Mohd Faizan Ahmed (Minor Project)

A MINOR PROJECT REPORT
ON
A study on brand preferences amongst Indian
Customers with respect to cars
Submitted in partial fulfilment of requirement of

Bachelor of Commerce (Hons.)
B.com (H)-II (Morning)

Batch 2020-2023
Submitted to: Submitted by:
Ms. Aastha Behl Mohd Faizan Ahmed
Designation Enrollment No
Assistant Professor 03314188820
JAGANNAT INERNATIONAL MANAGEMENT SCHOOL, KALKAJ
1
CONTENTS
Particulars Page No
List of tables 3
List of figures 4
Acknowledgement 5
Student undertaking 6
Certificate 7
Executive Summary 8
Introduction 10
Objectives 18
Literature review 20
Industry profile 28
Research methodology 41
Analysis & interpretation 44
Limitations 65
Recommendations and Conclusion 67
Bibliography 69
References 71
Appendix 75
2
LIST OF TABLES
S.NO Table Title Page

NO.
1. Market share of different car companies 31
2. Age Analysis 45
3. Occupation Analysis 46
4. Income Analysis 47
5. Family ownership of Cars 48
6. Types of car preferred 49
7. Brand Preference 51
8. Types of Engine 53
9. Transmission Type 54
10. Value of Brand Image 56
11. Brand Loyalty 57

12. Miscellaneous Factors 58
3
List of Figures
S.NO Figure Title Page

NO.
1. Market distribution of cars 13
2. Maruti Suzuki(Ciaz) 33
3. Hyundai(Creta) 34
4. HondaP(Civic) 34
5. Toyota(Fortuner) 35
6. Mahindra(Scorpio) 36
7. Volkswagen(Taos) 36
8. Tata Motors(Safari) 37
9. Age Analysis 45
10. Occupation Analysis 46
11. Income Analysis 47
12. Family ownership of Cars 48

13. Types of car preferred 50
14. Brand Preference 51
15. Types of Engine 53

16. Transmission Type 55
17. Value of Brand Image 56
18. Brand Loyalty 57
19. Miscellaneous Factors 59
4
ACKNOWLEDGEMENT
Any accomplishment requires the effort of many people and this work is no
different. Racing against time and fast approaching deadlines, the fact that I was
able to complete this project on time would not have been possible without the
help and support of many people. I thank all of them whose patience and support
was very instrumental.
I also thank them for making me learn the ethics and culture of corporate world.
The kind of value addition that I have done to my existing knowledge base is
exceptional and I will cherish all these moments throughout my life.
It gives me immense pleasure in mentioning the name of my project guide Ms.

AASTHA BEHL who’s helping hand led to the completion of my project.
I would also like to thank my family and friends for providing me with monetary as
well as non-monetary support, as and when required. Their trust patience is now
coming out in form of this.
Last but not the least; I would like to thank all of them who directly or indirectly
helped me in completing this project that will go a long way in my career, the
project is really knowledgeable and worth cherishing.
5
STUDENT UNDERTAKING
I, MOHD FAIZAN AHMED, a student of commerce from JIMS, Kalkaji hereby

declare that I have completed MINOR PROJECT REPORT on “A Study on brand
preferences amongst Indian customers with respect to cars” as a part of the course
requirement.
I further declare that the information presented in this project is true

and original to the best of my knowledge.
MOHD FAIZAN AHMED
6
CERTIFICATE
This is to certify that the study conducted by Mohd Faizan Ahmed entitled: “A study
on brand preference with respect to cars” being submitted in the partial fulfilment of
B. Com (H) 2020-2023, GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, is
faithful record of the bonafide research work carried out by him under my supervision
and guidance. This minor project report is his original work and has not been
submitted to this or any other university/institution for the award of any other degree
or diploma.
7
Executive
Summary
8
EXECUTIVE SUMMARY
The automobile industry today is the most lucrative industry. Due to increase in
disposable income in both rural and urban sector and availability of easy finance
are the main drivers of high-volume car segments. Further competition is heating
up with host of new players coming in and global brands like Porsche, Bentley,
and Ferrari all set to venture in Indian market. This research will be helpful for the
existing and new entrant car manufacturing companies in India to find out the
customer expectations and their market offerings. Indian Automobile car business
is influenced by the presence of many national and multinational manufacturers.
This paper presents analysis of research in the area of Consumer Behavior of
Automobile Car Customer. Proper understanding of consumer buying behavior will
help the marketer to succeed in the market. All segments in Indian Car industry
were studied and found that buyer has different priority of behaviors in each
segment, whereas main driver for car purchase is disposable income. Value for
money, safety and driving comforts top the rank in terms of customer requirement;
whereas perceived quality by customers mainly depends on brand image. For this
research, methodology adopted was to study the research papers in the area of
Passenger Car segment, study the purchase decision process and its interaction
with behavior parameters across all the segments of car such as small & Hatch
Back segment, Sedan class segment, SUV & MUV segment and Luxury Car
segment. The objective of this study is the identification of factors influencing
customer’s preferences for particular segment of cars. This paper also attempts to
consolidate findings & suggestions to overcome present scenario of stagnancy in
sales and cultivate future demand for automobile car market.
9
IntrodUction
10
INTRODUCTION
India is a rapidly industrializing economy, with an ever-growing need for a robust

transportation network to link its various metros and rural areas. Responsible for
50% of the nation's manufacturing GDP, the Indian auto sector is backed by its
strong forward and backward linkages with many critical segments of the economy.
For long, the Indian automobile industry, buoyed by an expansion in the economy,
has been considered to be a key growth driver. The Indian auto sector is a world-
renowned force too, with major exports made to not only nations in the
subcontinent and the various developing nations, but to the developed markets of
the US and Europe. Despite a sluggish market environment, in April-March 2019,
overall automobile exports grew by 14.50%, reports SIAM.
India is today the fourth largest automotive market in the world and the players in
the manufacturing value-chain reflect the strides it has taken. When the Indian
automotive market opened up after liberalization in the early 1990s, the global
automakers set base in the country in both two and four wheelers. Slowly and
steadily as the localization needs of these OEMs (original equipment
manufacturers) grew, a strong auto component manufacturing base started to take
shape. The auto component makers had to meet the global standards, which
ultimately meant they became competitive on an international stage. The story of
the Indian auto sector is not that of large manufacturers, but what smaller players,
especially in the component segment have been able to achieve.
Today, many component makers are Tier 1 supplier to the likes of Bosch, which
means parts made in India find it place in cars like Mercedes, Audi, Mazda, Jaguar,
and Renault-Nissan. Many are also Tier II and III suppliers to companies like
Magna International, Denso, Continental, Hyundai Mobis, and ZF Lenksysteme.
This has meant the sector has been one of the early adopters of technological
11
changes happening across the world. In line with global practices, Indian auto
manufacturers, in recent times, have also made rapid strides towards embracing
the idea of green and sustainable manufacturing.
The industry produced a total 30,915,420 vehicles including passenger vehicles,

commercial vehicles, three wheelers, two wheelers and quadricycle in April-March
2019 as against 29,094,447 in April-March 2018, registering a growth of 6.26
percent over the same period last year.
The sale of Passenger Vehicles grew by 2.70 percent in April-March 2019 over the
same period last year. Within the Passenger Vehicles, the sales of Passenger
Cars, Utility Vehicle & Vans grew by 2.05 percent, 2.08 percent and 13.10 percent
respectively in April-March 2019 over the same period last year.
The overall Commercial Vehicles segment registered a growth of 17.55 percent in

April- March 2019 as compared to the same period last year. Medium & Heavy
Commercial Vehicles (M&HCVs) increased by 14.66 percent and Light
Commercial Vehicles grew by 19.46 percent in April-March 2019 over the same
period last year.
The major players of the Indian automobile market are:
1. Maruti Suzuki: Maruti Suzuki India Limited (MSIL, formerly known as Maruti
Udyog Ltd.) is a subsidiary of Suzuki Motors from Japan. Maruti Suzuki is
lovingly referred to as people’s car in India. It is the current market leader
with 49.24% market share in the Indian car market.
2. Hyundai Motor India: Hyundai Motors India is a wholly owned subsidiary of

India and is the second largest car manufacturer in India. Hyundai Motor
India currently offers 10 different car models across its product range.
(Kaulgi, 2012) Hyundai has the second largest market share in Indian car
market and accounts for 21.44% of the total market share.
12
3. Honda Cars India: Honda cars India holds India’s third largest chunk of
Indian car market and holds 6.56% of the market share.
4. Tata Motors: Tata Motors Ltd. is a part of Tata Group and is India’s largest
automobile company. It is also world’s fourth largest truck and bus
manufacturer. Tata motors also hold the four largest chunks of market share
and accounts for 6.18% of the total Indian car market.
Fig:1 Market distribution of cars
The substantial changes in lifestyle patterns of the consumers have caused

tremendous changes in market place which is a result of globalization and
integration of world economies. The measure of behavior of consumer of current
generation has become difficult to gauge as time tested marketing concepts have
failed. The preference is characterized by distinctiveness of an individual’s
expectations, for multiple options, heavy tendency of abandoning Brand loyalty
and switching towards competitor brands which provide higher value to the
consumer. The new generation consumers are difficult to classify by conventional
13
demographic factors and unless their thought process and buying behavior
preferences are fully understood, decisions on product designs, product variants,
branding and distribution channels are likely to be misled. [37] With change being
unavoidable, Indian companies must learn to recognize the reason and direction
of this change most likely to affect India in the coming future, and identify new
competencies that will enable producers to respond to these fast changes.
Consumer preference can definitely not be exactly predicted but it can be done to
an extent with the consumer research activity. Globalization has heralded along
with it competition in the passenger car segment and the businesses will have to
concentrate on analyzing the consumer preference to satisfy the consumers in the
long run. The income changes and increasing petrol prices is driving demand of
small cars in India. Small car sector offers huge potential as penetration and
consumption of small cars is very less in India compared to its Population. [38] For
promoting the product consumption and creating awareness Manufactures have
used advertising campaigns to promote higher consumption by influencing
consumer preference of passenger cars. Thus, consumer preference plays an
indispensable role in predicting market demand and consequent production by the
manufacturers.
Some of the previous studies done in various zones in India like West Haryana,
New Delhi, Jaipur and Kerala on car purchasing behavior have reported changing
trends as per changing times as also the effect of multinationals on the Indian
automobile market. Most studies have reported the advent of newer technology as
the biggest decision maker in this aspect. Whereas Television advertising is
amongst the biggest influencers other medium like word of mouth, magazines and
ratings also have their weightage.
Some research have studied factors like family needs, fuel efficiency, pricing,
safety and social status as important in automobile buying behavior of the
consumer whereas others have also focused on value for money, affordability and
brand personality along with the impact of manufacturer’s websites in this decision
14
making process . The husbands in families have been found to be major decision
makers while purchase of cars.
In today’s world, consumers do not only consider engine performance as a major
factor. They look for those differentiating parameters, through which they can make
the choice from one brand to another. As stated by financial time, India has
become fifth largest passenger vehicle market, after China, US, Japan, and
Germany. The sale of passenger vehicles too grew 9.24% to 3.04 million during
2016-17, the fastest growth rate seen since 2010-11, when they grew 28.2%.
Key Influences on buying a new car It’s a buyer’s market out in India today and the
ball is no longer in the dealerships’ court. Gone are the days of the Premier
Padmini and the Hindustan Ambassador being consumer’s only choices for a new
car. With most major international brands available in dealerships, it’s never been
a better time to buy a car in India at the moment. With such a wide array of choice,
the factors that influence the buying decision have also become widespread.
These factors are classified as following:
• Social parameters: Social parameters include key influences like lifestyle of the
buyer, number of family members, etc.
• Road infrastructure: Road infrastructure is one of the major key influencers
while purchasing a car. A buyer has to consider the quality of road network
he/she will be frequently traveling with. For example if the road network in
question is peppered with pot holes and is a mixture of gravel and tarmac or
has no tarmac at all, he/she will have to purchase an off-roader like Tata Safari
or Mahindra Scoprio for better ground clearance even if he wants to purchase
a hunkered down saloon like Honda Civic.
• Lifestyle: Lifestyle is another influencer while purchasing a car for Indian middle
class. Consumers have to consider the amount of luggage they need to carry
on a day to day basis and whether the vehicle will be used only for travelling
purposes or for recreational purposes as well.
• Family Size: As joint families are common in the Indian middle class, the family
size is often one of the most important factors while purchasing a vehicle. For
15
example if a married couple lives with their children and parents, they will have
to purchase a utility vehicle with 3 row seats instead of a small city friendly
hatchback.
• Disposable Income: Any family that earns between INR 20,000 to INR 100,000
is classified as middle class. It is not necessary that the consumer is willing to
spend all of his earnings on his vehicle. Therefore the disposable income, i.e.
the actual income available for discretionary income is the primary factor
deciding the budget for purchasing desired car.
• Fuel prices: Fuel prices are and important parameter considered by middle
class family while purchasing cars. Fuel cost is low in India as it is subsidized
by the government. In a city like Delhi, 1L of petrol costs INR 71 (€0.89). Diesel
prices on the other hand are lower than diesel and so is the running cost of a
diesel powered car. 1L of diesel in Delhi costs INR 56 (€0.71). Therefore
current as well as future speculated fuel prices are an important determinant in
the purchase decision.
• Government policies: These policies usually include tariffs such as road tax.
(Anglo Info India, no date) Currently road tax is charged only once in a cars
lifetime and depends only on the type of fuel used by the car. Therefore
government policies become an important influencer for the Indian middle
class.
• Product parameters: Looks of the car is an important factor considered by the
Indian middle class. Aesthetic appeal is extremely important for Indian middle
class buyer. Indian middle class consumers are extremely concerned about the
fuel efficiency quotient of a car. It is one of the most important factors affecting
car purchase decision in India. Durability and reliability is extremely important
for an Indian middle class household. Extreme importance is given to reliability
of a car as it is expected to tackle a wide range of weather conditions in India
as well as the quirky Indian driving conditions.
• Demographic parameters: Education is a major influence in the purchase
decision. A well-educated decision maker from a middle class family is more
likely to make a more informed decision instead of being just a mainstream
16
follower. The physical attribute of a family is another important determinant of
the product choice. A family with tall and heavy family members will have to
purchase a car with more roomy interiors even if they want a small city
hatchback.
17
Objective
18
OBJECTIVE OF THE STUDY
• To analyze the various factors that affects the brand preferences of Indian
customers.
• To highlight key influences that affect purchase decision of Indian

customers.
• To find out what changes in the purchase decision are responsible for
migration of the Indian customers from one brand to another.
• To find the brand image of the car among Indian customers.
19
Literature
Review
20
LITERATURE REVIEW
Manish Kumar Srivastava, A.K. Tiwari [1], studies the consumer behavior for A3
segment vehicles such as Honda City and SX4 in a particular region Jaipur. Data
collected from 100 respondents 50 each from Honda City and Maruti SX4.
Respondents were considered from various backgrounds like Gender,
Occupation, Income class. Also customer purchase parameters considered for
study are Price, Safety, Comfort, Power & Pickup, Mileage, Max Speed, Styling,
After Sales Service, Brand Name and Spare Parts Cost. Based on above
parameters and analysis made in this it revealed that, while purchasing A3
segment car Customer give much importance to Safty, Brand Name and seating
and driving comfort. Also word of mouth publicity and advertisements in car
magazines are more effective communication medium for promotion of Cars.
Prasanna Mohan Raj [2], studied the factors influencing customers brand
preference of the economy segment SUV’s and MUV’s. Data collection was made
through direct interaction and customer intercept survey using questionnaire.
Descriptive analysis was used to transform data into understand format and factor
analysis was used for identification of factors influencing customer preference. In
light of study findings, the preference of a given brand can be explained in terms
of six factors namely Product reliability, monetary factor, trendy appeal, frequency
of non-price promotions offered, trustworthiness and customer feeling or
association towards brand. There is need for marketers to take these factors into
consideration when crafting product innovations in the SUV segment of Automobile
market. Nikhil Monga, Bhuvender Chaudhary, Saurabh Tripathi [3], this research
attempts to answer some of the questions regarding brand personality of selected
cars in India by conducting the market research. This personality sketching will
help in knowing what a customer (or a potential customer) thinks about a given
brand of car and what are the possible factors guiding a possible purchase.
Similarly, the idea of measuring the customer satisfaction will serve the same
purpose of determining the customer perception. Thus, by measuring the
21
willingness of exciting users of a car to recommend it to others will help the car
manufacturers to chock out the entire customer Buying Behavior. The study shows
that brand perception is something which starts building up before a car is
purchased and goes on with its use and is reflected in the recommendations. The
customer makes to his acquaintances for the same car. Also it is seen that the
customer might not be using the car still he holds the perceptions about it. Brand
personality of a car is enforced by the sellers in the mindsets of the customers and
customers reacts to it by forming their perception about the car and this reflects in
the overall brand image of the car. So brand image and brand personality
complement each other and the brand perception aids the building of brand
images. As per the study findings, dealers play a very important role in building up
the brand perceptions of the cars.
Samin Rezvani, Goodarz Javadian Dehkordi, Muhammad Sabbir Rahman [4], this
paper reviews the country of origin and different variables that influence consumer
purchase intention, also highlight the relationship of variables and customer
purchase intention. Study demonstrate that people care about which country
products come from and where they are made and consider these factors when
evaluating the quality of product. Stereotypes of country and the preferences of
customers, influence the purpose intention. Political system, culture and the
economy of the country can be a cause of sensitivity to people. There are many
factors that have an impact on consumer purchase intention. Research and
methodologies have shown that even when consumers can evaluate all the
intrinsic product characteristics by expressing the product, the effect of extrinsic
cues has more influence on consumer product evaluation. Country of origin is one
of the extrinsic cues; in addition, there is no doubt that country of origin has
considerable influence on the purchase intention process.
K.Vidyavathi [5], the study throws light on various aspects that the manufactures
should concentrate on to attract the prospective buyers. The demand for the small
Automobile segment is increasing because of the growing number of nuclear
families as well as parking problems. Hence the manufactures should find out the
needs, wants, tastes and preferences of consumers in order to design the
22
products. Also fuel economy and driving comfort are the most important
parameters followed by availability of spares and their price.
Balakrishnan Menon, Jagathy Raj V.P.[6], study findings shows that due to price
difference in Gasoline and Diesel, about one third of the car owners were having
diesel vehicles. The research results showed that about one seventh of car for the
city drive for family usage, while using the second car for office and business
usage. Foreign brand cars show clear preference in the Kerala car market. Also it
was observed that in the information gathering and consumer purchase initiation
stage, TV commercials on car models and brands, search on internet website of
the manufacturer and visit to dealers / distributors were the prime sources where
customers gathers information on car models.
Ramita Verma, Shubhkamana Rathore [8], studied the luxury car segment of India.
Researches and studies have revealed that the luxury car market is growing at a
steady speed of 25% per annum with more and more numbers of luxury cars
entering Indian car market. Luxury cars are preferred by HNI (High Net worth
Individuals). HNI wants to differentiate themselves from crowd for various reasons.
Change in attitude of the customer accounts for the sudden acceleration in the
Luxury car Market in India, as the emphasis has been shifted from price
consideration and affordability to design, quality and pleasure. Study also throws
light on market drivers of luxury cars like
• Political-government taxation, business sentiments, import-export policies,
government stability.
• Demographical factors like Consumer trends, Income growth, spending
power.
• Customer requirements such as status symbol, indulgence, technological
factors.
• Socio cultural factors such as Lifestyle and preferences of people which
impact their choice of types of automobiles. Social norms that impact the
decision to own and use automobiles versus other means of transport.
23
Constant changes in customer demands lead manufactures to produce new
and improved de-signs. Automation of manufacturing technologies allows this
(Hoffhian, 1984). Recently the pro-duction life cycle has become shorter. For
example, General Motors in the USA is leading the industry in developing
groundbreaking technologies to improve the driving experience and to meet
the changing needs and life styles of modem drivers. They are making efforts
to lower the cost of the technology to a level that will make advanced cars an
attractive purchase. As the automobile market becomes more competitive, the
industry has no choice but to adopt innova-tion that brings better customer
service.
Aggarwal and McGill (2007) found that people interpreted an

upturned grille on a car not simply as a mouth but more specifically as
a smile. Windhager, et al (2008) study reported seeing emotional
expressions such as aggression and anger in cars. Furthermore, other
research has found that design elements corresponding to facial
features affect product liking (Aggarwal et al 2007; W‘indhager et a1.
2008). Indeed, Windhager et a1.'s (2008) recent study of car designs
confirmed the widespread tendency for people to see faces on
products. People decode emotional ‘facial’ expressions from product
shapes and this affects liking of the design of cars and cellular phones.
The consumers prefer the combination of an upturned (friendlv) grille
with slanted (aggressive) headlights. This explained a process level by
showing that this combination triggers a positive affective state of both
high pleasure and arousal (Landwehr, McGill & Herrmann, 2011).
Peterse, Muelle, Haan and Scholz (2008) determined that the effect
of a product's country of origin on buyer perceptions and evaluations
has been one of the most widely studied phenomena in the
international business, marketing, and consumer behaviour
literatures. Indeed, Brady and Cronin (2001) concluded that the
potential impact of the country of origin of a product is the most
researched international aspect of consumer behaviour. Bucklin,
and Silva-Risso (2008) dev-eloped a new method to assess how
changes in the intensity of mature distribution networks- specifically,
those in the U.S. automotive industry might affect consumer choice.
They captured distribution intensity by car make (e.g., Honda,
Toyota) at the disaggregated level using the exact geographic
locations of individual buyers and new car dealers. Buyers were
24
more likely to select cars whose dealer networks had shorter
distances to the closest outlet (accessibility), more dealers within a
given radius from the buyer (concentration), and locations that
skewed toward the buyer (spread).
Contracts are particularly common in the automobile market, in
which a majority of sales involve either finance or lease contracts,
making it an ideal setting to understand consumers' contract choice
behaviour. Moreover, automobile manufacturers are increasingly
competing for consumers using the terms and conditions of these
contracts (e.g., General Motors offers 0% financing to ‘keep America
rolling’). However, most market-level studies on automobile choice
(Berry, Levinsohn, & Pakes 1995, 2004; Goldberg 1995; Petrin
2002; Sudhir 2001) ignore the choice of contract and simply use the
manufacturer's suggested retail price to estimate demand. Previous
research on consumer choice of contracts in the automobile market
(Aizcorbe & Starr-McCluer 1997; Johnson 2000) has examined how
demographic factors, such as income and age, affect a consumer's
decision to lease or finance a vehicle, but it has overlooked
nonfinancial factors related to contract choice, such as the cost of
maintaining and operating the vehicle, and has also ignored the link
between vehicle and contract choice, a critically important input into
a manufacturer's promotional planning process.
A substantial body of literature shows the theoretical and empirical
appeal of incorporating product, price, advertising, and promotion-
related attributes into an individual utiliq function. Conjoint studies
incorporate product attributes into utility, and choice models based
on universal product code scanner panel data have also included
product attributes wader & Hardie 1996). Many studies have
incorporated price and promotion variables (e.g., feature, displa}) as
attributes in choice model utilities (e.g., Guadagni & Little 1983).
Advertising has also been successfully incorporated (e.g., Pedrick &
Zufryden 1991). We now consider how to conceptualize distribution
intensity as an attribute, or attributes, in utility.
Another challenge in the study of distribution intensip involves the
classification of goods (i.e., convenience, shopping, or specialty
goods). For convenience goods, in general, higher levels of
distribution intensip are assumed to always boost sales (Coughlan,
Anne, Anderson, Stern & El- Ansary, 2006). The Indian automobile
industry is one of the largest in the world and one of the fastest
25
growing automobile industries globally' The low penetration level of
cars in India along with shooting disposable income of its working
population has catapulted it as a lucrative market for global
automobile manufacturers (SIAM, 1999). The industry actually gets
its shape in two clear phases the Maruti era (1983) and the post
liberalization era (1993) ehra, 2005).The Maruti era makes the
Indian auto sector a competitive market and auto sector de-licensing
in 1993 infused it with large investment and higher capacip'. As a
result, Indian consumers are flooded with tremendous choices
available almost in every segments of auto industry and become
value consccious and informed buyers. The customer
consciousness and high degree of rivalry in the market leads the
manufacturer to analyse customer perception and bridge the gap
between customers' inherent need and their product. To retain
existing relationships as v‘ell as to develop new customers, having
an insight in customer satisfaction and dissatisfaction has become
very vital Verma & Kaur, 2001; Pearson ,1976).
Verma and Kaur (2001) emphasized that significance of 3 types of
justices necessary for customer satisfaction are procedural justice
(response time taken by company to address complaints),
distributive justice (company's perceived fairness in dealing with
customer complaints) and inter- actional justice (human behaviour
in dealing with complaints). According to Indian consumers,
technology, comfort and convenience are important considerations
for car purchase. Though in the developed world, technology has
always played an important consideration for vehicle manu-
facturers as customers have always embraced state of the art cars,
the study by Ealey and Mercer (1999) stated that different countries
accept techno!ogy at different rates. Ealey and Mercer (2000)
suggested that auto companies must build on their long term
relationships with customers.
Saxena (2000) analyzed the satisfaction level amongst
customers of premium cars Opel Astra, Ford Escort, Maruti
Esteem and Daewoo Cielo- in Indore. For measuring brand
satisfaction level amongst the four manufacturers, eight attributes
(service, spare parts availability, safety, leg space, boot space,
price, sq°1e, resale) were listed in the questionnaire. To evaluate
satisfaction with dealer service, 13 attributes were evaluated
(location, ease of appointment, facilities, proper diagnosis, labour
cost, spare cost, spares availability, promptness in service,
26
correct service, staff behaviour, warranty service, post service
follow up, reception handling). The null hypothesis (there is no
difference in satisfaction level towards dealer service between
different brands of cars) was found to be false at 5 % significant
level that is, there is significant difference between the dealer
services in respect of the 4 cars.
27
INDUSTRY
PROFILE
28
INDUSTRY PROFILE
Until a decade ago, the auto sector in India had been a relatively protected industry
limiting the entry of foreign companies with high tariffs against imports. Today, as
part of a broader move to liberalize its economy, India has opened up the sector
to Foreign Direct Investment, and since then has also progressively relaxed trade
barriers. Growth in the Indian middle-class and easy availability of credit coupled
with new launches and attractive pricing by the players will ensure its availability
and hence will facilitate the growth of this segment. Today, almost all the major
global companies are present in Indian passenger cars segment. Foreign
multinationals are entering in the Indian market with their quality and higher priced
luxury cars. German luxury car maker Porche is also interested to enter Indian car
market. Precision cars, an official importer of Porche cars in India has sold 322
cars in Ahmadabad city only. They have gained 30% share in Indian premium
Luxury car segment by now. Market Share of Maruti Suzuki, (ex market leader) is
reducing year by year. It has reduced to 45% in 2011 from 50% in 2002. Market
share of Ford Motors has shown significant growth in past few years. Consumer
behavior in car buying is undergoing a sea change. Purchase of luxury cars
remains a symbol of power, recognition, independence and status. Thus, Key
drivers for the growth of Indian auto industry are: Availability of Finance, improved
infrastructure, rising family income, favorable duty structure, poor public transport
system, low car penetration, exchange of cars, and changing lifestyle.
For decades, acquisition of an automobile was nothing less than achievement of

a dream. Almost 40 years ago, if an Indian managed to buy a Fiat or an
Ambassador car by the time of his retirement, it used to be a standing symbol of
success of his entire career! Things have totally changed now. First car arrives by
the time the student leaves his college and within a couple of years; he proudly
displays his possession, only to change it for the next model in the market.
Managing with the same old car for years is considered passé now and many are
known to change cars, as frequently as they change their shirts, to seek attention
29
and even appreciation. When market is growing so fast, more products are needed
to reach more people. Indian auto industry is truly responding to the demand. The
low-priced small car (like Nano) putting the two wheeler sales to some anxiety is a
reality today. However, crude oil prices have the potential to throttle the
industry, if alternatives are not quickly found. Study of all variables related to this
sector on a continuous basis is necessary for uninterrupted journey of this crucial
engine of economic growth. Electronics constitutes more than 30% of the car’s
cost. With changing lifestyle, evolving need, auto electronics has been changing
in form and factor over the past few years. Consumers want varied features in the
cars they drive or they wish to drive. It is important to understand needs, wants
and preferences of automotive technologies from consumers. This study also
studies choices for electronic components in passenger cars.
In many ways, hatchbacks are the most practical body type for India. Not only are
hatches more affordable (with a few exceptions), they're cheap to run and mostly
cheap to maintain. Compact cars make the most sense on our crowded streets as
well. But the sheer number of choices available means the consumer is often
stumped as to what the best choice is. We'll attempt to help you choose the best
car for your needs in this compare through an exhaustive test drive.
There's a common template to all the cars on test here. They're all within four
meters in length and they all have petrol engines equating to or less than 1200cc.
This is because the Indian government, in all its wisdom, has decreed that small
cars with small engines shall benefit from an excise reduction. Outright
performance unexpectedly, isn't what you should expect. Instead, the focus is on
drivability and everyday usability while still delivering good fuel efficiency.
A good design is half the battle won for a manufacturer. An appealing shape does
translate to footfalls into the showroom and eventually some sales.
Sedans also have it better in terms of acceleration, braking, speed and fuel economy.
Lower weight means better acceleration and stopping; with less mass to move, it's
30
easier to move it. This also helps with economy, as the engine doesn't have to
overcome as much inertia every time you plant your foot.
SUVs typically have a higher driving position, providing an improved visibility of the
road ahead of you. Being able to see ahead of the smaller car in front of you, gives
you the advantage of knowing if or when to slow down. The SUV's safety
conscious reputation provides the perfect family car without a doubt.
Typically, a multi-purpose vehicle/Multi Utility Vehicle has two or three rows of
seats which serve for 6 to 8 passengers. This is the most important advantage of
this vehicle. In addition, they have a flexible interior space which means that it can
be adjusted as per the requirement.
The Indian auto industry has currently been witnessing a steady decline in sales
for quite a while now. This includes all segments such as four-wheelers, two-
wheelers, commercial vehicles and others.
Most automotive brands in the country have been witnessing a decline in domestic
sales as a result. Maruti Suzuki, India's largest car manufacturer is among the
worst hit, recording a decline in sales of up to 17 per cent in the month of June
2019.
Market Share (April - June)

Brand 2019 2018 Diff (%)
Maruti Suzuki 51% 52.54% -1.55
Hyundai 17.75% 15.70% 2.06
Mahindra 8.34% 6.93% 1.4
Tata Motors 5.90% 6.75% -0.85
Honda 4.63% 4.88% -0.24
Toyota 4.61% 4.49% 0.12
Ford 2.56% 2.86% -0.3
Renault 2.47% 2.38% 0.09
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Volkswagen 1% 1.05% -0.05
Nissan/Datsun 0.75% 1.21% -0.46
Table 1: Market share of different car companies
For most of the people, purchasing a car is the second most important and
expensive decision, next to purchase of a house; for the automotive
manufacturers, first-time car buyers give them the opportunity to create positive
brand image which definitely could be reflected in next coming years because
consumers could make repeat car purchasing. The concept of “buying behavior”
is of prime importance in marketing and has evolved over the years. It is very
important to understand consumer buying behavior as it plays a vital role while
purchasing products. Day to day human wants are growing, expectation is
growing. Car Models are no exception to this behavior. Consumer behavior is fairly
complex as Car Purchase implies a high level of social and psychological
involvement. Consumer buying behavior is a blend of Economic, technological,
political, cultural, demographic and natural factors as well as Customer’s own
characteristics which is reflected by his attitude, motivation, perception,
personality, knowledge and lifestyle.
As the second crowded country in the world, India develops a great demand for
cars, from sedan to SUVs, small to mid size and, affordable models to even luxury
cars. There are around 50 global companies in India to serve such demands.
Consequently, India is ranked fourth in the list of largest car manufacturing nations,
with passenger cars and commercial vehicles as main products.
The following are some of the leading car companies in India:
1. Maruti Suzuki
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Founded nearly four decades ago, it was a joint venture between an Indian
company, Maruti, and Suzuki, a Japanese automobile manufacturer. Maruti Suzuki
now holds 37% share of the auto market in India. Its first car model, Maruti 800,
was considered the most successful automobile in India. One can easily detect
this auto on Indian streets even the last production unit for such car has closed for
seven years. Maruti Suzuki has developed technology in creating cars for the
Indian market with international standards. Its best-selling models include Alto,
Swift, Ertiga and Celerio.
Fig 2: Maruti Suzuki(Ciaz)
2. Hyundai
Hyundai is a famous car brand from Korea. Since it entered Indian market in
1996, Hyundai Motor India Limited has become India’s second-best carmaker,
just after Maruti Suzuki. Since the launch of its first model in 1998, Hyundai has
developed strongly and consistently improved the design, quality, and efficiency
of its products. Many elegant and affordable models in their portfolio are Eon,
Santro, Grand i10, Xcent, i20, and Verna.
33
Fig 3: Hyundai(Creta)
3. Honda
Cars India Limited is a subsidiary of Honda, a multinational automobile

manufacturer coming from Japan. It was first launched in India in 1995 and since
then, it has become a great car producer in this market. Honda provides various
products from automobiles to motorcycles, mountain bikes, engines, solar cells
and ATV. Honda is holding quite a large share in India auto market thanks to its
attractive, fuel-efficient and reasonably-priced products. However, many people
still complain about its high-price for car spare parts. The Accord, Amaze, Brio,
Civic and Jazz are Honda’s most successful car models.
Fig 4: Honda (Civic)
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4. Toyota
Japanese Auto Company Toyota started Toyota Kirloskar in India in 1997 and has
built their reputation with Altis, Corolla, Etios, Fortuner and Qualis models. Despite
holding a large share in the auto market, they do not produce diesel-powered car
models and their production line is limited compared to others opponents.
Fig 5: Toyota(Fortuner)
5. Mahindra and Mahindra
Founded in 1945 in Mumbai, Mahindra and Mahindra is an Indian leading car and
tractor manufacturer. Whether it is a tractor, an SUV or commercial vehicles,
Mahindra and Mahindra will pamper you with durable, strong and secure ones.
Scorpio and Bolero are the successful models of this auto giant.
35
Fig 6: Mahindra(Scorpio)
6. Volkswagen
Volkswagen India, started in 2007, is a subsidiary of German car giant

Volkswagen. It is now a big player in Indian auto market with Vento and Polo as
two most popular models. Though its high-performance engine and long-lasting
cars are well-received, their lack of spare parts for replacement still annoys many
buyers.
Fig 7: Volkswagen(Taos)
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7. Tata Motors
As one of the biggest car makers in Asia and the leading bus and truck
manufacturer in the nation, Tata Motors is exceptionally welcomed in Indian
markets for giving awesome features at ideal costs. Established in 1945, Tata
Motors now owns six assembly units in India and four in other nations. Besides
cars, it also produces trucks, buses, and also military vehicles. Tata’s famous
models are Tata Safari, Tata Nano, Tata Iris, Zest and Tata Sumo.
Fig 8: Tata(Safari)
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SHIFT IN PREFERENCE
Car buyers in India, they are a changing. The criteria used by new-vehicle buyers
in their shopping process have become strikingly different among the various
regions of the country, according to the J D Power Asia Pacific 2013 India
Escaped.
The study, based on the responses of 8,687 buyers and 3,271 rejecters of new
cars and new utility vehicles who purchased their vehicle between September
2012 and April 2013, examines the reasons why new-vehicle shoppers consider
but ultimately reject certain models in favor of another, was fielded from March.
During the past five years, several shifts have occurred in this class of consumers
across India specific to their shopping behavior, the ownership experience and
how the vehicle is used. As per the findings of the study, a surge of first-time new-
vehicle buyers is a regional phenomenon limited to the Eastern and Western
regions. Nearly 70 percent of buyers in the West and 57 percent of buyers in the
East buy a new vehicle for the first time. In contrast, the proportion of first-time
new-vehicle buyers has declined over time in the North and has remained nearly
unchanged.
Shifting preferences
Although attractive design and styling has increasingly become the most influential
reason for vehicle selection among buyers in North India, it has been declining in
the South, where new-vehicle buyers frequently state good fuel efficiency.
New-vehicle buyers in South India are more methodical in their purchase process
— which involves conducting extensive preliminary research, visiting dealerships,
taking test drives and negotiating — compared with buyers in the North who tend
to do less research before visiting a dealership and rely on the salesperson for
information.
38
“One of the likely drivers behind these changes is the pace of urbanization, which
is resulting in the resurgence of multi-generation families living either under one
roof or in close proximity to their relatives, especially in the North,” said Mohit
Arora, executive director, J D Power Asia Pacific. “While this is resulting in a higher
monthly household income, thereby enabling younger people to afford a vehicle,
purchase decisions are also likely to be influenced by the growing family size.”
Role of the internet
Internet usage for research during the vehicle-shopping process has increased in
the South to 42 percent in 2013 from 21 percent in 2009. In contrast, in the North,
where shoppers are highly influenced by the opinions of friends and relatives in
deciding on their vehicle purchase, Internet usage for research has declined to 13
Percent.
Arora says, “Internet penetration has been increasing in India each year as
consumers look for presumably unbiased sources of information at their own
convenience. Information on technical specifications, vehicle features or
accessories, vehicle price, vehicle brochures/ pictures, warranty information, spare
parts information are increasingly being sought on the internet as consumers
prepare.
While the number of households owning multiple cars is at least 1.6 times higher
in North India than in any other region, the average number of people riding in
vehicles is much higher in West and South India. Also, the penetration of small
cars is declining at a faster pace in North India, with consumers increasingly
preferring.
Speedy delivery is key According to Arora, “Vehicle buying in India is triggered

both by rational and emotional needs. It is one of the most visible marks of social
progress. The decision to buy a vehicle is usually finalized over a period of time.
Once the decision is made and the payment and other formalities are completed,
new-vehicle owners want to immediately show off their prized possession.
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Therefore, availability of product nearby has always been critical to vehicle
selection and purchase. Customers, especially those in cities where there are
multiple dealerships of the same brand, are selecting dealers based on faster
delivery period. The Escaped Shopper Study also highlights that customers are
ultimately rejecting models that they had initially considered owing to longer
delivery.
According to the study, while the dealer closest to the potential buyer’s home
continues to be the most influential reason for dealer selection, it has been
declining during the past five years. Immediate delivery is increasingly emerging
as a key consideration in choosing a dealer, cited by 16 percent of customers as
the most influential reason for selecting a dealer in 2013, up from 8 percent in
2009. The study finds that longer delivery time is the second-most-influential
reason for rejecting a vehicle that shoppers had initially considered purchasing. An
increase in vehicle delivery time to 12 days in 2013 from five days in 2009 has
likely driven this as a key consideration during the purchase process, as 17 percent
of shoppers in 2013 have rejected the vehicle they initially considered due to the
longer.
40
RESEARCH
METHODOLOGY
41
RESEARCH METHODOLOGY
Research in common pursuance refers to a search for knowledge in a scientific

and systematic way for pursuant information on a specified topic. Once the
objective is identified that next step is to collect the data which is relevance to the
problem identified and analyze the collected data in order to find out the hidden
reasons for the problem. There are two types of data namely
1. Primary Data
2. Secondary Data
Research Design
Research design is defined as a framework of methods and techniques chosen by

a researcher to combine various components of research in a reasonably logical
manner so that the research problem is efficiently handled. It provides insights
about “how” to conduct research using a particular methodology. Every researcher
has a list of research questions which need to be assessed – this can be done with
research design.
PRIMARY DATA
Primary data is original in nature and is collected first hand. Primary data is
information that you collect specifically for the purpose of your research project.
An advantage of primary data is that it is specifically tailored to your research
needs. A disadvantage is that it is expensive to obtain.
1. Questionnaire Method
2. Personal Interview Method
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SECONDARY DATA
Secondary data is when the investigator does not collect data originally for the
research enquiry but uses data already collected and available in published or
unpublished from, data. Use of secondary data in a research enquiry saves time,
finance and labor. However, some people doubt the accuracy of secondary data.
If reliable and suitable secondary data is available, there is no harm in using
secondary data for any research enquiry. Most research requires the collection of
primary data, and this is what students concentrate on. Unfortunately, many
dissertations do not include secondary data in their findings section although it is
perfectly acceptable to do so, providing it has been analyzed. It is always a good
idea to use data collected by someone else if it exists ± it may be on a much larger
scale and could contribute to the findings considerably.
SOURCE OF DATA COLLECTION
The methodology adopted for this project consisted of first an extensive literature
review of the facts and figures influencing car buying behavior and trends in India.
Then a questionnaire survey was designed to know the current preferences and
decision influencing buying in India. The questionnaire was designed on Google
forms and sent to likely respondents through various modes like social media. The
responses so received were analyzed and the results are discussed in this project.
The questionnaire is based on the data received from the 30 participants through
social media channels.
Primary data and Secondary data have been used for the purpose of
completing this project.
43
ANALYSIS
&
INTERPRETATION
44
ANALYSIS AND INTERPRETATION
1. AGE
TABLE 2
NUMBER OF PERCENTAGE OF
AGE
RESPONSES TOTAL
18-25 21 70%
25-35 4 13.3%
35-45 2 6.67%
45-55 1 3.3%
55-65 1 3.3%
Above 65 1 3.3%
TOTAL 30 100%
FIGURE 9
45
Majority of the respondents were aged 18-25 (75%), followed by 4 respondents
(13.3%) people aged 45-55 years. 2 respondents (6.7%) were above the age of
65 years. There was only one respondent in the age brackets 25-35, 35-45 and
55-65 each.
2. OCCUPATION
TABLE 3
OCCUPATION
RESPONSES TOTAL
Working Professional 4 13.3%
Home Maker 2 6.7%
Student 21 70%
Retired 3 10%
TOTAL 30 100%
FIGURE 10
46
The majority of respondents (70%) were students. 13.3% of the respondents were
working professionals and 10% were retired. 6.7 % of the respondents were
homemakers.
3. INCOME GROUP
TABLE 4
INCOME GROUPS
REPSONSES TOTAL
Rs. 50,000 – 1,00,000 10 33.3%
Rs. 1,00,000 – 5,00,000 11 36.7%
Rs. 5,00,000 –
6 20%
10,00,000
Above Rs. 10,00,000 3 10%
TOTAL 30 100%
FIGURE 11
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This survey was targeting the middle income group. Maximum respondents were
of the income level between 1 lac – 5 lac rupees. Only three respondents were of
the income level above 10 lac rupees per annum.
5. FAMILY OWNERSHIP OF CARS

TABLE 5
NUMBER OF CARS
RESPONSES TOTAL
0 1 3.33%
1 12 40%
2 9 30%
3 3 10%
More than 3 5 16.7%
TOTAL 30 100%
FIGURE 12
48
The highest majority of the respondents owned one car in the family. This is closely
followed by 30% of respondents who owned to cars in the family. Only five
respondents owned more than 3 cars, 3 respondents owned 3 cars while only one
respondent owned no car.
5. TYPE OF CAR PREFERRED

TABLE 6
TYPE OF CAR
RESPONSES TOTAL
Hatchback 3 10%
Sedan 15 50%
SUV 11 36.7%
MUV 1 3.3%
TOTAL 30 100%
49
FIGURE 13
15 out of the 30 respondents preferred a Sedan car. 11 respondents chose an

SUV car. 10% respondent preferred a hatchback car. Only one respondent owned
a MUV car.
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6. BRAND PREFERENCE
TABLE 7
BRANDS
RESPONSES TOTAL
Maruti Suzuki 3 10%
Hyundai 7 23.3%
Honda 10 30%
Toyota 2 6.7%
Mahindra 1 3.3%
Volkswagen 6 20%
Tata Motors 1 3.3%
TOTAL 30 100%
FIGURE 14
51
A total of 30 respondents were asked to name the car manufacturers name.
33.33% respondents owned Honda car full stop although Honda has the biggest
share, Hyundai wasn't far behind. 7 respondents owned Hyundai and accounted
for a market leader challenging 23.3% of the sample size this shows the shrinking
size and the effect of new entrants on the market share of Honda.
Volkswagen India, which is a relatively new entrant especially when compared to
indigenous companies like Tata and Mahindra and joint ventures like Maruti Suzuki
acquired a major rank of the sample population with 6 respondents owning a
Volkswagen. Volkswagen owners accounted for 30% of total sample size and have
read past companies like Toyota and Tata. Only two respondents on the Toyota
giving a small 10% share in the sample to the world's top selling automaker. One
respondent each owned Mahindra and Tata Motors Car making up for a total of
10% of the sample size. It can be observed in the data that although Honda has
the biggest market share, Hyundai is not very far behind and is ready to challenge
Honda. Together however, Honda and Hyundai account for a total of 85%.
Although Hyundai seems like the biggest threat Volkswagen which entered India
in 2007 accounted for 30% which may not seem like a lot but considering the fact
that it is more than some old companies like Toyota shows the degree and speed
of penetration of Volkswagen amongst Indian middle class. Along with this,
homegrown Giants like Tata and Mahindra also counted for 10% of the sample
population full stop as discussed above 20 statistics show the amount of new
entrants as well as old entrance that a proven to be a viable threat to Honda's
status as market leader.
52
7. TYPE OF ENGINE
TABLE 8
TYPE OF ENGINE NUMBER OF RESPONSES PERCENTAGE OF TOTAL
Petrol 12 40%
Diesel 9 30%
Either Petrol or Diesel 7 23.3%
Electric 0 0%
Hybrid 2 6.7%
TOTAL 30 100%
FIGURE 15
53
Respondents were asked about the type of fuel used by their cars. 12 respondents
said they were using petrol cars. 30 respondents were using diesel. 7 respondents
said that they were ok with either diesel or petrol cars. 6.7% respondents said that
they used hybrid engine cars. No respondent it was using electric cars.
8. TRANSMISSION
TABLE 9
NUMBER OF PRECENTAGE OF
TRANSMISSION TYPE
RESPONSES TOTAL
Automatic 16 53.3%
Manual 14 46.7%
TOTAL 30 100%
54
FIGURE 16
There was a majority of people who preferred manual cars over automatic cars for
stop 53% of the respondents chose manual cars whereas 46.7% of the
respondents chose automatic cars.
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9. VALUE OF BRAND IMAGE
TABLE 10
OPTIONS
RESPONSES TOTAL
Yes 26 86.7%
No 4 13.3%
TOTAL 30 100%
FIGURE 17
For most people the image of the brand matters when they are making a choice.
In my survey ITI 6.7% respondents said that the brand image matters to them when
56
making the choice of brand. On the other hand, 13.3% said that the brand image
does not matter.
10. BRAND LOYALTY
TABLE 11
OPTIONS
RESPONSES TOTAL
Yes 17 56.7%
No 13 43.3%
TOTAL 30 100%
FIGURE 18
57
Brand loyalty plays an important role when a customer is making a choice of which
brands car to purchase. 56.7 percent of the respondents said they owned or have
owned in the past more than one car of the same brand. This shows that for many
people loyalty towards a brand exist.
11. MISCELLANEOUS FACTORS
TABLE 12
FACTORS
RESPONSES TOTAL
Mileage 26 86.7%
Price 21 70%
Design/Interiors 20 66.7%
Comfort 26 86.7%
Ground Clearance 17 56.7%
Experience of test
10 33.3%
drive
Pick up and speed 1 3.3%
TOTAL 30
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FIGURE 19
There are many factors that a customer keep in mind when making a choice of the
brand. 26 respondents chose mileage as well as comfort as their top priority when
making a choice. Price was the second most important aspect that the respondents
chose. The interiors and design of the car also plays an important role when
choosing a particular car. 66.7% of the respondents chose design and interiors as
factor to keep in mind. Ground clearance of the car and the experience of test drive
were given much less importance as compared to the rest.
59
FINDINGS
60
FINDINGS
The Above Study Shows that Honda is the Leading Brand in small Car Segment
with the highest percentage i.e. 33% comparing with other brands. Hyundai and
Volkswagen occupy the Second and Third Position Respectively. The maximum
number of respondents were between 100000 and 500000 that is 6 36 point 7%
of the whole. Most people work owners of only one car in the family 9 people on
two cars and 5 people on more than 3 cars. 40% people show that old cars followed
by 30% people whose called diesel cards. Automatic cars were preferred over
manual cars 53.3%. For of a person that is it is 6.7 % people the value of the brand
image matter. Sedan is the most highly preferred car with 50% that is 15 people
choosing a Sedan car. 56.57% people that are the majority of people owned cars
more than one cars of the same brand which shows the loyalty towards that brand.
Amongst other miscellaneous factors mileage and comfort were given the most
importance that is 86.7 % each followed by price as the second most important
factor and the design as the third.
Rising level of income at the young age, availability of easy credit facility,
relaxations in regulations by the Indian government in terms of import tariffs and
equity regulations could be attributed as major reasons for possessing cars by the
youth.
In India, Hatchbacks are the most popular type of cars preferred. However, in our
survey, Sedan cars were the most popular choice. Fuel efficiency will varies
according to model, but sedans are often lighter and more aerodynamic than
hatchbacks. This means that they will often offer better mileage, which can pay off
on the daily commute. Sedans are more common than hatchbacks, which can
mean that used vehicle shoppers can find more sedan options whether they are in
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the market for a compact, midsize or large car. Hatchbacks are also usually only
available in more advanced trims, which mean that a vehicle shopper on a budget
may have fewer affordable options when it comes to hatchback vehicles.
An extremely small amount of respondents were using cars with a hybrid system.
Although petrol cars from the majority, diesel was not very far away. For this
distribution of consumer's between different fuel types comma manufacturers with
a small range of cars and engine options who are not able to provide the customers
with options of diesel or hybrid engine will experience difficulty in consumer
attention and will also witness their consumers migration to their competitors.
When it comes to personal mobility, Indians have started shifting towards

automatic cars. Worsening road congestion in cities as well as improvement in
technology and fuel efficiency are increasingly driving buyers to the gearless,
clutch-less convenience of automatic cars. In the SUV space, people still prefer
manual transmission, though the share of automatic is rising there too. As one
moves up the price point, the share of automatic cars goes further up. For Hyundai
Motor India and Honda Cars India, about 18-20% of the sales come from automatic
versions. For Toyota, it is even higher at 30%. Established brands like the City,
Jazz, Creta and Innova have seen sales of automatic versions in the range of 20-
40%.
Even for homegrown players Tata Motors and M, the share is 10-15% of the
models where an automatic option is available. Once perceived as expensive, the
automatic car segment has seen the price premium over manual cars coming
down to as low as Rs 40,000 with the arrival of automated manual transmission
(AMT).
Brand image is the perception of the brand in the mind of the customer. It is an
aggregate of beliefs, ideas, and impressions that a customer holds regarding
62
the brand. A brand can be perceived differently by different customers. A strong
brand image boosts the confidence of its customers and retains them.
Mileage is an important factor when buying a used car, but it is easy to overlook.
You can get swept away in best mpg cars, or other measures of efficiency.
Low or high mileage affects the value of the car at purchase and sale, as well as
likely cost of maintenance and servicing.
Cars with high mileage can save you a lot of money up front. They are
considerably cheaper than low mileage cars, and depreciation is typically lower.
This means that the money you save on the initial payment can be used for any
potential damage. Of course, repair costs can be a can of worms in the used car
market as cars are becoming less and less economical to repair. This is mostly
due to the complexity of the on board computers and technology.
It’s important for a vehicle to be comfortable. When most of us spend time sitting
in a car, it’s important to have a level of comfort. That can simply come from the
seat materials, such as leather or cloth, or even the amenities of those seats. Once
people experience those kinds of amenities, people seek them out in their next
car, because they want the same level of comfort. Especially since we spend so
much time sitting down these days, whether in the car or at work, it’s important to
have seats that provide neck and back support. To get the best price for a new
car, potential buyers will have to do their research. Car dealerships want to
establish lasting relationships with their customers. By showing up with price
comparisons, strict budget guidelines, and a precise idea of what you’re looking
for, you can effectively negotiate a reasonable price.
The car body style ultimately decides about what you can do with your car. It
enables and limits your options and may therefore be the most significant factor in
terms of utility. In India, Good ground clearance is always preferred due to
unevenness of the roads, not just speed breakers which itself is a headache, but
63
also due to potholes and untapped roads. A vehicle with good ground clearance
will resist any of the said things or as a matter of fact anything which is above the
touching level of tire to ground, touch the chassis of the vehicle which can cause
much bigger damages.
The test drive is an important component of buying a new car. It's a good idea to
check both the interior of the car and how it drives. A new car is a big investment
so you should make sure the car that you purchase is a good fit for you, both inside
and out. We’ve all driven a car that’s handling just felt a little off. Whether the
brakes are too touchy or the slightest turn of the steering wheel causes too big of
a reaction, it’s important to know if you like how the car drives before making the
commitment of purchasing or leasing it. If the vehicle just doesn’t feel like a good
fit for you during the test drive, you still have the option to look for something else.
The speed of a vehicle is determined by a large combination of factors which

include engine efficiency and performance, weight, and the programming of its
electronic parts.
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LIMITATIONS
65
LIMITATIONS OF THE STUDY
Many constraints were involved in doing this study. Some of them are as
follows:
➢ The sources from which secondary data is collected may not be accurate
so there is a scope of inaccuracy.
➢ Primary data does not help in forming any analysis or deductions unless
and until it is refined through statistical methods.
➢ The responses received may be inaccurate because of inherent bias by the
respondents.
➢ Documents may lack authenticity– parts of the document might be missing
because of age, and we might not even be to verify who actually wrote the
document, meaning we cannot check whether its biased or not.
➢ The present study relied on supervisory judgments for measures of task and
contextual performance. Although it is presumed that supervisory
judgments are good measures of performance there is always potential for
ideas in perpetual processes. Therefore, future research might address the
issue by including both supervisors and peer ratings in their studies or using
more objective performance measures if available.
66
CONCLUSION
67
RECOMMENDATIONS AND CONCLUSION
Companies should try and look for the Niche markets and gain the First Movers
advantage. Maruti-Suzuki has learnt labor related issues hard way. Other
companies too should take appropriate measures and ensure HR development.
Foreign players are way ahead in terms of technology (both product and process).
Therefore, Indian companies should build collaborations with technology leaders.
Indian companies should do massive consolidation of plants and scaling up
of the existing facilities. Every car manufactured adds 5 new jobs- a significant
engine of economic growth. This engine would move when infrastructure will be
supportive. Size in the market is no longer a guarantee of success. Only those
companies which find new ways to create value will prosper in the future.
It can be concluded that the buying behavior of cars is influenced by type and
brand image of the cars and manufacturers. So it is imperative for them to maintain
their brand images. Technically the engine type and efficiency whereas good
advertising with detailed features are the dominant factors that influence the
potential car customers. The manufacturers must keep these things in planning
the manufacturing and marketing of their cars. Impact of Brand Image It can be
concluded that the buying behavior of cars is influenced by type and brand image
of the cars and imperative for them to maintain their brand images. Technically the
engine type and efficiency whereas good advertising with detailed features are the
dominant factors that influence the potential car customers. The manufacturers
must keep these things in mind while planning the manufacturing and marketing
of their cars.
68
BIBLIOGRAPHY
69
BIBLIOGRAPHY
1. https://www.researchgate.net/publication/327070602_Consumer_Buying_
Behaviour_of_Cars_in_India_-_A_Survey
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the-wheel-the-constant-transformation-of-indias-auto-
sector/articleshow/71916541.cms
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2019-april-september-analysis-maruti-suzuki-hyundai-kia-
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costs
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indians-opting-for-an- automatic-car-
ride/articleshow/64690796.cms?from=mdr
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PHI Learning Pvt. ltd. (2009)
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74
APPENDIX
QUESTIONNAIRE
Kindly, fill the details given in the questionnaire required by the intern
for preparing his project.
Name of the respondent:
1. What is your age?
a) 18-25
b) 25-35
c) 35-45
d) 45-55
e) 55-65
f) Above 65
2. What is your occupation?

a) Working Professional
b) Home maker
c) Student
d) Retired
e) Other
3. What is your income group?

a) Rs. 50,000 - 1,00,000
b) Rs. 1,00,000 - 5,00,000
c) Rs. 5,00,000 - 10,00,000
d) Above Rs. 10,00,000
75
4. How many cars does your family own?
a) None
b) 1
c) 2
d) 3
e) More than 3
5. Which type of car do you prefer?

a) Hatchback
b) Sedan
c) SUV
d) MUV
6. What is your brand preference?

a) Maruti Suzuki
b) Hyundai
c) Honda
d) Toyota
e) Mahindra
f) Volkswagen
g) Tata Motors
7. Which type of engine do you prefer?

a) Petrol
b) Diesel
c) Either Petrol or Diesel
d) Electric
e) Hybrid
8. What is your preferred transmission type?

a) Automatic
76
b) Manual
9. Does the brand image matter to you when making a choice of

brand?
a) Yes
b) No
10. Do you own or have owned more than one car of the same
brand?
a) Yes
b) No
11. Which factors do you keep in mind while making a choice

of brand? (you can tick more than one)
a) Mileage
b) Price
c) Design/interiors
d) Comfort
e) Ground clearance
f) Experience of test drive
g) Other
77

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A MINOR PROJECT REPORT

Submitted in partial fulfilment of requirement of

B.com (H)-II (Morning)

JAGANNAT INERNATIONAL MANAGEMENT SCHOOL, KALKAJ

Analysis & interpretation 44

Recommendations and Conclusion 67

S.NO Table Title Page

5. Family ownership of Cars 48

6. Types of car preferred 49

10. Value of Brand Image 56

11. Brand Loyalty 57

S.NO Figure Title Page

11. Income Analysis 47

12. Family ownership of Cars 48

14. Brand Preference 51

15. Types of Engine 53

17. Value of Brand Image 56

18. Brand Loyalty 57

19. Miscellaneous Factors 59

It gives me immense pleasure in mentioning the name of my project guide Ms.

I, MOHD FAIZAN AHMED, a student of commerce from JIMS, Kalkaji hereby

I further declare that the information presented in this project is true

MOHD FAIZAN AHMED

India is a rapidly industrializing economy, with an ever-growing need for a robust

The industry produced a total 30,915,420 vehicles including passenger vehicles,

The overall Commercial Vehicles segment registered a growth of 17.55 percent in

2. Hyundai Motor India: Hyundai Motors India is a wholly owned subsidiary of

Fig:1 Market distribution of cars

The substantial changes in lifestyle patterns of the consumers have caused

• To highlight key influences that affect purchase decision of Indian

• To find the brand image of the car among Indian customers.

Aggarwal and McGill (2007) found that people interpreted an

For decades, acquisition of an automobile was nothing less than achievement of

Market Share (April - June)

Table 1: Market share of different car companies

The following are some of the leading car companies in India:

Fig 2: Maruti Suzuki(Ciaz)

Cars India Limited is a subsidiary of Honda, a multinational automobile

Fig 4: Honda (Civic)

5. Mahindra and Mahindra

Volkswagen India, started in 2007, is a subsidiary of German car giant

Role of the internet

Speedy delivery is key According to Arora, “Vehicle buying in India is triggered

Research in common pursuance refers to a search for knowledge in a scientific

Research design is defined as a framework of methods and techniques chosen by

SOURCE OF DATA COLLECTION

Working Professional 4 13.3%

Home Maker 2 6.7%

Rs. 50,000 – 1,00,000 10 33.3%

Rs. 1,00,000 – 5,00,000 11 36.7%

Above Rs. 10,00,000 3 10%

5. FAMILY OWNERSHIP OF CARS

More than 3 5 16.7%

5. TYPE OF CAR PREFERRED

15 out of the 30 respondents preferred a Sedan car. 11 respondents chose an

Maruti Suzuki 3 10%

Tata Motors 1 3.3%

TYPE OF ENGINE NUMBER OF RESPONSES PERCENTAGE OF TOTAL

Either Petrol or Diesel 7 23.3%

10. BRAND LOYALTY

11. MISCELLANEOUS FACTORS

Ground Clearance 17 56.7%

Pick up and speed 1 3.3%