A RESEARCH REPORT

ON THE STUDY OF CONSUMER PREFERENCE TOWARDS VARIOUS BRANDS OF CARS

Submitted To Mata Gujri college, SRI FATEHGARH SAHIB (An Autonomous College) In the partial fulfillment for the Requirement for the degree in MASTER OF BUSINESS ADMINISTRATION SESSION (2010-2012)

SUBMITTED TO MR. RITNESHPAL SINGH PROFESSOR MBA DEPT.

SUBMITTED BY NIRBHAI SINGH MBA (4TH SEMESTER) UNIVERSITY ROLL NO.

CERTIFICATE I certify that this research entitled THE STUDY OF CONSUMER PREFERENCE TOWARDS VARIOUS BRANDS OF CARS submitted to Department Of Management Studies, mata Gujri College, sri fatehgarh sahib in partial fulfillment of the requirements for the award of Master of Business Administration, is a record of independent research work carried out by Mr.NIRBHAI SINGH under my supervision and guidance. This work has not formed the basis for the award of any Degree and has not been submitted previously to any other College/University.

Prof. ratneshpal singh DEPARTMENT OF MANAGEMENT STUDIES MATA GUJRI COLLEGE, SRI FATEHGARH SAHIB

ACKNOWLEDGEMENT
I wish to acknowledge my indebtedness to my Project guide (Faculty) Mr. Ratneshpal Singh. The project could not have been a success without his able support and guidance. Thanking him is a small gesture for the generosity shown.

I am grateful to my department, Department of Management Studies,Mata Gujri College, Sri Fatehgarh Sahib for providing me the chance to do my Major Project. I will always be obliged to my Faculty guide and my teachers who have given their precious support and guidance in every step of the project otherwise it would have been difficult on my part to bring this project work to completion. I am sure the knowledge imparted will go a long way in enriching my career.

Nirbhai Singh Batch of 2010-12 (MBA-Marketing)

DECLARATION
I do hereby declare that the project entitled THE STUDY OF CONSUMER PREFERENCE TOWARDS VARIOUS BRANDS OF CARS is submitted as a part of my Major Project for the MBA program. The project has been completed under the able guidance of Mr. Ratneshpal Singh (Faculty guide). This project has not been submitted in full elsewhere for the award or any degree.

Nirbhai Singh Batch of 2010-12 (MBA-Marketing)

Table of content

CHAPTER

CONTENT

PAGE NO

Certificate Acknowledgement Declaration Abstract Ch-1 Introduction to the Project 1.0 Introduction

Ch-

Review of Literature 2.1 Review of Literature 2.2 Objectives

Ch-3

Need and Scope of the Study 3.1 Need of the Study 3.2 Scope of the Study

Ch-4

Sampling Design and Research design 4.1 Research Methodology 4.2 Statistical Tools Used

Ch-5

Data Analysis and Interpretation

Ch-6

Findings, Limitations and Recommendations 6.1 Findings 6.2 Limitations of the Study 6.3 Suggestions Conclusions Bibliography Annexure (Questionnaire)

INTRODUCTION

AUTOMOBILE INDUSTRY
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.

INDUSTRY OVERVIEW
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.

SNIPPETS

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 (79%). 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 mark. 8

SEGMENT KNOW-HOW

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.

MISCELLANEOUS

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 Reva

Under Rs. 3 Lakhs

Ambassador Fiat Palio Hyundai Santro, Getz,i10 9

Rs. 3-5 Lakhs

Chevrolet Opel Corsa Maruti Zen, Wagon R, Versa, Esteem,,Ritz,A-star Ford Icon & Fiesta Tata Indica, Indigo XL, Indigo Marina-

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. 5-10 Lakhs

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

Rs. 10-15 Lakhs

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

Rs. 15-30 Lakh

Rs. 30-90 Lakhs

Audi A6, A8 & Audi TT BMW X5, 5 Series & 7 Series 10

Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S Toyota Prado Volvo

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

Above Rs. 1 Crore

INDIAN AUTOMOBILE INDUSTRY

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

IN BRIEF
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 created. 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. 11

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.

INDUSTRY INVESTMENT

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.

CURRENT SCENARIO

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 India.

OVERVIEW Snippets

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.

12

Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment.

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

Rank 1 2 3 4 5 6 7 China India

2009 China

2008 China

2007 China

2006

Thailand India Vietnam USA Russia Indonesia

Thailand USA Vietnam India Indonesia Korea

Thailand USA Indonesia Vietnam India Korea

Thailand Vietnam USA Russia Korea

Indian Automobile Industry Growth

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

CURRENT SCENARIO

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.

OVERVIEW
13

Snippets

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 cent.

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. 14

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
15

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.

INDIAN AUTOMOBILE COMPANIES

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

CURRENT SCENARIO

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 QQQthe world.

OVERVIEW Snippets

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

16

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.

GLOBAL PLAYERS IN INDIA

Segments
Cars/ SUVs

Companies
Suzuki Honda Toyota Mitsubishi GM Ford

Daimler-Chrysler Skoda Fiat Hyundai Tata M&M

Two-wheelers

TVS Hero Honda Bajaj Auto Tata Ashok Leyland Tatra Eicher-Mitsubishi Escorts 17

Yamaha Kinetic LML Swaraj Mazda Mahindra & Mahindra Volvo

CVs

Tractors

New Holland

M&M L&T Punjab Tractors

ITL-Renault John-Deere Steyr

Manufacturing Hub in India: Company

Hyundai Skoda Ford Export Base for Small Cars. Hub for exports of cars to neighbouring countries. Exporting CKDs of Ikon to South Africa & other countries.

Particulars

Mitsubishi & Yamaha Hub for 125 cc Motorcycles. Maruti Suzuki Honda Exports cars to EU. Hub for two-wheelers exports.

Manufacturing Hub for Components: Company

Toyota Motor Daimier Chrysler Ford Fiat

Particulars
Global Hub for Transmission Sourcing more than 70 million Euro Full Fledged Component Sourcing Team Sourcing Components.

18

COMPANY PROFILE

MARUTI UDYOG LTD. (MUL)

"
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, etc.

QUICK FACTS
Year of Establishment February 1981 "The Leader in The Indian Automobile Industry, Creating Vision Customer Delight and Shareholder's Wealth; A pride of India." Industry Listings & its codes Automotive - Four Wheelers BSE - Code: 532500 NSE - Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.BO 19

Joint Venture

With Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982.

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

Works

Palam Gurgaon Road Gurgaon -122015 Haryana, India

http://auto.indiamart.com/maruti/ http://www.oppapers.com/essays/Indian-Automobile-Industry-Maruti

SEGMENT AND BRANDS Products

Four Maruti 800 Maruti Alto Maruti Grand Vitara XL-7 Maruti Suzuki SX4 Maruti Vitara

Brands
Maruti Baleno Maruti Gypsy King Maruti Swift Maruti Wagon-R Maruti ritz

Wheelers Maruti Esteem Maruti Omni Maruti Versa Maruti Zen

BOARD OF DIRECTORS 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 20

Ms. Pallavi Shroff, Director Mr. Manvinder Singh Banga, Director

AWARDS & ACCOLADES

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 Number one in JD Power CSI for the sixth time in a row - the only car to win it so many times.

2011

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. Business World ranks Maruti among top five most respected companies in India-Oct 04.

Maruti ranked among top ten (Rank7) greenest companies in

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India by Business Today - Sep '04

Maruti Suzuki was No. 1 in Customer satisfaction, No. 1 in Sales Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1 in Product Appeal (Esteem and Wagon R).

No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto). 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.

SALES PERFORMANCE
(Rs. in Lacs) PARTICULARS QUARTER ENDED 31.12.08 31.12.09 Domestic Vehicles Sold (No.) Export Vehicles Sold (No.) Total Vehicles Sold (No.) Net Sales Total Income Total Expenditure Profit before Tax Net Profit NINE MONTHS ENDED 31.12.08 31.12.09 FINANCIAL YEAR ENDED 30.06.2008

(6 month) (9 month) (Audited) 380,763 351,583 487,402

137,127 122,042

7,883

14,027

26,656

37,958

48,899

145,010 136,069 310,431 279,646 322,079 293,837 264,831 245,363 50,269 33,901 37,207 23,966 22

407,419

389,541

536,301 1,091,075 1,135,387 955,614 130,489 85,363

874,309 787,726 909,516 764,078 122,454 82,813 821,177 692,645 91,465 59,418

MILESTONES
1981 1982 1983

Maruti Udyog Ltd. was incorporated. Steped into a JV with SMC of Japan. Maruti 800, a 796 cc hatchback, India's first affordable car was produced.

1984

Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production.

1985 1986 1987 1988 1992 1994

Launch of Maruti Gypsy (970cc, 4WD off-road vehicle). Produced 100,000 vehicles (cumulative production). Exported first lot of 500 cars to Hungary. Installed capacity increased to 100,000 units. SMC increases its stake to 50 per cent. Produced the 1 millionth vehicle since the commencement of production.

1995

Second plant launched, the installed capacity reached 200,000 units.

1996 1997

Launch of 24-hour emergency on-road vehicle service. Produced the 2 millionth vehicle since the commencement of production.

1998 1999

Launch of website as part of CRM initiatives. Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. 23

2000

IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits.

2002

Launch of customer information centers in Hyderabad, Bangalore, and Chennai.

2003

SMC increases its stake to 54.2 per cent. Launch of Maruti Finance with 10 finance companies in Mumbai.

Start of Maruti True value in Mumbai. Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times.

2004

2005

Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago.

2006

The fiftieth lakh car rolls out in April, 2005. Swift launched Launched Maruti Wagon R Duo With LPG Joint venture between japans Bellsonica Swift diesel launched Sx 4luxury sedan launched Launched grand vitara Maruti A-star,zen estillo new Maruti ritz(diesel,petrol)

2007

2008 2009 2010

24

COMPANY FLASHBACK

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 fullyintegrated 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

25

TATA MOTORS LTD.

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. QUICK FACTS Founder Year of Establishment Industry Business Group Listings & its codes Jamshedji Tata 1945 Automotive The Tata Group BSE - Code: 500570 NSE - Code: TELCO & TATAMOTORS NYSE - Code: TTM Corporate Office Bombay House 24, Homi Mody Street Mumbai 400 001, India Tel.: +(91)-(22)-56561676 Works E-mail Jamshedpur, Pune, Lucknow and Dharwad am@tatamotors.com rbc@telco.co.in (for international inquiries)

26

SEGMENT

AND

BRANDS BRANDS

PRODUCTS Passenger Cars Indica V2 Indigo SX Indigo XL Utility Vehicles Trucks Buses Safari Dicor

Indigo Indica V2 Turbo

Indigo Marina Indica V2 Xeta

Sumo Victa

All types of Medium & Heavy Commercial Vehicles Starbus Globus SFC 407 Turbo Mini- bus LPO 1510 CGS bus (CNG bus) LP / LPO 1512 TC Turbo Bus LP 1109 Bharat Stage II Tata LPTA 713 TC (4 x4) Tata LPTA 1615 TC (4 x 4)

LP 407 Turbo Mini- bus

LP 709 E Turbo Bus LP / LPO 1512 TC Turbo Bus LPO 1616 TC Luxury Bharat Stage - II Bus Tata 407 / (4 x2) Hard Top Troop Carrier Tata SD 1015 TC (4 x4) Tata LPTA 1615 TC (4 x2)

LP / LPO 1510 LPO 1610 TC RE Semi Low Floor Bharat Stage - II Bus Defence Tata 407 (4 x 4) Soft Top Troop Carrier Tata LPT 709 E Hard Top Troop Carrier Tata LPTA 1621 TC (6 x6)

AWARDS & A CCOLADES 2003

Awarded with the 'Golden Peacock Environment Management Award' in the category of 'large manufacturing by the World Environment Foundation, New Delhi.'

Won the Jamnalal Bajaj Uchit Vyavahar Puraskar for fair business practices in the 'manufacturer - large' category, converred by the Council for Fair Business Practices.

The commercial vehicle business unit was presented with a 27

commendation certificate for 'Strong commitment to TQM.'

Tata Indigo was voted as the 'most exciting new car' by the ICICI Bank and Overdrive Awards.

2002

The Indian Merchants' Chamber Diamond Jubilee Endowment Trust Award was presented with the 'Industry and Technology Award.'

Tata Indica was presented with the 'voice of the customer award' for the 'best diesel small car' at NFO Automotive India.

Tata Motors, Jamshedpur, was presented with the prestigious 'Prof. Vasant Rao rolling trophy,' instituted by the Indian Value Engineering Society, in the area of value engineering.

SALES PERFORMANCE & FINANCIALS 1.FINANCIAL RESULTS:2010-11

AT A

GLANCE

Financial Year

(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: 28

(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

APPROPRIATIONS:

(a) Debenture Redemption Reserve 267.80 -

(b) General Reserve 100.13 1000.00 29

(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. ...

MILESTONES 1945

1945 Establishment of Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products.

1948

1948 Introduced steam road roller in collaboration with Marshall Sons (UK).

1954

1954 JV with Daimler Benz AG (West Germany) to manufacture medium commercial vehicles. Within 6 months, the first vehicle rolled out.

1959 1961

1959 Research and Development Centre set up at Jamshedpur. 1961 In exports, the first truck shipped to Ceylon (now Sri Lanka).

1966

Setting up Engineering Research Centre at Pune to give impetus to the automobile Research and Development.

1971 1977 1983

1971 Introduction of DI engines. 1977 The first commercial vehicle manufactured in Pune. 1983 Commencement of manufacturing Heavy Commercial Vehicle.

30

1985

1985 First hydraulic excavator produced with Hitachi collaboration.

1986

1986 The first light Commercial Vehicle produced, Tata 407, indigenously designed, followed by Tata 608.

1989 1991

1989 Tatamobile 206 - 3rd LCV model introduced. 1991 Tata Sierra launched, TAC 20 crane produced and one millionth vehicle rolled out.

1992 1993

1992 Tata Estate launched. 1993 JV with Cummins Engine Co. Inc. for manufacturing of high horsepower and emission friendly diesel engines.

1994

1994 Tata Sumo and LPT 709 launched. JV with M/s DaimlerBenz/ Mercdes-Benz and Tata Holset Ltd., UK.

1995 1997 1998 2000

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 vehicle Intermediate commercial vehicle.

2001

100,000th Indica wheeled out. Launch of CNG Indica. Exits JV with Daimler Chrysler.

2002

2,00,000th Indica and 5,00,000th passenger vehicle rolled out. Tata Engineering signed product agreement with MG Rover of the UK.

31

2003

Tata Engineering becomes Tata Motors Limited. 3 millionth vehicle produced. First CityRover rolled out.

2004

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

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

2007-09

factory at Jamshedpur inaugurated for Novus. THE GREAT INVENTION ------------------------------------------------ TATA NANO small car only in one lakh

Tata Xenon XT, 2009 Tata Winger

2010

COMPANY FLASHBACK

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. 32

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 NANO
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 Smart.

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

Engine:

two

cylinder

623

cc,

33

hour

(65

miles

per

hour).

Fuel Efficiency: 20 kilometres per litre, or 50 miles per gallon is claimed.

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, 33

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 airconditioning 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 INDIA PVT LTD

Fiat was founded On 11 July 1899 at Palazzo Bricherasio, the company charter of Societ 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. 34

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 history. QUICK FACTS Country Year of Establishment Italy July 11, 1899 in Turin (Italy) as F.I.A.T In India a contract was signed with Premier Automobiles in 1951. Industry Business Group Listings & its codes Contact Details Automobiles manufacturing Fiat Auto Spa NYSE: FIA; ISE: IT0001976403 LBS Marg, Kurla (W) Mumbai-400070 International Corporate Headquarters Via Nizza, 250 10126 Turin Italy

BOARD OF DIRECTOR
Luca Cordero di Montezemolo(chairman) John Elkann(Vice Chairman) Sergio Marchionne (Chief Executive Officer) Andrea Agnelli(director)

SEGMENT OF FIAT INDIA

Fiat Grande Punto Palio 1.6 Sport Palio 1.2 NV Petro Palio Diesel 35

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 "Societ 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 company.

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

36

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 time.

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 37

production. Research continued on marine and aircraft engines: in 1951 the first Italian jet aircraft came into being, the G80. From 1952 1964 Diesel 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 Coup, with bodywork designed by Pininfarina and Centro Stile Fiat

38

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 Dobl 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 2010-2011 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...

PERFORMANCE

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 39

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
Country Year of Establishment Listings & its codes Retail Finance Partners South Korea 1967 KSE: 005380; LSE: HYUD HDFC Bank, ICICI Bank, Mahindra Finance, Punjab National Bank, Sundaram Finance. Contact Details A-30, Mohan Co-Operative Industrial Estate Mathura Road, New Delhi - 110044 40

Tel: +(91)-(11)- 41678800 Fax: +(91)-(11) - 41678811 Complaints & Queries 1800-11-4645 (Toll Free) +(91)-(11)-26924645 cr@hmil.net

http://www.hundyigroups.com

Segment and Brands

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

41

Awards

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

42

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

43

Award for 2005-06 on June 1, 2007

Tucson - 'SUV of the year' by NDTV Profit/Car & Bike Awards 2006

PM Presents Star Company Award to Hyundai Motor India

TNS TCSS 2005

Accent Petrol - 'No 1 Entry Midsize Car'

TNS TCSS 2005

Accent CRDi - 'No 1 Midsize Diesel Car'

Hyundai Santro has topped the JD Power Asia Pacific Intial Quality Study (IQS) that measures product quality for three years in a row (Years 2000, 2001 and 2002)

Hyundai Santro has topped the JD Power Asia Pacific APEAL study that measures customer satisfaction for three years in a row (Years 2000, 2001 and 2002)

Hyundai Accent has topped the JD Power Asia Pacific IQS for 2002 and

44

the APEAL study for 2001 and 2002.

Hyundai Motor India was adjudged the Car Maker of the year at the ICICI Bank Overdrive awards 2003

2005

No 1 Entry Midsize Car' by Accent Petrol. No 1 Entry Midsize Car' by Accent CRDi. Hyundai Getz became the 'Car of the Year' by BS Motoring. Hyundai Motor India Limited became the 'Company of the Year' by BS Motoring.

Hyundai Getz became the 'CNBC Autocar Car of the Year.' Hyundai Elantra became the 'Best Value for Money Car' by CNBC.

2007

Hyundai Motor India adjudged as the 'Car Maker of the year' at the ICICI Bank Overdrive awards.

2009

Hyundai Accent topped the 'JD Power Asia Pacific IQS' for 2002 and the APEAL study for 2009.

45

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 segment.

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

46

47

REVIEW OF LITERATURE
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 undertaken. 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

48

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 industry. 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.

49

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 Kendalls Index of Rank Concordance and the EvansKarras 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 countrys 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.

50

INTRODUCTION TO TOPIC

51

CONSUMER PREFERENCE

Consumer Preference is a business term which is used to capture the idea of measuring how satisfied an enterprises 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 organizations 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.

HOW COMPANIES FIND CONSUMER PREFERENCES

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 52

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. HOW COMPANIES USE THIS INFORMATION

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.

CONSUMER BEHAVIOUR
In todays 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. Thats why the marketing managers interest lies exactly in understanding consumer behavior to ensure that his marketing strategy results in purchase of the product.

53

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.

DETERMINANTS OF CONSUMER BEHAVIOUR

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

54

PERCEPTUAL MAPPING
Consumers 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 consumers 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.

55

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.

56

OBJECTIVES

57

OBJECTIVE OF STUDY
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 CONSUMER PREFERENCE TOWARDS VARIOUS BRANDS OF CARS.

Other objectives are as follows: To know the factors affecting the preference of consumers towards purchase To know the consumer purchasing power To know the buying criteria of consumer while purchasing a car To check the loyalty of the consumer towards the brands. To know the advertisement effect on consumer preference To know the level of satisfaction after purchasing car

58

59

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.

MEANING OF RESEARCH
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 Learners 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 convenience.

3.1 SAMPLING DESIGN

Target Population - The respondents are those who are having their own Cars. Sample size 150 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 - Sirhind city and nearby area 60

 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, consumers preference and customers satisfaction regarding two wheelers. In collecting requisite data and information regarding the topic selected, I went to the residents of sirhind city and collected the data.

61

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 closeended 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 convenience

62

Data analysis And Interpretation

63

Q1. What is your occupation?

Occupation
Students Business man Service Defence Any Other

No of respondents
60 8 43 24 15

Percentage
40 % 5% 29% 16% 10%

Occupation
70 60 50 40 30 20 10 0 Student 8 Govt employee Private employee Businessman 60 43 24 15 Any other no of respondents

Interpretation: So from the above diagram it is clear that 60 of the respondents are
students 8 are govt. employees,43 are private employees,24 businessmen However and 15 belong to any other occupations .so majority is from the student and prvate employees.

64

Q2. Which Car brand do you own?

Brand
Maruti Tata Hyundai Fiat

No of respondents
60 28 43 19

% age
40 % 17 % 32 % 11 %

Brands of car own

11% 40% 32% Maruti Tata Hyundai Fiat 17%

Interpretation: so from the total respondents 40% are having the the Maruti 32% are
having Hyundai,17% are having with Tata and only 11% are having Fiat with them so the market leader is Maruti with having the hight number of respondents

65

Q3. From how long time you are using the car? Time
0-2 Yrs 3-5 Yrs 5-7 Yrs 8-10 Yrs

No of respondents % age
32 89 23 6 21% 60% 15% 4%

how long you are using the car

4% 15% 21% 0-2 3--5 5--7 60% 8--10

Interpretation: so we see from the above discussion 60%are from 3-5 years
segment ,21% respondents are using the car from 0-2 years,15% respondents are from the 5-7 years category and only 4% respondents are from the 8-10 yaers so from here we see only the 4% consumers are more brand loyal.

66

Q4. How much amount would you think affordable?

Price
2-3 lac 4-5 lac 6-7 lac 7-8 lac

No of respondents
24 74 29 23

Percentage
16% 50% 19% 15%

price affordability
15% 16% 2-3 lac 19% 4-5 lac 6-7 lac 7-8 lac 50%

Interpretation:in the pie chart the whole data represents 50% respondants are ready
to afford 4-5 lac ,16%can afford 2-3 lacs 19% respondents are ready to spent 6-7 lac and only the 15% respondents are here who can afford 7-8 lac which are mostly from the Hyundai brand customers

67

Q5. Are you satisfied with the services provided by the company? options
Yes No

No of respondents
128 32

Percentage
80% 20% 20%

overall performance satisafaction

20%

yes no 80%

Interpretation :the data is all about the satisfaction of consumers from the performance of
various brands so from the above information it is clear that 80% respondents are satisfied with the performance of their car and the rest 20% are not satisfied with the performance

68

Q6. How you will prefer to buy the car? ..

Means of Purchase
Finance Cash Credit from friends

No of respondents
69 81 0

Percentage
46% 54% 0

means of purchase
0%

46% 54%

finance cash credit from friends

Interpretation: the data is also collected regarding the means of finance of the consumers
so from the above pie chart it is clear that 54% consumers are purchase cars on cash basis but the 46% respondents buy on various finance schemes and the % of respondents is 0 who took the credit from friends.

69

Q 7. Who prompted you to buy this car?

No of respondents
46 friends &relatives past experiences Dealer recommendations word of mouth Advertisements 11 18 36 39

Percentage
31% 26% 7% 12% 24%

who prompt you to buy car

50 40 30 20 10 0 friend & relatives past experience 46 39 11 18 advertisement 36 No of respondents

dealer word of mouth recommendation

Interpretation:

from the above bar diagram 46 respondents are influenced from

friends and relatives 39 respondents purchase the car with their past experiences,11 with the dealers recommendations 18 were influenced by word of mouth and 36 consumers make purchase with the help of advertisement

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Q8. what attribute you considered while purchasing a car ?

Factors
price performance

No of respondents
36 71 48% 24%

resale value maintanace cost fuel efficiency

2 8 33

1% 5% 22%

Attribute considered while purchase

22%

24% price performance

5% 1%

resale value maintance cost fuel efficiency 48%

Interpretation:

while purchasing a car 48% consumers looked for performance more

rather than other attributes 24% respondents considered the price as main attribute ,22% took fuel efficiency 5% cared about maintance cost but only 1%for resale value

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Q9.

What effects these attribute have an effect on purchase decision?

Strongl y Agree

%ag e

%ag Agree e

N. A. nor Disagre e

%ag e Disagr ee

%a ge

Stro %age ngly Dis agr ee

Price Fuel Efficiency Resale Value Performance Maintenance Cost Finance Scheme
80 70 60 50 40 30 20 10 0 price 8 24 41 74

24 38

9 15

74 72

23 22

41 29

19 14

8 9

11 13

3 2

8 5

45 55 61

18 21 24

35 50 64

11 15 19

30 25 14

14 12 7

25 19 5

35 26 7

15 6 6

42 17 17

34

13

33

10

73

34

11

72 64 61 55 50 45 38 29 35 30 25 15 9 3 2 fuel efficency resal value 41

73

strongly agree 3433 agree nei agr nor disag disagree strongly disagree 6 5 6 maintance cost 6 4 finance scheme

25 14

performance

Interpretation: so the above diagram represents the affect of various attributes on

purchase decisions 24 respondents are strongly agree with price 74 are agree 41 are in the nei, agree nor disagree ,8 disagree and only 3strongly disagree In case of fuel efficiency 38are strongly agree ,72are agree 29 are neutral 9 are disagree and 2 respondents are strongly disagree 72

In case of resale value45 are strongly agree 35 are agree 30are neutral,25 are disagree and 15 are strongly disagree In case of performance 55 are strongly agree, 50 are agree,25 neutral ,14 disagree,6 are strongly disagree As the maintance cost wise the 61respondents are strongly agree,64 are agree 41are neutral 5 disagree,6 strongly disagree According to the purchase on finance scheme 34 consumers are strongly agree ,33are agree 73 are neutral 6 are disagree and only the 4 consumers are strongly disag

73

Q10. What comes in your mind while considering the under mentioned brands:
1) Hyundai

Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme 23 14 16 49 20 15

High

Satisfactory Low

Very Low

67 26 37 53 48 35

35 76 81 36 39 46

19 29 11 8 27 34

6 5 4 6 15 20

90 81 80 70 60 50 40 30 20 10 0 price fuel efficency resale value performance maintenance cost finance scheme 23 35 26 19 14 6 5 29 16 11 4 86 20 15 15 37 67 53 49 36 76

48 39 27

very high 46 35 34 20 high satisfactory low very low

Interpretation :

In case of Hyundai so the above diagram represents the affect of various

attributes on purchase decisions 23 respondents said price is very high, 67 says high 35 says satisfactory ,19 says low and only 6 said very low In case of fuel efficiency 14says very high, 26said high76 said satisfactory, 29 said low and 5 sid very low In case of resale value16 said very high 37 said high 81 said satisfactory,11 said low and 4 said very low

74

In case of per formance 49 said very high, 53 said high,36 said satisfactory ,8 said low,6 said very low As the maintance cost wise the 20respondents said very high,48 said high 39 said satisfactory 27 said low,15 said very low According to the purchase on finance scheme 15 consumers said very high,35 said high ,46 said satisfactory 34 said low and only the 20 consumers said very low.

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2) Maruti

Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme 20 29 32 39 15 12

High

Satisfactory Low

Very Low

30 61 58 49 26 38

70 38 35 33 55 40

18 14 19 21 34 45

12 8 6 8 20 15

80 70 70 61 60 50 40 30 30 20 20 10 0 price fuel efficency resale value performance maintenance cost finance scheme 18 12 14 8 6 8 29 38 32 35 58 49 39 33 26 19 21 15 20 12 15 34 45 40 38 55 very high high satisfactory low very low

Interpretation:

In case of Maruti so the above diagram represents the affect of various

attributes on purchase decisions20 respondents said price is very high, 30 says high 70 says satisfactory ,18says low and only12 said very low In case of fuel efficiency 29says very high, 61said high38 said satisfactory,14 said low and 8 said very low In case of resale value32 said very high 58said high 35 said satisfactory,19 said low and 6 said very low In case of per formance 39said very high, 49 said high,33said satisfactory ,21 said low,8 said very low 76

As the maintance cost wise the 15 respondents said very high,26 said high 55 said satisfactory34 said low,20 said very low According to the purchase on finance scheme 12 consumers said very high,38said high ,40 said satisfactory 45 said low and only the 15 consumers said very low

77

3)

TATA

Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme 17 24 5 20 16 16

High

Satisfactory Low

Very Low

26 70 14 26 29 47

82 35 35 81 42 46

21 14 66 19 38 33

4 7 30 4 25 8

90 80

82 70

81 66 very high high satisfactory low 16 8 very low

70 60 50 40 30 20 10 0 price 26 17 21 24 14 4 7 5 14 35

35 30 26 20 19 4

42 38 29 16 25

4746 33

fuel efficency resale value

performance maintenance cost

finance scheme

Interpretation:

In case of TATA so the above diagram represents the affect of various

attributes on purchase decisions17 respondents said price is very high, 26 says high 82 says satisfactory ,21 says low and only 4 said very low In case of fuel efficiency 24says very high, 70said high35 said satisfactory, 14 said low and7 said very low In case of resale value5 said very high 14 said high 35 said satisfactory,66 said low and 30 said very low In case of per formance 20 said very high, 26 said high,81 said satisfactory 19 said low4 said very low 78

As the maintance cost wise the 16 respondents said very high,29 said high 42 said satisfactory 38 said low,25 said very low According to the purchase on finance scheme 16 consumers said very high,47 said high ,46 said satisfactory 33 said low and only the 8 consumers said very low

79

4)

Fiat

Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme 18 16 13 21 18 9

High

Satisfactory Low

Very Low

42 31 26 44 26 21

58 47 62 58 46 64

29 38 42 21 39 35

3 18 7 6 21 11

70 62 60 50 42 40 30 20 10 3 0 price fuel efficency resale value performance maintenance cost 18 29 31 26 16 18 13 7 6 9 21 21 26 18 21 38 58 47 42 58

64

44

46 39 35 very high high satisfactory 21 11 low very low

finance scheme

Interpretation :

In case of FIAT so the above diagram represents the affect of various

attributes on purchase decisions 18 respondents said price is very high,42says high 58 says satisfactory ,29 says low and only 3 said very low In case of fuel efficiency 16says very high,31 high47 said satisfactory,38said low and 18 said very low In case of resale value13 said very high26said high 62 said satisfactory,42 said low and 7 said very low In case of per formance 21 said very high,44 said high,58 said satisfactory ,21 said low,6 said very low

80

As the maintance cost wise the 18 respondents said very high,26 said high 46 said satisfactory 39 said low,21 said very low According to the purchase on finance scheme 9 consumers said very high,21 said high ,64 said satisfactory 35 said low and only the 11 consumers said very low

81

Q11 How you will rank the cars?

No of respondents
Maruti Hyundai TATA Fiat 19 60 43 28

Percentage
40% 29% 19% 12%

car ranking
70 60 60 50 40 30 20 10 0 maruti hyundai tata fait 28 19 no.of respondents 43

INTERPRETATION:from the above information 60 respondents has given 1st rank to Maruti and 43 consumers gave Hyundai the first rank 28 given to Tata 19 to fiat

82

Q12. Are you satisafied with performance of your car?

Response
Yes No

No of respondents Percentage
126 24 84% 16 % 16%

satisafaction with performance

16%

yes no 84%

Interpretation: 84% respondents are satisfied with the performance of their car and16%
respondents are not satisfied with their cars

83

Q13. will you prefer the same car or suggest other person to buy the same car?

Response
Yes No

No of respondents
118 32

Percentage
79% 21 % 21%

Suggestion to other to buy

21%

yes no 79%

Interpretation: so from the above explanation it shows 79 % respondents said that they will
suggest other people to buy the car that they are having and 21% said they will not suggest

84

Q14. Do you think that advertisement put impact in taking purchase the decision for buying the car?

Response
Yes No

No of respondents
112 38

Percentage
75% 25% 25%

advertisemnet impact on purchase decision

25% yes 75% no

Interpretation:7 5% respondents said advertisement has influenced their purchasing

decision but 25% said that they did not have not any kind of affect of advertisement on their purchase

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Q15. Which advertising factor affects your purchase decision?

No of respondents percentage
Newspaper Internet TV Electronic Hoarding 32 65 14 39 21% 44% 9% 26%

Advertising factor affects on Purchase

Newspaper Internet T.V Electronic Hoarding

9%

26%

44%

21%

Interpretation: in the case of advertisement affect 44% consumer said tv ,26% said
newspaper,21% said internet only 9 % said that they are influenced by electronic hoardings

86

Q16.Are you satisafied with after sales services provided by company?

Response
Yes No

No of respondents
123 27

percenatege
82% 18%

satisafaction from after sales services

18%

yes no 82%

Interpretation: in case of after sales services 82% respondents says yes they are satisfied by
the services but 18 % said they not satisfied by the after sales services of their company

87

FINDINGS

88

FINDINGS OF THE STUDY

The research is the comparative study of various brands of cars about their performance, fuel efficiency, price, resale value so the main findings of the research are following:-

1. 60 respondents from the student category who are dependents on their parents and the main part of the total respondents from the private employees category. 2. The research shows 60 of the respondents owning Maruti from 150 dependents due to its good performance and fuel efficiency. 3. The brand loyality of the customer is average because 60% of the customers are using the same brand from 3-5 years. 4. Most of the respondents are basically satisfied with the services provided by the company. 5. Majority of the respondents from cash buyers (54%) and 46% buyers preferred to purchase through finance scheme. 6. In case of motivation to purchase the effect of friends and relative is 46% and past experience 39% and advertisement has 36%. 7. From the research we find that 79% of the respondents suggests others to buy that brand. 8. T.V. is the most powerful advertisement source for respondents which influenced 44% respondents and other influencing media is internet and newspaper.

89

LIMITATIONS

90

LIMITATIONS:

Nothing is prefect in the world, every individual is bound to make mistake at some points, and it is genuine. The study was restricted to Sirhind region only. Limited knowledge of the researcher in the field of research may lead to interpretation errors. The respondents may be biased or influenced by other factor. Non-co-operative behavior of respondent was a big problem in this survey. . The research was based on primary collection of data through structured questionnaire so there may be chances of human error. The research was depending on the information provided by the respondents As associated with project, time and money were the major limitations with project.

91

Suggestions

92

Suggestions:

Companies have to provide better finance schemes to compete with competitors.

Companies should provide better after sales services to satisfy all the customers.

advertisements can be renewed explaining the product feature and aggressive marketing will help the company.

The company can adopt new strategies and policies to overcome t h e competition.

The companies should provide the new models of cars with high fuel efficiency because most of respondents focus on mileage of the car.

The price should be reasonable to attract more and more customers.

The companies should target on students and servicemans to increase sales.

93

Conclusion

94

Conclusion:

F r o m t h e a n a l ys i s o f t h e d a t a c o l l e c t e d a n d f r o m t h e e x p e r i e n c e s I h a v e

r e a c h e d t h e following conclusions that Gaining and maintaining consumer preference is a

battle that is never really won. Continued and consistent branding initiatives that reinforce the consumers purchase decision will, over time, land the product in

consumer preference sets.Attaining and sustaining preference is an important

step on the road to gaining brand loyalty Most of the consumers prefer maruti cars in

sirhind region due to its strong brand image,better after sales servies and high

performance are the main factor forcing the customers to buy maruti cars.

95

BIBLIOGRAPHY

96

BIBLIOGRAPHY

BOOKS Schiff man Leon G & Kanuk Lesie Lazar, Consumer Behavior 4th ed.; PrenticeHall of India pvt ltd, M-97, Connaught Circus, New Delhi-110001, India. Kotler Philip, Marketing Management ed. 2002; Prentice-Hall of India pvt ltd, M97, 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.

WEBSITES

http://www.zigwheels.com/fiat-grande-punto http://www.fiat-india.com/Punto-image intro.aspx?ModelId=6http://www.cars.tatamotors.com/ http://www.bloombergutv.com/industry-news/automobile-industry-india/48324/tatamotors-sells-20--telcon-stake.html http://www.marutisuzuki.com/showroom.aspx http://www.maruti.com/ http://www.carfinderservice.com/make/Hundayi shttp://www.autocarbe.com/search/hundayi+i20u+model+2010

97

Annexure

98

QUESTIONNAIRE

Respected Sir/Madam, I am a student of Mata Gujri college Fatehgarh Sahib conducting a marketing survey on Consumer Preference towards various brands of cars. The objective of this survey is to collect information about behaviour of customers about automobile sector. The questionnaire is being administered to people like you who have strong interpret in cars. Please let us know your spontaneous response to the questions that pertain to your purchasing experience in cars. I requested you to fill this questionnaire and i assure that this data will be used only for study purpose and it will keep confidentional. Consumer survey

1. Name................................................................................................................................ ...........

2. Age

15-20

20-30

30-40

40-50

50 & Above

3. Occupation : Student Businessman

Govt Employee

Private Employee

Any Other (pls specify)

4. Income group 5k-10k

10k-20k

20k-30k

30k-40k

40k-50k

50k &above

5. Number of family dependants : Nil

One

Two

Five

Any other (Pls Specify)

99

STUDY OF CONSUMER PREFERENCE TOWARDS VARIOUS BRANDS OF CARS

QUESTIONNAIRE

1. What is your occupation? ( b) Service

(a) Business man (c) Defence

(d) Any Other

2. Which Car brand do you own? b) TATA

a) Maruti

c) Fiat

d) Hyundai

3. From how long time you are using the car?

a)0-2 yrs c) 5-7 yrs

b) 3-5 yrs d) 8-10 yrs

4. How much amount would you think affordable?

a) 2-3 lacs

b) 4-5 lacs

c) 6-7 lacs

d)7-8 lacs

5. Are you satisfied with the services provided by the company? a)Yes 100 b ) No

6. How you will prefer to buy the car? a)finance c)cash b )credit from friends

7. Who prompted you to buy this car? a) friends &relatives c) Dealer recommendations mouthe) Advertisements b)past experiences d) word of

8. what attribute you considered while purchasing a car ? a)price d) maintanace cost b) performance e) fuel efficiency c)resale value

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

Strongly Agree

Agree

N. A. nor Disagree

Disagree Strongly Disagree

Price Fuel Efficiency Resale Value Performance Maintenance Cost Finance Scheme

101

10. What comes in your mind while considering the under mentioned brands: 1. HYUNDAI

Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme

High

Satisfactory Low

Very Low

2. MARUTI Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme High Satisfactory Low Very Low

3. TATA Very High Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme High Satisfactory Low Very Low

102

4. FIAT Very High High Satisfactory Low Very Low Price Fuel Efficiency Resale value Performance Maintenance cost Finance Scheme

11. How you will rank the cars? a) Maruti c) Tata 12. Are you satisafied with performance of your car? a) Yes b) No b) Hyundai d) fiat

13. will you prefer the same car or suggest other person to buy the same car? a) Yes b) no

14. Do you think that advertisement put impact in taking purchase the decision for buying the car? a) Yes b) no

15. Which advertising factor affects your purchase decision? a) Newspaper c) TV b) Internet d) Electronic hoarding

16. Are you satisafied with after sales services provided by company? a) yes b) no

17. Name.............................................................................................................................. Address.................

Contact No 103

Thank You for Your Cooperation

Signature

Conclusion

104