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Submitted To
Kurukshetra University, Kurukshetra
In the partial fulfillment for the Requirement for the degree in

SESSION (2008-2010)









Life is full of interaction. In our daily life we get ahead by giving hope to each other.

When a person is doing some important work whether as a guide, helper, supporter i.e., a true
friend is needed. And one feels obliged to them.
There is always a sense of gratitude which one feels towards his/her Guru or Mentor who has
helped him/her at one point of time or the other.
I am thankful to Mr. RINKU AGGARWAL who was always there to give my spirits a boost
and whose guidance it would not have been possible for me to complete my project report
I shall be falling in my duties if I do not express my gratitude to my friends and other persons
for their useful advice at various stages.
Last but not the least; I would like to thank the Almighty God for his blessings showered on
me during the project report.


Marketing Management is critical to success of every organization whether small or large.

MBA students of SRM Institute of Management and Technology are required to undergo a
research project as an integral part of the curriculum. The objective is to develop ability to
apply multidisciplinary concepts, tools and techniques to solve organizational problems.
The main objective of the research project is to expose the business management students to
various functional areas of management. Any professional degree remains incomplete
without practical exposure. The students are required to develop deep into the intricacies of
the management related activities.
The training involves innovative pedagogy and through it preparing young prospective
business managers for the new millennium. Learning is like eating food. It is not how much
one eats that matters, what counts are how much you digest.


MANAGEMENT & TECHNOLOGY (KOHRA BHURA) here by state that the Research
fulfillment for the requirement of degree of Master of Business Administration. It is the
original work done by me and the information provided in the study is authentic to the best of
my knowledge. This study report has not been submitted to any other institution or university
for the award of any other degree.

1 Acknowledgmen
2 Preface
3 Declaration

CHAPTER 1- Introduction
1.1. Profile of Study
1.2. Justification of Study
1.3. Objectives of Study
CHAPTER 2- Review of literature
CHAPTER 3- Research Methodology
CHAPTER 4- Results and Suggestions
CHAPTER 5- Findings and Suggestions
5.1. Findings
5.2. Suggestions

In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that
Indian automobile industry will achieve mass motorization status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the
Automobile Industry of India has come a long way. During its early stages the auto industry
was overlooked by the then Government and the policies were also not favorable. The
liberalization policy and various tax reliefs by the Govt. of India in recent years has made
remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently
growing at the pace of around 18 % per annum, has become a hot destination for global auto
players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy,
and India is no exception to it. With the growth of transportation system the Automotive
Industry of India is also growing at rapid speed, occupying an important place on the 'canvas'
of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and
can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles.


· The first automobile in India rolled in 1897 in Bombay.

· India is being recognized as potential emerging auto market.
· Foreign players are adding to their investments in Indian auto industry.
· Within two-wheelers, motorcycles contribute 80% of the segment size.
· Unlike the USA, the Indian passenger vehicle market is dominated by cars
· Tata Motors dominates over 60% of the Indian commercial vehicle market.
· 2/3rd of auto component production is consumed directly by OEMs.
· India is the largest three-wheeler market in the world.
· India is the largest two-wheeler manufacturer in the world.
· India is the second largest tractor manufacturer in the world.
· India is the fifth largest commercial vehicle manufacturer in the world.
· The number one global motorcycle manufacturer is in India.
· India is the fourth largest car market in Asia - recently crossed the 1 million

Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda
contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS
makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the
market share. Among the passenger transport, Bajaj is the lead by making 68% of the three-
wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share
in passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles
Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata
Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer.


Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the
country by the second half of 2008. It would be set up by city-based Prajay Engineers
Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile
financing institutions and insurance services to create a complete range of services required
for both auto companies and customers. It will also have a multi-purpose convention centre
for auto fairs and product launches.

Cars by Price Range

· Maruti 800, Alto, Omni

Under Rs. 3 Lakhs
· Reva
· Ambassador
· Fiat Palio
· Hyundai Santro, Getz,i10
· Chevrolet Opel Corsa
Rs. 3-5 Lakhs · Maruti Zen, Wagon R, Versa, Esteem,,Ritz,A-star
· 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
· Honda CR-V
· Maruti Suzuki Grand Vitara
Rs. 15-30 Lakh · Terracan & Tucson
· Mitsubishi Pajero
· Audi A4
· Opel Vectra
· Honda Accord
· Mercedes C Class

· Toyota Camry
Rs. 30-90 Lakhs · Audi A6, A8 & Audi TT
· BMW X5, 5 Series & 7 Series
· Mercedes E Class, S Class, SLK, SL & CLS-Class
· Porsche Boxster, Cayenne, 911 Carrera & Cayman S
· Toyota Prado

Above Rs. 1 Crore · Volvo

· Bentley Arnage, Bentley Continental GT & Flying Spur
· Rolls Royce Phantom

· Maybach


During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel
wheels, and four-wheel brakes.

The origin of automobile is not certain. In this section of automobile history, we will only
discuss about the phases of automobile in the development and modernization process since
the first car was shipped to India. We will start automotive history from this point of time.
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
The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank
Duryea. It was the first internal-combustion motor car of America, and it was followed by
Henry Ford's first experimental car that same year.

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. It was usually driven by chauffeurs 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 predecessors. The 1940s saw features like automatic transmission, sealed-beam
headlights, and tubeless tires.


According to Commerce Minister Kamal Nath, India is an attractive destination for global
auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India,
despite the absence of specific trade agreements.

· On the cost front of Indian automobile industry, OEMs (Original Equipment

Manufacturer) are eyeing India in a big way, investing to source products and
components at significant discounts to home market.
· On the revenue side, OEMs are active in the booming passenger car market in


· By 2010, India is expected to witness over Rs 30,000 crore of investment.

· Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.
· Hyundai will bring in more than Rs 3,800 crore to India.
· Tata Motors will be investing Rs 2,000 crore in its small car project.
· General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.
· Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of

Why India

The economy of India is emerging. The following table shows the ranking of India in the past
four years.

1 China
2 India
3 Thailand
4 Vietnam
6 Russia
7 Korea

Indian Automobile Industry Growth

The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per

· The Indian automobile industry crossed a landmark with total vehicle

production of 10 million units.
· Car sales was 8,82,094 units against 8,20,179 units in 2008-09.
· The two-wheeler market grew by 13.6 per cent with 70,56,317 units against
62,09,765 units in 2008-09.
· Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units
against 3,18,430 units in 2008-09.


· India, sourcing base for global auto majors.

· Passenger car and motorcycle segment is set to grow by 8-9%.
· The two-wheeler segment will clock 11.5% rise by 2007.
· Commercial vehicle to grow by 5.2 per cent.
· Estimated component market size is US$ 6.7 bn.

Facts & Figures

India, in auto sector, is turning to be a sourcing base for the global auto majors. The
passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple
of years, says the ICRA report. The industry is likely to maintain the growth momentum
picked up in 2002-03.
The ICRA's analysis points on the auto sector that the passenger car market in the country
was inching towards cars with higher displacements. The sports-utility-vehicle (SUV)
that was getting crowded everyday, would witness intense competition as many SUVs
had been competitively priced, the report said.
Honda, Suzuki, General Motors and Hyundai, the global automakers had already
launched their premium SUVs in the market to broaden their portfolio and create product
excitement in the segment estimated at about 10,000 unit annually.

In the two-wheeler segment, according to the report, the motorcycles would clock 11.5
per cent rise during 2005-2008 over its siblings-scooters and mopeds. Scooters sales
would decelerate and mopeds would also see the same. Overseas market would present
huge opportunities for the two-wheeler makers.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. Heavy
commercial vehicles market would rise at 5.5 per cent and sales of light buses and trucks
would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per

Indian Auto Market Growth for the year 2008-09

· The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units
as against 78,97,629 units in 2008-09.
· The automotive industry crossed a landmark with total vehicle production of
10 million units.
· According to the Society of Indian Automobile Manufacturers (SIAM), car
sales was 8,82,094 units against 8,20,179 units in 2008-09.
· The growth of domestic passenger car market was 7.5 per cent
· Car exports stood at 1,70,193 units against 1,60,670 units in 2007-08.
· The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317
units against 62,09,765 units in 2007-08.
· Motorcycles had the upward march, 17.1 per cent in domestic market touching
58,15,417 units against 49,64,753 units in 2007-08.
· Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428
units in 2007-08.
· Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units
against 3,18,430 units in 2006-07.
· Medium and heavy commercial vehicles managed a growth of 4.5 per cent
against 23 per cent growth in the year ended March 31, 2007.
· Light commercial vehicles sales growth was 19.4 per cent at 1, 43,237 units
against 1, 19,924 units in 2006-07.
· Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862
units in 2006-07.

Auto Component Market

The Indian auto parts industry is significantly fragmented with a large number of players
having a turnover of less than US$10 million per year. The industry directly employs about
2,50,000 people and has an annual turnover over US$ 56.3 billion.
· Estimated market size - US$ 6.7 bn
· Estimated market size by 2012 - US$ 17 bn
· Projected CAGR - 15%

Note: Nearly two-thirds of the auto component production is consumed directly by Original
Equipment Manufacturers (OEMs).

Market Advantage

· Fast paced urbanization to rise from 28% to 40% by 2020.

· Upward migration of household income levels.
· Middle class expanding by 30-40 million every year.
· Growing working population.


India is the 11th largest Passenger Cars producing countries in the world and 4th largest in

Heavy Trucks.

· Hero Honda is the largest manufacturer of motorcycles.

· Hyundai Motors India is the second largest player in passenger car market.
· Sundram Fasteners, Sundaram Clayton, Bharat Forge and Rico Auto supplies
components to global majors like Ford, General Motors and Land Rover.
· Tata Motors is the fifth largest medium & heavy commercial vehicle
manufacturer in the world.


· In 1980s Hindustan Motors (HM) was leading car manufacturer in India.

· HM is popular with its Ambassador model.
· In 1970s, Sanjay Gandhi, son of Indira Gandhi envisioned "People's Car."
· Maruti Udyog Ltd. was set up to manufacture budget cars.
· In 1993 foreign auto makers entered the Indian market.

Facts & Figures

The onset of automobile industry in India saw companies like Hindustan Motors, Premier
Automobiles and Standard Motors catering to the manufacture of automobiles for Indian
customers. The era, 1950s - early 1990s was known as 'license raj,' when India was closed to
the world and imports. Hindustan Motors (HM) was the leader in car manufacturing and sales
until the 1980s, when the industry was opened up from protection. HM, joint venture with
Mitsubishi produced Lancer and Pajero, but is best known for its own model, Ambassador.

Around 1970, Sanjay Gandhi, elder son of the then Prime Minister Indira Gandhi, envisioned
the manufacture of an indigenous, cost-effective, low maintenance compact car for the Indian
middle-class. The cabinet passed a unanimous resolution for the development and production
of a "People's Car." It was christened Maruti Limited. However, the company as Maruti
Udyog Ltd. matured only after the death of Sanjay Gandhi. The Maruti800 car went on sale
in 1983. By 1993 it sold up to 1,96,820cars

1991, the liberalisation of the Indian economy opened the market for foreign automobile
makers to venture in India. The license raj ended in 1993 and many foreign players entered
the Indian market by way of Joint ventures, collaborations or wholly owned subsidiary.


Segments Companies
Cars/ SUVs




Manufacturing Hub in India:

Mitsubishi & Yamaha
Maruti Suzuki

Manufacturing Hub for Components:

Toyota Motor
Daimier Chrysler


Count on Us" - Maruti Suzuki

Maruti Udyog Ltd. (MUL) is the first automobile company in the world to be honoured with
an ISO 9000:2000 certificate. The company has a joint venture with Suzuki Motor
Corporation of Japan. It is said that the company takes only 14 hours to make a car. Few of
the popular models of MUL are Alto, Baleno, Swift, Wagon-R and Zen. The largest
automobile manufacturer in South Asia, Maruti Suzuki India Ltd., is a publicly listed
automaker in India and a subsidiary of Suzuki Motor Corporation of Japan, incorporated in
February, 1981. Largely credited for having brought in a revolution in the Indian automobile
industry, the automaker began its production in 1983 with Maruti 800. on September 17,
2007, Maruti Udhyog Limited was renamed Maruti Suzuki India Limited, while locating its
headquarters in Delhi. The manufacturer exports approximately 50,000 cars annually and has
a large domestic market of 730,000 sales annually. The manufacturer is presenting its
customers with applaudable models like A-star, Swift, Estillo, Wagon R, Alto, Grand Vitara,


Year of Establishment


Listings & its codes

Joint Venture

Registered & Corporate Office

11th Floor, Jeevan Prakash
25, Kasturba Gandhi Marg
New Delhi - 110001, India
Tel.: +(91)-(11)-23316831 (10 lines)
Fax: +(91)-(11)-23318754, 23713575
Telex: 031-65029 MUL IN
Palam Gurgaon Road
Gurgaon -122015
Haryana, India



Four Maruti 800

Wheelers Maruti Esteem

Maruti Omni

Maruti Versa

Maruti Zen

Mr. R. C. Bhargava, Chairrman
Mr. Shinzo Nakanishi, Managing Director & Chief Executive Officer
Mr. Keiichi Asai, Director (R&D).
Mr. Hirofumi Nagao, Joint Managing Director
Mr. Tsuneo Ohashi, Director (Production)
Mr. Shuji Oishi, Director (Marketing & Sales)
Mr. Osamu Suzuki, Director
Mr. D. S. Brar, Director
Mr. Amal Ganguli, Director
Ms. Pallavi Shroff, Director
Mr. Manvinder Singh Banga, Director


2009 · The engine of Ritz is a gem and the best petrol

engine of 2009. .... I own a Ritz but would agree COY goes to
Ritz. Nano is not COY it is Car of ...

2008 · Most Preferred Car for Enthusiasts

Category Sponsor

Maruti Suzuki Swift

2007 · Number one in JD Power CSI for the sixth time

in a row - the only car to win it so many times.

· M800, WagonR and Swift topped their segments in the TNS

Total Customer Satisfaction Study Leadership in the JD Power
Initial Quality Study - Alto number one in its segment for the 2nd
time in a row, Esteem number one in its segment for the 3rd year
in a row, Swift number one in the premium compact segment.
· WagonR and Esteem top their segments in the JD Power
APEAL study.
· TNS ranks Maruti 4th in the Corporate Reputation Strength
(CSR) study (#1 in Auto sector)-Feb 05.
· Maruti bagged the "Manufacturer of the year" award
from Autocar-CNBC (2nd time in a row)-Feb 05.
· First Indian car manufacturer to reach 5 million vehicles sales.
· B uti among top five most respected companies in India-Oct
usin 04.
· Maruti ranked among top ten (Rank7) greenest companies in
India by Business Today - Sep '04
d · Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in
rank Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and
s No. 1 in Product Appeal (Esteem and Wagon R).
Mar · No. 1 in Total Customer Satisfaction (Maruti 800, Zen and
· Business World ranked us among the country's five most
respected companies.
· Business World ranked us the country's most
respected automobile company.
· Voted Manufacturer of the year by CNBC.

· Voted one of India's Greenest Companies by Business Today-

AC Nielson ORG-MARG.

(Rs. in Lacs)

Domestic Vehicles Sold


Export Vehicles Sold


Total Vehicles Sold


Net Sales

Total Income

Total Expenditure

Profit before Tax

Net Profit

1984 · Installed capacity reached 40,000 units. Omni, a 796 cc MUV
was in production.
1985 · Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
1986 · Produced 100,000 vehicles (cumulative production).
1987 · Exported first lot of 500 cars to Hungary.
1988 · Installed capacity increased to 100,000 units.

1992 · SMC increases its stake to 50 per cent.

1994 · Produced the 1 millionth vehicle since the

commencement of production.
1995 · Second plant launched, the installed capacity reached
200,000 units.
1996 · Launch of 24-hour emergency on-road vehicle service.

1997 · Produced the 2 millionth vehicle since the

commencement of production.
1998 · Launch of website as part of CRM initiatives.

1999 · Launch of Maruti - Suzuki innovative traffic beat in Delhi

and Chennai as social initiatives.
2000 · IDTR (Institute of Driving Training and Research) launched
jointly with Delhi government to promote safe driving habits.
2001 · Launch of customer information centers in Hyderabad,
Bangalore, and Chennai.
2002 · SMC increases its stake to 54.2 per cent.
· Launch of Maruti Finance with 10 finance companies in

· Start of Maruti True value in Mumbai.

· Production of 4 millionth vehicle.

· Listed on BSE and NSE after a public issue

oversubscribed 10 times.
· Maruti closed the financial year 2003-04 with an annual
sale of 472122 units, the highest ever since the company began
opera ago.

Maruti Udyog Limited (MUL), established in 1981, had a prime objective to meet the
growing demand of a personal mode of transport, which is caused due to lack of efficient
public transport system. The incorporation of the company was through an Act of Parliament.

Suzuki Motor Company of Japan was chosen from seven other prospective partners
worldwide. Suzuki was due not only to its undisputed leadership in small cars but also to
commitments to actively bring to MUL contemporary technology and Japanese management
practices (that had catapulted Japan over USA to the status of the top auto manufacturing
country in the world).

A licence and a Joint Venture agreement was signed between Government of India and
Suzuki Motor Company (now Suzuki Motor Corporation of Japan) in Oct 1982. The
objectives of MUL, then are as cited below:

· Modernization of the Indian Automobile Industry.

· Production of fuel-efficient vehicles to conserve scarce resources.
· Production of large number of motor vehicles which was necessary for
economic growth.

In 2001, MUL became one of the first automobile companies, globally, to be honoured with
an ISO 9000:2000 certificate. The production/ R&D is spread across 297 acres with 3 fully-
integrated production facilities. The MUL plant has already rolled out 4.3 million vehicles.
The fact says that, on an average two vehicles roll out of the factory in every single minute.
The company takes approximately 14 hours to make a car. Not only this, with range of 11
models in 50 variants, Maruti Suzuki fits every car-buyer's budget and any dream. India's
largest automaker, Maruti Suzuki has filed an 11% rise in the March 2010 sales on a YoY
basis. With the total sales standing at 95,123 vehicles in March 2


“Leading the Future"

Tata Motors is India's largest automobile company.It is the larg ecommercial vehicle
manufacturer in India and 2nd largest passenger car manufacturer. It is the 5th largest
medium and heavy commercial vehicle manufacturer in the world. The popular brands of the
company are Tata Indica, Tata Indigo, Tata Sumo and Tata Safari.

Year of Establishment
Business Group
Listings & its codes

Corporate Office











Financial Year

2008-09 2007-08

(i) Gross Revenue 28599.27 33093.93

(ii) Net Revenue (excluding excise duty) 25660.79 28739.41

(iii) Total Expenditure 23908.35 25807.82

(iv) Operating Profit 1752.44 2931.59

(v) Other Income 925.97 483.18

(vi) Profit before Interest, Depreciation,

Exceptional items & Tax 2678.41 3414.77

(vii) Interest and Discounting Charges:

(a) Gross Interest and Discounting Charges 1073.10 541.56

(b) Adjustment/Transfer to Capital Account (399.42) (259.19)

(c) Net Interest and Discounting Charges 673.68 282.37

(viii) Product Development Expenses 51.17 64.35

(ix) Depreciation 874.54 652.31

(x) Exceptional item - Notional Exchange (loss)/gain (net) on Revaluation of Foreign
Currency Borrowings, Deposits and
Loan Given (65.26) 160.73

(xi) Profit Before Tax 1013.76 2576.47

(xii) Tax Expenses 12.50 547.55

(xiii) Profit After Tax 1001.26 2028.92

(xiv) Balance Brought Forward from

Previous Year 1383.07 1013.83

(xv) Credit taken for Dividend

Distribution Tax for previous year 15.29 -

(xvi) Amount Available for

Appropriations 2399.62 3042.75


(a) Debenture Redemption Reserve 267.80 -

(b) General Reserve 100.13 1000.00

(c) Dividend (including tax) 345.70 659.68

(d) Balance carried to Balance Sheet 1685.99 1383.07 (Rs. in Crores)

1. 1 Apr 2010 ... The company's total sales rose 29% to 10.18 lakh
vehicles in the year ended March 2010 over the year ended March 2009. ...


1977 1983
· 1977 The first commercial vehicle manufactured in Pune.
· 1983 Commencement of manufacturing Heavy
Commercial Vehicle.
· 1985 First hydraulic excavator produced with
Hitachi collaboration.
· 1986 The first light Commercial Vehicle produced, Tata
407, indigenously designed, followed by Tata 608.
· 1989 Tatamobile 206 - 3rd LCV model introduced.
· 1991 Tata Sierra launched, TAC 20 crane produced and
1993 one millionth vehicle rolled out.

· 1992 Tata Estate launched.

· 1993 JV with Cummins Engine Co. Inc. for
manufacturing of high horsepower and emission friendly
1995 diesel engines.

· 1994 Tata Sumo and LPT 709 launched. JV with M/s

Daimler-Benz/ Mercdes-Benz and Tata Holset Ltd., UK.
· 1995 Launched Mercedes Benz car E220.
· 100,000th Tata Sumo rolled out.

· Tata Safari and Indica launched. 2 millionth vehicle rolled out.

· First consignment of 160 Indicas shipped to Malta.
Launch of Indica with Euro II engine, CNG buses and 1109
2002 vehicle - Intermediate commercial vehicle.

· 100,000th Indica wheeled out. Launch of CNG Indica.

Exits JV with Daimler Chrysler.
· 2,00,000th Indica and 5,00,000th passenger vehicle rolled
out. Tata Engineering signed product agreement with MG
Rover of the UK.
· Tata Engineering becomes Tata Motors Limited. 3
millionth vehicle produced. First CityRover rolled out.

· Tata Motors and Daewoo Commercial Vehicle Co. Ltd.

signed investment agreement and Tata Daewoo Commercial
Vehicle Co. Ltd. (TDCV) launched NOVAS, the heavy duty
truck in Korea. Listed on NYSE.
2005 2007-08
· 5,00,000th passenger vehicle rolls out. Launch of Starbus
and Globus (buses and coaches), Tata Ace (Indi's first mini
truck) and Tata Novus, in India as well as in Korea by TDCV.
New factory at Jamshedpur inaugurated for Novus.
------------------------------------------------- TATA NANO small
car only in one lakh

· Tata Xenon XT, 2009 Tata Winger,


Tata Motors Limited is the largest automobile company in India with revenues touching to
Rs. 20,483 crores (USD 4.7 billion) in the financial year 2004-05. It leads the market in
commercial vehicles in each segment and is the second largest in the passenger vehicles
segment. Globally, Tata Motors stands fifth in the medium and heavy commercial vehicle
manufacturer category.

Established just in 1945, the company's presence cuts across the length and breadth of the
country. More than 3 million its-manufactured-vehicles ply on the Indian roads since the first
one rolled out in 1954.

This company is the first from the country's engineering sector to be listed in the New York
Stock Exchange (Sep. 2004) and has also emerged as a global automotive company.

Through its subsidiaries, Tata Motors has engaged in providing engineering and automotive
solutions. With the pace of new product development, the company has launched Tata Ace, in
the year 2005, India's first indigenously developed mini-truck.

Tata Motor's 22,000 employees are guided with the vision, "best in the manner in which we
operate, best in the products we deliver, and best in our value system and ethics."

Tata Motors Ltd on Thursday wheeled out the world's cheapest car, priced at 100,000 rupees
(2,500 dollars).
Here are key facts about the four-door, mini hatchback named the Nano, which is due to hit
the Indian market later this year.
Looks: The snub-nosed car keeps in the tradition of the Fiat 500, Nissan Micra and the

Dimensions: 3.1 metres (10.23 feet) long, 1.5 metres wide and 1.6 metres high. Can seat four
to five people.

Engine: A two cylinder 623 33 hour (65 miles per hour).

Fuel Efficiency: 20 per litre, or 50 per gallon is claimed.
kilometres miles
Pollution: Exceeds Indian regulatory requirements and can meet strict Euro IV emission
standards. In terms of overall pollutants, Tata says the car is better than two-wheelers
manufactured in India currently. horsepower rear mounted, all aluminum, multi-point fuel
injection petrol engine can power the car to top speeds of 105 kilometers per

Company Details: Tata Motors is India's largest vehicle company with revenues of 7.2
billion dollars in 2006-2007. It is the leader in commercial vehicles, such as trucks and buses,
and the second largest in passenger vehicles. There are over four million Tata vehicles on
Indian roads.

Safety: Car exceeds current regulatory requirements with a strong passenger compartment,
crumple zones, intrusion resistant doors, seat belts, strong seats and anchorage.

Initial Annual Production Target: 250,000 units to rise later to 350,000. PRICE: Basic
model price 100,000 rupees (2,500 dollars) plus tax and transport costs, which will bring on
the road price to at least 120,000 rupees. The price of two deluxe models that will include air-
conditioning and other features to be announced later.

Nearest Domestic Car Rival: Maruti 800, part of Japanese-owned Suzuki Maruti stable
whose base model sells for about 4,800 dollars – nearly double the price of the Nano.

Nearest International Rival: China's Chery QQ which retails for 3,600 dollars.

Sales: Tata will focus on selling the car in India for the next two to three years, before eyeing
Latin American and Southeast Asian markets.

Market: India's car market is a huge draw because car penetration is just seven per 1,000
people, compared to 550 per 1,000 in such countries as Germany or 476 in France, according
to the Society of Indian Automobiles.

Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of “Società
Anonima Fabbrica Italiana Automobili Torino” was signed. Among the members of the Board
of Directors, Giovanni Agnelli stood out in the group of investors and won recognition for his
determination and strategic vision. In 1902 he became the Managing Director of the
companyIn 1902 he became the Managing Director of the company. The name is an acronym
for Fabbrica Italiana Automobili Torino (Italian Car Factory of Turin). The history of Fiat
began many years ago, at the dawn of Italian industrialisation, in which the company has
always played a leading role. From that moment on, the Fiat brand spread throughout the
world and developed extensively.

Today, following a change in corporate culture and mentality, the name Fiat is still fraught
with meaning, and not only on account of the cars we produce cars with attractive styling and
exciting engines, cars that are accessible and improve the quality of everyday life - but also
on account of our heritage and tradition: let's take a stroll back in time through the brand's

Year of Establishment

Business Group
Listings & its codes
Contact Details LBS Marg, Kurla (W)
International Corporate Via Nizza, 250
Headquarters 10126 Turin
· http://


· Luca Cordero di Montezemolo(chairman)

· John Elkann(Vice Chairman)
· Sergio Marchionne (Chief Executive Officer)
· Andrea Agnelli(director)


· Fiat Grande Punto

· Palio 1.6 Sport
· Palio 1.2 NV Petro
· Palio Diesel
· Petra Petrol
· Petra Diesel
· Fiat linea
· Fiat 500

From 1899 - 1911

Fiat was founded
On 11 July 1899 at Palazzo Bricherasio, the company charter of "Società Anonima Fabbrica
Italiana Automobili Torino" was signed. Among the members of the Board of Directors,
Giovanni Agnelli stood out in the group of investors and won recognition for his
determination and strategic vision. In 1902 he became the Managing Director of the

The first factory was opened

The first factory was opened in 1900 in Corso Dante. 150 workers were employed there and
produced 24 cars, among which the 3/12 HP, not yet fitted with reverse gear. The Fiat logo,
oval on a blue background and designed by Biscaretti, was adopted in 1904

First wins in the races

The first Car Tour of Italy saw 9 Fiat cars arrive at the finish line. The first real competition
car, a 24 HP driven by Vincenzo Lancia, won the Sassi-Superga uphill race in 1902. Giovanni
Agnelli himself ran in the Second Tour of Italy and set a record in an 8 HP.

The company renovates its production

In a few years Fiat completely renovated its production: the cars were fitted with electrical
accumulators for the first time. The cardan transmission, a FIAT patent, began to be used. Fiat
cars continued to shine in the competitions and set several records.

From 1912 – 1925

Fiat expands to new sectors
In the meantime Fiat expanded its activities to the steel industry, the railway, electricity and
public transportation lines. Fiat Lubrificanti was established and the first Italian subsidiary
was opened in Russia. When the War broke out, company production was almost entirely
aimed at supplying the army

Development of the Company

The policy adopted by the company was to develop industrial mass production. Mass
production was launched as the only way to curb the prohibitive prices of cars. During a
phase of increasing consumption, Sava, a holding company was set up to promote instalment
plans for purchasing cars. IFI, Istituto Finanziario Industriale, was also established at that
Services for employees
These years were also significant for the internal growth of Fiat. Numerous organizations for
employees were established: from health care to specialized schools to sports clubs
From 1926 - 1938

Falling back on the domestic market

During the years of Mussolini's autarchic policy, Fiat too had to rescale its plans for
international presence and concentrate on the domestic market. In the Thirties trucks and
commercial vehicles underwent considerable technological development and at the same time
the aviation and railway sectors grew
The new cars
In 1934 and 1936 two cars came out and were destined to an enormous public: the "Balilla",
also called "Tariffa minima" due to its low consumption of fuel, and the "Topolino", the
smallest utilitarian car in the world, which was produced until 1955.

From 1939 - 1951

Second World War
During the war years there was a drastic reduction in the production of cars, while the
construction of commercial vehicles increased considerably.
Commitment to research
With two new cars such as the 500 and the 1400, Fiat confirmed its commitment to research
and innovation. For the first time the heating and ventilation systems were installed in mass
production. Research continued on marine and aircraft engines: in 1951 the first Italian jet
aircraft came into being, the G80.

From 1952 – 1964

In 1953 the first Fiat diesel engined vehicle was presented, the
1400 diesel.

The new models

In 1955 the Fiat 600 was born, a big utilitarian car with a rear mounted engine. In 1957 the
New 500 was presented and in 1960 it began to be produced in the 'Giardinetta' version, a
precursor of the Station Wagon style. Moreover, these were the years of Fiat 1800, then 1300
and 1500.
From 1978 – 1990
Independent companies
Fiat's numerous operations were set up as independent companies. Alongside Fiat Auto the
following companies were founded: Fiat Ferroviaria, Fiat Avio, Fiat Trattori, Fiat
Engineering, Comau, Teksid, Magneti Marelli.

The Fiat Panda and the Fiat Uno

In 1980 a new utilitarian was styled by Giugiaro for Fiat and was called Panda. Two years
later the car that would become the emblem of Fiat Auto's renewal was born: the Fiat Uno. It
featured radical innovations in its electronics, choice of materials and the use of a clean
engine: the 1000 Fire.

From 1991 – 2003

The new cars of the 1990s
After the debut of the Fiat Tempra in 1990, the 500 came out in 1991. Two years later, in
1993, it was the moment of Fiat Punto (named "Car of the Year" in 1995) and Fiat Coupé,
with bodywork designed by Pininfarina and Centro Stile Fiat
From 2004 - 2007
The restyling of the logo on Fiat Idea The years 2004-2006 were an extremely busy time
for the Turin company, which, following a profound change in corporate culture and
mentality, focused on a continuous, rapid overhaul of its products, on technological research,
on the quality of its designs and on a new, constructive relationship with the customer. During
these years, this new philosophy gave rise to a series of new models, and some restyling of
older models: from the restyling of the Fiat Idea Model Year, Seicento MY and Stilo MY to
the new Multipla and the launch of the Panda 4x4, in 2004; 2005 began with the launch of the
new Croma, designed by Giugiaro, the new 600 (celebrating its 50th anniversary), and the
Grande Punto - beautiful, solid and exciting. 2006 saw the launch of the New Doblò and
Sedici, the 4x4xTUTTI for city and off-road driving, and the official car of the 2006 Olympic
Winter Games, while the Panda MY 2007 range was extended and overhauled.
From 2008-2009
Super-competitive pricing with space and features promises to make it encroach upon the
Swift territory We put both petrol and diesel variants through our rigorous test program.
Punto would compete in India with existing models like Skoda Fabia, Tata Indigo...


Company Flashback

Fiat is a big industrial Group having more than one hundred years' experience in the motor
vehicle sector, designing, manufacturing and marketing cars, trucks, tractors, agricultural
machinery, construction equipment, motor vehicle engines and components, and production
systems. Currently the Group is present in 190 countries and it performs manufacturing and
service activities through Operating Sectors that can be divided into business areas.

Fiat Auto produces and sells automobiles under the Fiat, Alfa Romeo and Lancia brands and
light commercial vehicles (LCV) under the Fiat brand. The Group also controls Maserati and
Ferrari, the producer of luxury sports cars that excel for their exclusive characteristics,
technology and performance.

In India, Fiat is wholly managed by Fiat Auto Spa of Italy. Here the company owns the
brands Fiat , Alfa Romeo & Lancia. Fiat India is investing heavily in the countr
Hyundai Motor India Limited

"Drive your way"

Hyundai Motor is South Korea's largest car maker and sixth largest car maker in the world.
Hyundai Motor India Limited (HMIL) is the second largest and the fastest growing car
manufacturer in India. Santro, Getz, Accent, Elantra, Sonata Embera and Tuscon are the most
successful brands of HMIL. The company is an ISO 14001 for its sustainable environment
management practices.

Quick Facts
Year of Establishment
Listings & its codes
Retail Finance Partners

Contact Details

Complaints & Queries


Segment and Brands

· Accent
· Elantra
· Getz
· Hyundai i10,i20
· Santro Xing
· Sonata Embera
· Tucson


Hyundai i10 wins all the prestigious awards of the year 2008-2009.

· Indian Car Of The Year 2008

· Car of the Year

· Compact Car of the Year

· Car of the Year 2008

· Small Car of the Year 2008

· Car of the Year 2008

· Car of the Year

· Aaj Tak Viewers Choice Award

· CNBC-TV18 Autocar Auto Awards

2007: 'Best value-for-money car'

· Hyundai Getz is the CNBC Autocar

Car of the Year 2005 (More)

· Hyundai Elantra – Best Value for

Money Car of the Year 2005 (More)

· Company – Awards – CNBC Autocar

India – Hyundai has been the
manufacturer of the year for two years
in row.

· 'Performance Car of the Year' 2007 -

Hyundai Verna 1.5 CRDi.

· Hyundai Getz is BS Motoring's 'Car

of the Year' 2005

· BS Motoring – BS 1000 – Company

of the year 2005 – Hyundai Motor
India Limited

· Hyundai Santro is BS Motoring's 'Car

of the Year' for 1999

EEPC Award · 'Hyundai Motor India Received

Engineering Export Promotion Council
(EEPC) ‘Top exporter of the year’
Award for 2005-06 on June 1, 2007
Company Flashback

Hyundai Motor Company (HMC) is a division of Hyundai Kia Automotive Group. It is South
Korea's largest car maker. It is headquartered in Yangjae-Dong Seocho-Gu Seoul. HMC is
also the world's sixth largest car maker and operates the world's largest integrated automobile
manufacturing facility in Ulsan, South Korea.

In India the company is known by Hyundai Motor India Limited (HMIL). It is a wholly
owned subsidiary of Hyundai Motor Company and is the second largest and the fastest
growing car manufacturer in India. Currently the company markets 32 variants of passenger
cars in six segments. Santro in the B segment, Getz in the B+, the Accent in the C segment,
Elantra in the D segment, Sonata Embera in the E segment and the Tucson in the SUV

HMIL recorded combined sales of 252,851 during calendar year 2005 with a growth of
17.26% over previous year. It is the country's fastest growing car company having rolled-out
10,00,000 cars in just 90 months since its inception and is the largest exporter of passenger
cars with exports of over Rs. 1,800 crores. The company has recorded a growth of 27.2% in
exports over the year 2004.

The company has been awarded the benchmark ISO 14001 certification for its sustainable
environment management
1.2 Justification of Study

Project aims to understand and enunciate the working process of different automobile and
evaluating its outcome in the four- wheeler automobile sector. Over the past few years, there
has been tremendous progress made around the world in opening up travel and tourism
markets to the benefits of increased competition.

One of the main aspects of the project is to analyze the different products and services offered
and initiatives adapted by the four- wheeler automobile sector their product. Selling
“intangible assets” is one of the toughest jobs in the world. The project is more of a team
effort and will incur team returns.

The main objective is to find out the current trend going on in the industry i.e. (about the
product, price, place and promotion). This research aims at studying the. THE STUDY OF

Other objectives are as follows:

To know the image of product in the mind of consumer.

To compare the level of satisfaction before purchasing and after purchasing the car.
To know the most popular media for advertisement .
To check the loyalty of the consumer towards the brands.
To know the most motivating factor for purchasing the four –wheeler.
To know the preferable price from the customer.
To study their attitude toward various Cars brand.
To find out the perceived positioning of different Car Brands.
To know out the choice criteria which the customer while purchasing a Car.

Relevant literatures pertaining to the present study on four wheeler automobile industry are
included in this chapter. The literatures are helpful for proper understanding the four
wheeler automobile industry and its various related aspects. Review of literature is also
helpful in effectively fulfilling the objectives for which the research project has been

G.S. Dangayach and S.G. Deshmukh, in their study on ‘Advanced manufacturing

technologies: evidences from Indian automobile companies’ in International Journal
of Manufacturing Technology and Management, reports the findings of an exploratory
survey on ‘Advanced manufacturing technologies (AMT)’ administered in Indian
automobile companies. The objective of the survey is to assess the status of advanced
manufacturing technologies, identify advanced manufacturing technologies relevant
to Indian automobile sector companies, identify competitive priorities, and assess the
degree of investment in advanced manufacturing technologies. Responses from 68
companies are analysed and presented.

RNCOS industry in their study of Indian Automobile Sector provides a forecast and
analysis based on various macro- and microeconomic factors, sector and industry
specific databases, and an in-house statistical and analytical model. This model takes
into account the past and current trends in an economy, and more specifically in an
industry, to bring out an objective market analysis. In this research main topics
covered are: Study of the Indian automobile industry structure, Analysis of
performance of industry sub-segments and their future outlook, Understanding the
Indian auto component market and its growth aspects, Identification of future
prospects for the Indian automobile industry.

S. Saraswathi undertook a study on ‘Customer Satisfaction on Post-Sales Service

with Reference to Four-Wheeler Automobile Industry’ which reveals that the key to
success of automobile industry lies not only in having good products but also in being
able to provide the customer with the level of service they desire. Because of
increasing competitiveness in the Indian automobile industry, almost all automobile
manufacturers have invested valuable resources on customer satisfaction as a tool to
understand the needs and expectations of their customers. Increased presence of four-
wheeler vehicles throughout the country has created a growing need for providing
service infrastructures closer to the customers' homes or offices.

· Dr V Sumantran (Executive Director-Passenger Car Business Unit

and Engineering Research Centre at Tata Motors Limited during
November 2001 to August 2005, conducted a study on ‘The Indian Auto
Industry & The Role of Dealers’ which reveals that the global auto industry
has been the subject of much analysis in recent years. While global capacity
creation proceeds at a good clip on one hand, continued capacity creation in
the face of sluggish sales have led to depressed levels of capacity utilization.
Today, the Indian auto industry is one of the largest industrial sectors with a
turnover that contributes to roughly 5 per cent of India's GDP. More
importantly, it contributes to employment of over 2 million people directly and
indirectly to another 10 million. The industry is important for national policy
in that it contributes 19 per cent of indirect taxes.
Akie Takeuchi, Maureen Cropper and Antonio Bento in the Journal of
Regional Sciences published a paper on ‘The impact of policies to control
motor vehicle emissions in Mumbai, India’ which examines the impacts of
measures to reduce emissions from buses, cars, and four-wheelers in Mumbai,
India. They have considered three possible policies: conversion of diesel buses
to CNG, an increase in the price of gasoline and a tax on vehicle ownership.

In The Wall Street Journal, India Infoline Sector Reports published a report
on Automobile- Indian four Wheelers Industry which reveals that India is the
second largest manufacturer and producer of four-wheelers in the world. It
stands next only to Japan and China in terms of the number of four-wheelers
produced and domestic sales respectively. This distinction was achieved due to
variety of reasons like restrictive policy followed by the Government of India
towards the passenger car industry, rising demand for personal transport,
inefficiency in the public transportation system etc
Dr. Amit Kumar Dwivedi and Mr. Punit Kumar Dwivedi, in their article on
Automobile Sector: Industry Vs Indian Middle Class in Indian MBA
concluded that that there are great opportunities and possibilities in the
automobile sector. But hike in the fuel price is influencing the market of this

There is a need of a very liberal policy for the fuel prices and requires a great good deal with
fuel supplying countries. Though, the performance of the industry is better instead of high
and unfavourable fuel policy.

The new launching of Tata's Nano 'One Lakh Car' which is also known as People's Car is also
a very good strategy to capture the middle class customers. Introduction of Nano and Bajaj
Lite will definitely affect the growth and sales volumes of cars which will also affect the
industry by reaching, catching the Indian middle class and fulfilment of their own car need.

Sunila George, Raghbendra Jha, Hari K. Nagarajan in their research paper on

‘The Evolution and Structure of the four-wheeler Industry in India’ studied the
evolution of the competitive structure of the two-wheeler industry in India. The
evolution of the industry's competitive structure is traced using Kendall’s Index of
Rank Concordance and the Evans-Karras test of convergence. The industry seems to
be characterized by oligopoly with the onset of economic reforms not making much
difference to industrial structure. Convergence of sales and capacity at the level of the
industry is conditional while it is absolute at the level of the segment.

Dr A. Subbiah and S. Jeyakumar (Ph.D research scholar at PG and Research

Department of Commerce) in their market survey report on Automobiles: the Engines
of Economic Growth concluded that A sound transportation system plays a pivotal
role in a country’s rapid economic and industrial development. The well-developed
Indian automotive industry ably fulfils this catalytic role by producing a wide variety
of vehicles. They also studied Size and structure of the Indian automotive industry,
production trends and exports trends. They also concluded that the manufacturers
must take necessary steps to increase the production of automobiles in India. They
should adopt latest technology and introduce new models to face stiff competition
from foreign manufacturers.


Consumer Preference is a business term which is used to capture the idea of measuring how
satisfied an enterprise’s customers are with the organization Efforts in a market place.

Every organization has customers of some kind. The organization provides products (goods
and services) of some kind to its customers through the mechanism of a marketplace. The
products the organization provides are subject to competition whether by similar products or
by substitution products. The reasons on organization is interested in the satisfaction of its
customers is because customers purchase the organization’s products. The organization is
interested in retaining its existing customers and increasing the number of its customers.

By Fareena sultan:-Examines consumer preferences for forthcoming technological

innovations. Studies consumer response to different levels of technology over time. Looks at
preferences for existing and intermediate technologies when future ones are expected.
Focuses on technological consumer durables that are expected to evolve over time. The
primary contributions of this research are: an understanding of how consumer preferences for
a technology are affected by the time of adoption; an understanding of the value to consumers
of obtaining different levels of a technology, at different points in time; and the utilization of
parsimonious indices to assess consumer response to different levels of technology over time.
An empirical examination is conducted for high definition television (HDTV). Using survey
data, the study explores consumer preferences for HDTV, and for interim television
technologies. Managerial implications to aid product design, and the timing of introduction of
evolving technological innovations, are also discussed.


Companies routinely test the market to find out what customers like and dislike about
their products and competitors' products. This is usually done by an internal marketing
department or outsourced to a market research firm. Phone interviews, paper surveys,
electronic surveys, focus groups and consumer samplings are common methods for
gathering information.

· Market Research Example

Here is a popular example of market research: A customer has finished shopping and
paying for merchandise at a local grocery store. Before handing the receipt to her, the
cashier points to and explains that she has been invited to participate in a short survey
about her visit. If she chooses to participate, she will receive $5 off her next visit and a
chance to win a large monetary grand prize.


After gathering information, the next step for the company is to determine what it means.
Analysis of the information may lead the company to change the formula, packaging,
color, size or some other feature of the product. In the case of the suds in the shampoo,
the manufacturers may find that customers are continuing to prefer and associate the
foamy lather with high quality cleanliness, leading them to keep the same formula or
decide to add even more of the sudsing agent.


In today’s challenging and competitive world of last changing technology, consumer tastes
are also characterized by fast changes. So to survive in the market the firms have to be in
touch with the changing consumer preferences. Marketers have to understand the consumer
behaviour and factors influencing the buying behaviour of the customers in order to be
successful in this dynamic and competitive environment.

Meaning of Consumer Behaviour:

Consumer Behaviour is the behaviour that the consumer display while searching for,
evaluating, purchasing and disposing off products and services that they expect will satisfy
their needs. Consumer behaviour is the study of how consumer makes their decisions to
spend their resources on consumption related items i.e. time, efforts and money.

Study of consumer behaviour proves the marketers an insight regarding the consume
preferences and helps them in effective market segmentation and targeting. The importance
of consumer behaviour lies in the fact that behaviour can be understood and influenced to
ensure a positive purchase decision. So a round understanding of consumer behavior is
necessary for long run success of any marketing program. That’s why the marketing
managers interest lies exactly in understanding consumer behavior to ensure that his
marketing strategy results in purchase of the product.

Deborah J. Macinnis A notable human capacity is the ability to look to the future and
aspire to achieve desired states The marketplace provides rich sources of hope and invites us
to the endless pursuit of happiness. while some researchers recognize its importance,
definitions in the psychology, sociology, philosophy, medical, and religion literatures often
conceptualize hope in different ways. Understanding Hope and its Implications for
Consumer Behavior sheds light on the relevance and importance of hope to consumer
behavior. The authors explore the conceptual meaning of hope and a definition of hope and
the constituent elements that underlie it is articulated.


The study of consumer behaviour is quite complex, because of many variables involved and
their tendency to interact with and influence each other. The main determinants of consumer
behaviour are:

1. External Variables
2. Individual determinants of Consumer Behaviour

1. External Variables : The external environment is made up of various

influences such as:
· Culture
· Sub Culture
· Social Class
· Family
· Reference Groups
· Personal Factors such as age and life cycle, education, occupation, life
style, personality, etc..

2. Individual Determinants of Consumer Behaviour : The individual

determinants of consumer behaviour are:
· Personality and Self Concept
· Motivation and Involvement
· Learning
· Memory
· Attitude


Consumer’s perceptions of products are developed in a complex way and are not easily
determined by marketers. However, a technique known as perceptual mapping may be used
in exploring consumer’s product perceptions. Since product can be perceived on many
dimensions (such as quality, price and strength) the technique is multidimensional in nature.
That is, it allows for the influence for more than one stimulus characteristic on product
perceptions, typically consumer feel out measuring scales to indicate their perceptions of
many characteristics and similarity of competing brands. Computer programs analyze the
resulting data to determine those products characteristics or combination of characteristics
that are most important to consumers in distinguishing between competing brands. Results of
this analysis can be plotted in terms of perceptual “maps” which display how consumes
perceive the brands, and their differences, on a coordinate system.
Research Methodology

When we talk of Research Methodology, we not only talk of Research Methods but also take
into consideration the logic behind the methods which we use in the context of our research
study and explain why we use or why we are using a particular method or technique. The
information that is to be needed for fulfilling the objective of study was collected from
various primary and secondary sources.

Research is defined as ‘a scientific and systematic search for pertinent information on a
specific topic. Research is an art of scientific investigation. It is an academic activity. It is a
systematized effort to gain new knowledge.

According to Advanced Learner’s Dictionary of Current English :

“Research is defined as a careful investigation or inquiry especially through search for new
facts in any branch of knowledge.”

Survey design:

The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of


Target Population - The respondents are those who are having their own Cars.
Sample size – 100 persons were visited for the purpose of the study.
Sampling Technique - In this study, the respondents were chosen through
convenience and judgmental sampling.
Sample Area - Ambala Cantt and city
Data Analysis – Data collection through survey was analyzed with the help of simple

percentage, tabular and graphic method that includes both graphs and pie charts.

1.2 Data collection Technique

The whole secondary data were collected from industry profile, books, magazines and
internet. While primary data where collected though survey. The customer survey was done
though the questionnaire. Question consists of dichotomous multiple questions and 5 point
ranking scale. A copy of questionnaire has been attached with the report. Most favorable
price ranges selected by the customers.

Source of data:
There are two types of data: primary data and secondary data. Primary data are collected
with the help of questionnaire and secondary data was taken from industry profile, books,
magazines and internet. The information brochures of certain companies, informal links with
concerned person in this line, articles in newspapers and magazines and journals have also
been consulted as a secondary source of information.

Research plan

The research study is descriptive in nature. The established objectives were kept in mind
during the study, however the hypothesis was formed as the study was made in the form of
descriptive design attempting to analyze the attitude of respondents. This chapter describes
the methodology of the study. This project is based on information collected from primary
sources. After the detailed study, an attempt has been made to present comprehensive analysis
of the industry. The data had been used to cover various aspects like consumption,
consumer’s preference and customer’s satisfaction regarding two wheelers. In collecting
requisite data and information regarding the topic selected, I went to the residents of Ambala
city & Ambala cantt and collected the data.

3.3 Analytical Tools

A structured questionnaire was administered for the purpose of obtaining information form
the respondents. Care was taken to put the questions related to subject. It contains close-
ended as well open-ended questions as the objective demanded.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of


Despite all possible efforts in conducting the research there was some unavoidable situation,
which limited the scope of this dissertation. The limitations of the dissertation fall under the

1. As the data was collected by way of questionnaire which was to be filled by

respondents, and taking time from respondents was the most difficult & some of the
respondents did not responded well.
2. This project is also confined on the basis of secondary data collected only hence it
reliable data for the study.
3. As the research is based on the data that already available and collected through
various means not includes the survey, hence it imposes limitations, as it is just possible
that the secondary data may be unsuitable or may be inadequate in the context of the topic
under study.
4. One of the major limitations of the study is that, as the data is collected though the
secondary means, hence it creates uncertainties regarding the methods of the data
collection, time of data collected, and any bias of the compiler during the pervious
research and at the time of data collection.
5. Limitation of time & resources were a major factor influencing the research study.
What is your Occupation?
Any other

Interpretation: 60% Respondents are Businessman, 10% respondents are

teachers, 5% respondents are from defence and 25% respondents are from other

Which Car do you Own?

Interpretation: 60% respondents are having Maruti cars, 25% are having
Hyundai cars, 10% are having TaTa, 5 % are having others brand cars and
nobody is having fiat.

Have you Finance your Car?


Interpretation: 60% respondents have not purchased their cars on finance

scheme and 40% of respondents have purchased their cars on finance scheme.

Who prompted you to buy the Car?

Friends & relatives
Past experience
Dealer recommendation
Word of mouth
Any other

Interpretation: 50% respondent says that friends and relatives prompted them
to purchase car, 15% says past experience, 10% says dealer recommendation,
15% says word of mouth, and 10% says Advertisements .

What attribute do you consider

While purchasing a Car?


15 Series1


Resale value
Maintenance cost
Fuel efficiency
Finance scheme

Interpretation: Most of the Respondent 40% says that they consider price
attribute, 25% says performance, 10% says resale value, 5% says maintenance
cost, 15% says that fuel efficiency and 5% says that finance scheme.
Effect of PRICE on Purchase Decision


Interpretation: 65% are strongly agreed, 35% are agreed and others gave no
Effect of FUEL EFFICIENCY on Purchase Decision


Interpretation: 75% persons are agreed, 15% are strongly agreed, and 10%
have no response.
Effect of Resale Value on Purchase Decision


Interpretation: mostly 85% persons are agree, 5% are strongly agree, 5%

are disagree and 5% gave no response.
Effect of MAINTAINANCE COST on Purchase Decision


Interpretation: 55% are agree, 35% give no response, and 10% are strongly
Effect of PERFORMANCE on Purchase Decision


Interpretation: 45% are strongly agreed, 50% are agreed, and 5% gave
no response.
Effect of FINANCE SCHEME on Purchase Decision


Interpretation: 25% are strongly agreed, 40% are agreed, 15% gave no
response and 20% are strongly disagree.
Ranking of cars after considering all attributes


Interpretation: Maruti is at first Rank, Hyundai is at 2nd Rank and TATA is

at third Rank, FIAT is at fourth Rank.

Resale value


Resale value

Resale value


Resale value

In the survey , we included people from three areas – students, servicemen and
businessmen.The findings of the research shows –
Among the five attributes ( which we considered important for customers’
purchasing decision ) customers gave highest consideration to looks and style
followed by the mileage. Other attributes like comfort, service and spares were
considered later.

Normally, all the three segments maintained their car single handed and the
students and the servicemen serviced their car regularly but the businessmen
were a little hesitent in their servcing of the cars.

Electronic media ( TV) is the most commonly used medium for the brand
awareness. Other medias like magazines, newspaper, hoardings came later.

The most important finding is that brand advertising for maruti is much more
than any other brand and is quickly picking up the interest of the cosumers and
hence coming with a larger market share. May be it could overcede Huyandi in a
couple of days to come.

5.2 Suggestions

Car companies should give more focus on making effective Advertisements.

As people prefer price, performance, less price car should be availed in the market
with effective performance, fuel efficiency etc.

Company should provide effective finance scheme by which their customer group can
be increased.

Fiat should increase brand awareness + promotional activities among people , TATA
should work upon reducing maintenance cost , increase other attributes performance
fuel efficient etc.

Hyundai should work upon increasing performance, fuel efficiency by which its resale
value can be increased.

Maruti should try to maintain its market by continuously providing good attributes,
also should introduce less price cars.


· Schiff man Leon G & Kanuk Lesie Lazar, “Consumer Behavior” 4th ed.;
Prentice-Hall of India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
· Kotler Philip, “Marketing Management” ed. 2002; Prentice-Hall of India pvt
ltd, M-97, Connaught Circus, New Delhi-110001, India.
· Keller Kevin Lane, “Strategic Brand Management” ed.2003; Prentice-Hall of
India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India.
· Research methodology by CR. KOTHARI.


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CONTACT NO……………………………………………………………………

1. What is your occupation?

a) Business man b) Teaching

(c) Defence (d) Any Other ………………

2. Which Car brand do you own?

a) Maruti b) TATA

c) Fiat d) Hyundai

e) Any other……………………..

3. Have you purchased this car on Finance scheme?

a) Yes b) No

4. Who prompted you to buy this Car?

a) Friends & Relative b) Past experience

c) Dealer Recommendation d) Word of mouth

e) Advertisements f) Any other………….

5. What attribute you consider while purchasing the Car?

a) Price b) Performance

c) Resale value d) Maintenance cost

e) Fuel efficiency f) Finance scheme

6.. What effect these attribute have an effect on purchase decision: -


Resale Value

7. What comes in your mind while considering the under mentioned brands:


Resale value


Resale value


Resale value


Resale value

8. Considering the following attributes rank the Cars?

(a)Maruti (b) Hyundai

c) TATA (d)
9. Are you satisfied with your car?


Thank You for Your Cooperation Signature