A PROJECT REPORT ON BUYING BEHAVIOR TOWARDS BIG CARS Submitted to

In e!ui ement o" #$ ti$% "u%"i%%ment o" &$'te o" Bu'ine'' Admini't $tion (&BA) Submitted on

Submitted b*

PRE+ACE
As a part of the curriculum of the MBA Program of the _________________, the students are required to undergo project work in addition to their theoretical study so as to enable them to have the knowledge of the practical aspect of the Business Administration As students of management it is learning e!perience to analy"e an industry #t is the most essentials tools for us to e!pose our skill as a future responsible managerial post $o, # decided to take a project on automobile industry # chose big car in automobile industry for the project #t helps us to develop our skill % confidence to do better in all respect in management fields &he knowledge of management is incomplete without knowing the practical application of the theories studied &his grand project provides golden opportunity for all students especially when the management students do not have perfect understanding of the working of unit &he report contains the detail information about comparative study of consumer behavior towards purchase of big cars 'hat are the factors taken into account while purchasing big car # have tried my best to get the necessary information for project which includes secondary as well as primary data

AC,OW-EDGE&ENT

&his report has been submitting in partial fulfillment of the requirement of the award of M B A from _____________________________________ #t is a universal fact that for study of a project in depth, # need the support of many people right from the stage of conceiving the idea to completion of report #t is difficult for a single person to do the job efficiently without interaction % involvement of others # take this opportunity to thank ________________________our director ____________ and our inspiration our guides, _______________________ (or giving me )aluable *uidance and providing facilities to successfully complete my *rand Project # am grateful to other faculty members of ___________for their support whenever required +iscussions with friends also have served to provide sought after information # am thankful to all our batch mates (inally # am thankful to my parents and ,ord Almighty without whose blessings tasks are incomplete

TAB-E O+ CONTENT

$. /o
4 8 : 5 ; 7 9 < 4= 44 48 4: 4-

PA.&#01,A.
2!ecutive $ummary #ntroduction &ime line of #ndian Automobile industry 0ompanies production facility in #ndia Market players and their products (uture plans of major market players 0onsumer behavior model .esearch Methodology +ata Analysis and interpretation (indings .ecommendations ,imitations Bibliography 2 >uestionnaire

PA*2/3
567 9644564; 47 4968< :=6-= -4 --6-; -76;4 ;8 ;5 ;; ;7 ;9

E.ECUTIVE SU&&ARY

&he #ndian economy is e!pected to grow by ; percent in the current fiscal and slip further during the ne!t year said the 2conomist #ntelligence unit, a research arm of 1? @ based financial maga"ine6 &he 2conomist 'ith a population of over one billion and an economic growth at <A per annum #ndia is the hub for business &he automobile sector is one of the core industries of the #ndian economy as it contributes -A of our *+P and 5A of total industrial output, but it is set to grow much faster than the rest of the economy

1ntil the mid 4<<=s, automobile industry in #ndia consisted of just a handful of local companies with small capacities and obsolete technologies /evertheless, after the sector was thrown open to foreign direct investment in 4<<;, some of the global majors moved in and, by 8==8 Byundai, Bonda, &oyota, *eneral Motors, (ord and Mitsubishi set up their manufacturing base

3ver the past 769 years, the country has seen the launch of several domestic and foreign models of passenger cars, multi6utility vehicles CM1)sD and commercial vehicles and a robust growth in the production of all kinds of vehicles Moreover, owing to its low cost high quality manufacturing, #ndia has also emerged as a significant outsourcing hub for auto components and auto engineering design, rivaling &hailand

; #n #ndia there are many automobile companies from different countries and there is a very tough competition between these companies and this is going to be more tougher as many new cars of these companies are going to be launched in coming years (or marketers it is a big investment game where they can only reduce their cost by acquiring customers and retaining them &o enable the marketers with a ready reckoner to understand the factors, which influence customers while buying a car, the study was undertaken

&he project starts with the history of automobile where there were only two market players and it points out the reason which leads to the development and enormous growth of the #ndian automobile industry #t also states the recession effect on the #ndian automobile industry in the year 8==9

&he project states the major players in the #ndian market, time line of #ndian automobile industry, there production facilities situated at various places and their future plans &he 2ngle, Blackwell and Miniard model of consumer behavior is also used in the project in order to study the consumer buying process from information search to outcomes of the purchase

#n order to know the buying behavior and main motivation behind the purchase of car, an e!ploratory research was conducted with the dealer and a questionnaire was prepared for the customer with a sample si"e of 48=

After analy"ing the data collected from respondents it was found that owners of this segment prefer to buy the car which has very good brand image, superior engineering

7 and which carries a high degree of reliability (or some it is a way to show their status and for many it is a lu!ury (actors like #ncome, gender, age, city and type of family plays an important role in influencing customers while buying a car As far as type of family is concerned, this study takes only nuclear family &here are two reasons for this (irst is that it would be difficult to locate a joint family, as they are on the decline &he second is that it would be operationally infeasible to map the purchase behavior in a joint family because of its inherent comple!ity and time constraints

'hat is crucial to the marketer here are the number of alternatives that a customer evaluates or considers &he greater the number of additional alternative available in the market, the e!pected probability to switch to the other is higher

INTRODUCTION
(or si!ty years since #ndiaEs independence, the #ndian car market was dominated by two locali"ed versions of ancient 2uropean designs @ the Morris 3!ford, known as the Ambassador, and a old (iat &his lack of product activity in the #ndian market was mainly due to the #ndian governmentFs comple! regulatory system that effectively banned foreign6owned operations 'ithin this system Creferred to informally as the Glicense rajGD, any #ndian firm that wanted to import technology or products needed a licenseHpermit from the government &he difficulty of getting these licenses stifled automobile and component imports, creating a low volume high cost car industry that was inefficient, unprofitable, and technologically obsolete &he two dominant products Ambassador and (iat, although customi"ed to the poor road conditions in #ndia, were based on a stale design concept Cwith outdated featuresD, and were also fuel inefficient

&hen came the abolition of license raj #n 4<<:, the government followed up its liberali"ation measures with significant reductions in the import duty on automobile components &hese measures have spurred the growth of the #ndian economy in general, and the automotive industry in particular $ince 4<<:, the automotive industry has been e!periencing growth rates of above 85A

&he automobile industry in #ndia6 the tenth largest in the world with an annual production of appro!imately 8 million units @ is e!pected to become one of the major global automotive industries in the coming years A number of domestic companies produce automobiles in #ndia and the growing presence of multinational investment, too, has led to an increase in overall growth (ollowing the economic reforms of 4<<:

< the #ndian automotive industry has demonstrated sustained growth as a result of increased competitiveness and rela!ed restrictions

#t is e!pected that by 8=:=, the #ndian car market will be the : rd largest car market across the globe $mall cars seem to be ruling the roost in the #ndian automobile market with over 7 5 lakh small cars being sold in #ndia in 8==<64= &he main encouraging factors for the success story of the car market in #ndia are the increase in the opportunity for new investments, the rise in the *+P rate, the growing per capita income, massive population, and high ownership capacity

&he liberali"ation policies followed by the #ndian government had been inviting foreign investors and manufacturers to participate in the car market in #ndia &he recent trend within the new generation to get work in the software based sector has led to the rise in the income level and change in the lifestyle which has further led to the increase in the demand for different varieties of cars among them Moreover, there are many financing companies providing easy car loans at reasonable interest rates and affordable installments

&he car Market in #ndia is crowded with all varieties of car models like the small cars, mid6si"e cars, lu!ury cars, super lu!ury cars, and sports utility vehicles #nitially the most popular car model dominating the 0ar Market in #ndia was the Ambassador, which however today gave way to numerous new models like Maruti, (iat, Byundai, BM', and many others Moreover, there are many other models of cars in the pipeline, to be launched in the car market in #ndia

4=

E'tim$tion' "o t/e *e$ 0121

#n 8=4= estimated rate of growth of #ndia auto industry is going to be < percent Auto industry in #ndia has been hit hard by ongoing global financial recession $ales figures of #ndia automobile industry for +ecember 8==9 have shown devastating after effects of global financial slowdown

Bowever, in 8==< as there are certain factors working in its favor #ndia is blessed with a middle class, which is getting economically stronger with every passing day &his class is being touted as potential consumers for #ndia auto industry in years to come

#ndian economy has been, more or less, able to withstand tremors of global financial meltdown 2ven though its rate of growth has slowed down considerably, there are hopes of an economic revival 'ork force of auto industry of #ndia is relatively well trained All these factors indicate that there could be a decent future for #ndia auto industry in days to come

#ndia automobile market is likely to be in good shape in 8=4= Much of this optimism results from renewed interest being shown in #ndia auto industry by reputed overseas car makers /issan Motors, which is a well known Iapanese car making company, regards #ndia automobile market as a global car manufacturing hub for future

Byundai, a major automobile establishment of $outh ?orea, has put in large sums of

44 money in #ndia automobile market As per its estimates, #ndia auto industry could become a major center for small car manufacturing organi"ations in future

&here are some other automobile companies of world who have shown interest in #ndia auto market Major names among these are *eneral Motors, $koda Auto and Mercedes6Ben" &hese companies have major plans lined up for #ndia auto industry and are likely to invest a huge amount of money in #ndia automobile market

A new reality is dawning in the market place &he continuous entry of new competitors and consequent increase in competition is e!ploding choice for the customers &he customer has become more discerning, more conscious of the choices available &he customer has started demanding value for money &he companies are learning to allow the customers to dictate specifications and quality standards

&he concept of $mall cars, $edans, $uvs and Muvs etc were alien phrases at one point in the #ndian consumerEs mind space, eliciting nothing more than bewildered e!pressions and a confused JhuhKL but the time has changed and consumers now know very well about this

According to some analysts, a family becomes a potential car customer as soon as its annual income e!ceeds the price of the car

#n #ndian conte!t, a family with an annual income of .s 8 lakh would be a potential car customer According to /0A2., there are -= million households in #ndia with annual income between .s <==== and .s 8 lakh 3nly - percent of them own a car

48

&hus, the potential for car sales is immense 'ith prices of small cars coming down in #ndia, customers now prefer to buy new cars rather than second6hand ones (inancing for a second6hand car is also e!pensive at about 4- percent for a ma!imum tenure of four years, whereas the financing for new is at 96< percent for a tenure of 769 years

&he choices that a prospective car buyer has in present scenario are many and the automobile industry has achieved a remarkable growth in the last year

#ndiaEs car market has emerged as one of the fastest growing in the world &he number of cars sold domestically is projected to double by 8=4=, and domestic production is skyrocketing as foreign makers are setting up their own production plants in #ndia &he governmentEs 4=6year plan aims to create a M4-5 billion auto industry by 8=4;

According to Mc?insey, the auto sectorEs drive to lower costs will push outsourcing &he auto sector could be worth M:75 billion by 8=45, up from M;5 billion in 8==8 Mc?insey thinks #ndia could capture M85 billion of this amount 3ut of -== #ndian suppliers, 9= percent have the #$3 <=== certificateNthe international standard for quality management

&he production of automobiles in #ndia is largely aimed at local consumers $everal #ndian manufacturers also e!port a diverse variety of auto components 2!perts predict a sale of - 8 million four wheeler automobiles in #ndia by 8=45 #ndian

4: passenger vehicle e!ports are also e!pected to rise from 47=,=== in 8==; to 5==,=== in 8=4=

&here are number of variables that are e!pected to play an importance role in this process &hey are as followingO

In3ome4 0ars are products that are highly priced #n #ndia affordability might probably be a deciding factor As my study is based on big cars C$edan, $uv and MuvD, people having a good amount of income can only afford to buy these segment of cars

Gende 4 0ar purchase in #ndia is one in which both husband and wife as a couple play a role so it is therefore necessary to consider it as a variable &hese days even kid play an important role in purchase of cars

T*#e o" "$mi%*O #ndia has two type of familiesP Ioint and nuclear &he purchase process in bound to be different in these two structures of families, as the number of influencers is going to be higher in the case of joint family &his study however takes only nuclear families as its universe &he reasons for it are that it would be difficult to locate a joint family, as they are on the decline &he second is that it would be operationally infeasible to map the purchase behavior in joint family because of its inherent comple!ities and time constraint

Cit*4 &he city in which the study in conducted would be influential &his is because each city has its own unique background, cultural mi! and innumerable other

4variables that would play a part in the purchase process &his study in conducted only in one city due to time constraint

A5e4 &his is another variable that has to be taken into account, as it would play an important role in purchase process

0ars are usually high involvement purchase #n a developing country like #ndia, it may also be a purchase of a lifetime &heoretically, buyers of cars in #ndia would be in a mode where there is high information search and final evaluation is on functional or performance attributes Apart from advertisement, the information could be gathered from many other sources like the product e!perience, the conte!t in which the car is bought, the behavior and helpfulness of the dealer or salesperson and so on &his will be generated in detail as the study progresses

45

Time%ine o" Indi$n Automobi%e Indu't *4

49<7 (irst Person to own a car in #ndia6 Mr (oster of MHs 0romption *reaves 0ompany, Mumbai

4<=4 (irst #ndian to own a car in #ndia @ Iamshedji &ata 4<=5 (irst 'oman to drive a car in #ndia @ Mrs $u"anne .+ &ata 4<=5 (iat Motors 4<44 (irst &a!i in #ndia 4<8- (ormation of traffic police 4<89 0hevrolet Motors 4<-8 Bindustan Motors 4<-- Premier Auto ,imited 4<-5 &ata Motors 4<-7 Mahindra Motors 4<-9 Ashok Motors 4<-9 $tandard Motors 4<7- $ipani Motors 4<94 Maruti 1dyog 4<<- .over Motors 4<<- Mercedes Bens 4<<- 3pel 4<<5 (ord Motors

4; 4<<5 Bonda $#2, 4<<5 .eva 2lectric 0ar 0ompany 4<<5 +aewoo Motors 4<<; Byundai Motors 4<<7 &oyota ?irloskar Motors 4<<7 fiat Motors C.e6entryD 4<<9 $an Motors 4<<9 Mitsubishi Motors 8==4 $koda Auto 8==: 0hevrolet Motors C.e62ntryD

47

Com#$nie' P odu3tion +$3i%itie' in Indi$

AudiO Aurangabad, Maharashtra BM'O 0hennai, &amil /adu 0hevroletO Balol, *ujarat (iatO PuneC.anjangaonD, Maharashtra (ordO 0hennai, &amil /adu *eneral MotorsO &alegaon CPuneD, Maharashtra BondaO /oida, 1ttar Pradesh ByundaiO 0hennai, &amil /adu MahindraO /ashik, Maharashtra, ?andivali, #gatpuri, Qaheerabadm Andhra Pradesh and Baridwar, 1ttrakhand

Mercedes6Ben"O Pune, Maharashtra $kodaO Aurangabad, Maharashtra Maruti $u"ukiO *urgaon, Baryana, and Manesar, Baryana &ataO ,ucknow, 1ttar Pradesh, Pimpri CPuneD Maharashtre, Iameshpur, Iharkhand, Baridwar, 1ttrakhand and $anand, *ujarat

&oyotaO Bangalore, ?arnataka &ata /ano O $anand, *ujarat

49

&AR,ET P-AYERS AND THEIR PRODUCTS

&$ uti Su6u7i

Maruti $u"uki #ndia ,imited is a probably listed automaker in #ndia #t is a leading four6wheeler automobile manufacturer in $outh Asia $u"uki Motor 0orporation of Iapan holds a majority stake in the company #t was the first company in #ndia to mass6produce and sell more than a million cars #t is largely credited for having brought in an automobile revolution to #ndia #t is the market leader in #ndia and on 47 $eptember 8==7, Maruti 1dyog was renamed Maruti $u"uki #ndia ,imited &he companyEs headquarters are in *urgaon, Baryana Cnear +elhiD

P odu3t'

9==, 3mni, Alto, *ypsy, $wift, $R-, 'agon., )ersa, Qen, 2stilo, *rand )itara, $wift, +"ire, 2eco, .it", A6$tar

+IAT

4< (iat $ P A , an acronym for (abbrica #taliana Automobili &orinoC#talian Automobile (actory of &urinD, is an #talian automobile manufacturer, engine manufacturer, financial and industrial group based in &urin in the Piedmont region (iat was founded in 49<< by a group of investors including *iovanni Agnelli (iat has also manufactured tanks and aircraft

(iat based cars are constructed all around the world @ the largest concern outside #taly is in Bra"il Cbest sellerD #t also has factories in Argentina and Poland (iat has a long history of licensing its products to other countries regardless of local political or cultural persuasion Ioint venture operations are found in (rance, &urkey, 2gypt Cwith the state owned /asr car companyD, $outh Africa, #ndia and 0hina

P odu3t'

1no CdiscontinuedD, Palio, Palio $tile, $iena CdiscontinuedD, $iena 'eekend CdiscontinuedD, Petra CdiscontinuedD, Adventure, (iat 5== @ sold in collaboration with &ata Motors, and (iat ,inea @ sold in collaboration with &ata Motors, *rande Punto

T$t$

&ata Motors ,imited, formerly known as &2,03 C&A&A 2ngineering and ,ocomotive 0ompanyD, is a multinational corporation headquartered in Mumbai, #ndia #t is #ndiaEs largest passenger automobile and commercial vehicle

manufacturing company and a midsi"ed player on the world market #t is a part of the

8= &ata *roup, and one of the worldEs largest manufacturers of commercial vehicles &he 3#0A ranked it as the worldEs 8=th largest automaker, based on figures for 8==;

&ata Motors was established in 4<-5, when the company began manufacturing locomotives &he company manufactured its first commercial vehicle in 4<5- in collaboration with +aimler6Ben" A*, which ended in 4<;< &ata Motors is a dual6 listed company traded on both the Bombay $tock 2!change, as well as on the /ew Sork $tock 2!change &ata Motors in 8==5, was ranked among the top 4= corporations in #ndia with an annual revenue e!ceeding #/. :8= billion #n 8==- &ata Motors bought +aewooFs truck manufacturing unit, now known as &ata +aewoo 0ommercial )ehicle, in $outh ?orea #t also acquired 84A stake in Bispano 0arrocera $A, giving it controlling rights in the company &ata Motor has launched &ata /an with a price of .s 4,==,=== in Ianuary 8==9

P odu3t'

#ndica, #ndigo, #ndigo Marina, $afari, $umo, &, and &ata /ano

H*und$i

Byundai refers to a group of companies and related organi"ations founded by 0hung Iu6yung in $outh ?orea &he first Byundai company was founded in 4<-7 as a construction company, and the Byundai *roup eventually became $outh ?oreaFs largest conglomerate company CchaebolD

84 &he best well6known Byundai organi"ation is the Byundai Motor 0ompany, the worldFs ;th largest automaker Byundai Beavy #ndustries is the worldFs largest shipbuilder, and Byni! is a top semiconductor producer 3ther companies currently or formerly controlled by members of 0hungFs e!tended family may be loosely referred to as a part of the Byundai chaebol

P odu3t'

$antro, *et", i64=, i68=, Accent, )erna, $onata, 2lentra, &ucson

Hond$

Bonda Motor 0ompany, ,imited Cis a Multinational 0orporation, engine manufacturer and engineering corporation headquartered in Iapan &he company manufactures automobiles, motorcycles, trucks, scooters, robots, jets and jet engines, A&), water craft, electrical generators, marine engines, lawn and garden equipment, and aeronautical and other mobile technologies

BondaEs line of lu!ury cars are branded Acura in /orth America and Bongda in 0hina More recently they have ventured into mountain bikes

Bonda is the ;th largest automobile manufacturer in the world as well as the largest engine6maker in the world, producing more than 4- million internal combustion engines each year

88 As of August 8==9, Bonda surpassed 0hrysler as the -th largest automobile manufacturer in the 1nited $tates 0urrently, Bonda is the second largest

manufacturer in Iapan behind &oyota and ahead of /issan

P odu3t' Accord, 0ity, 0ivic and 0.6)

To*ot$

&oyota Motor 0orporation is a multinational corporation headquartered in Iapan, and is currently the worldEs largest automaker appro!imately :4;,=== people around the world As of 8==<, &oyota employs

#n 4<:-, while still a department of &oyota #ndustries, it created its first product &ype A engine and in 4<:; its first passenger car the &oyota AA &he company was eventually founded by ?iichiro &oyoda in 4<:7 as a spinoff from his fatherEs company &oyota #ndustries to create automobiles

&oyota currently owns and operates ,e!is and $cion brands and has a majority shareholding stake in +aihatsu Motors, and minority shareholdings in (uji Beavy #ndustries, #su"u Motors, Samaha Motors, and Mitsubishi Aircraft 0orporation &he company includes 588 subsidiaries

&oyota is headquartered in &oyota 0ity and /agoya Cboth in AichiD, and in &okyo #n addition to manufacturing automobiles, &oyota provides financial services through its &oyota (inancial $ervices division and also builds robots &oyota Motor 0orporation

8: Cincluding &oyota (inancial $ervicesD and &oyota #ndustries form the bulk of the &oyota *roup, one of the largest conglomerates in the world

P odu3t'

>ualis CdiscontinuedD @ :rd generation &oyota ?ijang, 0amry @ 7th generation &oyota 0amry Cthe latest generation 0amryD, 0orolla @ <th generation &oyota 0orolla, #nnova and ,and 0ruiser Prado )R @ latest generation &oyota ,and 0ruiser CP.A+3D

Gene $% &oto '

*eneral Motors 0orporation C*MD C/S$2O*MD, the worldEs second largest automakers, was founded in 4<=9 and today manufacturers cars and trucks in :countries 'ith its global headquarters in +etroit, *M employs 858,=== people in every major region of the world, and sells and services vehicles in some 4-= countries #n 8==9, *M sold 9 :5 million cars and trucks globally under the following brandsO Buick, 0adillac, 0hevrolet, *M0, *M +aewoo, Bolden, Bummer, 3pel, Pontiac, $aab, $aturn, )au!hall and 'uling 1p until 8==<, *M was the worldEs largest automaker, a title it held for 77 consecutive years until being surpassed by &oyota Motor 0orporation in annual sales

P odu3t'

8-

&avera6 rebadged #su"u Panthaer, (orester CdiscontinuedD @ rebadged (irst *eneration $ubaru (orester, Aveo6second *eneration +aewoo ?alos sedan, Aveo 1) @ A fist generaito +aewoo ?alos hatchback, optra6 rebadged +aewoo ,acetti, $.) @ rebadged +aewo ,acetti, $park @ formerly +aewoo Mati" in #ndia, and 0aptiva @ recent launch in #ndia

+o d

&he (ord Motor 0ompany C/S$2O(D is an American multinational corporation and the worldEs fourth largest automaker based on worldwide vehicle sales, following &oyota, *eneral Motors, and )olkswagen Based in +earborn, Michigan, a suburb of +etroit, the automaker was founded by Benry (ord and incorporated on Iune 4;, 4<=: #n addition to the (ord, ,incoln, and Mercury brands, (ord also owns )olvo 0ars of $weden, and a small stake in Ma"da of Iapan and Aston Martin of 2ngland (ordEs former 1? subsidiaries Iaguar and ,and .over were sold to &ata Motors of #ndia in March 8==9

P odu3t'

2scort, #kon, fiesta, endeavour

S7od$

85 &he origins of $koda go back to the early 49<=s where, like many long6established car manufacturers, the company started out with the manufacture of bicycles #t was 49<-, and 8;6year old )Tclav ?lement, who was a bookseller by trade in MladT Boleslav, in todayFs 0"ech .epublic, which was then part of Austria6Bungary, was unable to obtain the right spare parts to repair his *erman bicycle ?lement returned his bicycle to the manufacturers, $eidel and /aumann, with a letter, in 0"ech, asking for them to carry out repairs, only to receive a reply, in *erman, statingO G#f you would like an answer to your inquiry, you should try writing in a language we can understandG A disgusted ?lement, despite not having any previous technical e!perience, then decided to start his own bicycle repair shop, which he and )Tclav ,aurin opened in 49<5 in MladT Boleslav Before going into business partnership with ?lement, ,aurin was an already established bicycle manufacturer from the nearby town of &urnov

'hen, by Iuly 4<-5, the MladT Boleslav factory had been reconstructed, production of $kodaFs first post6''## car, the 44=4 series began #t was essentially an updated version of the pre6''## $koda Popular #n the autumn of 4<-5, $koda Calong with all large manufacturersD became part of the planned economy, which meant it was separated from the parent $koda 0ompany #n spite of unfavorable political conditions and losing contact with technical development in non communist countries, $koda retained a good reputation until the 4<;=s, producing models such as the $koda --= $partak, --5 3ctavia, (elicia and $koda 4=== MB $koda a is now known internationally for building very tough and reliable cars

P odu3t'

8;

3ctavia, ,aura, $uperb, (abia

&$/ind $ 8 &$/ind $

Mahindra % Mahindra ,imited is part of the 1$ M; 7 billion Mahindra *roup, an automotive, farm equipment, financial services, trade and logistics, automotive components, after6market, #& and infrastructure conglomerate &he company was set up in 4<-5 as Mahindra % Mohammed ,ater, after the partition of #ndia, *hulam Muhammad returned to Pakistan and became that nationEs first finance minister Bence, the name was changed from Mahindra % Mohammed to Mahindra % Mahindra in 4<-9

#nitially set up to manufacture general6purpose utility vehicles, Mahindra % Mahindra CM%MD was first known for assembly of the iconic Ieep in #ndia &he company later branched out into manufacture of light commercial vehicles C,0)sD and agricultural tractors, rapidly growing from being a manufacturer of army vehicles and tractors to an automobile major with a growing global market

At present, M%M is the leader in the utility vehicle C1)D segment in #ndia with its flagship 1), the $corpio Cknown as the Mahindra *oa in #talyD

P odu3t

87 Armada CdiscontinuedD, )oyager CdiscontinuedD, Bolero, 0ommander, 0,, MaRR, $corpio and Mahindra and Mahindra 0lassicoducts

&e 3ede'9Ben6

Mercedes6Ben" is e!clusively made for +r .obert $hkreli, owner of )illa $hkreli, who is known for being a savvy businessman across the world Be owns several properties across 1lqin and )uksanaj Be currently sold his land for a record 4= million dollars Be also has a e!treme interests in cars as you can tell with his red Bentley, $ ;5 AM*, and Bullet Proff 260lass k pany, +aimler A* Cformerly +aimlerchrysler A*D, after previously being owned by +aimler6Ben"

Mercedes6Ben" has its origins in ?arl Ben"Es creation of the first automobile in Ianuary 499;, and by *ottlieb +aimler and engineer 'ilhelm MaybachEs conversion of a carriage by the addition of a petrol engine the same year

&he Mercedes automobile was first marketed in 4<=4 by +aimler Motoren *esellschaft &he first Mercedes6Ben" brand name vehicles were produced in 4<8;, following the merger of ?arl Ben"Es and *ottlieb +aimlerEs companies into the +aimler6Ben" company Mercedes6Ben" has, over the years, introduced many technological and safety innovations that have become common in modern vehicles

P odu3t'

89 060lass, 260lass, $60lass, M,60lass, $,60lass, $,?60lass, 0,?60lass, *,60lass and 0,$60lass

B:&:W:

After 'orld 'A. #, BM' were forced to cease aircraft CengineD production by the terms of the )ersailles Armistic &reaty &he company consequently shifted to motorcycle production in 4<8: once the restrictions of the treaty started to be lifted, followed by automobiles in 4<89 &he circular blue and white BM' logo or roundel is portrayed by BM' as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky

An interpretation that BM' adopted for convenience in 4<8<, twelve years after the roundel was created &he emblem evolved from the circular .app Motorenwerke company logo, from which the BM' company grew

&he .app logo was combined with the blue and white colors of the flag of Bavaria to product the BM' roundel so familiar today

&he early success of the outstanding BM' ##A inline6si! aviation engine, from 4<476 49 in 'orld 'ar #, with the ,uftsteritkrafte in a limited number of (okker d )## fighters, as well as a number of prototype Jinline6si!L fighters from various manufacturers, might have actually influenced the BM' logoEs design

8< P odu3t'

: series, 5 $eries, ; $eries, 7 $eries, R: and R5

&it'ubi'/i

Mitsubishi Motors 0orporation is the fifth largest automaker in Iapan and the fifteenth largest in the world by global unit sales #t is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Iapan, and was formed in 4<7= from the automotive division of Mitsubishi Beavy #ndustries

&hroughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president &omio ?ubo to encourage e!pansion, and continued by his successors A significant stake was sold to 0hrysler 0orporation in 4<74 which it held for 88 years, while +aimler0hrysler was a controlling shareholder between 8=== and 8==5 ,ong term joint manufacturing and technology licencing deals with the Byundai Motor 0ompany in $outh ?orea and Proton in Malaysia were also forged, while in 2urope the company co6owned the largest automobile manufacturing plant in the /etherlands with )olvo for ten years in the 4<<=s, before taking sole ownership in 8==4

P odu3t'

:= ,ancer6 $i!th generation Mitsubishi ,ancer, 0edia @ $eventh *eneration Mitsubishi ,ancer, Pajero @ $econd *eneration Mitshubishi Pajero, Montero @ third generation Mitsubishi Pajero, and 3utlander

+UTURE P-ANS O+ &AJOR &AR,ET P-AYERS

&$ uti Su6u7i S#%$'/4

&he ne!t generation 'agon.6 the UsplashE is readyV $u"uki unveiled its UsplashE MP) CMulti Purpose )ehicleD in the (rankfurt Motor $how (irst unveiled as a concept car in 8==; paris motor show, the splash has been put into production in Magyar $u"uki 0orporation in Bungary &he $plash is the fourth new model for the Maruti $u"uki after the launch of $wift, *rand )itara and $R- $plash which the $plash is based on a shortened version of the $wiftEs platform will be the natural choice for the Maruti su"ukiEs ne!t small car in #ndia

Maruti $u"uki splash may have the choice of three engines @ two petrol and a diesel An 4 =6litre :6cylinder petrol unit producing ;5 P$ C-9 k'D and a 4 86litre -6cylinder

:4 petrol engine developing 9; P$ C;: k'D will power the splash Both the petrol engine have four6valve6per6cylinder Maruti $u"uki swiftEs 4 :6litre ++#$ may also be strapped into the new splash All three engines are combined with a 56speed manual gearbo! &he 4 8, petrol splash feature an optional -6speed automatic transmission All the engines of the splash are 2uro-6compliant Acccording to $u"uki, $plash is a multipurpose vehicle that will likely appeal to those with small families and a limited budget.

HYUNDAI I;1

0hoosing a Byundai used to mean buying on a budget but things have changed of late Although the ?orean company still offers value for money, its new family flagship, the i:= Premium, costs W4;,5<5 But is it really worth the outlayK +escribed as a well equipped alternative to (ordEs (ocus, the top6spec model goes up against some classy competition But with a torquey diesel and lu!urious spec, itEs ready to take on the most capable rivals &hereEs no doubt that the i:= looks the part in flagship trim Alloy wheels with chrome inserts complement the neat rear and profile styling 3nly at the front does the Byundai look a bit less attractive

Power comes from a 4:9bhp 8 =6litre diesel that delivers :=-/m of torque #t offers decent refinement and plenty of mid6range punch, but under hard acceleration and at lower speeds, it canEt match the smooth nature of units such as BondaEs acclaimed 8 86litre i60&+i

:8

#tEs better on the motorway, though, where the si!6speed gearbo! makes the most of the unitEs fle!ible power delivery &he shift is accurate, and drivers who cover long distances will certainly benefit from the reduced engine revs at cruising speeds

Bowever, for most buyers the cheaper 4 ;6litre diesel will be a better bet &hat unit returns ;= 4mpg and emits 485gHkm of 038, which beats the larger engine by 9 7mpg and 8=gHkm respectively 'hatEs more, it costs W4,=== less to buy

Hond$ J$66

J&he Ia"" will be a premium segment hatchback and we do not e!pect that it will overcome the sales number of the 0ity sedan in #ndia L Masahiro &akedagawa, president and 023 of the companyEs subsidiary Bonda $iel 0ars #ndia, said, when asked whether the new car, that would mark the companyEs entry in the volume6 segment, become its leading brand for sales Bonda is currently grappling with the problem of making Ia"" Cwhich would sport a 4 86litre petrol engineD, price6 competitive for the #ndian market &he Ia"" is priced higher than the 0ity in many foreign markets, but still manages to see more, as Mr &akedagawa said

Bowever, the #ndian market is price conscious and analysts point out that people may not be very eager to pay a big price for a hatchback, despite its lu!ury and safety features &akedagawa, however, said he was not worried about the premium tag

:: associated with the Ia"" J&he price or premiumness will be determined by the customer 'e are confident that the model will be well accepted in #ndia,L he said

&he 0ity sedan currently sells for .s 7 569 ; lakh Ce!6showroom +elhiD and averages around 5,=== cars in monthly sales &he Ia"" would share the platform and many components with 0ity, making it easier for Bonda to source the inputs in bulk at competitive prices and keep localisation at over 7=A initially

Ia"" gets the premium tag due to the companyEs focus on making it lu!urious and safe by adding features like airbags, AB$ Canti6lock braking systemD and *603/ &echnology Can advanced passive shielding that offers the occupant a survival "one in case of an unavoidable collisionD Bonda, however, believes that customers would be willing to pay for the additional features

+ORD +o3u'

(ord #ndia, the local arm of the 1$6based automobile giant, is getting set to roll out its fourth offering @ after #kon, Mondeo and sports utility vehicle 2ndeavour @ in a bid to scale up its volumes in the domestic market (ord (ocus 0ompany officials are tightlipped about the new car All they are ready to reveal at this juncture is that the new model 6 developed globally with #ndia6specific inputs 6 should draw similar volumes as the #kon, its flagship model in #ndia G'e would want the new model to make its debut here with a localisation of around 7=A 'e hope it brings in volumes in line with the domestic sales of #kon,G (ord #ndia vice president Cmarketing and e!ternal affairsD )inay ? Piparsania told &he 2conomic &imes

:-

(ord, market observers feel, could "ero in on its best selling model, (ocus, in the #ndian market to bridge the gap between the #kon and the Mondeo G3ur new model will be positioned a notch below the #kon, or between the #kon and the Mondeo At this juncture we wonFt be able to comment on its e!act positioning,G Piparsania said

(ord #ndia, which aggregated domestic sales of 49,;== units in the last calender year, sold 4,<=: units of the #kon in Ianuary X=- and 8,=89 units last month 2!ports of the #kon during Ianuary6(ebruary X=- stood at :,-<9 units

0ompany officials however rule out the introduction of a small car in the already crowded B segment saying that it may not be GfeasibleG cost6wise 'hile the various versions of the (ord #kon carry a price tag of .s 569 lakh, the top6end Mondeo, which is imported as completely built units, costs around .s 47 lakh (ord #ndia, which has an installed capacity of 5=,=== units at its manufacturing facility near 0hennai, is meanwhile beefing up its distribution network on the eve of rolling out its new model G&his year our target is to increase the number of distribution outlets to 4=5 C<= last yearD in 95 locations,G Piparsania said (ord #ndia is also aggressively hawking its sports utility vehicle 2ndeavour, which has sold 5=4 units late last year &he company is targeting to sell 47=649= units of the $1) every month in the current calendar year

To*ot$

BangaloreH/ew +elhiO #tEs finally official &oyota will have as small car in its #ndian line6up in two years And the car will be produced at its Bidadi facility near

:5 Bangalore After being a fringe player in the fast6growing market for years, the worldEs /o 8 car maker on (riday announced a .s 4,-== crore fresh investment for a new factory to launch a Jnew strategic small carL in the #ndian market by 8=4=

J&he car currently being developed in Iapan will meet the broad needs of customers in #ndia Bowever, we will also e!port the car from #ndia,L ? ? $wamy, deputy managing director of &oyotaEs #ndian subsidiary &oyota ?irloskar Motor C&?MD, told &3# &oyota is unlikely to want to compete in the &ata /ano segment, but the new car is e!pected to be as per the Usmall carE definition specified by the #ndian government to enjoy the lower 48A e!cise duty, as against the 8-A on big cars $wamy declined to answer questions on the price point for the car &he new plant is e!pected to generate direct employment of 4,9== to 8,=== people JBut including that of our suppliers, we e!pect the total fresh employment to be close to 7,===,L $wamy said

&he e!isting plant, which manufactures the 0orolla sedan and the multi6utility vehicle #nnova, employs 8,7== people &he company also imports the 0amry lu!ury sedan and the Prado &?M currently uses only 48= acres of the total -:=6acre plot it has in Bidadi $wamy said that along with the new plant there would be additional investments in ancilliary services, a power plant, a new office building and a parking yard for manufactured vehicles &oyota is believed to have "eroed in on key vendors for the project and $wamy said the company planned to start with an initial production capacity of 4 lakh passenger cars J'hile much of it would be for the small car, we will also manufacture the 0orolla in the new plant,L he said &oyotaEs small car plans in #ndia come just when e!isting domestic heavyweights like

:; Maruti6$u"uki and Byundai are strengthening operations and others like Bonda and )olkswagen are planning to launch compacts 0ompacts account for around 7=A of car sales $peculation about a &oyota small car started almost three years ago, when it was said to be considering introducing a car from its associate company +aihatsuEs stable

&oyota has an 9<A stake in its #ndian joint venture while the rest is held by the ?irloskars $wamy declined to say whether the new investments will come in the same proportion Be said some of the key suppliers were considering to invest around the Bangalore plant and pointed out that the company planned to have a high local content for its compact to make it competitive in the price6sensitive market &he companyEs e!isting plant has a capacity of around ;:,=== units #t sold 55,-=: units in #ndia in 8==76=9 and had a low : 5A share of the passenger vehicle market

B&W +2;

&he present generation ; series isnEt e!actly a pretty car Cmind you, i just love itVD, but the opinion is divided 'ith the latest generation 7 series going a bit conservative, you might be tempted to think that other models would follow suit &he camo gives very less away and is cleanly covered giving nothing away &he ne!t generation BM' ; $eries, dubbed (4: and due to be launched in 8=4=, has been spotted in Munich

&he test mule comes as a surprise as two years before the official launch, the test mules are usually JequippedL with heavy plastics that fake the real shape of the car,

:7 but in this case, BM' is at a stage where theyEre using the now6famous patterned camouflage

&here are a few things we know about the (4: at this moment, BM' will not be drastically changing the current successful design, it will be longer than the current model, the headlights will be similar to the ones on the 0$ 0oncept, but will not have the circular cut out, just a straight across slit

&he driver6oriented cockpit will make its return as seen in the new 7 $eries and most likely, there will be a hardtop similar to the ones in the : $eries cabs As far as the engine line6up, itEs still too early to speculate, but we will definitely see a more powerful engine in there along with BM'Es new eight6speed automatic gearbo! Also e!pected are BM'Es strong diesel versions &his would make a lot of sense in #ndia as the only options available are the - =l )9 and the M; with 5 =l )4=

&e 3ede' Ben6 +<11

Mercedes Ben", plans to introduces a pack of new and high6end lu!ury cars in #ndia with highly creative designs, astonishing technologies, and unmatched standards &he company is working on to design and produce path6breaking car models that holds the power to revolutioni"e the lu!ury car market in #ndia &ill date, all the car models introduced by Mercedes including the Mercedes6Ben" 260lass, Mercedes6Ben" 06 0lass, and Mercedes6Ben" $60lass are the perfect reflection of innovation, technology, and advancement

:9

#n future, the company also has plans to bring in the (7==, a low6emission petrol concept, which made its debut at the 8==7 #nternational Motor $how &he car was showcased with the new +#2$3&&3 drive system that emits only 487 gmHkm of carbon dio!ide Another great characteristic of the car is the fuel6consumption of only 5 : litresH4== km, which is e!tremely low for a car in this segment

&he (7== also comprises the worldEs first P.26$0A/ suspension with two laser scanners that are capable to gauge the road ahead of the car for bumps and rough spots #n addition, a virtual assistant car technology christened as UAvatarE also adds to the charm of this future car model &his innovative technology communicates all the required information with the driver &hough, there are no final dates for the launch of this car in #ndia or in the global market, Mercedes looks ahead to introduce similar concept cars with improved technologies and features

S,ODA YETI

(inally $kodaEs Seti has come out of hidingV (ollowing last weekEs spy shots, $koda has pulled the wraps off its first6ever off6roader at the *eneva Motor $how

#t comes with front or four6wheel6drive, and aims to appeal to people who donEt want a Ufull6onE off roader &he Seti is similar in si"e to the .oomster supermini6MP), and is just as practical inside, with up to 4,7;= litres of boot space #n the front, the raised seating position should provide drivers with a great view of the road ahead

:< 1nder the bonnet, buyers will be able to choose from a wide range of turbocharged engines &he petrol line6up kicks off with a front6wheel6drive 4=-bhp 4 8 &$# model, and is topped off by a -!- 459bhp 4 9 &$# version

C/e= o%et &$%ibu

&he 8==< 0hevrolet Malibu ranks 4 out 8: Affordable Midsi"e 0ars &his ranking is based on our analysis of ;; published reviews and test drives of the 0hevrolet Malibu, and our analysis if reliability and safety data

$ince its 8==9 redesign, the 0hevrolet Malibu has been the surprise of the automotive world &he car has won praise for its stylish good looks, spacious, well6designed and sharp passenger cabin, solid safety and driving dynamics that impress many who think they know *M products &he 8==< 0hevy Malibu is competing with perennial class6leaders like the Bonda Accord and &oyota 0amry @ and in many cases, itEs beating them out

&he automotive press has grown accustomed to family sedans that offer some of the charms of sports, sedans, some of the amenities of lu!ury cars, and some of the economic advantages of yesterdayEs midsi"e cars But auto writers seem pleasantly surprised to find one wearing chevyEs bowtie badge &he 8==9 Malibu took home a trunkful of awards from the press @ one of the 0ar and +riverEs 4=Best, /orth American car of the year at the /orth American #nternational Auto $how in Ianuary 8==9, ?iplinger maga"ineEs JBest in class,L Automobile Maga"ineEs 8==9 Automobile All6starts @ the list goes on and on

-=

&he Malibu now threatens the tradition favourite in this class #tEs a viable alternative to the popular Bonda Accord and &oyota 0amry, and should be on your test drive list before you put money down on either of those #f youFre looking for something more e!citing, however, many find the all6new 8==< Ma"da; a more enthusiastic ride, particularly in corners, and a better6looking car

Because of the success of the 8==9 model, Motor &rend reports, 0hevrolet Gpurposely kept the 8==< model year changes to a minimum &he most noteworthy include an e!panded offering of the fuel6wise 8 -,H;6speed automatic powertrain combo, four new e!terior colors, and the addition of Bluetooth with the new 3n$tar 9 = system G

0hevrolet has also taken steps to improve the MalibuEs fuel economy for 8==<, reacting to a market in which most consumers are concerned about high gas prices #f fuel economy is an important consideration to you, keep in mind thatEs 8==< 0hevrolet Malibu Bybrid is also available and is received separately

&he 8==< Malibu is available in four trim levels, with a choice of two engines and three transmissions

&o 0hevroletEs credit, even the most well6appointed ,&Q trim level is available with the most fuel6efficient powertrain @ a 8 -6litre four6cylinder engine and a si!6speed transmission Many of the MalibuEs rivals couple their highest trims only with their thirstiest engines

-4

CONSU&ER BEHAVIOR &ODE/eed .ecognition #nternal $earch $earch Alternative 2valuation 2nvironment influences

2!posure Attention 0omprehension Acceptance .etention

$timuli Marketer dominated 3ther

Memory

Purchase

#ndividual differences

3utcomes 2!ternal .esearch +issatisfaction $atisfaction

T/e En5e%> B%$37?e%% $nd &ini$ d mode% o" 3on'ume Be/$=iou

-8 &his model was chosen as it is applicable when the objective is to gain a holistic understanding of the purchase process #n this study, it was employed as a framework to look at car purchase and to emphasis the flow of information A brief description of the model is as followsO

&he initial stage in the decision process is need recognition &here are three determinants of need recognitionO 4D information stored in memory, 8D individual differences :D 2nvironmental influences

&his step is followed by an information research process #nternal search into memory is done first to determine whether enough is known about available options 2!ternal search will usually be required when this is not the case

(or this to happen, information and persuasive communication must reach the consumers &his is called e!posure &his information then captures the consumerEs attention &his is more likely to occur when the incoming message relevant #f attention is attracted, the message is further analy"ed against categories of meaning stored in memory resulting in comprehension &he incoming message is then compared against e!isting beliefs, attitudes and other factors stored in the memory Any or al of these may be modified as a result, leading to acceptance

Alternative evaluation is concerned with the evaluation of different products At this stage consumer compares all the available options which heHshe can purchase

-: &his process culminates in purchase Most often, this takes place in some type of retail outlet Alternative evaluation does not cease with purchase #t continues and results in various outcomes #f e!pectations are matched, the outcome is satisfaction 3therwise dissatisfaction arises Both these outcomes have further effect on the decision process as shown in the figure A productEs failure to perform will not be accepted easily, especially when the purchase is of high perceived importance 2ven the after sales service plays a very important role

0ompanies can use this model in the following wayO

/eed recognition @ At first stage company can generate the need nu stretching their advertisement on ego needs, lu!ury needs or any other need which can induce the consumers to go for the purchase of big cars

#nformation search @ 3nce the need is generated, consumer will do information search At this stage company should do advertise in several medias like television, news paper, internet, maga"ines, etc Advertisement is very important because by this consumers get to know about products and its brands

2valuation of alternativesO At this stage consumer evaluates the product with several other products &herefore company should do comparative

advertisement, should offer a test drive at consumers place, etc which helps the consumer in evaluation process

-Purchase @ At this stage in order to attract the consumer, company should give attractive financing options, as most of the consumers purchase the car on loan

3utcomes of purchase @ #n order to satisfy and remain the customer company should give e!cellent after sales service, should give 8- hrs on road service and every other possible assistance to the consumer

RESEARCH &ETHODO-OGY

&he #ndian market is growing rapidly and the rate at which the consumption of brands and products are increasing is alarming 0onsumers now have a lot more options as compared to ten years back and this affects the entire purchase process that they undertake to decide on product or brand purchase $ome of the markets which have shown tremendous growth in the last few years are the automobile market, high6end electronics and consumer durables Automobiles are considered lifetime mates and thus provide a good study

-5 &he purchase behavior of the consumers differs greatly across the many products categories that they invest in from something that is (M0* product to a high6end electronic white good, the purchase behavior and the attributes involved are vastly different 0onsumers go through many stages of the decision process, like the identification of the need, the information processing, learning process, identifying brand choice, purchase intention, store visits, time and many more factors

(or marketers it poses an even bigger problem of having to continuously keep up with the consumers needs &he biggest cost the marketers face today is the most of acquiring a customer and retaining him &his cost can be brought down by turning customers into loyalists and generating repeat purchases from the same set of customers

&he research problem can thus be stated asO

&o identify and analy"e the variables responsible for the purchase of big cars C$edan, $1) and M1)D and arrive at a logical conclusion that would e!plain and integrate the factors to predict the purchase

&he research objectives of this study hence areO

&o establish a relationship between the variables involved in the purchase of big cars

-; &o understand the main motivations for purchasing a car

&o find out the various types of information, its sources and its routes in the purchase process

Re'e$ 3/ De'i5n

&he study tried to identify certain variables responsible for purchases &his meant that a qualitative study had to be undertaken before data could be collected using a questionnaire

A qualitative study was performed among the following set of peopleO

0ar dealersO 5 in6depth interviews with the car dealers

>uestions asked to the dealer were open ended

According to you which factors influence more to consumers while purchasing the carK

'hat are the important features that people want in there carK *enerally how people finance there purchaseK Bow many people take test drives on there visit to showroomK /umber of people purchases the car after the test driveK 'hich fuel engine generally they preferK

-7

&he study provided with the basis for a questionnaire study A questionnaire study was conducted in once center with a sample si"e of 48=

T/e 'e%e3tion 3 ite ion "o 3/oo'in5 e'#ondent' ?$' $' "o%%o?'4

&he purchase should have been a first hand one Again, this restriction was placed to ensure that information on all stages of decision making was collected and there was no bias caused by e!ternal factors

T/e e'#ondent '/ou%d o?n $ bi5 3$ : (Sed$n> SUV o &UV)

DATA ANA-YSIS AND INTERPRETATION

'hich car do u ownK Ccompany and model nameD

-9

(or consumers there is wide variety of choice for purchasing a car #n 7=s and 9=s there was limited choice, but now there are many options including many foreign companies like Bonda, &oyota, Byundai, Merceds6ben", B M ' , etc -5A people own &oyota 0orolla and ;A own &oyota #nnova People having (iat, BM' , Bonda, (ord, Maruti ranges from 8 6- A $o from survey # can say that most of the people prefer to buy big car from &oyota 0ompany

.eason for not having $edan, $1) or M1)

price of the car easy availability of hired vehicle maintenance cost fuel cost driving problem in traffic

49% 4% 25% 4% 18%

-<

Price of the car was the main reason for not having the big cars -<A people say that they are not buying big car because of its price After the price at second level people rate maintenance cost and driving problem in traffic as important reason (uel cost and maintenance cost was not very important reason for most of the people

'hen did you purchase this vehicleK

5=

less than 6 months 6 months- 1 year 1 year -2 year more than 2 year

12% 16% 20% 52%

#n the survey most of the people who have respond to the questionnaire have purchased there vehicle before 8 years

54

'hatEs your family incomeK

ess than 6 lac 6 lac - 8 lac 8 lac - 10 lac 10 lac- 14 lac more than 14 lac

10% 25% !0% 26% 9%

As these cars are quiet e!pensive, #ncome plays a very important role in the buying decision $ome of the cars of the company like Mercede"6ben" and B M ' costs above 85 lakhs #n my survey :=A respondents falls in the category of income level of 964= lac 8;A in 4=64- lac and 85A in ; to 9 lac $o majority of respondent are in the income level above ; lacs

58

Bow do you finance the purchase of your carK

self loan others

8% 90% 2%

+ue to easy availability of the loans and financing options most of the people are opting for them &here are very few people who have enough amounts that they can easily put in for the purchase of vehicle Most of the people prefer for going into the finance schemes as they have pay a small amount of down payment and the rest they can pay conveniently in small installments

5:

(or whom did you buy this vehicleK

self #ife son daughter other family member "4% 11% 8% 5% 2%

A large number of peoples has purchased the vehicle for their own use (ew number of peoples has purchased the car for their wife, son or daughter

5-

'hich type of fuel engine you preferK

petrol desel gas

68% 2!% 9%

Most of the people prefer to use petrol engine rather than diesel or gas /umber of people who prefer gas were very less

55

Bow frequently you prefer to change your vehicleK

1-2 year 2-! year !-5 year more than 5 year 5% 1"% 5!% 25%

Most of people prefer to change their vehicle between : to 5 years as these cars are quite e!pensive 3nly 5A of people prefer to change their vehicles before 8 years

5;

<

'hat was the most important reason for buying a particular brandK
$restige %as strong dealer net#or& 'no#n for superior engineering ( trust #orthy company %as good service net#or& 22% "% !!% 26% 12%

57 $uperior engineering, &rust worthy company and prestige were the most important reason for the people for buying a particular brand $ervice network and strong dealer network are not very much important for the consumer to buy a car

4=

'hich factors are more important to you when you plan to purchase carK
)rand of *ar $rice of the car fuel cost maintenance cost %andling of vehicle +tyling of the vehicle *omfort of the vehicle ,tility of the vehicle -eliability of the vehicle (verage $ic& up 14% 15% 4% 10% 5% 15% "% 6% 11% "% 6%

59

All the factors were important to the car owner but among these price, brand, styling, reliability and maintenance cost of the car were the most important factor

44

Are you happy with your dealerK

yes no 92% 8%

5<

A very large number of the people are happy with their dealer As there are many dealers in competition with each other all are trying to give there bet service to satisfy and retain the customer

48

Bow you rate your service offered by your authori"ed dealerK

good averag e "9% 1!%

;=
bad 8%

As large number of the people were satisfied with their dealers, most of them have rated the service of their dealer as good

4:

Bave you seen advertisement of your carK

yes no 91% 9%

;4

;8

Appro!imately <4A, A large number of people have seen the advertisement of

maga.ine internet television ne#spap er %oarding 12% 12% 26% !1% 19%

the car As the car companyEs have to advertise their product in several media due to the tough competition, there are more chances of the people to get e!pose to these advertisements

4-

'here did you saw this advertisementK

;:

People have seen the advertisement in several media Among these most of the people have seen the advertisement in news papers, on television, and on hoardings &hough the usage of internet and television is more , company gives more advertisement in newpaper

45

#f a friend or a colleague who is planning to buy a car and if he comes to you a for advice, would you suggest your carK
yes no 91% 9%

;-

<4A of the people says that they will suggest there car to there friend or colleague, from this we can make out that large number of people are satisfied with there car

+INDINGS AND CONC-USION

;5 (rom the e!ploratory survey with dealers it was found that #ncome, age, gender are very important factors that influence the purchase decision According to dealers people give more weightage to the brand engine, comforts, price and reliability of the vehicle 3n an average 9 people out of 4= take test drive of the car on their visit to the showroom 5 people out of 4= purchase the car after taking the test drive According to dealer 9=A to <=A people purchase the cars on loan Most of them prefer petrol engines according to the dealerEs response (rom the questionnaire study it was found that most of the people who are the owners of big cars C$edan, $1), M1)D prefer to buy the cars of the companyEs who is having a very good brand image and superior engineering &he owner of the big cars prefer to buy very good brands like Audi, B M ' , Mercedes ben", Bonda, &oyota, $koda, Bundai, Maruti6su"uki &he owners of these cars do not prefer much to buy the brands like &ata, (iat and Mahindra % Mahindra &hey think that there engines are not as good as other brands and they are not as reliable as others +ue to easy availability of the loans and financing options most of the people are opting for them &here are very few people who have enough amounts that they can easily put in for the purchase of vehicle Most of the people prefer for going in to the finance schemes as they have to pay a small amount of down payment and the rest they can pay conveniently in small installments

;; Most of the people purchase the vehicles for their own purpose As these big cars are high prices very few people prefer to purchase these cars for other family members *ood number of people prefers to use petrol engine as they are smooth in using and does not make noise while running Another reason for not using the diesel engine was its high maintenance cost

&he people who have very big long distance running prefer to have diesel engine as diesel is cheap and also gives good average by which its high maintenance cost gets off in long running

According to survey it was found that people prefer to have $1)s and M1)s when they want to go for diesel engine and like to have sedans in case of petrol engine

#t was found from the study that most of the people prefer to change their vehicle between : to 5 years or more than 5 years as these cars are quiet high priced

(or the owners of these cars, most important reason for buying a particular brands was its superior engine, trust worthy company and prestige which brad gives

#t was also found that these car owners were not much concerned about the average of the car e!cept the car owners who prefer diesel engines

;7 Most of the owners were happy with their dealer +ealers try to give their best services and try to retain the customer as there are other dealers competing with each other for the same brand #t was found that a large number of the car owners were happy with their car and brand and they were ready to advice the same car to their friends and colleague

;9

RECO&&ENDATIONS
&he companies should concentrate on making superior engineering, design of the car and should try to enhance there brand image as these are the most important factors which buyers considers before purchasing these segment of cars 0ompanies should introduce these segment o cars at little low price as the price is one of the important factor for the people for not having a big car According to the survey, appro!imately <=A of the people purchase car on installments, therefore it is very important for the companies to offer attractive financing options in order to attract the customers 0ompanies manufacturing diesel cars should try to decrease its maintenance cost and noise as these two are the main reasons for the people to have petrol engines #t was found that most of the people have seen the advertisement of cars in news paper, television and hoardings, so the companies should concentrate more on these medium in order to communicate and attract more consumers 0ompanies should give proper training to dealers, as some people were not satisfied by their dealers service and this could lead the people to shift to other brands

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,#M#&A&#3/$

&his study does not take into consideration consumer behavior regarding small cars

&he study was conducted in one center i e Ahmedabad &his restricts the scope of research by limiting the spread across #ndia

&he study would be more comprehensive if the data collected was over a period of time, and with a panel

&he car market in #ndia is e!tremely dynamic, after the completion of the data collection some manufacturers may have pulled out certain models while some may have come up with new models in the market, this study does not capture those changes

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B#B,#3*.APBS

www carewale com www timesofindia com www india car net www cara"oo com www wikipedia com www team6bhp comHforumHindia6car6scene www toostep comHtrendsHindian6autombole consumer behviour book C&he 2ngel, Blackwell and MiniardD

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@UESTIONNAIRE
4 'hich 0ar do you ownK

'hat is the reason for not having a sedan or suvK Price of the car (uel cost +riving problem in traffic Maintenance cost 2asy availability of hired vehicle

'hen did you purchase this vehicleK ,ess than ; months ; months to 4 year 4 o 8 year More than 8 year

'hat is your family income ,ess than ; lac ; lac @ 9 lac 9 lac @ 4= lac 4= lac6 4- lac More than 4- lac

78

Bow did you finance the purchase of your carK $elf ,oans 3thers

(or whom did you buy this vehicleK $elf 'ife $on +aughter 3ther family members 3thers

'hich type of fuel engine you preferK Petrol +iesel *as

Bow frequently you prefer to change your vehicleK 46 8 year 86: year :65 year More than 5 year

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<

'hat was the most important reason for buying a particular brandK Ctick whichever is applicableD #f gives your prestige Bas a strong dealer network ?nown for superior engineering A trust worthy company Bas a good servicing network

4=

(rom the following which factors are more important for you when you plan to purchase carK C.ate them by giving them score out of five, 4 is min, and 5 is ma! D Brand of the car Price of the car (uel cost Maintenance cost Bandling of the vehicle $tyling of the vehicle 0omfort of the vehicle 1tility of the vehicle .eliability of the vehicle Average Pickup

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44

Are you happy with your dealerK $pecify your dealerEs name Ses /o _______________

48

Bow you rate your service offered by your authori"e dealerK *ood Average Bad

4:

Bave you seen advertisement for carK 'hich ones do you rememberK 0an you describe them to meK _____________________________________________________ _____________________________________________________ 4- 'here did you see this advertisementK /ewspaper &elevision Boarding Maga"ine #nternet

45 #f a friend or a colleague who is planning to buy a car and if he comes to you for advice, would you suggest your carK Ses

75 /o Personal +etailsO /ame of respondentO ____________________________________________ .esidential AddressO ______________________________________________ ______________________________________________ &elephone /oO _____________________ AgeO ______________ (amily income CyearlyD ___________ Pin 0odeO __________________

3ccupationO _____________________ 0ityO ____________________ +ateO __________________