INTRODUCTION

Automobile sector is offering a variety of services to make stronger the economy of the country.
The role Customer Relationship Management in the Automobile industry is one of the most
crucial constitutions. Automobile is to be considered as the industry of industries. In the present
competitive scenario the Automobile sector, specially the two wheeler sector is growing
exponentially, this results a huge market for maintenance of two-wheeler. Today the companies
have realized the importance of having the authorized after-sales service network and moreover
the Automobile companies do not considered after-sales service as a cost any more. Indications
are that the unorganized segment is favoured for servicing as opposed to company authorized
segment of the after-sales service sector. The research tries to acquire understanding on the
current use and role of Customer Relationship Management in the two-wheeler industry with
specific regard to the sales and after-sales service area and also tries to find the reasons as to why
customers prefer to choose the unorganized ones for the after-sale service of their two-wheelers.
Also the research has formulated and suggested Customer Relationship Management strategies
to be followed by the two-wheeler companies, which would allow the two-wheeler companies to
capture the untapped customers for after-sales service.

Customer Relationship Management deals with the connection between the firm and its clients.
Customer knowledge is helpful for managing customer relationship. Knowledge management
and customer relationship management are coordinated toward improving and constantly
conveying great administrations and services to clients. To see more in Customer Relationship
Management, we initially required to comprehend three parts which are customer, relationship
and their management. Holding, expanding and retaining customers is a basic part of the
dynamic business. Now quality of services and customer loyalty are focused by the automobile
industry for maintaining strong relationship with their customer through customer relationship
management.

1|Page
The goal is simple. Improve business relationships. A CRM system helps companies stay connected to
customers, streamline processes, and improve profitability.

When people talk about CRM system, a tool that helps with contact management, sales management and
productivity. A CRM solution helps you focus on your organization‘s relationships with individual people
— including customers, service users, colleagues, or suppliers — throughout your lifecycle with them,
including finding new customers, winning their business, and providing support and additional services
throughout the relationship.

CRM for the automotive industry is the software that aids in the smooth buying-selling process of cars
and related parts by upscaling marketing and sales efforts. Automotive CRM is a software solution that
helps auto companies with customer service, sales, and marketing. Such software comes with various
features such as the management of inventory, car maintenance tracking, auto financing, updating lease
details, credit checks, document management, etc.

2|Page
ROLE OF CRM IN AUTOMOBILE INDUSTRY

Customer relationship management is important to every firm as they seek to make profit through long-
term relationships with customers. Automobile industries faces unique challenges in the modern
economy, there is a strong competition between new and used car market. Costumers have incredible
information available to them through internet, review system, social media and more so building
relationship requires more effort.

Customer relationship management is the strongest and most effective approach in maintaining and
creating relationship with customers. Customer relationship management is not only important for
business but also for creating a strong personal bonding relation with in people. Development of this type
of relationship builds the business to new level of success.

Once such a relation is built it is easy for the organization to identify the actual needs of the customer and
to know their expectation and that lead to serve them in a better way. Some of the effective tool used in
most of the renowned organization are batch book, sales force etc

INDIAN AUTOMOBILE INDUSTRY

The automobile industry in India is one of the largest industries in the world. According to IBEF (India
Brand Equity Foundation).The industry accounts for 7.1 per cent of the country's Gross Domestic Product
(GDP). The Two Wheelers segment with 81 per cent market share is the leader of the Indian Automobile
market owing to a growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector. The overall Passenger
Vehicle (PV) segment has 13 per cent market share.

India is also a prominent auto exporter and has strong export growth expectations for the near future. In
AprilJanuary 2016, exports of Commercial Vehicles registered a growth of 18.36 per cent over April-
January 2015. In addition, several initiatives by the Government of India and the major automobile
players in the Indian market are expected to make India a leader in the Two Wheeler (2W) and Four
Wheeler (4W) market in the world by 2023.

3|Page
CHAPTER – 2 INDUSTRY PROFILE & COMPANIES PROFILE

4|Page
INDUSTRY PROFILE

Introduction

India became the fourth largest auto market in 2018 with sales increasing 8.3 per cent year-on-year to
3.99 million units. It was the seventh largest manufacturer of commercial vehicles in2018. The Two
Wheelers segment dominates the market in terms of volume owing to a growing middle class and a
young population. Moreover, the growing interest of the companies in exploring the rural markets
further aided the growth of the sector. India is also a prominent auto exporter and has strong export
growth expectations for the near future. Automobile exports grew 14.50 per cent during FY19. It is
expected to grow at a CAGR of 3.05 per cent during 2016-2026.In addition, several initiatives by the
Government of India and the major automobile players in the Indian market are expected to make India
a leader in the twowheeler and four-wheeler market in the world by2020.

Market Size

Overall domestic automobiles sales increased at 6.71 per cent CAGR between FY13-19 with 26.27
million vehicles getting sold in FY19. Domestic automobile production increased at 6.96 per cent CAGR
between FY13- 19 with 30.92 million vehicles manufactured in the country in FY19. In FY19, year-on-
year growth in domestic sales among all the categories was recorded in commercial vehicles at 17.55
per cent followed by 10.27 per cent year-on-year growth in the sales of three-wheelers. Automobile
exports grew 14.50 per cent year-on-year during FY19, while during April-December 2019, overallexport
increased by 3.9 per cent. Premium motorbike sales in India recorded seven-fold jump in domestic sales
reaching 13,982 units during April-September 2019. The sale of luxury cars stood between 15,000 to
17,000 in first six months of 2019. Sales of electric two-wheelers are estimated to have crossed 55,000
vehicles in 2017-18.

5|Page
Investments
In order to keep up with the growing demand, several auto makers have started investing heavily in
various segments of the industry during the last few months. The industry has attracted Foreign Direct
Investment (FDI) worth US$ 23.89 billion during the period April 2000 to December 2019, according to
data released by Department for Promotion of Industry and Internal Trade (DPIIT).

Some of the recent/planned investments and developments in the automobile sector in India are as
follows:

 In January 2020, Tata Auto Comp Systems, the auto-component arm of the Tata Group entered a joint
venturewith Beijing-based Presto lite Electric to enter the electric vehicle (EV) components market.

 In December 2019, Force Motors planned to invest Rest 600 core (US$ 85.85 million) in order to
develop twonew models over the next two years.

 In December 2019, Morris Garages (MG), a British automobile brand announced plans to invest Rest
3,000crore (US$ 429.25 million) more into India.

 Audi India plans to launch nine all-new models including Sedans and SUVs along with futuristic e-
tornelectric vehicle (EV) by the end to2019.

 MG Motor India to launch MG ZS EV electric SUV in early 2020 and plans to launch affordable EV in
next3-4years.

GovernmentInitiatives
The Government of India encourages foreign investment in the automobile sector and allows 100 per
cent FDIunder the automatic route. Some of the recent initiatives taken by the Government of India are

 Under Union Budget 2019-20, government announced to provide additional income tax deduction of
Rs 1.5 lakh (US$ 2,146) on the interest paid on the loans taken to purchase EVs.

 The government aims to develop India as a global manufacturing center and an R&D hub.

 Under NAT Rip, the Government of India is planning to set up R&D centers at a total cost of US$ 388.5
million to enable the industry to be on par with global standards

 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for
introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster
Adoptionand Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will
also set up incubation center for start-ups working in electric vehicles space. Achievements Following are
the achievements of the government in the past four years:

6|Page
Achievements
Following are the achievements of the government in the past four years:

 In H1 2019, automobile manufacturers invested US$ 501 million in India’s auto-tech

company’s start-ups,according to Venture intelligence.

 Investment flows into electric vehicles start-ups in 2019 (until the end of November) increased
nearly 170 percent to reach US$ 397million.

 NATRIP’s proposal for “Grant-In-Aid for test facility infrastructure for Electric Vehicle (EV)
performance Certification from NATRIP Implementation Society” under FAME Scheme which
had been approved by Project Implementation and Sanctioning Committee (PISC) on 3rd
January2019.

 Number of vehicles supported under FAME scheme increased from 5,197 in June 2015 to
192,451 in March 2018. During 2017-18, 47,912 two-wheelers, 2,202 three-wheelers, 185
fourwheelers and 10 light commercial vehicles were supported under FAMEscheme.

 Under National Automotive Testing And R&D Infrastructure Project (NATRIP), following
testing and research centers have been established in the country since2015

 SAMARTH Udyog – Industry 4.0 centers: ‘Demo cum experience’ centers are being set up in
the country for promoting smart and advanced manufacturing helping SMEs to implement
Industry 4.0 (automation and data exchange in manufacturing technology).

TOP 5 AUTOMOBILE INDUSTRY

1. TATA MOTORS

2. MAHINDRA & MAHINDRA LTD.

3. MARUTI SUZUKI

4. MG MORRIS GARAGES

5. TOYOTA MOTOR CORPORATION

7|Page
 1. TATA MOTORS

Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered in Mumbai,Maharashtra,
India It is a part of Tata Group, an Indian conglomerate. Its products include passenger cars,
trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles.

Pant agar, Luck now, Sunland, Dharwad, and Punein India, as well as in Argentina, South
Africa, Great Britain, and Thailand. It has researc, India and South Korea, Great Britain, and
Spain. Tata Motors' principal subsidiaries purchased the English premium car maker Jaguar Land
Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with Marco polo
S.A. (Tata Marco polo), a construction-equipment manufacturing joint venture with Hitachi
(Tata Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which
manufactures automotive components and Fiat Chrysler and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in1954 in collaboration with Daimler-Benz AG, which ended in 1969. Tata
Motors entered the passenger vehicle market in 1988 with the launch of the

8|Page
TataMobilefollowed by the Tata Sierra in 1991, becoming the first Indian manufacturer to
achieve the capability of developing a competitive indigenous automobile. In 1998 Tata Motors
is listed on the (BSE) Bombay Stock Exchange, where it is a constituent of the BSESENSEX
index, the National Stock Exchange of India, and the New York Stock Exchange. The company
is ranked 265th on the Fortune Global 500 list of the world's biggest corporations as of2019.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the company Tata
Group. Tata Motors increases its UV market share to over 8% in FY2019.

HISTORY

Tata Motors was founded in 1945, as of locomotive manufacturer. Tata Group entered the
commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benzof Germany.
After years of dominating the commercial vehicle market in India, Tata Motors entered the
passenger vehicle

1991 by launching the Tata Sierra, a sport utility vehicle based on the Tata Mobileplatform. Tata
subsequently launched theTata Estate (1992; a station wagon design based onthe earlier Tata
Mobile), theTataSumo (1994, a 5-door SUV) and the Tata Safari(1998)

TATA INDICA (FIRST GENERATION)

Tata launched the Indiain1998, the first fully indigenous Indian passenger car.Although initially
criticized by auto analysts, its excellent fuel economy, powerful engine, and an aggressive hr.strategy
made it one of the best-selling cars in the history of the Indian automobile industries. A newer version of
the car, named Indica V2, was a major improvement over the previous version and quickly became a
mass favorite. Tata Motors also successfully exported large numbers of the car to South Africa. The
success of the Indica played a key role in the growth of TataMotors.

In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit, Daewoo
Commercial Vehicles Company, later renamed Tata Daewoo.On 27 September 2004, Rattan Tata, the
Chairman of Tata Motors, rang the opening bell at the York Stock to mark the listing of Tata Motors.

9|Page
2. MAHINDRA & MAHINDRA LTD.

Limited:- isanIndianmultinational car manufacturing corporation headquartered in Mumbai,

Maharashtra, India. wasestablished in 1945 as Muhammad & Mahindra and later renamed as
Mahindra and Mahindra. It is one ofthelargest vehicle manufacturers by production in India and
the largest manufacturer of tractors in the world. It is apart

Of the Mahindra Group, an Indian conglomerate It was ranked 17th on a list of top companies
in India byFortuneIndia 500 in 2018. Its major competitors in the Indian market include Maruti
Suzuki and Tata Motors.

HISTORY OF MAHINDRA
Mahindra & Mahindra was founded as a steel trading company on October 2, 1945 in Ludhiana as
Mahindra &Muhammad by brothers Harikrishnan and Jayakrishnanand Jagdish Chandra Mahindraalong
with MalikGhulamMuhammad.Anand Mahindra, the present Chairman of Mahindra Group is the
grandson of Jag dish Chandra Mahindra. After India gained independence and Pakistan was formed,
Muhammad immigrated to Pakistan. Muhammad acquired Pakistani citizenship and settled in Lahore,
and in 1948 become Pakistan’s firstfinanceminister. Thereafter, the company changed its name to
Mahindra & Mahindra in 1948. It eventually saw a business opportunity in expanding into

10 | P a g e
manufacturing and selling larger MUVs, starting with the assembly under license of the
WillisJeepin India. Soon established as the Jeep manufacturers of India, the company later
commenced manufacturing lightcommercial vehicles (LCVs) and agricultural tractors. Mahindra
CL 550 MDI, with design licensed from Jeep

Over the past few years, the company has taken interest in new industries and in foreign markets.
They enteredthe two-wheeler industry by taking over Kinetic Motors in India. M&M also has a
controlling stake in the REVA Electric Car Company and acquired South Korea's SsangYong
Motor Company in 2011. In 2010– 11 M&M entered in micro drip irrigation with the takeover
of EPC Industries Ltd innate.

In October 2014, Mahindra and Mahindra acquired a 51% controlling stake in Peugeot
Motorcyclesand acquired a 100% controlling stake in October 2019.

OPERATIONS & MODEL LINEUP

Mahindra & Mahindra, brands its products as "Mahindra", produces SUVs, saloon cars, pickups,
lightweight commercial vehicles, heavyweight commercial vehicles, two wheeled motorcycles
and tractors.

Mahindra began assembling the Jeep CJ3 in 1954, and light commercial vehicles in 1965. In
1979 the licensedassembly of Peugeot diesel four-cylinder engines and transmissions began, and
in 1982 a tie-up with KiaMotorsto build their four-speed KMT90 transmission and transfer case
was announced. Mahindra's MM range was a mainstay of the lineup and was eventually also
offered with a 1.8-liter Isuzu petrol engine in addition to International and Peugeot diesels.
M&M made its maiden entry into the heavy trucks segment with the Mahindra Truck and Bus
Division, the joint venture with International Truck,USA.

Mahindra produces a wide range of vehicles, including MUVs, LCVs and three-wheelers. It
manufactures over 20 models of cars, including larger, multi-utility vehicles like the Scorpio and
the Bolero. It formerly had a joint venture with Ford called Ford India Private Limited to build
Passenger cars.

11 | P a g e
3. MARUTI SUZUKI

12 | P a g e