Final Capstone Project

AUTOMOBILE
INDUSTRY

2
PROJECT STUDY ON

SUBMITTED
TO:

2013

3

This Capstone project is a part of PGDM Programme. My research objective of this
project is to find out factor affecting purchase of four wheelers in Rajkot city.

The duration of the project is 4
th
and 5
th
Trimester of PGDM Programme. We have to
submit this project at the end of 5
th
Trimester. Its an individual project on the topic relevant to
the major specialization subject.

For this project, first we have to find out the topic with the help of magazine, journals or
some short of basic research. Our project guide suggest us appropriate title from our basic
research.
We have to prepare questionnaire to collect primary data from the respondents. I have
collected primary data from the respondents with the help of the questionnaire and analyses
the same in this project. In this report, I have put automobile industry information with help of
secondary data.
After completion of report we can say that there are some factors is influence on
consumer purchase decision like price of car, friend family and colleague, after sales service,
availability of car, mileage, power, safety, technology, ect.

4

The satisfaction and joy that accompanies the successful completion of a task is
incomplete without mentioning the name of the person who extended his help and support in
making it a success.
We are greatly indebted to Dr. S.C.Reddy (Dean of MEFGI), my Project Guide and
Mentor for devoting her valuable time and efforts towards my project. We thank her for being
a constant source of knowledge, inspiration and help during this period of making project.
The creative input from the entire our collage facilities were responsible to completion
of the project. It is with a deep sense of gratitude that we would like to acknowledge with
thanks the resource, full service and support rendered by librarian at Marwadi education
foundation group of institutions.

5

As Capstone Project is a part of Partial Fulfillment of PGDM Programme, we have
taken our project on Indian Automobile industry: Factor affecting purchase of four wheelers.

We hereby declare that we have gathered relevant information by my own sources and
my worked for the same project is so original and i have not tried for any malpractices. I
ensure that we have not taken any published reports. I got conclusion by our combined and
effective work. There was no scope of any type of copying by outer sources.

Hetal shah

DECLARATION

6

Competitive pressures and increasing complexity have led automotive companies to
look for an edge wherever they can find it. Improved consumer insight into vehicle shopping
and buying behavior can provide that valuable advantage. This report contains insight that can
help vehicle manufacturers and dealers develop and execute more effective strategies in areas
such as sales, marketing and advertising, after sales service, Customer Relationship
Management (CRM) and manufacturer/dealer collaboration.
The Indian Automobile Industry is manufacturing over 11 million vehicles and
exporting about 1.5 million every year. The dominant products of the industry are two
wheelers with a market share of over 75% and passenger cars with a market share of about
16%. Commercial vehicles and three wheelers share about 9% of the market between them.
About 91% of the vehicles sold are used by households and only about 9% for commercial
purposes. The industry has attained a turnover of more than USD 35 billion and provides
direct and indirect employment to over 13 million people.
The level of technology change in the Motor vehicle Industry has been high but, the rate
of change in technology has been medium. Investment in the technology by the producers has
been high. System-suppliers of integrated components and sub-systems have become the order
of the day. However, further investment in new technologies will help the industry be more
competitive. Over the past few years, the industry has been volatile. Currently, Indias
increasing per capita disposable income which is expected to rise by 106% by 2015 and
growth in exports is playing a major role in the rise and competitiveness of the industry.
Tata Motors is leading the commercial vehicle segment with a market share of about
64%. Maruti Suzuki is leading the passenger vehicle segment with a market share of 46%.
Hyundai Motor India and Mahindra and Mahindra are focusing expanding their footprint in
EXECUTIVE SUMMARY

7
the overseas market. Hero Honda Motors is occupying over 41% and sharing 26% of the two
wheeler market in India with Bajaj Auto. Bajaj Auto in itself is occupying about 58% of the
three wheeler market.
Consumers are very important of the survival of the Motor Vehicle manufacturing
industry. In 2008-09, customer sentiment dropped, which burned on the augmentation in
demand of cars. Steel is the major input used by manufacturers and the rise in price of steel is
putting a cost pressure on manufacturers and cost is getting transferred to the end consumer.
The price of oil and petrol affect the driving habits of consumers and the type of car they buy.
The key to success in the industry is to improve labour productivity, labour flexibility,
and capital efficiency. Having quality manpower, infrastructure improvements, and raw
material availability also play a major role. Access to latest and most efficient technology and
techniques will bring competitive advantage to the major players. Utilizing manufacturing
plants to optimum level and understanding implications from the government policies are the
essentials in the Automotive Industry of India.
Both, Industry and Indian Government are obligated to intervene the Indian Automotive
industry. The Indian government should facilitate infrastructure creation, create favorable and
predictable business environment, attract investment and promote research and development.
The role of Industry will primarily be in designing and manufacturing products of world-class
quality establishing cost competitiveness and improving productivity in labour and in capital.
With a combined effort, the Indian Automotive industry will emerge as the destination of
choice in the world for design and manufacturing of automobiles.

8

Table of Contents
1.RESEARCH METHODOLOGY ............................................................................................................................................ 10
1.1 RESEARCH OBJECTIVE ............................................................................................................................................... 11
1.2 SCOPE OF STUDY ...................................................................................................................................................... 11
1.3 DATA COLLECTION. 12
1.3.1 Primary Data..12
1.3.2 Secondary Data12
1.4 SAMPLING DESIGN. 12
1.4.1Limitation..14
1..4.2litrature review15
2.INDUSTRY PROFILE OF AUTOMOBILE INDUSTRY ........................................................................................................... 18
2.1 INTRODUCTION ........................................................................................................................................................ 20
2.2 GROWTH .................................................................................................................................................................. 22
2.3 HISTORY OF AUTOMOBILE INDUSTRY23
2.4 OVERVIEW AN INDIAN AUTOMOBILE INDUSTRY. 26
2.5 KEY PLAYERS28
2.6 AUTOMOBILE KEY PLAYERS IN INDIA.29
2.6.1 Maruti Suzuki..29
2.6.2 Tata Motors.31
2.6.3 Hyundai Motors India.....33
2.6.4 Mahindra & Mahindra.34
2.6.5 Honda Siel Car India .36
2.6.6 Toyota ...38
2.6.7 Ford India .39
2.6.8 General Motors ......40

9
2.6.9 Hindustan Motors ..41
2.6.10 Skoda Auto India ..43
2.6.11 Force Motors ....44
2.6.12 Fiat India Automobile ........45
2.7 SUPPLY CHAIN ...47
2.8 POTENTIAL OF INDIAN AUTOMOBILE INDUSTRY ..48
2.9 SEGMENTATION ...49
2.9.1 Product and service Segmentation ...50
2.9.2 Major Market Segmentation .51
2.9.3 Geographical Segmentation ...52
2.9.4 Export and domestic ....53
3. INDUSTRY ANALYSIS ..55
3.1 SWOT Analysis ..56
3.2 PEST Analysis .58
3.3 Porter Five Force Analysis .61
4. MICRO LEVEL ANALYSIS 65
5. KEY FINDING .98
6. RECOMMENDATION OR SUGGESTION 101
7. CONCLUSION .103
BIBLIOGRAPHY .105
ANNEXURE ..106

10

11
RESEARCH METHODOLOGY

Research objective
Objectives

Find out factor affecting purchase of four wheelers in automobile
industry
My research objective understands what are the factor affecting the purchase of four
wheelers in Gujarat region. So purpose of this research is to know the factor affecting
the purchase of four wheelers in particular in city Rajkot.

Scope of study
The Research study conducted herewith is restricted to the market of Rajkot and Rajkot
only.
This research project is part of my study. I learned lot of during this research work so
this is one of best advantage for me and this opportunity is given by our institute. This research
is importance for other who is connected with automobile sectors because of this report they
will know about consumer behavior, consumer perception about particular product.

Improved consumer insight into vehicle shopping and buying behavior can provide that
valuable advantage. Capgeminis Cars Online report contains insight that can help vehicle
manufacturers and dealers develop and execute more effective strategies in areas such as sales,
marketing and advertising, after sales service, Customer Relationship Management (CRM) and
manufacturer/dealer collaboration.

12
Data collection
(A) Primary data:
I collect primary data from some people who are living in Rajkot I went and
meet them personally and I mail some of my friend and ask about which factor
affect when they want to buy car.
Primary data was collected personally through structured questionnaire.
Data collection method- Personal interview with a questionnaire containing
some open and close ended questions

(B) Secondary data:
Secondary data is very help full to industry analysis if you want to know about
what happened in industry like growth, statistical data so that secondary data
is very useful.
Secondary data was collected from various sources such as journals,
magazines, websites, books

Sampling design
In our project research we made qualitative method of sampling to reach the
behaviouristic aspects of the customers. We here select the target customer for the project with
the help of convenience sampling which helps us in making exact approach of the consumer
behaviour for the same.
Sample size of the project-100
Research type- Primary analytical research

13

Limitations

It was not possible for us to make a survey from whole cities. Those respondents are
taken who are convenient to reach.
Sample size taken is small to cover this vast topic.

Coverage of study- Rajkot

14

15
CONCEPTUALISATION OF MODEL FOR STUDYING CONSUMER
PURCHASE BEHAVIOUR OF PASSENGER CARS
ABSTRACT:
Automobile Industry in India is influenced by the presence of national and multi-
national manufacturers. The presence of many manufacturers and brands in the state
provides many choices to the customer. The current market for car manufacturers has
been transformed from a monopoly of one or two manufacturers in the seventies to
oligopoly of many manufacturers in the current marketing scenario. The main objective
of the research paper is to explore and conceptualize various parameters and develop a
model, which influence the purchase patterns of passenger cars in the State of Kerala.
Thus, the main purpose of this paper is to come up with a model, which shall facilitate
further study on the consumer purchase behaviour patterns of passenger car owners in
the State of Kerala, India. The author intends to undertake further quantitative analysis
to verify and validate the model so developed. The main methods used for this paper are
secondary research on available material, depth interview of car dealers, car financing
agencies and car owners in the city of Cochin, in Kerala State in India. The depth
interviews were conducted with the use of prepared questionnaire for car dealers, car
customers and car financing agencies. The findings resulted in the identification of the
parameters that influence the consumer purchase behaviour of passenger cars and the
formulation of the model, which will be the basis for the further research of the author.
The paper will be of tremendous value to the existing and new car manufacturers both
indigenous and foreign, to formalize and strategies their policies towards an effective
marketing strategy, so as to market their models in the State, which is known for its high
literacy, consumerism and higher educational penetration.

Key Words: Consumer Behaviour Patterns, Customer Loyalty, External Influence,
Brand Community, Family Influence, Customer Satisfaction

16
CONSUMER PERCEPTION OF GLOBAL VS. LOCAL
BRANDS:
THE INDIAN CAR INDUSTRY
ABSTRACT:

This study examines consumer perception of global brands vs. local brands in the
Indian car industry. Consumer brand perceptions have substantial implications in
Marketing. The study explores and understands consumer perceptions of global and
local car brands in India by accomplishing the secondary objectives. The secondary
objectives were achieved by highlighting the factors that effect consumer preference for
global brands; by examining the effects of country of origin on consumer perceptions of
global brands and local brands; and by studying the effects of consumer ethnocentrism
towards global brands. For creating a deep understanding of consumers insights of
global car brands against local car brands, qualitative approach was adopted with an in-
depth and semi- structured interview process. Interviews as a qualitative tool helped the
researcher to uncover individuals covert feelings and emotions towards perception of
global brands vs. local brands. The findings of the study advised that the consumers
who possessed global car brands, preferred their car brands due to factors such as global
presence, worldwide reputation, and quality of being a foreign make. Prestige or status
had a very little or no influence in their preference for global car brands. Consumers
made favorable Consumer Perception of Global vs. Local Brands: The Indian Car
Industry .

Key words: Consumer Perception, Global brands, Local brands, consumer
preference, Country-of-origin, foreign brand, globalness, Consumer
ethnocentrism.

17

ECONOMIC PERFORMANCE OF INDIAN AUTOMOBILE
INDUSTRY: AN ECONOMETRIC APPRAISAL
ABSTRACT:
Indian automobile industry embarked on a new journey in 1991 with delicensing of the
sector and subsequent opening up for 100 percent FDI through automatic route. In view of
this, the study attempts to estimate the economic performance of Indian automobile industry in
terms of capacity utilization at an aggregate level. It estimates econometrically rate of capacity
utilization in the industry at aggregate level and analyses its trend during the post liberalization
period, 1991-92 to2005-06.The study also tries to assess the impact of various factors
influencing capacity utilization. In this paper, optimal output is defined as the minimum point
on the firms short run average total cost curve and the rate of capacity utilization is merely
ratio of its actual output to capacity output level. We use an econometric model to determine
the optimal capacity output. Our result shows that capacity utilization has been improved after
the path breaking economic reforms initiated in 1991 at the rate of around 5 percent per annum
but capacity grows more rapidly than output growth. In view of identifying several factors that
influence capacity utilization, result suggests that coefficient of export-intensity variable,
import penetration ratio are negative which indicate that capacity utilization was relatively
lower in firms belonging to industry characterized by high export-intensity and import
penetration. A positive relationship is found between size and capacity utilization and
similarly between market share and capacity utilization.

Key word: Liberalization, Capacity Utilization, Automobile, Industry.

18

19

Industry Definition
This class consists of units mainly engaged in manufacturing motor vehicles or motor vehicle
engines.
Products and Services
The primary activities of this industry are:
1. Motor cars manufacturing
2. Motor vehicle engine manufacturing
The major products and services in this industry are:
Passenger motor vehicle manufacturing segment (Passenger Cars, Utility Vehicles &
Multi Purpose Vehicles)
Commercial Vehicles (Medium & Heavy and Light Commercial Vehicles)
Two Wheelers
Three Wheelers
The data obtained from ministry of commerce and industry, shows high growth obtained
since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05.
Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was
15.1 per cent the automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of
the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-
component sector, the automotive industry's turnover, which was above Rs. 84,000 crore in
2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
If I tell you about dealers model in India In terms of Car dealer networks and authorized
service stations, Maruti leads the pack with Dealer networks and workshops across the
country. The other leading automobile manufacturers are also trying to cope up and are
opening their service stations and dealer workshops in all the metros and major cities of the
Introduction

20
country. Dealers offer varying kind of discount of finances who in turn pass it on to the
customers in the form of reduced interest rates.
THE KEY FACTORS BEHIND THIS UPSWING
The risk of an increase in the interest rates, the impact of delayed monsoons on rural
demand, and increase in the costs of inputs such as steel are the key concerns for the
players in the industry.
The ability of the players to contain costs and focus on exports will be critical for the
performance of their respective companies.

21

The auto component sector has also posted significant growth of 20 per cent in 2003-04,
to achieve a sales turnover of Rs.30, 640 crore (US$ 6.7 billion).
Opposing the belief that the growth in automobile industry has catered only to the top
income-stratum of society, Growth of exports of 32.8 % in the first three quarters of
2004-05, the fastest growth in volumes has come from commercial vehicles as against
passenger cars.
1998-99 and 2003-04, output of commercial vehicles has grown 2.8 times compared to
the 2.2 times increase in passenger cars. Furthermore, two-wheeler output continues to
dominate the volume statistics of the sector.
In 2003-04, for every passenger car turned out by the sector, there were 7 two-wheelers
produced.
In the two wheeler segment, there is a greater preference for motorcycles followed by
scooters, with both production and domestic sales of motorcycles increasing at faster
rates than for scooters in the current and previous years.
This report study is designed to give automotive companies information that can help them
get a better grasp on changing consumer trends, shopping patterns and demands. Interestingly,
we found significant commonalities among responses across the more mature markets, with
differences still quite apparent in the emerging Chinese automotive market. This report
highlights these results, as well as country-specific differences. The executive summary
provides an overview of key findings from the study, and the sections that follow offer more
in-depth data and analysis on consumer behavior, environmental issues, web usage, lead
management and customer loyalty. The automotive world today is changing; consumers are
changing. And the speed of change is continuing to accelerate.

Growth

22

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the first
automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time. Oliver Evans was the first to design a steam engine
driven automobile in the U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between 1832 and
1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson were
amongst the first to invent more applicable automobiles, making use of non-rechargeable
electric batteries in 1842. Development of roads made travelling comfortable and as a result,
the short ranged, electric battery driven automobiles were no more the best option for
travelling over longer distances.

Charles Kettering's invention of the electric starter in 1912 turned the process of starting
automobiles faster and easier at the same time, doing away with the hand tools. Crude oil
being discovered in Texas, the automobiles driven by engines that ran on gasoline became
HISTORY OF AUTOMOBILE INDUSTRY

23
even more affordable, as the prices of gasoline reduced. The prices of electric automobiles
were going through a constant rise, in spite of the fact that these were less efficient than the
gasoline automobiles.

Jean Joseph Etienne Lenoir was the first to invent an internal combustion engine that
ran on petroleum and attached it to a three-wheeled carriage, and successfully traversed a
distance of fifty miles in 1863.

Karl Benz manufactured the first automobile ( a three-wheeled car) that was affordable
and compatible for travelling over long distances for its internal combustion engine that ran on
gas, in 1886.Later in 1887, Gottlieb Daimler was the first to invent the predecessor of the
modern automobile with an engine that had a vertical cylinder in addition to a gasoline driven
carburetor. First building a two-wheeled automobile (Reitwagen). Daimler was again the
first to build a four-wheeled automobile in 1886. The engines manufactured by Daimler were
improved upon and these portable and fast engines made automobiles the way we see them
today.

24
The advanced engines turned the slow, expensive automobiles of the yesteryears, a thing of the
past, and cars became more affordable as both the prices of gasoline and petroleum as well as
the manufacturing costs reduced through their mass manufacture at the assembly lines of
factories. Penhard and Levassor in 1889, and Peugeot in 1991 became the earliest mass
manufacturers of the modern automobiles.

25

Starting its journey from the day when the first car rolled on the streets of Mumbai in
1898, the Indian automobile industry has demonstrated a phenomenal growth to this day.
Today, the Indian automobile industry presents a galaxy of varieties and models meeting all
possible expectations and globally established industry standards. Some of the leading names
echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and
Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of
others.
During the early stages of its development, Indian automobile industry heavily
depended on foreign technologies. However, over the years, the manufacturers in India have
started using their own technology evolved in the native soil. The thriving market place in the
country has attracted a number of automobile manufacturers including some of the reputed
global leaders to set their foot in the soil looking forward to enhance their profile and
prospects to new heights. Following a temporary setback on account of the global economic
recession, the Indian automobile market has once again picked up a remarkable momentum
witnessing a buoyant sale for the first time in its history in the month of September 2009.
The automobile sector of India is the seventh largest in the world. In a year, the country
manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual
production of about 73 million cars in a year. The country is the largest manufacturer of
motorcycles and the fifth largest producer of commercial vehicles. Industry experts have
visualized an unbelievably huge increase in these figures over the immediate future. The
figures published by the Asia Economic Institute indicate that the Indian automobile sector is
set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest
exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the
Overview of Indian Automobile industry

26
year 2050, India will top the car volumes of all the nations of the world with about 611 million
cars running on its roads.
At present, about 75 percent of Indias automobile industry is made up by small cars,
with the figure ranking the nation on top of any other country on the globe. Over the next two
or three years, the country is expecting the arrival of more than a dozen new brands making
compact car models.
Recently, the automotive giants of India including General Motors (GM), Volkswagen,
Honda, and Hyundai, have declared significant expansion plans. On account of its huge market
potential, a very low base of car ownership in the country estimated at about 25 per 1,000
people, and a rapidly surging economy, the nation is firmly set on its way to become an
outsourcing platform for a number of global auto companies. Some of the upcoming cars in
the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo
(Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition
to several others.

27

Key players
New Hub:
Uttaranchal WEST
North
East
South

28

Automobile key players in
India

1. Maruti Suzuki India
Market Share: Passenger Vehicles 46.07%
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market.
The company offers a complete range of cars from entry level Maruti-800 and Alto, to
stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports
Utility vehicle Grand Vitara.
Since inception in 1983, Maruti Suzuki India has produced and sold over 7.5 million
vehicles in India and exported over 500,000 units to Europe and other countries.
The companys revenue for the fiscal 2008-2009 stood over USD 4 billion and Profits after
Tax at over USD 243 million

All cars models of Tata Motors in India

Maruti Suzuki A Star
Price Range:3.60 to 4.38
lakh
Maruti Suzuki Eeco
Price Range: 2.82 to 3.80
lakh
Maruti Suzuki Estilo
lakh
Maruti Suzuki Grand
Vitara
Price Range: 16.94 to
18.27 lakh

29

Maruti Suzuki Gypsy
lakh

Maruti Suzuki Alto
lakh

Maruti Suzuki Kizashi
17.50 lakh

Maruti Suzuki New
Swift
lakh

Maruti Suzuki
Omni
Price Range: 2.05
to 3.28 lakh

Maruti Suzuki
swift
Price Range: 4.95
to 7.30 lakh

Maruti Suzuki
Ritz
Price Range: 4.03
to 5.47 lakh

Maruti Suzuki
SX4
Price Range: 7.00
to 9.01 lakh

Maruti Suzuki
Wagon R
Price Range: 3.36
to 4.21 lakh

30
2. Tata motors

Market Share: Commercial Vehicles 63.94%, Passenger
Vehicles 16.45%
Tata Motors Limited is Indias largest automobile
company, with consolidated revenues of USD 14 billion
in 2008-09. It is the leader in commercial vehicles and
among the top three in passenger vehicles.
Tata Motors has winning products in the compact, midsize car and utility vehicle segments.
The company is the world's fourth largest truck manufacturer, and the world's second
largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata
Motors as has produced and sold over 4 million vehicles in India.
Tata Motors is the first company from India's engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international automobile
company.
Through subsidiaries and associate companies, Tata Motors has operations in the United
Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two British brands which was acquired in 2008.
In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea's second
largest truck maker. The rechristened Tata Daewoo Commercial Vehicles Company has
launched several new products in the Korean market, while also exporting these products to
several international markets.
Today two-thirds of heavy commercial vehicle exports out of South Korea are from Tata
Daewoo. In 2005, Tata Motors acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently the remaining stake in 2009.
In 2006, Tata Motors formed a joint venture with the Brazil-based Marco polo, a global
leader in body-building for buses and coaches to manufacture fully-built buses and coaches
for India and select international markets.

31
In 2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company's pickup vehicles in
Thailand.
The new plant of Tata Motors (Thailand) has begun production of the Xenon pickup truck,
with the Xenon having been launched in Thailand in 2008.
Tata Motors is also expanding its international footprint by franchises and joint ventures
assembly operations in Kenya, Bangladesh, Ukraine, Russia, Senegal and South Africa.
With over 3,000 engineers and scientists, the company's Engineering Research Centre,
established in 1966, has enabled pioneering technologies and products.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development
which signifies a first for the global automobile industry. Nano brings the comfort and
safety of a car within the reach of thousands of families. The standard version has been
priced at USD 2,200 or Rs.100, 000 (excluding VAT and transportation cost). The Tata
Nano has been subsequently launched as planned, in India in March 2009.
All cars models of Tata Motors in India

Tata Motors Aria
Price Range: 11.58
to 16.13 lakh

Tata Motors
Indica
Price Range: 3.33
to 3.33 lakh

Tata Motors
Indica eV2
Price Range: 2.99
to 5.04 lakh

Tata Motors
Indica Vista
Price Range: 3.88
to 6.11 lakh

Tata Motors
Indigo Manza
Price Range: 5.44
to 7.73 lakh

Tata Motors
Indigo XL
Price Range: 5.57
to 6.74 lakh
Tata Motors
Xenon
Price Range: 9.13
to 10.11 lakh
Tata Motors Sumo
Grande
Price Range: 7.30
to 8.39 lakh
Tata Motors New
Indigo eCS
Price Range: 4.54
to 5.89 lakh
Tata Motors
Safari
Price Range:8.19 to
12.56 lakh

32

3. Hyundai motors India
Market Share: Passenger Vehicles 14.15%
Hyundai Motor India Limited is a wholly owned
subsidiary of worlds fifth largest automobile
company, Hyundai Motor Company, South Korea,
and is the largest passenger car exporter.
Hyundai Motor presently markets 49 variants of passenger cars across segments. These
includes the Santro in the B segment, the i10, the premium hatchback i20 in the B+
segment, the Accent and the Verna in the C segment, the Sonata Transform in the E
segment.
Hyundai Motor, continuing its tradition of being the fastest growing passenger car
manufacturer, registered total sales of 559,880 vehicles in the year 2009, an increase of
14.4% over 2008.
In the domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863
units, while overseas sales grew by 10.7%, with export of 270,017 units. Hyundai Motor
currently exports cars to more than 110 countries across European Union, Africa,
Middle East, Latin America and Asia. It has been the number one exporter of passenger
car of the country for the sixth year in a row.
In a little over a decade since Hyundai has been present in India, it has become the
leading exporter of passenger cars with a market share of 66% of the total exports of

33
passenger cars from India, making it a significant contributor to the Indian automobile
industry.
In 2009, in spite of a global slowdown, Hyundai Motor Indias exports grew by 10.7%.
In 2010 Hyundai plans to add 10 new markets with Australia being the latest entrant to
the list. The first shipment to Australia is of 500 units of the i20 and the total i20 exports
to Australia are expected to be in the region of 15,000 per annum.

All cars models of Hyundai in India

Hyundai Accent
5.03 lakh

Hyundai EON
3.72 lakh

Hyundai i10
5.96 lakh

Hyundai i20
7.60 lakh

Hyundai Santa Fe
24.37 lakh

Hyundai Verna
10.90 lakh

Hyundai Sonata
17.15 lakh

Hyundai Santro Xing
3.92 lakh

4. Mahindra & Mahindra

34
Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three
Wheelers 1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three
Wheeler segments directly. The company competes in the Light Commercial Vehicle
segment through its joint venture subsidiary Mahindra Navistar Automotives Limited
and in the passenger car segment through another joint venture subsidiary Mahindra
Renault.
In the year 2009, on the domestic sales front, the Company along with its subsidiaries
sold a total of 220,213 vehicles (including 44,533 three wheelers, 8,603 Light
Commercial Vehicles through Mahindra Navistar Automotives and 13,423 cars through
Mahindra Renault), recording a growth of 0.6% over the previous year.
The companys domestic Multi Utility Vehicle sales volumes increased by 3.3%, as
against a decline of 7.4% for industry Multi Utility Vehicle sales.
A record number of 153,653 Multi Utility Vehicles were sold in the domestic market in
2009 compared to 148,761 MUVs in the previous year. Hence, Mahindra & Mahindra
further strengthened its domination of the domestic Multi Utility Vehicle sub-segment
during the year, increasing its market share to 57.2% over the previous years market
share of 51.3%.
Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the
Xylo was launched in South Africa. The company formed a new joint venture Mahindra
Automotive Australia Pty. Limited, to focus on the Australian Market.
(Source: Mahindra & Mahindra Annual Report)
All cars models of Mahindra in India

Mahindra New Bolero
Price Range: 6.28 to 6.91 lakh
Mahindra Scorpio
Mahindra Thar

35

Mahindra Xylo

Mahindra Verito

Mahindra XUV 500

5. Honda siel car India

Honda Siel Cars India Ltd., (HSCI) was incorporated
in December 1995 as a joint venture between Honda
Motor Co. Ltd., Japan and Siel Limited, a Siddhartha
Shriram Group company, with a commitment to
providing Hondas latest passenger car
models and technologies, to the Indian
customers.
The total investment made by the
company in India till date is Rs 1620
crores in Greater Noida plant and Rs
784 crores in Tapukara plant.
HSCIs first state-of-the-art manufacturing unit was set up at Greater Noida, U.P in 1997.
The green-field project is spread across 150 acres of land (over 6, 00,000 sq. m.).

36
The annual capacity of this facility is 100,000 units. The companys second manufacturing
facility is in Tapukara, Rajasthan.
This facility is spread over 600 acres and will have an initial production capacity of 60,000
units per annum, with an investment of about Rs 1,000 crore. The first phase of this facility
was inaugurated in September 2008.
The companys product range includes Honda Brio, Honda Jazz, Honda City, Honda Civic
and Honda Accord which are produced at the Greater Noida facility with an indigenization
level of 80%, 77%, 76%, 74% and 28% respectively.
The CR-V is imported from Japan as Completely Built Units. Hondas models are strongly
associated with advanced design and technology, apart from its established qualities of
durability, reliability and fuel-efficiency.

All cars models of Honda in India

Honda Accord

Honda Brio

Honda Civic

Honda CR V

Honda Jazz

Honda New City

37

6. Toyota

Towards the end of the nineteenth century, Sakichi Toyoda
invented Japan's first power loom, revolutionizing the
country's textile industry.
January 1918 saw him create the Toyoda Spinning and
Weaving Company, and with the help of his son, Kiichiro Toyoda, Sakichi fulfilled his
lifelong dream of building an automatic loom in 1924.
The establishment of Toyoda Automatic Loom Works followed in 1926. Kiichiro was also
an innovator, and visits he made to Europe and the USA in the 1920s introduced him to the
automotive industry. With the 100,000 that Sakichi Toyoda received for selling the patent
rights of his automatic loom, Kiichiro laid the foundations of Toyota Motor Corporation,
which was established in 1937. One of the greatest legacies left by Kiichiro Toyoda, apart
from TMC itself, is the Toyota Production System.
Kiichiro's "just- in-time" philosophy - producing only precise quantities of already ordered
items with the absolute minimum of waste - was a key factor in the system's development.
Progressively, the Toyota Production System began to be adopted by the automotive
industry across the world. Rising from the ashes of industrial upheaval in post-war Japan,
Toyota has become the largest vehicle manufacturer in Japan with over 40% market share.
Toyota is number one for customer satisfaction in the majority of European countries and
has built an excellent reputation across Europe for reliability and customer service.
This enviable reputation, along with the support of a network of more than 25 distributors
and 3,500 sales outlets, are important factors in supporting Toyota's European sales growth
in the coming years.

38
All cars models of Toyota in India

Toyota Camry
23.73 lakh

Toyota Corolla Altis
14.83 lakh

Toyota Etios
7.87 lakh

Toyota Fortuner
20.15 lakh

Toyota Innova
12.81 lakh

Toyota Prado
53.28 lakh

Toyota Liva
5.99 lakh

Toyota Land Cruiser
87.58 lakh

7. Ford India

The modern Ford India Private Limited

began production in 1996, although the
roots trace back to 1907 when the Model
A was launched.

Its manufacturing facilities are in

Maraimalai Nagar near Chennai. Ford India Private Limited began production in 1926, but
was shut down in 1954.

Production began again with the joint venture Mahindra Ford India Limited (MFIL) in
October 1995, a 50-50 venture with Mahindra & Mahindra Limited. Ford Motor Company

39
increased its interest to 72% in March 1998 and renamed the company Ford India Private
Limited.

FIPL's main manufacturing plant has a capacity of 100,000 vehicles annually and is located
in Maraimalai Nagar, 45 km from Chennai. As its new hatchback Figo was launched in
March 2010, Ford Motor Company has invested $500 million to double capacity of the
plant to 200,000 vehicles annually and setting up a facility to make 250,000 engines
annually.

All cars models of Ford in India

Ford Endeavour
19.73 lakh

Ford Fiesta
10.44 lakh

Ford Fiesta Classic
lakh

Ford Figo
lakh

8. General motors

General Motors began doing business in India in 1928,
assembling Chevrolet cars, trucks and buses, but ceased its
assembly operations in 1954. GM continued with tie-ups with
Hindustan Motors to build Bedford trucks, Vauxhall cars, Allison Transmissions and off-road
equipment.

40
In 1994 GMIPL was formed as a joint venture, owned 50 percent by Hindustan Motors and
50 percent by General Motors, to produce and sell Opel branded vehicles. GM bought out the
Hindustan Motors interest in 1999.
[1][2]
GMIPL continued to produce Opel cars at the Halol
facility until 2003, when it started production of Chevrolet vehicles at that location.
In 2000, GMIPL moved its headquarters to Gurgaon. In 2003, the company opened its
technical center operations in Bangalore, which included research and development and
vehicle engineering activities. The technical center operations were expanded to include
purchasing and financial support services for General Motors operations located outside of
India (2006), vehicle engine and transmission design and engineering (2007) and a vehicle
design studio (2007).
GMIPL began construction of a second vehicle assembly plant in Talagaon in 2006, which
began production of Chevrolet vehicles in September 2008.
In late 2009, General Motors announced that it would put its India operation into a 50-50
venture with Shanghai Automotive Industry Corporation of China, which is the partner of
GM's main venture in China.
BRAND NAME
1. Chevrolet Optra (Launched 2003)
2. Chevrolet Tavera (Launched 2004)
3. Chevrolet Aveo (Launched 2006)
4. Chevrolet Aveo U-VA (Launched 2006)
5. Chevrolet Spark (Launched 2007)
6. Chevrolet Captiva (Launched 2008)
7. Chevrolet Cruze (Launched 2009)
8. Chevrolet Beat (Launched 2010)

41
9. Hindustan motors

Hindustan Motors Limited, the flagship venture of the multi-billion-dollar CK Birla Group,
was established during the pre-Independence era at Port Okha in Gujarat.
Operations were moved in 1948 to Uttarpara in district Hooghly, West Bengal, where the
company began the production of the iconic Ambassador.
Equipped with integrated facilities such as press shop, forge shop, foundry, machine shop,
aggregate assembly units for engines, axles etc and a strong R&D wing, the company
currently manufactures the Ambassador (1500 and 2000 cc diesel, 1800 cc petrol, CNG and
LPG variants) in the passenger car segment and
light commercial vehicle 1-tonne payload mini-truck
HM-Shifeng Winner (1500 cc diesel) at its
Uttarpara plant.
The first and only integrated automobile plant
in India, the Uttarpara factory, popularly known as
Hind Motor, also manufactures automotive
and forged components.
The armoring division under Hindustan Motors Finance Corporation Ltd., a fully owned
subsidiary of HM, is also based out of the Uttarpara plant. It is one of the leading bullet-
proof fabricators for Ambassador Cars and Mitsubishi Pajero.
The company also has operations in Pithampur near Indore in Madhya Pradesh where it
produces 1800 cc CNG variant of Winner. Hindustan Motors has technical
collaboration with Mitsubishi Motors Corporation of Japan and, under this
license, produces premium passenger cars viz. Lancer, Pajero, Cedia,
Montero, Outlander and Lancer Evolution X (Evo X) at its third plant situated at Tiruvallur
near Chennai in Tamil Nadu.
Cars models of Hindustan Motors in India

Hindustan Motors Ambassador

42

10. Skoda auto India

Skoda Auto India Private Limited, more commonly
referred to as Skoda Auto India, established November
2001,is a fully owned subsidiary of the Czech automotive
manufacturer Skoda Auto and a division of Volkswagen
Group Sales India.
According to an official release, Skoda Auto India sold more than 16,000 units in 2008, a
28.5% increase from 2007 sales totals. Furthermore, SAIPL is aiming to become the
strategic hub in South and Eastern Asian markets for the Skoda Auto marque, by exporting
its locally produced products to Nepal, Sri Lanka and Thailand. As of April 2009, it has
sold over 61,000 units since operations began in November 2001.
Skoda Auto India Private Limited has its manufacturing plant located at Shendra on the
outskirts of Aurangabad which has an annual capacity of 40,000 vehicles. This Aurangabad

43
plant is also shared by Audi India to manufacture the Audi A4 and Audi A6 models. It also
uses the Volkswagen India Private Limited plant at Chakan, Maharashtra to manufacture

the Skoda Fabia.
All cars models of Skoda in India

Skoda Fabia
Price Range: 4.44
to 6.83 lakh

Skoda Rapid
Price Range: 6.75
to 9.19 lakh

Skoda Superb
Price Range: 18.65
to 26.94 lakh

Skoda Yeti
Price Range:13.46
to 16.89 lakh

Skoda Laura
Price Range: 13.62
to 18.24 lakh

11. Force motors
Force Motors is an Indian manufacturer of three
wheelers, multi-utility and cross country vehicles,
light commercial vehicles, tractors, buses and now
heavy commercial vehicles. It was originally named
Firodia Tempo Ltd. and later after partial acquisition
by Bajaj Auto as Bajaj Tempo Ltd.
The company was founded in 1958 by N.K.Firodia. Abhay N. Firodia is the Chairman and
Prasan Firodia is Managing Director.

44
Force Motors started production of the Hanseat three-wheeler in collaboration with German
Vidal & Sohn Tempo Werke and went on to establish a presence in the light commercial
vehicles field with the Matador, the proverbial LCV (light commercial vehicle) in India.
Through the 1980s and 1990s, and especially in the last five years with a major product
development effort, Force Motors has introduced new light commercial vehicles, a face
lifted series of Tempo Trax utility vehicles, new state-of-the-art tractors, and a new range
of three-wheelers.
The company which mainly operates in commercial vehicle segment entered into Personal
Vehicle segment on 19/08/2013 and launched its first SUV named Force-One. Amitabh
Bachhan , the Indian film industry icon, is the Brand Ambassador for this product.

Cars models of Force Motors in India
Force Motors Force One

12. Fiat India automobile

Fiat India Automobiles Limited is a 50-50
Industrial Joint Venture between Fiat Group
Automobiles (Fiat) and Tata Motors Limited
(Tata) originally incorporated on January 02,
1997. The company presently employs about

45
600 employees and is located at Ranjangaon in the Pune District of Maharashtra.
The definitive agreement of the Joint Venture was signed on October 19th 2007. The board
of directors for this company comprises of five nominees each from Fiat and Tata.
The state-of -the-art facility at Ranjangaon will have an installed capacity to produce
100,000 cars and 200,000 engines, besides aggregates and components. The company plans
to double the production capacity for both car units and engines in the next few years.
This facility is currently manufacturing the Palio Stile 1.1 and 1.6 models, as well as
premium Fiat cars such as the Grande Punto and Linea.
The plant is expected to provide direct and indirect employment to more than 4,000 people
Fiat, which holds a 50% stake in the Company, also owns and controls five internationally
renowned brands:- Fiat Automobiles, Alfa Romeo Automobiles, Lancia Automobiles,
Abarth and Fiat Light Commercial Vehicles, the makers of renowned cars such as the
Ferrari, Maserati, Alfa Romeo and Lancia besides the Fiat branded cars.
Tata Motors Limited, the other partner to the Joint Venture, is the largest automobile
company in India, with revenues of Rs. 32,426 crores (USD 7.2 billion) in 2006-07. It is
the leader in commercial vehicles in every segment and the second largest in the passenger
vehicles market with winning products in the compact, mid-size car and utility vehicle
segments.
The company is the worlds fifth largest medium and heavy commercial vehicle
manufacturer and the worlds second largest medium and heavy bus manufacturer

All cars models of Fiat in India

Fiat 500
Price Range:14.83 to 14.83 lakh

Fiat Grande Punto

Fiat Linea

46

Supply Chain of Automobile Industry:
The supply chain of this industry in India is very similar to the supply chain of the
automotive industry in Europe and America. This may present its own set of opportunities and
threats. The orders of the industry arise from the bottom of the supply chain i. e., from the
consumers and go through the automakers and climbs up until the third tier suppliers.
However the products, as channeled in every traditional automotive industry, flow from the
top of the supply chain to reach the consumers.

Supply Chain

47

There is a very stiff competition in the automobile industry segment in India. This has
helped many to realize their dreams of driving the most luxurious cars. During the recent past,
a number of overseas companies have started grabbing a big chunk of the market share in both
domestic and export sales. Every new day dawns in India with some new launches by active
players in the Indian automobile arena. By introducing some low cost cars, the industry had
made it possible for common men to buy cars for their personal use. With some innovative
strategies and by adopting some alternative remedial measures, the Indian automobile industry
has successfully come unaffected out of the global financial crisis.
Potential of Indian automobile industry

48
While the automobile industry in India is the ninth largest in the world, the country
emerged as the fourth largest automobiles exporter on the globe following Japan, South Korea
and Thailand, in the year 2009. Over and above, a number of automobile manufacturers based
in India have expanded their operations around the globe also giving way for a number of
reputed MNCs to enthusiastically invest in the Indian automobile sector.
Nissan Motors has revealed its prospective plans to export 250,000 vehicles produced in
its India plant by the year 2013. General Motors has also come up with similar plans.
During the current fiscal year, the Indian automobile industry rode high on the
resurgence of consumer demand in the country as a result of the Governments fiscal stimulus
and attractively low interest rates. As a result the total turnover of the domestic automobile
industry increased by about 27 per cent.
A reply produced in the Lok Sabha recently has quoted data from the Society of Indian
Automobile Manufacturers and has revealed that the total turnover of the Indian automobile
Industry in April-February 2009-10 was 1,62,708.77 crore.
This is a remarkable achievement compared with the total revenue of Rs 1, 28,384.53
crore reported during the same period of last fiscal year. Specifically, the segment of
commercial vehicles witnessed the biggest jump in revenues by 31 per cent by reporting Rs
38,845.09 crore. During the same period, the passenger vehicle segment in the country
witnessed a growth of 27 per cent over the last fiscal year by reporting total revenue of Rs
76,545.96 crores. These figures imply a highly prospective road lying immediately ahead of
the Indian automobile industry.
Predictions made by Ernst and Young have estimated that the Indian passenger car
market will have a growth rate of about 12 percent per annum over the next five years to reach
the production of 3.75 million units by the year 2014. The analysts have further stated that the
industrys turnover will touch $155 billion by 2016. This achievement will succeed in

49
consolidating Indias position as the seventh largest automobiles manufacturer on the globe,
eventually surging forth to become the third largest by the year 2030 behind China and the US.
The Automotive Mission Plan launched by the Indian government has envisaged that
the country will emerge as the seventh largest car maker on the globe thereby contributing
more than 10 percent to the nations $1.2-trillion economy.
Further, industry experts believe that the nation will soon establish its stand as an
automobile hub exporting about 2.75 million units and selling about a million units to be
operated on the domestic roads.

(A) PRODUCT AND SERVICE SEGMENTATION

Segmentation

50

Source: Society of Indian Automotive Manufacturing (SIAM)

75% of the vehicles sold are two wheelers. Nearly 59% of these two wheelers sold
were motorcycles and about 12% were scoters. Mopeds occupy a small portion in the
two wheeler market however; electric two wheelers are yet to penetrate.
The passenger vehicles are further categorized into passenger cars, utility vehicles
and multi-purpose vehicles. All sedan, hatchback, station wagon and sports cars fall
under passenger cars. Tata Nio is the worlds cheapest passenger car, manufactured
by Tata Motors - a leading automaker of India. Multi-purpose vehicles or people-
carriers are similar in shape to a van and are taller than a sedan, hatchback or a
station wagon, and are designed for maximum interior room.
Utility vehicles are designed for specific tasks. The passenger vehicles
manufacturing account for about 15% of the market in India.

(B) MAJOR MARKET SEGMENTATION

16%
5%
4%
75%
Product and service segmentation
Passenger vihicles
Commercial Vehicles
Three Wheelers
Two Wheelers

51

Source: Society of Indian Automotive Manufacturing (SIAM)

(C) GEOGRAPHICAL SEGMENTATION

The total number of new vehicles registered in the 28 states and 7 union territories of
India in the year 2008 were about 106,591,000.
The diagram above displays the registration of new vehicles in various states and
union territories. About 16 states and 1 union territory had over a million new
vehicles registered.
Tamil Nadu had about 16 million new vehicles registered, Maharashtra had over 13
million, and Gujarat had over 10 million. About 91% of these vehicles are non-
commercial vehicles purchased by households looking for a two wheeler, or a car.
Only about 9% of new vehicles registered are used for commercial purposes.
Details of category wise new vehicle registrations in the various states and union
territories are displayed in Appendix 1. The number of new vehicles registrations has
grown by about 66% in the past five years.
industries
9%
houeholds
91%
Major market segmentation
About 91% of the vehicles
sold in India are use
household for their personal
use. Less 10% vehicles sold
are use for commercial
purpose.

52

Source: Department of Road Transport & Highways, *ImaginMor estimates

(D) EXPORT

53
India exports automobiles in about 203 countries. Last year, India's automobile
exports had reached $4.5 billion and a consistent export growth rate can be estimated
in the year 2010 also with the estimation that it will cross $12 billion by 2014.
As per the SIAM records automobile exports have under gown a growth of 22.30
percent during the current financial year. United Kingdom is largest export market
for India's automobile industry followed by Germany, Netherlands and South Africa.
In the year 2009-10, India has made a huge profit by exporting 1,804,619 no.
vehicles. Different brands are utilizing the Indian automobile engineering expertise
to manufacture and export maximum no. of vehicles from their Indian plants.
Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by
2013. Similarly, General Motors announced its plans to export about 50,000 cars
manufactured in India by 2013.

Listed below is the statistics showcasing export sales rate of Indian automobile
industry for the year 2009-10.

Particular Export Sales (2009-10)
Passenger Vehicles 446,146
Commercial Vehicles 45,007
Three Wheelers 173,282
Two Wheelers 1,140,184
Grand Total 1,804,619

Domestic

54
Even in the domestic market, the automobile industry is experiencing tremendous
success.
As per statistics launched by Society of Indian Automobile Manufacturers (SIAM),
there has been a growth of 32.28% in the domestic car sales, justified from the
January 2010 sales 145,905 units against the 2009 sales of 110,300 units.
The Commercial Vehicles segment grew marginally at 4.07 percent. While Medium
& Heavy Commercial Vehicles declined by 1.66 percent, Light Commercial
Vehicles recorded a growth of 12.29 percent. Listed below is the statistics
showcasing domestic market sales rate of Indian automobile industry for the year
2009-10.

PARTICULER DOMESTIC SALES (2009-2010)
Passenger Vehicles 1,949,776
Commercial Vehicles 531,395
Three Wheelers 440,368
Two Wheelers 9,371,231
Grand Total 12,292,770

55

56

INTERNAL
Strengths

Weaknesses

57

EXTERNAL

Opportunities

Threats

58

Political

In 2002, the Indian government formulated an auto policy that aimed at promoting
integrated, phased, enduring and self-sustained growth of the Indian automotive
industry
Allows automatic approval for foreign equity investment up to 100% in the automotive
sector and does not lay down any minimum investment criteria.
Formulation of an appropriate auto fuel policy to ensure availability of adequate amount
of appropriate fuel to meet emission norms
Confirms the governments intention on harmonizing the regulatory standards with the
rest of the world
Indian government auto policy aimed at promoting an integrated, phased and conductive
growth of the Indian automobile industry.
Allowing automatic approval for foreign equity investment up to 100% with no
minimum investment criteria.
Establish an international hub for manufacturing small, affordable passenger cars as
well as tractor and two wheelers.
Ensure a balanced transition to open trade at minimal risk to the Indian economy and
local industry.
Assist development of vehicle propelled by alternate energy source.
Lying emphasis on R&D activities carried out by companies in India by giving a
weighted tax deduction of up to 150% for in house research and R&D activities.
Plan to have a terminal life policy for CVs along with incentives for replacement for
such vehicles.

59
Promoting multi-model transportation and the implementation of mass rapid transport
system.
Economic

The level of inflation Employment level per capita is right.
Economic pressures on the industry are causing automobile companies to reorganize
the traditional sales process.
Weighted tax deduction of up to 150% for in-house research and R & D activities.
Govt. has granted concessions, such as reduced interest rates for export financing.
The Indian economy has grown at 8.5% per annum.
The manufacturing sector has grown at 8-10 % per annum in the last few years.
More than 90% of the CV purchase is on credit.
Finance availability to CV buyers has grown in scope during the last few years.
The increased enforcement of overloading restrictions has also contributed to an
increase in the no. of CVs plying on Indian roads.
Several Indian firms have partnered with global players. While some have formed joint
ventures with equity participation, other also has entered into technology tie-ups.
Social
Since changed lifestyle of people, leads to increased purchase of automobiles, so
automobile sector have a large customer base to serve.
The average family size is 4, which makes it favorable to buy a four wheeler.
Growth in urbanization, 4th largest economy by ppp index.
Upward migration of household income levels.
85% of cars are financed in India.

60
Car priced below USD 12000 accounts for nearly 80% of the market.
Vehicles priced between USD 7000-12000 form the largest segment in the passenger
car market.
Indian customers are highly discerning, educated and well informed. They are price
sensitive and put a lot of emphasis on value for money.
Preference for small and compact cars. They are socially acceptable even amongst the
well off.
Preference for fuel efficient cars with low running costs.
Technological
More and more emphasis is being laid on R & D activities carried out by companies in
India.
Weighted tax deduction of up to 150% for in-house research and R & D activities.
The Government of India is promoting National Automotive Testing and R&D
Infrastructure Project (NATRIP) to support the growth of the auto industry in India
Technological solutions helps in integrating the supply chain, hence reduce losses and
increase profitability.
Internet makes it easy to collect and analyse customer feedback
With the entry of global companies into the Indian market, advanced technologies, both
in product and production process have developed.
With the development or evolution of alternate fuels, hybrid cars have made entry into
the market.
Few global companies have setup R &D centers in India.
Major global players like Audi, BMW, Hyundai etc have setup their manufacturing
units in India.

61

Porters Five Forces of Competition framework views the profitability of an industry as
determined by five sources of competitive pressure. These five forces of competition include
three sources of horizontal competition: competition from substitutes, competition from
entrants, and competition from established rivals; and two sources of vertical competition:
the bargaining power of suppliers and buyers. The strength of each of these competitive forces
is determined by a number of key structural variables
Competition from Substitutes

The price customers are willing to pay for a product depends, in part, on the availability
of substitute products. The absence of close substitutes for a product, as in the case of
automobiles, means that consumers are comparatively insensitive to price (i.e., demand is
inelastic with respect to price). The existence of close substitutes means that customers will

62
switch to substitutes in response to price increases for the product (i.e., demand is elastic with
respect to price).

The extent to which substitutes limit prices and profits depends on the propensity of
buyers to substitute between alternatives. This, in turn, is dependent on their price performance
characteristics. The more complex the needs being fulfilled by the product and the more
difficult it is to discern performance differences, the lower the extent of substitution by
customers on the basis of price differences.
Rivalry between Established Competitors

For most industries, the major determinant of the overall state of competition and the
general level of profitability is competition among the firms within the industry. In some
industries, firms compete aggressively sometimes to the extent that prices are pushed below
the level of costs and industry-wide losses are incurred. In others, price competition is muted
and rivalry focuses on advertising, innovation, and other non price dimensions. Six factors
play an important role in determining the nature and intensity of competition between
established firms: concentration, the diversity of competitors, product differentiation, excess
capacity, exit barriers, and cost conditions.
Threat of Entry

If an industry earns a return on capital in excess of its cost of capital, that industry acts as a
magnet to firms outside the industry. Unless the entry of new firms is barred, the rate of profit
will fall toward its competitive level. The threat of entry rather than actual entry may be
sufficient to ensure that established firms constrain their prices to the competitive level.
Economies of Scale Since Indian automobile market is of order $ 350 billion; the economies of scale
are very high. Thus, threat of new entrants is low.

63
Product Differences Since there is hardly any difference in the offerings of the various providers, so
product differentiation is low. So threat of new entrants is high.
Brand Identity Since there is no big Retailer like Amazon.com or Wal-Mart in India. So threat of
new entrants is high.
Government Policy Since the Government Policy has been quite restrictive till now with respect to
the Retail market & FDI, so threat of new entrants is low.
Capital Requirements The capital requirements for entering in the automobile sector are
substantially high (high fixed cost and cost of infrastructure), so only big names can think of venturing
into this area so, in that respect threat of new entrants is low.
Access to distribution Since in India there is no well established distribution network. So threat of
new entrants is low.
Bargaining Power of Buyers

The firms in an industry operate in two types of markets: in the markets for inputs and the
markets for outputs. In input markets firms purchase raw materials, components, and financial
and labor services. In the markets for outputs firms sell their goods and services to customers
(who may be distributors, consumers, or other manufacturers). In both markets the transactions
create value for both buyers and sellers. How this value is shared between them in terms of
profitability depends on their relative economic power. The strength of buying power that
firms face from their customers depends on two sets of factors: buyers price sensitivity and
relative bargaining power.
Product Differences Since there is hardly any difference in the offerings of the various providers, so
product differentiation is low. So bargaining power of buyers is high.

Buyer Information Todays customers are well educated about the various product offerings in the
sector. So bargaining power of buyers is high.

Buyer Switching Costs Since customers dont have to pay a fat premium to be registered for
provision of services, so bargaining power of buyers is high.

64

Brand Identity High Brand Identity and trustworthiness reduce the bargaining power of buyers but,
otherwise the bargaining power of buyers is high.
Buyer Profits Since dealers offers discounts and various bundling services like 0% insurance, old
car sale, etc, on different items. Hence bargaining power of buyers is high.
Bargaining Power of Suppliers

Analysis of the determinants of relative power between the producers in an industry and
their suppliers is precisely analogous to analysis of the relationship between producers and
their buyers. The only difference is that it is now the firms in the industry that are the buyers
and the producers of inputs that are the suppliers. The key issues are the ease with which the
firms in the industry can switch between different input suppliers and the relative bargaining
power of each party.

Product Differences Since there is hardly any difference in the offerings of the various suppliers, so
product differentiation is low. So bargaining power of Suppliers is low.
Supplier Information Todays automobile manufacturers are well educated about different
Suppliers. So bargaining power of Suppliers is low.
Supplier Switching Costs Since different Suppliers hold resources as per buyers requirements and
a large inventory has to be maintained. So bargaining power of Suppliers is low as they would have to
incur a huge cost on switching. But if they get automobile manufacturers for similar products who can
pay higher Supplier switching cost is low. In such case, bargaining power of Suppliers is high.
Brand Identity High Brand Identity and Trustworthiness of a Supplier increases the bargaining
power of Suppliers. But, otherwise the bargaining power of suppliers is low.

65

66

Demographic profile of respondents:

Age

0
5
10
15
20
25
30
35
40
45
50
Below18 18-25 26-36 36-50 51 above
Age 2 47 40 6 5
y

Age
Sample Size 100

67
Interpretation
As per analysis there are 100 respondents with different age group is classified in five
categories.
Out of them two categories highly responded one is 18-25 which is 47% and 26-36
which is 40%.

Gender

Occupation
84%
16%
Gender
Male
Female

68

Interpretation
We can see here the Business, Student, Professor and Service man respondent ratio is
high as compare to other respondent.

Qualification

0
5
10
15
20
25
30
35
40
Business CA Lawyer Professor Service Student Worker
20
4
5
16
15
39
1
Occupation
0
10
20
30
40
50
60
70
Graduate HSC Post graduate SSC PHD
21
8
67
3
1
Qualification

69
Interpretation
As per analysis of above chart mostly respondent are educated so that they may be
aware about automobile industry.
As per above chart out of 100 respondent 67% are post graduate, 21% graduate and 1%
PHD

Section 2
Q-1 Do you think that when people purchase car, there is an
influence of family on the buying decision?

70

Interpretation
Hear 100% respondent say that people purchase car that influence of family buying
decision.

Q-2 How many Members are there in your family?

0
20
40
60
80
100
120
Yes No
Do you think people purchase car that influence
of family buying decision
Do you think people purchase
car that influence of family
buying decision

71

Interpretation
In the above chart I found that 19%, 32% and 26% are respondent have 3, 4 and 5
family members respectively in their family and only 6% have 2 family member in their
family so we can say that people who are live with joint family or large family mostly
their requirement is to purchase car. So that factor influence to purchase car decision.

Q-3 what new car did you buy?
Interpretation
Following chart shows that which new car people did purchase so I found that out of
100 respondents people mostly prefer Maruti Swift, Alto, Wagon R, Manza and Zen.
As per given data in chart 21% people have Swift, 15% people have Alto, 6% people
have Wagon R and Manza. So I analyze that current scenario demand of car is increase.
0
5
10
15
20
25
30
35
2 3 4 5 6 7
Family Member 6 19 32 26 14 3
Y

Family Member

72

0 5 10 15 20 25
Alto
BMW
Camery
Ferrari
Chevy
Hundie
Fiat
Ford Fiesta
Honda Accord
Honda Civic
Honda City
i10
i20
Manza
Swift
Maruti800
Neno
Opera
Skoda
Indigo
Varena
Vento
Wagon R
Zen
Not Purchase Car
15
2
1
3
1
1
4
1
3
2
1
4
4
6
21
4
2
1
2
1
1
1
6
9
4
No.Of Car

73
Q-4 which of the following information source did you uses to
find out about the car you brought and other consideration?

Interpretation
In current scenario information source is very important for people to got knowledge.
There are many information sources available in market for any information.
If people wants to buy car so that they want to take decision on the basis of information
source like Internet, Car magazine, Dealer staff, News paper, Advertising media on TV,
friends, relatives, colleague est.
so as per above chart I found 68% of people brought car on reference of friend, relatives
and colleague 15% and 8% go through internet and dealer sales staff respectively and
remaining 3%, 2% and 1% go through car magazine, TV programs, news paper article
and Motor Exhibition.
So we can say that mostly people go through friends, relatives and colleague because
peoples only trust on that people who are near him and there are more chances to gate
right information to right person.

3%
3%
68%
2%
15%
8%
1%
Information Source
Car Magazine
TV programs
Friends, Relatives, Colleague
News paper Article
Internat
Dealer sales staff
Motor shows/ Exhibition

74
Q-5 which source is most appropriate for you give first three ranks?

Interpretation
As per above chart analysis 59% people give 1
st
ranks and 29% people give 2
nd
ranks
of friend and family. After that 13% people give 1
st
ranks of internet and 41% give 2
nd

ranks of internet. TV Programs and car magazine also gate good rank from people.
So we can say that mostly people go through Friends, family, internet, car magazine and
TV programs because may be it is suitable source of information.

Car Magazine
TV programs
News paper Article
Internat
Dealer sales staff
12
12
59
2
13
1
0
5
2
29
10
41
6
7
27
16
2
9
18
19
7
Chart Title
Rank 3 Rank 2 Rank 1

75
Q-6 According to you, which Factors are affecting for the car
purchase decision?

1. Price of car

Interpretation
Interpretation of above chart we find that 69% of peoples are agree and 26% people are
strongly agree that price of car is one of the factor to influence purchase decision.
Remaining 5% people are Neutral however we seen that overall 95% people are agree
with price of the car is one of the factor to influence purchase decision.

26%
69%
5%
0%
0%
Price of Car
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

76

2. You Take Suggestions From Your Family Members

Interpretation
Current scenario family play vital role to take decision. If you want to purchase any
item from market family member always involve that matter to take decision and
suggestion, especially for children. Mostly children influence to purchase anything from
market.
As per above data 78% people strongly agree and 17% people agree that suggestion
from family member is influence people to purchase decision.
So we can say family members suggestion is most influence to take purchase decision
of car.

78%
17%
5%
0% 0%
Suggestion From Your Family Member
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

77
3. Family Need

Interpretation
We seen family member graphical analysis that19%, 32% and 26% are respondent have
3, 4 and 5 respectively family members in their family so this type of joint family may
be require car.

As per above graphical analysis there are 69% people agree and 7% strongly agree with
that family need is one of the factor to influence to take decision making to purchase of
car so we can say most of the people are agree with that.

0
10
20
30
40
50
60
70
Strongly
Agree
Agree Neutral Disagree Strongly
Disagree
Family Need
Family Need
7%
69%
24%

78
4. Status Symbol

Interpretation
As per data given above graphical chart there are 27% people are agree and 3% people
are strongly agree so overall 30% people are agree that status symbol influence on
people to take purchase decision for car.

61% people are Neutral they dont go with neither agree nor disagree so that we can say
status symbol is not influence to take purchase decision of car.

3%
27%
61%
5%
4%
Status Symbol
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

79

5. Brand Name

Interpretation
As per graphical chart we seen that 48% of people agree and 10% people are strongly
agree so overall 58% of people are agree that brand name is the factor to influence
consumer to purchase car.
Other side 30% people are neutral and 12% are disagree however there are two sides of
coin every person have different perception even else on the basis of graphical analysis
we can say brand name is factor to influence to take decision to purchase car.
0
5
10
15
20
25
30
35
40
45
50
Strongly Agree Agree Neutral Disagree Strongly
Disagree
Brand Name
Brand Name
10%
48%
30%
12%

80

6 Income level

Interpretation
Income level is one of demographic factor. We can seen here that out of 100
respondents 66% people go through neutral they dont believe in income level that
affects to decision.
Only 30% people is agree out of that 13% is strongly agree that income level is one of
the demographic factors which influence on consumer buying behavior.
So that we can say some people believe however mostly people are neutral, those people
are believe that some time its may be affect some time may not.
13%
17%
66%
3%
1%
Income Level
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

81

7 Festival Season/Offers

Interpretation
Our Indian society is very familiar with good culture and different festival which is
celebrated here. During festival season Company provide many offers for customer so
its influence to customer purchase particular product.
As per above chart 61% people is agree and 6% people is strongly agree that festival
season and offer are influence to take decision to purchase car.
24% people believe that festival season and various offer are not that much influence to
take decision weather car purchase or not.
6%
61%
24%
7%
2%
Festival Season/Offers
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

82
As per above data we can say mostly people believe that festival season and various
offer are influence to purchase car.

8 Special Family Programs/Events like Anniversary, Birthday

Interpretation
Interpretation of above chat I found that 62% people are agree 23% people go through
neutral and 10 people are disagree so we can say mostly people believe that special
family programs is one of factor to influence purchase car.
One of the reasons is that during this special family Programme like Event, Birthday.
During that day people wants to give gifts.

9 Friends
Interpretation
0
10
20
30
40
50
60
70
Strongly
Agree
Disagree
Special Family Programs
Special Family Programs
62%
23%
10%

83
As per following chart analysis 65% people agree that friend circle is one of factors to
influence to purchase car and remaining 24% are neutral. So as per data we can say that
friend is influence to take decision.

10 Advertisement and promotion

Interpretation
2%
65%
24%
6%
3%
Friend Circle
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
24%
43%
21%
10%
2%
Adv. & Pro.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

84
Current scenario we seen that advertising and promotion is most suitable factor for any
company because advertisement is one of the factor to increase sales of product and
service. I read one article from 4 Ps of marketing in this article mention that 86%
advertise given on television, 7% given on internet and remaining are others. So we
understand that what the importance of advertisement for company is.
As per above chart 43% peoples are agree and 24% peoples are strongly agree that
advertisement is one of the factor which affect consumer buying decision.
21% people are neutral and remaining 12% are disagree however most of the people
believe that advertisement and promotion is factor influence people to purchase
decision.

11 After sales service

Interpretation
As per above information there are 37% peoples are disagree and 3% are strongly
disagree. 31% peoples are agreed and 11% peoples are strongly agreed that after sales
0 5 10 15 20 25 30 35 40
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
11
31
18
37
3
After Sales Service

85
service is influence customer. So hear ratio of agree and disagree is equal (40%)
Remaining 18% people are neutral.
After sales service is important for each and every customer however its not that much
influence to people to take decision on that base.
So we can say after sales service is not factor to influence people to take decision.
12 installment Payment facility

Interpretation
As per above char 41% peoples are disagree and 9% peoples are strongly disagree.
Only 18% peoples are agreed and 7% people are strongly agreed that installment
payment facility is one of factor that influences people buying decision.
However mostly people cant believe this things so we can say that installment payment
facility is not affect purchase decision of customer.

0
5
10
15
20
25
30
35
40
45
Strongly
Agree
Disagree
Installment Payment Facility
Installment Payment Facility
41%
24%
18%
9%

86

13 Insurance Facilities

Interpretation
As per above chart we found that only 25% are people are agree and 6% people are
strongly agree that insurance facility is influence to take consumer buying decision.
However 36% people are disagree and 13% people are strongly disagree that insurance
facility is not influence on buying decision so we can say that mostly people disagree
that insurance facility is not a factor to influence consumer buying decision.

6%
25%
20%
36%
13%
Insurance Facility
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

87

14 Location of the car dealer shop

Interpretation
As per chart analysis I find that 20% people are agree, 24% people are neutral, 30%
people are disagree,24% people are strongly disagree.
Over all 54% people are disagree so we can say location of car dealer shop is not a
factor which influence on consumer buying decision.
2%
20%
24%
30%
24%
Location
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

88

15 Home delivery facilities

Interpretation
Above given data 14% (10% agree and 4% strongly agree) people are agree that home
delivery facility is influence on customer to purchase decision. However there are 71%
(50% disagree and 21% strongly disagree) people are not agree that home delivery
facility is influence buyers.
So we can say most of the people are disagree and so that home delivery facility is a
factor not influence on buying decision.

4%
10%
15%
50%
21%
Home Delivery
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

89
16 Credit Card Acceptances
Interpretation
As per following char 45% disagree and 19% strongly disagree so we can say credit
card acceptance is a factor which is not influence in peoples buying decision.

17 Information provided by sales person

0
10
20
30
40
50
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Credit card
Credit card
20%
12%
45%
19%
4%
0
10
20
30
40
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
5
40
20
25
10
Series 1

90
Interpretation
As per above chart 40% people are agree and 5% people are strongly agree, 25% people
are disagree and 10% are strongly disagree, 20% people are neutral.
So we can say mostly people are believe that information provided by sales person is
may be influence on peoples buying behavior.
18 Show rooms have verity of car

Interpretation
as per data given above that 75% people are agree and 4% people are strongly agree that
show room have verity of car is affect customer decision.

4%
75%
15%
5%
1%
Column1
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

91
Only 5% people are disagree this things so we can say most of the people agree that
show room have verity of car is one factor that influence peoples buying decision
because some time its happened that consumer go to show room but there are not car
available which consumer wants. Customer shows every aspect in product color, looks,
est.

19 Information Provided various car related magazine

Interpretation
As per above chart 4% people are disagree and 14% people is neutral so they dont
think that car related magazine is influence to people in purchase decision.
0
10
20
30
40
50
60
70
80
Strongly
Agree
Disagree
Series 1
Series 1
76%
14%
4%
5%
1%

92

However most of the people believe that that influence like above chart 76% people are
agree and 5% people are strongly agree that information provided by various car related
magazine is influence to people buying decision.

20 Mileages

Interpretation
Mileage is important for every customer when customer go to any show room they first
will see car model and then after they want know about Mileage, average, capacity to
carry ect.
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
68
23
6
2
1
Mileage
Mileage

93
Hear 23% people are agreed and 68% people are strongly agreed that mileage is factor
to influence to people in their buying or purchasing decision.
So hear most of the people go through agree and strongly agree so we can say that
mileage is actor to influence to people in purchase decision.

21. Powers

Interpretation
As per above data out of 100 respondent 51% people are strongly agree and 40% people
are agree that power s is also one of the factors is influence to people in their purchase
decision.

22. Looks
51%
40%
5%
4%
0%
Power
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

94
Interpretation
As per following chart 65% people are strongly agree and 28% people are agree so we
can say overall 93% people are agree that looks of car is also important for people who
buy car.
So we can say looks is also one of the factor to influence people to purchase decision of
car.

23 Safeties
0
10
20
30
40
50
60
70
Strongly
Agree
Disagree
Looks
Looks
65%
28%
4%
2% 1%

95

Interpretation
All human being need safety anywhere so why not in car?
Thats why 71% people are strongly agreed and 23% people are agreed. So mostly
people believe that safety is one of the factor that influence people to buying decision.
24. Car Accessory

71
23
2
2
2
0 10 20 30 40 50 60 70 80
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Safety
20%
64%
9%
7%
0%
Car Accessory
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

96
Interpretation
As per above data 64% people are agree and 20% people are strongly agree, 9% people
are neutral, 7% people are disagree.
So we can say the many people believe that car accessory is factor to influence people
to purchase decision.

25 Easy Availability of spare part
Interpretation
As per following chart 52% people are agree and 13% people are strongly agree that
availability of spear part is influence people to purchase decision.
28% people are disagree, 6% are neutral however most of the people are agree so we
can say that availability of spear part is influence people purchase decision.

26 Availability of Service station
0
10
20
30
40
50
60
Strongly
Agree
Disagree
Series 1
Series 1
13%
52%
6%
28%
1%

97

Interpretation
Ones you purchase car then after you want to go to service station if you face any
difficulty so service station is require. As per above data 55% are agree, 24% people are
strongly agree, 17 neutral and remaining are disagree.
So most of the people believe that service station is require and that influence on people
to purchase decision.

27 Technologies
0
10
20
30
40
50
60
Disagree
24
55
17
2
2
Series 1

98

Interpretation
Current scenario technology is increasing day by day and implementation of new
technology also increases. People want to go through better technology. We seen that
there are many car come up with new technology and that influence people.

As per above chart analysis 49% people are strongly agree and 39% people are agree
that technology is also one of the factor to influence people to buying behavior.

5% only disagree however most of the people agree that so we can say technology is
influence customer purchase decision.
28 Overall, I am satisfied with my own car
49%
39%
6%
5%
1%
Technology
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

99

Interpretation
We analyze all factor over hear some factor agree for people some disagree for people
however people fist think about their family member. They try to do that family member
should satisfy that sit.
So we can see chart that almost people agree and strongly agree there are 76% people is
strongly agree and 18% people are agree so we can say that family member satisfied
their own car.

0
10
20
30
40
50
60
70
80
Disagree
76
18
3
1
2
Series 1

100

101
KEY FINDINGS

When it comes to making their final decision about which vehicle to buy, consumers focus
on factors such as reliability, safety, and price and fuel economy. There are following some
key finding that influence to car purchase decision.
The role of family is most important during vehicle buying decision because thats only
decided that we want purchase or not. The decision processes and acts of final
household consumers associated with evaluating, buying, consuming, and discarding
products for personal consumption
The role of the Internet during the vehicle buying process is becoming increasingly
important as web usage for both purchasing and research has increased. The number of
Indian consumers researching online reached 95 percent in 2013 up from 86 percent in
2010.
After sales servicing is growing as a factor in vehicle decisions. Servicing is taking on a
bigger role for many consumers with after sales service climbing up the list of important
factors in choosing a vehicle. In addition, servicing can influence future buying
decisions. In vehicle service contracts, Indian customers focus on extended warranty
and vehicle insurance, followed by customer care.
Price of car, Mileage, Power, Safety, Car accessory is also growing as factors in vehicle
decision. Because this are the basic requirement of every customer.
Advertisement and promotion, Information provided by sales person, show room have
variety of car, car related magazine all are information source is best factors to help
consumer decision making.
Technology is also influence to customer to take decision making.

102
Overall, various internal and external factors like extra care facilities, location of the
shops, various information provided by car dealers, advertisement and print media
promotions, features of the car in all are contributing in making car purchasing
behaviour of customers.

103

104
RECOMMENDATION OR SUGGESTION

After completion of this project I find out some factor which is influence customer to
their purchase decision however some factor are also there that customer are not
satisfied with them like. Installment Payment Facility, Insurance Facility, Home
Delivery Facility, Credit Card Acceptance, Easy Availability of Spare Parts ect.

So that It is important for the car manufacturers and car dealers to be able to understand
the different factors which is not satisfy and that much influence customer so I would
like to suggested them to improve up to customer need.

105

106
CONCLUSION

Since Indian Automobile market is continuously in the prowl of surging as a major car
manufacturer, people are purchasing car as there is increase of income of common people as
well as change in tastes and preferences of consumers. It is important for the car manufacturers
and car dealers to be able to understand the different factors affecting the extent in car
purchasing behaviour. The factor analyses results indicate that factor which consists of
Information provided by salesperson; safety; easy availability of spare parts, technology are
affecting the car purchasing behavior. People are more conscious about the on spot
information provided about various cars who serves according to the needs and wants of the
customer. The type of technology used and the wider reach of the service stations also affect
the most on car purchasing decision. Another factor like includes family needs; brand image;
income level; special family programs/events like Anniversary, Birthday, location of the car
dealer shop; looks; availability of service station showing customers accessibility to the
service provided. Also affect the most on car purchase decision.
Overall, various internal and external factors like extra care facilities, location of the
shops, various information provided by car dealers, advertisement and print media promotions,
features of the car in all are contributing in making car purchasing behaviour of customers.

107
BIBLIOGRAPHUY
Website:
www.Capgemini online.
www.Indian automobile industry
www.Caronline

Various Link:
Overview of Indian automobile industry
http://www.entrepreneurswebsite.com/2010/05/26/automobile-industry-in-india/

overview statistics
http://www.automobileindustryindia.com/resources/overview-of-indian-automobile-industry.html

Import Export Data
http://www.imaginmor.com/automobileindustryindia.html

Major Players In Market
http://auto.indiamart.com/auto-industry/
http://www.economywatch.com/indian-automobile-industry/top-players.html

Brand different company
http://www.cardekho.com/allcar/brands

Porter five force
http://porters-5-forces.blogspot.com/2013/11/porters-5-forces-in-automobile-industry.htm

108
Questionnaire

I am Hetal Shah Student of PGDM from Marwadi Education Foundation Group of Institutions
conducting a research on factor affecting the purchase of four wheelers for consumer decision. I
assure you that data given by you will be used only for research purpose.

Personal Information:
Name:_____________________________________________________ Gender_________________
Age
Below18 18-25 26-35 36-50 51 and above

Occupation
Service Business Student Housewife

Qualification

HSC under Graduate Graduate Master Degree other

Annual Income

Up to 2 lack Rs. 2 lack to 5 lack Rs. 5 lack to 10 lack Above Rs. 10 lack

109

Section II

(1) Do you think that when people purchase car, there is an influence of family on the buying decision?
If yes then continue with the 3rd question or else move on to question 2
nd

Yes No

(2) If no, what are the other factors that have an influence on the purchase of 4-wheeler?
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
___

(3) How many Members are there in your family?

2 3
4 5
6 7
8 9

(4) (A) What new car did you buy?____________________________________________________
(B)Month/Year of purchase. _______________________________________________________

(5) Which of the following information source did you use to find out about the car you brought
and other consideration (tick as many as appropriate and then give rank three most important
source)
SOURCE OF INFORMATION TICK RANK THE 3 MOST IMPORTANT TO YOU
Car Magazine
TV programs

110
News paper Article
Internat
Dealer sales staff

(6) According to you which of these Factors are Affecting Car Purchasing Decision in particular two
cities Rajkot and Rajkot. Please fill according to instruction in bracket given below

(SA-Strongly Agree; A-Agree; N-Neutral; DA-Disagree; SDA-Strongly Disagree)

Sl.No Statements Strongly
Agree
Disagree
1. Price Of The Car
2. You Take Suggestions From Your
Family Members

3. Family Needs
4. Status Symbol
5. Brand Name
6. Income Level
7. Festival Season/Offers
8. Special Family Programs/Events Like
Anniversary, Birthday

9. Friend Circle
10. Advertisements And Promotions
11. After Sales Service
12. Installment Payment Facility
13. Insurance Facility
14. Location Of The Car Dealer Shop
15. Home Delivery Facility

111
16. Credit Card Acceptance
17. Information Provided By
Salesperson

18. Show room have verity of car
19. Information Provided By Various
Car Related Magazines

20. Mileage
21. Power
22. Looks
23. Safety
24. Car Accessories
25. Easy Availability Of Spare Parts
26. Availability Of Service Station
27. Technology
28. Overall, I Am Satisfied With My Car I
Own

112

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