RESEARCH PROJECT REPORT On

“Measuring Customer Satisfaction for Small Cars” Submitted in partial fulfillment of MASTER OF BUSINESS ADMININSTRATION Programme MBA (2009-10) Uttar Pradesh Technical University, Lucknow

UNDER THE SUPERVISION OF – SUBMITTED BYDR. MANISH GUPTA

VIBHU

SHARMA

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INVERTIS A GROUP OF INSTITUTION

Certificate

This is to certify that Ms. VIBHU SHARMA a student of MBA IV semester has completed her Research Project Report titled “MESAURING CUSTOMER SATISFACTION FOR SMALL CARS” assigned by MBA Department under my supervision. It is further certified that he has personally prepared this report that is the result of his personal survey/ observation. It is of the standard expected of MBA student and hence recommended for evaluation.

DR. MANISH GUPTA

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ACKNOWLEDGEMENT

No work can be done in isolation and this work was no exception. It required the time And efforts without which this would have been very difficult. This research is a result of few persons whose guidance and efforts were vital for me. I am highly grateful to Dr.MANISH GUPTA, reader who has showed me proper direction and devoted his valuable time to accomplish my project. Last but not the least I will thank my parents who were consistent source of inspiration and gave me courage and resources to fulfill my project.

VIBHU SHARMA

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TABLE OF CONTENT Chapter-1:

IMPORTANCE OF CARS IN LIFE OF A PERSON

Chapter-2:

LITERATURE REVIEW

Chapter-3:

UP COMING MODELS OF SMALL CARS

CHAPTER -4:

CURRENT STATUS OF AUTO INDUSTRY IN INDIA

CHAPTER -5:

RESEARCH METHODOLOGY

CHAPTER -6:

ANALYSIS & ITS INTERPRETATION

CHAPTER -7:
• • •

FINDINGS CONCLUSION RECOMMENDATION
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therefore it become utmost important to understand what are the customer preferences for small cars and what additional features they would want in it. To understand what feature customer aspires for in small cars.• BIBLIOGRAPHY OBJECTIVE• • To determine how satisfied the customers are with small cars. 5 . SCOPE – Small cars are becoming most preferable and likeable product by the customers not only because of its utility and status value but also because of economic and comfortable and safe mode of transportation.

CHAPTERI 6 .

Family utility – A means of transport for family in which family moves together.IMPORTANCE OF CARS IN LIFE OF A PERSON – C . the essence of modern times is the time is pre and man is busy every man of subsequent has tied schedule to meet and therefore a private comfort assured way of transport which only provided by a car becomes of valuable importance in a life of a person. it also provide pleasure or convenience and social location to the family members. 4) 7 .Commodity that A . 3) Professional utility – it provide fast convenience because they have to move fast to their destination.Respect The utility or importance of car can be divided into:1) Social utility – Car fulfills the purpose of social utility of human beings as people who have cars are regarded or perceived as having a high social status and they command respect.Assures R . 2) Value utility – It helps in providing a complete travelling experience.

CHAPTER- II

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INTRODUCTION OF SMALL CAR INDUSTRY IN INDIAThe small car segment is one of the largest car segments in India. Small car in India is Defined as a car that has length between the ranges of 3.8 to 4 meters. It comprises of Nearly two-third of the sales in the country. This car segment has grown by leaps and Bounds in past few years in the wake of growing economy, more dispensable income and Growing richer middle-class. The new breed of young executives with fatter pay-checks Has led to more purchase power. Young India is booming and auto industry is basking Under the sun. By the year 2010, India shall witness a boom in the small car segment with Major car makers making their foray in India and India will have small cars from General Motors, VW, Fiat, Ford, Toyota, Honda, etc. The existing small cars would attract hefty discounts or would be phased out to compete With the new cars laden with latest trendy features like ABS, airbags, automatic drive, Etc. We expect that all the cars shall be placed in the price band of Rs 3 lakh to Rs 5 Lakh. Tata Nano is also set to roll out in the near future and the auto market waits eagerly including auto critics and the Indian customers.

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Maruti Suzuki is the uncrowned king of the small car industry in India. It has already made India as its manufacturing and exports hub for its small cars. It also has one of the Largest product portfolios in India amongst all the other car makers. It is the largest auto maker in India by sales and has various models like Alto, Wagon R, Zen, 800, and Swift. Each car has made its mark in the small car segment with its unique features and price factor. Maruti has made India as its small car manufacturing and exports hub. It caters to The overseas demands of Suzuki models worldwide. Maruti Suzuki plans to launch AStar and Splash by the end of 2008. Hyundai is the second largest auto manufacturer in India and has also made India as it’s manufacturing and exports hub. It currently has its manufacturing plant in Sriperumbudur, near Chennai, with an existing capacity of 600,000 units. It is planning to expand its production capacity by nearly another 100,000 units. Hyundai has strong sales figures in India and has witnessed more than 40 percent growth in the first four months of 2008 it. It has strong contenders for the small car segment like Santro, Getz and i10. It also plans to launch its new models of i20 and i30 in India powered with the new Kappa engine currently being used in i10. I20 is expected to launch some time at the end of 2008. Fiat would also launch its small car Grand Punto by the year end with Tata Motors at its tails with a new version of Tata Indica. The much awaited Tata Nano would also roll out

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in the last quarter of year 2008. India would also witness up! From General Motors and Jazz from Honda. Toyota is also ready to launch its small car by 2010 in both petrol and diesel options Renault-Nissan has also announced to launch a Nano-competitor being manufactured in alliance with Bajaj.

The small car market in India is increasing by leaps and bounds. The indigenous market for small cars now occupies a substantial share of around 70% of the annual car production in India of about one million. The main players in the car market like Tata Motors and Maruti Udyog are fiercely competitive and more or less all the automobile companies in India that have forayed into the production of small cars are trying to outdo each other in terms of design, innovation, pricing, and technology, in order to gain control of the small car market in India.

The biggest players in the Indian small car market are engaging in a healthy competition, which has intensified since the Indian government decided to boost the small car sector. In this regard, a reduction in the excise duties has been thought of. Even the engine capacities are expected to be raised to 1500cc. The new small cars in India cars may even be fueled by gasoline and diesel in the future. With all these facilities, it has been estimated that the indigenous car market is going to move beyond the 3.5 million mark very soon.

Suzuki, which is now heading the Indian small car market has plans to invest an additional US$ 650 million for research and development work in its Manesar Plant. This

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Even Hyundai Motors is on a similar investment spree for research work with a venture of US$ 700 million in India. The overall age for owning a car has also decreased in recent years. This rising demand for small cars is attracting companies like 12 . It is supposed to invest a total amount of US$ 540 million and manufacture nearly 100. Further. has decided to invest in the Indian small car market. at least a small car. the demand for them has shot through the roof. One of the biggest players in China's car market.000 mini cars on an annual basis. However. with the growing affluence of the rural sector. It is expected that more and more foreign companies are likely to join the healthy race in the Indian small car market.Plant will also be used for manufacturing diesel cars. owning a car. Suzuki has decided to enter into a joint-venture with Nissan to launch a new mini car model in India. The two cars from the Hyundai stable . is a foregone conclusion in modern India. Factors driving the demand for small cars in India The increase in the demand for small cars can be attributed to the aspirational lifestyle of people which makes them strive for a car early on in life.Santro and Getz are already in the market and have been doing exceptionally well in the past few years. since small cars are more affordable and utilitarian. Volkswagen.

000 very soon.000 vehicles. Tata Motors has decided to launch a mini-car in 2008. Therefore. which will cost as less as US$ 2. to launch a variety of mini-cars in association with Fiat. Tata Motors is also going through a process of decisionmaking. Honda has also decided to increase its manufacturing capacity in India to 100. The small car market in India is witnessing the maximum activity and is all set for more exciting times ahead.General Motors which has increased its yearly production in India to 140.200. Small Cars in India Chevrolet Daewoo Fiat Hyundai Mahindra-Renault Maini Maruti Suzuki Opel Skoda 13 . with more players from India and abroad joining the race. the leaders in the market for small cars in India can be seen to engage in a price war to make more cars available to the majority of Indian citizens. The Maruti 800 which is the most preferred car among the Indian middle classes can now be bought at a lower cost.

Post liberalization. BMW. India is on every car manufacturer's map. but it is also expected to be the seventh largest by 2016.Current scenario Not very long ago. Earlier. Post liberalization. Mahindra. Some of the car manufacturers who have set up base in India are Audi. All that was in pre-liberalisation India. many foreign manufacturers have lined up and have setup base in India. Not only is it the eleventh largest passenger car Market globally. while the Premier Padmini was a Fiat 1100 assembled in India. paved the way for a renaissance in the Indian automobile sector. Maruti. which existed before 1991. Honda. when the first liberalization measures were announced. 14 . Skoda. Other domestic manufacturers have also improved production levels and are in the race for producing better models as well. Mercedes. the production of the Maruti Suzuki 800 hatchback car in 1983 . India is the second largest two-wheeler market and the fourth largest commercial vehicle market in the world. Hyundai. Chevrolet Fiat.an old British car. Suzuki. Mitsubishi. the only cars that were available in India were the Ambassador and the Premier Padmini. The reasons are not hard to notice. The Ambassador is a replica of the Morris Oxford . Ford.a joint venture between Government of India and Suzuki Motors of Japan. Currently.

Tata already is in the process of launching the small car Nano to suit this segment's needs. and convenient installments. premium and sports utility vehicles currently represent the car market in the country. President Designate for Ford India.small. a segment is also emerging comprising of people who wish to upgrade to cars from two wheelers. Many other car manufacturers such as Bajaj Auto are also following suit and are in the process of coming up with their specific versions to cater to this segment. and Volvo. companies like Ford are planning to make India a regional hub for exports of both small cars as well as engines. attractive rates of interest. four segments . Michael Boneham. India's economic growth is booming currently. Some of these are comparatively easy availability of vehicle finance. A niche concept cars segment is also emerging wherein reputed re-modellers like DC Chhabria cater to individuals who wish to remodel their vehicles to create concept cars for their use. the company plans to export the small car and the engine for markets abroad. Toyota. midsize. These manufacturers have set up manufacturing facilities in India. Competition has forced manufacturers to be innovative and responsive to customer demands and needs. There are many reasons for the impressive growth of the Indian car industry. Contrarily. Depending upon customers needs. or are importing cars and spares to meet the demands of this growing market. Now that India is not alien to quality and perfection. He indicated that one of the markets would be chiefly Ford Asia Pacific Region while other markets are under consideration presently.Tata. customer expectations have soared to higher levels. According to Mr. For example. 15 . Volkswagen.

The latest trend of new cars on Indian road has led to the emergence of an entirely new market in second hand cars too. people who were earlier part of the small car segment now have moved over to the premium car segment. The growth of the second hand market is not surprising. people left with a lot of disposable income spend it towards meeting their mobility needs such as cars. which prompt them to acquire them. Moreover. the trend is to get rid of the cars that defined them as part of the earlier segments and buy cars that identify them with the newer segments. a convenient union budget in the current financial year (2008-09) has worked in favour of the automobile sector. many people are now upwardly mobile. Therefore. As mentioned. there is high demand for cars across all these segments. Banks and other financial institutions have an assortment of vehicle loan schemes with attractive rates of interest and convenient installments. Apparently. and those in this segment have moved over to the luxury car segment. This makes them sell their current cars for reasonable resale values. With the growing economy. People get attracted by newer models. The new car market has grown at an incredible pace in India. This phenomenon benefits those who want to buy cars. which has seen an uptrend in sales across various segments. but are not able to afford new 16 . Additionally. loans are easily available in the country for purchase of new cars. the desire for newer cars and models is yet another reason.Currently. These schemes encourage people to go in for loans to purchase cars of their choice. Many entrepreneurial and professional dealerships have sprung up in many cities in India dealing in second hand cars. Therefore.

second hand cars at reasonable prices. Many companies like Maruti Suzuki (Maruti True Value) have also established resale showrooms where people can purchase genuine. good condition.Ones. what remains to be seen is how these developments will go a long way to transform the mobility needs of the ordinary Indian. 17 . With the emergence of favorable trends in the automobile sector in India.

These cars are basically manufactured by . 2 children.CHAPTERIII UP COMING MODELS OF SMALL CARSSmall cars are classified according to the price range which varies from 1 to 3 lakhs.Maruti Udyog and Reva.2 adults. While companies like Volkswagon 18 . These are basically entry level cars which are preferred by service group and middle income group. It has the capacity to carry 4 passengers.

Toyota Kirloskar Motors will roll out its new 19 . SMALL CARS MODEL Tata Nano Maruti Alto • • • Alto Alto Lx Alto Lxi COMPANY Tata Motors Maruti Suzuki India Ltd.  The Japanese car manufacturer. Tata Magic Tata Motors  Toyota to Launch Small Car in 2011compact car planned for the Indian car market in 2011. Reva Electric Car Co. Maruti Omni • • • Reva • • • • Reva AC Reva Standard Reva Classe Reva i 5 seater Maruti Omni 8 seater Maruti Omni LPG Maruti Omni Maruti Suzuki India Ltd.and Reva are yet to launch their models in the market. Maruti 800 • • • Maruti 800 STD BS III Maruti 800 AC BS III Maruti 800 Duo Maruti Suzuki India Ltd.

according to the market demand."  The company expects to be the market leader in MPV (multi-utility vehicle) segment."  They are investing Rs 3." the project cost is still being worked out. “In 2008. they said: “We hope that things will fall on places in the later of this year.200 crore for setting up our second manufacturing plant in Bengaluru where the new car will be manufactured. "Production will start in 2010 at our new plant at Bidadi in Bengaluru.  The company also launched its new Innova in the Andhra Pradesh Market on Wednesday.  The vehicle is available in Petrol variant.000 units and later on we will increase it. Planning to launch our small car especially focused on the Indian market. but we managed to keep it down to 6%. They said: "We will also launch CNG version of Innova in 2010. Things have progressed on a much larger scale since then and REVA has now spread across the world 20 . which is under trails at Bengaluru plant and its price can be about Rs 70.000. It was the first company in India which came out with a car running on electricity as opposed to diminishing natural resources. the MPV market saw a drop by 13 per cent.000 more than the regular version.  Reva All Set to Grow Think electric vehicles and the first company that springs to the Indian mind are REVA. however."  When asked about the crisis in Auto sector. by the end of 2011. which it sold in 2008.  "In the first phase."  For 2009. plant has a capacity of 70." Toyota will use its second plant at Bidadi near Bengaluru to manufacture the small car. company targets to retain its volume of 44.

The company's current model. announced in January and hits production in May and will offer improved acceleration.000 units per annum which will also account for the plan of introducing one new model every year starting end 2009  The REVA electric car has seen a rise in its popularity in Europe. a longer 120 km range accompanied by a six hour standard charge and a one hour fast charge to 90 percent. steel structure technology and a C02 monitor. The expansion is happening in India as well with REVA all set to build a new assembly plant in Bangalore. The new lithiumion powered REVA L-ion . the new plant will have a capacity of 30.  Naturally based facilities for the plant will include rainwater harvesting. the company’s new facility in Bangalore will be one of the most eco-friendly units around and will be built according to the LEED (Leadership in Energy and Environmental Design) green building rating system standard.  Just like the car. natural light and ventilation. solar energy harvesting. The employees on the other hand get a modern canteen. games room and electric buses to transport them to and from work UPCOMING CAR MODELS in INDIA CARS AWAITED COMPANY NAME MODELS TYPE 21 . the REVAi. and is available in seven countries in the continent with more names to be added in the list soon. Thanks to the increased production. which is marketed in UK as G-Wiz has a top speed of 80kmph. which is an internationally accepted rating system and benchmark for evaluating and certifying sustainable sites.

Hyundai Motor Co. Fiat Fiat General Motors General Motors Hindustan Motors Honda Motors Hyundai Motor Co. i40 Splash Kazshi Luxury Car Premium Car Luxury Car Luxury Car Mid Size Car Luxury Car Commercial Vehicle Premium Car Mid Size Car Mid Size Car Luxury Car Luxury Car SUV Small Car Premium Car SUV Mid Size Car Mid Size Car Luxury Car 22 . Hyundai Motor Co.Aston Martin Audi AG Bentley BMW Chevrolet Chevrolet Daewoo Ford Motor Co. Maruti Suzuki India Ltd Maruti Suzuki India Ltd AMV8 Vantage RF4 Brooklands coupe Minis M 300 Cruse World Truck Focus Grand Punto Bravo Hummer Cadillac Grandis Jazz Avante Santa Fe i30.

Maruti Suzuki India Ltd Mahindra Mahindra Mercedes Benz Mitsubishi Mitsubishi Mitsubishi Mitsubishi Nissan Nissan Reva Electric Car Co. Mahindra Renault Mahindra Renault Rolls-Royce Skoda Auto Tata Motors Tata Motors Toyota Toyota Escudo Ingenio Hybrid Scorpio C-Class Evolution X Icar Gallant i-MiEV Livina Infiniti G35 Spl.Ed Megane Sandero Drophead Coupe Roomster Elegante Nano Lexus LS 460 Fortuner SUV SUV SUV Luxury Car Luxury Car Mid Size Car Premium Car Premium Car SUV Mid Size Car Small Car SUV Luxury Car Luxury Car SUV Mid Size Car Small Car Luxury Car SUV 23 .

Volkswagen Volkswagen Volkswagen Volkswagen Volkswagen Volvo Polo New Beetle UP Tiguan Phaeton C30. C70 Premium Car Small Car Luxury Car Luxury Car Luxury Car Luxury Car 24 .

competition from other models. power packed and stylish as well. People want a Car that is fuel-efficient. Hyundai.CAR MODELS IN INDIA Your search for the best online guide on Car Models in India ends here. Cars. We have made your Car selection process so convenient that you need not go anywhere else to find details. have now become a necessity in the fast paced life style. In India the hatchback is the most competitive car segment and its manufacturers like Maruti. color and variants. Tata. Hatchback car is a small passenger car consisting of a full-height door at the rear that also includes a window and used from behind to access the cargo and luggage space. These kind of cars have two rows of seats. price. which were considered as a luxury good in the past. safety and technical specifications of every Car. packed with latest and innovative technology with the eye catching features. You can find here the key characteristics. POPULAR CAR SEGMENTS IN INDIA Hatchback Hatchback car models consist of small cars that sell like hot cakes for their value for money advantage. In this section of Car Models we have provided an exhaustive data covering each and every aspect that you need to know before going to purchase a Car. Chevrolet and Fiat launch their cars on regular basis to outshine each other and capture the market 25 . These cars are also defined as five doors car having four access doors and a hatch or tail gate. launched in India.

are featured with host of luxury features like high-end entertainment system. integrated steering wheel. carrying high price tag with them. entering into this segment featuring their sedans of pleasurable and comfy luxuries. plush and high class wood and leather work. Sedan cars. classy looks. In India. 26 . Volkswagen and Skoda. contemporary and fully efficient security features.Hatchback Cars in India Chevrolet Aveo U-VA Ford-Fusion Hyundai i20 Honda Jazz New Chevrolet Spark Fiat Grande Punto Hyundai Santro Xing Maruti A-Star Maruti WagonR Skoda Fabia Tata Nano New Fiat Palio Stile Hyundai i10 Hyundai Getz Maruti Alto Maruti Zen Maruti 800 Maruti Swift Maruti Zen Estilo Tata Indica Sedan Sedan or Saloon is a car model with passenger carrying capacity of four or more persons having two rows of seats and two or four doors with a separate trunk or boot at the rear side. like Volvo. recent years have witnessed big players.

Sedan Cars in India Ambassador Ford Fiesta Honda Civic Hyundai Elantra Hyundai Accent Maruti Suzuki SX4 Mitsubishi Lancer Skoda Octavia Toyota Camry Tata Indigo XL Chevrolet Aveo Fiat Linea Honda Civic Hybrid Chevrolet Optra Magnum Honda City ZX Honda Accord Hyundai Sonata Embera Hyundai Verna Maruti Baleno Maruti Swift Dzire Mahindra Logan New Skoda Superb Toyota Corolla Toyota Corolla Altis New Maruti Esteem Mitsubishi Cedia Skoda Laura Tata Indigo CS Toyota Corolla Altis Volkswagen Jetta 27 .

Volvo and Honda. These type of vehicles are famous for their sturdy looks. strong on road presence and carries much powerful engine with high torque. a Sports Utility Vehicle is a vehicle that combines loading capability of a pickup truck and has passenger carrying space that is of a mini van.Sports Utility Vehicle (SUV) In technical terms. Sports Utility Vehicles (SUV) in India Chevrolet Captiva Honda CRV Mahindra Scorpio Mitsubishi Montero Toyota Land Cruiser Prado Ford Endeavour Honda CRV 2008 Ford Endeavour Thunder Plus Mahindra Bolero Maruti Grand Vitara XL-7 Maruti Gypsy King Mitsubishi Pajero Toyota Fortuner New Tata Safari 28 . SUVs are designed to run in any kind of terrain without affecting its performance. In India there are so many big players in the field of Sports Utility Vehicle segment like Tata. Therefore SUVs have become ideal for families and friends for their long and adventure trips. Mahinda Scorpio. Ford. Maruti. comfort and safety.

Bentley. a MUVs are kind of automobile which are 29 . Daimler-Benz. Volvo and Volkswagen are venturing in India to enchash the market growth. Luxury Cars provide ultra modern facilities for plush enjoyment of the high class drive with greater level of comfort in comparison to other Cars. designed and packed with high-end. In India Luxury Cars market is growing at sound pace from last five years and big shots of this segment like Audi. In technical terms. super comfortable and convenient features for both the driver and the passengers.Luxury Cars A Luxury Car is an expensive vehicle. Owning a Luxury Car becomes a symbol of social prestige. Unlike the mass-production the Luxury Cars are made in small quantities with a very heavy price tag sometimes in Crores also. abbreviated as MUV. is also know as Minivan or MultiPurpose Vehicle (MPV). Luxury Car Models in India Audi Q7 SUV Bentley Azure Volkswagen Passat Audi R8 Audi TT Coupe Bentley Continental GTC Mercedes Benz Volvo S80 Volvo XC90 Multi Utility Vehicle (MUV) The Multi Utility Vehicle.

big boot space. Ford will not change its plan of investing in the Indian market and will increase the localisation of parts to be competitive with other players. The small car will be engineered for Indian roads and will be available in petrol and diesel variants and will shorter than 4 metres in length. Due to their characteristics of ample seating for 07-10 passengers. LATEST NEWS RELATED TO UP COMING MODEL Ford India will roll out a new small car in 2010. compact and mini. 30 . In the Indian automobile market the mini version of MUVs are more popular & leading auto makers like Tata Motors.taller than a sedan and hatchback and provides larger interior space through their removable seats. The petrol engine will displace upto 1200cc and the diesel upto 1500cc fulfilling all the norms of a small car defined by the Indian government getting a cut in excise. Maruti Udyog and Toyota are the key players of this field. the MUVs are preferred most by large families and corporate houses. Chevrolet. Multi Utility Vehicles are classified into three different variants of large.

India Predecessor none Class Body style(s) Layout Engine(s) RR layout 2 cylinder SOHC petrol Bosch multi-point fuel injection (single injector) all aluminium City car. Tier 0 4-door hatchback sedan 31 . Gujarat. Unlocalized. near SanandAhmedabad.Tata Nano Manufacture Tata Motors r Parent company Also called The People's Car Tata Sons Production 2008—present Assembly Charodi.

623 cc (38 cu in) Transmissio 4 speed synchromesh with n(s) overdrive in 4th Wheelbase 2.1 in)[1] 1600 mm (63 in)[1] Kerb weight 580 kg (1.300 lb)[2] Fuel capacity Related Designer Official website Girish Wagh.8 in) Length Width Height 3100 mm (122 in)[1] 1500 mm (59.230 mm (87. Justin Norek of Trilix. Pierre Castinel[3] 15 L (4 US gal.300 lb)-600 kg (1. 3 imp gal)[2] 32 .

Maruti small cars to get next generation engines Soon Maruti Suzuki cars will come with the next generation engines that are highly fuel efficient and environment friendly. the managing director said in the interview to The Economic Times. Maruti’s first series of the next generation engine. According to Maruti Suzuki India managing director S Nakanishi the new engine are aimed at achieving greater exports to European and American markets while the same will be available in domestic market as well.K Series .with 1 liter capacity will fit with all Maruti Suzuki small cars starting from the A Star model which is expected to be released in October. The new engines developed as part of Rs 9. will be produced at the Martui facility in Mansheer.000 crore modernisation plan. The Hyundai i10 has 1.1 litre engines while Chevrolet Spark comes strapped with 1. The new petrol engine . M-series Euro IV petrol engine has already been launched in the premium sedan SX4 last year. Swift and WagonR. Maruti Suzuki will introduce the new Engine in its existing models like Zen Estilo.0 litre 4-cylinder SOHC engine. 33 . The present F and G series Euro III engines will be phased out by 2010. The development of K-Series engines comes with the introduction of highly efficient engines by rival Hyundai on it popular i10 model.

style. half wheel cover. space and other special features has made it one of the highest purchasable cars amonganyeconomyclass. B and C pillar trims. 2 cup holders. standard inside rear view mirror. seating capacity of 5. It has five variants : • • • • • • Santro XK Santro XK (Non AC) Santro XL Santro XO Santro AT Santro CNG Santro XK Along with the other features that are present in Santro XK (Non AC).Hyundai Santro In the field of mid size car. clear head and rear lamps. Its design. low fuel warning etc. It has features like dual side impact beams. chrome1 radiator grille etc. Santro XK (Non AC) This model of Santro is without Air-conditioner. chrome1 radiator grille. other features present in this model are air conditioner. day and night inside rear view mirror. S vinyl molded roof lining. 34 . semi cloth upholstery. Santro Xing is capturing the market very rapidly.

power windows (front) etc. door trim with fabric insert. rear wiper and washer. 35 . there are some special features present exclusively in this model like B/C bumper. waistline molding. passenger side vanity mirror etc. driver side seat under tray. deluxe floor console. internally adjustable OVRMs. rear parcel tray. hydraulic power steering.Santro XL Along with the features available in Santro XK. map pocket front door driver side. Santro AT has almost all the common features of other models. chrome2 radiator grille. exclusive molded door trim. Santro XO Along with the features present in other models. passenger side OVRM. rear defogger. Santro AT Excluding the special features in other models . front door full size arm rest. tinted glass. added features in this model are 4 doors CLS.

70% .Santro CNG Hyundai Motor India adds to its glitter by launching Santro CNG thus making it even more economical and eco-friendly car. And as expectations for the affordable class become greater. But the Aveo does offer one of the best sticker prices for the segment. To ensure the better safety. can hold a substantial amount of cargo with the rear seats folded. The 2009 Chevrolet Aveo scoots down the road. and its list of safety features is pretty short. the Aveo obviously lags 36 . maybe five. The CNG on-board cylinder has an approximate capacity of 12 kg with a 2 year warranty on CNG kit and its fitments.1/km thus increasing the savings of the consumer up to 60. nor does it have enough quality or fun driving dynamics to earn it a slot among the class leaders. This ranking is based on our analysis of 66 published reviews and test drives of the Chevy Aveo. Still the Aveo's good points don't clearly distinguish it from other subcompacts. and our analysis of reliability and safety data. This new variant of sSantro offers its buyers with one more option to muse over because of its estimated low running cost of only Rs. The car also has an optional manual selector switch which makes the user to make a choice between gasoline or CNG. The Aveo's performance pales in comparison to sportier models from Honda or Mazda. and has a reasonable amount of space for four passengers. Chevy Aveo The 2009 Chevy Aveo ranks 32 out of 35 Affordable Small Cars. CNG kits contains advanced Lambda control system to provide Euro III emission norms.

Saab and Hummer brands. shrinking or closing the Pontiac.behind competitors for making anti-lock brakes an optional feature and not offering side curtain air bags at all. plus it earns top safety scores for its performance in front and side crash tests. 37 . Cadillac and GMC automobiles. This ranking is based on our analysis of 73 published reviews and test drives of the Chevy Cobalt. and GM intends to focus on Chevy cars as well as Buick. The Cobalt is an adequate performer with great fuel economy and enough upscale cabin options to entice a large audience.000 the Nissan Versa has six standard air bags. But its class-leading competitors have similar qualities and more comfortable seating. But Chevrolet is a key component of the struggling auto industry. the 2009 Nissan Versa might be worth your consideration. the Aveo5. Saturn. and our analysis of reliability and safety data. The Aveo sedan and its hatchback counterpart. while selling. For less than $11. If you're concerned with the lack of standard safety features on the Aveo but still want a value-priced hatchback. which increased its fuel efficiency along with its overall appeal. One of the Aveo's enhancements for 2009 is variable valve timing for its four-cylinder engine. Chevy Cobalt The 2009 Chevy Cobalt ranks 22 out of 35 Affordable Small Cars. do have a low MSRP and great gas mileage working in their favor.

Saab. the VW Rabbit might appeal to you.Reviewers with realistic expectations are pleased with the Chevy Cobalt. available entertainment options. Reviewers are surprised by the amount of space inside the Rabbit. But others get stuck on the car's small dimensions and less than definitive styling. For 2009. Saturn or Hummer. LT and performance tuned SS Turbo trims. But small engine cars are experiencing a renaissance. and noteworthy gas mileage. Cadillac and GMC. But one thing the Cobalt has going for it over the Rabbit is the chance to buy domestic. so while its successor the Chevy Cruze is well on its way. General Motors intends to focus product and marketing on brands like Buick. Be sure to check for current Chevy deals that may be available on a new Cobalt. The Sport model has now been discontinued. the Chevy Cobalt comes as a two-door coupe or four-door sedan in LS. production on the Cobalt might continue as well. Even with the uncertainty facing the auto industry and the fate of brands like Pontiac. Chevrolet. and also appreciate the car's unique VW design elements. Those writers highlight the car's dependable performance. there were rumors the 2009 Cobalt was about to be replaced itself. 38 . If you need a roomier car with a bolder visual statement. First introduced in 2004 to replace the well loved Chevy Cavalier.

CHAPTER IV CURRENT STATUS OF AUTO INDUSTRY IN INDIA 39 .

Auto Industry StrugglingOverall production in January 2009 fell by 11.21 percent growth during April – January 2009 over April – January 2008. Multi Purpose Vehicles grew by 6. January sales are always more than December sales since December sales are always subdued because of ‘model year change’ in January. The cumulative production data for April 2008 – January 2009 shows production growth of 2.62 percent. However. However. However. they were not enough to make the year on year growth positive.38 percent. though January 2009 sales registered more than December 2008 sales.33 percent during this period. which fetches better value of a vehicle in the used vehicle market. Passenger Cars fell by 0. with lower prices and huge discounts. the current scenario of liquidity crunch and real asset falls with the financial instrument has also contributed in reduction sales of automobiles.92 percent over the same month last year. Utility Vehicles fell by 7. Since the sale of auto industry largely depends on the financing by the commercial banks therefore. The sales in January 2009 for passenger 40 . the government of the India has taken measures in the interest of the economy to reduce the lending rate in many leading banks including rate SBI is already provide allowance to reduce the burden Domestic Sales: Passenger Vehicles segment registered de-growth with (-) 1.32 percent over April 2007 – January 2008.

02 percent.30 percent and even the smaller buses also fell by 14. M&HCV fell by 67. While Passenger Carriers grew by 12. The segment declined by 19.95 percent growth rate in January 2009 over same month last year Exports: The period from April 2008 – January 2009 saw automobile exports registering a growth of 30.24 percent.30 percent. The sales of Commercial Vehicles Segment again registered severe de-growth.32 percent during April – January 2009. Motorcycles went into negative territory at (-) 0.83 percent during April – January 2009 as compared to the same period last year. In January 2009 commercial vehicles sales fell by 50. However. Electric two wheelers segment grew by 38. However. Two Wheelers sales registered (-) 3.29 percent over same month last year. three wheelers fell by 12. Light Commercial Vehicles also recorded de-growth at (-) 8. While Medium & Heavy Commercial Vehicles declined by 29. buses (M&HCV) fell by 14.16 percent and LCV fell by 30.vehicles fell by 6.40 percent.with all sub-segments registering negative growth.27 percent during April – January 2009.32 percent. Three Wheelers sales registered decline with growth rate being (-) 6. Two Wheelers registered marginal growth of 1. Passenger Vehicles and Two Wheelers segment grew by 41 . Mopeds and Scooters grew by 3.72 percent. In January. Also. registering positive growth.49 percent in April – January 2009.42 percent.11 percent. Goods Carriers declined at (-) 39.96 percent compared to 2008.36 percent and 8.88% over January 2008 .47 percent with all segments except Commercial Vehicles.

following a less-than-stellar launch of the Toyota Echo a few years ago.000 and come with designs that make the vehicle feel roomier and have safety improvements.000 to $16. Two niche small vehicles will be shown -. The new models range in price from about $10. driving interest in the segment.have helped give the "B-cars" more visibility in the crowded auto marketplace. • Japanese automakers brought three new models to showrooms last year. • Subcompacts have made strides in recent years. entry-level vehicles used to offer few frills and raised concerns over safety.88 percent.55 and 29. Kia Motors America's Spectra and Rio models and the Hyundai Accent. a focus on slick designs and technology marketed to young drivers -. However. according to figures released by Auto data Inc. builds through its relationship with South Korea-based Daewoo.elevated gas prices. which begins media previews on Sunday.S. But a combination of factors -. Honda Fit and Nissan Versa. Sales of seven vehicles in the category were up nearly 50 percent in 2006. The newcomers joined the Chevrolet Aveo. exports of Commercial Vehicles declined at (-) 18. but analysts said the new models and $3 a gallon gas prices last summer created some buzz. subcompact vehicles have come a long way from their "econobox" past.BMW AG will raise the curtain on the new 2007 Mini Cooper while DaimlerChrysler AG is showing its two-seater Smart for two. which is expected to appeal to congestion-pressed city drivers.000 units.” • The small. It represents only a small slice of the U. Three Wheelers exports grew by 10. Small Car Competition Heating Up Among Automakers “Tiny and affordable.99 percent during this period. • Car enthusiasts are not expected to see any major splashes in the segment at this month's North American International Auto Show. 42 .59. the Toyota Yaris. which General Motors Corp.86 percent respectively. car market. • But the segment is expected to grow. to more than 290.

• The strong showing could lead to increased subcompact production. But many of the new subcompacts offer standard side air bags and several have received solid ratings in crash tests by the government and the insurance industry. Several provide jacks for iPods and other MP3 players and powerful stereo systems.000 versions of the Fit amid high demand. sold about 28. • "What's fascinating is that while the vehicles are smaller. Honda Motor Co.S. they're so much better." • What they lack in size.leading some analysts to predict that the automaker will soon offer one in the U.called the Demio in Japan -. • Ford Motor Co. The Versa. for example. offers the Bluetooth hands-free phone system while the Aveo has options such as heated outside mirrors and controls for the stereo system on the steering wheel. offers a Mazda2 subcompact in Europe -. the vehicles overcome in technology. Honda has not released any production volumes for 2007. has shown interest in developing a B-car for North America while Mazda Motor Corp.• The vehicles typically present safety challenges when struck by larger vehicles. 43 . perks craved by young drivers. so much safer.

CHAPTERV 44 .

rather than philosophical means for getting and ordering the data prior to their logical and manipulation.Research in common parlance refers to a search for knowledge.” 45 .RESEARCH METHODOLOGY MEANING OF RESEARCH. Research can be defined as “logical and systematized application of the fundamentals of science to the general and overall questions of a study . specific procedures and technical . research is an art of scientific investigation. and scientific techniques which provides precise tools. One can also define research as a scientific and systematic research for pertinent information on a specific topic. In fact.

2. The essence of basic research is that it addresses itself to more fundamental questions and not to the problems with immediate commercial potential. To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are known as diagnostic research studies). solutions and the possible outcomes of each alternative. It aims at expanding the frontiers of knowledge and does not directly involve pragmatic problems. it is prompted by commercial considerations. To gain familiarity with a phenomenon or to achieve new insights into it (studies with this object in view are termed as exploratory or formularize research studies). 46 .Classification of Research Research can be classified into two broad categories: Basic Research: It is sometimes called ‘fundamental’ research. Unlike basic research. situation or a group (studies with this object in view are known as descriptive research studies). ‘theoretical’ research or ‘pure’ research. 3. To portray accurately the characteristics of a particular individual . Objectives of research 1. Applied Research: It is also called ‘decisional’ research.

The methods of research utilized in descriptive research are survey methods of all kinds. Applied vs. Fundamental: Research can either be applied (or action) research or fundamentals (or basic or pure) research. where as fundamental research is mainly concerned with generalization and with the formulation of the theory.4. 2. Analytical: Descriptive research includes surveys and fact- finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs. Applied research aims at finding a solution for an immediate problem facing a society or an industrial/business organization. To test a hypothesis of a casual relationship between variables (such studies are known as hypothesis – testing research studies). Descriptive vs. Types of Research The basic types of research are as follows: 1. including comparative and correlation methods. 47 . as it exits at present.

Empirical Research relies on experience or observation alone. and strategy of investigation conceived so as to obtain answers to obtain answers to research questions and to control variance. It is generally used by philosophers and thinkers to develop new concepts or to reinterpret existing ones. structure. It is Plan that specifies the sources and types of information relevant to the research problem. often without due regard for system and theory.3 Quantitative vs. Features of Research Design 1. Conceptual vs. “Research design is the plan. Qualitative Quantitative researches is based on the measurement of quantity on amount. This framework of conducting research is known as the Research design. According to kerlinger. 48 . empirical: conceptual research is that related to some abstract ideas or theory. Qualitative research is concerned with qualitative phenomenon relating to or involving quality or kind 4. RESEARCH DESIGN A research project conducted scientifically has a specific framework of research from the problems identification to the presentation of the research report.

3. The past researchers may be suitable sources of information to develop new hypotheses. In it the focus is on the discovery of ideas .2. Study of secondary data: The quickest and most economical way to find possible hypotheses from the available literature. Exploratory Research: Exploratory research studies are also termed as formulative research studies. The main purpose of such studies is that of formulating amore precise investigation or of developing the working hypotheses from an operational point of view. It is a strategy specifying which approach will be used for gathering and analyzing the data. Types of Research Design 1. 49 .various methods for collecting information for this research are as follows: 2. It also includes the time and cost budgets since most studies are done under these two constraints.

but with the modern surge in qualitative research the case has received more attention. are designed to describe something – for ex. Survey of knowledgeable persons or experience survey: It means the survey means the survey of people who have had practical experience with the problem to be situated 4. It may be done through experimental or descriptive research design. Conclusive Research: It provides information. Descriptive research: As their name implies. age. sex or other characteristics. the degree to which product use varies with income. The marketing executive has to arrive at a suitable decision from the various alternative decisions. the characteristics of users of a given product.3. 6. Its analysis can be divided into two classes:  Longitudinal studies  Cross sectional studies 50 . Case study: This research method has long been considered “soft” or nonscientific. which helps the executive to make a rational decision. 5.

Experimentation and Ex post Facto Research design: It will refer to that research process in which one or more in unconfused fashion. 51 . Here. I had used Conclusive-Descriptive research design in my project.7.

and primary research. particularly existing databases that are reanalyzed to shed light on a different problem than the original one for which they were constituted. or data specifically gathered for the current study. conclusive research is meant to provide information that is useful in reaching conclusions or decision-making. It relies on both secondary data. Conclusive research can be sub-divided into two major categories: 52 . The purpose of conclusive research is to provide a reliable or representative picture of the population through the use of a valid research instrument. It tends to be quantitative in nature that is to say in the form of numbers that can be quantified and summarized.descriptive convenience sampling 100 Bareilly Structured Questionnaire What is conclusive research? As the term suggests.RESEARCH METHODOLOGY USED IN THIS RESEARCH Type of research Type of sampling Sample size Area of the study Data collection instrument conclusive .

53 . and 2. company bosses will be able to decide whether changing the colour of the jeans To white would be profitable. What is Causal Research? Casual Research explores the effect of one thing on another and more specifically. casual research is a way of seeing how Actions now will affect a business in the future.1. if The research is to return useful results. For instance. the Effect of one variable on another. casual research can measure the Impact of the company changing the product design to the colour white. Causal research What is Descriptive Research? This research is the most commonly used and the basic reason for carrying out Descriptive research is to identify the cause of something that is happening. Following the Research. For example. whether a company’s market share differs between geographical regions Or to discover how many competitors a company has in their marketplace. The research is used to measure what impact a specific Change will have on existing norms and allows market researchers to predict Hypothetical scenarios upon which a company can base its business plan. whoever is conducting the research must comply With strict research requirements in order to obtain the most accurate figures/results Possible. Descriptive or statistical research. if A clothing company currently sells blue denim jeans. To summarize. However. This research could be used in order to find out what age group is buying a particular Brand of cola.

Secondary data is Collected from company’s website. Wikipedia. without incurring the cost and time required to select a sample.Convenience sampling Convenience sampling is that technique where the researcher is interested in getting an Inexpensive approximation of the truth. Marketing journals etc. This non – probability method is often used during preliminary Research efforts. Areas covered were Rampur Garden Civil Lines Rajendra Nagar Subhash Nagar Green Park Mahanagar 54 . the sample is selected Because it is convenient. As the name implies. DATA COLLECTION INSTRUMENT Data used in the research is both primary and secondary data. Whereas primary data is collected with the help of a structured questionnaire and a Survey was conducted on 120 respondents.

Ashish Royal Park Ramvatika Bareilly Cantt CHAPTER VI DATA ANALYSIS AND ITS INTERPRETATION 55 .

wagon r. getz. zen estilo . tata ( indica) d. Hyundai ( santro.Q. maruti ( 800. i10 ) b. a star ) c.1 which brand and model of the small car do you have? a. Chevrolet ( spark ) Santro Getz I10 Maruti 800 Zen estilo Wagon r A star Indica 26 7 2 18 7 15 1 14 56 .

Spark 10 30% 25% 20% 15% 10% 5% 0% ar ut i8 00 sa nt ro i1 0 r ze n as ta r ge tz a in di c wa go n sp ar k Santro ( Hyundai) leads the tally with maximum 26% market share m 57 .

2 For how many years do you own this car ? 0-1years 1-3 years 3-5 years More than 5 years 17 37 30 16 40% 35% 30% 25% 20% 15% 10% 5% 0% 0-1 years 1-3 years 3-5 years >5 years 58 .Q.

3 Are you satisfied with your decision to buy this car ? Yes no 69 31 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no 59 . of customers own their car for 1-3 years. Q.Maximum no.

69% customer’s are satisfied with their decision to buy this car. Miscellaneous reasons included interiors of the car . 60 .4 Any aspect which does not satisfy you ? Fuel efficiency Cost is too high After sales service is poor Miscellaneous reasons 33 25 23 19 35% 30% 25% 20% 15% 10% 5% 0% fuel effici. misce. deficiency in functional parts etc. cost after ss. Q.

5 if you plan to buy a new car in future .Q. will that be a small one or a luxury car ? Small car Luxury car 43 57 60% 50% 40% 30% 20% 10% 0% small car luxury car 61 .

6 Do you think that more variety of small cars should be introduced in the market ? Yes no 73 27 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no Customer’s are interested in more varieties of small car’s to have better Options.57% customer’s will like to buy a luxury car in future. Q. 62 .

Q.7 Do you think that inventions like TATA NANO will be successful or not ? Yes no 64 36 70% 60% 50% 40% 30% 20% 10% 0% yes no 36% customer’s are doubtful and susceptible to the success of Tata Nano 63 .

Q.8 Do you keep a track of latest launches and reviews regarding small cars ? Yes no 43 57 60% 50% 40% 30% 20% 10% 0% yes no 64 .

Q.57% customer’s do keep a track of latest happenings in the small car market.9 Does your car provide you a requisite social status ? Yes no 62 38 70% 60% 50% 40% 30% 20% 10% 0% yes no 65 .

66 .62% customer’s say “yes” their car provides them a requisite social status. Q.10 Do you like to suggest something ? It was an open ended questions and therefore answers were varied.

CHAPTER VII FINDINGS 67 .

cost disadvantage followed by after sales services. • 57% customers do keep a track of market happenings in the small car segment. Wagon R and Indica. Consumers have purchased the car mostly in the past 1-3 years. followed by Maruti 800. • Consumers are anxious regarding more no. the answer was fuel efficiency.• Santro is the most preferred car in the market. 68 . • 57% customer’s said they would like to purchase a luxury car in future. • 62% customer’s said yes their car provides them requisite social status. • • • When asked regarding which aspect the customer’s are dissatisfied. of small cars being introduced in the market to have more options and variety. 69% customers are satisfied with their decision to purchase the current car they own while 31% are not satisfied. • 36% customer’s are susceptible regarding the success of Tata Nano and feel it will dilute the image of TATA.

CONCLUSION 69 .

• Consumer’s. • The desire among the consumer’s to have more variety in the segment is quite strong. mostly are satisfied with their current choice hence it can be concluded that overall performance of the sector is satisfactory.• The conclusion of the survey can be that Hyundai Motors are the leading small car seller in the market and by virtue of their most popular model. would like to have luxury car in future which shows their burgeoning desire towards that segment. • Consumers although satisfied. Santro are leading the Race. 70 .

RECOMMENDATIONS 71 .

72 . • Onus must be on maximizing customer satisfaction.• Cars must provide cost satisfaction and fuel efficiency. • Better and more modified versions must continually be introduced in the market • After sales services must be efficiently provided to customers.

BIBLIOGRAPHI 73 .

carindia.com www.com Auto expo magazine Indian car show (TV show) Economic Times Times of India 74 .www.carworld.

ANNEXURE 75 .

Tata (indica) D. Zen estilo. 0-1 years b. after sales service is poor 76 .2 For how many years do you own this car? a. getz.yes b.QUESTIONAIRE Q.>5 years Q. Chevrolet (spark) Q. a star) C.3 Are you satisfied with your decision to buy this car? a.4 Any aspect which does not satisfy you? A. fuel efficiency B.1 which brand and model of the small car do you have? A. maruti (800. Hyundai (santro. cost is too high C. no Q.3-5 years d. i10) B. 1-3 years c. wagon r.

D. no Q. no Q.no Q. yes b.6 Do you think that more variety of small cars should be introduced in the market? a.5 if you plan to buy a new car in future.yes b. small car b.9 Does your car provide you a requisite social status? a. luxury car Q.no Q. miscellaneous Q. yes b.8 Do you keep a track of latest launches and reviews regarding small cars? a.10 Do you like to suggest something? -------------------------------------------------------------------------------------------- PERSON DETAILS: Name Occupation Address 77 .yes b. will that be a small one or a luxury car? a.7 Do you think that inventions like TATA NANO will be successful or not? a.

of cars having Phone no. - 78 .No.

79 .

80 .

81 .

82 .