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778 - SOM-LALIT INSTITUTE OF BUSINESS MANAGEMENT GUJARAT TECHNOLOGICAL UNIVERSITY

What is a sedan ? Indian automobile industry Objectives of study Research design Data analysis and interpretation Hypothesis Results and Findings Limitations of study Conclusions

Sedan is a passenger car in a three box configuration with A, B and C pillars and principal volumes articulated in separate compartments for engine, passenger and cargo.
Several versions of the body style exist, including four-door, two-door, nine-door. A sedan seats four or more people and has a fixed roof that is full-height up to the rear window.

In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009.
From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7% . India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.7 million units in 2010.

As of 2010, India is home to 40 million passenger vehicles

There is a huge market for automobiles in the coming years.

Price category of consumers. Income of the consumer. Features in the car that they look for. Safety standard. Finance facility they majority of customers likely to use. Service at the dealership.

Type of Research Descriptive type

Data Sources Primary Data : Questionnaires Secondary Data : Internet search engines and journals.

Data Analysis: Through MS Excel

Research Approach: Survey Method

Research Instrument: Questionnaire

Type of Questions: Close-Ended ended questions . Target Population : Consumers who have car within range of 5 to 8 lacks. Sample Size: 150

Data Analysis & Interpretation

38 %

62 %

Male Female

The majority of the respondents are males.

30 25 20 15 10 5 0

Majority are buying because of disposable income

The second reason is increase in family size and also lifestyle and personality.

60

50

40

30

20

10

under 5 lakh

5 to 6

6 to 7

7 & above

The majority of respondents lie in 5 to 6 and 6 to 7 lakh income category. So they are able to afford the sedan car.

19 %

81 %

yes no

So as majority of the cars falls within the range of 5 to 8 lakhs the respondents say that 81 % of them someone bought a car in this range. This is a wide range segment.

140 120 100 80 60 40 20 0 excellent good average poor terrible

As per the data most of the consumers are happy with performance of the car. There are none who have poor or terrible feeling.

100 90 80 70 60 50 40 30 20 10 0 extremely satisfied very satisfied neutral very dissatisfied extremely disssatisfied

86 % of customers either extremely satisfied or very satisfied with the service.

90 80 70 60 50 40 30 20 10

0
All resolved Some resolved None resolved

54 % of customers have their problems resolved but still many feel their complains are being heard .

50 45 40 35 30 25 20 15 10 5 0 routine maintenance (1) body shop repairs(2) service repairs(3) warranty covered repairs(4) 1&2 1,2,3,4 3&4

The major mass of customers go in for just routine maintenance and body shop repairs. Few go in for all types of services offered.

60 50 40 30 20 10 0 Location quality cost effective quick service location & quality

As per the data available the reasons for service is location of dealership and the quality. The consumers are willing to have the quality rather price of it.

80 70 60 50 40 30 20 10 0 Definitely recommend recommend maybe not recommend definitely not recommend

It seems that customers are happy with their car so they would recommend to others. Word of mouth plays an important role.

70 60 50 40 30 20 10 0 very likely likely not sure unlikely very unlikely

The customers seems to be loyal with the manufacturer and would likely buy in same brand.

40 35 30 25

20
15 10 5 0 luxury features(1) customer brand value for safety features(5) car styling(6) 3&4 1, 5 & 6 1,2,3,4,5,&6 service(2) popularity(3) money(4)

As per the data customers look for brand popularity and value for money while buying. These two have the majority of response.

60 50 40 30 20 10 0 Daily use(1) During weekends(2) highway commuting(3) off roading(4) 2&3 1&2

47 of the respondents say that they use the car for daily use. 56 say they use daily and also on weekends. 37 % of all respondents use it daily and on weekends.

70
60 50 40 30 20 10 0 most definitely definitely maybe not much least interested

77 % Customers seem to aware of technical specifications and look for it while buying the car.

120

100

80

60

40

20

0 very likely likely not sure unlikely very unlikely

As the petrol and diesel prices are constantly rising, all consider it while buying the car.

80 70 60 50 40 30

20
10 0 most definitely definitely maybe not much least interested

50 % of the respondents definitely ask for the discounts and free accessories while buying.

60 50 40 30 20 10 0 cash auto loan post dated cheques ECS

38 % of the respondents prefer auto loan option for buying their car.
This the easy option so consumer it, not pay big amount.

80 70 60

50
40 30 20 10 0 very likely likely not sure unlikely very unlikely

More than 60 % say that they consider the resale value while buying the car.

60 50 40 30 20 10 0 Feb- March Diwali Nov - Dec Birthdays/Anniversary no specific date

The year end sales is the most because prices are slashed by manufacturers. Diwali is also important time due to religious perception of a good beginning.

Hypothesis 1:

H0: The income of person is dependent to selection of sedan car H1: The income of person is independent to selection of sedan car

INCOME

YES

NO

TOTAL

Under 5 lacs

12

16

28

5-6 lacs

16

26

42

6-7 lacs

14

36

50

7 lacs & above

22

30

Total

50

100

150

OBSERVED

EXPECTED

(O E)

VALUE (E)
VALUE (O) 12 16 14 8 16 26 36 22 9 14 17 10 19 28 33 20 9 4 9 4 9 4 9 4 1 0.286 0.529 0.4 0.473 0.142 0.272 0.2

TOTAL

3.302

The calculated value of 2 = 3.302 Now, at 5% level of significance, 2 (0.05, 3) = 7.814 Interpretation: Since 2 (calculated) < 2 (tabulated), so we cannot reject the null hypothesis and conclude that income of person is dependent to selection of a sedan car.

Males take the majority of the decisions. The increase of family size, disposable income and the lifestyle are the major causes for buying of the car Families who are earning 5 to 7 lakhs p.a. are the major buyers. Most cars fall into 5 to 8 lakhs category segment. Customers who have bought the car are happy with its performance.

Customers are happy with the services at the dealership. Majority of the customers go in for routine service of car. Customers are happy so they will recommend the car to friends and relatives. Customers are aware about technical specifications of the car. While buying customers ask for freebees like accessories.

 Research was carried out only for Ahmedabad city so the scope of the research becomes very narrow Sample size of 150 is also a limitation to study.
Differences in Psychological behaviour of individuals during research also imposes limitation. Unwillingness on the part of some car owners to participate and aid the research.

Increase in disposable income & changing lifestyle key factors for growth in sedan category. G.D.P of a country has a direct relation with sedan car sales. Improved infrastructure and finance facility helps in sedan car sales. Word of mouth plays a very important role in deciding purchase of car. A customer who is happy with the car quality & service will become a loyal customer.

Customers who buy sedan cars also want their car to give best mileage in the category This has forced manufacturers to work on technology which can increase the fuel efficiency.
Customers who buy sedan cars look for both brand popularity & value for money.

Thank You