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HlST0RY 0F AuT0H0llFS

By deIinition an automobile or car is a wheeled vehicle that carries its own motor and transports
passengers. The automobile as we know it was not invented in a single day by a single inventor.
The history oI the automobile reIlects an evolution that took place worldwide. It is estimated that
over 100,000 patents created the modern automobile.

The history oI the automobile begins as early as 1769, with the creation oI steam engine
automobiles capable oI human transport. In 1806, the Iirst cars powered by an internal
combustion engine running on Iuel gas appeared, which led to the introduction in 1885 oI the
ubiquitous modern gasoline- or petrol-Iueled internal combustion engine. Cars powered
by electric power brieIly appeared at the turn oI the 20th century, but largely disappeared Irom
use until the turn oI the 21st century. The need to reduce the amount oI air pollution generated by
transportation has raised new interest in electric and hybrid vehicles. The early history oI the
automobile can be divided into a number oI eras, based on the prevalent method oI automotive
propulsion during that time. Later periods were deIined by trends in exterior styling, and size and
utility preIerences.






Fig: The design of the Cugnot Steam Trolley (Jonathan Holguinisburg) (1769)
!l0tFFR ltvFtT0RS
erman engineer Karl Benz, the inventor oI numerous car-related technologies, is generally
regarded as the inventor oI the modern automobile, and received a erman patent in 1886. The
American Ceorge B. Selden Iiled Ior a patent on May 8, 1879. His application included not only
the engine but its use in a 4-wheeled car. Mr. Selden Iiled a series oI amendments to his
application which stretched out the legal process, resulting in a delay oI 16 years beIore the US
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was granted on November 5, 1895. The Iour-stroke petrol (gasoline) internal
combustion engine that constitutes the most prevalent Iorm oI modern automotive propulsion is a
creation oI erman inventor Aikolaus Otto. The similar Iour-stroke diesel engine was also
invented by a erman, RudolI Diesel. The hydrogen Iuel cell, one oI the technologies hailed as a
replacement Ior gasoline as an energy source Ior cars, was discovered in principle by yet another
erman, Christian Friedrich Schnbein, in 1838. The battery electric car owes its beginnings to
Hungarian Anyos 1edlik, one oI the inventors oI the electric motor, and Caston Plant, who
invented the lead-acid battery in 1859.
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FARlY AuT0H0llFS
Steam automobiles
erdinand Verbiest, a member oI a Jesuit mission in China, built the Iirst steam-powered vehicle
around 1672, designed as a toy Ior the Chinese Emperor, it being oI small scale and unable to
carry a driver or passenger but, quite possibly, the Iirst working steam-powered vehicle ('auto-
mobile').

Fig : A replica of Richard Trevithick's 1801 road locomotive 'Puffing Devil'


Steam-powered selI-propelled vehicles are thought to have been devised in the late-18th
century. Nicolas-Joseph Cugnot demonstrated his fardier a vapeur, an experimental steam-
driven artillery tractor, in 1770 and 1771. As Cugnot's design proved to be impractical, his
invention was not developed in his native rance. The centre oI innovation shiIted to reat
Britain. By 1784, William Murdoch had built a working model oI a steam carriage in Redruth,
and in 1801 Richard Trevithick was running a Iull-sized vehicle on the road in Camborne. Such
vehicles were in vogue Ior a time, and over the next decades such innovations as handbrakes,
multi-speed transmissions, and better steeringdeveloped. Some were commercially successIul in
providing mass transit, until a backlash against these large speedy vehicles resulted in the
passage oI the Locomotive Act (1865), which required selI-propelled vehicles on public roads in
the United Kingdom to be preceded by a man on Ioot waving a red Ilag and blowing a horn. This
eIIectively killed road auto development in the UK Ior most oI the rest oI the 19th century;
inventors and engineers shiIted their eIIorts to improvements in railway locomotives. The law
was not repealed until 1896, although the need Ior the red Ilag was removed in 1878.
In Russia in the 1780s, Ivan Kulibin started working on a human-pedalled carriage with a steam
engine. He Iinished working on it in 1791. Some oI its Ieatures included a Ilywheel,
brake, gearbox, and bearing, which are also the Ieatures oI a modern automobile. His design had
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three roadwheels. The Czarist government Iailed to see the potential market, there was little
private development, and the vehicle was not developed Iurther.
The Iirst automobile patent in the United States was granted to Oliver Evans in 1789. In 1805,
Evans demonstrated his Iirst successIul selI-propelled vehicle, which not only was the Iirst
automobile in the USA, but was also the Iirst amphibious vehicle. His steam-powered vehicle
was able to travel on roadwheels on land, and via a paddle wheel in the water.
The Iirst carriage sized automobile in the United States was a steam powered vehicle invented in
1871, by Dr. J.W. Carhart, a minister oI the Methodist Episcopal Church, in Racine, Wisconsin.
It induced the State oI Wisconsin in 1875, to oIIer a $10,000 award to the Iirst to produce a
practical substitute Ior the use oI horses and other animals. They stipulated that the vehicle
would have to maintain an average speed oI more than Iive miles per hour over a 200 mile
course. The oIIer led to the Iirst city to city automobile race in the United States, starting on July
16, 1878, in reen Bay, Wisconsin, and ending in Madison, via Appleton, Oshkosh, Waupun,
Watertown, ort Atkinson, and Janesville. While seven vehicles were registered, only two started
to compete: the entries Irom reen Bay and Oshkosh. The vehicle Irom reen Bay was Iaster,
but broke down beIore completing the race. The Oshkosh Iinished the 201 mile course in 33
hours and 27 minutes, and posted an average speed oI six miles per hour. In 1879, the legislature
awarded halI the prize.
Among other eIIorts, in 1815, a proIessor at Prague Polytechnich, JoseI Bozek, built an oil-Iired
steam car. Walter Hancock, builder and operator oI London steam buses, in 1838 built a Iour-
seat steam phaeton. Steam-car development continued, leading to signiIicant advances by the
early 1900s .
lectric automobiles
In 1828, Anyos Jedlik, a Hungarian who invented an early type oI electric motor, created a tiny
model car powered by his new motor. In 1834, Vermont blacksmith Thomas Davenport, the
inventor oI the Iirst American DC electrical motor, installed his motor in a small model car,
which he operated on a short circular electriIied track. In 1835, ProIessor Sibrandus Stratingh
oI roningen, the Netherlands and his assistant Christopher Becker created a small-scale
electrical car, powered by non-rechargeable primary cells. In 1838, Scotsman Robert
Davidson built an electric locomotive that attained a speed oI 4 miles per hour (6 km/h). In
England, a patent was granted in 1840 Ior the use oI rail tracks as conductors oI electric current,
and similar American patents were issued to Lilley and Colten in 1847. Between 1832 and 1839
(the exact year is uncertain), Robert Anderson oI Scotland invented the Iirst crude electric
carriage, powered by non-rechargeable primary cells.
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3ter3al combustio3 e3i3es




Fig: 1885-built Benz Patent Motorwagen, the first car to go into production with an internal combustion
engine


Fig: 1870, Vienna, Austria: world's first gasoline-run vehicle, the 'first Marcus car'


Fig: The second Marcus car of 1888 (Technical Museum Vienna)
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Early attempts at making and using internal combustion engines were hampered by the lack oI
suitable Iuels, particularly liquids, and the earliest engines used gas mixtures.
Early experimenters using gases included, in 1806, Swiss engineer ranois Isaac de Rivaz who
built an internal combustion engine powered by a hydrogen and oxygen mixture, and in
1826,Englishman Samuel Brown who tested his hydrogen-Iuelled internal combustion engine by
using it to propel a vehicle up Shooter's Hill in south-east London. Belgian-born Etienne
Lenoir's Hippomobile with a hydrogen-gas-Iuelledone-cylinder internal combustion engine made
a test drive Irom Paris to Joinville-le-Pont in 1860, covering some nine kilometres in about three
hours.
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A later version was propelled by coal gas. A Delamare-Deboutteville vehicle was
patented and trialled in 1884.
About 1870, in Vienna, Austria (then the Austro-Hungarian Empire), inventor SiegIried
Marcus put a liquid-Iuelled internal combustion engine on a simple handcart which made him the
Iirst man to propel a vehicle by means oI gasoline. Today, this car is known as "the Iirst Marcus
car". In 1883, Marcus secured a erman patent Ior a low-voltage ignition system oI
the magneto type; this was his only automotive patent. This design was used Ior all Iurther
engines, and the Iour-seat "second Marcus car" oI 1888/89. This ignition, in conjunction with the
"rotating-brush carburetor", made the second car's design very innovative.
It is generally acknowledged that the Iirst really practical automobiles with petrol/gasoline-
powered internal combustion engines were completed almost simultaneously by several erman
inventors working independently: Karl Benz built his Iirst automobile in 1885 in Mannheim.
Benz was granted a patent Ior his automobile on 29 January 1886, and began the Iirst production
oI automobiles in 1888, aIter Bertha Benz, his wiIe, had proved - with the Iirst long-distance trip
in August 1888, Irom Mannheim to PIorzheim and back - that the horseless coach was absolutely
suitable Ior daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.
Soon aIter, ottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle Irom
scratch to be an automobile, rather than a horse-drawn carriage Iitted with an engine. They also
are usually credited with invention oI the Iirst motorcycle in 1886, but Italy's Enrico Bernardi oI
the University oI Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-
cylinder petrol motor, Iitting it into his son's tricycle, making it at least a candidate Ior the Iirst
automobile, and Iirst motorcycle. Bernardi enlarged the tricycle in 1892 to carry two adults.
One oI the Iirst Iour-wheeled petrol-driven automobiles in Britain was built in Birmingham in
1895 by rederick William Lanchester, who also patented the disc brake; and the Iirst electric
starter was installed on an Arnold, an adaptation oI the Benz Velo, built between 1895 and 1898.
In all the turmoil, many early pioneers are nearly Iorgotten. In 1891, John William Lambert built
a three-wheeler in Ohio City, Ohio, which was destroyed in a Iire the same year, while Henry
Nadig constructed a Iour-wheeler in Allentown, Pennsylvania. It is likely they were not the only
ones.

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Vetera3 era


The Iirst production oI automobiles was by Karl Benz in 1888 in ermany and, under license
Irom Benz, in rance by Emile Roger. There were numerous others, including tricycle
builders RudolI Egg, Edward Butler, and Leon Bollee. Bollee, using a 650 cc (40 cu in) engine
oI his own design, enabled his driver, Jamin, to average 45 kilometers (28.0 mph) in the
1897 Paris-Tourville rally. By 1900, mass production oI automobiles had begun in rance and
the United States. The Iirst company Iormed exclusively to build automobiles was Panhard et
Levassor in rance, which also introduced the Iirst Iour-cylinder engine. ormed in 1889,
Panhard was quickly Iollowed by Peugeot two years later. By the start oI the 20th century, the
automobile industry was beginning to take oII in western Europe, especially in rance, where
30,204 were produced in 1903, representing 48.8 oI world automobile production that year.
Brass or Edwardian era

Named Ior the widespread use oI brass in the United States, the Brass (or Edwardian) Era lasted
Irom roughly 1905 through to the beginning oI World War I in 1914. 1905 was about the time
when sales began shiIting Irom the hobbyist and enthusiast to the average user.
Traditional coach-style vehicles were rapidly abandoned, and buckboard slot Iavour with the
introduction oI tonneaus and other less-expensive touring bodies.
By 1906, steam car development had advanced, and they were among the Iastest road vehicles in
that period.
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ig: A Stanley Steamer racecar in 1903. In 1906, a similar Stanley Rocket set the world land
speed record at 205.5km/h at Daytona Beach Road .
Throughout this era, development oI automotive technology was rapid, due in part to hundreds oI
small manuIacturers competing to gain the world's attention. Key developments included the
electric ignition system (by dynamotor on the Arnold in 1898, though Robert Bosch, 1903, tends
to get the credit), independent suspension (actually conceived by Bollee in 1873), and Iour-
wheel brakes (by the Arrol-Johnston Company oI Scotland in 1909)
.
Some examples of cars of the period i3cluded
19081927 ord Model T the most widely produced and available car oI the era. It
used a planetary transmission, and had a pedal-based control system.
1910 Mercer Raceabout regarded as one oI the Iirst sports cars, the Raceabout
expressed the exuberance oI the driving public, as did the similarly-conceived American
Underslung and Hispano-Suiza Alphonso.
19101920 Bugatti Type 13 a notable racing and touring model with
advanced engineering anddesign. Similar models were the Types 15, 17, 22, and 23.






Vi3tae era


1926 Austin 7 Box saloon
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The vintage era lasted Irom the end oI World War I (1919), through the Wall Street Crash at the
end oI 1929. During this period, the Iront-engined car came to dominate, with closed bodies and
standardized controls becoming the norm. In 1919, 90 oI cars sold were open; by 1929, 90
were closed. Development oI the internal combustion engine continued at a rapid pace,
with multi-valve and overhead camshaIt engines produced at the high end, andV8, V12, and
even V16 engines conceived Ior the ultra-rich. Also in 1919, hydraulic brakes were invented
by Malcolm Loughead (co-Iounder oI Lockheed); they were adopted by Duesenberg Ior their
1921 Model A. Three years later, Hermann Rieseler oI Vulcan Motor invented the Iirst
automatic transmission, which had two-speed planetary gearbox, torque converter, and
lockup clutch; it never entered production. (Its like would only become an available option in
1940.) Just at the end oI the vintage era, tempered glass (now standard equipment in side
windows) was invented in rance.
Exemplary vintage vehicles:
O 19221939 Austin 7 the Austin Seven was one oI the most widely copied vehicles
ever, serving as a template Ior cars around the world, Irom BMW to Nissan.
19241929 Bugatti Type 35 the Type 35 was one oI the most successIul racing cars oI
all time, with over 1,000 victories in Iive years.
19221931 Lancia Lambda very advanced car Ior the time, Iirst car to Ieature a load-
bearing monocoque-type body and independent Iront suspension.
19251928 Hanomag 2 / 10 PS early example oI ponton styling, without Iully
articulated Iendersand running boards.
19271931 ord Model A (1927-1931) aIter keeping the brass era Model T in
production Ior too long, ord broke Irom the past by restarting its model series with the 1927
Model A. More than 4 million were produced, making it the best-selling model oI the era.
1930 Cadillac V-16 developed at the height oI the vintage era, the V16-
powered Cadillac would join Bugatti's Royale as the most legendary ultra-luxury cars oI the
era.

!re-WW era


Citron Traction Avant
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The pre-war part oI the classic era began with the reat Depression in 1930, and ended with the
recovery aIter World War II, commonly placed at 1948. It was in this period that
integrated Ienders and Iully-closed bodies began to dominate sales, with the
new saloon/sedan body style even incorporating a trunk or boot at the rear Ior storage. The old
open-top runabouts, phaetons, and touring cars were phased out by the end oI the classic era as
wings, running boards, and headlights were gradually integrated with the body oI the car.
By the 1930s, most oI the mechanical technology used in today's automobiles had been invented,
although some things were later "re-invented", and credited to someone else. or example, Iront-
wheel drive was re-introduced by Andre Citron with the launch oI the %raction Avant in 1934,
though it had appeared several years earlier in road cars made by Alvis and Cord, and in racing
cars by Miller (and may have appeared as early as 1897). In the same vein, independent
suspension was originally conceived by Amedee Bollee in 1873, but not put in production until
appearing on the low-volume Mercedes-Benz 380 in 1933, which prodded American makers to
use it more widely. In 1930, the number oI auto manuIacturers declined sharply as the industry
consolidated and matured, thanks in part to the eIIects oI the reat Depression.
Exemplary pre-war automobiles:
19321939 Alvis Speed 20 and Speed 25 the Iirst cars with all-synchromesh gearbox.
19321948 ord V-8 introduction oI the powerIul Ilathead V8 in mainstream vehicles,
setting new perIormance and eIIiciency standards.
19341940 Bugatti Type 57 a singular reIined automobile Ior the wealthy.
19341956 Citron Traction Avant the Iirst mass-produced Iront-wheel drive car, built
with monocoque chassis.
19361955 M T series sports cars with youth appeal at an aIIordable price.
19382003 Volkswagen Beetle a design Ior eIIiciency and low price, which
progressed over 60 years with minimal basic change.
19361939 Rolls-Royce Phantom III V12 engined pinnacle oI pre-war engineering,
with technological advances not seen in most other manuIacturers until the 1960s. Superior
perIormance and quality.

!ost-war era


1953 Morris Minor Series II



Jaguar E-type coupe


1985 Mini
Automobile design Iinally emerged Irom the shadow oI World War II in 1949, the year that in
the United States saw the introduction oI high-compression V8 engines and modern bodies
Irom eneral Motors' Oldsmobile and Cadillac brands. The unibody/strut-suspended 1951 ord
Consul joined the 1948 Morris Minor and 1949 Rover P4 in waking up the automobile market in
the United Kingdom. InItaly, Enzo errari was beginning his 250 series, just asLancia introduced
the revolutionary V6-powered Aurelia.
Throughout the 1950s, engine power and vehicle speeds rose, designs became more integrated
and artIul, and cars spread across the world. Alec Issigonis' Mini and iat's 500diminutive cars
swept Europe, while the similar kei car class put Japan on wheels Ior the Iirst time. The
legendary Volkswagen Beetle survived Hitler's ermany to shake up the small-car market in the
Americas. Ultra luxury, exempliIied in America by the Cadillac Eldorado Brougham, reappeared
aIter a long absence, and grand tourers (T), like the errari Americas, swept across Europe.
The market changed somewhat in the 1960s, as Detroit began to worry about Ioreign
competition, the European makers adopted ever-higher technology, and Japan appeared as a
serious car-producing nation. eneral Motors, Chrysler, and ord tried radical small cars, like
the M A-bodies, but had little success. Captive imports and badge engineering swept through
the US and UK as amalgamated groups like the British Motor Corporation consolidated the
market. BMC's revolutionary space-saving Mini, which Iirst appeared in 1959, captured large
sales worldwide. Minis were marketed under the Austin and Morris names, until Mini became
a marque in its own right in 1969. The trend Ior corporate consolidation reached Italy as niche
makers like Maserati, errari, and Lancia were acquired by larger companies. By the end oI the
decade, the number oI automobile marques had been greatly reduced.

In America, perIormance became a prime Iocus oI marketing, exempliIied by pony


cars and muscle cars. In 1964 the popular ord Mustang appeared. In 1967, Chevrolet released
the Camaro to compete with the Mustang. But everything changed in the 1970s as the 1973 oil
crisis, automobile emissions control rules, Japanese and European imports, and stagnant
innovation wreaked havoc on the American industry. Though somewhat ironically, Iull-size
sedans staged a major comeback in the years between the energy crisis, with makes such
as Cadillac and Lincoln staging their best sales years ever in the late 70s. Small perIormance cars
Irom BMW, Toyota, and Nissan took the place oI big-engined cars Irom America and Italy.
On the technology Iront, the biggest developments oI the era were the widespread use
oI independent suspensions, wider application oI Iuel injection, and an increasing Iocus
on saIety in the design oI automobiles. The hottest technologies oI the 1960s were NSU's
"Wankel engine", the gas turbine, and the turbocharger. OI these, only the last, pioneered
by eneral Motors but popularized by BMW and Saab, was to see widespread use. Mazda had
much success with its "Rotary" engine which, however, acquired a reputation as a polluting gas-
guzzler. Other Wankel licensees, including Mercedes-Benzand eneral Motors, never put their
designs into production aIter the 1973 oil crisis. (Mazda's hydrogen-Iuelled successor was later
to demonstrate potential as an "ultimate eco-car".
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) Rover and Chrysler both produced
experimental gas turbine cars to no eIIect.


A so-called yank tank in Havana, Cuba
Cuba is Iamous Ior retaining its pre-1959 cars, known asyank tanks or maquinas, which have
been kept since the Cuban revolution when the inIlux oI new cars slowed because oI a US trade
embargo.
Exemplary post-war cars:
19481971 Morris Minor a popular, and typical post-war car exported around the
world.
19592000 Mini this quintessential small car lasted Ior Iour decades, and is one oI the
most Iamous cars oI all time.
19611975 Jaguar E-type the E-type saved Jaguar on the track and in the showroom,
and was a standard Ior design and innovation in the 1960s.
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1964present ord Mustang the pony car that became one oI the best-selling and
most-collected cars oI the era.
1969 Datsun 240Z one oI the Iirst Japanese sports cars to be a smash hit with the
North American public, it paved the way Ior Iuture decades oI Japanese strength in
the automotive industry. It was aIIordable,
|citation needed|
well built,
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and had great
success both on the track and in the showroom.


Moder3 era


The wedge proIile oI the 1967 NSU Ro 80was oIten copied in subsequent decades
|citation needed|

The modern era is normally deIined as the 25 years preceding the current year. However, there
are some technical and design aspects that diIIerentiate modern cars Irom antiques. Without
considering the Iuture oI the car, the modern era has been one oI increasing standardization,
platIorm sharing, and computer-aided design.
Some particularly notable advances in modern times are the widespread oI Iront-wheel
drive and all-wheel drive, the adoption oI the diesel engine, and the ubiquity oI Iuel injection.
While all oI these advances were Iirst attempted in earlier eras, they so dominate the market
today that it is easy to overlook their signiIicance. Nearly all modern passenger cars are Iront-
wheel drive monocoque / unibody designs, with transversely-mounted engines, but this design
was considered radical as late as the 1960s.
Body styles have changed as well in the modern era. Three types, the hatchback, sedan, and sport
utility vehicle, dominate today's market,
|citation needed|
yet are relatively recent concepts. All
originally emphasized practicality, but have mutated into today's high-powered luxury crossover
SUV and sports wagon. The rise oI pickup trucks in the United States, and SUVs worldwide has
changed the Iace oI motoring, with these "trucks" coming to command more than halI oI the
world automobile market.
The modern era has also seen rapidly rising Iuel eIIiciency and engine output. Once
the automobile emissions concerns oI the 1970s were conquered with computerized engine
management systems, power began to rise rapidly. In the 1980s, a powerIul sports car might
have produced 200 horse power(150 kW) just 20 years later, average passenger cars have
engines that powerIul, and some perIormance models oIIer three times as much power.
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Exemplary modern cars:


1966present Toyota Corolla a simple small Japanese saloon/sedan that has come to
be the best-selling car oI all time.
1967 NSU Ro 80 the basic wedge proIile oI this design was much emulated in
subsequent decades.
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1970present Range Rover the Iirst take on the combination oI luxury and Iour-wheel
drive utility, the original 'SUV'. Such was the popularity oI the original Range Rover
Classic that a new model was not brought out until 1994.
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1973present Mercedes-Benz S-Class electronic Anti-lock Braking System,
supplemental restraint airbags, seat belt pretensioners, and electronic traction control
systems all made their debut on the S-Class. These Ieatures would later become standard
throughout the car industry.
1975present BMW 3 Series the 3 Series has been on Car and Driver magazine's
annual Ten Best list 17 times, making it the longest running entry in the list.
1977present Honda Accord saloon/sedan this Japanese sedan became the most
popular car in the United States in the 1990s, pushing the ord Taurus aside, and setting the
stage Ior today's upscale Asian sedans.


Tata Nano Inexpensive car
19811989 Dodge Aries and Plymouth Reliant the "K-cars" that saved Chrysler as a
major manuIacturer. These models were some oI the Iirst successIul American Iront-wheel
drive, Iuel-eIIicient compact cars.
1983present Chrysler minivans the two-box mini van design nearly pushed
the station wagon out oI the market, and presaged today's crossover SUVs.
1986present ord Taurus this mid-sized Iront-wheel drive sedan with modern
computer-assisted design dominated the American market in the late 1980s, and created a
design revolution in North America.
1998present ord ocus one oI the most popular hatchbacks across the globe, that is
also one oI ord's best selling world cars.

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AuT0H0llF lt0uSTRY lt lt0lA
ltTR00uCTl0t
Starting its journey Irom the day when the Iirst car rolled on the streets oI Mumbai in 1898,
the Indian automobile industry has demonstrated a phenomenal growth to this day. Today,
the Indian automobile industry presents a galaxy oI varieties and models meeting all possible
expectations and globally established industry standards. Some oI 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 oI
others.
During the early stages oI its development, Indian automobile industry heavily depended on
Ioreign technologies. However, over the years, the manuIacturers in India have started using
their own technology evolved in the native soil. The thriving market place in the country has
attracted a number oI automobile manuIacturers including some oI the reputed global leaders
to set their Ioot in the soil looking Iorward to enhance their proIile and prospects to new
heights. ollowing a temporary setback on account oI the global economic recession, the
Indian automobile market has once again picked up a remarkable momentum witnessing a
buoyant sale Ior the Iirst time in its history in the month oI September 2009.
The automobile sector oI India is the seventh largest in the world. In a year, the country
manuIactures about 2.6 million cars making up an identiIiable chunk in the world`s annual
production oI about 73 million cars in a year. The country is the largest manuIacturer oI
motorcycles and the IiIth largest producer oI commercial vehicles. Industry experts have
visualized an unbelievably huge increase in these Iigures over the immediate Iuture. The
Iigures 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 Iourth
largest exporter oI automobiles Iollowing Japan, South Korea and Thailand. Experts state
that in the year 2050, India will top the car volumes oI all the nations oI the world with about
611 million cars running on its roads.
At present, about 75 percent oI India`s automobile industry is made up by small cars, with
the Iigure ranking the nation on top oI any other country on the globe. Over the next two or
three years, the country is expecting the arrival oI more than a dozen new brands making
compact car models.
Recently, the automotive giants oI India including eneral Motors (M), Volkswagen,
Honda, and Hyundai, have declared signiIicant expansion plans. On account oI its huge
market potential, a very low base oI car ownership in the country estimated at about 25 per
1,000 people, and a rapidly surging economy, the nation is Iirmly set on its way to become an
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outsourcing platIorm Ior a number oI global auto companies. Some oI 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 (M) in
addition to several others.
HlST0RY 0F AuT0H0llF lt0uSTRY lt lt0lA
The economic liberalization that dawned in India in the year 1991 has succeeded in bringing
about a sustained growth in the automotive production sector triggered by enhanced
competitiveness and relaxed restrictions prevailing in the Indian soil. A number oI Indian
automobile manuIacturers including Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, have dramatically expanded both their domestic and international operations. The
country`s active economic growth has paved a solid road to the Iurther expansion oI its
domestic automobile market. This segment has in Iact invited a huge amount oI India-
speciIic investment by a number oI multinational automobile manuIacturers. As a signiIicant
milestone in its progress, the monthly sales oI passenger cars in India exceeded 100,000 units
in ebruary 2009.
The beginnings oI automotive industry in India can be traced during 1940s. AIter the nation
became independent in the year 1947, the Indian overnment and the private sector launched
their eIIorts to establish an automotive component manuIacturing industry to meet the needs
oI the automobile industry. The growth oI this segment was however not so encouraging in
the initial stage and through the 1950s and 1960s on account oI nationalization combined
with the license raj that was hampering the private sector in the country. However, the period
that Iollowed 1970s, witnessed a sizeable growth contributed by tractors, scooters and
commercial vehicles. Even till those days, cars were something oI a sort oI a major luxury.
Eventually, the country saw the entry oI Japanese manuIacturers establishing Maruti Udyog.
During the period that Iollowed, several Ioreign based companies started joint ventures with
Indian companies.
During 1980s, several Japanese manuIacturers started joint-ventures Ior manuIacturing
motorcycles and light commercial-vehicles. During this time, that the Indian government
selected Suzuki Ior a joint-venture to produce small cars. ollowing the economic
liberalization in 1991 and the weakening oI the license raj, several Indian and multi-national
car companies launched their operations on the soil. AIter this, automotive component and
automobile manuIacturing growth remarkably speeded up to meet the demands oI domestic
and export needs.
Experts have an opinion that during the early stages the policies and the treatment by the
Indian government were not Iavorable to the development oI the automobile industry.
However, the liberalization policy and various tax relieIs announced by the Indian
government over the recent past have pronounced a signiIicantly encouraging impact on this
industry segment. Estimates reveal that owing to several boosting Iactors, Indian automobile
industry has been growing at a pace oI about 18 per year. ThereIore, global automobile
6

giants like Volvo, eneral Motors and ord have started looking at India as a prospective hot
destination to establish and expand their operations.
Like many other nations India`s highly developed transportation system has played a very
important role in the development oI the country`s economy over the past to this day. One
can say that the automobile industry in the country has occupied a solid space in the platIorm
oI Indian economy. Empowered by its present growth, today the automobile industry in the
country can produce a diverse range oI vehicles under three broad categories namely cars,
two-wheelers and heavy vehicles.
Su!!lY CHAlt 0F AuT0H0llF lt0uSTRY
The supply chain oI automotive industry in India is very similar to the supply chain oI the
automotive industry in Europe and America. The orders oI the industry arise Irom the bottom
oI the supply chain i. e., Irom the consumers and goes through the automakers and climbs up
until the third tier suppliers. However the products, as channeled in every traditional
automotive industry, Ilow Irom the top oI the supply chain to reach the consumers.
Automakers in India are the key to the supply chain and are responsible Ior the products and
innovation in the industry.
The description and the role oI each oI the contributors to the supply chain are discussed
below.
Third Tier Suppliers: These companies provide basic products like rubber, glass, steel, plastic
and aluminium to the second tier suppliers.
Second Tier Suppliers: These companies design vehicle systems or bodies Ior irst Tier
Suppliers and OEMs. They work on designs provided by the Iirst tier suppliers or OEMs.
They also provide engineering resources Ior detailed designs. Some oI their services may
include welding, Iabrication, shearing, bending etc.
irst Tier Suppliers: These companies provide major systems directly to assemblers. These
companies have global coverage, in order to Iollow their customers to various locations
around the world. They design and innovate in order to provide 'black-box solutions Ior the
requirements oI their customers. Black-box solutions are solutions created by suppliers using
their own technology to meet the perIormance and interIace requirements set by assemblers.
irst tier suppliers are responsible not only Ior the assembly oI parts into complete units like
dashboard, breaks-axel-suspension, seats, or cockpit but also Ior the management oI second-
tier suppliers.
Automakers/Vehicle ManuIacturers/Original Equipment ManuIacturers (OEMs): AIter
researching consumers` wants and needs, automakers begin designing models which are
tailored to consumers` demands. The design process normally takes Iive years. These
companies have manuIacturing units where engines are manuIactured and parts supplied by
Iirst tier suppliers and second tier suppliers are assembled. Automakers are the key to the
supply chain oI the automotive industry. Examples oI these companies are Tata Motors,
7

Maruti Suzuki, Toyota, and Honda. Innovation, design capability and branding are the main
Iocus oI these companies.
Dealers: Once the vehicles are ready they are shipped to the regional branch and Irom there,
to the authorised dealers oI the companies. The dealers then sell the vehicles to the end
customers.
Parts and Accessory: These companies provide products like tires, windshields, and air bags
etc. to automakers and dealers or directly to customers.
Service Providers: Some oI the services to the customers include servicing oI vehicles,
repairing parts, or Iinancing oI vehicles. Many dealers provide these services but, customers
can also choose to go to independent service providers.

0vFRtHFtT !0llClFS 0t lt0lAt AuT0H0llF lt0uSTRY


The Indian Automobile Industry plays a major role in the economic scenario oI the country. The
automobile sector in India, record sales oI more than one million passenger cars per year. The
percentage oI automobile exports has risen signiIicantly during the last Iew years. The
government policies on Indian automobile industry have been Iramed in order to aid in the
expansion oI the automobiles sector in India.
During the early stages, the automobile industry was not accorded much importance by the
Indian overnment. However, the attitude changed during the 1990's. A number oI reIorms were
initiated in 1991. Liberal policies aIIected during this period, proved to be beneIicial to the
automobile industry. The Iiscal measures, tax relieIs and reIorms in equity regulations and
Ioreign exchange led to signiIicant growth in the automobile sector. A reduction in the
percentage oI tariIIs imposed on exports and a change in the banking policies was instrumental
in the expansion and growth oI the banking sector.
Prior to the mid 1990's, the Indian automobile sector comprised oI indigenous companies. The
automobile market in India was however, opened up to Ioreign investors in 1996. International
names like ord, Hyundai, Toyota, Volvo, Daimler Chrysler and M Honda were thus, able to
make their Ioray into the Indian automobile sector. urthermore, the auto emission rules issued
by the government in recent years ensured that the vehicles manuIactured in India, catered to
international standards. At present, the automobiles sector contributes 4 to the DP. About 9.7
8

million automobiles were manuIactured in 2005-2006. Export Iigures had crossed the magic
Iigure oI one billion during 2003-2004.
A reduction in the tariII imposed on car exports has been eIIected by the Indian government.
There has also been a removal oI the minimum capital investment required Irom new investors.
The new policy is also in Iavor oI reduction in excise duty Ior small automobiles and low
emission and multi utility cars. The tariII policy is also to be reviewed on a regular basis in order
to aIIect a balance between domestic industry and international trade. There has also been a
proposal Ior tax relaxation on investment oI more than Rs. 500 Crore.
The government has recently proposed Ior an inIrastructure that will provide one stop clearance
Ior any kind oI proposal Ior Ioreign direct investment in the automotive sector. This will include
the local clearance system also Ior the same purpose. There are also plans Ior imposing a 100
tax deduction on export proIits. The government has also proposed Ior a concession in import
duty Ior the establishment oI new manuIacturing units and industrial holdings.
The Indian government is also urging the state governments to ensure continuous power supply
to the automotive manuIacturing units as well as granting them with the preIerred plots oI land.
Captive eneration Ior the automobile sector has also been proposed. The auto policy oI the
Indian government also includes the promotion oI vehicles which are run on alternative energy
resources. Talks are also on Ior extensive research, development and designing Iacilities that
would eIIect modernization in the automotive sector.
The policies adopted by the Indian government Ior the growth and development oI the
automobile sector, has led to a large number oI Ioreign investments. It has also given rise to an
increased sales rate Ior two wheelers and other automobiles. India is also becoming the ultimate
outsourcing destination Ior global automobile companies like ord, Mitsubishi, Toyota, Hyundai
etc.
HAJ0R !lAYFRS
Bajaj Tempo Limited, DaimlerChrysler India Private Limited, iat India Automotive Private
Limited, ord India Limited, eneral Motors India Limited, Hindustan Motors Limited, Honda
Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra Limited, Maruti
Udyog Limited, Skoda Auto India Limited, Tata Motors Limited, Toyota Kirloskar Motors
Limited ,Audi, BMW etc.
CuRRFtT SCFtARl0 lt !ASSFtFR CAR CATF0RY
The dominant basis oI competition in the Indian passenger car industry has changed Irom price
to price-value, especially in the passenger car segment. While the Indian market remains price
sensitive, the stranglehold oI Economy models has been slackening, giving way to higher-priced
products that better meet customer needs. Additionally, a dominant trend in the Indian passenger
car segment is the increasing Iragmentation oI the market into sub-segments, reIlecting the
9

increasing sophistication oI the Indian consumer. With the launch oI new models Irom 2000
onwards, the market Ior MUVs has been redeIined in India, especially at the upper-end.
Currently, the higher-end MUVs, commonly known as Sports Utility Vehicles (SUVs), occupy a
niche in the urban market, having successIully shaken oII the tag oI commercial vehicles
attached to all MUVs till recently. Domestic car manuIacturers are now venturing into areas such
as car Iinancing, leasing and Ileet management, and used-car reconditioning/sales, to
complement their mainstay-business oI selling new car.
C0H!FTlTlvF F0RCFS lt lt0lAt !ASSFtFR CAR HARKFT
ritical ssues a3d Future Tre3ds
The critical issue Iacing the Indian passenger car industry is the attainment oI break-even
volumes. This is related to the quantum oI investments made by the players in capacity creation
and the selling price oI the car. The amount oI investment in capacities by passenger car
manuIacturers in turn depends on the production
Threat from the 3ew players: 3creasi3
O Most oI the major global players are present in the Indian market; Iew more are expected
to enter.
O inancial strength assumes importance as high are required Ior building capacity and
maintaining adequacy oI working capital.
O Access to distribution network is important.
O Lower tariIIs in post WTO may expose Indian companies to threat oI imports.
#ivalry withi3 the i3dustry: Hih
O There is keen competition in select segments. (compact and mid size segments).
O New multinational players may enter the market.
Market stre3th of suppliers: Low
O A large number oI automotive components suppliers.
O Automotive players are rationalizing their vendor base to achieve consistency in quality.

Market stre3th of co3sumers: 3creasi3
O Increased awareness among consumers has increased expectations. Thus the ability to
innovate is critical.
O Product diIIerentiation via new Ieatures, improved perIormance and aIter-sales support is
critical.
O Increased competitive intensity has limited the pricing power oI manuIacturers.
2

Threat from substitutes: Low to medium


With consumer preIerences changing, inter product substitution is taking place
(Mini cars are being replaced by compact or mid sized cars).Setting up integrated manuIacturing
Iacilities may require higher capital investments than establishing assembly Iacilities Ior semi
knocked down kits or complete knocked down kits. In recent years, even though the ratio oI sales
to capacity (an important indicator oI the ability to reach break-even volumes) oI the domestic
car manuIacturers have improved, it is still low Ior quite a Iew car manuIacturers in India. India
is also likely to increasingly serve as the sourcing base Ior global automotive companies, and
automotive exports are likely to gain increasing importance over the medium term. However, the
growth rates are likely to vary across segments. Although the Mini segment is expected to
sustain volumes, it is likely to continue losing market share; growth in the medium term is
expected to be led largely by the Compact and Mid-range segments. Additionally, in terms oI
engine capacity, the Indian passenger car market is moving towards cars oI higher capacity. This
apart, competition is likely to intensiIy in the SUV segment in India Iollowing the launch oI new
models at competitive prices.
F0R0 H0T0R C0H!AtY
Ford Motor ompa3y (NSE: ) is an American multinational automaker based in Dearborn,
Michigan, a suburb oI Detroit. The automaker was Iounded by Henry ord and incorporated on
June 16, 1903. In addition to the ord and Lincoln brands, ord also owns a small stake
in Mazda in Japan and Aston Martin in the UK. ord's Iormer UK subsidiaries Jaguar and Land
Rover were sold to Tata Motors oI India in March 2008. In 2010 ord sold Volvo to eely
Automobile. ord discontinued the Mercury brand at the end oI 2010.
ord introduced methods Ior large-scale manuIacturing oI cars and large-scale management oI an
industrial workIorce using elaborately engineered manuIacturing sequences typiIied by moving
assembly lines. Henry ord's methods came to be known around the world as ordism by 1914.
ord is the second largest automaker in the U.S. and the IiIth-largest in the world based on
annual vehicle sales in 2010. At the end oI 2010, ord was the IiIth largest automaker in
Europe. ord is the eighth-ranked overall American-based company in the 2010ortune 500 list,
based on global revenues in 2009 oI $118.3 billion. In 2008, ord produced 5.532 million
automobiles and employed about 213,000 employees at around 90 plants and Iacilities
worldwide. During the automotive crisis, ord's worldwide unit volume dropped to 4.817 million
in 2009. In 2010, ord earned a net proIit oI $6.6 billion and reduced its debt Irom $33.6 billion
to $14.5 billion lowering interest payments by $1 billion Iollowing its 2009 net proIit oI $2.7
billion. Starting in 2007, ord received more initial quality survey awards Irom J. D. Power and
Associates than any other automaker. ive oI ord's vehicles ranked at the top oI their
categories and Iourteen vehicles ranked in the top three.
2


Ford World Headquarters in Dearborn, Michigan, known as the Glass House.
MA#T DVLO!MTS
During the mid to late 1990s, ord sold large numbers oI vehicles, in a booming American
economy with soaring stock market and low Iuel prices. With the dawn oI the new century,
legacy healthcare costs, higher Iuel prices, and a Ialtering economy led to Ialling market shares,
declining sales, and sliding proIit margins. Most oI the corporate proIits came Irom Iinancing
consumer automobile loans through ord Motor Credit Company.
By 2005, corporate bond rating agencies had downgraded the bonds oI both ord and M to
junk status, citing high U.S. health care costs Ior an aging workIorce, soaring gasoline prices,
eroding market share, and dependence on declining SUV sales Ior revenues. ProIit margins
decreased on large vehicles due to increased "incentives" (in the Iorm oI rebates or low interest
Iinancing) to oIIset declining demand.
In the Iace oI demand Ior higher Iuel eIIiciency and Ialling sales oI minivans, ord moved to
introduce a range oI new vehicles, including "Crossover SUVs" built on unibody car platIorms,
rather than morebody-on-Irame chassis. In developing the hybrid electric power train
technologies Ior the ord Escape Hybrid SUV, ord licensed similar Toyota hybrid
technologies to avoid patent inIringements. ord announced that it will team up with electricity
supply company Southern CaliIornia Edison (SCE) to examine the Iuture oI plug-in hybrids in
terms oI how home and vehicle energy systems will work with the electrical grid. Under the
multi-million-dollar, multi-year project, ord will convert a demonstration Ileet oI ord Escape
Hybrids into plug-in hybrids, and SCE will evaluate how the vehicles might interact with the
home and the utility's electrical grid. Some oI the vehicles will be evaluated "in typical customer
settings," according to ord.
In December 2006, the company raised its borrowing capacity to about $25 billion, placing
substantially all corporate assets as collateral to secure the line oI credit. Chairman Bill ord has
stated that "bankruptcy is not an option". In order to control its skyrocketing labor costs (the
most expensive in the world), the company and the United Auto Workers, representing
approximately 46,000 hourly workers in North America, agreed to a historic contract settlement
in November 2007 giving the company a substantial break in terms oI its ongoing retiree health
care costs and other economic issues. The agreement includes the establishment oI a company-
Iunded, independently run Voluntary (VEBA) trust to shiIt the burden oI retiree health care Irom
the company's books, thereby improving its balance sheet. This arrangement took eIIect on
January 1, 2010. As a sign oI its currently strong cash position, ord contributed its entire current
liability (estimated at approximately US$5.5 Billion as oI December 31, 2009) to the VEBA in
cash, and also pre-paid US$500 Million oI its Iuture liabilities to the Iund. The agreement also
22

gives hourly workers the job security they were seeking by having the company commit to
substantial investments in most oI its Iactories.
The automaker reported the largest annual loss in company history in 2006 oI $12.7 billion, and
estimated that it would not return to proIitability until 2009. However, ord surprised Wall
Street in the second quarter oI 2007 by posting a $750 million proIit. Despite the gains, the
company Iinished the year with a $2.7 billion loss, largely attributed to Iinance restructuring
at Volvo.
On June 2, 2008, ord sold its Jaguar and Land Rover operations to Tata Motors Ior $2.3 billion.
In January 2008, ord launched a website listing the ten uilt Ford %ough rules as well as a
series oI webisodes that parodied the TV show COPS.
During November 2008, ord, together with Chrysler and eneral Motors, sought Iinancial aid
at Congressional hearings in Washington D.C. in the Iace oI worsening conditions caused by the
automotive industry crisis. The three companies presented action plans Ior the sustainability oI
the industry. The Detroit based automakers were unsuccessIul at obtaining assistance through
Congressional legislation. M and Chrysler later received assistance through the Executive
Branch Irom the T.A.R.P. Iunding provisions. On December 19, the cost oI credit deIault
swaps to insure the debt oI ord was 68 percent the sum insured Ior Iive years in addition to
annual payments oI 5 percent. That means it costs $6.8 million paid upIront to insure $10 million
in debt, in addition to payments oI $500,000 per year. In January 2009, ord announced a $14.6
billion loss in the preceding year, making 2008 its worst year in history. Still, the company
claimed to have suIIicient liquidity to Iund its business plans and thus, did not ask Ior
government aid. Through April 2009, ord's strategy oI debt Ior equity exchanges, erased $9.9 B
in liabilities (28 oI its total), in order to leverage its cash position. These actions yielded ord a
$2.7 billion proIit in Iiscal year 2009, the company's Iirst Iull-year proIit in Iour years.
23

F0R0 lt0lA !RlvATF llHlTF0

Type Subsidiary
3dustry Automotive
Fou3ded
October 1995 (as Mahindra ord
India Limited)
Headquarters Chennai, Tamil Nadu
ey people
Mr. Michael
Boneham,President and MD
!roducts Automobiles
mployees 10,000
!are3t ord Motor Company
Website www.india.Iord.com
Ford 3dia !rivate Limited is a wholly owned subsidiary oI the ord Motor Company in India.
ord India Private Limited's head quarters are located in Chengalpattu, Chennai, Tamil Nadu. It
currently is the 6th largest car maker in India aIter Maruti Suzuki, Hyundai, Tata, Mahindra
and Chevrolet.


24


HlST0RY
The modern Ford 3dia !rivate Limited began production in 1996, although the roots trace
back to 1907 when the Model A was launched. Its manuIacturing Iacilities are in Maraimalai
Nagar near Chennai. ord India Private Limited began production in 1926, but was shut down in
1954. Production began again with the joint venture Mahindra ord India Limited (MIL) in
October 1995, a 50-50 venture with Mahindra & Mahindra Limited. ord Motor Company
increased its interest to 72 in March 1998 and renamed the company ord India Private
Limited. TOETHER with tie up with Mahindra Iord developed Iord escort in 1996.But due to
poor marketing it was a Iailure.
Models ma3ufactured by Ford Motor 3dia !vt ltd are:

ord Escort, ord Ikon ord usion, ord iesta, ord Mondeo and ord Endeavour
Ford ko3: ord ikon has managed to make its mark on the Indian market. This Iord car
successIully competed against cars like Opel Astra and also ousted them. Although most oI the
Iord Ikon models have been discontinued the Iord ikon lair 1.3 is still carrying the ord Ikon
tradition Iorward.

Ford Fiesta (Seda3: The ord iesta a luxury car exudes exuberance with its dynamic interiors
and contemporary style. uaranteed to grip glances this car is a traIIic stopper Ior the sheer look
oI the car.


Ford 3deavour (SUV: ord Endeavour is a larger than liIe SUV with spacious interiors and
gracious looks. This is a sure hot cake Ior big Iamilies.


23


List of latest models lau3ched by ford:
Model !rice Mileae Tech Spec
Endeavour
3.0L 4x4
Starting Irom
Rs. 18.69
Lakhs
Excellent
mileage
3-litre Duratorq TDCi engine, delivering 380
Nm oI earth biting torque and 156 PS oI raw
power to give the true 4x4 experience.
Endeavour
2.5L 4x2
Starting Irom
Rs. 16.25
Lakhs
Excellent
mileage
2.5 litre Duratorq TDCi engine that delivers
143 PS oI power and 330 Nm torque
Ikon 1.3
Rocam
Starting Irom
Rs. 4.92
Lakhs
Excellent
mileage
new suspension setup, a new low Iriction
steering system , improved NVH
Ikon 1.4 Dura
Torq DTCi
Starting Irom
Rs. 5.53
Lakhs
Excellent
mileage
1.4L DuraTorq engine, a state-oI-the-art, Iuel
eIIicient and turbo charged
iesta 1.6
Duratec EXI
Starting Irom
Rs. 6.23
Lakhs
Less petrol
consumtion
4 cylinder, 16 Valve, DOHC, 1.6 litre
Duratec engine
iesta 1.6
Duratec ZXI
Starting Irom
Rs. 6.57
Lakhs
Less petrol
consumtion
4 cylinder, 16 Valve, DOHC, 1.6 litre
Duratec engine
iesta Limited
Edition 2010
Starting Irom
Rs. 5.73
Lakhs
OIIers
superior
mileage
1.6 litre Duratec engine with best in class
acceleration
iesta
1.6Duratec SXI
Starting Irom
Rs. 7.18
Lakhs
OIIers
superior
mileage
1.6 litre Duratec Petrol,4 cylinders, 16
valves, DOHC, 1.6 litre engine

26

C0R!0RATF 0vFRtAtCF
The management team oI ord India comprises oI Michael Boneham (President & Managing
Director), Sandip Sanyal (Executive Director - Operations), Nigel E. Wark (Executive Director,
Marketing, Sales and Service), Kuljit Rana (Vice President, inance & Whole time Director)
Vairamani Pandiyan (Vice President, HR).
HAtuFACTuRlt FAClllTlFS
IPL's main manuIacturing plant has a capacity oI 100,000 vehicles annually and is located in
Maraimalai Nagar, 45 km Irom Chennai. As its new hatchback igo was launched in March
2010,
|2|
ord Motor Company has invested $500 million to double capacity oI the plant to
200,000 vehicles annually and setting up a Iacility to make 250,000 engines annually. The new
engine plant is more than 40,000 square metres and will quadruple production capacity oI the
engine manuIacturing Iacility. Currently, a single production line produces approximately 60,000
diesel engines a year.
Part oI ord Motor Company's US$500-million investment at the Maraimalai Nagar site, the new
engine plant is designed to meet the growing needs oI the Indian vehicle market and is an
advanced manuIacturing centre that has been created with the world's best practices Ior engine
manuIacturing.

H00FlS
urre3t
1. ord Endeavour (Launched 2004)
2. ord iesta(Launched 2005)
3. ord igo (Launched 2010)
Disco3ti3ued
1. ord Ikon (1999-2010)
2. ord Escort (19962001)
3. ord Mondeo (20012006)
4. ord usion (20042010)
C0H!FTlT0RS lt lt0lA
Tata Motors:
Tata Motors Limited is India's largest automobile company, with revenues oI Rs. 32,426 crores
(USD 7.2 billion) in 2006-07. It is the leader by Iar in commercial vehicles in each segment, and
the second largest in the passenger vehicles market with winning products in the compact,
midsize car and utility vehicle segments. The company is the world's IiIth largest medium and
heavy commercial vehicle manuIacturer, and the world's second largest medium and heavy bus
27

manuIacturer. Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth oI India. Over 4 million Tata vehicles ply on Indian roads, since the Iirst rolled out in
1954. The company's manuIacturing base is spread across India Jamshedpur (Jharkhand) in the
east, Pune (Maharashtra) in the west, and in the north in Lucknow
(Uttar Pradesh) and Pantnagar (Uttarakhand). A new plant is being set up in Singur (close to
Kolkata in West Bengal) to manuIacture the company's small car. The nationwide dealership,
sales, services and spare parts network comprises over 2,000 touch points. The company also has
a strong auto Iinance operation, TML inancial Services Limited, supporting customers to
purchase Tata Motors vehicles. Tata Motors, the Iirst company Irom India's engineering sector to
be listed in the New ork Stock Exchange (September 2004), has also emerged as an
international automobile company. In 2004, it acquired the Daewoo Commercial Vehicles
Company, 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 oI heavy commercial
vehicle exports out oI South Korea are Irom Tata Daewoo. In 2005, Tata Motors acquired a 21
stake in Hispano Carrocera, a reputed Spanish bus and coach manuIacturer, with an option to
acquire the remaining stake as well. Hispano's presence is being expanded in other markets. In
2006, it Iormed a joint venture with the Brazil based Marcopolo, a global leader in body-building
Ior buses and coaches to manuIacture Iully-built buses and coaches Ior India and select
international markets. Tata Motors also entered into a joint venture in 2006 with Thonburi
Automotive Assembly Plant Company oI Thailand to manuIacture and market the company's
pickup vehicles in Thailand. In 2006, Tata Motors and iat Auto Iormed an industrial joint
venture at Ranjangaon (near Pune in Maharashtra, India) to produce both iat and Tata cars and
iat power trains Ior the Indian and overseas markets; Tata Motors already distributes and
markets iat branded cars in India. In 2007, Tata Motors and iat Auto entered into an agreement
Ior a Tata license to build a pick-up vehicle bearing the iat name plate at iat roup
Automobiles' Plant at Cordoba, Argentina. The pick-up will be sold in South and Central
America and select European markets. These linkages will Iurther extend Tata Motors'
international Iootprint, established through exports since 1961. While currently about 18 oI its
revenues are Irom international business, the company's objective is to expand its international
business, both through organic and inorganic growth routes. The company's commercial and
passenger vehicles are already being marketed in several countries in Europe, AIrica, the Middle
East, Australia, South East Asia and South Asia. It has assembly operations in Malaysia, Kenya,
Bangladesh, Ukraine, Russia and Senegal. The Ioundation oI the company`s growth is a deep
understanding oI economic stimuli and customer needs, and the ability to translate them into
customer-desired oIIerings through leading edge R&D. The R&D establishment includes a team
oI 1400 scientists and engineers. The company's Engineering Research Centre was established in
1966, and has Iacilities in Pune, Jamshedpur and Lucknow. The ERC has enabled pioneering
technologies and products. It was Tata Motors, which developed the Iirst indigenously developed
Light Commercial Vehicle, India's Iirst Sports Utility Vehicle and, in 1998, the Tata Indica,
India's Iirst Iully indigenous passenger car. Within two years oI launch Tata Indica became
India's largest selling car in its segment. The ERC in Pune, among whose Iacilities are India's
28

only certiIied crash-test Iacility and hemi-anechoic chamber Ior testing oI noise and vibration,
has received several awards Irom the overnment oI India. Some oI the more prominent
amongst them are the National Award Ior Research and Development EIIorts in Industry in the
Mechanical Engineering Industries sector in 1999, the National Award Ior SuccessIul
Commercialisation oI Indigenous Technology by an Industrial Concern in 2000, and the CSIR
Diamond Jubilee Technology Award in 2004. The company set up the Tata Motors European
Technical Centre (TMETC) in 2005 in the UK. TMETC is engaged in design engineering and
development oI products, supporting Tata Motors' skill sets. Tata Daewoo Commercial Vehicle
Company and Hispano Carrocera also have R&D establishments at unsan in South Korea and
Zaragoza in Spain. The pace oI new product development has quickened through an
organisation-wide structured New Product Introduction (NPI) process. The process with its
Iormal structure Ior introducing new vehicles in the market, brings in greater discipline in project
execution. The NPI process helped Tata Motors create a new segment, in 2005, by launching the
Tata Ace, India`s Iirst indigenously developed mini-truck. The years to come will see the
introduction oI several other innovative vehicles, all rooted in emerging customer needs. Besides
product development, R&D is also Iocussing on environment-Iriendly technologies in emissions
and alternative Iuels. Through its subsidiaries, the company is engaged in engineering and
automotive solutions, construction equipment manuIacturing, automotive vehicle component
manuIacturing and supply chain activities, machine tools and Iactory automation solutions, high-
precision tooling and plastic and electronic components Ior automotive and computer
applications, and automotive retailing and service operations.
Hyu3dai Motor 3dia Limited (HML:
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary oI Hyundai Motor
Company, South Korea and is the second largest and the Iastest growing car manuIacturer in
India. HMIL presently markets 20 variants oI passenger cars in six segments, Santro in the B
segment, etz Prime in the B segment, Accent and Verna in the C segment, Elantra in the D
segment, Sonata Embera in the E segment and Tucson in the SUV segment. Hyundai Motor
India, continuing its tradition oI being the Iastest growing passenger car manuIacturer, registered
total sales oI 299,513 vehicles in calendar year (C) 2006, an increase oI 18.5 percent over C
2005. In the domestic market it clocked a growth oI 19.1 percent a compared to 2005, with
186,174 units, while overseas sales grew by 17.4 percent, with exports oI 113,339 units. HMIL`s
Iully integrated state-oI-the-art manuIacturing plant near Chennai boasts some oI the most
advanced production, quality and testing capabilities in the country. In Continuation oI its
investment in providing the Indian customer global technology, HMIL is setting up its second
plant, which will produce an additional 300,000 units per annum, raising HMIL`s total
production capacity to 600,000 units per annum by end oI 2007. HMIL is investing to expand
capacity in line with its positioning as HMC`s global export Hub Ior compact cars. Apart Irom
expansion oI production capacity, HMIL plans to expand its dealer network, which will be
increased Irom 183 to 250 this year. And with the company`s greater Iocus on the quality oI its
aIter-sales service, HMIL`s service network will be expanded to around 1,000 in 2007.
29

The year 2006 has been a signiIicant year Ior Hyundai Motor India. It achieved a signiIicant
milestone by rolling out the Iastest 300,000th export car. Hyundai exports to over 65 countries
globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step
up its Ioray into new markets. The year just ended also saw Hyundai Motor India attain other
milestones such as the launch oI the Verna and yet another path-breaking record in its young
journey by rolling out the Iastest 10,00,000
th
car. The Hyundai Verna has bagged some oI the
most prestigious awards starting with the title oI "Car oI the ear 2007" by India's leading
automotive publication Overdrive, the 'Best Mid-size Car oI the ear award by the NDTV
ProIit C&B Awards 2007, the 'Best Value Ior Money Car by the CNBC Autocar Auto awards
and PerIormance Car oI the ear 2007` Irom Business Standard Motoring. Last ear Sonata
Embera won the Executive Car oI The ear 2006` award Irom Business Standard Motoring
Magazine and NDTV ProIit Car & Bike declared the Tucson as the SUV oI The ear 2006`.
HMIL has also been awarded the benchmark ISO 14001 certiIication Ior its sustainable
environment management practices.

Maruti Suzuki (MUL:
MUL was the result oI the joint venture created in ebruary 1981 between Japan's Suzuki Motor
Company and the Indian overnment when the latter decided to produce small, economical cars
Ior the masses.The intention oI the venture was to produce a 'people's car'. To get the project oII
the ground MUL took over the assets oI the erstwhile Maruti Ltd., which was set up in 1971 and
closed in 1978.It was on December 14, 1983 that MUL launched the Iirst Maruti vehicle - the
Maruti 800. The Iirst model was the SS80, a 796cc hatchback car priced at Rs.
47,500.Subsequently, in spite oI price hikes, the car has remained within the reach oI the Indian
middle class and has been a runaway success. Available in vibrant colors when India's passenger
car population comprised mainly Ambassadors and iats in black and white, M800 gave Indians
the Iirst taste oI global quality and reliability. In late1980s, Suzuki increased its equity stake in
MUL Irom 26 to 40 and Iurther to 50 in 1992, converting Maruti into a non-government
company. In the years that Iollowed, MUL consolidated its position with a line oI Indian classics,
such as the eight-seat Omni, the rough-terrain ypsy, and, in October 1990, a 3-box Maruti
1000. MUL took the lead in the green drive by launching its CN-run Omni and Maruti 800 in
1999.MUL redeIined the premium compact segment with the launch oI the Zen in October 1993.
It was the company's Iirst 'world car, selling across multiple markets. A year later, the Zen had
won several awards, including 'No. 1 car in Europe' (Auto Week, 1994), 'No.1 import in Europe'
(1997) and 'most Iuel-eIIicient car' (ADAC).In 1999, MUL launched Baleno and Wagon-R.
Baleno targeted the premium mid-segment while Wagon-R was positioned as a multi-activity
vehicle. In1999, to improve customer satisIaction, it even established a chain oI model
workshops and soon aIter, set up customer call centers in the metros. In 2000, Maruti Suzuki
introduced Alto - a premium small car targeting the export market - and in October 2001, Versa,
a multipurpose vehicle. In May 2002, Suzuki took management control oI Maruti.In April 2003,
MUL rolled out its latest oIIering, the rand Vitara XL-7, a luxury SUV imported Irom Suzuki
3

Motor Corporation. The rand Vitara was a concept that was radically diIIerent Irom the
models that comprised the bulk oI MUL's sales.
FAT 3dia:
The .I.A.T. Company was Iounded on July 11, 1899 in Turin, with Ludovico ScarIiottias
Chairman. iovanni Agnelli, a Iormer cavalry oIIicer who was later to become Managing
Director and then Chairman, was the Secretary to the Board. The Company's Iirst Iactory was
inaugurated in Turin in 1900. It employed 35 people, and had an annual production capacity oI
24 cars. In 1908, The iat Automobile Company was incorporated in the US, and in 1909, a
Iactory was set up in New ork State to produce cars under licence. At the end oI its Iirst
decade, iat had a workIorce oI 2500, and an output oI 1215 cars per year. In 1916, work began
on the Lingotto actory, the biggest Iactory in Europe at the time. The Lingotto Iactory started
production oI iat cars in 1923. In 1937, work began on the new Iactory at MiraIiori, which
began production two years later. During the Second World War, drastic cuts in car production
were compensated by a Iive-Iold increase in the production oI commercial vehicles. Although
carpet bombing had damaged many Iactories, it did not paralyse production. In 1951, a contract
was signed with Premier Automobiles, Bombay, Ior a licence to produce the iat 1100 and to
provide technical assistance. iat commenced production oI diesel engine cars in 1953. The iat
127, launched in 1971, was iat's Iirst Iront wheel drive car, and was hugely innovative Ior its
time. By late 1974, the millionth 174 rolled oII the production line. During the 1970s, iat layed
great emphasis on automated manuIacturing processes, and many oI its Iactories were robotized
during this period. The iat Uno was launched in 1982. This symbolized a new era Ior iat Auto.
The model was radically innovative in its use oI electronics and alternative materials. It used the
new 'clean' engine, the IRE 1000. 1997 saw the launch oI the iat Palio, a multipurpose world
car. Today, the iat roup is an industrial company that is both Italian and International, well
established in world markets, and sustained by a century old inheritance oI experience and
innovativeness. In 2007, the company has announced a joint venture with Tata Motors in India.
The Joint venture has set up a plant at Ranjangaon, near Pune that will have annual production
capacity oI 1 Lac cars, 2 Lac Engines and 2 Lac Transmissions to cater Indian as well as
overseas markets. iat also has announced the launch oI rande Punto and Linea Sedan in India
by year 2008.

Ge3eral Motors 3dia:
eneral Motors India, incorporated in 1994 as a 50-50 joint venture
company with the C.K. Birla roup oI Companies, became a Iully owned subsidiary oI M in
1999 when MOC bought the remaining shares. The company was restructured in 1999 and was
converted Irom a Public Limited company to a Private Limited company. M APH LLC
currently holds 86 percent oI voting shares, and Holden (Australia) holds 14 percent. The SPO
business was integrated with the main business in the same company in 2000. In India, M
strengthened its presence with new product launches Chevrolet Optra in 2003 and Chevrolet
3

Tavera (Multi Utility Vehicle) in 2004. The existing M India plant was originally built by
Hindustan Motors. In 1994, M India entered into a 50 Joint Venture partnership with
Hindustan Motors and modernized the 45,000-square-meter plant near Halol, 45 kilometers
northwest oI Vadodara, in the western state oI ujarat. In ebruary, 1999, M bought the
holdings oI Hindutan Motors and M India became a 100 subsidiary oI eneral Motors
Corporation oI USA. The plant produces the Opel Corsa, Corsa Sail, Chevrolet Optra, and
Chevrolet Tavera, U-VA, Aveo, Spark and Beat. The Chevrolet orester and Opel Vectra are
sold as CBUs (Completely Built in Units) and as imported Irom Japan and ermany
respectively.
Ho3da Siel ars 3dia Ltd.:
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 Siddharth Shriram roup
company, with a commitment to providing Honda's latest passenger car models and
technologies, to the Indian customers. The total investment made by the company in India till
date is over Rs. 800 crores. While the company sold its Iirst 50,000 units in nearly Iive years, it
is today geared to sell more than 50,000 units in a single year. The Honda City, its Iirst oIIering
introduced in 1997, revolutionized the Indian passenger car market and has ever since been
recognized as an engineering marvel in the Indian automobile industry. ThereaIter, HSCI
launched its high-end models the Accord and the SUV, CRV. The City ZX, introduced in its new
avatar in 2003, replicated the success oI the earlier car. The Honda Civic, launched in India in
July 2006, too has matched the success oI other Honda models and has proved an instant hit with
Indian customers. HSCI's state-oI-the-art manuIacturing unit was set up in 1997 at reater
Noida, U.P with an investment oI Rs. 450 crore. The green-Iield project is spread across 150
acres oI land (over 6,00,000 sq. m.). The initial installed capacity oI the plant was 30,000 cars
per annum, which was recently increased to 50,000 cars on a two-shiIt basis. The capacity
expansion was necessitated by the excellent perIormance oI all the Honda models in India. The
expansion process involved an investment oI Rs.150 crores, with the covered area increasing
Irom 55,000 sq. m. to 1,07,000 sq. m. The covered area now constitutes 17 per cent oI the total
land area oI the plant. The enhanced production Iacility oI Honda Siel Cars India accommodates
the Honda Civic, which was launched in India in July 2006, this was Iollowed by CR-V launched
in Nov and Accord launched in Jan 2007. The company plans to Iurther raise its capacity to
100,000 units per annum by the end oI 2007 and 150,000 units per annum by 2010. HSCI
currently produces the Honda City, Civic and Accord models in India and the CRV is sold as a
Iull import Irom Japan. The company operates under the stringent standards oI ISO 9001 Ior
quality management and ISO 14001 Ior environment management. HSCI, registered all-time
high sales oI 61,327 units in the Iinancial year 2006-07. This translates to a phenomenal growth
oI 43.5 over the last Iiscal year where the company sold a total oI 42,727 units. HSCI also
closed the Iinancial year on an upbeat note with record sales in March 2007. The company sold
8,489 units in the month- an increase oI 38.7 over March 2006 where it sold 6,120 units. India
in July 2006. Honda City ZX, accounted Ior 40,464 units in the year. Total Accord and CR-V
sales Ior 2006-07 stood at 2,728 and 1,873 units respectively.
32


HARKFTlt STRATFlFS 0F F0R0
!roduct differe3tiatio3 based o3 operatio3al efficie3cy:
ORD EXCELLIN THROUH SERVICE:ord tries to diIIerentiate its oIIer on
the plank oI service.It has gone in Ior a new norm in customer service:'Iix it right-the
Iirst time-on time.ord is also supplying videotapes showing how repairs have to be
done.
Adopting OIIer to Suit Target Segment:
ordmodiIies its models Ior India:
ord modiIied its models Ior the Indian target segments as shown below:
Higher ground clearance to make the car more compatible to the rougher road surIace in
India.
StiIIer rear springs to enable negotiating the ubiquitous patholes on Indian roads.
Changes in cooling requirement, with greater airIlow to the rear.
Higher resistance to dust.
Compatibility oI engine with the quality oI Iuel available in India.
Location oI horn buttons on the steering vehicles. (As the India motorist uses the horn more
Irequently, Ior cars sold in India, the horn buttons are kept on the steering wheel and not on
a lever on the side as in the models sold in Europe.)
Strateic seme3tatio3 of cars:
The ord in India has launched the car only Ior Iew segment oI people.
The segmentation oI car buyers based on price preIerences are
Family car seme3t: These cars Iorms a reasonably sizeable segment oI the market
(around 15 percent).
PreIerred price range is Irom 5 lakh to 6 lakh.
ORD IKON` AND ORD USION` come under this type oI segment.
!remium car seme3t: This segment represents buyers who need a real world-class car
and are willing to pay the due price.
PreIerred price range starts Irom 8 lakh to 12 lakh.
ORD IESTA`, ORD MONDEO` come under this segment oI cars.

SUV seme3t : The buyers oI this segment like to have a big vehicles.
And these cars are also useIul Ior sport riding and even on hill areas. There body is designed
similar to oIIroad vehicles, which can withstand to Indian roads.
ORD ENDEAVOUR`occupies this segment.
Strategic Promotions by ORD:
ord Iollows the promotions at two levels, they a
1)Promotions oI product directly by the manuIacturer.
2)Promotions at dealer level.
33

In the Iirst step the products oI vehicles manuIactured by the ord Automotives are directly
promoted by the manuIacturer by himselI. He Iollows many promotional strategies like
1.Advertising through television and newspaper.
2.Internet or interactive marketing.
3.Direct marketing
In the second step the dealer oI the vehicles promotes the vehicles.
The various promotional strategies Iollowed by the ortune ord at dealer are
1. Advertising though news papers, radios, palm plates. In this all the Ieatures oI the
product and its prices are given in detail to the customer.
2. In televisions the scrolling are given about the product and its Ieatures.
Hoardi3s:
A heavy picture oI the product which comprises oI its attributes and special Ieatures are
displayed on the roadsides in the Iorm oI hoardings. It is a bit expensive strategy but attracts
many people who pass by that roadside.
This type oI advertisement is prepared Ior those segments oI people who cannot
aIIord their time in reading newspapers and watching televisions. While travelling Irom their
home to oIIice, moving on their business activities they may watch these hoardings. These
hoarding are especially setup at the road signal stops.
Mai3tai3i3 Data Ba3k:
In this the dealer collects personal/bio-data(address and contact number) oI many
people Irom various organizations and diIIerent sector who are ready to buy the vehicles and
who change the vehicles regularly.
These people are met-in person or contacted through their contact number. The
various new Ieatures and new oIIers regarding the vehicles are advocated to them and are
given discounts on group purchase oI vehicles, i.e. iI 5 or more Iriends in the group purchase
the cars at a time then they are given special discounts on the vehicles.

Free 3sura3ce:
The ortune ord gives a special oIIer oI Iree insurance on the purchase oI each
vehicle to its new customers.
#elatio3ship Marketi3:
ord pays a special attention towards its old customers. To retain the old and existing customers
it conducts a corporate meet at a luxurious hotel. The event aims atknowing the problems oI the
customers regarding the vehicles and also service Ieedback. In this way it maintains an eIIective
relationship with the customers and gains the reputation and goodwill in the minds oI the
customers.
Sales !romotio3:
The sales promotion is done in the Iortune Iord at three levels:
1. Showroom sales:In this the customers walk in to the showrooms to know about the
details oI the product. Specially trained sales executives who are present in the
showrooms give a detailed explanation about the product to the customers.
Sales executives give a detailed note on the products Ieatures, various oIIers
34

givenby the manuIacturer and also by the dealer to the customer and enhances
the sales oI the vehicles.
2. orporate sales: A special team oI sales executives are sent to some big corporate
sectors and there they personally meet the heads oI the organizations like C.E.O`s,
Managers etc., and explain about the vehicles and the oIIers and special schemes
provided by the dealer to them on bulk purchase oI the vehicles and try to promote the
sales oI the vehicles.
3. Field sales: The sales executives conduct some events with the corporate working
people and try to demonstrate the product Ieatures and its beneIits and try to promote the
product and increase its sales.



















33

THF F0R0 Fl0

















36

The Ford Fio is a subcompact automobile manuIactured by ord India Private Limited in
Chennai, India; based on the Iourth generation ord iesta hatchback to be sold in developing
countries, it went on sale on 10 March 2010.
|1|
In its primary market, India, it is the third-largest
selling B-segment hatchback car. It is also India's most awarded car ever
.
The ord igo is
available in both petrol and diesel versions, all with Iive speed manual transmissions and power
steering as standard:
A Iour cylinder 1196cc 16V DOHC Petrol engine, rated at 71 PS (52 kW; 70 bhp)
6250rpm with 102 Nm (75 It.lbI) 4000rpm maximum torque.
A Iour cylinder 1399cc 8V SOHC Diesel engine, rated at 69 PS (51 kW; 68 bhp)
4000rpm with 160 Nm (120 ItlbI) 2000rpm maximum torque.
|5|

The petrol version is the all new 1.2 liter, SEI petrol engine with Iive speed manual
transmission. The petrol variant gives a mileage oI around 12.5 kmpl mileage in the city while on
the highway it oIIers mileage around 15.5 kmpl. The engine also meets with BS-IV (Bharat
Stage - IV) emission norms. Diesel variants oI the igo are powered by ord`s 1.4 liter Duratorq
diesel engine. This engine also currently powers ord Ikon and ord iesta. This engine too,
satisIies the BS-IV emission norms. It oIIers a mileage oI around 16 kmpl in the city while on
the highway it delivers a mileage oI 19 kmpl. The igo also oIIers the 'Distance to Empty'
Ieature, inIorming how many km one can go with the available petrol/diesel in the tank.
he ord igo was designed taking the clues Irom iesta, what was needed at the time was a up to
date grill and light set-up. The old gen iesta was used Ior some cosmetic Ieatures but not all.
The result was a car that looked like a cross between the two.
Features
A light and precise steering delivers superb control and an optimised suspension Ior a
comIortable ride without compromising on body roll and handling
igo`s headlight cluster is big and bold with Iog lamps that are Iitted in round shape in U with
such a sparkling look.The Duratorq motor is extremely responsive at low speeds and highly
economical which should suit the city driving conditions with saIe


Specificatio3
Dime3sio3
Length 3795mm
Width 1680mm
Height 1427mm
Wheelbase 2489mm
3i3es
1.2L In-line 4, 70 bhp Petrol
Maximum Power 71 PS 6250 RPM power Petrol
Maximum Torque 102 NM 4000 RPM torque Petrol
37

1.4L In-line 4, 68 bhp Diesel


Maximum Power 69 PS 4000 RPM power Diesel
Maximum Torque 160 NM 2000 RPM torque Diesel

Fuel co3omy
10.9/15.4 (city/highway), 1.2L Dura tec Petrol
14.1/18.5 (city/highway), 1.4L Dura Torq Diesel
Tra3smissio3s
5-speed Manual Transmission (MT)
Brakes a3d Suspe3sio3
ront Disk brakes
Rear Disk Brakes
ront Suspension McPherson Strut
Rear Suspension Multiple Link Twist Beam
Steeri3 Type
Power
Turning Radius (wheel base) 4.9 Meters
Tyres
Tyre Size 175/65 R14
Tyre Type Tubeless Radial Tire
3itial lau3ch
The great American automaker, ord, is invading their competitor`s markets by introducing the
new igo into the Indian market. The igo is part oI ords One Vision` and One Team` and
One World` project. The launch oI ord igo is all set in the Iirst week oI ebruary.The igo is
based on ord`s lobal-B platIorm and promises to oIIer, economy, saIety, driving dynamics,
value Ior money and hopes to establish new benchmarks as the vehicle goes on sale next year.
The igo roughly Polo sized will be powered by a 1.2 litre petrol and a 1.5 litre diesel engine.
Desi3 a3d trim optio3s
O igo's exterior styling Iollows the global kinetic design elements that help harmonize
the car with other models in the ord global line-up, including ocus and Mondeo
O The interior oI the igo Ieatures Iive-passenger seating and provides some oI the best
interior ergonomics and proportions in its class
O our trim levels will be oIIered Ior igo, with exclusive Ieatures at every level on both
the inside and outside
NEW DELHI, India, March 9, 2010 Say goodbye to the two-box design strategy Ior economy
cars and hello to kinetic design with the new ord igo.
When the design team Ior the new igo met with the marketing team Irom India, the direction
was clear: ''we want more''. AIter deciding on packaging objectives that needed to be met, such
as reducing the overall length oI the car to suit the Indian market, the designers were given the
go-ahead to apply a near-clean sheet approach to both the interior and exterior.
38

Drivi3 impressio3s
The new ord igo is available with either a 1,4-litre Duratec petrol engine, or a 1,4-litre
Duratorq diesel. The petrol engine produces 62 kW and 127 N.m oI torque, while the diesel has
maximum power outputs oI 51 kW and 160 N.m. uel consumption Ior the petrol engine is rated
at 6.6 l/100km, while the diesel requires just 5.3 l/100km. CO2 emissions are 156 g/km and 139
g/km respectively.
Unlike the Vivo, the igo is available exclusively in a 5-door body style and, instead oI an
options list, has just two speciIication levels Ior buyers to choose Irom. The base spec is known
as the Ambiente`, which is available in both petrol and diesel guise, while the Trend` is the
higher spec model and is only available with the petrol engine.
However, ord`s Ambiente base spec is streets ahead oI its Vivo rival, oIIering ABS, air-con and
radio/CD/MP3-player as standard options that would set you back a heIty R12 000 on VW`s
1.4 Vivo. The igo Trend model includes a Iew extra luxuries, such as a height adjustable
driver`s seat, body colour exterior mirrors (electronically adjustable), Iront Iog lamps and alloy
wheels. All igo`s are equipped with driver and passenger Iront airbags.The interior plastics and
mouldings Ieel substantial Ior a car in this segment, something which can be said Ior the igo
overall construction too. ord say they paid close attention to noise/vibration/harshness (NVH)
levels to deliver a car that is quieter than its competitors.
F0R0 Fl0 S!FClFlCATl0tS
Specificatio3 of Ford Fio !etrol i3cludes:
O 1.2 Liter DuraTec MPI Petrol Engine
O Max Power 70 BHP 6250 RPM
O Max Torque 104 Nm 4000 RPM
O 5 Speed Manual Transmission
O Huge luggage space
O Length : 3795mm, Width 1680mm and Height 1427mm
O Long Wheelbase oI 2489mm
O 14 Inch Wheel
O ront Disk brakes
O Rear Disk Brakes
O ront Suspension McPherson Strut
O Rear Suspension Multiple Link Twist Beam
O 45 Liter uel Tank
Specificatio3 of Ford Fio Diesel i3cludes:
O 1.4 Liter DuraTorq CRDI Diesel Engine
O Max Power 68 BHP 4000 RPM
O Max Torque 160 Nm 2000 RPM
O 5 Speed Manual Transmission
39

O Huge luggage space


O Length : 3795mm, Width 1680mm and Height 1427mm
O Long Wheelbase oI 2489mm
O 14 Inch Wheel
O ront Disk brakes
O Rear Disk Brakes
O ront Suspension McPherson Strut
O Rear Suspension Multiple Link Twist Beam
O 45 Liter uel Tank
vARlAtTS
Var|ants Lxshowroom r|ce( )(De|h|) Lng|ne

Ford Fio 1.2 Duratec LX 3,59,500 1196 cc

Ford Fio 1.2 Duratec xi 4,06,400 1196 cc

Ford Fio 1.2 Duratec Zxi 4,29,000 1196 cc

Ford Fio 1.2 Duratec Tita3ium 4,62,400 1196 cc

Ford Fio 1.4 DuraTorq Lxi 4,58,500 1399 cc

Ford Fio 1.4 Duratorq xi 4,93,700 1399 cc

Ford Fio 1.4 Duratorq Zxi 5,17,000 1399 cc

Ford Fio 1.4 Duratorq Tita3ium 5,48,900 1399 cc


ustomer breakup


4


The above Iigure shows the internet habits oI ord igo customers. These Iigures are good
indicators oI where on the net we should put advertisements Ior ord igo.




4

42












43

OM!TTO# AALYSS
With the B-segment Ilooding with oIIerings Irom various manuIacturers, a war oI hatchbacks to
capture the market is just about to begin.
Never beIore in the Indian car industry have we seen such carnage in a segment. The B-segment
is suddenly loaded with quality contenders which not only boast great engineering and Ieatures,
but incredible pricing as well. The SwiIt has been ruling this segment ever since it emerged on
the horizon. The car has never Iailed its Ians, both in terms oI ownership cost and the Iun to drive
Iactor.The iat rande Punto, the Volkwagen Polo and the ord igo are three new generation
cars which pose a serious challenge to the SwiIt`s supremacy in the Indian market. Let`s see
where each oI these cars stand.
Maruti swift
It`s been about 5 years since the SwiIt made its appearance in India. While the radical, oddball
looks have grown onto most oI us Indians now, there are people who don`t like this Maruti`s
unconventional lines. Owing to its distinctive style, it wouldn`t be entirely right to say that the
SwiIt`s is an ageing design. It still looks aggressive and appealing, it`s just that it`s been around
Ior a long time, and we would rather see something Iresher. That said, the design revolution that
the SwiIt brought about would be quite a diIIicult act to Iollow. A new SwiIt is on the cards, and
Irom what we have heard, it`s not going to look much diIIerent Irom its current version.

The SwiIt`s 1.3 petrol engine was a joy to drive with its rev-happy nature, but wasn`t best suited
Ior the stop start city traIIic with its rather peakish power delivery. The new 1.2 K-series engine
in the car has more grunt at the bottom end, making it more convenient to be driven in the city,
but doesn`t quite like to be pushed too hard. The Iuel eIIiciency has improved a bit and so have
the emissions but the car has lost a bit oI its enthusiast appeal. Mind you, it still has the best in
class power Ior the petrol variant, but the revvy 1.3 was a diIIerent experience altogether.ret not
though; the diesel variant oI the SwiIt is at your service iI you wish to enthral yourselI. With an
addictive power surge Irom as low as 1200 rpm, the SwiIt DDiS is simply a delight to drive. The
smooth and punchy engine is the best that there is in the small car segment and with its amazing
Iuel eIIiciency, has made its place in the hearts oI enthusiasts and economy conscious alike. The
engine options on the SwiIt are deIinitely one oI the best, and address the segment brilliantly .

The SwiIt`s exterior may still hold its own against the competition, but the interiors oI the car
have started looking dated. Its time Suzuki reIreshed the in-cabin appeal oI this baby. The
ergonomics are spot on, but the quality oI materials and the overall Ieel oI the cabin leave a lot to
be desired, especially in the light oI newer cars Ieaturing better cabins. The backseat comIort is
still a bit oI an issue with the SwiIt, as neither the legspace, nor the suspension is anything great
to write home about. ABS, air-bags, climate control, alloys etc. are options which are available in
variants higher up the order.
44

Volkswae3 !olo
The Polo, one oI the most anticipated cars in India until its recent launch, boasts oI a very reIined
and evolved exterior design. It`s got bold, muscular lines, which make it look imposing even
with its diminutive B-segment dimensions. The Ilared wheel arches, the angular headlights, the
perIectly balanced proportions the Polo looks just right no matter whichever angle you look at
it Irom. The beauty oI its Iorm is that it breaks convention in the most unconventional manner.
It`s bold without losing out on subtlety. It`s aggressive without being oIIensive. As a new car,
the Polo impresses with its exteriors, it`s the epitome oI European excellence in designing day-
to-day cars with Ilair.
The Polo is a totally new entrant in the arena and comes with two engine options. A 1.2-litre
petrol and a 1.4-litre turbo diesel (to be available Irom May). The petrol powered Polo produces
75 horses, 10 less than the SwiIt`s 85, but doesn`t lack power. It pulls reassuringly Irom the
bottom till 4000 rpm, aIter which the engine, once shown the highway tends to show its
limitations. The three pot engine makes a lot oI noise and isn`t quite as reIined as its 4-pot rivals.
It`s Iairly punchy though, and is complemented well by a 5-speed short throw stick that slots in a
rather slick Iashion. The ratios are well-sorted and the appreciable low end grunt oI the engine
along with nicely spaced ratios allows crawling speeds in third gear. Overall, an average package
nothing that should excite you.
The Polo`s interior, even aIter it being a new car seems Iamiliar, thanks to the component sharing
strategy oI Volkwagen across platIorms and brands (yes, a Iew bits are clearly Skoda). Which is
not a bad thing, as most oI these items are very high-quality, but having seen these materials and
that layout Ior a long enough period, the Polo`s cabin Iails to excite. Sure, everything is built to
last a century, and then some, but it`s beginning to get a tad mundane now. That apart, there`s
nothing to worry about ergonomics are bang on the money, nothing ever makes as much as a
squeak and the seats are pretty comIortable too. The suspension is pliant, deIinitely better than
the slightly bouncy SwiIt. The backseat space, however isn`t any better here than its Japanese
counterpart.
Fiat !u3to

II the Polo is an exponent oI sophisticated, neat and suIIiciently aggressive design, the Punto is
the metallic incarnation oI lust. It`s draped in clothes that are meant to arouse you. The Punto is
the tightest slap a mainstream car could ever deliver on the cheeks oI someone who ever disputed
the Italian Ilamboyance Ior automotive design. There are hardly any creases, the whole surIace is
wrapped in clean, organic curves it exempliIies that a car can look hot without any Ilames`. II
you think you`re cool and Iashionable, and looks matter more to you than anything else, then
reading the rest oI the comparo doesn`t make sense. o buy the Punto Ior its sex-appeal alone.

43

The rande Punto comes with the options oI three engines 1.2 and 1.4 petrols and a 1.3 turbo
diesel. Comparing apples with apples, the 1.2 litre petrol mill oI the Punto is the least powerIul
oI the lot on paper, but makes up Ior its low power output with a reasonably good low and mid-
range. There isn`t anything much leIt once you go above the 120km/h mark, making the 1.2
petrol Punto strictly a city car. The 1.4 with 90PS oI power has more power, better acceleration
and better top whack, but it comes Ior a premium. The 1.3-litre turbo diesel mill is the same
engine as in the SwiIt DDiS albeit with a slightly diIIerent state oI tune. It`s as delightIul and
Irugal on the move as on the swiIt though.
The Punto`s interior is an aberration Irom your usual cabin styling. The buttons on the centre
console are done in silverish grey and people have mixed opinion whether they like them or not.
The instrumentation binnacle is done up in white dials with retro style Iont and looks really cool.
The seats oI the Punto aren`t the most comIortable, and could have done with a bit more back
and thigh support. Long drives invariably end up hurting your backs. The suspension is well
sorted out though Ior a good mix oI driving dynamism and comIort, and backseat space too is
better than the rest oI the two cars discussed earlier.

46

Compare
Cars
Polo Figo Grande Punto Swift

1.2L Trendline
(Petrol)
1.2 Titanium Petrol 1.4 Emotion Petrol
VXi - Metallic with
ABS


Ex-
Showroom
Price (Delhi):
Rs 4,34,000/-
Get On Road Price
Rs 4,51,025/-
Get On Road Price
Rs 5,43,553/-
Get On Road Price
Rs 4,77,831/-
Get On Road Price
EMI: - - - -


Vital
Features
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Air
Conditioning:

Power
Steering:

Power
Windows:

Central
Locking:

ABS:



Safety &
Security
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Driver
Airbag:

optional
Passenger
Airbag:

optional
Child Safety
Lock:


47

Immobilizer:



nteriors
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
CD Changer:

-

Stereo/CD
Player:
-

-
Electric Adj
Seats:

Leather
Seats:

Adj Steering
Column:

-

Foldable rear
seats:

Boot
Capacity:
- 284 280 232
Seating
Capacity:
5 5 5 5


Exteriors
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Fog Lights
(front):

-

Fog Lights
(rear):

-

Rear Wiper:

Rear Window
De-Mister:

Adjustable
ORV-Mirrors:

Electrical
ORV-Mirrors:

48

Sun Roof:



Tyres &
Wheels
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Disk Brake
(front):

Disk Brake
(rear):

Alloy Wheels:

Tubeless
Tyres:

-

Track Front: 1463 - - 1470
Track Rear: 1463 - - 1480
Wheel Base: 2456 2489 2510 2390


Engine, Fuel
& Perf
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Engine CC: 1198 1196 1368 1298
Cylinders: 3 - 4 4
Bore &
Stroke:
- - - 74.0 x 75.5
Eng
Compression
ratio:
- - - 9.0:1
Fuel Type: Petrol Petrol Petrol Petrol
Fuel
Efficiency:
- - - 11.5
Fuel Tank
Capacity:
- 45 45 43
Max Speed: - - - 160
49

0-100 Kmph: - - - 12.9


Automatic
Transmission
:



Features
Polo 1.2L Trendline
(Petrol)
Figo 1.2 Titanium
Petrol
Grande Punto 1.4
Emotion Petrol
Swift VXi - Metallic
with ABS
Traction
Control:
-

Height: 1453 1427 1495 1530
Width: 1682 1680 1687 1690
Length: 3970 3795 3987 3695
Gross
Weight:
- - - 1415
Kerb Weight: - 1090 1145 1000








3



A!!Ft0lX

Survey results
". How did you know about ord igo?
newspaper 1v 8ecommended
rlends
seenonroad ulsplaln
showroom
3
3
2
3 3

Most number oI people buys the car due to the experience oI their Iriends with the car. In the
survey I Iound that majority oI the people bought the car as it was recommended by their Iriends.
Advertisement shown in visual media also contributed to it.







3


". Why did you opt Ior ord igo?
ppearance rlce leaLures Mlleage 8randalue
3
8
2

3

As the Iigure tells most people opted Ior igo since it has the brand value. rom this we can
clearly understand the image created by ord in the minds oI Indian people.













32

". Cause Ior increase in sales?



People give credit to perIormance delivered by the car as the main reason Ior the increase sales
oI igo. Also people are attracted by the option oI the diesel version which is more economical
than other hatchbacks. Its one oI a kind and they have designed an eye catching one.






33



C0tCluSl0t
Based on the above analysis the Iollowing conclusions could be made:
O The highest selling variant is diesel version.
O Mileage oI petrol variant is very low compared to other hatchbacks.
O According to the 80 oI the surveyed Iord dealers the most preIerred Ieature in Iigo is
its 'perIormance Iollowed by 'Cost then the ' Service networks and others
O According to the 90 oI the surveyed Iord dealers the most disliked Ieature in Iigo is its
'poor mileage in city Iollowed by expensive spare parts.

















34


RFFFRFtCFS
www.carsinindia.com
http://en.wikipedia.org/wiki/ordigo
ord India Private Ltd, ord Cars India, ord Motors India, ord iesta India, ord in India
www.hondacarindia.com
www.Iordindia.com
http://www.carsalesindia.com/articles/ComparisonordigoVWPoloiatPuntoMarutiSwiIt.jsp
www.surIindia.com













33

"USTOA#
Dear Sir/Madam,
This is a survey conducted as part oI my MBA program to study the customer
preIerences Ior ord igo Please tick your preIerence oI choice and provide me with your
valuable inIormation.
1. NAME:
2. AE: a) 18-30 yrs b) 30-40 yrs c) 40-50 yrs d) above 50
3. OCCUPATION : a) Business Man b) ovt Servant c) Private Service d) Other
4. STATUS : Single / Married
5. How did you know about ord igo?
a) News Paper b) T.V c) Seen on Road d) Recommended by riends
e) Display in Show Room.
6. Is this your Iirst car? a) es b) No
7. II no what car do you earlier have?

8. Did you take a test drive beIore buying the car?
a) es b) No
9. Which Version do you have?
a) Petrol b) Diesel
10. What Ieatures do you like most in igo?
a) Price b) "uality c) Services d) other
11. What you will say about aIter sales services oI company?
a) Excellent b) Very ood c) ood d) Poor
12. Mode oI purchase?
a) Private inance b) Loan Irom National Bank c) Others
13. How would you rate the over all perIormance oI the car?
a) Excellent b) Very ood C) ood d) air e) Poor/ Needs Improvement
14. Whether the car has a bright Iuture?
a) es b) No

15. When did you buy your ord igo?
16. 16.Are you satisIied with your purchase?
a) es b)No
36


17. II not satisIied, why?



18. Which other models were you looking at when buying a car Ior you?
a) Punto b)polo c) swiIt d)others

19. Why did you narrow down your choice to ord igo?
Reasons:



20. Is it more oI city driving or highway?
a) City and Highway both b) Highway c) City
21. Mileage obtained Irom your ord igo?

22. What else could have been done to make your ord igo experience better?