CONTENTS

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CHAPTER NO CHAPTER NAME PAGE NO

CHAPTER I INTRODUCTION 1-9

1.1 Need for the Study 10

1.2 Scope of the Study 11

1.3 Objective of the Study 11

1.4 Research Methodology 12--13

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1.5 Limitations 14

CHAPTER II COMPANY PROFILE 15-39

CHAPTER, III DATA INTERPRITATION - 40-57

AND ANALYSIS

CHAPTER IV CONCLUSION 58
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SUGGESTIONS 59

QUESTION AIRE 60-63

BIBILIOGRAPHY 64
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WEBSITES 65
 CHAPTER I

INTRODUCTION
 INTRODUCTION

Definition:

Consumer behavior refers to the mental and emotional process and the observable behavior
of consumers during searching, purchasing and post consumption of a product or service.

Consumer behavior involves study of how people buy, what they buy, when they buy and
why they buy. It blends the elements from psychology, sociology, sociopsychology,
anthropology and economics. It also tries to assess the influence on the consumer from
groups such as family, friends, reference groups and society in general.

Buyer behavior has two aspects: the final purchase activity visible to any observer and the
detailed or shmi decision process that may involve the interplay of a number of complex
variables not.visi.ble·to anyone.

What influences consumers to purchase products or services? The consumer buying process
is a complex matter as ·niany internal and external factors have an impact on the buying
decisions of the consumer.

When purchasi11g a product there several processes, which consumers go through. These will
be discussed below.

Purchase decision

Through the evaluation process discussed above consumers will reach their final purchase
decision and they reach the final process of going through the purchase action e.g. The
process of going to the shop to buy the product, which for some consumers can be as just as
rewarding as actually purchasing the product. Purchase of the product can either be through
the store, the web, or over the phone.

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Post Purchase Behavior

Ever have doubts about the product after you purchased it? This simply is post purchase
behavior and research shows that it is a common trait amongst purchasers of products.
Manufacturers of products clearly want recent consumers to feel proud of their purchase, it is
therefore just as important for manufacturers to advertise for the sake of their recent
purchaser so consumers feel comfortable that they own a product from a strong and reputable
organization. This limits post purchase behavior. i.e. You feel reassured that you own the
latest advertised product.

Factors influencing the behavior of buyers.

Consumer behavior is affected by many uncontrollable factors. Just think, what influences
you before you buy a product or service? Your friends, your upbringing, your culture, the
media, a role model or influences from certain groups?

Culture is one factor that influences behavior. Si1ilply culture is defined as our attitudes and
beliefs. But how are these attitudes and beliefs developed? As an individual growing up, a
child is influenced by their parents, brothers, sister and other family member who may teach
them what is wrong or right. They learn about thei1' religion and culture, which helps them
develop these opinions, attitudes and beliefs (AIO) . These factors will influence their.
purchase behavior however other factors like groups of friends, or people they look up to may
influence their choices of purchasing a particuiar product or service. Reference groups are
particular groups of people some people may look up towards to that have an impact on
consumer behavior. So they can be simply a band like the Spice Girls or your immediate
family members. Opinion leaders are those people that you look up to because your respect
their views and judgments and these views may influence consumer decisions. So it maybe a
friend who works with the IT trade who may influence your decision on what computer to
buy. The economical environment also has an impact on consumer behavior; do consumers
have a secure job and a regular income to spend on goods? Marketing and advertising
obviously influence consumers in trying to evoke them to purchase a particular product or
service Peoples social status will also impact their behavior. What is their role within society?
Are they Actors') Doctors') Office worker? and mothers and fathers also? Clearly being
parents affects your buying habits depending on the age of the children, the type of job may
mean you need to purchase formal clothes, the income which is earned has an impact. The

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lifePerformence of someone who earns £250000 would clearly be different from someone
who earns £25000. Also characters have an influence on buying decision. Whether the person
is extrove1i (out going and spends on ente1iainment) or introvert (keeps to themselves and
purchases via online or mail order) again has an impact on the types of purchases made.

Maslow's Hierarchy of Needs

Abraham Maslow hierarchy of needs theory sets out to explain what motivated individuals in
life to achieve. He set out his answer in a form of a hierarchy. He suggests individuals aim to
meet basic psychological needs of hunger and thirst. When this has been met they then move
up to the next stage of the hieraTchy, safety needs, where the priority lay withjob security and
the knowing that an income will be available to them regularly. Social needs come in the next
level of the hierarchy, the need to belong or be loved is a natural human desire and people do
strive for this belonging. Esteem need is the need for status and recognition within society,
status sometimes drives people, the need to have a good job title and be recognized· or ilie
need to wear branded clothes as a symbol of status.
But how does this concept help an organization trying to market a product or service?
Well as we have established earlier within this website, marketing is about meeting needs and
providing benefits, Maslow's concept suggests that needs change as we go along· our path of
striving for self-actualization. Supermarket firms develop value brands to nieet the.
psychological needs of hunger and thirst. HmTOds develops products and services for those
who wm1t have met their esteem needs. So Maslow' s concept is useful for marketers as it can
help them understand and develop consumer needs and wants.

Behavior occurs either for the individual, or in the context of a group (e.g. friends influence
what kinds of clothes a person wears) or an organization(people on the job make decisions as
to which products the firm should use).Consumer behavior involves the use and disposal of
products as well as the study of how they are purchased. Product use is often of great interest
to the marketer. because this may influence how a product is best position how we can
encourage increased consumption. Since many environmental problems result from product
disposal (e.g., motor oil. being sent into sewage systems to save the recycling fee, or garbage
piling up ati and fills) this is also an area of interest. Consumer behavior involves services and
ideas as well as tangible products. The impact of consumer behavior on society is also of
releYance. for example. aggressi\·e marketing of high fat foods, or aggressive marketing
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of easy credit, may have serious repercussions for the national health and economy.

There are four main applications of consumer behavior:

The most obvious is for marketing strategy-i.e., for making better marketing campaigns. For
example, by understanding that consumers are more receptive to food advertising when they
are hungry, we learn to schedule snack advertisements late in the afternoon. By
understanding that new products are usually initially adopted by a few consumers and only
spread later, and then only gradually, to the rest of the population, we learn that (1)
companies that introduce new products must be well financed so that they can stay afloat
until their products become a commercial success and (2) it is imp01iant to please initial
customers, since they will in turn influence many subsequent customers' brand choices.

A second application is public policy. In the 1980s, Accutane, a nearmiracle cure for acne,
was introduced. Unfortunately, Accutane resulted in severe birth defects iftaken by pregnant
women. Although physicians were instructed to warn their female patients of this, a number
still became pregnant while taking the drug. To get consumers' attention, the Federal Drug
Administration (FDA) took the step of requiring that very graphic pictures of defo1med
babies be shown on the medicine containers.

Social marketing

involves getting ideas across to consumers rather than selling something. Mmiy Fishbein, a
marketing professor, went on sabbatical to work for the Centers for Disease Control trying to
reduce the incidence of transmission of diseases through illegal drug use. The best solution,
obviously, would be if we could get illegal drug users to stop. This, however, was deemed to
be infeasible. It was also determined that the practice of sharing needles was too ingrained in
the drug culture to be stopped. As a result, using knowledge of consumer attitudes, Dr.
Fishbein created a campaign that enconraged the cleaning of needles in bleach before sharing
them, a goal that was believed to be more realistic.

As a final benefit. studying consumer behaYior should make us better consumers. Common
sense suggests. for example. that if you buy a 64 liquid ounce bottle of laundry detergent. you
should pay less per ounce than if you bought t\\·o 32 ounce bottles. In practice. however. you
4
often pay a size premium by buying the larger quantity. In other words, in this case, knowing
this fact will sensitize you to the need to check the unit cost labels to determine if you are
Really getting a bargain. There are several units in the market that can be analyzed. Our main
thrust in this course is the consumer. However, we will also need to analyze our own firm's
strengths and weaknesses and those of competing firms. Suppose, for example, that we make
a product aimed at older consumers, a growing segment. A competing firm that targets
babies, a shrinking market, is likely to consider repositioning toward our market. To assess a
competing firm's potential threat, we need to examine its assets (e.g., technology, patents,
market knowledge, awareness of its brands) against pressures it faces from the market.
Finally, we need to assess conditions (the marketing environment). For example, although we
may have developed a product that offers great appeal for consumers, a recession may cut
demand dramatically.

Consumer Research Methods

Market research is often needed to ensure that we produce what customers really want and
not what we think they want. Primary vs. secondary research methods.
There are two main approaches to marketing. Secondary research involves using information
that others have already put together. For example, if you are thinking about starting a
·business making clothes for tall people, yi:iu don't need to question people about how tall they
are to find out how many tall people exist-that information has already been published by
the U.S. Government. Primary research, in contrast, is research that you design and conduct
yourself For example, you may need to find out whether consumers would prefer that your
soft drinks be sweater or tarter.

Research will often help us reduce risks associated with a new product, but it cannot take the
risk away entirely. It is also important to asce1tain whether the research has been complete.
For example, Coca Cola did a great deal of research prior to releasing the New Coke, and
consumers seemed to prefer the taste.
However, consumers were not prepared to have this drink replace traditional Coke.
Secondary Methods. For more information about secondary market research tools and issues.
Primary '.1ethods. SeYeral tools are available to the market researcher---e.g., mail
questionnaires. phone surYeys. observation, and focus groups. SurYeys are useful for getting a
great deal of specific information. Surveys can contain open-ended questions (e.g .. ··In which
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 city and state were you born~ ____ ) or closed-ended. where the respondent is
asked to select answers from a brieflist (e.g., "_Male_ Female.··

Open ended questions have the advantage that the respondent is not limited to the options
listed, and that the respondent is not being influenced by seeing a list of responses. However,
open-ended questions are often skipped by respondents, and coding them can bequite a
challenge. In general, for surveys to yield meaningful responses, sample sizes of over I 00 are
usually required because precision is essential. For example, if a market share of twenty
percent would result in a loss while thirty percent would be profitable, a confidence interval
of20-35% is too wide to be useful. Surveys come in several different forms. Mail surveys are
relatively inexpensive ,but response rates are typically quite low-typically from 5-20%.
Phone-surveys get somewhat higher response rates, but not many questions can be asked
because many answer options have to be repeated and few people are willing to stay on the
phone for more than five minutes. Mall intercepts are a convenient way to reach consumers,
· but respondents may be reluctant to discuss anything sensitive face-to-face with an
· · interviewer. Surveys, as any kind of research, are vulnerable to bias. The wording of a
question can influence the outcome a great deal.

For example, more people answered no to the question "Should speeches against democracy
be allowed? than answered yes to "Should speeches against democracy be forbidden?"For
face-to-face interviews, intei'viewer bias is a danger, too. Interviewer bias ·occurs when the
interviewer influences the way the respondent answers. For example·, unconsciously an
interviewer that works for the firm manufacturing the product in question may smile a little
when something good is being said about the product and frown a little when something
negative is being said.

The respondent may catch on and say something more positive than his or her real opinion.
Finally, a response bias may occur-if only part of the sample responds to a survey, the
respondents answers may not be representative of the population. Focus groups are useful
when the marketer wants to launch a new product or modify an existing one. A focus group
usually involves having some 8-12 people come together in a room to discuss their
consumption preferences and experiences.
The group is usually led by a moderator. "ho "·ill start out talking broadly about topics
related broadly to the product without mentioning the product itself For example, a focus
group aimed at sugar-free cookies might first address consumers snacking preferences, only
6
gradually moving toward the specific product of sugar-free cookies. By not mentioning the
product up front, we avoid biasing the participants into thinking only in terms of the specific
product brought out.

Thus, instead of having consumers think primarily in tenns of what might be good or bad
about the product, we can ask them to discuss more broadly the ultimate benefits they really
seek. For example, instead of having consumers merely discuss what they think about some
sugar-free cookies that we are considering releasing to the market we can have consumers
speak about their motivations for using snacks and what general kinds of benefits they seek.
Such a discussion might reveal a concern about healthfulness and a desire for wholesome
foods. Probing on the meaning of wholesomeness, consumers might indicate a desire to avoid
artificial ingredients. This would be an important concern in the marketing of sugar-free
cookies, but might not have come up if consumers were asked to comment directly on the
product where the use of a11i.ficial ingredients is, by virtue of the nature of the product,
necessary. Focus groups
. .
are .well.s.uited
. for some purposes, but poorly suited for others.
In general, focus groups are very good for getting breadth -i.e., finding out what kinds of
Issues are imp011ant for·consuniers in a given product category. Here, it is helpful that focus
groups are completely ".open-erided: The consumer mentions his or her preferences and
opinions, and the focus group moderator can ask the consumer to elaborate. In a
questionnaire, if one did not think to ask about something, chances are that few consumers
would take the time to write out an elaborate answer. Focus groups also have some
drawbacks, for exan1ple:

They represent small sample sizes. Because of the cost of running focus groups, only a few
groups can be run. Suppose you run four focus groups with ten members each. This will
result in an n of 4(10)=40, which is too small to generalize from. Therefore, focus groups
cannot give us a good idea of:
What propol1ion of the population is likely to buy the product.

What price consumers are willing to pay.

The groups are inherently social. This means that: Consumers will often say things that may
make them look good (i.e., they watch public television rather than soap operas or cook fresh
meals for their families daily) even if that is not true.

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Consumers may be reluctant to speak about embarrassing issues (e.g., weight control, birth
control).Personal interviews involve in-depth questioning of an individual about his or her
interest in or experiences with a product.

The benefit here is that we can get really into depth (when the respondent says something
interesting, we can ask him or her to elaborate), but this method of research is costly and can
be extremely vulnerable to interviewer bias. To get a person to elaborate, it may help to try a
common tool of psychologists and psychiatrists-simply repeating what the person said. He
or she will often become w1comfortable with the silence that follows and will then tend to
elaborate. This approach has the benefit that it minimizes the interference with the
respondent's own ideas and thoughts. He or she is not influenced by a new question but will,
instead, go more in depth on what he or she was saying. Personal interviews are highly
susceptible to inadvertent "signaling to the respondent.

Although an interviewer is looking to get at the truth; lie or _she may have a significant
interest in a positive consumer response. Unconsciously, then, he.- or she may inadvertently
smile a little when something positive is said and frown a little when something negative is
said. Consciously, this will often not be noticeable, and the respondent often will not
consciously be aware that he or she is being "reinforced and_ "punished for saying positive or
negative things, but at an unconscious level, the cuinulative effect of several facial
expressions are likely to be felt. Although this type of conditioning will not get a completely
negative respondent to say all positive things, it may "swing the balance a bit so that
respondents are more likely to say positive thoughts and withhold, or limit the duration of,
negative thoughts. Projective techniques are used when a consumer may feel embanassed to
admit to certain opinions, feelings, or preferences. For example, many older executives may
not be comfortable admitting to being intimidated by computers. It has been found that in
such cases, people will tend to respond more openly about "someone else."

Thus. we may ask them to explain reasons why a friend has not yet bought a computer, or to
tell a story about a person in a picture who is or is not using a product The main problem with
this method is that it is difficult to analyze responses. Projective techniques are inherently
inefficient to use. The elaborate context that has to be put into place takes time and energy
a\\·av from the main question.

8
There may also be real differences between the respondent and the third party. Saying or
thinking about something that "hits too close to home may also influence the respondent, who
may or may not be able to see through the ruse. Observation of consumers is often a powerful
tool. Looking at how consumers select products may yield insights into how they make
decisions and what they look for. For example, some American manufacturers were
concerned about low sales of their products in Japan. Observing Japanese consumers, it was
found that many of these Japanese consumers scrutinized packages looking for a name of a
major manufacturer-the product specific-brands that are common in the U.S. (e.g., Tide)
were not impressive to the Japanese, who wanted a name of a major firm like Mitsubishi or
Proctor & Gamble. Observation may help us dete1mine how much time consumers spend
comparing prices, or whether nutritional labels are being consulted. A question arises as to
whether this type of "spying inappropriately invades the privacy of consumers. Although
there may 'be cause for some concern in that the particular individuals have not consented to
be part of this research, it should be noted that there is no particular interest in what the
individual customer being watched does. The question is what consumers-either as an entire
group or as segments-do. Consumers benefit, for example, from stores that are designed
effectively to promote efficient shopping. If it is found that women are more uncomfortable
than men about others standing too close, the areas of the store heavily trafficked by women
can be designed accordingly. What is being reported here, then, are averages and tendencies
in response. The intent is not to find "juicy observations specific to one customer.

The video clip with Paco Underhill that we saw 111 class demonstrated the application· of
observation research to the retail setting .By understanding the phenomena such as the
tendency toward a right turn, the location of merchandise can be observed. It is also possible
to identify problem areas where customers may be overly vulnerable to the "but brush, or
overly close encounter with others. This method can be used to identify problems that the
customer experiences, such as difficulty finding a product, a mi1rnr, a changing room, or a
store employee for help. Online research methods . The Internet now reaches the great
majority of households in the U.S., and thus. online research provides new opportunity and
has increased in use. One potential benefit of online surveys is the use of "conditional
branching."

Jn conYentional paper and pencil surwys. one question might ask if the respondent has
shopped for a new car during the last eight months. If the respondent answers "no, he or she
\\ill be asked to skip ahead sewral questions-e.g., going straight to question 17 instead of
9
proceeding to number .If the respondent answered "yes, he or she would be instructed to go
to the next question which, along with the next several ones, would address issues related to
this shopping experience. Conditional branching allows the computer to skip directly to
theappropriatc question.

If a respondent is asked which brands he or she considered, it is also possible to customize

brand comparison questions to those listed. Suppose, for example, that the respondent
considered Ford, Toyota, and Hyundai, it would be possible to ask the subject questions
about his or her view of the relative quality of each respective pair-in this case, Ford vs.
Toyota, Ford vs. Hyundai, and Toyota vs. Hyundai. There are certain drawbacks to online
surveys. Some consumers may be more comfortable with online activities than others-and
not all households will have access. Today, however, this type of response bias is probably
not significant lygrcater than that associated \vi th other types of research methods.
A more serious problem is that it has consistently been found in online research that it is very
difficult-if not impossible-to get respondents to carefully read instructions and other
information online-there is a tendency to move quickly. This makes it difficult to perform
research that depends on the respondent's reading of a situation or product description.

1.1 NEED FOR THE STUDY:

Custome1's· ·consider various factors for purchasing of Cars in Hyunday. The factors
they consider are based on certain demographic variables such as income, age, occupation
etc. It also depends on attributes and life Performance of the customer buying behavior
becomes essential to get a competitive edge.

Customers do not buy services, they buy satisfaction. Hence marketers must be clear about
the satisfaction the customer is seeking and check out whether the customers are getting the
actual satisfaction. This study helps the marketers to take necessary steps to gain the
competitive advantage over the competitors.

The study helps to predict further behavior intentions of the customers such as intention to re-
purchase, intention to increase the usage. intention to recommend the product and Service to
others. Today the customers have wide variety of motorcycles to chose.

10
1.2 SCOPE OF THE STUDY:

The area of study is considered to be in two districts. Those are Hyderabad and Ranga Reddy
districts.
In the present study an attempt has been made to know the actual
implementation of Communication Process as management techniques in general and some
other aspects such as awareness of the workers, effectiveness of the performance appraisal
system in particular.

Human resource projections are valid on appraisals. By improving job skills,

the employees have lot of scope for development and prepare themselves for higher
responsibilities.

1.3 OBJECTIVE OF THE STUDY:

Main objective: The main objective of the study is to study the buying motives of the
customers regarding purchasing Cars in Hyunday.

SPECIFIC OBJECTIVES:

1. To gain an understanding of the theories and concepts of Buyer Behavior, to find the age
group~ educational back ground, occupation I prof~·ssion and income and income level of the
respondents.

2. To know whether the customer is interested to buy the purchasing Cars in Hyunday or not.

3. To find respondents reason for purchasing the purchasing Cars in Hyunday.

4. To know the imp011ance reason the respondents give to each factor for Purchasing Cars in
Hyunday.
5. To know the customer service satisfaction from the respondents.

6. To knmY the awareness of the brand Hyunday

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1.4 RESEARCH METHODOLOGY
SOURCES OF DAT A:
PRIMARRY METHOD:

Primary data are those, which are collected fresh and for the first time and this happen
to be original in character. In this study primary data was collected by interview schedule
method.

SECONDARY METHOD:
Secondary data are those, which are collected from existing data. Secondary data for
this study include appropriate material from newspaper, Magazines, Broachers, Company
Reports, Standard Text Books, and information from Internet has also been acquired
wherever necessary.

DA TA COLLECTION INSTRUMENTS:
Ti1e instrument used for this study is an interview schedule. Questions related to
objectives of the study from the major portion of the interview schedule. It mainly consists
of multiple-choice questions so that the respondents can mark one or more of the several
choice of answers. Secondary data has been gathered from many published sources such as
Newspapers, Journals, Magazines, Company Reports, standard textbooks and information
from Internet has also been acquired whei·ever necessary.

FIELD WORK:
The project involved a fieldwork of around 1 month 15 days where in the survey
was carried out of around

The survey was conducted in different of Hyderabad and secunderabad such as Kati,
bowenpally, Ameerpet, L.B Nagar, hyath nagar.
METHODOLOGICAL ASSUMPTIONS:
a) The primary data has been collected by an interview schedule.
b) The sample for the study was selected on a convenience basis
c) All primary data collected is true and reflects the actual actions of the
Respondents.
d) The data collected has been coded, tabulated and analyzed into logical
Statement using simple statistical methods. pie chans. etc.
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DESCRIPTION OF THE RESEARCH DESIGN:

A research design is a logical and systematic plan prepared for directing a research
study it specifies the methodology and technique to be adopted for achieving the objectives.
It constitutes the blueprint for the collection, measurement and analysis of data.

The main aim of the study is to evaluate the brand image of Hyunday. The study is
descriptive in nature. Surveys are best-suited method for descriptive research. So survey
method is used for the study.

The preparation of a research plan for a study aids in establishing direction to the study and
knowing exactly what has to be done and how and when it has to be done at every stage.

A research plan describes the boundaries of research activities and enables the research to
channel his energies in the right work: With clear research objectives, in view the research
can proceed systematically towards his.achievements.
SAMPLING PROCEDURES:
Sampling is a systematic. approach for selecting a few elements from an entire
collection of units (population) in .order. to make some INTERPRETATION about the total
population it is a small specimen or a segment of the whole populatio~ representing its
general qualities as for as possible. The study was undertaken by convenience sampling.

SAMPLE SIZE:
The study is conducted on a sample of 100 respondents.
SAMPLING FRAME:
The population for the study consists of Hyunday in the cities of Hyderabad and
secunderabad.

RESEARCH INSTRUMENTS:
An interview schedule was used to conduct the study.

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1.5 LIMITATIONS:

1. The Time Period Of Project Is 45 Days.

2. Though The Customers Wanted To Give Information They could not Give As It
Wastes Their Business Time.
3. The Accuracy Of The Answers Depends Upon The Mode Of Interest Of
Respondents.
4. Though the customers wanted to give infomrntion they could not, as they felt it takes
away their business time.
5. The accuracy of the answers depends upon the mode of interest of respondents.
6. The opinions of the sample may or may not depict the exact opinions of the total
population.

14
 CHAPTER II

COMPANY PROFILE
.,
'

COMPANY PROFILE

Automobile industry in India

The automobile industry in India is the ninth largest in the world with an mmual production
of over 4.2 million units in 2014 In 2012, India emerged as Asia's fourth largest exporter of
automobiles. behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki
and Mahindra and Mahindra, expanded their domestic and international operations. India's
robust economic growth led to the further expansion of its domestic automobile market which
attracted significarit ·India-specific investment by multinational automobile manufacturers. In
February 2009, monthly sales of passenger cars in India exceeded 100,000 units. bryonic
automotive industry emerged in India in the 1940s. Following the independence, in 1947, the
Government of India and the private .sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj
which hampered the Indian private sector. After 1970, the automotive industry staiied to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and
multi-national car companies launched operations. Since then, automotive component and
automobile manufacturing growth has accelerated to meet domestic and exp01i demands.

15
HISTORY Of THE FOUR WHEELERS:

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal -combustion engine (or, less often by an electric engine). The automobile was the
reply to the 19th -century reams of self-propelling the horse-drawn bikeriage. Similarly, the
invention of the motorcycle created the self -propelling bicycle. The first commercial design
was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a
horizontal single-cylinder gasoline engine mounted between two steer able front wheels and
connected by a drive chain to the rear wheel. The 1900s saw the conversion of many bicycles
or pedal cycles by adding small, centrally mounted spark ignition engine engines. There was
then felt the need for reliable constructions. This led to road trial tests and competition
between manufacturers. Tourist Trophy (TT) races were held on the Isle of main in 1907 as
reliability or endurance races. Such were the proving ground for many new ideas from early
two-stroke-cycle designs to supercharged multivalent engmes mounted on aerodynamic,
bikebon fiber reinforced bodywork.

INVENTION OF FOUR WHEELERS:

The invention of two wheelers is a much-debated issue. "Who invented the first
motorcycle?" May seem like a simple question, "safety", bicycle, i.e., bicycle with front and
rear wheels of the same 'size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles in turn described from high-wheel bicycles. The high -wheelers descended from an
early type of pushbike, without pedals, propelled by the rider's feet pushing against the
ground. These appeared around 1800, used iron banded wagon wheels, and were called
"bone-crushers", both for their jarring ride, and their tendency to toss their riders. Gottiieb
Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front
and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It
was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked
wagon-type and it definitely had a "bone-crusher" chassis!

16
FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-wheeled
design since it was complex enough to get the machines running with out having to worry
about them falling over. The next notable two-wheeler though was the Hildebrand & Wolf
Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built and
engine that was to make the mass production and common use of motorcycle possible. The
first motorcycle with electric start and a fully modem electrical system; the Hence special
from the Indian Motorcycle Company astounded the industry in 1931. Before World War l,
IMC was the largest motorcycle manufacturer in the world producing over 20000 cars per
year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after I 910, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World War
1, all branches of the armed forces in Europe used motorcycles principally for dispatching.
After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles lasted
into the late 201h century; weight the vehicle being used for high-speed touring and sp011
competitions. The more sophisticated of a 125cc model. Since then, an increasing number of
powerful cars have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the World.
It stands next only to Japan and China in terms of the number of V produced and domestic
sales respectively. This destination was achieved due to variety of reason like restrictive
policy followed by the government of India towards the passenger bike industry, rising
demand for personal transport, inefficiency in the public transportation system etc. The
Indian two-wheelers industry made a small beginning in the early 50s when Automobile
products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.
The two -wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield - were caught unaware by the
onslaught of the 1OOcc cars of the four Indo- Japanese joint ventures. With the availability of
fuel-efficiency low pO\\·er cars, demand swelled, resulting in Hyunday -then the only
producer of four stroke cars (1 OOcc category). gaining a top slot.

17
 The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and
Hyunday brought in the first two-stroke and four-stroke engine motorcycles respectively.
These two players initially started with assembly of CKD Kits, and later on progressed to
indigenous manufacturing.

The industry had a smooth ride in the 50s, 60s and 70s when government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles
in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hyunday , all the major producers suffered from recession in FY93 and FY94.
Hyunday showed a marginal decline in 1992.

The _reason for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant like increased production in 1992, due
to uew entrants coupled with recession in the industry resulted in companies either reporting
losses or a fall iri profits.

CONCLUSION:
)
The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choice, players will have compete on various fronts viz. pricing,
technology product design, productivity after sale service, marketing and distribution. Jn the
short term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.

As incomes grow and people grow and people feel the need to own a private means of
transp01i, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming
future.

18
The Asian continent is that largest user of the two-wheelers in the world. This is due to poor
road infrastructure and low per capita income, restrictive policy on bike industry. This is due
to oligopoly between top five players in the segment, compared to thirsty manufacturers in
the bike industry.

Hyunday motors LTd., is one of the leading companies in the two-wheeler industry.
At present it is the market leader in the motorcycle segment with around 4 7% the market
share during FY 2000 -01. During the year, company posted a 41.15% yoy rise in turnover
to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in Motorcycle sales
volumes. The company has emerged as one of the most successful players, much ahead of its
competitions an account of its superior and reliable product quality complemented with
excellent marketing techniques. The company has been consistently addressing the growing
demand for motorcycles and has been cumulative customer base of over 4 million customers,
which is expected to reach 5min mark with rural and semi-urban segment being the new class
of consumers.

Automobile Industry Today

On the canvas of the Indian economy, automotive industry occupies a prominent place. Due
to its deep fmward and backward linkages with several key segments of the economy,
automotive industry has a strong multiplie1" effect and is capable of being the driver of
economic growth. A sound transpm:tation system plays a pivotal role in the country's rapid
economic and industrial developnient. The well-developed Indian automotive industry ably
fulfils this catalytic role by producing a wide variety of vehicles: passenger cars, light,
medium and heavy commercial vehicles, multi-utility vehicles such as jeeps, scooters,
motorcycles, mopeds, three wheelers, tractors etc.

Automotive Industry comprises of automobile and auto component sectors and is one of the
key drivers of the national economy as it provides large-scale employment, having a strong
multiplier effect. Being one of the largest industries in India, this industry has been
witnessing impressive growth during the last two decades. It has been able to restructure
itself, absorb newer technology, align itself to the global developments and realize its
potential. This has significantly increased automotive industry's contribution to overall
industrial growth in the country.

Growth Drivers of Indian Automobile Market

1. Rising industrial and agricultural output

2. Rising per capita income

19
 3. Favorable demographic distribution with rising working population and middle class
Urbanization

4. Increasing disposable incomes in rural agri-sector

5. Availability of a variety of vehicle models n1eeting diverse needs and preferences

6. Greater affordability of vehicles

7. Easy finance schemes

8. Favorable government policies

9. Robust production

India's Position in World's Production

• Well-developed, globally competitive auto ancillary industry

• Established automobile testing and R&D centres

• Among one of the lowest cost producers of steel in the world

• World's second largest manufacturer of two wheeler

• Fifth largest manufacturer of commercial vehicles

• Largest manufacturers of tractors in the world

• Fourth largest passenger car market in Asia

• India is the second largest two-wheeler market in the world

• 11th largest passenger car market in the world

• Expected to be the seventh largest auto industry by 2016

Automobile Industry

One of the major industrial sectors 111 India is the automobile sector. Subsequent to the
liberalization, the automobile sector has been aptly described as the sunrise sector of the
Indian economy as this sector has witnessed tremendous growth.

Automobile Industry \Vas delicensed in July 1991 with the announcement of the New
Industrial Policy. The passenger car industry was, however, delicensed in 1993. No industrial
licence is required for setting up of any unit for manufacture of automobiles except
in some special cases. The norms for foreign Investment and import of technology have also
been progressively liberalized over the years for manufacture of vehicles including passenger
20
cars m order to make this sector globally competitive. At present 100% Foreign Direct
Investment (FD!) is permissible under automatic route in this sector including passenger car
segment. The import of technology/technological up gradation on the royalty payment of 5%
without any duration limit and lump sum payment of USD 2 million is also allowed under
automatic route in this sector. With the gradual liberalization of the automobile sector since
1991, the number of manufacturing facilities in India has grown progressively.

The cumulative production data for April-January 2010 shows production growth of 23.07
percent over same period last year.

Domestic Sales

Passenger Vehicles segment during April-January 2010 grew at 25.21 percent over same
period last year. Passengei· Cars grew by 24.75 percent, Utility Vehicles grew by 21.95
percent and Multi Purpose Vehicles grew by 37 .05 percent in this period.

The overall Commercial Vehicles segment registered positive growth at 30.39 percent during
April-January 2010 as compared to the same period last year. Medium & Heavy Commercial
Vehicles (M&HCVs) registered growth at 20.58 percent, Light Commercial Vehicles grew at
39.66 percent.

TIU"ee Wheelers sales recorded a growth rate of 25.77 percent in April-January 2010. While
Passenger Carriers grew by 32.54 percent during April-.Tanuaiy 2010, Goods Carriers grew at
4.20 percent.

Two Wheelers registered a growth of 23.74 percent during April-January 2010. Mopeds,
Scooters and Motorcycles grew by 31.73 percent, 20.56 percent and 24.32 percent
respectively.

Exports

During April-January 2010,overall automobile expo11s registered a growth rate of 13.24

percent.

Passenger Vehicles segment, Three Wheelers and Two Wheelers segments grew by 33.92
percent, 4.60 percent and 8.84 percent respectively in this period. Commercial Vehicles
recorded growth of(-) 7.52 percent.

Auto Policy

Vision

21
 l.''

To establish a globally competitive Automotive Industry ll1 India and to double its
contribution to the economy by 2010.

Objectives

This policy aims to promote integrated, phased, enduring and self-sustained growth of the
Indian automotive industry. The objectives are to:-

(i) Exalt the sector as a lever of industrial growth and employment and to achieve a high
degree of value addition in the country;

(ii) Promote a globally competitive automotive industry and emerge as a global source for
auto components;

(iii) Establish an international hub for manufacturing small, affordable passenger cars and a
key center for manufacturing Tractors and Two-wheelers in the world;

(iv) Ensure a balanced transition to open trade at a minimal risk to the Indian economy and
local industry;

(v) Conduce incessant modernization of the industry and facilitate indigenous design,
research and development;

(vi) Steer India's software industry into automotive technology;

(vii) Assist development of vehicles propelled by alternate energy sources;

(viii) Development of domestic ·safety and environmental standards at par with international
standards.

Automotive Mission Plan 2016

To accelerate and sustain growth m the automotive sector and to steer,co-ordinate and
synergise the eff011s of all stakeholders, Automotive Mission Plan (AMP) 2006-2016 has
been prepared in order to make India a global automotive hub.

The Automotive Mission Plan (AMP) 2006-2016,aims at doubling the contribution of

automotive sector in GDP by taking the turnover to USD 145 billion and providing additional
employment to 25 million people by 2016 with special emphasis on export of small cars.
MUV s, two and three wheelers and auto components.

22
Foreign Direct Investment

Automatic approval for foreign equity investment upto 100 per cent of manufacture of
automobiles and component is permitted.

The automobile industry is delicensed.

Import of components is freely allowed.

Major Automotive Players in India

Companies Segments

BMW India !cars and MUVs

'Daimler Chrysler India jCars

'Fiat India !Cars

!Ford India !Cars and MUVs

iGeneral Motors India

;-~~-~-~-" ........... ..
;Hindustan Motors !Cars, MUV s and LCV s

JTwo wheelers, cars and MUVs

'Hyundai Motors lcars and MUVs

'Mahindra & Mahindra !Three wheelers, cars, MUVs, LCVs

'Marnti Suzuki :Cars, MUVs, MPVs

Skoda Auto India 'Cars

Tata Motors Cars, MUVs, LCVs, M&HCVs, buses

Toyota Kirloskar Cars, MUVs

Volkswagen India Cars

MUVs:Multi utility utility vehicles: MPVs: Multi purpose vehicles;LCV: Light commercial
vehicles; M&HCVs: Medium and heavy commercial vehicles

23
Top 10 small car in India

1) Maruti Suzuki Swift

The Swift's launch has been Maruti's trump card, and since its launch in the country it has
totally changed the scenario of the Nation's car market for some time to come. It is an
attractive upgrade for small car owners and the clever pricing makes it fantastic value for
money. It is highly desirable, fun to drive, and very cool. The 1.3L engine generates 87 bhp
in the petrol version and 75 bhp in the diesel version with estimated fuel economy as 11/13
km/l (city/highway). The cabin is well designed and controls are well laid out which gives the
inte1ior a classy look.Swift comes with a 5-speed manual transmission with cable-shift
mechanism.

The Maruti Suzuki Swift LXL VXi and LDi models range from Rs.4,17,000 - 4,78,000
approximately, ex. showroom Mumbai, while the higher end models can go upto almost Rs.6
lakh.

24
2) Chevrolet Aveo U-VA

The Chevrolet Aveo U-VA is the all-new hatchback that offers excellent comfort and great
fuel economy. The cabin provides quite comfort and offers adequate space for passengers and
cargo. Jewel type headlamps with full-chrome bezels and a huge horizontal grille are
designed to grab attention. This small car comes in three variants in India - 1.2, 1.2 LS, and
1.2 LT with an option pack. All variants are powered by a 1.2-liter petrol engine that delivers
75 bhp. A 5-speed manual transmission is standard across all variants. Spacious interiors and
comfortable seating with easy-to-access controls makes it a user friendly car.

The 1.2, 1.2 LS range from approximately Rs.4,24,000- 4,68,000 ex. showroom Mumbai.
while the l .2LT and 1.2 LT Option pack go up to Rs.5.5 lakh.

25
3) Hyundai ii 0

Compact cars being India's favourite, Hyundai has chosen the right place to launch.it's. i I 0 .
model. The wheels pushed out to the comers to maximize interior space. i I 0 is available in
two major choices: iRDE and Kappa. This wide and smart small car steals the hearts of many. ·
car enthusiasts with its eye-catching design. The 5-speed manual trm1Smission is standard
with a choice of two engines: I.IL iRDE 14 and l.2L I4. ilO. The car gives an impressive fuel
economy of 12/15 km/L (city/highway). It offers a good number of conveniencefeatures,
upscale interior, and superior technology that no other hatchbacks can offer at an affordabie
price. It also offers an optional anti-lock bralcing system for increased safety.The price sta1ts
at Rs 3,41,000 (ex-showroom Mumbai).

26
4) Tata Indica Vista

Tata entered the car market in 1998 with the launch of the Indica. Earlier this model had
some flaws and was notorious for breaking down, until Tata launched an improved version in
the form of Indica V2 and the Xcta. Now it comes with an even newer face the Indica Vista.
lndica Vista is a more powerful small car from Tata lndica segment with enhanced interiors,
improved quality, and better performance is built on a completely new platfmm. This new
model is available in 3 variant in India: Aqua, Aura, Terra, offering a choice of 3 engines :
1.4L TD! (Diesel), l.2L Satire (Petrol) and l.3L Quadrajet (Diesel). Versatile and roomy
interiors with contemporary styling features like two-tone dash board, two DIN stereo system
and the breakthrough central Instrument cluster assures utmost comfort.

The prices for the different variants range from Rs 3,53,000- Rs.4,99,000 (ex-showroom
Mumbai).

5) Maruti Suzuki A-star

The global compact car A-star is produced exclusively in India. It's available in 3 variants -
LXi, VXi, and ZXi. A low wide grille, large hood, and eye-shaped headlamps add elegance to
the car. A spacious cabin with an aero-dash and well integrated audio system are highlights of
this global car. The sporty hatchback has a combination of current and futuristic design to
leave viewers spellbound.

Ex-Shmvroom Mumbai Price starts from Rs. 3,48,000 for the LXi to Rs.4,14,000 for the Zxi
model.

27
6) Hyundai Getz Prime

The new premium hatchback, Getz Prime, is the inimitable fusion of sophistication, high-
performance, appealing style, and incredible comfort. This car is labelled as India's first true
world car that meets global standards in terms of performance and comfort. The Prime comes
with a 5-speed manual transmission and an estimated fuel efficiency of 12/J 5 km/!
(city/highway), It is one of the most spacious cars in its segment. A tilt steering ensures easy
maneuvenng,
The prices stmi at Rs 3,80,000 (ex-showroom Mumbai).

7) Fiat Patio Stile

The Fiat Palio Stile is a blend of elegance, practicality, comfo1t and safety. This car offers a
choice of 7 Yariants in India with 3 engine choices. A refined 5-speed manual transmission is
standard. All variants come with redesigned headlamps. bumper. and tail lamps besides a
double-fol<lable rear seat and a rear parcel shelf. The interiors arc well crafted with a sporty
28
instrumentation cluster. comfortable seating. and ample storage area. Prices range
approximately from Rs.3,35,000- Rs.4,70,000 (ex.showroom Mumbai 8)Mar11tiS11zukiZen

Estilo
The new Zen Estilo hit the roads in India by replacing the decade old Maruti Suzuki Zen with
an upscale roomy interior and a powerful engine. The fusion of style and urban chic imbibes
an imposing feel with a luxurious fascia. This trendy and smart car is built on a Monoform
Aerodynamic design that allows it to cut through air current. Available variants include the
LX, LXi, and VXi. An ergonomic interior is coupled with a highly proficient cooling system,
front and rear seat adjustable head restraints, and a front seat back pocket for added comfo11.
Prices stai1 aproximatelyRs3,02,000 (Ex-showroom Mumbai).

9) Chevrolet Spark

The Chevrolet Spark is a customized hatchback of the earlier Matiz from GM. The first
striking feature in the Spark is its uncomentional interior layout \\ith a gracefully designed.
clear, and easy-to-read instrument panel· placed in the center of the dashboard. Flexible
seating options with spacious head and leg room make the driw comfortable. It has four
29
petrol variants in India: 1.0, !.OPS, 1.0LS, and l.OLT. This hatchback is powered by a l.OL
S-Tec 1-4 engine that generates 63 bhp. A 5-speed manual transmission is standard across all
variants. Its striking design, agility, and host of features distinguish the Spark from its rivals.
Due to its compact size, it is easy to handle and best suited for city driving. The starting price
tag is from Rs.3,25,000 (ex-showroom Mumbai).

10) Hyundai Santro Xing

Hyundai Santro c_an be termed among the most popular cars in the country with its appealing
look, superior handling,. and- well-appointed interiors. It is built with an eRLX 'active
intelligence' technology engine that delivers impressive power and performance. The Santro
Xing is available in nine variants. Santro Xing comes with a 5-speed manual or a 4-speed
automatic transmission. A three-spoke power steering wheel with central locking and front
power windows was the selling point when Santro was first launched.

The starting price tag is Rs. 2,56,000 and it can go upto Rs.3,97,000 (ex-showroom
Mumbai).

Small Car Market in India

The small car market in India is growing like never before. 70 per cent of the cars that
are produced or come into India every year are small and compact. Indian automotive majors
like Tata Motors and Maruti Udyog are leaders in this segment and have been posing a strong
competition to other car makers. In te1ms of design, novelty, value for money, and
technology, the small car market in India has improved a lot. The current year has been very
significant in India's automotive history due the high sales in the first few months, thanks to
this year's new compact car launches.

The demand for compact cars in the country has been so great that car makers are not just
coming out with new models but also giving their existing cars a facelift. This has been
30
fm1her increasing sales. Volkswagen, Ford, Chevrolet and Maruti are all in the game and
have been trying hard to win over compact car buyers in India with their novel products. JD
power statistics show a steady growth in the number of these little car buyers. It was 24 per
cent last year and has increased to 32 per cent this year. Experts believe that the A2 car
segment is set to expand even more.

The most significant change is the movement of the two-wheeler

buyers towards compact cars. First-time buyers in India opt for the Rs 3 lakh-plus category
instead of sub-compact cars. Car makers have invested a lot to please these Indian buyers.
Great cars at low prices. Who wouldn't prefer them to the cars and scooters? Surprisingly,
even auto majors like Chevrolet and Ford have realized the need of having a prominent
presence in the small car market and have come up with new cars that possess features and
pricing right enough to suit the Indian crowd.

The base model of the Chevrolet Beat can be availed at Rs 3.34 lakh while the Figo can be
bought for Rs 3.49 Lakh. Volkswagen sells the Polo at Rs 4.42 Lakh. Not to mention, the
Indian auto market leader has enough and more cars jn its· po11folio. Despite this fact, Maruti
will be bringing in more cars. The Toyota Etios too has beeri scheduled for some time this
year. So, we now know that the market for the small automobile in India is getting flooded
with too many launches, but luckily there are buyers.

Projections say that the Indian roads may ·be home to around 24 small
automobiles this year. The sales figures of these cars are showing steep climbs. Talk of fuel
economy or maintenance of cars. The small cars belonging to the A2 segment emerge as
winners. A majority of Indians have begun realizing this and car makers too have been
working towards pleasing such Indian buyers. The bigger luxury cars do not really the humpy
bumpy roads in India. It is the small car market that has been showing tremendous growth
and so shall it be in future. The small car market in India is witnessing the maximum activity
and is all set for more exciting times ahead, with more players from India and abroad joining
the race.

India's Car Sales Report March 2010: A Review

Automobile sales in India continued its robust momentum and touched record highs in March
2010. Most industry players recorded healthy growth for the month and their volumes
showed no signs of fizzling out whatsoever. This boom in auto sales is accredited to the
positive consumer sentiment. which stayed upright even in the wake of recent car price hikes.
31
Preponement of buying plans from the dealers in anticipation of the much talked about Excise
duty roll back in the Union Budget is also thought be partially responsible for this record
growth in car sales volume.

Maruti Suzuki recorded an 11 % rise in total car sales, as compared to the responding period
last year, at 95,123 vehicles in March 2010. Exports skyrocketed 32% to arecord 15,593,
while sales in the domestic auto market rose by an impressive 8% to 79,530 vehicles.

Tata Motors, at its 75,151 units (inclusive of the export figures), registered a sales grmvth of
38% in March 2010 as compared to 54,452 vehicles in the corresponding period last year.
The company's domestic sales are up by 35% at 71,046 units as compared to the same month
last year.

Comirig to Hyundai Motor India, the company reported its highest-ever auto sales since
1998 (when it sold 24, 754 units of Santro, Hyundai Motor's flagship small car) in the
domestic automobile market at 31,501 units. This records a jump by 27.26% over the san1e
period last year. From total sales' point of view, the company recorded a growth of 19.23% to
55,035 units as against 46,159 units in the corresponding period last month.

Total car sales volumes are equally emphatic for General Motors India. The company posted
sales growth of 127% in March 2010, as against the same month a year ago. l l,330vehic.Ies
were sold in March 2010 against 5,001 vehicles in March 2009.

Fiat India Automobiles reported a sales growth of 33% for the month of March 2010 over
the same month last year. During this period, the company sold 2,361 vehicles (including
exports) as compared to L780 vehicles in March 2009.

Mahindra & Mahindra reported healthy sales figures at 41,814 units led by growth in the
tractor segment at 52.6% year-over-year (yoy). This was further supplemented by the 40.2%
yoy growth that the automotive division registered during the period. Growth of the
automotive segment was led by the utility vehicles (UV), light commercial vehicles (LCV)
and three-wheeler segments at 24.2%, 89.8% and l 02.3% yoy, respectively.

For Ford India, the last financial year came to an end in an equally good way. The company
recorded a threefold increase in sales compared to the corresponding period last year, and the
figures rose at 9,478 units, a growth by 203%, thanks to increased sales of Ford Figo.

32
Company Profile - About Hvundai Motor India Limited

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 6 models of passenger cars across
segments. The A2 segment includes the Santro, i I 0 and the i20, the A3 segment includes the
Accent and the Verna, the AS segment includes the Sonata Transform.

HMIL's fully integrated state-of~the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising
demand, HMIL commissioned its second plant in February 2008, which produces an
additional 300,000 units per annum, raising HMIL's total production capacity to 600,000
units per annum.

In continuation with its commitment to providing Indian customers with cutting-edge global
technology, HMIL has set up a modem multi-million dollar research and development
facility in the cyber city of Hyderabad. It aims to become a centre of excellence for
automobile engineering and ensure quick turnaround time to changing consumer needs.

As HMC's global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports cars
to more than 110 countries across EU, Africa, Middle East, Latin america, Asia and
Australia. I.t has been the number one exporter of passenger car of the country for the sixth
year 111 a row.

To support its growth and expansion plans, HMIL currently has a 295 strong dealer network
and 591 strong service points across India, which will see further expansion in 2010.

Hyundai Motor India Limited is a wholly owned subsidiary of the Hyundai Motor
Company in India. It is the 2nd largest automobile manufacturer in India after Maruti Suzuki

33
Hyundai Motor India Limited

<E/) HYUnDRI
Type Subsidiary

Industry Automotive

Founded 6May1996

Headquarters Chennai, India

Key people Mr. H.W. Park, MD

Products Automobiles

Parent Hyundai Motor Company

Website www.hyundai.co.in

History

Hyundai Motor India Limited was formed in 6 May 1996 by the Hyundai Motor Company
of South Korea. When Hyundai Motor Company entered the Indian Automobile Market in
1996 the Hyundai brand was almost unknown throughout India. During the entry of Hyundai
in I 996, there were only five major automobile manufacturers in India, i.e. MUL, HM, PAL,
TELCO and M&M. Daewoo had entered the Indian automobile market with Cielo just three
years back while Ford, Opel and had cntered·less than a year back.

For more than a decade till Hyundai arrived, Maruti Suzuki had a complete dominance and
monopoly over the Passenger Cars segment because TELCO and M&M were solely Utility
and Commercial Vehicle Manufacturers.

HMIL's first car, the Hyundai Santro was launched in 23 September 1998 and was a runaway
success. Within a few months of its inception HMIL became the second largest automobile
manufacturer and the largest automobile exporter in India.

Sales and service nenrork

As of July 2010, HMIL has 390 dealerships and 580 Hyundai Authorised Service Centers in
325 cities across India. H'vl!L also operates its own dealerships known as Hyundai \1otor
Plazas in large metros across India. HMIL has the second largest sales and service network in
India after Maruti Suzuki.
34
Sales performance

During calendar year 2009, HMIL recorded combined sales of 559,880 vehicles with a 14.4
percent growth over calendar year 2008. It sold 289,863 vehicles in the domestic market
achicvcing a 18.1 % growth rate compared to previous year. HMIL's overseas sales grew by
10.7 percent, with expot1of270,017 vehicles.Lll

Exports

HMIL currently exports vehicles to more than 110 countries across Europe, Afhca, Middle
East, Latin America and Asia. It has been the number one exporter ofpassenger cars for the
sixth year in a row in India.

<>C:Ci Oli() ; V1> F>;pon:s

DO'll'-'-'-Btic

(;
'199-8 'i999 2000
Expor:s 20 3.823 6.092 8.245 30,•1~6 75,871 96.560 '113,339 126,749'243,919' 270,007

Oo,n.sstic 8.447 G0,321 81.628 83.932 102,800 120,308 139,759 156,291186.!74200.412-2115.'397 289,8G3

Totn: 8.447 6-0,341 85,451 90,024 11L04S 150.724 215,630 252,851 299,513 327.161 489,316- 559,870

Since inception, HMIL has dominated the automobile market with the reputation of being the
fastest growing automobile manufacturer in India. HMIL's gro\\1h has been driven by
volume-oriented revenues coupled with technological soundness and superior.designs.

35
 A maJor force m the Indian automobile scenano, HMIL 1s the second largest
manufacturer in India. Focusing on the latest technologies and innovative marketing
strategies, HMIL has carved out a niche for itself in the market today with most of its
models leading in their respective segments. It's been a long journey from just 8,447 units
in 1998, till today when HMIL has become a key player in driving the industry growth
year after year.

HMIL, continuing its tradition of being the fastest growing passenger car
manufacturer, registered a total sales of 559,870 vehicles in the calendar year (CY) 2009, an
increase of 14.4 percent over CY 2008. In the domestic market it clocked a growth of 18.1
percent as compared to 2008 with 289,863 units, while overseas sales grew by 10.7 percent,
with export of 270,007 units.

Customer Satisfaction and Marketing of Services

Consumer is a broad label for any individuals or households that use goods and services
generated within the economy. The concept of a consumer occurs in different contexts, so
that the usage and significance of the term may vary.Typically when business people and
economists talk of consumers they are talking about person as consumer, an aggregated
commodity item with little individuality other than that expressed in the buy/not-buy
decision. However there is a trend in marketing to individualize the concept. Instead of
generating broad demographic profiles and psycho-graphic profiles of market segments,
marketers have stm1ed to engage in personalized marketing, permission marketing, and mass
customization. The consumer is the backbone of the Sales System. The consumer drives the
economy by purchasing goods and services from vendors.

36
Customer

Every person who enters the business is a potential customer. Even though they may not
purchase something today, they may purchase something tomorrow. What a salesperson
needs is a better way of determining who the customer really is. One way of doing this is by
understanding the steps of the buying and selling process and then dete1mining where the
customer is in this process at the moment the salesperson greets him.

An advertisement secures the reader's attention, which arouses interest, creating a desire to
take action to purchase the advertised product.

SERVICES

Kotler (l 997) defines service as follows:

Service is any act or performance that one party can offer to another that is essentially
intangible and does not result in the ownership of anything .. It$ ili'oduction may or may not be
tied to a physical product.
Mathe and Shapiro ( 1993) define service as follows:
Service is all of the activities undertaken by the firm to provide value 111 use over
time,measured by increased customer satisfaction with. a tangible product or series of
products.

CUSTOMER SATISFACTION

Kotler (1997) defines customer satisfaction as follows:

Satisfaction is a person's feelings of pleasure or disappointment resulting from comparing
aproduct's perceived performance (or outcome) in relation to his or her expectations.

Brown ( 1992) defines customer satisfaction as:

The state in which customer needs, wants and expectations throughout the product or
service's life are met or exceeded resulting in repeat purchase, loyalty and favourable worth-
of mouth.

37
Consumer perception and after sales service

AFTER SALES SERVICE CONSISTS OF

• Delive1;y
• Jnstallation
• Demonstration
• Repairs
• Wmrnnty
• Courteous attention towards customer
• Complaints Handling

Out of these important elements of after sales services the study considers Delivery, Repairs,
Courteous attention towards customer.

MARKETING STRATEGIES FOR SERVICE FIRMS

In addition to the traditional four Ps of marketing, service providers must pay attention to
three more Ps suggested by Booms and Bitner for services marketing: people, physical
evidence, and process. Because most services are provided by people, the selection, training,
and motivation of employees can make a huge difference in customer satisfaction. Ideally,
service employees should exhibit competence, a caring attitude, responsiveness, initiative,
problem-solving ability, and goodwill. Companies should also try to demonstrate their
service quality through physical evidence and presentation

In view of this complexity, Gronroos has argued that service marketing requires not only
external marketing. but also internal and interactive marketing. External marketing describes
the normal work to prepare. price, distribute, and promote the service to customers. Internal
marketing describes the work to train and motivate employees to serve customers well. Berry
38
has argued that the most important contribution the marketing department can make is to be
"exceptionally clever in getting everyone else in the organization to practice marketing."

Interactive marketing describes the employees' skill in serving the client. Because the client
judges service not only by its technical quality but also by its functional quality.

According to Friday and Cotts (1995). customers evaluate services based on the purpose of
the service, necessity, importance, results, cost, and risk. In order to have appropriate
expectations, acustomer should have a full picture of the purpose of a job. Depending on the
customer's perception, the necessity of a service can vary. If a service is necessary to help
customers perform their jobs, they have high expectations for the job. Individuals have their
own views of the results of the service: the perception of costs is relative to each customer's
perspective. If a customer sees a risk associated with dealing with the company, their
perception of the added value can be minimal.
According to Naumann (1994), determinants of service quality are Reliability - consistency
of services, Responsiveness - willingness or readiness of employees to provide service,
Competence - possession of required skills, Access - approachability and ease of contact,
Courtesy - politeness, respect, consideration, and friendliness, Communication -keeping
customers informed and listening, Credibility - honesty, trustworthiness, Security -
freedomfrom danger, risk, or doubt, Understanding/knowing the customer - making the eff011
to understand a customer's needs, Tangibles -physical evidence of the service

39
 CHAPTER III

DATA ANALYSIS

AND

INTERPRETATION
Table :1

1. How would you rate the ease of obtaining appointment for service/ repair from
Hyundai authorized workshop based on your experience?

SR.No. Options No. of respondents Percentage

1 Excellent 51 59%
2 Good 92 95 %
") Fair 7 68%
4 Poor 0 0

I.
I

100
90
80
70
60
50 00 No. of respondents
40
30
20
10
0
Excellent Good Fair Poor

Interpretation:

Out of the respondents, 51 respondents rated the ease of obtaining appointment for service/
repair from Hyundai authorized workshop as excellent based on their experience. 92
respondents haved rated it as good and 7 respondents rated it as fair. None of the respondents
felt the ease of obtaining appointment difficult.

40
Table:2

2. Do you normally bring your car to the Hyundai authorized Workshop for service/
repair?
a) Yes b)No

S. No. Options No. of respondents Percentage

1 Yes 72 75 %

2 No 78 50%

respondents
79
78
. 78
77 .
. 76
75
74 Ed No. of respondents
73
72
72
71
70
69
Yes

Interpretation:

Out of the 150 respondents, 72 respondents i.e., 48% of the respondents normally bring their
car to the Hyundai authorized Workshop for service/ repair and the remaining 78 respondents
do not usually go for service or repair of their car.

41
Table :3

3. Do you normally call workshop when you have to take your car for service/repair?
a) Yes b)No

S. No. Options No. of respondents

1 Yes 108

2 No 42

No. of respondents

108

100 +---

80 ·I----

60 +-- -- ........ --~············ ········-···-- ............ ··--·--·-·········-·--··--- ,._,,.v. of respond en ts

42
40 i--·-····-

Yes No

Interpretation:

Out of the 150 respondents, 108 respondents i.e, 72% of the respondents normally call
workshop when they have to take their car for service/repair and the remaining 28% of the
respondents do not call to the workshop when they need service/repair.

42
Table :4

4. Problem faced in getting appointment.

a) Overbooked workshop b) Phone not available

c) Machine not available d) Others e) No problem

S.No. Options No. of respondents

1 Overbooked workshop 9

2 Phone not available 15

3 Machine not available 6

4 Others I

5 No problem 119
..

AGE GROUP OF THE RESPONDENTS:

SRNO AGE No Of Respondents % ofrespondents

I 18-28 8 8
2 28-38 28 28
0
~ 38-48 10 10
4 Above 48 54 54
Total 100 JOO

43
The below table shows the age group of the respondents surveyed:

r-
1 120

100 ··--------------------· '"'"'""'--"

I! No Of Respondents

~%of respondents
40 "''""'''''''''"''"""''''"'''

0
18-28 28-38 38-48 Above 48
-______JI
~o~

INTERPRETATION:

From the above table, 8% of the respondents belong to the age group of 18-28 years, 28% of
the respondents belong to the age group of 28-3 8 years, 10% of the respondents belong to the
age group of 38-48 years, 54% of the respondents belong to the age group of above 48 years.

OCCUPATION OF THE RESPONDENTS:

The below table shows the type of respondents of the respondents surveyed.

SRNO Occupation No Of Respondents % of respondents

1 Student 0 0
'

2 Business 50 50
0
.) PriYate Employee 0 ')
.J~ 32
I
L_
!
4
I
I
Govt Employee
Total
18
100 100
18

I
L_ I

44
 Lll No Of Respondents

iB! % of respondents

Student Business Private Govt Total

Employee Employee

INTERPRETATION:

From the above table 0% of the respondents are students, 50% of the respondents are
businessmen, 32% of the respondents are private employee, 18% of the respondents are Govt
employee.

45
WANTING BIKE OR NOT:

The below table shows that whether the respondents is Wanting a Bike or not

Wanting a car or not \Io ofrespondents % of respondents

Yes 80 80
No 20 20
Total 100 100

Having a car or not

:; 1-4000%==-: _:::
35
30 -
: DYes !
25 --
20 i i
~--e-~~
~ g -1--
5
0 .
j- -,
Yes No

INTERPRETATION:

From the above table 80%ofpeople wanting Bike and 20% do not want Bike.

46
TYPE OF BIKE THAT THE RESPONDENT IS WANTING:

The below table shows the type of Bike that the respondent is wanting.

Type of car No of respondents % of respondents

JOOOCC 51 51
1500CC 26 26
1800CC 14 14
2200CC 09 9

60 · · - - - · · ............................................. .

50

. 40 --- ----- -~-·--

Iii! No of respondents
30 -----····-------- ......iii%offespondents

20

10

INTERPRETATION:

From the above table 51 %of the respondents are Wanting HYUNDA Y's 1OOCC Cars. 14%of
the respondents want J 80CC. 26%of the respondents are wanting 150CC.9% of the
respondents want 220CC.

47
SOURCES OF INFORMATION

The below table shows, from where did the respondent get the information about the
CARS.
% of respondents
Sources of information No of respondents

Offers 15 15

Advertisements 27 27

Referred from friends & relatives 33 33

Technology 10 10

Finance Schemes 15 15
• . . .

Total 100 100

120 ~~·····-··-~·~·-··-~~~~~----~~~

100 +-····················································-·-···························-··

80
60
40 +··········~~·-·····-·~····-··~····--·~-

20 Ii No of respondents

o mi% of respondents

~
'!<-..c'
" '<...."
e,'0 O"<tr· ~o¢iJ:-\ ,...~c" "-o"-
o'< . c,e,(" "'-.'-""'" "o
(5' c.,V"'v
e'<> ~ -<-.e vc
o.:s "'o 'b~
'?' .,o "-'"
"'"''
"'""'
INTERPRETATION:

From the above table 15%of people known from offers, 27% of people known from
advertisements, and 33% of people known from their friends and relatives, l 0% of people
known from technology, 15% of people known from finance schemes.

48
 SATISFACTION WITH HYUNDA Y's CARS:

HYUNDAY Performance Mileage Features Price pickup Reliability Brand Image

~xcellent IO 25 24 02 05 08 20
Very good 25 24 15 18 06 02 20

Good 10 21 25 12 15 35 25

Average 21 10 10 14 5 6 8

Door 0 2 1 8 2 3 1

40
35 -,~-' ,,_,_,, ___,_, __ _
30 +-' ,____ , __,__ , ___,,

25 'i-,~--
Ill Excellent
20
Ill Very good
15
Good

i!l Average

tE1 Poor

INTERPRETATION:

From the above table 17% of the respondents preferred PERFORMENCE as their main
motive, 22% of the respondents preferred PRICE as their main motive, 4%ofthe respondents
preferred FEATURES as their main motive, 22% of the respondents preferred TRANSPORT
as their main motive, 2% of the respondents preferred RELIABILITY as their main motive,
21 % of the respondents preferred BRAND IMAGE as their main motive.

49
PERFORMENCE:
The following table shows that, some of the brands of Cars respondents selected
PERFORMENCE as their main motive.

Brand No of respondents % of respondents

-IYUNDAY 32 32
MARUTHI 35 35
FORED 30 30
TATA 03 03
Total 100 100

40 ~-···~---··-···~·--·······-·-······-·--·-····----·-·---·········-··~~·

35 +·---·--·---······

30

25
20 Ill. No of respondents

15 ~ % of respondents
.1.0.
. 5

0
HYUN DAY MARUTHI FOR ED TATA

INTERPRETATION:

The above table shows that and TVS companies are the competitors with HYUNDA Y
Cars.

50
PRICE:

The following table shows that, some of the brands of respondents selected PRICE as their
main motive.

Brand No of respondents % of respondents

HYUNDAY 31 31
HYUNDAY 18 18
MARUTHI 42 42
FORED 9 9
TATA 100 100

35 +-------······

30

25

20 II! No of respondents

Bll % of respondents
15

10

HYUN DAY MARUTHI FOR ED TATA

INTERPRETATION:

The above table shows that is the competitor with HYUNDA Y Cars.

51
PICK UP:

The following table shows that, some of the brands of respondents selected PICK UP
as their main motive.

Brand No of respondents % of respondents

HYUNDAY 50 50
HYUNDAY 10 10
MARUTHI 30 30
FORED 10 10
TATA 100 100

G.t No of re?pondents

!l"rl % of respondents

MARUTHI FOR ED TATA

INTERPRETATION:

The above table shows that HYUNDA Y Cars is the best.

52
MILEAGE:

The following table shows that, some of the brands of respondents selected MILEAGE as
their main motive.

% 0

MILEAGE No of respondents ·espondents

HYUNDAY 50 50
HYUNDAY 10 10
MARUTHI 30 30
FORED 10 10
TATA 100 100

40 ~----·

35 + - - - - - - · · · · ·

30

25

l¥l No of respondents

~%of respondents

10

HYUN DAY MA RUTHI FOR ED TATA

INTERPRETATION:

The above table shows that HYUNDA Y Cars is the best.

53
RELIABILITY:

The following table shows that, some of the brands of respondents selected RELIABILITY as
their main motive.

Reliability No of respondents % of respondents

HYUNDAY 35 35
HYUNDAY 15 15
MARUTHI 30 30
FORED 20 20
TATA 100 100

··-····-· ···-·-··· ·-·-· .. ·-·-·-·-·····-··-·-·--·--···--·-··--· -·---,·-· ··- ..

30

25

20 Ifill No of respondents

15 HE% of respondents

10

0
HYUN DAY MARUTHI FORED TATA

'-----····~--~--~---·-·-··-~-------·~-~~·-·-·--····-··-.J

INTERPRETATION:

The above table shows that TVS is the competitor with HYUNDA Y Cars.

54
FEATURES:

The following table shows that, some of the brands of respondents selected FEATURES as
their main motive.

FEATURES No of respondents % of respondents

HYUNDAY 35 35
HYlJNDAY 15 15
MARUTHI 30 30
FORED 20 20
TATA 100 100

tlll No of respondents

!1Ja % of respondents

HYUN DAY MARUTHI FOR ED TATA

INTERPRETATION:

The above table shows that HYlJNDA Y Cars is the best.

55
BRAND IMAGE:

The following table shows that, some of the brands of respondents selected BRAND IMAGE
is their main motive

Brand Image No of respondents % of respondents

HYUNDAY 40 40
HYUNDAY 20 20
MARUTHI 30 30
FORED 10 10
TATA 100 100

40 .. ·-·-· ·--"···--------- ·-

35

30

25

20 fll No of respondents

15 ~%of respondents

10

0
HYUN DAY MARUTHI FOR ED TATA

INTERPRETATION:

The above table shows that HYUNDA Y Cars is the best.

56
RESPONDENTS:

Respondents who want to buy the Bike of a pa11icular brand:

Brand No of respondents % of respondents

HYUNDAY 40 40
HYUNDAY 15 15
MARUTHI 30 30
FORED 15 15
TATA 100 100

40 ~-~··---------------·---··--·---------·--

35 - l - - - - · - - - - -

30

25

20 l'l No of respondents

15· UH% of respondents

10

0
HYUN DAY MA RUTHI FOR ED TATA

INTERPRETATION:

The above table shows 40% of the respondents want to buy HYUNDA Y Cars.

57
 CHAPTER IV

CONCLUSUION

AND

SUGGESTIONS ·
 CONCLUSIONS

';.. 45% of the respondents are Hyun day customers and hence it is most
Preferred Bike brand out of various brands.

';.. Hyun day 1SOCC is the most preferred model out of all products

>- 60% of the respondents are considering Hyun day brand before
Purchasing there for use.

>- Most of the respondents are getting information through friends

Before purchasing the Bike.

>- Most of the respondents are Wanting good satisfaction with dealer
Service comparing to other brands.
· ?- Most of the respondents are giving more preference to mileage.

';.. 60% of the respondents are affecting by their friends and relatives.

58
 SUGGESTIONS

> The Cars recently introduced by Hyunday are mostly concerned about home base.
So, they should also consider commercial people while manufacturing.

> Indian market is a price sensitive market's the Cars should be at Minimum price with
maximum quality.

> The standard of pricing should be improved.

> Advertisements in Televisions, offers should be increased to attract the People.

> If Hyun day can improve in Performance and brand image it will be the best in all the
other competition brands.

59
 QUESTIONNAIRE

BUYING MOTIVES FOR TWO WHEELERS

l. NAME:
2. AGE

D 18-25

3. GENDER

D Male D Female
4. EDUCATION

D D
Under Graduate Graduate

5. OCCUPATION

D Student DB.
us mess
D Govt. Employee · Private
D Employee

6. INCOME PER MONTH

D 5000-10000 D 10000-20000 D 20000-30000

7. DO YOU HAVE OWN BIKE

D Yes

8. IF YES, WHICH BRAND YOU HA VE

D HYUNDAY D YAMAJ:J

60
9. WHAT IS THE MAIN MOTIVE BEHIND PURCHASING THAT BRAND?

D Performance D FEATURES DPrice

D TRANSPORT D Reliability D Brand Image

10 IN WlllCH WAY YOU PREFERED IN BUYING THAT PERTICULARBRAND CAR?

D Adve11isement D Refened from friends & Relatives

D Technology D Finance Schemes' D
Offers

11. RANK THE CAR YOU OWN ON THESE FACTORS

VERY
POOR AVERAGE GOOD EXCELLENT
GOOD
Performance

Mileage

Features

Price

Pick up

Reliability

Brand Image

61
12. JF YOU DON'T USE CAR, THEN WHICH BRANDS YOU PREFER TO BUY?

D HYUNDAY D DTVS
D YAMAHA

13. WHAT IS THE REASON FOR SELECTING THAT BRAND9

D D
Performance Price D Mileage

D Finance Facility D Brand ImageD Reliability

14. IN WHICH WAY YOU PREFERED IN BUYING THAT BRAND?

D Offer DAdve11isement DReferred from Friends & Relatives

D Technology D Finance Schemes'

15. DO YOU HAVE OWN CAR

D Yes

16. IF YES, WHICH BRAND YOU HA VE

D HYUNDAY D D D
TVS YAMAHA

17. Ir YOlJ DON'T CSE BIKE. THEN WHICH BRA:\DS YOC PREFER TO BUY''

D D 62 D D
 HYUNDAY TVS YJ\M,\HA

18. WHAT IS THE MAIN MOTIVE BEHIND PURCHASING THAT BRAND CAR?

D Performance D FEATURES D Price

D TRANSPORT D Reliability D Brand Image

63
 BIBILIOGRAPHY

S.No. AUTHOR NAME REFERED BOOKS

1. PHILLIP KOTLER Principles of Marketing - 11th Edition

Prentice Hall India.
2. PHILLIP KOTLAR Marketing Management - Millennium
Edition.Prentice Hall India
3. V.S.RAMASW AMY & Marketing Management -7th Edition
NAMAKUMARI Millennium India Ltd.
4. RICHARD R STILL Sales Management _5th Edition
Prentice Hall India.
5. G.C.BERI Marketing Research -6th Edition
HYUNDAI McGraw Hill Co.Ltd.
6: .LUCK DAVID & ·Marketing Research -7th Edition
ROBIN RONALD Prentice Hall India.
7. JASON FRIED Marketing Management
8. W.CHAN.KIM Market Space
9. PHIL BARDEN The Science Behind Why We Buy
10. CARL SEWELL Customer for Life ( How to Turn that
One Time Buyer into a Lifetime Customer

64
 WEB SITES

WWW.GOOGLE.COM

WWW.HYUNDA YMOTOCORP.COM

WWW.GOOGELFINANCE.COM

WWW .INDUSTRYSINDIA.COM

65