post-purchase evaluation
Problem Recognition
Problem recognition is in fact the beginning of the buying process.
It is a matter of perception. We realize what we should have and what we have at present. A
perfume bottle of Charlie may be purchased when one sees it in the window of a shop. Problem
recognition is generally a slow process but can occur fast when purchases are made impulsively.
The need recognition is the first and most important step in the buying process. If there is no
need, there is no purchase. This recognition happens when there is a lag between the consumers
actual situation and the ideal and desired one.
However, not all the needs end up as a buying behavior. It requires that the lag between the two
situations is quite important. But the way (product price, ease of acquisition, etc.) to obtain this
ideal situation has to be perceived as acceptable by the consumer based on the level of
importance he attributes to the need.
For example, you have a pool and you would like someone to take care of regularly cleaning it
instead of you (ideal situation) because it annoys you to do it yourself (actual situation). But you
dont judge the way to reach this ideal situation (pay $250 / month for a specialized company)
as acceptable because its price to obtain it seems too high. Especially compared to the
relatively low level of importance you attach to it. So you wont have a purchase behavior in this
situation.

On the other hand, the ability to be able to go to your work by car in 20 minutes every morning
(ideal situation) rather than lose three hours in transit because you do not have a car and you live
in the countryside (actual situation) is something that means a lot to you. So you will have a
buying behavior to purchase a car. Even if the price is important.
In addition to a need resulting from a new element, the gap between the actual situation and the
ideal situation may be due to three cases. The current situation has not changed, but the ideal
situation has (a neighbor told you about the possibility that you did not know to clean the
pool by a specialized company). Or, the ideal situation is still the same but its the actual
situation has changed (youre tired of cleaning your pool by yourself). Or finally, the two
situations have changed.
The recognition of a need by a consumer can be caused in different ways. Different
classifications are used:
Internal stimuli (physiological need felt by the individual as hunger or thirst) which
opposes the external stimuli such as exposure to an advertisement, the sight of a pretty
dress in a shop window or the mouth-watering smell of a French pain au chocolate
when passing by a bakery.
Classification by type of needs:
Functional need: the need is related to a feature or specific functions of the product or
happens to be the answer to a functional problem. Like a computer with a more powerful
video card to be able to play the latest video games or a washing machine that responds
to the need to have clean clothes while avoiding having to do it by hand or go to the
Laundromat.
Social need: the need comes from a desire for integration and belongingness in the social
environment or for social recognition. Like buying a new fashionable bag to look good at
school or choose a luxury car to show that you are successful in life.
Need for change: the need has its origin in a desire from the consumer to change. This
may result in the purchase of a new coat or new furniture to change the decoration of
your apartment.
The Maslows hierarchy of needs: Developed by the eponymous psychologist, this is one the best
known and widely used classifications and representations for hierarchy of needs

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his


1943 paper "A Theory of Human Motivation" in Psychological Review. Maslow subsequently
extended the idea to include his observations of humans' innate curiosity.
His theories parallel many other theories of human developmental psychology, some of which
focus on describing the stages of growth in humans. Maslow used the terms "physiological",
"safety", "belongingness" and "love", "esteem", "self-actualization" and "self-transcendence" to
describe the pattern that human motivations generally move through.
Maslow studied what he called exemplary people such as Albert Einstein, Jane Addams, Eleanor
Roosevelt, and Frederick Douglass rather than mentally ill or neurotic people, writing that "the
study of crippled, stunted, immature, and unhealthy specimens can yield only a cripple
psychology and a cripple philosophy."
Maslow studied the healthiest 1% of the college student population. Maslow's theory was fully
expressed in his 1954 book Motivation and Personality. The hierarchy remains a very popular
framework in sociology research, management training and secondary andhigher psychology
instruction.

Hierarchy
Maslow's hierarchy of needs is often portrayed in the shape of a pyramid with the largest, most
fundamental levels of needs at the bottom and the need for self-actualization at the top. While the
pyramid has become the de facto way to represent the hierarchy, Maslow himself never used a
pyramid to describe these levels in any of his writings on the subject.
The most fundamental and basic four layers of the pyramid contain what Maslow called
"deficiency needs" or "d-needs": esteem, friendship and love, security, and physical needs. If
these "deficiency needs" are not met with the exception of the most fundamental
(physiological) need there may not be a physical indication, but the individual will feel anxious
and tense. Maslow's theory suggests that the most basic level of needs must be met before the
individual will strongly desire (or focus motivation upon) the secondary or higher level needs.
Maslow also coined the term "metamotivation" to describe the motivation of people who go
beyond the scope of the basic needs and strive for constant betterment.

The human mind and brain are complex and have parallel processes running at the same time,
thus many different motivations from various levels of Maslow's hierarchy can occur at the same
time. Maslow spoke clearly about these levels and their satisfaction in terms such as "relative,"
"general," and "primarily." Instead of stating that the individual focuses on a certain need at any
given time, Maslow stated that a certain need "dominates" the human organism. Thus Maslow
acknowledged the likelihood that the different levels of motivation could occur at any time in the
human mind, but he focused on identifying the basic types of motivation and the order in which
they should be met.

1. Physiological needs
2. Safety needs
3. Need of love and belonging
4. Need of esteem (for oneself and from the others)
5. Need of self-actualization

Physiological needs
Physiological needs are the physical requirements for human survival. If these requirements are
not met, the human body cannot function properly and will ultimately fail. Physiological needs
are thought to be the most important; they should be met first.
Air, water, and food are metabolic requirements for survival in all animals, including humans.
Clothing and shelter provide necessary protection from the elements. While maintaining an
adequate birth rate shapes the intensity of the human sexual instinct, sexual competition may also
shape said instinct.

Safety needs
With their physical needs relatively satisfied, the individual's safety needs take precedence and
dominate behavior.

In the absence of physical safety due to war, natural disaster, family violence, childhoodabuse,
etc people may(re-)experience post-traumatic stress disorder or transgenerational trauma.
In the absence of economic safety due to economic crisis and lack of work opportunities
these safety needs manifest themselves in ways such as a preference for job security, grievance
procedures for protecting the individual from unilateral authority, savings accounts, insurance
policies, reasonable disability accommodations, etc. This level is more likely to be found in
children because they generally have a greater need to feel safe.

Safety and Security needs include:

Personal security
Financial security
Health and well-being
Safety net against accidents/illness and their adverse impacts

Love and belonging


After physiological and safety needs are fulfilled, the third level of human needs is interpersonal
and involves feelings of belongingness. This need is especially strong in childhood and can
override the need for safety as witnessed in children who cling to abusive parents. Deficiencies
within this level of Maslow's hierarchy due to hospitalism ,neglect, shunning, ostracism, etc.
can impact the individual's ability to form and maintain emotionally significant relationships in
general, such as:
Friendship
Intimacy
Family
According to Maslow, humans need to feel a sense of belonging and acceptance among their
social groups, regardless whether these groups are large or small. For example, some large social
groups may include clubs, co-workers, religious groups, professional organizations, sports teams,
and gangs. Some examples of small social connections include family members, intimate

partners, mentors, colleagues, and confidants. Humans need to love and be loved both sexually
and non-sexually by others. Many people become susceptible to loneliness, social anxiety,
and clinical depression in the absence of this love or belonging element. This need for belonging
may overcome the physiological and security needs, depending on the strength of the peer
pressure.

Esteem
All humans have a need to feel respected; this includes the need to have self-esteem and selfrespect. Esteem presents the typical human desire to be accepted and valued by others. People
often engage in a profession or hobby to gain recognition. These activities give the person a
sense of contribution or value. Low self-esteem or an inferiority complex may result from
imbalances during this level in the hierarchy. People with low self-esteem often need respect
from others; they may feel the need to seek fame or glory. However, fame or glory will not help
the person to build their self-esteem until they accept who they are internally. Psychological
imbalances such as depression can hinder the person from obtaining a higher level of self-esteem
or self-respect.
Most people have a need for stable self-respect and self-esteem. Maslow noted two versions of
esteem needs: a "lower" version and a "higher" version. The "lower" version of esteem is the
need for respect from others. This may include a need for status, recognition, fame, prestige, and
attention. The "higher" version manifests itself as the need for self-respect. For example, the
person may have a need for strength, competence, mastery, self-confidence, independence, and
freedom. This "higher" version takes precedence over the "lower" version because it relies on an
inner competence established through experience. Deprivation of these needs may lead to an
inferiority complex, weakness, and helplessness.
Maslow states that while he originally thought the needs of humans had strict guidelines, the
"hierarchies are interrelated rather than sharply separated". [5] This means that esteem and the
subsequent levels are not strictly separated; instead, the levels are closely related.

Self-actualization
"What a man can be, he must be." This quotation forms the basis of the perceived need for selfactualization. This level of need refers to what a person's full potential is and the realization of

that potential. Maslow describes this level as the desire to accomplish everything that one can, to
become the most that one can be. Individuals may perceive or focus on this need very
specifically. For example, one individual may have the strong desire to become an ideal parent.
In another, the desire may be expressed athletically. For others, it may be expressed in paintings,
pictures, or inventions. As previously mentioned, Maslow believed that to understand this level
of need, the person must not only achieve the previous needs, but master them.

Self-transcendence
In his later years, Maslow explored a further dimension of needs, while criticizing his own vision
on self-actualization. The self only finds its actualization in giving itself to some higher goal
outside oneself, in altruism and spirituality.

Criticism
In their extensive review of research based on Maslow's theory, Wahba and Bridwell found little
evidence for the ranking of needs that Maslow described or for the existence of a definite
hierarchy at all.
The order in which the hierarchy is arranged (with self-actualization described as the highest
need) has been criticized as being ethnocentric by Geert Hofstede. Maslow's hierarchy of needs
fails to illustrate and expand upon the difference between the social and intellectual needs of
those raised in individualistic societies and those raised in collectivist societies. The needs and
drives of those in individualistic societies tend to be more self-centered than those in collectivist
societies, focusing on improvement of the self, with self-actualization being the apex of selfimprovement. In collectivist societies, the needs of acceptance and community will outweigh the
needs for freedom and individuality.
The term "Self-actualization" may not universally convey Maslow's observations; this motivation
refers to focusing on becoming the best person that one can possibly strive for in the service of
both the self and others. Maslow's term of self-actualization might not properly portray the full
extent of this level; quite often, when a person is at the level of self-actualization, much of what
they accomplish in general may benefit others or, "the greater self".
The position and value of sex on the pyramid has also been a source of criticism regarding
Maslow's hierarchy. Maslow's hierarchy places sex in the physiological needs category along

with food and breathing; it lists sex solely from an individualistic perspective. For example, sex
is placed with other physiological needs which must be satisfied before a person considers
"higher" levels of motivation. Some critics feel this placement of sex neglects the emotional,
familial, and evolutionary implications of sex within the community, although others point out
that this is true of all of the basic needs.

Information search
Once the need is identified, its time for the consumer to seek information about possible
solutions to the problem. He will search more or less information depending on the complexity
of the choices to be made but also his level of involvement. (Buying pasta requires little
information and involves fewer consumers than buying a car.)
Then the consumer will seek to make his opinion to guide his choice and his decision-making
process with:
Internal information: this information is already present in the consumers memory. It comes
from previous experiences he had with a product or brand and the opinion he may have of the
brand.
Internal information is sufficient for the purchasing of everyday products that the consumer
knows including Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods
(CPG). But when it comes to a major purchase with a level of uncertainty or stronger
involvement and the consumer does not have enough information, he must turns to another
source:
External information: This is information on a product or brand received from and obtained by
friends or family, by reviews from other consumers or from the press. Not to mention, of course,
official business sources such as an advertising or a sellers speech.
During his decision-making process and his Consumer Buying Decision Process, the consumer
will pay more attention to his internal information and the information from friends, family or
other consumers. It will be judged more objective than these from advertising, a sellers speech
or a commercial brochure of the product.

Alternative evaluation

Once the information collected, the consumer will be able to evaluate the different alternatives
that offer to him, evaluate the most suitable to his needs and choose the one he think its best for
him.
In order to do so, he will evaluate their attributes on two aspects. The objective characteristics
(such as the features and functionality of the product) but also subjective (perception
and perceived value of the brand by the consumer or its reputation).
Each consumer does not attribute the same importance to each attribute for his decision and his
Consumer Buying Decision Process. And it varies from one shopper to another. Mr. Smith may
prefer a product for the reputation of the brand X rather than a little more powerful but less
known product. While Mrs. Johnson has a very bad perception of that same brand.
The consumer will then use the information previously collected and his perception or image of a
brand to establish a set of evaluation criteria, desirable or wanted features, classify the different
products available and evaluate which alternative has the most chance to satisfy him.
The process will then lead to what is called evoked set. The evoked set (aka consideration
set) is the set of brands or products with a probability of being purchased by the consumer
(because he has a good image of it or the information collected is positive).
On the other hand, inept set is the set of brands or products that have no chance of being
purchased by the shopper (because he has a negative perception or has had a negative buying
experience with the product in the past). While inert set is the set of brands or products for
which the consumer has no specific opinion.
The higher the level of involvement of the consumer and the importance of the purchase are
stronger, the higher the number of solutions the consumer will consider will be important. On the
opposite, the number of considered solutions will be much smaller for an everyday product or a
regular purchase.

Purchase decision
Now that the consumer has evaluated the different solutions and products available for respond
to his need, he will be able to choose the product or brand that seems most appropriate to his
needs. Then proceed to the actual purchase itself.

His decision will depend on the information and the selection made in the previous step based on
the perceived value, products features and capabilities that are important to him.
But his Consumer Buying Decision Process and his decision process may also depend or be
affected by such things as the quality of his shopping experience or of the store (or online
shopping website), the availability of a promotion, a return policy or good terms and conditions
for the sale.
For example, a consumer committed to the idea of buying a stereo of a well-known brand could
change his decision if he has an unpleasant experience with sellers in the store. While a
promotion in a supermarket for a yogurt brand could tip the scale for this brand in the
consumers mind who was hesitating between three brands of his evoked set.

Post-purchase behavior
Once the product is purchased and used, the consumer will evaluate the adequacy with his
original needs (those who caused the buying behavior) and whether he has made the right choice
in buying this product or not. He will feel either a sense of satisfaction for the product (and the
choice) or, on the contrary, a disappointment if the product has fallen far short of expectations.
If the product has brought satisfaction to the consumer, he will then minimize stages of
information search and alternative evaluation for his next purchases in order to buy the same
brand which will produce customer loyalty.
On the other hand, if the experience with the product was average or disappointing, the consumer
is going to repeat the 5 stages of the Consumer Buying Decision Process during his next
purchase but by excluding the brand from his evoked set.
The post-purchase evaluation may have important consequences for a brand. A satisfied
customer is very likely to become a loyal and regular customer. Especially for everyday
purchases with low level of involvement such as Fast-Moving Consumer Goods (FMCG) or
Consumer Packaged Goods (CPG). A loyalty which is a major source of revenue for the brand
when you combine all purchases made by customer throughout his entire life (called lifetime
customer value).

Positive or negative, consumers will also be able to share their opinion on the brand whether in
their family or by word-of-mouth. A tendency not to be overlooked because now with the
Internet, an unhappy customer can have a strong power to harm for a brand.
Thats why thats important for companies to have awareness of that matter. In addition to
optimizing the customer experience, a guarantee (for example, for a washing machine), an
efficient customer service and a specific call center are some of the assets that can be developed
to improve post-purchase behavior if there is any trouble with the product.

An example of Consumer Buying Decision Process


Stage 1 Need recognition: Its Sunday night. Youre hungry (internal physiological stimuli)
and there is nothing in the fridge. You will order food (statement of need).
Stage 2 Information search: You already have ordered to the Indian restaurant in your street
last month (internal information). A friend recommended a pizzeria in your neighborhood
(external information from environment). And this morning youve found a flyer for a sushi
restaurant in your mailbox (external information from advertising).
Stage 3 Alternative evaluation: You have a bad opinion of the Indian restaurant since youve
been sick the last time (inept set). The pizzeria is both recommended by your friend and also
happens to be a well-known brand (positive perception evoked set). As for the sushi restaurant,
it got good reviews on Trip advisor (positive perception evoked set).
Stage 4 Purchase decision: After evaluating the possibilities, youve decided to choose the
well-known pizza delivery chain. In addition, a new episode of your favorite TV show is
broadcasted tonight on TV.
Stage 5 Post-purchase behavior: The pizza was good (positive review). But you know there
were too many calories and you regret a little bit (mixed feelings about yourself). The next time

you will choose the sushi restaurant. There is less fat in sushi than pizza (next purchase
behavior)!

Understand the Consumer Buying Decision Process in order to adapt your


marketing strategy
By improving their knowledge of the Consumer Buying Decision Process, brands can improve
their marketing strategy to effectively respond and be present with their customers at each stage
of their buying behavior. And thus raise and create a need, strengthen their relationship with their
customers and grow their sales.

It always starts with recognition of a need!


The start of the buying behavior of the consumer is the need recognition. If there is no need,
there is no purchase! Thats why generate or reinforce a need in consumers mind to trigger the
buying behavior has a fundamental importance for brands.
Steve Jobs had become a master in the area with Apple thanks to remarquable campaigns by
successfully creating a need for millions of consumers for products they had never thought
before. But have finally become an important part of their daily lives.
In a different field, TV infomercials are remarquable examples of how to create an unexpected
need in a consumers mind for a new product. You probably never felt any difficulty to cook a
salad, but while watching the introduction of this great infomercial for this new kitchen tool, you
finally realize the difficulty of the task and the importance of this new product as a solution to
this problem.
Brands must focus on the activation or recall of a need whether physiological, functional,
social or change-related for the consumer through their advertising campaigns.

Brand awareness for everyday purchases is crucial

For everyday purchases with low level of involvement, consumers will consider only a limited
number of brands when making their choice. Those that come in head first or they know at least
by name. This is called Top-of-mind awareness (TOPA).
For brands of the Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG)
industry, branding and brand awareness can therefore be a real factor of influence of the
consumer buying decision process.

Provide concrete information for the alternative evaluation


During the alternative evaluation stage of the Consumer Buying Decision Process, consumers
are looking for solid, reliable and tangible information that will allow them to make their choice.
The brands interest is to provide concrete information and proof of the product features, its
added value compared to its competitors and how it will respond to their need in order to provide
consumers with the information they need and positive influence in their decision making
process.

Improve the shopping experience and customer relationships


As we saw in previous section, the stage of post-purchase behavior can have important
consequences for a brand.
To avoid reputation damage and to develop a lasting relationship with its customers, the brands
interest is to multiply actions for optimizing the shopping experience in-store as well as the
product experience. But also provide great customer service in case of dissatisfaction or issue
with the product.

The factors influencing consumer behavior

There are 4 main types of factors influencing consumer behavior


There are 4 main types of factors influencing consumer behavior: cultural factors, social factors,
personal factors and psychological factors.

I. Cultural factors
Cultural factors are coming from the different components related to culture or cultural
environment from which the consumer belongs.
Culture and societal environment:
Culture is crucial when it comes to understanding the needs and behaviors of an individual.
Throughout his existence, an individual will be influenced by his family, his friends, his cultural
environment or society that will teach him values, preferences as well as common behaviors to
their own culture.
For a brand, it is important to understand and take into account the cultural factors inherent to
each market or to each situation in order to adapt its product and its marketing strategy. As these
will play a role in the perception, habits, behavior or expectations of consumers.
For example, in the West, it is common to invite colleagues or friends at home for a drink or
dinner. In Japan, on the contrary, invite someone home does not usually fit into the local
customs. It is preferable to do that this kind of outing with friends or colleagues in restaurant.

A significant specificity to take into account for the brands in markets such as savory snacking or
sodas and alcoholic beverages. Usage and consumption moments are not the same in all regions
of the world.
While if a Japanese offer you a gift, the courtesy is to offer him an equivalent gift in return.
McDonalds is a brilliant example of adaptation to the specificities of each culture and each
market. Well aware of the importance to have an offer with specific products to meet the needs
and tastes of consumers from different cultures, the fast-food giant has for example: a
McBaguette in France (with french baguette and Dijon mustard), a Chicken Maharaja Mac and a
Masala Grill Chicken in India (with Indian spices) as well as a Mega Teriyaki Burger (with
teriyaki sauce) or Gurakoro (with macaroni gratin and croquettes) in Japan.
While all the ingredients used by McDonalds in arabic and muslim countries are certified halal.
The fast food chain not offering, of course, any product with bacon or pork.

Sub-cultures:
A society is composed of several sub-cultures in which people can identify. Subcultures are
groups of people who share the same values based on a common experience or a similar lifestyle
in general.
Subcultures are the nationalities, religions, ethnic groups, age groups, gender of the individual,
etc...
The subcultures are often considered by the brands for the segmentation of a market in order to
adapt a product or a communication strategy to the values or the specific needs of this segment.
For example in recent years, the segment of ethnic cosmetics has greatly expanded. These are
products more suited to non-Caucasian populations and to types of skin pigmentation for
African, Arab or Indian populations for example.
Its a real brand positioning with a well-defined target in a sector that only offered makeup
products to a Caucasian target until now (with the exception of niche brands) and was then
receiving critics from consumers of different origin.

Brands often communicate in different ways; sometimes even create specific products
(sometimes without significant intrinsic difference) for the same type of product in order to
specifically target an age group, a gender or a specific sub-culture.
Consumers are usually more receptive to products and marketing strategies that specifically
target them.

Social classes:
Social classes are defined as groups more or less homogenous and ranked against each other
according to a form of social hierarchy. Even if its very large groups, we usually find similar
values, lifestyles, interests and behaviors in individuals belonging to the same social class.
We often assume three general categories among social classes: lower class, middle class and
upper class.
People from different social classes tend to have different desires and consumption patterns.
Disparities resulting from the difference in their purchasing power, but not only. According to
some researchers, behavior and buying habits would also be a way of identification and
belonging to its social class.
Beyond a common foundation to the whole population and taking into account that many
counterexample naturally exist, they usually do not always buy the same products, do not choose
the same kind of vacation, do not always watch the same TV shows, do not always read the same
magazines, do not have the same hobbies and do not always go in the same types of retailers and
stores.
For example, consumers from the middle class and upper class generally consume more balanced
and healthy food products than those from the lower class.
They dont go in the same stores either. If some retailers are, of course, patronized by everyone,
some are more specifically targeted to upper classes such as The Fresh Market, Whole Foods
Market, Barneys New York or Nordstrom. While others, such as discount supermarkets, attract
more consumers from the lower class.

Some studies have also suggested that the social perception of a brand or a retailer is playing a
role in the behavior and purchasing decisions of consumers.
In addition, the consumer buying behavior may also change according to social class. A
consumer from the lower class will be more focused on price. While a shopper from the upper
class will be more attracted to elements such as quality, innovation, features, or even the social
benefit that he can obtain from the product.

Cultural trends:
Cultural trends or Bandwagon effect are defined as trends widely followed by people and
which are amplified by their mere popularity and by conformity or compliance with social
pressure. The more people follow a trend, the more others will want to follow it.
They affect behavior and shopping habits of consumers and may be related to the release of new
products or become a source of innovation for brands.
By social pressure, desire to conformity or belonging to a group, desire to follow fashion
trends or simply due to the high visibility provided by media, consumers will be influenced,
consciously or unconsciously, by these trends.
For example, Facebook has become a cultural trend. The social network has widely grew to the
point of becoming a must have, especially among young people.
It is the same with the growth of the tablet market. Tablets such as iPad or Galaxy Tab have
become a global cultural trend leading many consumers to buy one. Even if they had never
specially felt the need before.
For a brand, create a new cultural trend from scratch is not easy. Apple did it with the tablets
with its iPad. But this is an exception. However, brands must remain attentive to the new trends
and bandwagon effects. Whether to accompany it (create a page on Facebook) or to take part
in the newly created market (create its own tablet).

II. Social factors

Social factors are among the factors influencing consumer behavior significantly. They fall into
three categories: reference groups, family and social roles and status.
Reference groups and membership groups :
The membership groups of an individual are social groups to which he belongs and which will
influence him. The membership groups are usually related to its social origin, age, place of
residence, work, hobbies, leisure, etc.
The influence level may vary depending on individuals and groups but is generally observed
common consumption trends among the members of a same group.
The understanding of the specific features (mindset, values, lifestyle, etc..) of each group allows
brands to better target their advertising message.
More generally, reference groups are defined as those that provide to the individual some points
of comparison more or less direct about his behavior, lifestyle, desires or consumer habits. They
influence the image that the individual has of himself as well as his behavior whether it is a
membership group or a non-membership group.
Because the individual can also be influenced by a group to which he doesnt belong yet but
wishes to be part of? This is called an aspirational group. This group will have a direct influence
on the consumer who, wishing to belong to this group and look like its members, will try to buy
the same products.
For example, even if he doesnt need it yet, a surfing beginner may want to buy advanced
brands or products used by experienced surfers (aspirational group) in order to get closer to this
group. While a teen may want the shoe model or Smartphone used by the group of popular
guys from his high school (aspirational group) in order to be accepted by this group.
Some brands have understood this very well and communicate, implicitly or not, on the social
benefit provided by their products.
Within a reference group that influences the consumer buying behavior, several roles have been
identified:

The initiator: the person who suggests buying a product or service

The influencer: the person whose point of view or advice will influence the buying
decision. It may be a person outside the group (singer, athlete, actor, etc..) but on which
group members rely on.

The decision-maker: the person who will choose which product to buy. In general, its
the consumer but in some cases it may be another person. For example, the leader of a
soccer supporters group (membership group) that will define, for the whole group, which
supporters scarf buy and bear during the next game.

The buyer: the person who will buy the product. Generally, this will be the final
consumer.

Many brands look to target opinion leaders (initiator or influencer) to spread the use and
purchase of their product in a social group either through an internal person of the group when it
comes to a small social group or through a sponsorship or a partnership with a reference leader
(celebrity, actor, musician, athlete, etc) for larger groups.

Family:
The family is maybe the most influencing factor for an individual. It forms an environment of
socialization in which an individual will evolve, shape his personality, acquire values. But also
develop attitudes and opinions on various subjects such as politics, society, social relations or
himself and his desires.
But also on his consumer habits, his perception of brands and the products he buys.
We all kept, for many of us and for some products and brands, the same buying habits and
consumption patterns that the ones we had known in our family.

Perceptions and family habits generally have a strong influence on the consumer buying
behavior. People will tend to keep the same as those acquired with their families.
For example, if you have never drunk Coke during your childhood and your parents have
described it as a product full of sugar and not good for health. There is far less chance that you
are going to buy it when you will grow up that someone who drinks Coke since childhood.
For brands especially for Fast-Moving Consumer Goods (FMCG) or Consumer Packaged
Goods (CPG) successfully integrate the family is both a real challenge and an opportunity to
develop a strong consumer loyalty among all the family members.
Thats why its important for brands to be seen as a family brand in order to become a consumer
habit for parents and children when they will become adults.

Social roles and status:


The position of an individual within his family, his work, his country club, his group of friends,
etc. All this can be defined in terms of role and social status.
A social role is a set of attitudes and activities that an individual is supposed to have and do
according to his profession and his position at work, his position in the family, his gender, etc.
And expectations of the people around him.
Social status meanwhile reflects the rank and the importance of this role in society or in social
groups. Some are more valued than others.
The social role and status profoundly influences the consumer behavior and his purchasing
decisions especially for all the visible products from other people.
For example, a consumer may buy a Ferrari or a Porsche for the quality of the car but also for the
external signs of social success that this kind of cars represents. Moreover, it is likely that a CEO
driving a small car like a Ford Fiesta or a Volkswagen Golf would be taken less seriously by its
customers and business partners than if he is driving a German luxury car.
And this kind of behaviors and influences can be found at every level and for every role and
social status.

Again, many brands have understood it by creating an image associated with their products
reflecting an important social role or status.

III. Personal factors:


Decisions and buying behavior are obviously also influenced by the characteristics of each
consumer.
Age and way of life:
A consumer does not buy the same products or services at 20 or 70 years. His lifestyle, values,
environment, activities, hobbies and consumer habits evolve throughout his life.
For example, during his life, a consumer could change his diet from unhealthy products (fast
food, ready meals, etc..) to a healthier diet, during mid-life with family before needing to follow
a little later a low cholesterol diet to avoid health problems.
The factors influencing the buying decision process may also change. For example, the social
value of a brand generally play a more important role in the decision for a consumer at 25 than
at 65 years.
The family life cycle of the individual will also have an influence on his values, lifestyles and
buying behavior depending whether hes single, in a relationship, in a relationship with kids, etc..
As well as the region of the country and the kind of city where he lives (large city, small town,
countryside, etc..).
For a brand or a retailer, it may be interesting to identify, understand, measure and analyze what
are the criteria and personal factors that influence the shopping behavior of their customers in
order to adapt.
For example, it is more than possible that consumers living in New York do not have the same
behavior and purchasing habits than the ones in Nebraska. For a retailer, have a deep
understanding and adapt to these differences will be a real asset to increase sales.
Purchasing power and revenue:

The purchasing power of an individual will have, of course, a decisive influence on his behavior
and purchasing decisions based on his income and his capital.
This obviously affects what he can afford, his perspective on money and the level of importance
of price in his purchasing decisions. But it also plays a role in the kind of retailers where he goes
or the kind of brands he buys.
As for social status, some consumers may also look for the social value of products they buy in
order to show external indications of their incomes and their level of purchasing power..
Lifestyle:
The lifestyle of an individual includes all of its activities, interests, values and opinions.
The lifestyle of a consumer will influence on his behavior and purchasing decisions. For
example, a consumer with a healthy and balanced lifestyle will prefer to eat organic products and
go to specific grocery stores, will do some jogging regularly (and therefore will buy shoes,
clothes and specific products), etc..

Personality and self-concept:


Personality is the set of traits and specific characteristics of each individual. It is the product of
the interaction of psychological and physiological characteristics of the individual and results in
constant behaviors.
It materializes into some traits such as confidence, sociability, autonomy, charisma, ambition,
openness to others, shyness, curiosity, adaptability, etc..
While the self-concept is the image that the individual has or would like to have of him and
he conveys to his entourage. These two concepts greatly influence the individual in his choices
and his way of being in everyday life. And therefore also his shopping behavior and purchasing
habits as consumer.

In order to attract more customers, many brands are trying to develop an image and a personality
that conveys the traits and values - real or desired of consumers they are targeting.
For example, since its launch, Apple cultivates an image of innovation, creativity, boldness and
singularity which is able to attract consumers who identify to these values and who feel valued
in their self-concept by buying a product from Apple.
Because consumers do not just buy products based on their needs or for their intrinsic features
but they are also looking for products that are consistent and reinforce the image they have of
themselves or they would like to have.
The more a product or brand can convey a positive and favorable self-image to the consumer, the
more it will be appreciated and regularly purchased.
IV. Psychological factors
Among the factors factors influencing consumer behavior, psychological factors can be divided
into 4 categories: motivation, perception, learning as well as beliefs and attitudes.

Motivation:
Motivation is what will drive consumers to develop a purchasing behavior. It is the expression of
a need is which became pressing enough to lead the consumer to want to satisfy it. It is usually
working at a subconscious level and is often difficult to measure.
Motivation is directly related to the need and is expressed in the same type of classification as
defined in the stages of the consumer buying decision process.
To increase sales and encourage consumers to purchase, brands should try to create, make
conscious or reinforce a need in the consumers mind so that he develops a purchase motivation.
He will be much more interested in considering and buy their products.

They must also, according to research, the type of product they sell and the consumers they
target, pick out the motivation and the need to which their product respond in order to make them
appear as the solution to the consumers need.
Perception:
Perception is the process through which an individual selects, organizes and interprets the
information he receives in order to do something that makes sense. The perception of a situation
at a given time may decide if and how the person will act.
Depending to his experiences, beliefs and personal characteristics, an individual will have a
different perception from another.
Each person faces every day tens of thousands of sensory stimuli (visual, auditory, kinesthetic,
olfactory and gustatory). It would be impossible for the brain to process all consciously. That is
why it focuses only on some of them.

The perception mechanism of an individual is organized around three processes:

Selective Attention: The individual focuses only on a few details or stimulus to which he
is subjected. The type of information or stimuli to which an individual is more sensitive
depends on the person.

For brands and advertisers successfully capture and retain the attention of consumers is
increasingly difficult. For example, many users no longer pay any attention, unconsciously, to
banner ads on the Internet. This kind of process is called Banner Blindness.
The attention level also varies depending on the activity of the individual and the number of
other stimuli in the environment. For example, an individual who is bored during a subway trip

will be much more attentive to a new ad displayed in the tube. It is a new stimuli that breaks the
trip routine for him.
Consumers will also be much more attentive to stimuli related to a need. For example, a
consumer who wishes to buy a new car will pay more attention to car manufacturers ads while
neglecting those for computers.
Lastly, people are more likely to be attentive to stimuli that are new or out of the ordinary. For
example, an innovative advertising or a marketing message (Unique Value Proposition) widely
different from its competitors is more likely to be remembered by consumers.
Selective Distortion: In many situations, two people are not going to interpret information or a
stimulus in the same way. Each individual will have a different perception based on his
experience, state of mind, beliefs and attitudes. Selective distortion leads people to interpret
situations in order to make them consistent with their beliefs and values.
For brands, it means that the message they communicate will never be perceived exactly in the
same way by consumers. And that everyone may have a different perception of it. Thats why its
important to regularly ask consumers in order to know their actual brand perception.
Selective distortion often benefits to strong and popular brands. Studies have shown that the
perception and brand image plays a key role in the way consumers perceived and judged the
product.
Several experiments have shown that even if we give them the same product, consumers find that
the product is or tastes better when theyve been told that its from a brand they like than when
theyve been told its a generic brand. While it is exactly the same product!
Similarly, consumers will tend to appreciate even less a product if it comes from a brand for
which they have a negative perception.
Selective Retention: People do not retain all the information and stimuli they have been exposed
to. Selective retention means what the individual will store and retain from a given situation or a
particular stimulus. As for selective distortion, individuals tend to memorize information that will
fit with their existing beliefs and perceptions.

For example, consumers will remember especially the benefits of a brand or product they like
and will forget the drawbacks or competing products advantages.
Selective retention is also what explains why brands and advertisers use so much repetition in
their advertising campaigns and why they are so broadcasted. So that the selective retention can
help the brand to become a top of mind brand in the consumers mind.
Learning:
Learning is through action. When we act, we learn. It implies a change in the behavior resulting
from the experience. The learning changes the behavior of an individual as he acquires
information and experience.
For example, if you are sick after drinking milk, you had a negative experience, you associate the
milk with this state of discomfort and you learn that you should not drink milk. Therefore, you
dont buy milk anymore.
Rather, if you had a good experience with the product, you will have much more desire to buy it
again next time.
The learning theories can be used in marketing by brands. As the theory of operant conditioning
which states that you can build a good image and high demand for a product by associating it
with a positive reinforcement (or rather a bad image with a negative reinforcement).
Beliefs and attitudes:
A belief is a conviction that an individual has on something. Through the experience he acquires,
his learning and his external influences (family, friends, etc) he will develop beliefs that will
influence his buying behavior while an attitude can be defined as a feeling, an assessment of an
object or idea and the predisposition to act in a certain way toward that object. Attitudes allow
the individual to develop a coherent behavior against a class of similar objects or ideas.
Beliefs as well as attitudes are generally well-anchored in the individuals mind and are difficult
to change. For many people, their beliefs and attitudes are part of their personality and of who
they are.

However, it is important to understand, identify and analyze the positive attitudes and beliefs but
also the negative ones that consumers can have on a brand or product. To change the brands
marketing message or adjust its positioning in order to get consumers to change their brand
perception.
Many factors influencing consumer behavior
As we have just seen, many factors, specificities and characteristics influence the individual in
what he is and the consumer in his decision making process, shopping habits, purchasing
behavior, the brands he buys or the retailers he goes.
A purchase decision is the result of each and every one of these factors. An individual and a
consumer is led by his culture, his subculture, his social class, his membership groups, his
family, his personality, his psychological factors, etc and is influenced by cultural trends as well
as his social and societal environment.
By identifying and understanding the factors that influence their customers, brands have the
opportunity to develop a strategy, a marketing message (Unique Value Proposition) and
advertising campaigns more efficient and more in line with the needs and ways of thinking of
their target consumers and a real asset to better meet the needs of its customers and increase
sales.

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