MBA PROJECT BOYZ

IMPACT OF SMALL CAR SEGMENT ON TWO

WHEELER INDUSTRY

PROJECT

ABSTRACTS

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The growing mobility needs of the people in India augur well for two and four

wheeler industry. The cost advantage that India offers with respect to product development is

fast establishing the country as an R&D hub. In addition, the credibility that India has gained

as a cost effective manufacturing base for both small cars and two-wheelers is fuelling

creation of capacities by all major manufacturers in the country. The researcher wants to

know about the impact of small low budget cars in two wheeler sales.

In this present scenario the usage of vehicles particularly in two-wheeler on roads by

the people is increasing day by day. For the past four years the two-wheeler industry had

seen a tremendous growth in Indian market, this indicates its increasing in its usage. But the

arrival of new small cars at cheaper rate in the market is attracting the consumers rather than

two wheeler.

The main objective of this study is to find out the impact of small car segment in two

wheeler industry and to know about the reasons for impact on two wheeler industry.

The researcher had done descriptive research for studying the attitude of the

respondents. A simple descriptive research design is used when data are collected to describe

persons, organizations, settings, or phenomena. Probabilistic sampling design has been used

to conduct the research. Sampling unit is the basic unit containing the elements of a target

population. The sampling unit of the study is two wheeler consumers. The study contains a

sample size of 100 two wheeler consumers. Random sampling is adopted as sampling

technique. It is also known as probability sampling where each and every item in the

population has an equal chance of inclusion in the sample and each one of possible samples

in case finite universes, has the same probability of being selected. The data was collected

from the both primary and secondary sources. Statisticals tools used as follows:

Percentage Analysis

Chi-square Test

Most of the respondents of this research have told that they are willing to move to

small cars. This shows the dynamic mind of the people, who are interested in small cars.

Lower price is not only the reason. Other than this, the design tempts the person to buy.

The face of the Indian automobile market has changed tremendously following

economic liberalization in 1991 and will change further with the introduction of Tata Nano.  

Analysts say domestic growth rates for small cars have been boosted by the government’s

effort to tackle the fallout of the financial meltdown in the second half of 2008. This shows

MBA PROJECT BOYZ

that the dreams of middle class have returned to real. This will lead to cut down the sales

figure of two wheeler. This study helps to reveal the above explained points. Anticipating the

new arrival small budget cars will help the two wheeler industry.