EXECUTIVE SUMMARY

TOPIC: “Retail Coverage”

The report is an earnest endeavor made to understand the present market scenario of FMCG

in Shimla region and simultaneously ascertain visibility and availability of ITC products. I

was required to conduct a market study to see the coverage by ITC products and bring out

the potential and loyal retailers so that the company could maintain the market leadership in

the existing business scenario in the FMCG market.

During the course of study I visited around 200 retail stores and conducted personal

interviews with the retailers to find out major competitors of ITC. I also used observation

technique to ascertain penetration of the ITC products and the market potential for the new

products. Also interviews were conducted to determine major competitors in FMCG.

1

OBJECTIVES OF THE STUDYThe objective of the summer training is to ensure that I as a management student develop in

real life experience for handling the specific project and also to develop all understanding of

the various management activities related to the area of my specialization. This training gives

us a substantial corporate exposure and also serves as a useful tool of interaction with the

corporate sector.

The project has been derived from the field of Marketing and is entitled as “Retail coverage

of ITC’s products”.

The main objective of the study is:

To know the retail coverage of ITC products.

Identify the major competitor of ITC FMCG products in the

market.

To check the competitor’s market strategies.

Estimate market potential for ITC FMCG products.

2

PREAFACE

Today almost all the major co-operation is actively marketing their

product beyond their original homeland borders. So, companies must rethink

their marketing strategies instead of continuing with their existing strategy.

Today company work in a war zone of rapidly changing competitive

environment technological advances, changing govt. politics diminishing

customer loyalty and so on.

Now a day world of stiff competition, the companies with existing

marketing strategies need to be changed in a manner so as to cope up with its

rapidly changing competitive environment, technical up gradation, varying

govt. policies, rules and regulation during customer loyalty etc. in the last few

years the information need to conduct a business has grown rapidly.

So, in this context, the Maruti Suzuki is also facing a stiff competition in

the market from its competitors and for this the company is gearing up

themselves to face the competition and conduct a good business taking

successful business decision for more accuracy and timeliness.

As the part of the partial fulfillment of the MBA course a project has been

incorporated in the curriculum during which a study to be under taken in an

organization mainly to take out the newly acquired knowledge and skill from an

actual work situation and take book and classroom teaching give us through

back ground of different functional area devoid of practical experience to how

those area to be administered and managed respectively. This report has given

up an opportunity to gain an inside into a practical applicability of management

concept and theory, learning faster and developed better ability to analysis

3

problems and in decision that contribute significantly for better use of resource

available to the management.

With this view to understand the concept, I have undertaken a project

study in Maruti Suzuki, which has equipped me to prepare a report with a

proper solution of the problem face by the organization.

This area of work has chosen by me as this had all the ingredient of

marketing research and other aspect of marketing as well the report offer a

Glimpse of various stage at project work in order to serve purpose of the study

in systematic manner and hope that the findings and recommendation will go

along way in helping in organization.

4

Table Contents

Executive Summary: Page No.

(i) Introduction 4

(ii) Aims & objective 5

(iii) Methodology 6

(iv) Analysis 6 - 7

(v) Conclusions 7 - 8

(vi) Recommendations 8 - 9

Part : I

An Overview of the Company

(i) Introduction 11 - 27

(ii) History of the Organisation and products 28 - 47

(iii) Special future 48 - 58

(v) Competitors details 59- 63

Part : II

Project Overview

(i) Introduction 65 - 77

(ii) Objective 78 - 80

(iii) Methodology 81 - 83

(iv) Analysis 84 - 105

(v) Conclusions 106 - 107

(vi) Limitations 108

(vii) Recommendations 109 - 110

Part : III

(i) Bibliography 111

(ii) Questionnaire 112 - 116

5

EXECUTIVE SUMMARY

(i) Introduction

Topic

Study on consumer behavior of car with special reference to Maruti Suzuki in

Tezpur.

Organization

Isum Motors Pvt Ltd.

Authorized Dealer, Maruti Suzuki.

Location Of Study

Tezpur

Institutional Guide

Anjan Baruah

Faculty member, Third eye College.

Organizational Guide

Amitab Dey

Sales Officer Isum Motors Pvt Ltd.

Duration

2 Months

6

(ii) Aims and Objectives

Primary :

To make a study on consumer buying behavior of car with special

reference to Maruti Suzuki in Tezpur area.

Secondary :

1. To study their satisfaction level of customers of different cars available in

Tezpur.

2. To study the importance of various attribute which effect the purchasing

decision of customers in regard of cars.

3. To study the awareness level of different cars in Tezpur.

4. To study the importance of dealer and their influence in marketing/sale

for cars in Tezpur.

5. To study consumers buying behaviours.

6. To find out the expectation of the existing possessing and prospective

customers of the company.

7. To study the impact of media on the customers.

8. To study the satisfaction level of the customers on overall performance

and after sale service of their existing cars.

9. To study different promotional scheme they expect for purchasing a new

car.

7

(iii) Methodology

(i) Preliminary study.

(ii) Data collection

(iii) Questionnaire Design.

(iv) Sample size

(v) Analysis

(vi) Scope and Limitation.

(iv) Analysis

The project was undertaken to study the consumer buying behavior of

motor car with special reference to Maruti Suzuki in Tezpur.

Major findings are: -

1. Demographic profile i.e. Age, Occupation and monthly income of the

customer.

2. Regarding the awareness of different brands of motor cars all

respondents are well aware.

3. According to the most of the respondent the T.V. ads was the best

media in building awareness followed by the newspaper, friends,

colleague, majoring & family members.

4. Regarding importance of attribute before purchasing the motor car in

over all motor cars most of the customer gave importance on brand

image of the company. In case of Hyundai motorcars most of the

8

customer gave importance or fuel efficiency and look on style of the

car.

5. Regarding source of finance most of the customers gave important on

loan and installment facility.

6. Most of the customer gave most importance on high engine power.

(v) Conslusion

This study was conducted to find out the consumer buying behaviour of

motorcars in special reference to the Maruti Suzuki in Tezpur. The findings and

analysis revealed many advantages as well as disadvantages for the Maruti India

Ltd.

Though the Maruti Suzuki is the faster growing company and leading in

the market facing a stiff competition from Hyundai and Tata motors in the

Tezpur.

It has been observed that Maruti Suzuki adopted many promotional

strategies and company’s marketing channel is also satisfactory.

Now a days people are most aware about after sales service. The dealers

also expect Maruti motorcars has overcome this problem and facilities should

be improved for meeting the after sales service requirement effectively.

The majority of customers expect loan or installment facilities. The

Maruti Suzuki has joined hand with State Bank Of India, and many Private

Banks to promote this facilities.

As most of the existing and prospective customers adults, Maruti should

introduces stylish Motor cars which compete its competitors product.

But Maruti to meet the expectations of new generation people who are the

prospect, or customers has recently introduce Ritz, SX4, AStar hoping to fulfill

the demand of the new generation.

9

As this study was conducted for educational purpose with the aim to give

necessary information to the organization, any mistake by the researchers

should be overlooked considering his inexperience in the field of marketing

research.

(vi) Recommendations

Based on the findings drawn from the project’s analysis, certain

recommendation need to be made as regards to the future course of action for

Maruti Suzuki, which can go a long way in improving the Brand Awareness of

the Company in the Motorcars market. The main recommendations are:

1. Maruti should continue with its range of innovative products. At the same

time try to add value to its existing products so that it can cater to the

present day requirements. As the study reveals that majority of customers

are aged 20 – 40 years the needs and wants should be kept in mind while

designing new products.

2. There should be proper synchronization between order placed an

delivery. The distribution channel should be enhanced and the models

should be readily available in the market.

3. As the buying decision of the buyer has influenced by himself, company

should target them through demonstration and advertisement.

4. As the market for the financial institutions are increasing, the company

should target them through demonstration and advertisement.

10

5. Facilities should be provide to the dealers so that they can extend them to

the customers while purchasing this brand.

6. Increase in sales promotion budgets to develop a point of purchase

display and to participate to a greater extent in Trade shows and similar

kind of shows and this will motivate the non-users to try out the products.

7. The company can sponsor local cultural programmes like Bihu festival of

Assam holding Bihu competition at least once in a year and for attracting

the youth it may sponsor sports events also.

8. The company can make charitable donation to different organizations. It

can extend their helping hand to the people hotted by natural havoc like

flood, draught, earthquake etc. to win the hearts of the mass people which

will build a good image of the Company among them.

9. As the market for the financial institutions are increasing, the company

should come up with various schemes, which will induce them to

influence the customer for the product. This includes offering various

gifts, packages and financial incentives like higher commission as

compared to other four-wheeler companies.

10.Incentives and financial benefits provided to the dealers should be

maximized to maintain their level of satisfaction and motivation.

11

Part 1

An Overview of the company

12

INTRODUCTION

About the company:

Maruti Suzuki is one of India's leading automobile manufacturers and the

market leader in the car segment, both in terms of volume of vehicles sold and

revenue earned. Until recently, 18.28% of the company was owned by the

Indian government, and 54.2% by Suzuki of Japan. The Indian government held

an initial public offering of 25% of the company in June 2003. As of 10 May

2007, Govt. of India sold its complete share to Indian financial institutions.

With this, Govt. of India no longer has stake in Maruti Udyog.

Maruti Udyog Limited (MUL) was established in February 1981, though the

actual production commenced in 1983 with the Maruti 800, based on the Suzuki

Alto kei car which at the time was the only modern car available in India, its'

only competitors- the Hindustan Ambassador and Premier Padmini were both

around 25 years out of date at that point. Through 2004, Maruti Suzuki has

produced over 5 Million vehicles. Maruti Suzukis are sold in India and various

several other countries, depending upon export orders. Models similar to Maruti

Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor

Corporation and manufactured in Pakistan and other South Asian countries.

The company annually exports more than 50,000 cars and has an extremely

large domestic market in India selling over 730,000 cars annually. Maruti 800,

till 2004, was the India's largest selling compact car ever since it was launched

in 1983. More than a million units of this car have been sold worldwide so far.

Currently, Maruti Suzuki Alto tops the sales charts and Maruti Suzuki Swift is

the largest selling in A2 segment.

13

Due to the large number of Maruti 800s sold in the Indian market, the term

"Maruti" is commonly used to refer to this compact car model. Till recently the

term "Maruti", in popular Indian culture, in India Hindu's lord Hanuman is

known as "maruti", was associated to the Maruti 800 model.

Maruti Suzuki has been the leader of the Indian car market for over two

decades.

Its manufacturing facilities are located at two facilities Gurgaon and Manesar

south of Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of

350,000 units per annum. The Manesar facilities, launched in February 2007

comprise a vehicle assembly plant with a capacity of 100,000 units per year and

a Diesel Engine plant with an annual capacity of 100,000 engines and

transmissions. Manesar and Gurgaon facilities have a combined capability to

produce over 700,000 units annually.

More than half the cars sold in India are Maruti Suzuki cars. The company is a

subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of

Maruti Suzuki. The rest is owned by the public and financial institutions. It is

listed on the Bombay Stock Exchange and National Stock Exchange in India.

During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were

exported. In all, over six million Maruti Suzuki cars are on Indian roads since

the first car was rolled out on 14 December 1983.

Pressure started mounting on Indira and Sanjay Gandhi to share the details of

the progress on the Maruti Project. Since country's resources were made

available by mother to her son's pet project. A delegation of Indian technocrats

was assigned to hunt a collaborator for the project. Initial rounds of discussion

were held with the giants of the automobile industry in Japan including Toyota,

Nissan and Honda. Suzuki Motor Corporation was at that time a small player in

14

the four wheeler automobile sector and had major share in the two wheeler

segment. Suzuki's bid was considered negligible.

In the initial rounds of discussion the giants had their bosses present and in the

later rounds related to the technical discussions executives of these automobile

giants were present. Osamu Suzuki, Chairman and CEO of the company

ensured that he was present in all the rounds of discussion. Osamu in an article

writes that it subtly massaged their (Indian delegation) egos and also convinced

them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps

to ensure the government about its sincerity on the project. Suzuki in return

received a lot of help from the government in such matters as import clearances

for manufacturing equipment (against the wishes of the Indian machine tool

industry then and its own socialistic ideology), land purchase at government

prices for setting up the factory Gurgaon and reduced or removal of excise

tariffs. This helped Suzuki conscientiously nurse Maruti Suzuki through its

infancy to become one of its flagship ventures.

Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-

Star, Suzuki's fifth global car model, was designed and is made only in India.

Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is

also Suzuki's leading research and development arm outside Japan

Relationship between the Government of India, under the United Front (India)

coalition and Suzuki Motor Corporation over the joint venture was a point of

heated debate in the Indian media till Suzuki Motor Corporation gained the

controlling stake. This highly profitable joint venture that had a near

monopolistic trade in the Indian automobile market and the nature of the

partnership built up till then was the underlying reason for most issues. The

success of the joint venture led Suzuki to increase its equity from 26% to 40%

in 1987, and further to 50% in 1992. In 1982 both the venture partners had

15

entered into an agreement to nominate their candidate for the post of Managing

Director and every Managing Director will have a tenure of five years.

Initially R.C.Bhargava, was the managing director of the company since the

inception of the joint venture. Till today he is regarded as instrumental for the

success of Maruti Suzuki. Joining in 1982 he held several key positions in the

company before heading the company as Managing Director. Currently he is on

the Board of Directors. After completing his five year tenure, Mr. Bhargava

later assumed the office of Part-Time Chairman. The Government nominated

Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr.

Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the

Public sector undertaking Bharat Heavy Electricals Limited as General

Manager. Later in 1987 he was promoted as Chief General Manager, 1988 as

Director, Productions and Projects, 1989 Director, Materials and in 1993 as

Joint Managing Director.

Suzuki Motor Corporation didn't attend the Annual General Meeting of the

Board with the reason of it being called on a short notice. Later Suzuki Motor

Corporation went on record to state that Mr. Bhaskarudu was "incompetent" and

wanted someone else. However, the Ministry of Industries, Government of

India refuted the charges. Media stated from the Maruti Suzuki sources that

Bhaskarudu was interested to indigenise most of components for the models

including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu

was a proxy for the Government and would not let it increase its stake in the

venture. If Maruti Suzuki would have been able to indigenise gear boxes then

Maruti Suzuki would have been able to manufacture all the models without the

technical assistance from Suzuki. Till today the issue of localization of gear

boxes is highlighted in the press.

16

The relation strained when Suzuki Motor Corporation moved to Delhi High

Court to bring a stay order against the appointment of Mr. Bhaskarudu. The

issue was resolved in an out-of-court settlement and both the parties agreed that

R S S L N Bhaskarudu would serve up to 31 December 1999, and from 1

January 2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited

would assume charges as the Managing Director. Many politicians believed,

and had stated in parliament that the Suzuki Motor Corporation is unwilling to

localize manufacturing and reduce imports. This remains true, even today the

gear boxes are still imported from Japan and are assembled at the Gurgaon

facility.

For most of its history, Maruti Udyog Limited had relatively few problems with

its labour force. Its emphasis of a Japanese work culture and the modern

manufacturing process, first instituted in Japan in the 1970s, was accepted by

the workforce of the company without any difficulty. But with the change in

management in 1997, when it became predominantly government controlled for

a while, and the conflict between the United Front Government and Suzuki may

have been the cause of unrest among employees. A major row broke out in

September 2000 when employees of Maruti Udyog Ltd (MUL) went on an

indefinite strike, demanding among other things, revision of the incentive

scheme offered and implementation of a pension scheme. Employees struck

work for six hours in October 2000, irked over the suspension of nine

employees, going on a six-hour tools-down strike at its Gurgaon plant,

demanding revision of the incentive-linked pay and threatened to fast to death if

the suspended employees were not reinstated. About this time, the NDA

government, following a disinvestments policy, proposed to sell part of its stake

in Maruti Suzuki in a public offering. The Staff union opposed this sell-off plan

on the grounds that the company will lose a major business advantage of being

subsidised by the Government.

17

The standoff with the management continued to December with a proposal by

the management to end the two-month long agitation rejected with a demand for

reinstatement of 92 dismissed workers, with four MUL employees going on a

fast-unto-death. In December the company's shareholders met in New Delhi in

an AGM that lasted 30 minutes. At the same time around 1500 plant workers

from the MUL's Gurgaon facility were agitating outside the company's

corporate office demanding commencement of production linked incentives, a

better pension scheme and other benefits. The management has refused to pass

on the benefits citing increased competition and lower margins.

Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star,

Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara. Swift, Swift

DZire, A-star and SX4 are maufactured in Manesar, Grand Vitara is imported

from Japan as a completely built unit (CBU), remaining all models are

manufactured in Maruti Suzuki's Gurgaon Plant.

Suzuki Motor Corporation, the parent company, is a global leader in mini and

compact cars for three decades. Suzuki’s technical superiority lies in its ability

to pack power and performance into a compact, lightweight engine that is clean

and fuel efficient.

Nearly 75,000 people are employed directly by Maruti Suzuki and its partners.It

has been rated first in customer satisfaction among all car makers in India from

1999 to 2009 by J D Power Asia Pacific.

Pressure started mounting on Indira and Sanjay Gandhi to share the details of

the progress on the Maruti Project. Since country's resources were made

available by mother to her son's pet project. A delegation of Indian technocrats

was assigned to hunt a collaborator for the project. Initial rounds of discussion

18

were held with the giants of the automobile industry in Japan including Toyota,

Nissan and Honda. Suzuki Motor Corporation was at that time a small player in

the four wheeler automobile sector and had major share in the two wheeler

segment. Suzuki's bid was considered negligible.

Maruti Suzuki has two state-of-the-art manufacturing facilities in India.[12]. Both

manufacturing facilities have a combined production capacity of 1,000,000

vehicles annually.

The Gurgaon Manufacturing Facility has three fully integrated manufacturing

plants and is spread over 300 acres. All three plants have a installed capacity of

350,000 vehicles annually but productivity improvements have enabled it to

manufacture 700,000 vehicles annually. The Gurgaon facilities also

manufacture 240,000 K-Series engines annually. The entire facility is equipped

with more than 150 robots, out of which 71 have been developed in-house. The

Gurgaon Facilities manufactures the 800, Alto, WagonR, Estilo, Omni , Gypsy,

Swift and Eeco.

The Manesar Manufacturing Plant was inaugurated in February 2007 and is

spread over 600 acres. Initially it had a production capacity of 100,000 vehicles

annually but this was increased to 300,000 vehicles annually in October 2008.

The Manesar Plant produces the A-star, Swift, Swift DZire and SX4.

Four Wheeler Industry

Approximately 25 of Benz's vehicles were built before 1893, when his first

four-wheeler was introduced. They were powered with four-stroke engines of

his own design. Emile Roger of France, already producing Benz engines under

license, now added the Benz automobile to his line of products. Because France

was more open to the early automobiles, more were built and sold in France

through Roger than Benz sold in Germany. From 1890 to 1895 Daimler and his

19

assistant, Maybach, either at the Daimler works or in the Hotel Hermann, where

they set up shop after falling out with their backers, built about 30 vehicles.

Benz and Daimler seem to have been unaware of each other's early work and

worked independently.

In 1890, Emile Levassor and Armand Peugeot of France began producing

vehicles with Daimler engines, and so laid the foundation of the motor industry

in France. George Selden of Rochester, New York, who applied for a patent on

an automobile in 1879, supposedly designed the first American car with a

gasoline internal combustion engine in 1877. In Britain there had been several

attempts to build steam cars with varying degrees of success with Thomas

Rickett even attempting a production run in 1860. Santler from Malvern is

recognized by the Veteran Car Club of Great Britain as having made the first

petrol-powered car in the country in 1894 followed by Frederick William

Lanchester in 1895 but these were both one-offs.[The first production vehicles

came from the Daimler Motor Company, founded by Harry J. Lawson in 1896,

and making their first cars in 1897.

In 1892, Rudolf Diesel got a patent for a "New Rational Combustion Engine".

In 1897 he built the first Diesel Engine. In 1895, Selden was granted a United

States patent(U.S. Patent 549,160 ) for a two-stroke automobile engine, which

hinderd more than encouraged development of autos in the United States.

Steam, electric, and gasoline powered autos competed for decades, with

gasoline internal combustion engines achieving dominance in the 1910s.

Every other day a new model of car is being launched in the country, how many

times you must have wished to change that old car of yours and buy a hot set of

wheels. However as you come back to earth, bitter reality bites you; realization

dawns in that you don't have such a big amount of money to invest in a new car.

Don't worry as several banks and financial institution have donned the role of

20

new age Santa Claus to make sure that your dream comes true. Today car loans

are not only available for brand new cars but they are also available for used

cars.

In this section we will try to provide you with an insight into automobile

financing so read on. State Bank of India which is one of the largest

nationalized banks in the country offers you the following advantages

Longer repayment periods up to 7 years

Low processing

No advance EMI along with the down payment effectively increasing the

amount of loan

Interest is calculated on the reducing balance method meaning every time

you repay an amount the interest is calculated on the remaining amount

and not on the one which is out standing at the beginning of the year.

The company gives a loan which is up to 2.5 times of one's net annual income,

with the minimum income cap of the applicant being 75000 rupees per annum.

The company sanctions loans for all new cars and for second hand cars which

are not more than 5 years old. The bank also provides loans to people who don't

have an account with the bank provided they furnish address proof, identity

proof and other relevant documents. For more details click http://www.sbi.co.in

UTI bank offers loans covering 85% of the cost of the vehicle plus registration

and insurance or 20 times the net monthly salary and you can repay the loan

with in a maximum period of 5 years or 60 monthly equated installments.

Car Insurance gives the necessary cover if one meets with some unforeseen

incident or an accident. Car insurance offers a number of benefits. A no claim

bonus is given to the policy holder if no claims are made. It is transferable as it

can be used even if one is changing the auto insurance company.

21

Used car owners shouldn't feel that they are sidelined. Used car insurances help

the second hand car owners greatly. Those who can't afford the luxury cars and

their high prices are opting for used cars.

The Indian automobile industry is the tenth largest in the world with an annual

production of approximately 2 million units. Indian auto industry, promises to

become the major automotive industry in the upcoming years and the industry

experts are hopeful that it will touch 10 million units mark.

Indian automobile industry is involved in design, development, manufacture,

marketing, and sale of motor vehicles. There are a number of global automotive

giants that are upbeat about the expansion plans and collaboration with

domestic companies to produce automobiles in India.

The major car manufacturers in India are Maruti Udyog, Hyundai Motors India

Ltd., General Motors India Pvt. Ltd., Honda Siel Cars India Ltd., Toyota

Kirloskar Motor Ltd., Hindustan Motors etc.

The two-wheeler manufacturers in India are Honda Motorcycle & Scooter India

(Pvt.) Ltd., TVS, Hero Honda, Yamaha, Bajaj, etc. The heavy motors including

buses, trucks, auto rickshaws and multi-utility vehicles are manufactured by

Tata-Telco, Eicher Motors, Bajaj, Mahindra and Mahindra, etc.

Quick Facts:

First Indian to own a car in India was Jamshedji Tata.

First woman to drive a car in India was Mrs. Suzanne RD Tata.

The passenger car and motorcycle segment in the Indian auto industry is

growing by 8-9 percent.

Commercial vehicle will grow by 5.2 per cent.

22

The first automobile in India was rolled in 1897 in Bombay.

India is a potential emerging auto market.

Motorcycles contribute 80% of the two-wheeler industry.

Unlike the USA, the Indian passenger vehicle market is dominated by

cars (79%).

India is the largest two-wheeler manufacturer in the world.

India's motorcycle segment will grow by 8-9 percent in the coming years.

11. India is the fifth largest commercial vehicle manufacturer in the

world. 12. India has the number one global motorcycle manufacturer. 13.

In Asia, India is the fourth largest car market.

The new chapter in the automobile industry is that of used cars. The massive

demand of used cars indicates that cars are becoming increasingly popular.

Those who can't afford the luxury cars and their high prices are opting for used

cars. In today's time, customers are conscious and diligently investing on car

dealership. Car buyers are investing heavily a lot of time for both to sell a car

and buy car. There's also a number of car websites that have offering detailed

information on new car prices, used cars, car reviews, Chevrolet cars, jaguar

cars and luxury cars.

At present major Indian, European, Korean, Japanese automobile companies are

holding significant market shares. In commercial vehicle, Tata Motors

dominates over 60% of the Indian commercial vehicle market. Tata Motors is

the largest medium and heavy commercial vehicle manufacturer.

Among the two-wheeler segment, including scooters and mopeds- motorcycles

have- major share in the market. Hero Honda contributes 50% motorcycles to

the market in which Honda holds 46% share in scooter and TVS makes 82% of

the mopeds in the country. In the three wheeler industry in India, Piaggio holds

23

40% of the market share. Bajaj is the leader by making 68% of the three-

wheelers.

Car manufacturers in India dominate the passenger vehicle market by 79%.

Maruti Suzuki is the largest car producer in India and has 52% share in

passenger cars and is a complete monopoly in multi purpose vehicles. In utility

vehicles Mahindra holds 42% share. Hyundai and Tata Motors is the second and

third car producer in India.

Ransom E. Olds.

The large-scale, production-line manufacturing of affordable automobiles was

debuted by Ransom Olds at his Oldsmobile factory in 1902. This assembly line

concept was then greatly expanded by Henry Ford in the 1910s. Development

of automotive technology was rapid, due in part to the hundreds of small

manufacturers competing to gain the world's attention. Key developments

included electric ignition and the electric self-starter (both by Charles Kettering,

for the Cadillac Motor Company in 1910-1911), independent suspension, and

four-wheel brakes.

Although various pistonless rotary engine designs have attempted to compete

with the conventional piston and crankshaft design, only Mazda's version of the

Wankel engine has had more than very limited success.

Since the 1920s, nearly all cars have been mass-produced to meet market needs,

so marketing plans have often heavily influenced automobile design. It was

Alfred P. Sloan who established the idea of different makes of cars produced by

one company, so buyers could "move up" as their fortunes improved. The

24

makes shared parts with one another so larger production volume resulted in

lower costs for each price range. For example, in the 1950s, Chevrolet shared

hood, doors, roof, and windows with Pontiac; the LaSalle of the 1930s, sold by

Cadillac, used cheaper mechanical parts made by the Oldsmobile division.

25

Cars by Price Range

Under Rs. 3 Lakhs

Maruti 800 , Alto, Omni

Reva

Rs. 3-5 Lakhs

Ambassador Fiat Palio Hyundai Santro , Getz Chevrolet Opel Corsa Maruti Zen , Wagon R, Versa, Esteem, Gypsy Ford Icon & Fiesta

Tata Indica , Indigo XL, Indigo Marina

Rs. 5-10 Lakhs

Chevrolet Swing, Optra Magnum, Tavera Hyundai Accent, Elantra Mahindra Scorpio Maruti Baleno Toyota Innova Tata Safari Mitsubishi Lancer , Mitsubishi Cedia Honda City ZX Mahindra Bolero

Hyundai Sonata Embera

Rs. 10-15 Lakhs

Toyota Corolla Ford Mondeo & Endeavour Chevrolet Forester Skoda Octavia & Combi Honda Civic

Rs. 15-30 Lakh Honda CR-V Maruti Suzuki Grand Vitara Terracan & Tucson Mitsubishi Pajero Audi A4 Opel Vectra

26

Honda Accord Mercedes C Class

Toyota Camry

Rs. 30-90 Lakhs

Audi A6, A8 & Audi TT BMW X5, 5 Series & 7 Series Mercedes E Class, S Class, SLK, SL & CLS-Class Porsche Boxster, Cayenne, 911 Carrera & Cayman S

Toyota Prado

Above Rs. 1 Crore

Bentley Arnage, Bentley Continental GT & Flying Spur

Rolls Royce Phantom

Maybach

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The following links gives the complete picture of Indian Auto Industry:

Automobile History

The first auto vehicle rolled out in India at the end of 19th century. Today, India is the the 2nd largest tractor and 5th largest commercial vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles a year is now the largest motorcycle manufacturer in the world.

Industry Investment

On the cost front, OEMs eyeing India in a big way to source products and components at significant discounts to home market. On the revenue side, OEMs are active in the booming passenger car market in India.

Industry Growth

The passenger car and motorcycle segment in Indian auto market is growing by 8-9 per cent. The two-wheeler segment will clock 11.5% rise by 2007. Commercial vehicle to grow by 5.2 per cent.

Vehicle Production

India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-wheelers manufacturer. Hero Honda is the leading 2-wheelers manufacturer.

Auto Export

Passenger vehicle exports have grown over five times and two-wheeler exports have reached more than double. Exports of auto components, whose manufacturing costs are 30-40 per cent lower than in the West, have grown at 25% a year between 2000 to 2005.

Auto Companies

Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors India is the second largest player in passenger car market. Tata Motors is the fifth largest medium & heavy commercial vehicle manufacturer in the world.

Vehicle DistributionKnow about the number of vehicles registered as Transport or Non-Transport in the Indian states and Union Territories.

Associations Get all the contact details of Automobile Association of Upper India (AAUI), Automotive Research Association of India (ARAI), Automobile Association of Southern India (AASI), Automotive Component Manufacturers Association of India

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(ACMA) and more

Sales and Service Network

Maruti Suzuki is one of the companies in India which has unparalleled sales and

service network. As of 2009 it currently has 681 dealerships across 454 cities.

To ensure the vehicles sold by them are serviced properly, Maruti Suzuki has

779 dealer workshops, 1,945 Maruti Authorized Service Stations and 30 Express

Service Stations on 30 National Highways across 1,314 cities in India.

Service is a major revenue generator of the company. Most of the service

stations are managed on franchise basis, where Maruti Suzuki trains the local

staff. Other automobile companies have not been able to match this benchmark

set by Maruti Suzuki. The Express Service stations help many stranded vehicles

on the highways by sending across their repair man to the vehicle.

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Historical timeline

1909 – Suzuki Loom Works founded in Hamamatsu, Shizuoka

Prefecture, by Mr. Michio Suzuki.

1920 – Reorganized, incorporated, and capitalized at 500,000 yen as

Suzuki Loom Manufacturing Co. with Michio Suzuki as president.

1952 – 'Power Free' motorized bicycle marketed.

1954 – Company name changed to Suzuki Motor Co.,Ltd.

1955 – Lightweight car Suzuki Suzulight (360 cc, 2-stroke) front wheel

drive, marketed helping to usher in Japan's light-weight car age.

1961 – Suzuki Loom Manufacturing Co. established by separating the

loom machine division from the motor works and lightweight truck

'Suzulight Carry' marketed.

1962 – Suzuki won the 50 cc class championship at the Isle of Man TT

1963 – U.S. Suzuki Motor Corp., a direct sales subsidiary, opened in Los

Angeles.

1965 – 'D55'(5.5 hp, 2-stroke) outboard motor marketed and makes early

inroads and Fronte 800 marketed.

1967 – Thai Suzuki Motor Co., Ltd. established as a local assembly plant.

1968 – Carry full-cab van marketed.

1970 – LJ-Series 4X4 marketed.

1971 – Ts185 Enduro marketed.

1971 – GT750 motorcycle marketed.

1973 – Suzuki Canada Ltd., opened in Ontario, Canada.

1974 – P.T. Suzuki Indonesia Manufacturing established in Jakarta,

Indonesia, entry into medical equipment field by marketing the Suzuki

Motor Chair Z600 motorized wheelchair, expansion into the housing field

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initiated with Suzuki Home marketing two models of prefab 'Mini-House'

and three types of storage sheds.

1975 – Antonio Suzuki Corp., a joint venture for knockdown production

and sales, established in Manila, the Philippines.

1976 – GS-Series motorcycles marketed.

1977 – LJ80 4x4 vehicle marketed and exports of GS1000H motorcycle

began.

1979 – Alto marketed.

1979 – SC100 marketed in the UK.

1980 – Suzuki Australia Pty. Ltd. established in Sydney, Australia and

entry into general purpose engine field by marketing three electric power

generator models.

1981 – Business ties with General Motors (U.S.) and Isuzu Motors, Ltd.

(Japan) signed.

1982 – 4X4 production began at PAK Suzuki Motor Co., Ltd. in Karachi,

Pakistan and won maker championship for 7th consecutive year at the

World Road Race Grand Prix 500.

1982 – SC100 Discontinued in favour of Alto.

1983 – Enters into a partnership with Maruti Udyog Ltd. to produce cars

in India.

1983 – Cultus/Swift 1.0-liter passenger car marketed and 4X4 production

started at Maruti Udyog Ltd. in New Delhi, India.

1984 – Suzuki New Zealand Ltd. established in Wanganui, New Zealand

and began export of Chevrolet Sprint to the United States. Car production

technical assistance contract signed with China National Aerotechnology

Import & Export Beijing Corporation. Operation of Suzuki Motor GmbH

Deutschland began in Heppenheim, Germany.

1985 – SUZUKI of AMERICA AUTOMOTIVE CORP. established with

the introduction of the Samurai, and the GSX-R750 motorcycle with an

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oil-cooled engine marketed and scooter production started at Avello S.A.

of Spain. Agreement with Santana Motors to produce Suzuki cars in their

Linares factory in Andalusia, Spain.

1986 – American Suzuki Motor Corp. is formed merging U.S. Suzuki

Motor Corp and Suzuki of America Automotive Corp.

1987 – Cultus/Swift production began in Colombia and total aggregate

car exports reached 2 million units.

1988 – Escudo/Vitara 4x4 marketed and total aggregate car production

reached 10 million units..

1989 – CAMI Automotive Inc. established and began operation in

Ontario, Canada. Swift GT/GLX and Sidekick sales begin in the United

States.

1990 – Corporate name changed to Suzuki Motor Corporation.

1991 – Car production started in Korea through technical ties with

Daewoo Shipbuilding & Heavy Machinery Ltd and Cappuccino 2-seater

marketed.

1993 – Passenger car production/sales began at Suzuki Egypt S.A.E.,

opening ceremony for new car production plant held at Magyar Suzuki

Corp. in Esztergom, Hungary and Wagon R passenger car marketed.

1994 – Maruti Udyog Ltd. of India total aggregate car production reached

1 million units.

1995 – Total aggregate motorcycle export reached 20 million units

1996 – Start of production in Vietnam (Motorcycles and automobiles)

1997 – Achieved 10 million cumulative automobile sales for overseas

market and 4-stroke outboard motors win the Innovation Award at The

International Marine Trade Exhibit and Conference (IMTEC) in Chicago.

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1998 – Suzuki and General Motors form strategic alliance and Chongqing

Chang'an Suzuki Automobile Co., Ltd. received official approval from

the Chinese government for production of passenger cars.

1999 – Aggregate motorcycle production reaches 40 million units and

Jiangxi Changhe Suzuki Automobile Co., Ltd. receives official approval

from the Chinese government for production of commercial vehicles.

2000 – The company commemorates the 80th anniversary, aggregate car

production at Kosai Plant reaches 10 million units and Suzuki production

starts at General Motors de Argentina S.A.

2001 – Aggregate Launch of Suzuki Liana/Aerio. worldwide sales of SJ-

Series reaches 2 million units, production of Alto reaches 4 million units

and Suzuki achieves "Zero-Level" target of landfill waste

2002 – Achieved 30 million cumulative automobile sales for worldwide

market and America's #1 warranty: 100,000/7-year powertrain limited

warranty.

2003 – Suzuki is #1 in Kei car sales for the 30th consecutive year and

Twin, the first hybrid Kei car in Japan, marketed.

2004 – Aggregate domestic automobile sales reach 15 million units.

2005 – Swift was awarded the 2006 RJC Car of the Year.

2006 – New XL7 is marketed particularly to the North American market;

and GM divested, selling 92.36 million shares and reducing their stake to

3%.

2008 – Suzuki introduces its first production fuel-injected motocross

bike; and GM divested its remaining 3% stake in Suzuki.

2009 – Suzuki introduces its first production pickup truck called the

Equator. Volkswagen AG and Suzuki reach a common understanding to

establish a close long-term strategic partnership

2010 – Volkswagen AG completed the purchase of 19.9% of Suzuki's

outstanding shares.

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Maruti Poducts

1. 800 (Launched 1982)

2. Omni (Launched 1984)

3. Gypsy (Launched 1985)

4. WagonR (Launched 2001)

5. Alto (Launched 2000)

6. Swift (Launched 2005)

7. Estilo (Launched 2006)

8. SX4 (Launched 2007)

9. Swift DZire (Launched 2008)

10.A-star (Launched 2008)

11.Ritz (Launched 2009)

12.Eeco (Launched 2010)

Discontinued Car Models

1000 (1990–1994)

Zen (1993–2006)

Esteem (1994–2008)

Baleno (1999–2007)

Versa (2001–2010)

Grand Vitara XL7 (2003–2007)

May Launch

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Maruti Cervo

1.Maruti 800 :- It is a city car manufactured by Maruti Suzuki in India. It is a

rebadged version of an old model of the Suzuki Alto. Over 2.5 million Maruti

800's have been sold since its launch in 1984. The same car is sold in Pakistan

as the Suzuki Mehran with a much older 1980s era Suzuki SS80 carburetor

based engine. The 800 has undergone some minor face lifts but overall it still

remains the same as it was in 1984. The car has reported slipping sales in recent

times, mainly due to the introduction of the Alto at a comparable price. The car

produces approximately 37 bhp (28 kW; 38 PS) of power and runs on 12 inch

wheels. Curb weight is 650 kg (1,433 lb) and 4 passengers (including the driver)

fit in. Top speed is in the region of 125 km/h (78 mph) and the car is known to

deliver fuel economy better than 20 km/l (47 mpg) on clear and plain roads.

Maruti Suzuki had earlier launched a version with a 4 valves per cylinder

engine producing 45 bhp (34 kW; 46 PS) coupled with a 5-speed manual

transmission (currently found in the Suzuki Alto) but discontinued it after a

couple of years.

The Maruti 800 is still popularly hailed in India as "the smallest car in

production" due to its relatively tightly spaced interior. Its main competitor is

the cheaper Tata Nano (123,000 compared to 184,641 Rupees) which has an 8

percent smaller exterior size and a 23 percent larger interior space. Maruti 800 -

the first choice for all those who want a 'value for money car' that is little on

pocket and big in performance. Maruti 800 is safe, economical and easy to drive

car(with a small turning radius of 4.4 m) in congested road conditions. Since its

launch in December 1984, Maruti 800 has gone through various changes in

styling, structure and technology.

For years Maruti 800 has remained the right opening car for people who look

for low cost of ownership and fuel efficiency. It is a car perfectly made for the

35

Indian roads. It goes in any location, be it in town, around town, highways, busy

streets, narrow lanes anywhere and everywhere.

In order to make the car more attractive, new engine has been installed in M800.

The M800 E 2 AC has been a major success.

Variants, Price and Mileage

The car is available in Standard and A/C versions in metallic and non-metallic

colors. It is available in the price range of around Rs 2 lakhs.

Engine

The engince produces approximately 37 bph (28 kW) of power. It consists of 4-

gear, 4-stroke, and 800 cc water cooled engine having three two-valves-

cylinders. The pistol displacement is 796cc. Maruti800 has a fuel tank of

capacity of 28 liters for petrol.

Safety

Thanks to the presence of specially allocated crumble zone which absorbs the

impact of accident, Maruti 800 ensures safe journey. It is equipped with front

and rear seat belts to provide more safety.

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2.Maruti Omni :- It is a microvan manufactured by Indian automaker Maruti

Suzuki. The first version of Maruti Omni had 796 cc engine, same as the Maruti

800 city car. This was the second vehicle to be launched by Maruti, one year

after the 800, in 1984. Later version of the Omni includes the:

Omni (E), released in 1996, 796 cc engine, 8 seater capacity vehicle

Omni XL - 1999, same engine, modified with a higher roof.

Omni Cargo LPG - 2004, created to answer the growing popularity of this

car being used as an inter-city cargo vehicle.[1]

Omni LPG - 2003, same 796 cc engine, added with a factory fitted LPG

Kit, authorised by the Indian RTOs (Regional Transport Offices). This

makes it the most economic 4 wheeler in India, as far as the driving costs

are concerned.

Omni Ambulance - A Modified E version into an ambulance vehicle.

This is the most common type of ambulances found in Indian cities.

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3.Gypsy :- It is manufactured in India by Maruti Suzuki. It was introduced in

the Indian market in 1985 with the 970cc F10A Suzuki engine and was an

instant hit in the civilian market as well as with law enforcement. It was

codenamed MG410 that stood for Maruti Gypsy 4 cylinder 1.0 litre engine.

Initially, it was only available as a soft-top; but a bolt on hardtop was later

introduced to the public after the aftermarket hardtops became extremely

popular. It instantly replaced Premier Padmini as the quintessential Indian rally

car due to its performance, reliability, tunability and the go-anywhere

capability. The carburetted F10A engine made 45bhp and was mated to a 4

speed gearbox. The 4WD transfer case had 2 speeds. It had a freewheeling

mechanism [1] on the front axles made by Aisin to unlock the front axles from

the hub when 4WD is not used; It reduced rolling resistance, thereby improving

fuel efficiency. However, many owners of the Gypsy who constantly

complained about the poor fuel consumption never knew about this novel

feature.

The two major complaints of the vehicle in the civilian market were poor fuel

consumption and poor ride quality especially in the rear seats. The suspension

was indeed harsh with live axles and leaf springs all around. It features almost

no creature comforts, like power-windows and power-assisted steering.

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4.WagonR :- WagonR The Suzuki Wagon R is a kei car first introduced in

Japan in 1993, and is still in production by Suzuki. The R stands for recreation.

It is one of the first cars to use the "tall wagon" design in which the car is

designed to be unusually tall with a short bonnet and almost vertical hatchback

and sides in order to maximise cabin space while staying within the kei car

dimension restrictions.

The Wagon R has been the best-selling kei car in Japan since 2003 and in 2008,

Suzuki expected to produce its three-millionth Wagon R.

It has been a profitable car for Suzuki even in the International market, mainly

since introducing the car in India. The car comes with a variety of trim levels.

These include the LX (sans power steering), Lxi (power steering), VXi (fully

loaded) and the AX (automatic). The car is available with a 5-speed manual

transmission and seats 4 (including the driver) comfortably.

The Wagon R's bread-box shape did not immediately cut ice with the Indian

consumer and the car saw slow sales initially. Recently New version of

WangonR has been launched with more upgraded features. Wearing an

innovative and sporty looks Maruti Suzuki Wagon R is enjoying good market

position in small car segment. India's leading auto maker Maruti Udyog Ltd

(MUL) has designed Wagon R with ample and convertible inner space, finely

crafted panels and the power of a low friction 64 bhp engine. Available in three

variants (LX, LXi, VXi) Wagon R has everything that small car lover looks for.

'Blue Eyed Boy' - The New Wagon R

Maruti has re-lauched its second best selling model to compete in present

competitive car market. The new WagonR is roomier with larger cabin space,

increased leg-room for all passengers and larger boot. Other major highlighs

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includes fitment of a new L-shaped front suspension for improved ride comfort,

tiltable steering, electrical outside rear view mirror, superior AC for faster

cooling and tubeless tyres. Externally, the new Wagon R flaunts a new grill and

bigger and sweeping headlamps with blue tint giving it a refreshing new look.

The new K10B engine marks the technical advancement and ensures a high

mileage of 18.9 kmpl. The new cool colors are bound to get you attracted

towards this smart boy of maruti. Available in three variants viz LX, LXI and

VXI, this re-loaded new Wagon R can make it to your garage in Rs 3.28 - 4.14

lakhs.

5. Alto:- The Maruti Alto is the Indian-built Suzuki Alto version,

manufactured by Maruti Suzuki in India. It was launched in the local Indian

market on September 27, 2000 although the Alto nameplate was very

successfully being used to export the Maruti Zen to Europe from India since

around 1994having captured over 40% market share in Belgium and 33% in

Netherlands by 1998. It is the best-selling hatchback in India. Since 2006, It is

India's largest selling car and crossed the 1 million production figure in

February 2008 becoming the 3rd Maruti model to cross the million mark in

India after Maruti 800 and Maruti Omni and 4th overall joining Hyundai Santro.

Besides being exported to Europe from 1994-2004, it has also been exported to

several other countries. In the small hatchback car segment of India, Maruti

Suzuki Alto gives 'maximum' comfort and safety features with 'minimum' price

tag. The most economical petrol engine powered with 32-bit computer

technology delivers great output of 47 bhp. Available with number of

convenient and security features, Maruti Suzuki Alto has become like a hot cake

in its segment.

40

Maruti Suzuki Alto, is tagged as the Best Selling car of India from last three

years. One of the hottest selling compact cars in the Indian market, Alto has an

efficient engine system and better mileage. Maruto Alto is targeted at middle

class families living in cities because of high fuel economy and affordability.

Least maintenance cost and variety of vibrant colours make it true value for

money.

The car has high tensile steel side door beams to guard against the front, rear

and side collision impact. The looks are tough but accommodating, having more

Boot Space than other cars. The AC of the vehicle is ideal for India's tropical

climate

6. Swift :- Swift debuted at the Paris Auto Salon in September 2004. This

generation of the Swift marked a significant departure with the previous Cultus-

based models, with Suzuki re-designing the vehicle as less of a "low price

alternative" subcompact and more of a "sporty" subcompact.The Swift's design

and driving characteristics focused on the European market with its chassis

refined through a road-testing program across Europe.

Available with 1.3 (92 PS (68 kW; 91 hp)) and 1.5 (102 PS (75 kW; 101 hp)) L

petrol engines, the new Swift is Suzuki's new "global car", produced in

Hungary, India, Japan, Pakistan and by Chang'an in China. Maruti Suzuki Swift

is rocking the hatchback car segment of India and has become the blockbuster

model since its launch. Swift is cool, stylish and dressed powerfully. Big

dimensions, great fuel economy, larger fuel tank capacity, European style looks,

eye-catching interiors and above all the support of large Maruti service network,

makes Suzuki Swift a thrilling car that has emerged as a tough competition for

Hyundai and Tata.

41

Maruti Suzuki Swift, the car of the year, was launched in May 2005. It is a new

kind of compact car with a fresh approach to design and development. The

Swift is more eye-catching, more spacious, more refined and more user-

friendly. It is a whole lot of enjoyable to drive than anything else in the

compact-car category.

7.Estilo :- The First Generation MR Wagon is currently sold in India as "Maruti

Suzuki Estilo", where it was known until 2009 as the "Maruti Zen Estilo". This

transition has brought about a steady decline in sales for this model though the

redesign has brought significant improvement in performance and styling over

the car's Japanese variants.

The first generation model went on sale on December 4, 2001, featuring

Suzuki's K6A kei car engine, in either naturally-aspirated (40 kW / 54 hp) or

turbocharged (44 kW / 60 hp) versions, available with either front-wheel drive

or all-wheel drive. In all versions, the transmission was a 4-speed transmission

with column shift. A hydrogen-powered fuel cell vehicle based on the first-

generation MR Wagon was presented in 2005, using technology co-developed

with General Motors. Maruti Suzuki Zen Estilo is a flamboyant model launched

by India's leading auto company Maruti Udyog Limited (MUL) replacing the

Zen model. Zen Estilo, with its sporty looks, roomy space, true riding comfort

and competitive price tag, would definitely make its style statement in the small

car segment in India posing a tough call for other players like Hyundai and

Tata.

Estilo is all set to compete against the Hyundai Santro, Tata Indica and possibly

can eat into the sales of its own model, the Swift. Maruti Udyog launched the

Zen Estilo to cater to a slightly upmarket customers then that of the Maruti 800

had. Estilo is powered by 1.1 l MPFI engine that delievers a power of 64 bhp @

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6200 rpm. Zen Estilo wears an aerodynamic body in unique bean shape with

stunning body line. Just step inside Zen Estilo which is soft-plush from inside

and sleek-dynamic from outside, would shape your world in new dimension of

comfort, style and performance.

8.SX4:- SX4 Maruti Suzuki launched SX4 sedan with the 1.6-litre gasoline

engine (without VVT) in 2007. Currently, the SX4 comes equipped with the

1.6-litre gasoline engine (with VVT). Minor cosmetic differences can be seen

between the Indian version and others sold elsewhere. For the 2010 model year,

SX4 five-door hatchback is available with a 1.6-litre DOHC VVT petrol engine,

2.0-litre DOHC engine and 2.0 litre DDiS engine (16 valve, 135 PS & 320 Nm

torque) on the AWD version. The 1.6 litre DOHC VVT engine revised to the

new CO2 emission control standards Euro 5 regulations. The engine gets also

slight performance increase (from 102 to 107 bhp). (The US-market 2.0 litre

engine from 143 to 150 bhp) and lower fuel consumption.

The car is offered either a six-speed manual, 4 speed automatic transmission for

1.6 litre engine cars, or CVT automatic transmission with paddle shifters for 2.0

litre I4 engine cars.

The 2010 model also gets front (ventilated) and rear (solid) disc brakes, 6

airbags (front, side and curtain), Anti-lock Braking System (ABS), and

Electronic Stability Program (ESP), optional in 1.6 litre models.

The 2010-model SX4 saw changes to the grille, taillights, instrument cluster,

climate controls, and door trim, as well as a restructured cargo hold, and all-

wheel-drive models add new rear skid plates. "Men are back" amongst the cars.

Maruti Suzuki SX4-the strong, masculine body outline, generous power of 102

bhp, plush and luxurious interiors with steering mounted controls - are some of

the unmatched features in sedan car segment, that the SX4 flaunts. Dressed with

43

contemporary European design styling and the economical and responsive M

series petrol engine, driving the Sx4 is like a dream come true.

In an attempt to strengthen its position in the of Sedan cars market, Maruti

Udyog Ltd. has launched its premium model bearing name SX4. After Maruti

Suzuki Swift, SX4 is the second international model being launched in India.

Suzuki SX4, is an A3 segment sedan car, with a perfect combination of style,

performance, safety and comfort. There are two versions of Suzuki SX4: Vxi

and Zxi that gets power from latest and efficient 1.6-litre M-Series engine

delivering impressive 102 BHP of power.

Maruti Suzuki SX4 is packed with strong features like independent suspension

system, Anti Lock Braking System (ABS), matching color bumpers, electrically

adjustable outside mirrors, fine quality fabric seats, power windows, rear seat

center armrest and adjustable head rests in the front and rear seats are few to

name for a smooth, comfortable and safe ride.

Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide

tough competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda

City, and Indigo XL.

A new SportBack model offers a lowered sport-tuned suspension, body kit, rear

spoiler, and also removes the roof rack found on the normal crossover SX4. The

2010 SportBack also includes many standard features otherwise optional.

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9.Swift Dezire:- It is the new entry level sedan from Indian automaker Maruti

Suzuki. Launched on March 26 2008, Maruti Swift DZire is based on the

popular Suzuki Swift platform. The Swift DZire replaces Maruti Suzuki’s

popular entry level sedan, Maruti Suzuki Esteem, production of which was

discontinued in late 2007. Maruti Suzuki has introduced Swift DZire only in the

Indian market.

Swift DZire is a result of an indigenous project started in 2005 to design a three-

box notchback version of the Swift. Some changes have been made to the car’s

overall styling to seamlessly integrate the boot. The wheelbase remains the

same. The car weighs about 30-35 Kgs more than the Swift hatchback. Few

modifications in the rear suspension have been done to cope with the additional

weight of the boot and improve the ride quality for the rear passengers.

Adjustments in the rear seat inclination have been made to improve the rear seat

comfort and legroom.

The car is pitted against the other entry level sedans in the Indian market, such

as the Mahindra Renault Logan and the Tata Indigo.

The Swift DZire has become infamous for delivery delays as the number of cars

being booked is large. The price of the car and the features offered are very

attractive compared to the entry-level sedan competition (in India), resulting in

large number of bookings. The diesel version of the Dzire, in particular, had

delivery times extending from 4 to 6 months

10.A star :- A-star (Launched 2008) The 7th Generation is known in India as

the Maruti Suzuki A-Star, but is also known as the Suzuki Celerio or Nissan

Pixo in other places worldwide. It was launched in December 2008 by the Indo-

Japanese auto maker Maruti Suzuki. It is the next generation Suzuki Alto and is

45

exported worldwide. It is available in European markets as Nissan Pixo. The car

was rolled out to the Indian customers in December 2008 and exports began in

April 2009. A-Star means Alto-Star.

With a totally new body and engine, Maruti hopes to bring freshness to the

Indian car market, of which it already holds a major share. Initial reviews have

been positive. It has a fresh new dashboard, with a unique protruding

tachometer besides the usual meter cowl (only in the ZXi trim). It is the fourth

model after Swift, SX4 and Grand Vitara which has helped Maruti to make

stylish cars, something which it was unknown for during older models.

Though the drive is comfortable for the front row, rear seating is a little small

for taller passengers. The interiors have been reported to be a bit cramped as

compared to the Hyundai i10, its closest competitor. It has the new K10B series

engine, which Suzuki says is technically highly developed and gives a balance

of fuel efficiency and power. The ZXi is the fully loaded version with all the

expected features like power windows, central lock, ABS, rear wiper, fog

lamps, CD player, airbags etc. Indian car market leader Maruti Suzuki has

launched A-Star in the hatchback car segment in which the company holds

ruling position with 55% market share. Maruti has unveiled A Star as a next

generation model of its another model Alto which is already selling greatly in

the segment. Scroll down to know more about the sporty and striking features of

all new A Star Car.

India's largest automaker Maruti Suzuki India Limited has unveiled its much

awaited hatchback car, A Star in the Indian auto market. A Star was first

showcased in the Indian auto expo in New Delhi, as a concept car and after

launch A Star from Maruti would be its fifth car model slated to be exported in

the International market as well. Maruti Suzuki A Star, the all new entrant into

the hatchback car segment in India, promises to become the most fuel-efficient

46

car in its category with an exceptional mileage of 20 kmpl. The launch of A Star

Car, which is the eighth consecutive car launch by Maruti, denotes the key

positioning of the market leader in the A2 car segment with 55% market share.

The all new Maruti Suzuki A Star features a sporty-designer looks and equipped

with state-of-the-art technology that promises to deliver a wonderful driving

experience. A Star houses a brand new KB series 998 cc engine under its hood

that delivers 67 PS @ 6200 rpm and an exceptionally good torque of 90 Nm @

3500 rpms. Being light in weight this engine lowers the vibration or noise and

provides more fuel-efficiency in every litre. The A Star has been launched as

the next generation model of Alto car car and would be built completely at the

company's facility at Manesar, Haryana.

11.Ritz:- Ritz (Launched 2009) The Suzuki Splash is a city car introduced in

model year 2008 and jointly developed between Suzuki Motor Corporation and

Opel — which will also market their version as the Agila. It debuted as a

concept car at the 2006 Paris Auto Show and the production model debuted at

the 2007 Frankfurt Auto Show. The Splash is slotted below the Swift in the

lineup, and uses a shortened wheelbase version of its chassis.

The car was launched with two petrol engines, a 3 cylinder 1.0 litre and 4

cylinder 1.2 litre Family 0, and a 4 cylinder version of Fiat's MultiJet diesel

engine. Unlike its predecessor, the Wagon R+, the Splash has five seats as

standard.

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12.Ecco:- Eeco (Launched 2010) When it comes to performance, the Maruti

Suzuki Eeco is a thrilling surprise. Because under its hood, and in your hands lie

unique features and unmatched benefits that add up to giving you a delightful

driving experience.

Maruti Suzuki Eeco is equipped with a powerful 1200cc BS IV compliant

engine that delivers 73 bhp @ 6000 rpm, with a torque of 101Nm @ 3000 rpm.

The engine incorporates a range of advanced technologies, and has been tuned

for performance at low and mid range speeds with emphasis on fuel efficiency

and drivability.

The suspension system of the Maruti Suzuki Eeco has been designed and

developed for best-in-class driving comfort, with balanced handling for Indian

roads in both plain and rough terrains.

For the first time, Maruti Suzuki has introduced Diagonal Shift Assistance

(DSA) for smoother gear shifting.

48

May Launch

Maruti Cervo

India's largest auto manufacturer, Maruti is planning to launch another small car

model Maruti Cervo in entry level segment in the Indian auto market. This car

is to balane Maruti's market share in loe level segment cats which has been

effected due to Tata Nano. Maruti Cervo will be priced in the range of Rs 1.5 to

2 lacs with ample features and performance parameters to overtake the

companys most popular models Maruti 800 and Maruti Alto along with Tata

Nano.

Maruti Suzuki Cervo has a sleek and beautiful look in a compact structure. Easy

handling in congested traffic and city roads makes it an easy drive. Features like

power steering, AC as standard, body colored bumpers,body colored door

handles and outside mirrors make Maruti Cervo a true value for money. Safety

features like ABS and Airbags take Cervo into the category of competitive

hatchbacks like Hyundai i10, Chevrolet Spark etc.

49

Special Features of Maruti Suzuki

Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers

with the help of the National Insurance Company, Bajaj Allianz, New India

Assurance and Royal Sundaram. The service was set up the company with the

inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd

and Maruti Insurance Brokers Pvt. Limited.

This service started as a benefit or value addition to customers and was able to

ramp up easily. By December 2005 they were able to sell more than two million

insurance policies since its inception.

 

You do not have to pay the repair charges to the extent the same is payable by the

Insurance Company. Just pay for the compulsory excess and applicable depreciation

(both are as per motor tariff) and walk away with the repaired vehicle - Rest is settled

directly between the dealer and the Insurance Company.

 

Its like "Free Roaming" - You get Maruti insurance services across India at all Maruti

authorized dealer. These services include buying new policy, effecting renewals,

endorsements issuance and claims settlement.

 

  Maruti Insurance ensure a hassle-free and fair claim settlement. Whatever is payable by

standards is paid by the Insurance Company. The customer is not forced to bear the

50

undue differential cost of repair/ replacement. All transactions are completely transparent.

No hassles of personal involvement or follow up with surveyors/ insurance co. etc. No

botheration of depositing the salvage with insurance co. No compromise on repair-

replacement-parts that need replacement are replaced and not repaired to minimize repair

bills.

 

 

With Maruti Insurance you don’t compromise on the quality of repairs as you are not

forced to go to a roadside workshop. The damaged vehicles are repaired at Maruti

authorized dealer workshops that are equipped with the best facilities and infrastructure.

This ensures quality repairs with Maruti Genuine spare parts and trained technicians.

 

 

Towing assistance is provided for getting the vehicle to the dealer workshop, in case the

vehicle is immobile after accident. This facility is available free of cost upto Rs 1500/-.

This limit can be increased at customer preference by paying extra premium at the time of

policy issuance.

 

 If you are renewing with Maruti Insurance for the first time, the entitled no claim

bonus(NCB) is easily transferred to Maruti Insurance policy at the time of renewal.

 

 The customer does not have to wait for the policy document, which sometimes takes

months to get delivered from the Insurance Company. With Maruti Insurance, the policy

51

is issued instantly through the Internet.

Maruti Finance

To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in

January 2002. Prior to the start of this service Maruti Suzuki had started two

joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE

Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied

up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,

Standard Chartered Bank, and Sundaram to start this venture including its

strategic partners in car finance. Again the company entered into a strategic

partnership with SBI in March 2003 Since March 2003, Maruti has sold over

12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently

available in 166 cities across India. Maruti has entered into agreements with

several finance institutions to arrange for finance for its customers. Under the

program, lucrative financial deals are offered for the customers. The consortium

of companies is comprised of State Bank Group, Citicorp Maruti, ICICI Bank,

HDFC Bank, Kotak Mahindra, Sundaram Finance, Magma Leasing Ltd,

Cholamandalam Finance and Mahindra & Mahindra Finance Services.

Features The interest rates offered by Maruti Finance are 0.25% to 0.5% lower

than those available in the market across all credit profiles.

Maruti Finance offers value added services like extended warranty for the 3rd

and 4th years, which can be bundled along with the Maruti Finance loan.

Loans for insurance and accessories are built into the EMI's, keeping the whole

deal simple and hassle-free.

52

The customer get all his car needs – Car, Finance, Accessories, all under the

same roof.

Citicorp Maruti Finance The joint venture was set up by Maruti with Citibank

in May 1998. A wide range of flexible and customised financing options at

affordable rates are available to prospective customers for buying a Maruti car.

Maruti Countrysid GE Capital, HDFC and Maruti Udyog Limited came

together to set up Maruti Countryside in 1995. The entity offers innovative

finance schemes for the purchase of Maruti cars.

SBI Maruti Car Loans The country's largest bank and the largest car maker

have joined hands to make car finance affordable. The group offers low interest

rates and there is no processing fee or hidden costs. Loan is made available on

the basis of the car's on-road price, not ex showroom price. The repayment

period is upto seven years.

Maruti TrueValue

Maruti True service offered by Maruti Suzuki to its customers. It is a market

place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used

Maruti Suzuki vehicles with the help of this service in India. As of 2009 there

are 315 Maruti True Value outlets. Maruti True Value is India No.1 organized

pre-owned car brand .True Value is venture of India’s largest automobiles

manufacturer “Maruti Suzuki India Ltd”.

Maruti True Value business expands the family of Maruti customers, providing

reassurance to existing Maruti customers about resale of their cars and further

53

emphasizes Maruti s Commitment towards enhancing customer satisfaction by

continuous association during the vehicle ownership life cycle.

No one knows your Maruti car better than Maruti - based on this premise,

Maruti chanalises its expertise to ensure that transactions in pre owned cars are

transparent and fair. Through that, the company endeavors to extend the

relationship and emotional connect that it enjoys with the customer.

True Value has transparent and fair evaluation process, which is currently

missing in the largely unorganized market for pre-owned cars. Maruti True

Value processes and systems ensure that the seller gets the right price and is

paid promptly.  

Under True Value, the seller has the option to be paid in cash, or get a True

Value car in exchange or a brand new Maruti Suzuki car in exchange. True

Value category cars bought by Maruti True Value dealers are taken to state-of-

the-art workshops.

True Value Category cars are refurbished in state of art workshops using Maruti

Genuine Parts and by skilled technicians. These cars are then sold through

maruti True Value outlets.

As a mark of confidence, and to provide reassurance to customers, every vehicle

bought under Maruti True Value is inspected and certified by Maruti Engineers

and the Car carries a one-year warranty and three free services. Convenient

finance options are also offered to buyers of Maruti True Value cars.

Accessories

Many of the auto component companies other than Maruti Suzuki started to

offer components and accessories that were compatible. This caused a serious

54

threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new

initiative under the brand name Maruti Genuine Accessories to offer

accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo

systems, seat covers and other car care products. These products are sold

through dealer outlets and authorized service stations throughout India. Maruti

Genuine Accessories (MGA) is a new initiative to offer you high quality

accessories at competitive prices. We follow world Class engineering and

design processes to develop each and every item of MGA. Many of these items

are imported from Suzuki, Japan. Every MGA item has perfect mechanical and

electrical compatibility with the vehicle and offers you unmatched performance.

Company’s welfare activities for the employee:

Medical facilities:

For providing domiciliary treatment to the employee and their dependent

a dispensary and a full time doctor is the plant.

Group Accident insurance scheme:

Employee covered under ESI is automatically under the company group

accident insurance scheme.

Provision of loans:

Loan can be obtain by member for purpose such as construction of house,

marriage etc.

Service Award:

55

In appreciation of the long term association the company gives service

awards as a mark of honour to the employee.

Training Activities:

The company is concerned with personal growth a development of the

employee & sponsor for various learning and developmental programme.

Transportation:

There have provision for transportation facility for the employee.

TPM:

Total productivity maintenance mean to achieve high level of

productivity through total participation of all people inside the

organization and with them maintain the time service by developing self

managing in the people a practice.

Economic development:

The programmed enables people below the poverty line in these adopted

villages to earn their livelihood by involving them in activities that generates

income.

Infrastructure Development

The Company is actively involve in the community development of the

villages by providing infrastructure facilities such as housing, sanitation, road,

drainage, shelter, medical center and natural resource management.

56

Network at Maruti

Maruti Suzuki India has one of the largest sales and service network in

India spanning 454 cities and comprising of 681 dealers. Maruti Suzuki is

making its domestic sales network stronger day by day to reach out to its

growing number of customers in each and every part of the country. Most of the

Maruti dealership all equipped with 3S facilities, which means that sales,

service and spares facility are offered under one roof. CHENNAI, Team Maruti,

comprising company’s top officials, have a job at hand. To target cities and

markets where the company has not got its due share, and strengthen its

presence.

To achieve that, the company has been encouraging its existing dealers to open

new outlets. And it doesn’t seem to be a tough job to accomplish considering

that MUL had rolled out new initiatives like finance, insurance and TrueValue

(used car business) through its dealers.

“Our new initiatives and new businesses have started bearing fruit and it

(dealership) has turned out to be a much bigger business that merely selling

cars,” said Jagdish Khattar, MD, Maruti. Several of the company’s dealers have

invested Rs 4-8 crore on new dealership outlets. And in the next three months,

the company expects to add at least 20 more outlets this way. The company

targeted nine cities, including Mumbai and Bangalore, to strengthen its

presence.

“If they are not prospering from the business, they will not be keen to make

such huge additional investments,” Mr Khattar pointed out. “We are really now

57

focusing on states where we are not getting our due share,” he said. The

company particularly targeted nine cities, including Mumbai and Bangalore,

across the country to strengthen its presence.

In addition, it also resorted to “price rationalisation” for its models in places like

South India. For instance, if the company had brought down the prices of a few

of its models last year in south, it has again given a 7% reduction in price over

and above the 7% excise duty cut “to get better volumes” from the South this

year.

The results are already there. While the company’s ‘B’ segment cars — Zen,

Alto and Wagon R grew by 9-10% in the first 11 months of the current fiscal,

the growth of these models in the south were much higher at 14% for Zen, 79%

for Alto and 55% for Wagon R.

The focus is also spreading the ‘TrueValue’ used car network across the

country. While the network will be 50-outlet strong by the end of the month, it

will be 100 by the end of this year. “The objective is to cover more cities

through TrueValue than the new car outlets of our nearest competitor,” Mr

Khattar asserted. Kinji Saito, director (marketing and sales), MUL said that

there are more buyers (waiting to buy used cars through TrueValue) than

sellers. “We need to enthuse them through exchange or customer loyalty

programme and help them to upgrade,” Mr Khattar added.

Four-wheeler dealers more satisfied compared to two-wheeler dealers

58

According to the findings of the 2004 Dealer Satisfaction Study released by

market information provider - TNS, Honda Motorcycle & Scooters (HMSI) and

Honda Siel Cars (HSCI) rank highest in dealer satisfaction with their principals

in the Two and Four-Wheeler industry segments, respectively.

The study represents the responses of 1238 dealers (which included 846 two-

wheeler dealers and 392 four wheeler dealers) on the key areas of product,

management relationship, profit & margin, order & delivery, sales & marketing

activities, after-sales & parts support, warranty, sales representatives, after-sales

representatives, and training support. Depending on the respondent's

convenience, a combination of face-to-face, telephonic, or self-completion

interviews were conducted for this study. Over 150 cities including metros,

mini metros, state capitals, and other smaller towns were covered for the study.

The study was fielded from October 2004 through December 2004. The 2004

Dealer Satisfaction Study is the second in the series by TNS specialist division,

TNS Automotive.

In contrast, the four-wheeler manufacturers do a remarkable job in almost

doubling their 'partner' dealers in 2004. Honda Siel has significantly increased

the proportion of "Partners" from 38% in 2002 to 70% this year. Also of

significance is the drop in 'uninvolved' dealers - from 34% in 2002 to 22% this

year at the overall level. The challenge for the manufacturers lies in converting

the 'hostage' dealers into 'partners', since, at 28%, they form a very large section

of the dissatisfied dealer community.

A well developed transport network indicates a well developed economy. For

rapid development a well-developed and well-knit transportation system is

essential. As India's transport network is developing at a fast pace, Indian

59

Automobile Industry is growing too. Also, the Automobile industry has strong

backward and forward linkages and hence provides employment to a large

section of the population. Thus the role of Automobile Industry cannot be

overlooked in Indian Economy. All kinds of vehicles are produced by the

Automobile Industry. The automobile industry in India—the tenth largest in the

world with an annual production of approximately 2 million units—is expected

to become one of the major global automotive industries in the coming years. A

number of domestic companies produce automobiles in India and the growing

presence of multinational investment, too, has led to an increase in overall

growth. Following the economic reforms of 1991 the Indian automotive

industry has demonstrated sustained growth as a result of increased

competitiveness and relaxed restrictions. India Automobile Industry includes

the manufacture of trucks, buses, passenger cars, defence vehicles, two-

wheelers, etc. The industry can be broadly divided into the Car manufacturing,

two-wheeler manufacturing and heavy vehicle manufacturing units.

The small car market in India is increasing by leaps and bounds. The indigenous

market for small cars now occupies a substantial share of around 70% of the

annual car production in India of about one million. The main players in the car

market like Tata Motors and Maruti Udyog are fiercely competitive and more or

less all the automobile companies in India that have forayed into the production

of small cars are trying to out-do each other in terms of design, innovation,

pricing, and technology, in order to gain control of the small car market in

India. The biggest players in the Indian small car market are engaging in a

healthy competition, which has intensified since the Indian government decided

to boost the small car sector. In this regard, a reduction in the excise duties has

been thought of. Even the engine capacities are expected to be raised to 1500cc.

The new small cars in India cars may even be fueled by gasoline and diesel in

the future. With all these facilities, it has been estimated that the indigenous car

market is going to move beyond the 3.5 million mark very soon.

60

Competitor Detail

So many inferences to be drawn from these stats that if I put something,

someone would howl as to why I have missed something else. Still, some very

quick observations:

1.Distinct slowdown in 2007-08 (FY2008).

2. Maruti’s share has remained the most consistent across 2003-08: 46-47%.

Over the same period, Hyundai down marginally, and so is Tata.

3. Pt.2 needs to be combined with the fact that growth during last 5 years has

been higher in bigger segment (cars and MUVs). That means +for Honda and

Toyota; and growth limitation on Maruti, Hyundai, and Tata.

4.That still leaves a lot of room for these 3: the Indian market will still retain a

61

small car one (with a gradual shift upwards). The small, compact, and Omni

share of total domestic sales has remained at around 65% for last few years.

5. The bigger segment is growing fast but still very low % of total. That should

change in the next decade.

6. Hyundai has dominated exports. That is a +for the country. On the other

hand, no one has found success in exporting bigger cars. They may export to

fellow LDCs (Bangladesh, etc) but not to competitive markets of US, Europe,

and Japan. Could that change soon? Not soon, though people are trying. As of

now, only M&M and Tata have some plans, but those involve a radical quality

improvement, which will not happen tomorrow (liability laws have made them

very cautious). Toyota and Honda have the products, but then they also have

factories worldwide. Possibly India could be used as a regional hub. Suzuki

exports small cars, and its big cars do not sell much anywhere.

7. High growth for One month or quarter or even a year do not make a

successful company, as Fiat and GM have found it (have data prior to 2002

also). Even the 3-year growth can be misleading (when read in isolation). Refer

only Skoda. It was anyway growing at a good rate but selling around 1000 prior

to Fabia. Now it sells 1900-2000. That means a 100% growth. Similarly for

Logan/M&M; Spark/GM.

8. Most important for survival (as any business would be aware) is profits. No

profits and selling at a loss soon leads to extinction. The really good profitable

years were till FY2007. From 2003-07, although steel, aluminium, plastics

prices all increased; higher volumes enabled healthy growth in profits and

returns. That has changed in 2007-08 with higher costs continuing, but volume

growth slowing down. For comparison, I am posting the operating margin and

62

return on networth for major companies which have publicly available financial

results for FY2007 (first figure is margin and second is return):

Maruti: 13.5%, 25.4%; margins increasing FY2004-07

Tata: 10.5%, 30.9%; stable margins

HM: operating losses from 2003-04 onwards

Hyundai: 8.3%, 20.4%; declining margins from 2001-02 onwards, though

margins have been stable during 2005-07.

Honda: 11.2%, 30.8%, stable margins

M&M: 8%, 33.3%; stable margins.

Four – Wheeler

As in the two-wheeler segment, manufacturer related aspects are critical

"Motivators" where performance is below average. Segment leader,

Honda Siel has scored above average in 'Concern for dealer profitability'.

This clearly brings out the importance of these attributes with respect to

the overall satisfaction.

The impact of 'Effectiveness of brand/product positioning' on

commitment is relatively lower among 4-wheeler dealers. 4-wheeler

manufacturers are also delivering as per their dealer expectations on this

aspect.

'Fair settlement of warranty claims' & 'Communication to dealer in case

of delay', which were hygiene areas for 2-wheeler dealers have moved to

the motivator segment for 4-wheeler dealers.

'Sales & service training support' has a greater impact on commitment

among 4-wheeler dealers as compared, to 2-wheeler dealers.

63

A well developed transport network indicates a well developed economy. For

rapid development a well-developed and well-knit transportation system is

essential. As India's transport network is developing at a fast pace, Indian

Automobile Industry is growing too. Also, the Automobile industry has strong

backward and forward linkages and hence provides employment to a large

section of the population. Thus the role of Automobile Industry cannot be

overlooked in Indian Economy. All kinds of vehicles are produced by the

Automobile Industry. The automobile industry in India—the tenth largest in the

world with an annual production of approximately 2 million units—is expected

to become one of the major global automotive industries in the coming years. A

number of domestic companies produce automobiles in India and the growing

presence of multinational investment, too, has led to an increase in overall

growth. Following the economic reforms of 1991 the Indian automotive

industry has demonstrated sustained growth as a result of increased

competitiveness and relaxed restrictions. India Automobile Industry includes

the manufacture of trucks, buses, passenger cars, defence vehicles, two-

wheelers, etc. The industry can be broadly divided into the Car manufacturing,

two-wheeler manufacturing and heavy vehicle manufacturing units. The major

Car manufacturers are,

1. Hindustan Motors

2. Maruti Udyog,

3. Fiat India Private Ltd

4. Ford India Ltd

5. General Motors India Pvt. Ltd

6. Honda Siel Cars India Ltd

7. Hyundai Motors India Ltd

64

8. Skoda India Private Ltd

9. Toyota Kirloskar Motor Ltd

The two-wheeler manufacturing is dominated by companies like TVS, Honda

Motorcycle & Scooter India (Pvt.) Ltd., Hero Honda, Yamaha, Bajaj, etc. The

heavy motors like buses, trucks, defense vehicles, auto rickshaws and other

multi-utility vehicles are manufactured by Tata-Telco, Ashok Leyland, Eicher

Motors, Bajaj, Mahindra and Mahindra,etc. Following India‘s growing

openness, the arrival of new and existing models, easy availability of finance at

relatively low rate of interest and price discounts offered by the dealers and

manufacturers all have stirred the demand for vehicles and a strong growth of

the Indian automobile industry.

Small Car Market in India

The small car market in India is increasing by leaps and bounds. The indigenous

market for small cars now occupies a substantial share of around 70% of the

annual car production in India of about one million. The main players in the car

market like Tata Motors and Maruti Udyog are fiercely competitive and more or

less all the automobile companies in India that have forayed into the production

of small cars are trying to out-do each other in terms of design, innovation,

pricing, and technology, in order to gain control of the small car market in

India. The biggest players in the Indian small car market are engaging in a

healthy competition, which has intensified since the Indian government decided

to boost the small car sector. In this regard, a reduction in the excise duties has

been thought of. Even the engine capacities are expected to be raised to 1500cc.

The new small cars in India cars may even be fueled by gasoline and diesel in

the future. With all these facilities, it has been estimated that the indigenous car

market is going to move beyond the 3.5 million mark very soon.

65

Part : II

Project Overview

66

CONSUMER BEHAVIOUR

Our society is a land of diversity. We see diversity at all level exist

among consumers, among nation, culture, food and taste among marketers and

even among consumers behavior theoretically perspective. However, despite

prevailing diversity in our society.

The term consumers behavior refers to the behavior that consumers

display in searching for purchasing, using, evaluating a disposing of product

and service that they expect will satisfy their needs. To study consumers

behavior to spend their available resource to understand and predict behavior in

the market place, it also promote understanding of the role that consumption

play in the lines of individuals.

Consumer behaviour study include the study what they buy, why they

buy it, when they buy, where they buy it, how often they buy it and how often

they use it. Consumer research takes place at every phases of the consumption

process, before the purchase, during the purchase and after the purchase,

consumer behaviour research goes far beyond these facts of consumer

67

behaviour and considered the uses of consumers make of the good they buy and

their subsequent evaluation.

Consumer behaviour is inter disciplinary, that it is based on concept and

theories about people that have been involved by scientist in such diverse

disciplines as psychology, sociology, social psychology, cultural anthropology

and economics.

Consumer behaviour has been an integral part of strategic market

planning. The belief that ethics and social responsibility should also be Integral

component of every marketing decision is a revised market concept.

The term consumer is often used to describe two different kinds of

consuming entitles the personal consumer and the organizational consumers.

The personal consumers buys goods and service for his/her own use for the

organizational encompasses for profit and non profit business, govt. agencies

and institution all of which must buy product, equipment and service in order to

run their organization.

Introduction to buying motives Consumer or buyer is the central figure of all

marketing activities. It is the consumer who determines the growth, prosperity

and even existence of a business enterprise. Hence the marketer should always

feel the pulse of customers. In order to understand the pulse of the customers,

the marketer needs to understand fully the working of buyers mind. It helps him

to plan his production and distribution to suit to the needs and convenience of

customers‘ .It also helps him to plan suitable marketing strategies. Thus it is

very essential for every marketer to know his customers buying motives.

Buying motives Motive is a strong feeling, instinct, desire or emotion that

makes a person to do something. When a motive makes a person to buy a

product, then it becomes a buying motive. Thus buying motive means the

influence and considerations which makes a customer to buy a particular

product. According to D.J.Duncan, ―buying motives are those influences or

68

considerations which provide the impulse to buy, induce action or determine

choice in the purchase of goods and services‖. Buying motives are mainly two

types, manifest motives and latent motives. Manifest motives are those motives

which are known to the customer and also ready to admit them.

Consumer Behaviour: Turning to the Web and New C2C Tools

Consumers today have a multitude of sources from which to gather information

during the vehicle buying process, but the Internet tops the list. The web has

become a standard resource in the shopping process for eight out of 10

consumers when researching car purchases. However, the way they use it is

changing. As the web matures, vehicle buyers are visiting fewer sites and

focussing more on manufacturer and C2C websites and less on third-party

information sites and independent e-tailer sties.

Manufacturer Sites a Key Information Source

Just two years ago, information websites were identified as the number one

information source by web users responding to the Cars Online survey (tied

with family and friends and manufacturer specific dealer), named by 55% of

consumers. This year, they dropped to the number four source, named by 41%

of web users. In comparison, manufacturer sites are now the top source for

69

consumers who use the web when researching vehicles, named by 70% of

respondents. Two years ago manufacturer sites held the number three position,

named by 43% of web users. The use of dealer websites has remained steady,

with about half of web users turning to these sites.

Key Factors in Vehicle Choice

When it comes to making their final decision about which vehicle to buy,

consumers focus on factors such as reliability, safety, price and fuel economy.

At the bottom of the list are cash-back incentives, named by fewer than half of

consumers. The importance of incentives as a deciding factor has declined for

the past several years, indicating that consumers today seem less interested in

gimmicks when it comes to their car purchases. Where consumers are in the

buying cycle can make a difference in how they rank the factors that influence

their vehicle choice. For example, additional warranty coverage is important to

consumers who are furthest away from the point of purchase; it was named by

69% of respondents who were 13 to 18 months from purchase. However, the

number declines as consumers get closer to actually buying the car: 55% of

respondents who were within three months of purchase said extra warranty

coverage was important. This reflects the fact that consumers will narrow down

the factors that really matter to them as they get closer to the point of purchase.

Demographic factors such as age and gender accounted for some variances. For

example, older consumers tend to put more emphasis on reliability and safety

than do younger respondents. Those in the 50-plus age group were also more

concerned with environmental issues and fuel economy. The youngest

respondents were most likely to rate the ability to research information on the

Internet as an important factor in their vehicle decision. Women tend to rate

most of the factors as more important than do men. The difference was most

70

pronounced for cash-back incentives, low financing, safety, environmental

issues, fuel economy and additional warranty coverage.

Going ‘Green’: Fuel Efficiency Takes Centre Stage

Fuel efficiency and environmental issues have moved to the forefront in

consumers’ minds and in automotive industry forums thanks to factors

including global warming, fluctuating gasoline prices, and proposed legislation

to increase fuel efficiency and reduce CO2 emissions. This growing interest in

so-called green vehicles was evident in this year’s Cars Online research.

More than one-quarter of respondents said they currently own or lease a fuel-

efficient vehicle while almost half said they are planning to buy or thinking

seriously about buying a fuel-efficient vehicle. Not surprisingly, the numbers

for alternative-fuel vehicles were lower. Just 2% of respondents currently own

an alternative-fuel vehicle and 11% are planning to buy or thinking seriously

about buying one. The most common type of alternative-fuel vehicle

represented in the survey were gas/ electric hybrids, named by about half of

current alternative-fuel car owners.

71

Biodiesel vehicles were the second most common, named by 15%. The

alternative-fuel market remains in transition and it’s still too early to tell how it

will ultimately shake out, although sales are expected to continue to grow. For

example, J.D. Power and Associates predicts that U.S. sales of hybrid vehicles

will increase by 35% in 2007, compared with 2006.

Current ownership of fuel-efficient and alternative-fuel vehicles tended to be

quite consistent across gender and age groups, although the oldest consumers

were somewhat more likely to be seriously thinking about buying an

alternative-fuel car.

CONSUMER BUYING vs. ORGANIZATIONAL BUYING

Final (or ultimate) consumers purchase for:

personal,

family, or

household use

Organizational consumers purchase for:

further production,

usage in operating the organization, and/or

resale to other consumers

Consumer Buying Behavior

The decision processes and acts of final household consumers associated with

evaluating, buying, consuming, and discarding products for personal

consumption

72

Consider the purchase an automobile. You generally will not consider different

options until some event triggers a need, such as a problem needing potentially

expensive repair. Once this need has put you "on the market", you begin to ask

your friends for recommendations regarding dealerships and car models. After

visiting several dealerships, you test drive several models and finally decide on

a particular model. After picking up your new car, you have doubts on the way

home, wondering if you can afford the monthly payments, but then begin to

wonder if instead you should have purchased a more expensive but potentially

more reliable model. Over the next five years, the car has several unexpected

breakdowns that lead you to want to purchase a different brand, but you have

been very happy with the services of the local dealership and decide to again

purchase your next car there.

In this particular case, the following generic model of consumer decision

making appears to hold:

=====>need recognition

=====>information search

=====>evaluation of alternatives

=====>purchase decision

=====>postpurchase behavior

Now consider the purchase of a quart of orange juice. You purchase this product

when you do your grocery shopping once per week. You have a favorite brand

of orange juice and usually do your grocery shopping at the same store. When

you buy orange juice, you always go to the same place in the store to pick it up,

and never notice what other brands are on the shelf or what are the prices of

other brands. How is it that the generic model above works differently in this

second scenario? Why does it work differently? Why would we generally need

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the ministrations of a sales person in the sale of a car, but we generally do not

need the help of a salesperson in the purchase of orange juice?

How can the marketer of orange juice get a consumer like you to exert more

effort into information search or to consider alternative products? How is it that

the marketer of your brand got you to ignore alternative competing brands?

What is the involvement of salespeople in sales promotions that might be

associated with products such as orange juice?

Consumer behavior researchers are not so interested in studying the validity of

the above generic model, but are more interested in various factors that

influence how such a model might work.

GROUP INFLUENCES ON CONSUMER BEHAVIOR

Culture

the set of basic values, beliefs, norms, and associated behaviors that are learned

by a member of society

Note that culture is something that is learned and that it has a relatively long

lasting effect on the behaviors of an individual. As an example of cultural

influences, consider how the salesperson in an appliance store in the U.S. must

react to different couples who are considering the purchase of a refrigerator. In

some subcultures, the husband will play a dominant role in the purchase

decision; in others, the wife will play a more dominant role.

Social Class

A group of individuals with similar social rank, based on such factors as

occupation, education, and wealth

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Reference Groups

Groups, often temporary, that affect a person's values, attitude, or behaviors

E.g., your behaviors around colleagues at work or friends at school are

probably different from your behaviors around your parents, no matter

your age or stage in the family life cycle. If you were a used car

salesperson, how might you respond differently to a nineteen year old

prospect accompanied by her boyfriend from one accompanied by two

girlfriends?

Opinion leader

A person within a reference group who exerts influence on others because

of special skills, knowledge, personality, etc.

o You might ask the webmaster at work for an opinion about a

particular software application. Software manufacturers often give

away free beta copies of software to potential opinion leaders with

the hope that they will in turn influence many others to purchase

the product.

Family

A group of people related by blood, marriage, or other socially approved

relationship

ENVIRONMENTAL / SITUATIONAL INFLUENCES ON CONSUMER

BEHAVIOR

Circumstances, time, location, etc.

Do you like grapes? Do you like peas?

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You might like grapes as a snack after lunch, but probably not as a dessert after

a fancy meal in a restaurant. You might like peas, but probably not as a topping

on your pancakes. Everyday situations cause an interaction between various

factors which influence our behaviors. If you work for tips (a form of incentive

related to commission) as a waiter or waitress, you must certainly be aware of

such interactions which can increase or decrease your sales.

If you are doing your Saturday grocery shopping and are looking for orange

juice, you are probably much more sensitive to price than if you stop at the

quick store late at night, when you are tired and cranky, after a late meeting at

the office. A prospect shopping for a new automobile while debating the

wisdom of a necessary expensive repair to his car might be more interested in

what cars are on the lot than in shopping for the best deal that might involve a

special order.

INTERNAL INFLUENCES ON CONSUMER BEHAVIOR

Personality

A person's distinguishing psychological characteristics that lead to relatively

consistent and lasting responses to stimuli in the environment

We are each unique as individuals, and we each respond differently as

consumers. For example, some people are "optimizers" who will keep shopping

until they are certain that they have found the best price for a particular item,

while other people are "satisficers" who will stop shopping when they believe

that they have found something that is "good enough." If you are a salesperson

in a retail shoe store, how might you work differently with these two

personalities?

Lifestyle and Psychographics

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lifestyle is a pattern of living expressed through a person's activities,

interests, and opinions

psychographics is a technique for measuring personality and lifestyles to

developing lifestyle classifications.

Motivation: Multiple motives

Consumers usually have multiple motives for particular behaviors. These can be

a combination of:

manifest

known to the person and freely admitted

latent

unknown to the person or the person is very reluctant to admit

Note: different motives can lead to the same behavior; observing behavior is not

sufficient to determine motives.

TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES

Routinized

used when buying frequently purchased, low cost items

used when little search/decision effort is needed

e.g., buying a quart of orange juice once per week

Limited Problem Solving

used when products are occasionally purchased

used when information is needed about an unfamiliar product in a

familiar product category.

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Extended problem solving

used when product is unfamiliar, expensive, or infrequently purchased

e.g., buying a new car once every five years

Under what sorts of conditions would the assistance of a salesperson be needed?

Not needed?

POST-PURCHASE CONSUMER BEHAVIOR

Satisfaction

After the sale, the buyer will likely feel either satisfied or dissatisfied. If the

buyer beleives that s/he received more in the exchange than what was paid, s/he

might feel satisfied. If s/he believes that s/he received less in the exchange than

what was paid, then s/he might feel dissatisfied. Dissatisfied buyers are not

likely to return as customers and are not likely to send friends, relatives, and

acquaintences. They are also more likely to be unhappy or even abusive when

the product requires post-sale servicing, as when an automobile needs warranty

maintenance.

Cognitive dissonance

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It has to do with the doubt that a person has about the wisdom of a recent

purchase

It is very common for people to experience some anxiety after the purchase of a

product that is very expensive or that will require a long term commitment. Jane

and Fred, for example, signed a one year lease on an apartment, committing

themselves to payments of $1500 per month. A week later, they are wondering

if they should have instead leased a smaller $900 apartment in a more rough

part of town; they are not sure if they really can afford this much of a monthly

obligation. Dick and Sally, on the other hand, ultimately rented the $900

apartment, and now are wondering if the savings in rent will be offset by noisy

and sometimes unsafe conditions in this neighborhood.

Perhaps neither couple would be experiencing this anxiety if their landlords had

given them just the smallest of assurances that they had made a good decision.

After a close on products that are expensive or that require a long term

commitment, the salesperson should provide the prospect with some reasons to

be happy with the decision. Allow the car buyer to reinforce her own positive

feelings by calling her a week after the purchase to ask how things are going.

Call the new life insurance policy holder after two months to see if there are any

questions; a lack of questions can only help the buyer to convince himself that

he did the right thing.

The four-wheeler Market is even expanding and ever changing showing

new trends. Almost every day, we get to know about the launch of new model

by different company Sales. Their market strategy and also their selling policy.

But as the competitors gets intensified between the domestic and the

multinational brands. The company producing better product enjoy the benefit.

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Objectives

Tezpur is the most developed town in north bank and gateway to Arunachal

Pradesh and to capture this market and establish themselves as a leader is the

prime aim of all the companies so as to have an psychological impact on the

people and to have an edge over other four wheeler companies were not doing

great business in This region from the very beginning. It was so because the

prices of the product were high and the customer were not fully aware of proper

advertisement facility, which is key factor in influencing a consumer. Earlier

Maruti product was almost enjoying the monopoly market but now Hyundai and

TATA entered the market with various promotional schemes and changing the

market scenario.

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Nowadays with the advent of financial scheme by the commercial Bank

and Hire purchase companies, the four-wheeler company has been given new

dimension. But with the introduction of new models, the greater market opened

up for all the motorcar companies, which ultimately led to a stiff competition

between the brands.

Today all the companies namely Hyundai, Toyota, Hyundai, TATA,

Skoda, Chevrolet, Ford, Mahindra etc. are trying to grab the market. Maruti is

enjoying good reputation in motorcar segment in Tezpur market for its after

sales service. According to research, Maruti is the largest car manufacture in

India.

1. To study their satisfaction level of customers of different cars available in

Tezpur.

2. To study the importance of various attribute which effect the purchasing

decision of customers in regard of cars.

3. To study the awareness level of different cars in Tezpur.

4. To study the importance of dealer and their influence in marketing/sale

for cars in Tezpur.

5. To study consumers buying behaviours.

6. To find out the expectation of the existing possessing and prospective

customers of the company.

7. To study the impact of media on the customers.

8. To study the satisfaction level of the customers on overall performance

and after sale service of their existing cars.

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9. To study different promotional scheme they expect for purchasing a new

car.

Various segments of Maruti are:

The entire model is being used in Tezpur, Maruti Motor is trying to reach

every nook and corner of the North East, it has dealers and sub-dealers in every

part of the North Eastern India. The service provided by them are quite

satisfactory to the consumers, which has helped them to achieve good reputation

in the market.

The four-wheeler companies have divided the market into various

segments, which have helped them to meet the demand more easily. Suppose,

the customer who demand a unique stylish car, for them Maruti has produced

SX4, Grand Vitara which is considered as one of the most extraordinary car in

the market.

Maruti Udyog Limited (MUL) was established in February 1981, though

the actual production commenced in 1983 with the Maruti 800, based on the

Suzuki Alto kei car which at the time was the only modern car available in

India, its' only competitors- the Hindustan Ambassador and Premier Padmini

were both around 25 years out of date at that point. Through 2004, Maruti

Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India

and various several other countries, depending upon export orders. Models

similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by

Suzuki Motor Corporation and manufactured in Pakistan and other South Asian

countries.

Today Maruti is coming up with various sales promotion works to induce

more sales in the city. They also spend a good lot of money in advertisement

like TV advertisements, Hoarding, Banner etc. This help to in increase the sales

of the product.

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METHODOLOGY

(1) Preliminary Survey: - The project study was undertaken general

discussion and informal interview with the customer both possessing and

prospective. The objective were set mainly to gain an idea about

consumers buying behaviors of cars.

(2) Data Collection: - The data were collected from primary sources. The

primary data were collected from the customer both possessing and

prospective. Surveying method through personal or direct interviews with

the help of questionnaire-designed specification for the purpose did this.

(3) Questionnaire Design:- Primary data was collected through well framed

questionnaire. The questionnaire had two parts, one part for possessing

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customers and other part for prospective customer. Question was framed

keeping mind. The various information required as per the objectives.

Each question was directed towards getting information regarding Maruti

as well as other competitors. The questionnaire contained both open

ended and close ended question. Also question with multiple-choice

answers, degree of importance scale etc. were included. All effort were

made to that the questionnaire was simple and precise and also adequate

care was taken about the language, structure and format of

questionnaires.

(4) Sample Size: The sample was selected on the basis of simple random

sampling. A total 50 customer surveyed where 44 were processing and 6

were prospective customers.

The total sample size in segmented under the following zones:

Zones:

1. Isum Motors.

2. Main Road, Tezpur.

3. M.D.Road.

4. Various business establishments in Tezpur.

(5) Analysis: The data collected from the customer were analysed using

different standard statistical tools and techniques each of the question

were analyzed to find out the purchasing behaviour of different cars with

reference to Maruti motors.

(6) Scope: The scope of the project is define by the objective of the study it

self. If the study was basically for the fulfillment at its objectives. This

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means that scope of this project study is restricted to consumers buying

behaviours of Maruti cars among the other brand in the market.

Scope of this project is also restricted to the area of field survey in

Tezpur. The study does not include any other area like finance personnel

product etc.

(7) Limitations: With many point the study of this project suffered from

many limitation also, likewise as the sample is low I cannot analyze

many respondent, as the survey may also suffer from bais results.

(8) Recommendation: Recommendation were made or the based of finding

drawn from the project analysis.

(9) Conclusion: Conclusion were made on the finding and analysis of the

survey.

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ANALYSIS OF THE QUESTIONNAIRE

As the consumers play a key role in the today’s market; their preferences,

attitude and perceptions are of utmost value to the marketers keeping all the

objectives of the study in mind and to give a proper dimension to the study

undertaken, a comprehensive consumer survey was undertaken with the aid of a

well-framed questionnaire. The detail of the findings have been fragmented as:

Demographic profile segment: The analysis on demographic profile has been

done on the basis of Age group, Occupation and Monthly income:

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Q. No 3. Occupation Considered

This question was put forwarded to extract a profile factor of the respondent.

The prime objective of this question was to know the occupation of the

respondent. Though this it can be analysed that which segment of people have

like for which brands. This question helped to extract the background of the

customers owning and not owning cars.

Table No. 1.1

Occupation Percentage People

Service 30% 15

Business 40% 20

Students 20% 10

Others 10% 5

Diagram 1.1

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From the responses obtained, it was found that the most of the Businessman seemed to score high followed by service holder in possession of cars.

Q. No 4. AGE GROUP

The age group, which is one of the important roles in the buying behaviour of

the customer, was extracted through this question. It was attempted to cover

most of the age groups in various slabs.

Table No. 1.2

Age groups Percentage

20-25 2%

26-30 8%

31-35 24%

36-40 40%

Above 40 years 26%

Diagram 1.2

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Age Group

The responses revealed that maximum number of car possessed by respondents in the age group of 36 – 40. Age group above 40 years followed it. The least was found to be in the age group of 20-25 years.

Q. No 5. INCOME PROFILE OF THE RESPONDENTS

Since the income of a respondent is also important in making decision to buy a

car, therefore, this question was framed to extract their level of income. The

slabs of income considered for the purpose were ranging from Rs.15,000/-

(minimum) and above Rs.45,000/-.

Table No. 1.3

Income slab Percentage

Rs.15,000 – Rs.25,000/- 44%

Rs.25,000 – Rs.35,000/- 30%

Rs.35,000 – Rs.45,000/- 18%

Above Rs.45,000/- 8%

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Diagram 1.3

Out of the total respondents, most of them were found to be in the income slab of Rs.15,000 – Rs.25,000/- followed by respondents in the age group of Rs.25,000 – Rs.35,000/-.

Q.NO. 6. AWARENESS ON BRANDS OF CARS

The respondents in response to this question revealed the awareness about the

existing brands of cars in the market. To reveal it, they were given options of

various brands that are playing in the market of Tezpur.

Table No. 1.4

Brands Percentage

Hyundai 100%

Maruti 100%

Chevrolet 76%

Toyota 100%

Skoda 70%

Ford 100%

90

TATA 100%

Mahindra 100%

Diagram 1.4

It is seemed that almost every brand is well aware by thr respondent.

Q. No. 7. MEDIA OF AWARENESSAn endeavor was made to know the source of information or the awareness of

different brands of existing cars in the market of Tezpur, to the customers. To

respond to this query, respondents were opted with various sources of media.

Table No. 1.5

Media Percentage

Newspapers 82%

Magazines 64%

T.V. Advertisement 100%

Trade Fairs 20%

Friends 80%

Family Members 64%

Others 46%

Diagram 1.5

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Of the different media, TV Advertisement ranked top in creating brand

awareness among the perceptual mindset of the customers, which in turn effects

the buying behaviour of a customer.

Q. No. 8. Do You Own a Car

Ownership of car was the chief extraction of this question. To this question only

88% of the respondents were found positive whereas the remaining 12% were

not in possession of a car of their own.

Table No. 1.6

Media Percentage

Yes 88%

No 12%

Diagram 1.6

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The question revealed that, of the 50 respondents only 44 of them owns a car whereas rest 6 do not possess car.

PART A

Questions of Part A were targeted to those respondents who own a car.

These questions were put forwarded to know the brand of possessed by them,

attributes they look for, payment patterns etc. The deliberation of each questions

are discussed below separately below:

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Q No. 1. Most of the brands of cars existing in the market of Tezpur were

given to choose from by the respondents. Accordingly, respondents made their

responses favoring mostly for Maruti followed by Hyundai.

Table 2.1

Brands Percentage

Hyundai 27.27%

Fiat 0%

Maruti 40.90%

Chevrolet 4.5%

Toyota 0%

TATA 20.45%

Mahindra 4.5%

Skoda 0%

Ford 2.27%

Diagram 2.1

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Q.No. 2. This question was attempted to extract the factors, which plays a

major role in the buying behaviour of the customers. It was attempted to cover

most of the factors to make this extract more effective and productive.

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Table No. 2.2

Sl. No.

Attributes Very Important

Important Not so important

a) Price 39 5

b) Financial assistance / credit facility 40 4

c) Fuel efficiency 44

d) Style / looks 35 5 4

e) Comfort and convenience 38 6

f) Durability 37 6 1

g) Brand image 20 18 6

h) Advertising 6 19 19

i) After sales service 44

In response to this question, as revealed by respondents, the attribute “fuel

efficiency” and “after sales service” ranked top followed by “financial

assistance

Diagram2.2

Q. No. 3. A major factor “Influence”, which induces a person to buy

anything (herein referred to as car) was revealed by the respondents through

their response to this question.

Table No. 2.3

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Source of Influence Percentage

Self 48%

Family 28%

Friends 10%

Colleague 2%

Others 0%

Don’t own a car 12%

Diagram No. 2.3

From the responses obtained, it is found that self-motivation is the major role in purchasing a car. Of the 50 considered respondents

Q. No. 4 The price factor and payment mode also plays a pivotal role in the

buying behaviour of a customer. Respondents, being customers to respective

companies, also looks for the most convenient mode of payment. Therefore, this

question was designed to know their preferred mode of payment.

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In response to this query with four different options like (a) Cash

(b) Bank finance (c) Private finance (d) Others, respondents numbering 21

opted to go for Bank Finance, for the purpose of low and reducing balancing

method of charging interest, whereas 19 respondents opted to go for private

finance for their lesser paper work despite interest being flat. Of the rest 1 opted

for cash and remaining 3 opted for other modes of purchase.

Table No.2.4

Options No of respondents

Cash 1

Bank finance 21

Private finance 19

Others 3

Diagram 2.4

Q. No. 5 This question was designed to know the overall performances that

were being experienced by the respondents from their cars. Also, an open-ended

part in question was offered to reveal the exact kind of problem that they have

experienced from their cars.

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80% of respondents were satisfied with the overall performance of the car whereas remaining 20% were partially or were not satisfied with their car’s performance.

Table No. 2.5

Options Percentage

Yes 80%

No 20%

Diagram No. 2.5

Q. No. 6 Another major factor playing the role in decision making of buying or

buying behaviour of respondents was “After sales service”. So, this question

was designed to know the satisfaction level on the after Sales service of

respective brands, received by the respondents, which in other words are

considered as the customers of respective brands.

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Table No. 2.6

Options Percentage

Yes 100%

No 0%

Diagram No. 2.6

Q. No. 7 This question was designed to know the next option, if any respondent

is willing to go for a new one. To this query, 27.27% respondents were

willing to go for latest model of cars whereas the remaining were happy

to be contended with what they have.

Table No. 2.7

100

Options Percentage

Yes 27.27%

No 82.73%

Diagram No. 2.7

Q. No.8 In terms of technical feature expectation of the respondents, it was

found that all the technical feature are expected by the customers.

Table No. 2.8

Sl. No. Technical featuresYes

No

1. High engine power 100% 0%

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2. High fuel efficiency 95% 5%

3. Brakes 100% 0%

4. Tyres & Wheels 80% 20%

5. Power Steering 98% 2%

6. Suspension 100% 0%

7. Power window 80% 20%

Diagram 2.8

Q.No.9. This question was targeted to extract if they recommend Maruti to

others. To this response 10 respondents out 12 (possessing Maruti

brands of cars) are recommending whereas remaining 2 are not doing

so.

Table No. 2.9

Options No of respondents

Yes 10

No 2

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Diagram No. 2.9

PART – B

This part was intended for those respondents who were not possession of a four-wheeler car. To this part only 6 respondents responded.

Q.No.1 The never-ending choosy human beings were asked to extract their

preference of brands when they go for their new car. To this question

only two respondents preferred to go for Hyundai brand of cars whereas

3 opted for Maruti and remaining 1 opted for TATA.

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Table No. 3.1

Brands No of respondents

Hyundai 2

Fiat 0

Maruti 3

Chevrolet 0

Toyota 0

TATA 1

Mahindra 0

Skoda 0

Ford 0

Diagram 3.1

Q.NO.2 To know the specific model of cars that the respondents would like to

go for in near future are presented herein below in tabular form. The responses

were obtained in the form of an open-ended response.

Table No. 3.2

Models No of respondents

Hyundai’s Santro l 2

Maruti’s Wagon R 1

Maruti’s 800 2

TATA’s Indica 1

Diagram No. 3.2

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Q. No.3: This question was attempted to extract the factors, which plays a

major role in the buying behaviour of the customers. All the factors were found

to be important for the respondents.

Table No. – 3.3

Sl. No.

Attributes Very Important

Important Not so important

a) Price 6b) Financial assistance / credit

facility6

c) Fuel efficiency 6d) Style / looks 6e) Comfort and convenience 6f) Durability 6g) Brand image 6

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h) Advertising 6i) After sales service 6

Diagram 3.3

Q. No. 4: The price factor and payment mode also plays a pivotal role in the

buying behaviour of a customer. Respondents, being customers to respective

companies, also looks for the most convenient mode of payment. Therefore, this

question was designed to know their preferred mode of payment.

In response to this query with four different options like (a) Cash (b) Bank

finance (c) Private finance (d) Others, Out of a total of six respondents, one

respondent preferred cash, two respondents preferred Bank finance and three

respondents preferred private finance.

Table No. 3.4

Options No of respondents

Cash 1

Bank finance 2

Private finance 3

Others 0

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Diagram – 3.4

Q. No. – 5 : This question was framed to know about the respondents interest

on the various promotional schemes, and was found that out of 6 respondents

100% were interested for the different promotional schemes which is shown in

the following table.

Table – 3.5 (a)

Options No of respondents

Yes 6

No 0

Table 3.5 (b)

Sl.No. Scheme Very

Important

Important Not so important

1 Price discount 6 -- --

2 Exchange offer -- 4 2

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3 Free gift -- 3 3

4 Installment facility 4 2 --

5 Interest free

installments

6 -- --

Diagram No. 3.5 (b)

CONCLUSION

Since Indian Automobile market is continuously in the prowl of surging as a

major car manufacturer, people are purchasing car as there is increase of income

of common people as well as change in tastes and preferences of consumers. It

is important for the car manufacturers and car dealers to be able to understand

the different factors affecting the extent in car purchasing behaviour. People are

more conscious about the on spot information provided about various cars who

serves according to the needs and wants of the customer. The type of

technology used and the wider reach of the service stations also affect the most

on car purchasing decision. While government obligations and various policies

like import duties, custom exemptions is seen as second most affecting driver of

purchase of cars. Factor 3 includes family needs; brand image; income level;

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special family programs/events like Anniversary, Birthday; insurance facility;

credit card acceptance; car accessories affects customers car purchase decision

causing a variance of 3.080.This shows that importance of family decisions,

special occasions in family and the various services provided by car dealers.

includes installment payment facility; location of the car dealer shop; looks;

availability of service station showing customers accessibility to the service

provided. Factor 5 shows the impact of various promotional activities and extra

care taken by car dealers. Factors 6 shows the impact of suggestion provided by

family members and peers as well as price and after sales service provided.

includes the infrastructural benefits of the shop and the variety of cars it

stores .The last but not the least ones shows the impact of factors of technical

specifications of the car and the festive season offersThis study was conducted

to find out the consumer buying behaviour of motorcars in special reference to

the Maruti brand in Tezpur. The findings and analysis revealed many

advantages as well as disadvantages for the Maruti India Pvt Ltd.

Though the Maruti is the faster growing company and leading in the

market facing a stiff competition from Hyundai and Tata motors in the Tezpur.

It has been observed that Maruti adopted many promotional strategies and

company’s marketing channel is also satisfactory.

Now a days people are most aware about after sales service. The dealers

also expect Maruti has over come this problem and facilities should be

improved for meeting the after sales service requirement effectively.

The majority of customers expect loan or installment facilities. The

Maruti has joined hand with State Bank Of India and many private bank to

promote this facilities.

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As most of the existing and prospective customers adults, Maruti should

introduces stylish Motor cars which compete its competitors product.

But Maruti to meet the expectations of new generation people who are the

prospect, or customers has recently introduce Ritz, SX4, WagonR hoping to

fulfill the demand of the new generation.

As this study was conducted for educational purpose with the aim to give

necessary information to the organization, any mistake by the researchers

should be overlooked considering his inexperience in the field of marketing

research.

LIMITATION

The study suffers from many limitations of this report are enumerated as the

following:

Firstly, being the whole project dependent on primary data, the study has gained

vulnerability.

Secondly, the survey was restricted only 50 respondents in whole Tezpur and as

such may not be true representative of the entire Tezpur.

Thirdly, the major constrain was the time factor, as the study have to be finished

within the stipulated time period.

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Fourthly, lack of interest and unenthusiastic response may have allowed

biasness to creep this report.

Finally, lack of conclusions, which have been drawn, are subject to criticism at

any stages of its analysis and presentation. This report may not provide the best

possible market scenario and the efforts can always be made to have this project

report more effective and useful.

RECOMMENDATIONS

Based on the findings drawn from the project’s analysis, certain

recommendation need to be made as regards to the future course of action

Maruti India Pvt Ltd., which can go a long way in improving the Brand

Awareness of the Company in the Motorcars market. The main

recommendations are:

1. Maruti should continue with its range of innovative products. At the same

time try to add value to its existing products so that it can cater to the

present day requirements. As the study reveals that majority of customers

are aged 20 – 40 years the needs and wants should be kept in mind while

designing new products.

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2. There should be proper synchronization between order placed an delivery.

The distribution channel should be enhanced and the models should be

readily available in the market.

3. As the buying decision of the buyer has influenced by himself, company

should target them through demonstration and advertisement.

4. As the market for the financial institutions are increasing, the company

should target them through demonstration and advertisement.

5. Facilities should be provide to the dealers so that they can extend them to

the customers while purchasing this brand.

6. Increase in sales promotion budgets to develop a point of purchase display

and to participate to a greater extent in Trade shows and similar kind of

shows and this will motivate the non-users to try out the products.

7. The company can sponsor local cultural programmes like Bihu festival of

Assam holding Bihu competition at least once in a year and for attracting

the youth it may sponsor sports events also.

8. The company can make charitable donation to different organizations. It can

extend their helping hand to the people hotted by natural havoc like flood,

draught, earthquake etc. to win the hearts of the mass people which will

build a good image of the Company among them.

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9. As the market for the financial institutions are increasing, the company

should come up with various schemes, which will induce them to influence

the customer for the product. This includes offering various gifts, packages

and financial incentives like higher commission as compared to other four-

wheeler companies.

10. Incentives and financial benefits provided to the dealers should be

maximized to maintain their level of satisfaction and motivation.

Annexure

Bibiology

Name of the Author/Publisher Year of Publication Name of the Books

1. Kotler Philip Eighth Edition (1994) Marketing Management

2. RSN Pillai Bhagavathi Thirteenth

Edition(2003)

Modern Marketing

Principle and Practices

3 C.R. Kothari Second Edition (1990) Research Methodology

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Websites:-

http://www.wikipedia.org

http://www.marutisuzuki.com

http://www.google.com

Questionnaire

Respected sir/madam,

I am Management (MBA) student at Sikkim Manipal University. I have been assigned a project in the context of which I am conducting a study on “Customer’s buying Behavior” on Maruti Car in Tezpur, I would like to request you kindly to spare a few minutes for answering some questions. Your answers will be kept strictly confidential and will be used for academic purpose only.

1.Name of the respondent:………………………………………………………

2. Address: ………………………………………… Phone no: ………………

3. Occupation: (a) Service (b) Business (c) Students

(d) Others

4. Age group.

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(a) 20 to 25 years (b) 26 to 30 years (c) 31 to 35 years

(d) 36 to 40 years (e) above 40 years.

5. Monthly income:

(a) Rs. 15,000 to 25,000/-

(b) Rs 25,000 to 35,000/-

(c) Rs. 35,000 to 45,000/-

(d) Above 45,000/-

6. What are the different brands of cars you are aware of?

(a) Hyundai (b) Maruti (c) Chevrolet

(d) Toyota (e ) Skoda (f) Ford

(g) TATA (h) Mahindra

7. How did you aware of different brands of cars?

(a) News papers (b) Magazines

(c) T.V. add (d) Trade fairs

(e) Friends (f) Family members

(g) others please specify………………………………………………..

8. Do you own a car?

(a) Yes (b) No.

If yes please respond to Part A.If no please respond to Part B.

PART A

(1) Which Brand of cars do you posses ?

(a) Hundai (b) Fiat (c) Maruti

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(d) Chevrolet (e) Toyota. (f) TATA

(g) Mahindra. (h) Skoda (i) Ford

(2) How important were the following attributes before you decide to buy the existing car?

Sl.

No.

Attributes Very

Important

Important Not so

important

a) Price

b) Financial assistance / credit facility

c) Fuel efficiency

d) Style / looks

e) Comfort and convenience

f) Durability

g) Brand image

h) Advertising

i) After sales service

j) Millage

(3) Who influence your decision in purchasing cars?

(a) Self (b) Family

(c) Friends (d) colleague

(e) Others. (f) Don’t own a car

4) What was your mode of payment while purchasing the car ?

(a) Cash (b) Bank finance (c) Private finance (d) Others

Please Specify ………………………………………………………….

5) Are you satisfied with the overall performance of your existing car?

(a) Yes (b) No

If No, Kindly specify the problem ……………………………………………………

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…………………………………………………………………………………………

6) Are you satisfied with the after sales service of your car ?

(a) Yes (b) No

If No, Kindly specify the problem ………………………………………………………………………………………………………………………………………………

7) Are you planning to purchase a latest model of car ?

(a) Yes (b) No

If Yes, Kindly specify the Brand ……………………………………………………

8) Which of the following technical features do you accept from your new car that dose not exist in the old car? Sl. No. Technical features Yes No

1. High engine power

2. High fuel efficiency

3. Breaks

4. Tyres & Wheels

5. Power Steering

6. Suspension

7. Power window

9) For the possessing customers of Hyundai cars, do you recommend others to purchase Hyundai cars?

(a) Yes (b) No.

PART B1) Which brand of cars would you like to purchase in near future?

(a) Hyundai (b) Fiat (c) Maruti

(d) Chevrolet (e) Toyota. (f) TATA

(g) Mahindra. (h) Skoda (i) Ford

2) Which model of cars would you like to purchase in near future ?

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Model Name ………………………………………………………

3) Please indicate relative importance of the following factors, which you will consider before purchasing your new car?

Sl. No.

Attributes Very Important

Important Not so important

a) Priceb) Financial assistance / credit facilityc) Fuel efficiencyd) Style / lookse) Comfort and conveniencef) Durabilityg) Brand imageh) Advertisingi) After sales service

4) What mode of finance will you prefer for purchasing a new car ?

(a) Cash (b) Bank finance (c) Private finance (d) Others

5) Do you want avail any promotional scheme while purchasing the new car ?

(a) Yes (b) No

If yes please indicate the relative importance of the following promotional scheme.

(Please put a tick in each row)

Sl No. Scheme Very important

Important Not so important

a) Price discountb) Exchange offerc) Free giftd) Installment facilitye) Interest free installment

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Thanking you,

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