A Project

On

“CUSTOMER BUYING BEHAVIOR IN AUTOMOBILE INDUSTRY”

A Project Submitted to

University of Mumbai for partial completion of the degree of

BACHELOR OF COMMERCE (ACCOUNTING AND FINANCE)

Under the faculty of Commerce

By

Ms. JAYSHREE SAMADHAN KAMBLE

(ROLL NO.05 ACTY 14)

Under the guidance of

PROF. MRS K. D. SHARA

KARNALA SPORTS ACADEMY BARNS COLLEGE OF ARTS,

SCIENCE AND COMMERECE

Plot No.7, sec -16, behind HOC Colony

Panvel – 410206 . Dist. Raigad

(MARCH2020)

(Semester-VI)
 CERTIFICATE

This is to certified that Ms jayshree Samadhan Kamble has worked and duly completed

her project work for the degree of Bachelor of Commerce (Accounting and Finance) under

the faculty of commerce in the subject of accounting and finance and her project is entitled

“CUSTOMER BUYING BEHAVIOR IN AUTOMOBILE INDUSTRY”

under my supervision

I further certify that the entire work has been done by the learner under my guidance that the

no part of it has been submitted previously for any Degree or Diploma of any university.

It is her own work and facts reported by her personal finding and investigation

Date and Submission:

Prof. Mrs. K. D. Shara Prof Mr. K. K. Bhoir

(Project Guide) (Principal)

Prof. Mrs. K .Dshara

(Co–ordinator) (External examiner)

 DECLARATION

I the undersigned Ms. Jayshree Samadhan Kamble here by, that the work embodied in this

project work title ““CUSTOMER BUYING BEHAVIOR IN AUTOMOBILE

INDUSTRY” forms by own contribution to the research work carried out under the

Guidance of Prof .Mrs. K. D. Shara is the result of my own research work and has not been

previously submitted to any other university for any other degree/diploma to this or any other

university,

Wherever refers has been made to previous work of other it has been clearly indicated as such
and included in the Bibliography.

I hereby further declare that all information of this document has been obtained and present

in accordance with academic rule and ethical conduct.

Ms jayshree Samadhan Kamble

Certified by

Prof. Mrs. K. D. Shara

 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me the chance to do this
project.

I would like to thank my Principal, Prof. Mr. Kalpesh Bhoir for providing the necessary
facilities required for completion of project.

I take this opportunity to thank our Coordinator Prof. Mrs. K. D. Shara her moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide Prof. Mrs. K.D.
Shara whose guidance and care made the project successful.

I would like to thank my college library. for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in

the completion of the project especially my Parents and Peers who supported me throughout
my project
 INDEX

CHAPTER NO\ TITLE PAGE NO

1 INDROUCTION 7-27

4 DATA ANALYSIS AND 37-51

INTERPRETATION AND
PRESETATION

5 FINDING,CONCLUSION 52-55
AND SUGGESTION

6 BIBLOGRAPHY AND 56-61

APPENDIX
CHAPTER 1
INTRODUCTION
 Introduction

The automobile industry today is the most lucrative industry. Due to the increase in disposable
income in both rural and urban sector and easy finance being providing by all the financial
institutes, the passenger car sales have increased at the 30 present per annum over the
corresponding period in the previous year. Further competition is heating up in the sector with a
host of new players coming in and other like Audi, BMW jaguar and Porsche all set to venture in
the Indian market. Once factor that could help the companies in the marketing of their product is
by knowing and creating a personality for their brands. The automobile industry, along with the
auto components industry, is one of the core industries in India. A well developed transportation
system plays a key role in the development of an economy, and India is no exception to it.
Automobile is one of the largest industries in the global market. Owing to its strong forward and
backward linkages with several key segments of the economy. Automobile Sector occupies a
prominent place in the fabric of Indian Economy. Automobile sector is leader in product and
process technologies in the manufacturing sector. It has been recognized as one of the drivers of
economic growth and the domestic automobile industry is believed to be the barometer of the
economy. Such a belief is in line with international trends since in most mature economies the
automobile industry’s performance is viewed as a reflection of the economy’s health. This sector
has emerged as sunrise sector in the Indian economy. According to data published by
Department of Industrial Policy and Promotion (DIPP), ministry of Commerce, the amount of
cumulative foreign direct investment (FDI) inflow into the auto sector from April 2000 to
November 2012 was worth US$7,518 million. The auto sector accounts for 4 per cent of the total
FDI Inflows (in terms of US $) in India. According to the recent data released by Society of
Indian Automobiles Manufacturers (SIAM) India’s scooter and motorcycle manufacturers have
registered 4 per cent growth during April-November, 2012. The Global and Indian manufacturers
are focusing their efforts to develop innovative products, technologies and supply chains. India is
one of the key markets for Global Manufacturers for hybrid and electronic vehicles, which is the
new development in automobile sector. With a turnover of almost $59 Million US Dollars,
Automobile industry Provides employment to 13 million people in the India Work-class. The
automobiles sector is divided into four segments twowheelers, passenger vehicles, commercial
vehicles and three wheelers. Two wheelers India is one of the world’s fastest growing passenger
car markets it is second largest two wheeler manufacturer and fifth largest commercial vehicle
manufacturer. It is also home for thelargest motor cycle manufacturer. Moreover, India is fourth
largest passenger car market in Asia. 3 The auto sector in India has achieved a growth rate of
26% in last two years (2010- 12). However, it has shown a sluggish growth of 12 percent in
2012. The trend is likely to stay with a 10 percent growth outlined for 2013. The main reason are
high ownership costs (fuel costs, cost of registration, excise duty, road tax) and slow rural
income growth. Over the next few Years solid but cautious growth is expected. The Macquarie
equities research reveals that the sale of passenger vehicles is expected to double in the next four
years and growth anticipated is higher than the 16% achieved in the past 10 years. The
automotive Mission Plan 2016 launched by the Government of India seeks to grow the industry
to a size of $145 billion by 2016 and make it contribute 10 per cent to the nation’ GDP. The
growth for automotive industry is important for growth in economy, particularly because the
automotive industry has strong multiplier effect. It is capable of being the driver if economic
growth. High direct to indirect employment ratio of about 1:10 Is estimated for the automobile
industry, because automobile industry has potential to generate employment for about 10 more
for every person employed directly in automobile manufacturing industry. These indirect
employments includes employments in ancillary and component industries, automobile service
stations mechanics, loaders and cleaners of commercial vehicles, institutions financing purchase
of vehicles and people who drive commercial vehicles and hired vehicles. There is a symbiotic
relationship between the growth of economy and the demand for vehicles. In the past few years,
the production and management systems in the India automobiles industry have been
revolutionaries. Thefast growth of automobiles industry is due to the convergence of a lot of
positive factors. These factors have resulted in the introduction of new models
 HISTORY OF AUTOMOBILE INDUSTRY

The history of automobile industry is more than four centuries old the first invention of
automobile industry was as early as in 1769. A French Engineer, Nicolas an J. Cannot invented
the first self-powered, three-wheeled, military tractor that made the use of a steam engine. The
range of the automobile however was very brief. These automobiles were driven by steam
engines, which made them very heavy and large. Besides, this the engine required ample starting
time. Thereafter, in the U.S. Oliver Evans designed a steam engine driven automobile. Then
came the era of electric carriage. A Scotsman, Robert Anderson, invented an electric carriage
between 1832 and 1839 first. In 1842 Thomas Davenport of the U.S.A and Scotsman Robert
Davidson invented more applicable automobiles, making use of nonrechargeable electric
batteries. Col. Rooks Crompton introduced public transport wagons strapped to and pulled by
imported steam road rollers called steamers. The maximum speed of these buses was 33
kames/hr. The first theoretical plans for a motor vehicle were drawn by Leonardo ad Vinci and
Isaac Newton. History of Automobile Industry reveals that US dominated the automobile
markets around the globe. There Were no notable competitors at that time. After Second World
War in 1945 the Automobile Industry of other technologically advanced nation such as Japan
and certain European nation gained momentum. The U.S. Automobile Industry was flooded with
foreign automobile companies, especially Japan Germany within a very short period beginning
early 1980s. The history of automobile industry in India is also quite old. Simpson & Co
established in 1840 were the first to build a steam car and a steam bus in India. The first car ran
on India’s roads in 1898 in Bombay. Ager the end of the World War a large number of military
vehicles come on the roads in India in 1919. American General Motors, a wholly owned Indian
subsidiary of started assembly of CKD Trucks and Cares in 1928 In Bombay. Canadian Ford
Motors started assembly of cars 8 in 1930-31 in Madras, Bombay and Calcutta. In 1942
Hindustan Motors Lt was incorporated. Hindustan Motors produced its first vehicle in 1950. In
1944 premier Automobiles Ltd incorporated. The first vehicle was produced by it in 1947.
Thereafter, in 1947 Bajaj started assembly of Auto in its scheme of replacing cycle rickshaw by
auto under a license from DiMaggio. After independence, the Government if India and the
private sector launched efforts to create and automotive component manufacturing industry to
supply to the automobile industry. Due to nationalization and the license raj, the growth was
relatively slow in the 1950s and 1960s. This hampered the Indian private sector. After 1970, the
automotive industry staerd to grow. However, the growth was mainly driven by
tractorscommercial vehicles and scooter. Cars were still a major luxury. Till the early eighties,
the automobile industry had very slow growth. Until 1982, there were only three manufacturers
who had complete sway in the sector.

 When Were Cars Invented?

The 1901 Mercedes, designed by Wilhelm Maybes for Daimler Motormen Gesell schaft,
deserves credit for being the first modern motorcar in all essentials.

Its thirty-five-horsepower engine weighed only fourteen pounds per horsepower, and it achieved
a top speed of fifty-three miles per hour. By 1909, with the most integrated automobile factory in
Europe, Daimler employed some seventeen hundred workers to produce fewer than a thousand
cars per year.

Nothing illustrates the superiority of European design better than the sharp contrast between this
first Mercedes model and Ransom E. Olds‘ 1901-1906 one-cylinder, three-horsepower, tiller-
steered, curved-dash Oldsmobile, which was merely a motorized horse buggy. But the Olds sold
for only $650, putting it within reach of middle-class Americans, and the 1904 Olds output of
5,508 units surpassed any car production previously accomplished.

The central problem of automotive technology over the first decade of the twentieth century
would be reconciling the advanced design of the 1901 Mercedes with the moderate price and low
operating expenses of the Olds. This would be overwhelmingly an American achievement.

The new firms operated in an unprecedented seller’s market for an expensive consumer goods
item. With its vast land area and a hinterland of scattered

Automotive Industry Growing Pains

 Ford’s mass production techniques were quickly adopted by other American automobile
manufacturers. (European automakers did not begin to use them until the 1930s.) The heavier
outlays of capital and larger volume of sales that this necessitated ended the era of easy entry and
free-wheeling competition among many small producers in the American industry.

The number of active automobile manufacturers dropped from 253 in 1908 to only 44 in 1929,
with about 80 percent of the industry’s output accounted for by Ford, General Motors, and
Chrysler, formed from Maxwell in 1925 by Walter P. Chrysler.

Most of the remaining independents were wiped out in the Great Depression, with Nash,
Hudson, Studebaker, and Packard hanging on only to collapse in the post-World War II period.

The Model T was intended to be “a farmer’s car” that served the transportation needs of a nation
of farmers. Its popularity was bound to wane as the country urbanized and as rural regions got
out of the mud with passage of the 1916 Federal Aid Road Act and the 1921 Federal Highway
Act

. Moreover, the Model T remained basically unchanged long after it was technologically
obsolete. Model T owners began to trade up to larger, faster, smoother riding, more stylish cars.
The demand for basic transportation the Model T had met tended increasingly in the 1920s to be
filled from the backlog of used cars piling up in dealers’ lots as the market became saturated.

 Car Sales Stall

By 1927 replacement demand for new cars was exceeding demand from first-time owners and
multiple-car purchasers combined. Given the incomes of the day, automakers could no longer
count on an expanding market. Installment sales had been initiated by the makers of moderately
priced cars in 1916 to compete with the Model T, and by 1925 about three-quarter of all new cars
were bought “on time” through credit.

Although a few expensive items, such as pianos and sewing machines, had been sold on time
before 1920, it was installment sales of automobiles during the twenties that established the
purchasing of expensive consumer goods on credit as a middle-class habit and a mainstay of the
American economy
Overview of the Auto Segment

Indians have emerged as avid car enthusiasts sporting their prized possessions as status symbols
and speed machines. Foreign car companies have discovered the Indian consumer as well as the
R & D potential in the Indian technical fraternity and are setting up manufacturing plants right
and left across the country at lower costs. The Indian automobile industry is currently
experiencing an unprecedented boom in demand for all types of vehicles. This boom has been
triggered primarily by two factors

(1) Increase in disposable incomes and standards of living of middle class Indian families
estimated to be as many as four million in number.

(2) The Indian government's liberalization measures such as relaxation of the foreign exchange
and equity regulations, reduction of tariffs on imports, and banking liberalization that has fueled
financing-driven purchases

Industry observers predict that passenger vehicle sales will triple in five years to about one
million, and as the market grows and customer’s purchasing abilities rise, there will be greater
demand for higher-end models which currently constitute only a tiny fraction of the market.
These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe
to enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and component
industry. India is fast integrating itself into the world economy and open to international
automotive companies, who are increasingly investing in India
Overview of the Auto Segment

Indians have emerged as avid car enthusiasts sporting their prized possessions as status symbols
and speed machines. Foreign car companies have discovered the Indian consumer as well as the
R & D potential in the Indian technical fraternity and are setting up manufacturing plants right
and left across the country at lower costs. The Indian automobile industry is currently
experiencing an unprecedented boom in demand for all types of vehicles. This boom has been
triggered primarily by two factors:

(1) increase in disposable incomes and standards of living of middle class Indian families
estimated to be as many as four million in number.

(2) The Indian government's liberalization measures such as relaxation of the foreign exchange
and equity regulations, reduction of tariffs on imports ,and banking liberalization that has fueled
financing-driven purchases.

Industry observers predict that passenger vehicle sales will triple in five years to about one
million, and as the market grows and customer's purchasing abilities rise, there will be greater
demand for higher-end models which currently constitute only a tiny fraction of the market.
These trends have encouraged many multinational automakers from Japan, U. S. A., and Europe
to enter the Indian market mainly through joint ventures with Indian firms.

India is increasingly becoming a global automotive hub both for the vehicles and component
industry. India is fast integrating itself into the world economy and open to international
automotive companies, who are increasingly investing in India
Industry size

The domestic Indian passenger car market (including utility vehicles) totaled

900,000 units (with a CAGR of 10 per cent over the past 4 years) while the export were 130,000
million units (with registered CAGR of 68 per cent over the past 4 years) during financial year
2004

The Indian two- wheeler industry is one of the largest in the world, and is expected to maintain
robust growth in the future

At the back of this phenomenal automotive growth is the success of the

Indian auto component industry. Presently a US$ 6.7 billion industry, it is expected to almost
treble in less than eight years time to US$ 17 billion by 2012

Indian offers a distinct technological and cost- competitive advantage, which global original
equipment manufacturing and research facilities. The passenger car market is projected to grow
at a CAGR of 12.3 per cent over the next few years. Growth in the mid-size and premium car
segments is expected to outpace the overall market growth
Indian Automobile Industry

Automobile Industry in India is still in its infancy but growing rapidly. The opportunities in the
automobile industry in India are attracting big names with the big purse and they are investing
vigorously in infrastructure, design and development, and marketing. Automobile industry in
India is today poised for the big leap.

 India is the 2nd largest two wheeler manufacturer in the world

 Second largest tractor manufacturer in the world
 5th largest commercial manufacturer in the world
 3rd largest car market in Asia, surpassing China in the process
 Automobile industry Contributes 17% of the total indirect taxes collected bythe
exchequer & is a driver of product and process technologies, and hasbecome a excellent
manufacturing base for global players, because of its highmachine tool capabilities
 Extremely capable component industry
 Most of the raw material locally produced
 Low cost manufacturing base
 Highly skilled manpower
 Special capability in supplying large volumes

Domestic and Foreign Vehicle Manufacturers:

 Passenger Vehicles
 The main domestic manufacturers of passenger vehicles are as follows:
 Marti Udoyg
 Tata / Telco
 Mahindra / Mahindra

Hindustan Motors Foreign competitors manufacturing locally including Hyundai, Ford,

General Motors, Honda, and Toyota.
Car demand has seen a turnaround since mid 2001 thanks to heavy discounts and cheaper
finance. A large number of new models, both locally assembled and imported, have also
revitalized the market.

In terms of volumes:

The A/B segments are where India’s strength and future lies. The A/Basement accounts for over
65% of the total passenger vehicles produced. Competition in this segment is stiff with Maruti
the market leader with around 55% market share. New models from Telco (Indica),Hyundai

(Santro) and Fiat (Palio) however are eroding Maruti’s long standing3dominance in this
segment.

The mid / luxury range is developing with the introduction of Ford (Ikon),

Hyundai (Accent/Sonata) and Skoda (Octavia), although the volumes are not significant.

The UV segment remains sluggish with growth at just over 1%. The clear market leader,
Mahindra (44% market share) posted increased sales of

9% in the first 3 quarters of 2002/03. Toyota and Telco domestic UV business remains flat.

 Commercial Vehicles

The main Indian companies in the Commercial Vehicle segment are:

TATA Engineering and Locomotive Company (TELCO)

Ashok Leyland.
Bajaj Tempo Ltd.

Eicher Motors Ltd.

Swaraj Mazda.

There is only one international company currently manufacturing CVs in India,

Volvo but again volumes are not large. Other global players are active, although in partnership
with one of the domestic manufacturers E.g.:- IVECO(manufacturing their range of trucks in
association with Ashok Leyland. There has been a significant turn around in this segment over
the last 18months with over 30% growth being seen in terms of both production and sales.

This sector has received a huge boost with India’s massive demand from the infrastructure sector
(particularly roads), cyclical fleet replacement by fleet owners and an upturn in the cement and
steel sectors.

Brand Personality

A brand is “a set of expectation and association evoked from a company or

Product. A brand is how your key constituents- customers, employees,

Shareholders etc. experience what you do.” Some brands are of such great importance to people,
that we speak of them as a part of one’s life and

Identity, being used to express one. Some would say that these brands have their own
personality, the brand per

Sonality, which can be defined as “the setoff human characteristics associated with a given
brand”. Thus, it includes

such characteristics as gender, age and socioeconomic class, as well as such classic human
personality is both distinctive enduring.
Based on the premise that brand can have the personalities in much the same way as humans,
brand personality describe brands in terms of human characteristics. Brand personality is seen as
valuable factor in increasing brand engagement and brand attachment, in much the same way as
people relate and bid to other people. Much of the work in the area of brand personality is based
on translated theories of human personality and similar measures of personality attributes and
factors. Brand personality refers to the set of human characteristics we associated with the brand.
A common

way of determining this is to reply on the metaphor: “If the brand was a person, what would
he/she be like?” we then list and group the traits to

describe the brand as, for example: caring, approachable and trustworthy

These two companies are actually competitors in a service industry. If you were asked of these
two companies you would like to be your friends, you would probably choose company B, as did
95% of other respondents. It is not surprising that the service level of company B can be better
experience for customers than that of company and it is also easy to conclude that if customers
consistently experience these differences between the two companies, then the brand image of
company B will be much better than company A.

A further point of interest arising out of this research is that people tend toprefer brands that fit
their self-concept. Everyone has views about themselves and how they would like to be seen by
others. And they tend tolike personalities that are similar to theirs, or to those whom they admire.
Thus, creating brands with personalities similar to those of a certain group of consumers will be
an effective strategy. The closer the brand personality into the consumer personality (or one
which they admire or aspire to), the greater will be the willingness to buy the brand and deeper
the brand loyalty.
The Creation of Brand Personality

Brand personality traits are formed and influenced by any direct or indirect contact that the
consumer has with a brand. A brand, unlike a person, cannot think, feel or act. A brand has no
objective existence at all; it is simplya collection of perception on the mind of the consumer.
Consumers accept the marketing actions to humanize brands. One explanation fort this can
befound in the theories of animism, which suggest that there exists need bypeople to
anthropomorphize objects in order to facilitate interaction with the nonmaterial world.
Anthropomorphize occurs when human qualities are attributed to non human objects, e.g. brands.
Consumers easily assignpersonality quality to inanimate objects like brands in thinking about
thebrands as if they are human characters.

The brand-person associations can also have a more personal nature. Brands can be associated
with person who use or used that particular brand,for example a close friend or a family member.
Also, brands received as giftscan also be associated with the person from whom the gift was
received.These person associations serve to animate the brand as a vital in the mindsof the
consumers. Obviously, this aspect is much less under the control of the marketers.

Indirectly, the brand personality is created by all the elements of the Marketing mix. Berta,
Lehman and Singh suggest that the personality of a brand is created over time, by the entire
marketing mix of the brand -“its Price (high or low, odd or even), retail store location (imaginary
associations), product formulation (Ingredients, benefits), and product form (solid/liquid. Etc.),
packaging details

(Colour, size, material, shape), symbol; used an all phases of the brand

Communication, sales promotion, and media advertising”.

Non product related brand personalities driver

User imaginary

User imaginary can be based on either typical users(people you see using the brand) or idealized
users (as portrayed in advertising and else were). User imaginary can be powerful driver of brand
personality, in part because the user is already a person and thus the difficulty of conceptualizing
the brand personality is reduced. For example Charlie has a feminine, strongly independent
brand personality driven by it user imaginary. The upscale personality of Mercedes and the sexy,
sophisticated personality of Calvin Klein are similarly influenced by user imaginary.

Sponsorship

Activities such as events sponsored by the brand willinfluence its personality. Swatch, for
example, reinforces its offbeat, youthful personality will targeted sponsorships that have
included the Freestyle SkiWorld Cup in Breckenridge, the first International

Age

how long a brand has been on the market can affect itspersonality.Thus new entrants such as
Apple, MCI, and Saturn tend to haveyounger brand personalities than brand such as IBM,
AT&T, and Chevrolets,and it as all too common far a major dominate brand to see as strongly
andold fashioned, a brand for older people.
Why use brand personality

The brand personality construct can help brand strategies by enhancing their

Understandings of people’s perceptions

of and attitude towards the brand, contributing to a differentiating brand identity guiding the
communication effort and creating brand equality.

Enriching understanding

The brand personality metaphor can help a manager gain an in-depth understanding of consumer
perceptions and attitudes towards the brand. By asking people to describe a brand personality,
feelings and relationshipcan be identified that often provide more insight than is gained by
asking about attribute perceptions.

Contributing to a differentiating identity

Strategically, a brand personality, as a part of a core or extended identity,can serve as the

foundation for meaningful differentiations. Advertisingagencies such as Young & Rubicam and
Ogilvy & Mather routinely include a brand personality statement as a part of their brand
positioning strategy.

Guiding the communication effort

Tactically the brand personality concept and vocabulary communication the brand identity
which richness and texture to those who must implement the identity building effort. Practical
decisions need to be made about not only advertising but packaging, promotions
Brand personality

Are you what you drive? That is what are companies seem to be asking andin the same breath
trying to convince you about. In other words, are you the Hyundai accent owner who commands
immediate respect wherever shegoes (including fro the potential father-in-law) or are you the
suave executive from the Chevrolet ad who is ever ready to share a moment with loved one?
With a plethora of new models in the market, and generic benefits (such asspace or fuel
efficiency) of a particular car segment hardly a distinguishing factor between car models,
marketer are increasingly differentiating on the emotional pay-off a particular car model/brand
provides to the customer. This, of course, varies from the segment to segment and also on how
long aparticular model has been in the market.

For instance, while advertising for entry level or smaller cars tends to focusmore on the rational
or functional benefits of the vehicles, the differentiationsis increasingly on the emotional benefits
when it comes to high end cars.

“Generally, it has been seen as one move up the value chain, thedifferentiation is more on the
emotional pay-off. People buy car as anextension of their personality rather than just features. A
car, in India, helpsbuild up show off, social esteem value.
  Features of Automobile Industry

1.Self-driving features:

A long-gestating technology has been self-driving or autonomous vehicles. It’s been a long wait,
but it’s finally starting to trickle into the mainstream. Pioneered by companies like Google, many
automakers are now starting to adopt and implement autopilot features into their engineering, all
in an attempt to make the driving process safer and more enjoyable. Volvo is one company that
is spearheading the advance and should have vehicles on the market within a couple years. Tesla
is also starting to implement autopilot features, and it’s likely not too far down the road before
we’re all relaxing during the commute, rather than worrying about merging and speed limits.

2. Parking assist

Similar to self-driving technology, parking assistance is a feature that many new models are
starting to adopt as standard. Companies like Ford, Chevrolet, BMW, and others are bringing the
feature into the fold, and before long it will probably be standard across all segments. The
technology itself basically works as you might expect — you find a parking spot, hit a button,
and the vehicle will carefully maneuver itself into position. This is a godsend for many drivers
who are stressed-out by the idea of parallel parking, or have a hard time in tight parking garages.

3. Aluminum construction

One of the more widely-reported new developments in the auto industry is the adoption of new
construction materials. The most obvious is aluminum, which has been adopted by a number of
manufacturers. Most consumers are looking forward to the new aluminum-based Ford F-150,
which is being seen as a big gamble in the eyes of many. The F-150 is America’s perennial best-
selling vehicle, and by switching things up, Ford’s running the risk of alienating its customers.
Of course, fuel economy and efficiency will be improved as a result, and other automakers will
be watching closely to see what happens, as this will be the largest mass-market test of
aluminum alloys to date.
4. On-board Wi-Fi

This is what so many people have been waiting for: the opportunity to connect to your own,
private, on-board Wi-Fi network while on the road. No more burning through all of the data
allotted to you by your data plan, the world’s automakers are turning vehicles into wifi hotspots,
allowing for streaming and continuous connection no matter where you go. Chevrolet and Ford
are two of the leaders in this category, but, again, it is something that will likely sweep over the
entire industry before long.

5. Interactive computer systems

While “interactive computer systems” may be kind of a broad description, that’s because it’s a
broad subject area. Computer systems in today’s vehicles are becoming much more intuitive and
interactive than in previous generations, but what is truly making them special is the ability to
connect with other devices. Some cars are able to sync with wearable technology, like Google
Glass, to make the driving experience pretty incredible. Of course, there are some legal hurdles
to overcome.

6. Fuel-saving tech

Again, this is a rather broad description, but that’s because there are simply so many small
engineering quirks and features being added to the fold that it’s hard to pick just one. As we saw
before, aluminum construction could be added to the pile, but other features, like plug-in
technology, direct-injection engines, and more. In fact, the average fuel economy for vehicles
across the board is on the up and up, all the way to more than 24 miles per gallon. Expect that
number to keep increasing.
RISK MANAGEMENT IN AUTOMOBILE INDUSTRY

Being employed in car industry for some time I had insight in various cases of troublesome
experiences which led me to write this article ad shed some light on inside of risk management
process in my industry.

RESEARCH ON THE AUTOMOTIVE INDUSTRY'S RISK INDEX

Most of the risk in the business is attributable to the current fluctuation in exchange rates. An
example of these would be the hedging rates between the US dollars against the British pound of
around 60%, and hedging rates with the Japanese Yen which is even higher.

Another risk indicator in the industry trend would be the state of the economy. If the economy
recovers faster than expected, industry levels that reached a high level in 2007 and 2008, is seen
to be coming back again. In the medium term, growth is seen to rise with expansion
opportunities in Asia and Eastern Europe as stated in Daimler's Report on Automotive
Opportunities and Risk.

Production of spare parts and car assembly are now going full blast in China and Russia, with
cooperation from local partners. Further change is also seen in the development of automotive
technology that affects corporate sales and earnings. At this juncture, if can be perceived that
there is an apparent real risk and hazard of the trade.

A manufacturer of brake components may have a greater risk than a company that manufactures
hood components. The volume of production would also indicate the amount of risk involved.
 CONSUMER BEHAVIOUR

1. Brand Perception: Consumers often have strong perceptions of automobile brands based on
factors like reputation, reliability, safety, and prestige. Brand loyalty can significantly
influence purchase decisions, with some consumers preferring well-established brands while
others may opt for newer or niche brands.

2. Product Features and Performance: Consumers consider various features such as fuel
efficiency, horsepower, safety features, technology integration (e.g., infotainment systems,
connectivity), design, and comfort when selecting a vehicle. Performance and functionality
play a crucial role, especially for consumers with specific needs or preferences.

3. Price Sensitivity: Price is a critical factor influencing consumer choices. While some
consumers prioritize affordability and seek budget-friendly options, others may be willing to
pay more for premium features or luxury brands. Additionally, factors like financing options,
discounts, and incentives can impact purchasing decisions.

4. Consumer Demographics and Lifestyle: Demographic factors such as age, income,

occupation, family size, and geographic location play a significant role in shaping consumer
preferences. Lifestyle choices, hobbies, and interests also influence vehicle selection, with
some consumers opting for environmentally-friendly options like electric or hybrid vehicles.

5. Social Influence and Trends: Social influence, including recommendations from friends,
family, and online reviews, can sway consumer decisions. Trends such as sustainability, eco-
friendliness, and technological advancements impact consumer behavior, with increasing
demand for electric vehicles (EVs), autonomous features, and connectivity options.
6. Purchase Experience and Customer Service: The overall purchase experience, including
dealership interactions, test drives, and after-sales service, can impact consumer satisfaction
and brand loyalty. Positive experiences can lead to repeat purchases and referrals, while
negative experiences may deter consumers from returning to the same brand or dealership.

7. Marketing and Advertising: Effective marketing campaigns, advertisements, and branding

efforts influence consumer perceptions and awareness of different automobile brands and
models. Companies invest heavily in advertising to create brand awareness, showcase
product features, and evoke emotional responses that resonate with target audiences.

8. Cultural and Environmental Factors: Cultural norms, societal values, and environmental
concerns influence consumer behavior in the automobile industry. Increasing awareness of
environmental issues has led to a growing demand for eco-friendly vehicles, driving
manufacturers to develop more sustainable alternatives.

9. Understanding these factors allows automobile manufacturers and marketers to tailor their
products, services, and marketing strategies to meet the diverse needs and preferences of
consumers in the ever-evolving automotive market. Additionally, ongoing technological
advancements, regulatory changes, and shifting consumer priorities continue to shape the
landscape of consumer behavior in the automobile industry.
Chapter 2
 RESEARCH AND METHODOLOGY

RESEARCH METHODOLOGY

Research methodology is the specific procedure or techniques used to identified select, process
and analyze information about a topic, in a research paper, the methodology allows are reader to
critically evaluate a study overall validity and reliability.
 OBJECTIVE OF STUDY

 To study the consumer buying behavior in automobile industry.

 To study and know the role consumer buying in behavior industry.
 To study the various stages involved in the process of a product launch.
 To study in depth the concept of new products and launch strategy and its relevance to
any organization.
 To study the trends in the Indian Automobile Industry - Past, Present and Future.
 To understand the background of new product launches in the Auto Industry.
 To study the trends of the global automobile industry.

HYPOTHESIS

Ho: customers are not satisfied with services of consumer buying behavior in automobile
industry

H1: customers are satisfied with services provided byconsumer buying behavior in automobile
industry
 SCOPE OF THE STUDY

 This project based on customers behavior towards consumer buying behavior in

 automobile industry
 This study has concentrated all the service in automobile industry
 The scope of the study is very wide. The Selection of the company under the study is
 not made on the basis of any recognized system of sampling.

SIGNIFICANCE OF THE STUDY

 The study will help the customers behavior to known about the automobile industry
 The study will help how to response the consumer behavior in customers buying
behavior in automobile industry
 The study will help to increasing the consumer behavior in automobile industry

DATA COLLECTION

In order to conduct the research an appropriate methodology become nursery .the information
provided in this project has been collected from various sources. This data the material for the
project has been collected keeping in view the objected of a project on accordingly data has been
founded out form the following two sources. Primary data, secondary data.

PRIMARY DATA

Primary data is data originated for the first time by the researcher through direct effect and the
experience, specifically for the purpose of addressing his research problem. The study relies
heavily on primary data .the primary data has been collected by using structured questioner,
interview of consumer buying behavior in automobile industry.
SECONDARY DATA

Secondary data implies second –hand information which collected and records any person other
than the user to purpose

This secondary data has been collected from newspaper, internet, article, and websites.

SAMPLE SIZE:

Number of responded for my study is 50

SAMPLE AREA:

This study has been conducted in panvel area.

LIMITATION

During the course of the following major limitation were observed

 Time in the major limitation, which has affected the inferences drawn in the study.
 Some of the respondents were reluctant to share the information with the researcher.
 As only one city was survey it does not represent the overall view of the Indian
market.
 Finally this study did not examine whether courteous expression on personal

REVIEW OF LITERATURE

A literate review is a comprehensive summary of previous of research on a topic. The literature

review surveys scholarly articles, books, and other sources relevant to a particular area of
researcher. This review should enumerate, describe, summarize, objectively evaluate and clarify
this previous researcher. It should given a the article base for the research and help you (the
author) determine the nature of your research. This literature review acknowledges the work of
previous researcher.

1) Peter Marshall, et al., (2000):

Reported that impact of electronic commerce in the car retail industry in Western Australia.
Much of the existing literature in electronic commerce puts forward theoretical models and
speculative argumentation in an attempt to describe and understand the electronic commerce
phenomenon. They were uncertain about the ultimate magnitude of electronic commerce in
their industry, they were uncertain about the costs and benefits of electronic commerce
investments, but they were unwilling not to be involved at all. In addition, a number of
drivers and inhibitors of electronic commerce from the perspective of these CEOs in the car
retail industry were also identified. The car industry in Western Australia thus remained only
superficially affected by the technology and presence of the Internet. Some, again like their
US detached from the energetic, everyday business of selling cars and making money was
the beginning and end of Internet-based commerce for the car dealerships. Cars were not
behaviour was not being influenced by the Internet.
2) Xavier Richet, (2003):
Presented the state of industrial restructuring of the car industry in Russia and analysed the
strategy of the main actors in the sector. The three main ones being Russian industrial
groups, foreign multinational corporations willing to enter into the market and thirdly, the
Russian government which have to decide between supporting its national industry and
opening the market to world competitors. In other transition economies, foreign direct
investments had played a major role in controlling this strategic sector. The researcher stated
that Russian car industry was the most developed and the most important amongst CEE and
CIS economies. It prospects of growth in the near future were high. But, the industry was
slowly recovering, in spiteof also required externalizing business organization by building up
new networks of suppliers and distributors, as well as upgrading the production, developing
new models and integrating new technologies in order to fill the gap with western makers in
terms of quality, standards and efficiency.
3) Erdogan, et al., (2009):
 Investigated that the service quality perception was one of the key determinants of customer
satisfaction and repeat purchase. Quality issues in the car rental industry however, had
received less attention. Furthermore, there was lack of a scale developed to measure service
quality in car rental services. This research aimed to develop a measurement scale in
accordance with the procedure recommended by Churchill (1979) and Parasuraman,
Zeithaml and Berry (1988). The data was collected from 726 respondents using judgmental
sampling approach. The content analysis was used where researchers listened to the recorded
interviews and created transcripts of all answers. The statistical tools used were the
percentage analysis and factor analysis. From the analysis it was concluded that the debate on
gap scores that were perception minus expectation or just perceptions. The expectation and
perception measuresmost of the time cannot be used simultaneously. Regarding the
limitations of the study in this respect, only the perception items were conducted.
4) Camilla Bond, et al., (2010):
Noted that the rapid rise of social media had captured the attention of marketers and
consumers on a global scale and together with rapidly changing communications
environment marketers now confront new challenges in terms of understanding of consumer
behavior and consumption patterns in the new millennium. Social media brought with it
powerful opportunities for brands to engage with consumers, one method being through
interactive advertising. To broaden understanding and assist in managing marketing
communications effectively, this exploratory research investigated the role of social media
within the broader advertising and communications mix. Qualitative focus groups were
conducted with consumers to assess perceptions and attitudes towards social media
advertising and preferences for brand engagement through this channel Findings suggested
that use of social media advertising in a multi channel communications approach could have
powerful impact on brand loyalty and engagement

5) Shriram Shimpi, (2010):

Studied that the consumer buying behavior for used cars in Pune city. This study explored
the relationship between variables which affect consumer buying behaviour for used cars in
Pune city. It also attempted to understand used car market in India. The sample consists of 84
 respondents and chi-square was used to test the hypotheses. The sampling technique used
was Purposive Sampling. From the analysis, it was found that a number of factors
influencing the buying behaviour of used car owners in India. This included the emotions,
purchase intention, family income, mileage, colour of the car, fuel variants, and make of the
car. It was also observed that the owners of the used cars carry similar emotions and
attachment as good as the owners of new cars and many car manufacturers had set up their
separate units for dealing with the used car market. These establishments were spending huge
amounts on advertisements and other promotional strategies. Growing interest of customers
and also of the used-car dealers, assures the shining future of used cars in Indian market.
6) Ashutosh Nigam and Rajiv Kaushik, (2011):
Determined that with stiffening of competition among different car companies it become
extremely important for marketers to focus on branding of their products. Brand equity was
important tool for associating a brand and influencing customers in making purchase
decisions for particular brand of hatchback cars. Factor analysis was used to understand the
underlying factors influencing customers in positive purchase intension. The study threw
light on various factors of brand equity marketers much focus on to attract and retain their
prospective and existing customers. The study concluded that right marketing mix in
marketing strategy a pivotal role in customer purchase decision criterion.
7) Dharmaraj and Sivasubramanian, (2011):
Decision to buy a product or service was the result of interplay of many forces or stimuli.
The researcher identified the factors contributing brand preference and analyzed the factors
identified on brand preference of passenger car. This study refined the factors that will
influence the brand preference of passenger cars in India, addressed the preliminary issues
relating to selection of a brand and pre purchase behavior of the respondents. The -parametric
test. The factors that influenced the respondents towards the brand preference were classified
into four dimensions namely, variables used under the above said four dimensions were
developed with the help of literature review and classified using factor analyses. This study
revealed the factors that contribute more on brand preference which will be more relevant
and useful for general public as well as the manufacturers and dealers and also provides
means which would equip them with effective marketing strategies to improve their
performance and retain the customers. This research made a systematic effort on studying
 consumer brand preference towards passenger cars in India by analyzing the factors that
influence brand choice of the customers and addressed the preliminary issues relating to
selection of a brand.
8) Rouhollah and Veeri, (2011):
Evaluated the effect of total quality management on quality culture and performance and
find out the relationship between quality culture and performance of the Automobile
Industry. The aim of this research was to carry out a theoretical study on the determinants of
Total Quality Management in the Iranian Automotive Industry. The main contribution of this
research was to persuade managers to take a serious attention on the relationship among
TQM determinants, quality culture and performance improvement in the Iranian Automotive
Industry. First, automotive industry was the second most active industry in Iran after oil and
gas sector. Second, it had a to export its products to global markets. Due to cutthroat
competition, turbulent business environment, must consider TQM, which was a serious
problem faced by the sector. It was hoped that the important facts addressed in this study will
be a means whereby managers and researchers will be able to investigate the TQM problem
in Iranian Automotive Industry with better awareness.
9) Rouhollah and Veeri, (2011): Evaluated the effect of total quality management on quality
culture and performance and find out the relationship between quality culture and
performance of the Automobile Industry. The aim of this research was to carry out a
theoretical study on the determinants of Total Quality Management in the Iranian
Automotive Industry. The main contribution of this research was to persuade managers to
take a serious attention on the relationship among TQM determinants, quality culture and
performance improvement in the Iranian Automotive Industry. First, automotive industry was
the second most active industry in Iran after oil and gas sector. Second, it had a to export its
products to global markets. Due to cutthroat competition, turbulent business environment,
must consider TQM, which was a serious problem faced by the sector. It was hoped that the
important facts addressed in this study will be a means whereby managers and researchers
will be able to investigate the TQM problem in Iranian Automotive Industry with better
awareness
10) Trisha Dowerah Baruah, (2012):
 Found in the research that with the world in the midst of a social media revolution, it was
more than obvious that social media like Facebook, twitter, orkut, MySpace, Skype etc., were
used extensively for the purpose ofcommunication. One of the most important advantages of
the use of social media was the online sharing of knowledge and information among the
different groups of people. This online sharing of information also promoted the increase in
the communication skills among the people especially among the learners/students of
educational institutions.
11) Adithya, (2013):
Observed that the customer perception and behaviour of car owners in Bangalore City. The
main aim of this research was to study the behaviour of consumers, perception of product
attributes and level of satisfaction and identified the factors influencing the purchase of cars.
A sample of 100 consumers was selected (50 consumers from Bangalore Urban and 50
consumers from Bangalore Rural). For the purpose of evaluation, the percentages, chi-square
test had been used for meaningful analysis and clear presentation. The data was collected and
analyzed.
12) Bhuwan and Nisha, (2015):
observed that the brand preference of customer towards four wheelers. The researchers made
a comparative study of Maruti Suzuki and other relative brands in the same category. This
study was conducted among the car owners residing at Alwar District, Rajasthan. For this
purpose, simple random sampling technique was adopted to collect the data from the 300
respondents who were using the
 DATA ANALYSIS AND INTERPRETATION

1) Are you satisfied with the consumer buying behavior in automobile industry

Categories No. of Response Percentage

Satisfied 30 60%
Dissatisfied 20 40%
Total 50 100%

70

60

50

40

30

20

10

0
satisfied dissatisfied

Interpretation: The majority of respondents, constituting 60%, expressed satisfaction with the
consumer buying behavior in the automobile industry. This suggests that a significant portion of
the surveyed population perceives the buying behavior within the industry positively.
2) Owned Brand

Brand No. of Response Percentage

Maruthi 30 60%
Hyundai 20 40%
TOTAL 50 100

Sales
maruti Hyundai

40%

60%

This interpretation appears to be a breakdown of consumer responses regarding their preferred

car brands, specifically Maruti and Hyundai. Here's a breakdown:

Brand Preference:

Maruti: 60% of respondents prefer Maruti.

Hyundai: 40% of respondents prefer Hyundai.

Total Responses: There were a total of 50 responses gathered.

This data suggests that Maruti is the more preferred brand among the respondents, with 60% of
them favoring it over Hyundai, which garnered 40% of the responses.
3) Occupation

Occupation No. of Response Percentage

Service 20 40%
Business 14 28%
Other 16 32%
Total 50 100

40%

40 32%
35 28%
30
25
20
15
10
5
0
Occupation

Service Business Other

This interpretation provides insight into the distribution of respondents based on their
occupations. Here's the breakdown:

Occupational Distribution:

Service: 40% of respondents are employed in service-based occupations.

Business: 28% of respondents are involved in business activities.

Other: 32% of respondents have occupations categorized as "Other."

Total Responses:There were a total of 50 responses collected.

4) You prefer car manufactured by Indian or Multinational

Country NO. of Response Percentage

Indian 35 70%

Multinational 15 30%

Total 50 100

70 30
80
60
40
20
0
Country

indian multinational

3This data provides insights into the preference of respondents regarding car manufacturers
based on their country of origin. Here's the breakdown:

Preference for Car Manufacturer:

Indian: 70% of respondents prefer cars manufactured by Indian companies.

Multinational: 30% of respondents prefer cars manufactured by multinational companies.

Total Responses:There were a total of 50 responses collected.

5) Before buying car from her were you offered a test drive?
 You offered a test drive NO. of Response Percentage

Yes 40 80%
No 10 20%

Total 50 100

You offered a test drive

20%

Yes
No

80%

This data provides information on whether respondents were offered a test drive before
purchasing a car. Here's the breakdown:

•Yes: 80% of respondents were offered a test drive.

•No: 20% of respondents were not offered a test drive.

•Total Responses:There were a total of 50 responses collected.

6) Receive any intimation for service is due

Yes 20 40%

No 30 60%

Total 50 100

intimation for the service

Yes No

40%

60%
7)Service centre maintain the delivery schedule

Yes 35 70%

No 15 300

Total 50 100

maintain delivery schedule

Yes No

30%

70%
8) change your service provider

Yes 36 72%
No 14 28%
Total 50 100

80
72
70
60
50
40
30 28

20
10
0
change for service provider
Yes No
9) Do you think you would be buying a car in the near future?

Yes 21 42%
No 29 58%
Total 50 100

buying car in future

Yes 2nd Qtr

42%

58%
10) Would you like to switch to another with other features?

Yes 22 44
No 28 56
Total 50 100

Like to switchanother featuers

Yes
44% No
56%
 Car’s Profile

1.Maruti Udyog Limited

Maruti Udyog Limited is the premier car company in India. Maruti UdyogLimited (MUL) was
established in Feb 1981. The company entered into collaboration with Suzuki Motor Corporation
of Japan to manufacture cars.Maruti is the highest volume car manufacturer in Asia, outside
Japan and Korea.

Maruti Udyog Limited, the largest Car selling company in India, has manyunique Service
advantages for the customers. It has bagged the First

Position in JD Power Customer Satisfaction Index for the consecutive two years. The company
has also ranked highest in the India Sales Satisfaction Study.

Estilo

Maruti launched all new Estilo. If you are wondering why I dropped Zen fromthis car's name
then let me explain. Estilo has got Wagon R's engine andchassis and Suzuki MR Wagon's shape.
Whatever remains is taken fromZen, well does anything remains actually? Yes, Name! Name is
taken from

Zen, 'Zen Estilo'. In essence it’s stylish Wagon R, Japan's MR Wagon,

combination of the two or anything but Zen. It seems Maruti wants to exploitZen brandimage
hence named this car after Zen.
Zen Estilo has the same engine (1061cc, 64.8ps, 84Nm, 4-cylinder, 16-valve, MPFI F10D Petrol)
under the hood that is found in Maruti Wagon R. Absolutely nothing has been changed except
for the fact that this engine is much refined and is slightly better at responsiveness and fuel
economy. This simply translate into 'Zen Estilo is a bit faster and more fuel economic than
Wagon R'. Due to highly good drivability, driving in city would be more fun with Zen Estilo.
Electronic Power Steering (not available in LX version) really helps in crowded traffic. Owning
and maintaining Zen Estilo won't be a problem, engine is proven reliable and virtually
maintenance-proof.\

Wagon R Duo

At first glance the Maruti Wagon Duo looks quite normal. Well, that is if you think the Wagon’s
boxy looks are normal to start to start with. Frankly, for car that has to get around a city, I really
don't care, because the Duo is all about LPG, and the fact that it is first factory fitted LPG car in
India. Factory-fitted means one major plus, your warranties don't get voided because of thegas
fitment.There is no denying the cars cost advantage, this is the cheapest Marutivehicle to run,
and that in itself is a massive statement. The redesign of thecar hasn't just meant a fresh exterior
look; it has also meant new interior -rotary controls on the panel and a very neat looking display
with an all new Speedo.

Swift

Competing with the other cars of Maruti, Maruti Swift is gradually making itsposition in the
world of mid-sized family car. Maruti Swift has come up withthe special technical specifications
of 16 valve 4-cylinder, 1300 cc enginegenerating power. Maruti swift is equipped with various
safety features andwell advanced equipments. 3 assist grips, 3 spoke urethane steering
wheel,antenna, cabin light (3 position), console box (lower), cup holders (front 2,rear1), front
door trim pockets, green tinted glass window, halogenheadlamps, headlamp leveling device,
heater and manual Air conditioning,OVRM (internally adjusted), rear foglamps, wind screen
wiper 2 speed plus 1 speed intermittent, tailgate openerkey type, trip meter (digital display), sun
visors (both sides), brake assist ,child lock (rear door), high
mounted stop lamp, power steering, rear seatbelts etc. are the features available in this model.
Apart from the featuresfound in other model, striking features of this model are black colored A
& Bpillars, 12v accessory socket in center console, day and night rear viewmirror, door ajar
warming lamp, driver's seatbelt warning lamp, tachometer,driver's seat belt warning lamp, vanity
mirrors (sun visor co-driver side), rearseat head restraints, fabric accented door trims, central
door locking (4door), front and rear electronic windows, front fog lamps, light off/ keyreminder,
manual air-conditioning, key not removed warning buzzer, etc

Maruti Esteem

Sophisticated big structured Maruti Suzuki esteem is one of the old car of theMaruti Udyog
group. To run this huge car its engine is made of lightweightall-aluminum. This contemporary
engine has capacity of 65 bhp at 6000 rpm.

According to *Mileage (Auto India, Nov 2005), Esteem holds the topmostposition on mileage
among the other category of cars including the smallcars.

There are three models of Maruti Suzuki Esteem:

Maruti Esteem (Lx)

Maruti Esteem (Lxi)

Maruti Esteem (Vxi)

The basic model of Maruti Suzuki Esteem includes various safety featuresand unique
configuration in it. Air conditioned Maruti Suzuki Esteem for thecomfort of the owner
provides the facilities of cabin heater, front seat backpockets (both sides), front door pockets
(both sides), air flow controls,remote operated fuel tank lid and trunk lid, coat hanger hook on
gripassistance etc..

Instrument panel of this model includes tachometer and speedometer withsporty dial. Security
measurement of this model has headlamp levelingdevice, collapsible steering column, lockable
glove box, child proof rear doorlocks, halogen headlamps, prismatic daynight inside rear view
mirror etc.

Hyundai Motor

Hyundai Motor India Limited (HMIL) was established in 1996 and is a wholly owned subsidiary
of South Korean multinational; Hyundai Motor Company.HMIL is the fastest growing and the
second largest car manufacturer in India and presently selling 30 variants of passenger cars in six
segments. The Company

has set up more than 70 dealer workshops that are equipped with the latest technology,
machinery, and international quality press, body and paint shops, across the country, thereby
providing a one-stop shop for a Hyundai customer. Hyundai also has a fleet of 78 emergency
road service cars that can provide emergency service to all its customers anytime, anywhere.

Hyundai Santro

In the field of mid size car, Santro Xing is capturing the market very rapidly. Its design, style,
space and other special features has made it one of the highest purchasable cars among any
economy class·

Santro XL

Santro XO
Santro AT

Along with the other features that are present in Santro XK (Non AC), other features present in
this model are air conditioner, day and night inside rearview mirror, chrome1 radiator grille etc.
Along with the features available inSantro XK, added features in this model are 4 doors CLS,
passenger sideOVRM, tinted glass, map pocket front door driver side, front door full size arm
rest, door trim with fabric insert, hydraulic power steering, power windows (front) etc

Tata Motors Limited

Tata Motors Limited is India's largest automobile company, with revenues of Rs. 24,000 crores
in 2005-06. Its name comes first in the category of commercial vehicles and the second largest in
the passenger vehicles, midsize car and utility vehicle segments. The company is the world's fifth
largest medium and heavy commercial vehicle manufacturer.

Over 3.5 million Tata vehicles is moving on Indian roads, since 1954. Its manufacting plant is
located at Jamshedpur, Pune and Luck now

Tata Indica V2

Having attributes of three popular cars, Tata India is ruling the market. Making of Tata Indica
with the concept of main distinguishing features of three popular cars i.e., with the overall
structure of Maruti Zen, interior space like ambassador and cost nearly like Maruti 800 was a
challenging venture of Tata Motors.

Its fully foldable rear seat has made this car more accommodating for extra luggage. For safe and
secure driving and to give proper comfort, side-impact beams, rigid monochrome frame and
child safety locks are attached to this car.
 FINDING

60% Respondents viewed overall service of customer buying behaviour in automobile industry
excellent.

There are 60% customers highly satisfied with owned brand.

There is 40% customer satisfied with occupation.

There are 70% prefer car manufactured by india and 30%multinational.

There are 60%cutomers received any information service in due.

There customer highly satisfied with the customer buying behaviour in automobile industry.

There are 72%highly satisfied with the change service provider and 28%satisfied.

Finally study found the customers of CBAI are more satisfied with their owned brand of the
CBAI.
 Scope of future study

As the report mentions there are clue in the market that the cars are on apath of becoming
commodities just like the fate awaits for any other consumer goods. So what can be the role and
scope of brands and their personality in the changes scenario to establish the brand perception of
any car in the mind set of a customer present or potential can be one area of study?

On the close lines, another area of study can be the importance of advertisements and promotion
schemes on the brand image of any car brand? Are the brands which advertise

more have a positively high brand?

Perception or it’s the sales promotion schemes which create the ripples in

The mindset of the customers.

It is aimed to study the car market and buying behaviour of the customer. The project is
analyzed the demographic, psychographic and buying characteristics of the customers in buying
the car. It includes the detailed study of customers focusing on the various parameters that lead
to identifying and understanding the perception of the customer in buying the car brands.
 Conclusion

To conclude, the results show that the companies are playing on the peripheral cues to maintain
their Total Relationship Management and connect to the customers both present and potential.
The companies are operating in a highly aggressive and competitive global market place and this
climate has led to the emphasis on quality in all aspects. TQM focuses on integration and
coordination as well as the continuous improvement of all activities and processes. Total
Relationship Management (TRM) is a very recent marketing strategy and philosophy. It focuses
on and is concerned with all integrated internal and external activities within and between the
organizations. These two terms are integrated by the manufacturers by building good quality
products and building good relationship with dealers and enhancing service levels.

So, it becomes necessary automatically to study dealer as a part of

customers’ satisfaction journey with the product called

d car! Their proximity tithecustomers, the service provided by them and the relationship
maintained by them with the customers help the car companies to establish and reinstate the
brand personality communicated by them to the customers.

Finally the major point that emerges out of this detailed study is a caution forth car companies. It
says that there is no doubt that Indian car market maybe growing with a double digit figure still
the car companies have a long way to travel to convince their customers about the brand
personality of their cars and how it suits the prospective buyers. Simply because it simply is not
guarantee that how so ever good the customer might be holding the brand perception and how so
ever good the brand image may be it is not guarantee that it will convert into sale. Cars just like
clothes and accessories suit the style and persona of a person and since all cars will become
commodity someday the key to sell and excel in the market will lie with a person who knows
how to use the

Perceptions of the customers to its use and sell the cars ‘coz ultimately only

That car survives which sells

 Suggestions

Supporting IT integration in manufacturing and development of infotronics through project

financing by government.

Introduction of an Inspection and Maintenance Regime of Road, Transport and Highways.

To take up with Machine Tool Manufacturers for ensuring availability of good quality machine
tools required in auto sector indigenously.

Creation of (SAPs) Special Auto component Parks is recommended for promotion of experts in
the auto component sector.

Creation of virtual SEZ (Special Economic Zone) for auto component industry and Auto Parks to
promote exports with special emphasis on SMEs (Small and Medium Manufacturing
Enterprises)
BIBLIOGRAPHY
 BIBLIOGRAPHY

Peter Marshall, et al., (2000): Reported that impact of electronic commerce in the car retail
industry in Western Australia.

Xavier Richet, (2003): Presented the state of industrial restructuring of the car industry in Russia
and analyzed the strategy of the main actors in the sector.

Erdogan, et al., (2009): Investigated that the service quality perception was one of the key
determinants of customer satisfaction and repeat purchase. Quality issues in the car rental
industry however, had received less attention.

Camilla Bond, et al., (2010): Noted that the rapid rise of social media had captured the attention
of marketers and consumers on a global scale and together with rapidly changing
communications environment marketers now confront new challenges in terms of understanding
of consumer behavior and consumption patterns in the new millennium.

Shriram Shimpi, (2010):Studied that the consumer buying behavior for used cars in Pune city.
This study explored the relationship between variables which affect consumer buying behaviour
for used cars in Pune city. It also attempted to understand used car market in India. The sample
consists of 84 respondents and chi-square was used to test the hypotheses.

Ashutosh Nigam and Rajiv Kaushik, (2011): Determined that with stiffening of competition
among different car companies it become extremely important for marketers to focus on
branding of their products. Brand equity was important tool for associating a brand and
influencing customers in making purchase decisions for particular brand of hatchback cars.

Dharmaraj and Sivasubramanian, (2011): Decision to buy a product or service was the result of
interplay of many forces or stimuli. The researcher identified the factors contributing brand
preference and analyzed the factors identified on brand preference of passenger car.

Rouhollah and Veeri, (2011) Evaluated the effect of total quality management on quality culture
and performance and find out the relationship between quality culture and performance of the
Automobile Industry. The aim of this research was to carry out a theoretical study on the
determinants of Total Quality Management in the Iranian Automotive Industry.
Trisha Dowerah Baruah, (2012):Found in the research that with the world in the midst of a social
media revolution, it was more than obvious that social media like Facebook, twitter, orkut,
MySpace, Skype etc., were used extensively for the purpose ofcommunication.

Adithya, (2013): Observed that the customer perception and behaviour of car owners in
Bangalore City. The main aim of this research was to study the behaviour of consumers,
perception of product attributes and level of satisfaction and identified the factors influencing the
purchase of cars.

Bhuwan and Nisha, (2015): observed that the brand preference of customer towards four
wheelers. The researchers made a comparative study of Maruti Suzuki and other relative brands
in the same category.
APPENDIX
NAME:

AGE: PHONE NUMBER:

 Are you satisfied with the consumer buying behavior in automobile industry?
 Satisfied
 Dissatisfied

 Owned Brand?
 Maruthi
 Hyundai

 Occupation?
 Service
 Business

 Other
 You prefer car manufactured by Indian or Multinational?
 Indian
 Multinational

 Before buying car from her were you offered a test drive?
 Yes
 No
  Receive any intimation for service is due?
 Yes
 No

 Service centre maintain the delivery schedule?

 YES
 NO

 Change your service provider?

 YES
 NO

 Do you think you would be buying a car in the near future?

 YES
 NO

 Would you like to switch to another with other features?

 YES
 NO

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