Statistics

Science of collecting numerical

data.

Kevin grace joseph

Unit No. : 31
Unit Name: Statistics

Contents
What are statistics? .................................................................................................................... 2
Scope of Statistics in the Automobile industry ............................................................................ 2
Types of data used .................................................................................................................... 2
Honda Statistics and Honda Facts ............................................................................................. 5
Source ....................................................................................................................................... 6
Descriptive analysis ................................................................................................................... 7
Profit Margin of Honda 2013 to 2019.......................................................................................... 8
Profit margin of Honda ............................................................................................................... 9
Total Revenue of Honda after Amaze .......................................................................................12
Exploratory analysis ..................................................................................................................12
Deductive Approach ..................................................................................................................15
Inductive Approach ...................................................................................................................16
Null hypothesis..........................................................................................................................17

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

What is statistics?
It is a systematic study of any subject. It can be defined in two ways.
It is a collection of numerical facts or estimate or we can define it as a method used for
collection, analysis, and for interpretation. Statistics has been defined differently by
different authors. Some authors defined it as the science of counting and some other
defined as science of averages. From that it is clear that statistics is not only a part of
mathematics, but it is there in every field maths science and arts.

Scope of Statistics in the Automobile industry

Statistics have a huge scope in the field of automobile industry. Statistics helps the
automobile industries to examine and understand them self that they are now and up to
what extent they will reach in coming years; they can forecast things with statistics and
according to that they can start taking major decisions.
The global auto industry is expecting to sell around 77 million automobiles by the end of
2019. previously it had been estimated that the total sales in 2019 will be around 80
million but now there is a 3 million shortage because of the economic factors that affect
worldwide. With statistics and graphical representation this data can be simpler and
easier to understand. Therefore, the scope of statistics is very high in the field of
Automobile industry.

Types of data used

There are four different types of data’s Nominal, ordinal, interval, ratio.
The type I used all types of data along with some graphs which will help to understand
the scenario much more easily. The rise of profit and revenue margin and also the loss
is well clear in this graph. In this research i collected data under nominal, ordinal,
interval, ratio for Honda Amaze.

Alternate Hypothesis
Introduction of amaze doesn’t make any huge deference in honds profit.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

INTERVAL DATA
YEAR CAR SOLD IN
MILLIONS

2019 77

2018 78.6

2017 79

2016 77.3

2000-2015 54.9

1990-1999 39.2

This is numeric data that we use when we know both the order and exact differences
between the values. This data not only explain the order but it gives a clear idea about
values and as the name says interval “space in between”.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Honda Statistics and Honda Facts

Honda Facts

● Honda website: Global.honda

● Founded. : 1946
● Founders. : Soichiro Honda
● Headquarters. : Tokyo, Japan
● Honda CEO. : Takahiro Hachigo

Honda Statistics
*Fy = Financial year

No. of employees. 215,638

No. of affiliated 440

companies.

No. of Honda 31.71 million

products sold in
FY 2018.

No. of Honda 5.27 million

Automobiles sold
in FY 2018

No. of Honda 31.04 million

products sold in
FY 2017.

No. of Honda 5.29 million

Automobiles sold
in FY 2017

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Nominal data
Nominal data is used here this nominal data is also known as nominal scale; this is a
type of data used to label variables but without providing any quantitative value. While
comparing with other data, nominal data is the simplest form of a scale. Nominal data
cannot be ordered and cannot be measured.

Honda Annual sales revenue

FY 2018: ¥ 15.88 trillion

FY 2017: ¥ 15.361 trillion

Source
The source I used is internet. In this 21st Century each and every single data we need
is available on the internet only thing we should do is find the genuine resource. The
reason why I avoided other results are because it is very hard to get primary information
from Honda as they won’t tell their Statistics numbers to an unknown common man and
as I mentioned above each authors have different views and in books they might use
there logic also after considering all these factors I came with a decision that internet is
the best option for me.

Advantages Disadvantages

immediate access Non

to information. representative
samples

cost effectiveness less response

rates

Saves time cannot access all

portal

wealth of fake reviews

information

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Other major sources

There are few books published about Honda. Driving Honda: Inside the World's Most
Innovative Car Company is the book published by Jeffery Rathfeder, who was a former
Business week editor at Bloomberg news. He had also published many other famous
books.
Why I rejected this source?
This source was very informative and excellent work with 269 pages but this book was
published in 2014 and my survey is starting from 2014. This book has everything about
Honda before 2014 and the book cost me around Rs.700. After understanding these
facts, I took a decision to reject this source. And also, as I mentioned above primary
data collection is very hard as the employees working in Honda are not supposed to
revel their statistical data to an unknown person after everything I came with conclusion
of internet as my source for this analysis.

Descriptive analysis
In statistical analyses descriptive analysis is the very first and important step. These
descriptive analyses give you a complete idea of your data and also detect outliers and
type. This analysis also helps to identify associations between variables. The following
are some descriptive analysis graph.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Profit Margin of Honda 2013 to 2019

(trends, 2019)

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Profit margin of Honda

2017 to 2018 after introducing a new Honda Amaze

(macrotrends, 2019)

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

From these two graphs it is clear that Honda was facing a dramatic loss in previous
years but after introducing new amaze they somehow managed to get back on to the
profit track. Within 5 months right after lunch Honda amaze records 50,000-unit sales.
Honda launched amaze on May 2018 and Amaze is the first Honda car in India to
achieve this Maxine sales target means this is the fastest 50,000 sales recorded by any
model launched by Honda. The best part is that the new Amaze contributed 50% of
Honda sales from April to September.

Not only New Amaze!

The first generation Amaze also was a great success for Honda as that was the 1st
diesel car launched by Honda in India 2013 and also car was available on 1.2 L petrol.
Apart from first diesel car, Amaze was also a lucrative sub 4-meter entry level car where
it is giving a direct competition to 8 models of different companies which was a unique
feature.

Sales chart of Honda Amaze (First Generation)

Calendar year Sales in India (Unit)

2014 65,505

2015 63,831

2016 35,388

2017 28,314

2018 67,653
(Interval data is used here)
In 2018 the new model sales make a huge difference by selling 67,653 cars and almost
the same difference is recorded by the 1st generation Amaze in 2014.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Total revenue of Honda before Amaze

(macrotrends, 2019)

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Total Revenue of Honda after Amaze

(macrotrends, 2019)

Exploratory analysis

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Exploratory data analysis also known as EDA, this is nothing but an approach used to
analyze datasets to understand their main characteristics, this often done by visual
methods. EDA is also used for finding before modelling task what the data can tell us.
Exploratory data analysis is classified into two ways.
1. Graphical or non-graphical
2. Univariate or multivariate
The following are some exploratory analysis result.

Year Annual Net revenue Average sales per Ratio

income hour

2013 $2,820 $100,941 2.8 cars per hour 1.26

2014 $4,443 $119,523 5 cars per hour 1.23

2015 $4,635 $121,286 5.2 cars per hour 1.20

2016 $2,860 $121,190 3 cars per hour 1.17

2017 $5,734 $130,193 6 cars per hour 1.23

2018 $9,534 $138,250 9.8 cars per hour 1.25

2019* $5,493 $142,998 5 cars per hour 1.26

For analysing data nominal and ratio data are used here.

ORDINAL DATA
This type of data is generally used in a survey because it provides good information
about order of choices. The simple way to remember to this ordinal data is the term
“order” because it sounds like order. This is only used for non-numeric concepts.

RATIO DATA
This data is also defined as quantitative data and also this data has the same properties
as interval data. The important thing is that there can be no negative numerical value in
ratio data.
KEVIN GRACE JOSEPH
Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Honda has managed to increase its hold on the year-on-year market share by 20.44 per
cent thanks to a thorough refresh in 2018 which helps to achieve this target. Currently,
the Honda Amaze commands 23.36 per cent of total segment sales and is the only
offering to have showcased a positive growth in comparison to the previous year. On
the contrary, the Maruti Dzire’s market share witnessed a drop of 9 per cent but is still
more than half of all the cars combined at 56.67 per cent.

Confirmatory Analysis

In statistics CFA- Confirmatory Analysis is nothing but a special style of factor analysis.
This is most usually used in social research. This analysis is used to measure the data
and understanding of the researcher understanding of the nature. The main objective of
the analysis is to make sure that the data fit a hypothesized measurement mode.
Here using confirmatory analysis.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Deductive Approach
Definition: This is nothing, but a hypothesis based on existing theory. This theory also helps
to explain relationship between variables and concepts. deductive approaches in research is a
whilst a deductive approach is aimed and testing theory, an inductive approach is concerned
with the generation of new theory emerging from the data.

From this research it is clear that only because of an ineffective marketing team Honda faced
this dramatic profit loss in previous years. In 2013 they made effective change by introducing
Amaze in both petrol and diesel and as a result the profit margin start moving but what
happens later is they were completely failed to continue this innovation and by the time other
companies like Hyundai and Maruti come up with new ideas which attracts customers to their
product, at that point also Honda stick to what they have as a result company faced a massive
loss and after realizing all this factors company strengthen their marketing team and
conducted a market survey and comes up with new Amaze which makes a record sales within
5 months.
Here the company should focus on market survey, these days people are more aware and
expecting more sometimes brand names cannot do everything but technology can. So, there
are high chances to lose customers if some other company offers more featured budgeted
car. The first-generation amaze was launched in March and it was a new beginning for Honda.
This 1.5L diesel engine pushed Honda at the number three position within short time. Amaze
recorded cumulative sales of 2.5 lakhs units. Honda touched it peak sales in FY 2015-16 by
selling 192,060 units(total) after this huge success the car makers fall down to 1.72 lakh units
in FY 2017-18. After this massive loss company focused more on their market survey and
come up with a car that customers were waiting for in the market. The amaze is coming with
three-year unlimited warranty and also the new amaze has the highest level of localization
that is 96.5%. Honda amaze is now the biggest gainer in India. Almost 8000 units sold in
January 2019 that means an increase of 181% overall in monthly sales. Not only amaze in
2019 Honda car makers in India reported a 23%sales increase in domestic sales. All this
because of the sudden massive sales increased from amaze and the reason behind amaze is
its new aggressive looks and its impression of a proper sedan rather than a stretched
hatchback. The new amaze also won the sedan of the year award in 2018 at the tech and
auto awards. And also won the compact sedan of the year in 2019. The company is planning
to take this momentum in coming years for that a separate marketing and technical team is
ready and by net years Honda is planning to come up with the new generation civic. Honda is
expecting this sedan to take the phase and push the net profit and revenue to the next level.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Inductive Approach
This is a branch of statistics used to collect samples and using that same data to draw
conclusion, predict future behavior, make decisions, forecast.
Inductive approach is also a collection of empirical data which begins with a research
question. This approach is usually used to create theories and hypothesis.

In 2013 the 1st generation Amaze made a huge difference in Honda profit also it was a threat
to other cars in that segment. Honda Amaze was a lucrative sub model which gives direct
competition to Maruti swift dzire, Hyundai xcent, tata tigor, ford aspire,volkswagenameo, and
also for some other models. What makes the difference in 2013 is the company launches
Amaze with both petrol and diesel variants. After a great success Honda Amaze started
getting avoided by the customers then in 2018 company comes up with the new hen Amaze
after a complete market study, this makes a dramatic difference that new Amaze makes a
record of 50,000 sales in 5months which badly affected other companies. Main competitor for
Amaze is Maruti swift dzire faced a drop of 9% market share.
According to a survey conducted by team-bhp 43.52% out of 100 choose Honda Amaze. Full
list is given below.

MODEL GRAPH POINTS PERCENTAGE

Honda Amaze __________________ 131 43.5%

Maruti Dzire _________ 56 18.60%

Hyundai Xcent _ 3 1.03%

Ford Aspire ___________ 64 21.26%

VM Ameo ____ 20 6.64%

Tata Tigor _____ 23 7.64%

Other __ 4 1.33%

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Why Amaze?

3. Commanding exterior
4. Elegant interior
5. CVT for diesel engine
6. Paddle shifters
7. Efficient engine options
8. Cruise control

Major highlight of this car is its Diesel + CVT combination this combination made this car
unbeatable.
From the above table it is clear how it affects other players in the same segment. To make a
sudden change in market they need something special and here Honda brings that special
through amaze. 3 years unlimited km warranty plus 4 stars in the crash test make them more
powerful. On the other hand, other cars in the segment especially dzire is giving a good
competition so it is important for them to keep updated.

Null hypothesis
After all this research and analysis, I came to a conclusion that the first-
generation amaze launched in 2013 and the new generation amaze launched in
2108 made a huge difference in Hondas profit margin and also revenue margin.

Conclusion

From this research I have understand that how management information and decision-making
are enhanced by the company’s using application of statistical methods. This assignment also
explains what statistics is and how it is related to automobile sector. The and most importantly
how an effective idea or an innovative project can completely change the profit and revenue of a
company.

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No:
Unit No. : 31
Unit Name: Statistics

Bibliography
macrotrends (2019) macrotrends [Online] Available at:
https://www.macrotrends.net/stocks/charts/HMC/honda/financial-statements [Accessed: 27
september 2019].
macrotrends (2019) macrotrends [Online] Available at:
https://www.macrotrends.net/stocks/charts/HMC/honda/financial-statements [Accessed: 17
september 2019].
macrotrends (2019) macrotrends [Online] Available at:
https://www.macrotrends.net/stocks/charts/HMC/honda/financial-statements [Accessed: 26
september 2019].
trends, m. (2019) macrotrends [Online] Available at:
https://www.macrotrends.net/stocks/charts/HMC/honda/financial-statements [Accessed: 26
spetember 2019].

https://www.thehindubusinessline.com/companies/hondas-new-amaze-records-50000-unit-
sales-in-5-months/article25285576.ece

https://www.statista.com/statistics/200002/international-car-sales-since-1990/

KEVIN GRACE JOSEPH

Pearson BTEC Level 5 HND
in Business
Regd No: