Managerial

Economics Final
project
• Hemraj Bairwa MBA19106
• Himanshu Singasane MBA19149
• Mukund Choudhary MBA19121
• Ranjit Pradhan MBA19135
• Yukta Yadav MBA19163
Automobile
Industry
Changing Structure of Automobile Industry:
1947 – PAL incorporated first car PV

1950 – HML made their first vehicle

1959 – Government approved the tariff

commission
1950-61 – Companies like Tata Motors, M&M
came in to existence
1960-80 – With 7 firms oligopolistic nature of
industry
1983 –Joint Venture between Maruti Udyog

Limited and
1991 –Relaxation ofSuzuki
MRTP (Japan)
& FERA act, change in
licensing policy, import regulations
1995-02 –Speedy Growth because of multiple
factor
2019 – 4th largest sector in the world
contributes 7.5% to GDP

Assumption : i = average rate of inflation for that period

 Current Scenario
Production Sales
375,000 325000
325,000 275000
275,000
225000
225,000
175000
175,000
125000
125,000
75,000 75000

25,000 25000
Jan Feb Mar Apr May Jun Jul Aug Jan Feb Mar Apr May Jun Jul Aug
2018 326119 353582 365933 347068 358145 318571 369350 365042 2018 283851 275346 300722 298504 299183 256513 286842 287198
2019 363942 335903 334829 320259 315168 267600 310254 277432 2019 277888 272284 291806 247514 239347 225732 200790 196524

2018 2019 2018 2019

Factors affecting supply : Factor affecting Demand :

• As per the regulation automobile • Economic Slowdown
company have to stop BS4 vehicle in • Price increase
Apr 2020. • Uber and Ola
• Moving trend towards Electric
segment
• Increase in the price of raw material
Consumer Behaviour Analysis:
Purchase Decision Process
Problem Information Evolution of Purchase Post purchase
Recognition Search Alternatives Decision behaviour

Sampling & it’s characteristics Age Groups Percentage

Occupation Percentage Income Group Percentage
18-25 82.50%
Sample Size 25-35 7.80% Home Maker 0.70% 50-100K 17.70%

150 35-45

45-55
3.55%

4%
retired

Working
Professional
1.20%

21%
100-500K

500-1000K
29.10%

25%
55-65 1.70%

65+ 0.30% Student 77% 1000K+ 28.20%

Customer Backgrounds Factors Factors affecting buying of a Car

• Occupation (Job role) 50
• Family Size 40

Percentage
30
• Family Needs 20
• Life style 10
0
Disposable Family Family Size Life style
Income Needs
Series 1
Income class: Price of Car
• Honda hike the price in the
Country's per-capita income is range of 10000 to 35000K
estimated to have risen by 10% in all sector.
• Ford and Tata increases 1-
3% and 2.2% respectively
• Mahindra and Hyundai
also increasing the price of
Public all segment cars by 2%
Transport
Future expectation :
40.00% Preference of consumer
35.00%
• Future is electric vehicle 30.00%
• Lack of proper awareness 25.00%
20.00%
of electric vehicle 15.00%
Personal Car • Frequency of charging 10.00%
stations is very low 5.00%
0.00%
Petrol Diesle Petrol or Electric
Diesle

Car engine type

Cash Crunch
Bank unable to NBFC unable to Lower number of people
loan NBFC due to loan due to able to obtain
being risk averse. liquidity crunch. passenger vehicles

Series 1
Earlier trend 25000

20000 Funding
15000 down by
30% NBFC
other sources 10000
38.5%
5000
70%
0
Quarter 1 2018 Quarter 1 2019

Series 1
 Product Analysis
Market Share Growth Percentage
23.29
Series1

Maruti Suzuki
26% Hyundai
Honda
ma r uti H yunda i Tata H onda
5% 53% others
-10.13
17%

-19.61

-26.89
Chart Title
120% Though there is overall fall in
100%
demand but Honda is still
11% 11%
80%
18% showing positive growth.
26%
30% 51% 74%
Reason being there main
60%
products are premium
40%
52%
62% product which are
20% 39% 16% unaffected by income.
0% 10%
Maruti Hyundai Tata Honda

Hatch SUV Sedan

 References

• Indiatoday | Domestic automobile sales plunge 18.71 per cent in July 2019 (link :
https://www.indiatoday.in/auto/latest-auto-news/story/domestic-automobile-sales-fall-in-july-2019-1580362-2019-08-
13
)
• Researchgate | Consumer Buying Behaviour of Cars in India - A Survey (link :
https://www.researchgate.net/publication/327070602_Consumer_Buying_Behaviour_of_Cars_in_India_-_A_Survey)
• Arseam | RESEARCH ANALYSIS IN CONSUMER BEHAVIOUR OF AUTOMOBILE PASSENGER CAR CUSTOMERS IN
COIMBATORE (link:
https://arseam.com/sites/default/files/published-papers/paper-4%20Issue-1%20Full%20paper%20%20%20page%20%2
028-36%20%20Dr.%20G.SAKTHIVEL%20%20Jan-2017.pdf
)
• Indian Brand Equity annual automobile report Report (link:
https://www.ibef.org/download/Automobiles-July-2019.pdf )
• Financial Express (link:
https://www.financialexpress.com/auto/car-news/top-10-carmakers-in-india-and-their-market-share-maruti-suzuki-ow
ns-half-of-the-indian-market/1129193/
)
• Economic times | Complete sale auto analysis April 2019 (link:
https://auto.economictimes.indiatimes.com/news/industry/complete-sales-auto-analysis-april-2019-all-segment-leade
rs-in-negative-zone/69163909
)
Thank You