Professional Documents
Culture Documents
Doctor Of Philosophy
In
COMMERCE
By
SHEETAL
Under the Supervision of
Prof. A. CHATTERJEE
Department of Commerce,
University of Lucknow,
Lucknow
DEPARTMENT OF COMMERCE
UNIVERSITY OF LUCKNOW
LUCKNOW, U.P., INDIA
2014
WITH REGARDS
T O MY
PARENTS
DEDICATED
TO
PUSHPENDRA
CERTIFICATE
This is to certify that the thesis entitled A Study of Consumer
Behavior Towards Premium Passenger Car Segment in U. P. in
Post-Liberalization Era (A Case Study of KAVAL Towns) being
submitted for the award of Ph.D. degree in commerce is the bonafide
work of Ms. Sheetal, carried out under my supervision. She has
fulfilled the requirements for the degree of Doctor of Philosophy in
Commerce of the University of Lucknow, regarding the nature and the
prescribed period of work.
Date:
Supervisor
Prof. A. Chatterjee
DECLARATION
I hereby declare that the thesis entitled, A Study of Consumer
Behavior Towards Premium Passenger Car Segment in U. P. in
Post-Liberalization Era (A Case Study of KAVAL Towns)
submitted by me to the University of Lucknow for the award of
Degree of Doctor of Philosophy is my own and that it has not been
submitted previously to any other institution including this University
nor has been published at any time before.
Date:
Sheetal
Department of Commerce
University of Lucknow
Lucknow
ACKNOWLEDGEMENT
My
endeavour
shall
be
incomplete
without
the
Date:
Place: Lucknow
(Sheetal)
TABLE OF CONTENTS
Chapter No.
Details
Pg No.
Chapter I
Introduction
1-28
Chapter II
Literature Review
29-59
Chapter III
Research Methodology
60-73
Chapter IV
74-112
Chapter V
113-170
Chapter VI
171-224
Future
Scope
and
225-239
240-253
LIST OF TABLES
S. No.
Details
Pg
No.
Table 1.1
12
Table 1.2
14
Table 3.1
Sample Composition
66
Table 3.2
66
Table 3.3
67
Table 3.4
68
Table 3.5
69
Table 3.6
70
Table 3.7
72
Table 5.1
119
Table 5.2
124
Table 5.3
129
Table 5.4
135
Table 5.5
141
Table 5.6
146
Table 5.7
151
Table 5.8
155
Table 5.9
160
164
168
170
Table 6.1
173
Table 6.2
174
Table 6.3
175
Table 6.4
177
Table 6.5
179
Table 6.6
180
Table 6.7
182
Table 6.8
184
Table 6.9
189
192
194
Decisions
Table 6.12 Satisfaction Level with the Sales/Servicing Provided
196
by the Dealers
Table 6.13 Satisfaction Level with Current Car
198
200
203
204
cars
Table 6.17 Characteristics of Premium Car Buyers
206
207
208
Customers
Table 6.20 Key Selling Points of Premium Cars
209
216
218
Showroom
Table 6.23 Average No. of Footfalls in the Premium Passenger 219
Car Segment
Table 6.24 Percentage Increase of Footfalls during Festive 221
Season
Table 6.25 Conversion Rate of Customers
223
LIST OF FIGURES
S. No.
Details
Pg. No.
Figure 1.1
Figure 1.2
14
Figure 1.3
22
Figure 1.4
Xcent (Hyundai)
23
Figure 1.5
24
Figure 1.6
24
Figure 2.1
45
Figure 3.1
64
Figure 3.2
67
Figure 3.3
68
Figure 3.4
69
Figure 3.5
70
Figure 3.6
71
Figure 3.7
Years
of
Dealers
Experience
wise
72
Distribution
Figure 4.1
98
Figure 5.1
138
Figure 6.1
173
Figure 6.2
176
Figure 6.3
178
Figure 6.4
180
Figure 6.5
Mode of Payment
181
Figure 6.6
197
Figure 6.7
199
Figure 6.8
201
Figure 6.9
203
Premium Cars
Figure 6.10
Occupational
Profiles
of
Maximum
208
217
the Dealers
Figure 6.12
218
Dealers Showroom
Figure 6.13
220
221
Festive Season
Figure 6.15
223
PREFACE
The Indian automobile sector has emerged as one of the
significantly developing and growing sectors in the last decade. The
automobile industry of India has witnessed a tremendous growth in all
sections, right from two wheelers, three wheelers and passenger car
segment. De-licensing in 1991, brought revolutionary changes in the
industry and provided well deserved and timely growth impetus to the
respective industry. This attracted foreign auto giants to set up their
production facilities in the country in a bid to take advantage of
several benefits provided by the industry. The automobile sector
experienced a drastic change in the car segment with the number of
entrants like Toyota, Honda, Ford, GM etc. Indian auto makers like
Tata, Mahindra and Mahindra, Hindustan Motors and MUL are given
a tough run for their money by the foreign players.
A number of premium car brands competing with each other
have left the consumer with a large no. of alternatives to choose from.
The presence of large number of alternatives in this segment is the
important factor in studying the consumer behaviour. The rise in
disposable income, wide choice of models and easy availability of
finance will drive growth in premium passenger car segment and
future looks even brighter. The data collected and analyzed to bring
profitable insights for the marketers. Various factors and motivators
that derive the purchase behaviour of the mass have been compiled
through primary data and the changes in the outlook of the
consumers mindset have to be considered carefully by the marketers.
This thesis is an exhaustive research to identify the consumer
behaviour in premium car segment of automobile industry in UP.
Uttar Pradesh has become the main avenue with potential for
consumption of variety of products and services.
As far as Consumer behaviour is concerned it is the study of
use and disposal of products as well as the study of how they are
purchased. Having a better understanding of consumer behaviour will
help firms to get survival against its competitors. Understanding of
consumers behaviour enhances the marketers ability to predict the
consumers
acceptance
of
their
various
informational
and
Chapter-I
INTRODUCTION
Chapter-I
INTRODUCTION
It is the customer who casts the vote that determine how big a
company would be.
(LCVs),
multi-utility
vehicles
(MUVs)
and
heavy
CONSUMER BEHAVIOUR
Consumer Buying Behavior refers to the buying behavior of the
ultimate consumers of the products or services. Knowledge of the
consumer behavior is very essential for designing any marketing
strategy. Understanding and adapting to consumer motivation and
behavior is not an option it has become a necessity for competitive
survival. Whenever, the marketing decisions are made without a real
research of the consumers behavior, based only on some assumptions
and some economic or marketing ideas used previously, and the result
5
OTHER STIMULI
PRODUCT
ECONOMIC
PRICE
TECHNOLOGICAL
PLACE
POLITICAL
PROMOTION
CULTURAL
BUYERS CHARACTERISTICS
CULTURAL
PROBLEM RECOGNITION
SOCIAL
INFORMATION SEARCH
PERSONAL
EVALUATION OF ALTERNATIVES
PSYCHOLOGICAL
PURCHASE DECISION
POST PURCHASE BEHAVIOUR
BUYERS DECISION
PRODUCT CHOICE
BRAND CHOICE
DEALER CHOICE
PURCHASE TIMING
PURCHASE AMOUNT
11
1970-1984
1985-1995
1996-2000
2001-2010
(Source- SIAM)
12
13
Domestic sales
861,337 (2012-13)
Hyundai Motors
382851 (2012-13)
Tata Motors
Ford India
87,600
172 241
BMW India
9375
Mercedes-Benz India
7138
2393
Volvo
811
Audi India
9003
(Source: http://www.oica.net/category/sales-statistics)
Figure 1.2 Passenger Car Sales Growth
(Source: OICA)
SIAM, the Society of Indian Automobile Manufacturers of
India, has categorized the Car industry into six segments from A1 to
14
<3.4 meters
2. A2 (Compact)
3. A3 (Mid-size)
4. A4 (Executive)
5. A5 (Premium)
4.7 to 5 meters
6. A6 (Luxury)
>5.0 meters
(Source: SIAM)
Premium cars which now accounts for a big share of the Indian
passenger car market are the subject of this thesis based not only on
the economic importance of this product but also the relative neglect
of this subject in the academic literature. Apart from the significance
of actual manufacturing, the premium car is significant for its impact
on lifestyle and consumption as the car satisfies both the basic
consumer needs for transportation as well as a variety of wants.
Premium cars tend to be socially consumed. Wealthy consumers go
for them not only for the cars good quality and technical attributes,
but also for non-technical attributes such as the perceived image of the
car marquee in order to demonstrate their wealth and status (Time,
1999).
PREMIUM CARS
A premium car is referred to as an automobile with size
between that of a compact and a full size car. The price range is
between 7 and 15 lakhs. These cars have a passenger capacity
between 4 to 6 passengers. Several foreign companies with a global
presence are manufacturing and marketing premium segment cars in
India. A working definition of a premium car for this thesis is
15
developed being, a car in the Price range between Rs. 700,000 to Rs.
15,00,000 with premium specification produced in sufficient volume
to meet the demands of a significant customer segment.
The credit of manufacturing of premium cars goes to
companies like- Fiat India, Ford, General Motors, Hindustan Motors,
Hyundai, Maruti Udyog Limited, San Motors and Tata Motors etc.
The premium car market in India has registered a fair amount of
growth in the last few years. A premium car is a luxurious automobile
which effectively blends cargo capacity and passenger space for the
sake of style and grandeur.
16
17
18
Changing
demographics in India will see auto sales scale new heights. The
increasing number of educated people entering the working age
population will provide a fertile environment for a buoyant economy
and healthy demand for private vehicles.
The Indian economy has grown at an average rate of around 9
percent over the past five years and is expected to continue this
growth in the medium term. This is predicted to drive an increase in
the percentage of the Indian population able to afford vehicles. Indias
car per capita ratio (expressed in cars per 1,000 populations) is
currently among the lowest in the worlds top 10 auto markets
(KPMG, The Indian Automotive Industry Evolving Dynamics).
The future of the industry in the medium term based on current
trends is analyzed here along with two broad themes in the global
automobile industry:
Growth
Consolidation
19
GROWTH
In the context of the unique characteristics of the Indian automobile
market, growth is expected to be driven by the following:
Affordability- while quite a few new vehicles launched in
the Indian market have been developed locally, vehicle affordability
remains a significant concern. Although the price of an average
motorcycle in India (about USD 900) is comparable to the average per
capita income, the prices of passenger cars have a long way to go.
Although the entry level car (Nano) is priced at around USD 2,500,
the passenger car market could grow multi-fold if there is a breakthrough of another price level in the coming years.
Rural Market- The automobile industry has yet to fully tap
into demand from rural areas. Previously, consumers from rural areas
would need to go to automobile dealerships in towns and cities for
their vehicle purchases. However, in recent years, market players have
made overtures to rural consumers, with encore aging sales. While the
Indian automobile industry seeks to double total sales on the back of
steady growth over the next decade, these relatively under tapped
demand segments (rural markets, women, youth and luxury cars) are
expected to play a significant role.
CONSOLIDATION
As India is on road to become one of the worlds largest automobile
markets, it is interesting to look at its evolution over the years. Indias
attraction as a destination for automobile manufacturers has been
underscored by the number of new automobile producers entering the
country over the last two decades. Unlike in several markets, the
number of manufacturers has continued to grow in India over the
20
(Source: www.thehindubusinessline.com)
The other key trend, which emerged at the auto show this year
was the interest shown by automobile companies in equipping newer
vehicles with automatic transmission (AT) technology. Maruti Suzuki
slashed prices of AT variants by up to Rs 2 lakh launching automatic
manual transmission variants of the Celerio with prices starting at Rs
4.29 lakh (ex-showroom, Delhi). Tata Motors and Hyundai Motor
India are planning to introduce products with advanced automatic
manual transmission systems.
22
(Source: www.zigwheels.com)
in compact cars Bolt and Zest, said the company would have more
offering in the petrol segment as well.
(Source: www.overdrive.in )
(Source: www.autocarindia.com)
24
OBJECTIVES
The objective of this study was primarily to investigate the consumer
behavior towards premium passenger car. Supportive objectives are:
1. To analyze the individual pre-purchase search strategies in the
state of Uttar Pradesh.
2. To examine the factors motivated the premium car owners to
buy their car.
3. To study the role of sources of information influencing the
purchase decisions of the car owners.
4. To study the role of reference groups in influencing their car
purchase decisions.
5. To
study
the
premium
car
consumers
post-purchase
HYPOTHESIS
1. Behavior of buyer is always influenced by social and economic
status, family requirements and their primary necessity of
transportation etc.
27
28
Chapter-II
LITERATURE REVIEW
Chapter-II
LITERATURE REVIEW
This chapter reviews concepts and theories by researchers that
are highly related to the area of study. The chapter provides a critical
analysis of the views and insights of various researchers on the subject
area. The chapter starts by explaining the basics of the study, being
consumer behaviour. Consumer behaviour for premium passenger
cars in Uttar Pradesh is brought to light. The factors that are believed
to effect consumer preference for premium passenger cars are then
discussed. Further, the literature will examine how the Indian car
industry is segmented. The chapter then reviews effects of consumer
ethnocentrism with regard to the evaluation of global brands and local
brands by Indian consumers.
The literature review offers the theoretical background to the
research including definitions, framework, concepts and models.
Definitions of what constitutes consumer behaviour, along with the
consumer decision-making process, will be articulated. Further to the
above, a different view of consumer behaviour will be offered along
with the role and value of possessions.
Piplai
(Research
Entitled:
Automobile
Industry:
Shifting
Strategic Focus)
Piplai (2001) examines the effects of liberalization on the
Indian vehicle industry in terms of production, marketing, export,
technology tie-up, product up-gradation and profitability. Till the
1940s, the Indian auto industry was non-existent, since automobile
were imported from General Motors and Ford. In early 1940s,
Hindustan Motors and Premier Auto started by importing Know-How
29
from General Motors and Fiat respectively. Since the 1950s, a few
other companies entered the market for two wheelers and commercial
vehicles (CVs). However most of them either imported or
indigenously produced auto components till the mid-1950s, when
India had launched import substitution programme, thereby resulting
in a distinctly separate auto component sector. Due to the high degree
of regulation and protection in the 1970s and 1980s, the reforms in the
early 1990s had led a boom in the auto industry till 1996, but the
response of the industry in terms of massive expansion of capacities
and entry of multinationals led to an acute over capacity. Intense
competition had led to price wars and aggressive cost-cutting
measures including layoffs and large scale retrenchments. Indian
companies have started focusing on the price-sensitive consumer.
Utility Vehicles, foreign companies continues utilising their expertise
on technology-intensive vehicles for individual and corporate usage.
Thus, Piplai (2001) concludes that vehicle industry in India has
not gained much from the reforms, other than being thrusted upon a
high degree of unsustainable competition.
intense
competition,
demanding
consumer
preferences,
31
32
33
Shyamala
Mathan
Sankar
(Research
Entitled:
Consumer
analysis,
for
data
analysis,
interpretation
and
recommendations.
Jakrapan Anurit (Research Entitled: An investigation into
consumers towards the purchase of New Luxury Cars in two
culturally distinct countries: The UK and Thailand)
This research is an investigation into consumer perceptions
towards luxury products and exemplified by two luxury car Marques
in two main markets and seeks to explain the brand dominance of
BMW in the individualistic culture of the UK and Mercedes in
communitarian Thailand. This research aims to answer following two
questions:
i.
ii.
of consumer
behaviour
through
an
empirical
allocation and investment pattern in the industry. The import tariff for
the assembled vehicles is 60%. Given the low level of protection both
for the auto components and CKD/SKD kits, this reflects a policy bias
in favour of auto assembles.
These are few of the recommendations provided by the authors.
It has been emphasised to work out for the several constraints, e.g. to
strengthen R&D and design capacity, skill shortages, Indias current
levels of tariff on capital goods, higher material goods, infrastructure
deficit, for strengthening of the anti-dumping mechanism and lack of
credit availability etc. At last, the authors opine that, the
recommendations
provided
in
this
paper,
if
accepted
and
which call for decisions. Hence, customer decisions are the decisions,
which customers make in the market place as buyers, payers and
users. Typically these decisions include whether to purchase, what to
purchase, when to purchase, from whom to purchase and how to pay
for it. Whether to purchase is the first level of decisions that entails
weighing alternative uses of money and time resources. Sheth et. al
(1999) go on to add that the product/service level choice in both a
whether to and what to purchase decision.
Mental budgeting is an important aspect of customer behaviour
particularly at the decision-making level. Mental budgeting is defined
as, the idea that customers mentally set aside budgets for products
categories which guides their subsequent behaviour as customers
(Sheth et. al, 1999, p. 518). Sheth et al, 1999, postulates the process of
customer decision making as shown in the figure below:
Information
Search
Alternative
Evaluation
Purchase
Post -Purchase
Experience
therefore justified to state that consumers say one thing and then act is
ways that almost of the time appear contradictory. Langford and
Schultz (2006) adopted the above view and through statistical analysis
showed that no correlation between brands favoured and the actual
purchase patterns. This clearly demonstrates that knowing the
perceptions of customers and say is not the same as knowing how
they will react to changes in product attributes or Marketing
messages. Knowing the minds of consumers is only useful if it
deepens ones understanding of their intention, behaviour and to
affect it (Langford and Schultz, 2006).
Hirschman et al. (Research Entitled: The Experimental aspects
of consumption: Consumer Fantasies, Feelings and Fun)
Hirschman (1982), first articulated the experimental view, built
on the evolutionary nature of understanding of consumer behaviour.
This is made evident by the fact that Hirschman (1982) postulates that
the rational choice of consumer behaviour has evolved to a focus on
irrational buying needs. In essence, the enjoyment i.e. fun, fantasies
and feelings (experimental view) offered by a product and the
resultant feeling of pleasure play a vital role in consumer decisionmaking and consumption. In contrast, the information processing
model views the consumers as logical thinkers who solve problems
with purchasing decisions.
However, it is noteworthy that Hirschman (1982) indicated that
while the conventional view of understanding consumer behaviour is
useful and still prevails, the experiential view supplements and
enriches the understanding of consumer behaviour by creating a
broadened view. Most of the consumer research has focused on the
tangible benefits of conventional goods and services i.e. passenger
46
behaviour.
The
research
is
conducted
for
better
placed
on
consumer
retention,
47
customer
relationship
management,
personalization,
customization
and
one-to-one
Marketing.
Bell, Gerald (Research Entitled: The Automobile Buyer after the
Purchase)
Bell (1967) analysed how a customer feels after buying a new
car. He also explores the effect of customers personalities in relation
to salesman persuasion that attempts to find customers post purchase
satisfaction. This research work was conducted in a large urban area
in the western part of United States. During summer months of 1965,
when the data was collected, 289 new cars were sold. Researcher
successfully interviewed 234 persons. It was concluded that person,
with high self-confidence had very little dissonance i.e. they made
their decisions, accepted then and were happy, where the persons with
low self-confidence had low dissonance and they were easily
persuaded by salesmen but in between them, the customers with little
confidence were highly dissonant and were not easily persuaded.
Perhaps, their self-doubts started to influence their attitudes after they
completed their purchase. Lastly, it was stated that persuadability acts
as an indirect cause of buyers dissonance.
Overy, R. J. (Research Entitled: Cars, Roads and Economic
Recovery in Germany)
Overy (1975) examined the nature of effects of motor car
revolution in Germany and demonstrated that the motor road and
motor car has played a significant part alongside rearmament in
initiating and sustaining the upwind in Germany between the year
1932 and 1938. Tables and percentage methods has been used to
demonstrate the data from the year 1920 to 1975 about production of
48
cars and their respective demands. It was observed that Nazi Motor
Plans were not interrupted by the war. They were always on the
developing phase.
Newman, J.W. & Staelin Richard (Research Entitled: Prepurchase Information Seeking For New Cars and Major
Household Appliances)
Newman and Staelin (1972), investigated the amount of
information seek by new car buyers and buyers of major household
appliances. Researcher employed two multivariate techniques,
Automatic Interaction Detector (AID) and Multiple Classification
Analysis (MCA). Data was collected from 653 households who had
bought one or more of the products of interest in 1967 or 1968 prior to
August 1968. Probability sampling was used to choose households in
USA excluding Alaska.
About 217 cars and 435 other major household appliances were
bought in that period. 29 variables were used e.g. level of satisfaction
with old products, number of television sets bought in last ten years
etc. It was found that 40 percent of buyers who had not regularly used
the products before also considered only one brand initially. Results
of the techniques used indicated that the amount of information
sought by many buyers was small, even though information was
accessible. Hence, it was concluded that buyers tried to search for the
things before purchase and unable to get proper information and the
purchase decision might prove to be wrong.
49
50
52
55
celebrity advertisements are not only to build powerful brand but also
assist to increase the recall level coupled with higher sales.
Sheth & Sisodia R.S. (Research Entitled: Consumer Behaviour
in the Future)
Sheth and Sisodia (2004), stated that human behaviour is
changing rapidly. As a result of latest technological revolution,
changes in market place behaviour will naturally follow. Future
consumers will be dramatically different from past and present
consumers. They will be more time-driven, more demanding, highly
individualistic and more information intensive. The success of
marketers will depend of their ability to deliver total customer
convenience. It includes hassle-free search (advertising-on-demand),
hassle-free acquisition (home delivery), hassle-free consumption (e.g.
products with built-in-expert systems to enable maximal value
extraction) and hassle-free disposal. Furthermore, shopping on
demand will include anytime, anywhere procurement as well as
anytime, anywhere consumption. It is concluded that there will
undoubtedly be winners and losers in change process, as well as
leaders and laggards. Marketers, who move proactively now to
redefine the function and rewrite its value equation, will position
themselves for a bright future.
York, Richard (Research Entitled: Cross National Variation in
the size of Passenger Car Fleets: A study in Environmentally
Significant Consumption
York (2003) presented a study on cross national variation in
size of passenger car fleets. Further, he studied multiple factors (e.g.,
demographics, economic and socio-political) that potentially influence
56
59
Chapter-III
RESEARCH METHODOLOGY
Chapter III
RESEARCH METHODOLOGY
This chapter presents the methodological considerations to be
taken into account when studying consumer behaviour for premium
cars. Methodology for a study specifies what information is to be
gathered, what the sources are, and through what methods the data has
been collected and what analysis are to be employed. In order to select
appropriate research design and methods for the study undertaken,
presented chapter looks towards a directional focus for this research.
It allows selecting research methodologies for this study whether it
should
be
"positivist
epistemology
or
positivism"
or
60
RESEARCH PROCESS
a. Research
:Descriptive Research
b. Data Sources
c. Research Approach
:Survey Method
d. Research Instrument
:Questionnaire
e. Type of Questionnaire
:Structured non-disguised
f. Sampling Plan
1.
Sampling unit
2.
Sample Size
3.
Sampling Procedure
g. Contact Method
:Personal Interview
:For
primary
data
the
61
OF
QUESTIONNAIRE
AND
DATA
COLLECTION
The present study is primarily based on primary data. To collect
the primary data survey method has been used through a nondisguised
structured
questionnaire
comprising
questions
of
dichotomous type, multiple choice etc. for car consumers and car
dealers separately. With the help of conceptual framework, the
dimensions already identified were categorized according to the
existing established constructs.
Dimensions in the questionnaire were taken from the previous
studies like Anand (2006), Ekta (2007), Saurabh (2012), Kaushik &
Kaushik (2008), Jakrapan (2002) etc. The questionnaire was pretested
and necessary corrections were done by having meeting with the car
experts like managers of Sunny Toyota, Best Deals for Wheels and
other car dealers in Lucknow. This method of pretesting is to ensure
that understanding of the respondents about the statement used in the
questionnaire, whether addition or deletion of the items are required,
whether changing of words would make the clarity of dimensions or
changing order of the statements would ensure greater coherence. The
questionnaire for dealer and consumer consisted of following
question:
Part 1- This part of the questionnaire for consumer consisted of
personal information about the respondents regarding their Name,
Age, Gender, their Contact Details, Occupation, Educational
Qualifications and Family Income. Whereas in dealer questionnaire
this part consisted of Name, Age, Gender and contact details.
62
63
Step-1
Step-2
Step-3
Step-4
Step-7
Step-8
Step-9
64
65
Table 3.1
Sample Composition
S. No.
Cities
Consumers)
Dealers)
1.
Kanpur
50
2.
Agra
50
3.
Varanasi
50
4.
Allahabad
50
5.
Lucknow
50
Total
250
25
Gender
No.
Number of
Percentage
Number of
Respondents
Respondents
(Car
(Car Dealers)
Percentage
Consumers)
1
Male
209
83.6%
23
92%
Female
41
16.4%
8%
Total
250
100%
25
100%
The number of male respondents (car users) taken for the study
from KAVAL towns was 209 and number of female respondents (car
users) taken from KAVAL towns was 41 respectively. It is clear that
there are 83.6% male in the survey whereas 16.4% are females.
Whereas in dealers sample 92% were males and only 8% were
females.
66
83.60%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
16.40%
30.00%
20.00%
10.00%
0.00%
Male
Female
Table 3.3
Age wise Distribution
S.
Age (in
No.
years)
Number of Respondents
Car
Percentage
Consumers
Car
Percentage
Dealers
1.
Upto 25
2%
2.
26-35
99
39.6%
32%
3.
36-45
71
28.4%
13
52%
4.
Above 45
75
30%
16%
Total
250
100%
25
100%
28.40%
30%
30%
25%
20%
15%
10%
2%
5%
0%
upto 25
26-35
36-45
above 45
Table 3.4
Occupation wise Distribution
S. No.
Occupation
Number of
Percentage
Respondents
(Consumers)
1.
Service
157
62.8%
2.
Professional
49
19.6%
3.
Business
39
15.6%
4.
Agriculture
2%
Total
250
100
70.00%
62.80%
60.00%
50.00%
40.00%
19.60%
30.00%
15.60%
20.00%
2%
10.00%
0.00%
Service
Professional
Business
Agriculture
Table 3.5
Qualification wise Distribution
S. No.
Educational
Number of Respondents
Percentage
Qualification
(Consumers)
1.
Non-Graduate
1.60%
2.
Under Graduate
61
24.40%
3.
Post Graduate
106
42.40%
4.
Professional
52
20.80%
5.
Any Other
27
10.80%
Total
250
100%
30.00%
20.80%
25.00%
20.00%
10.80%
15.00%
10.00%
1.60%
5.00%
0.00%
Non-Graduate
Under
Graduate
Any Other
Table 3.6
Income wise Distribution
S. No.
Family Monthly
Number of
Income
Respondents
1.
Below 50,000
44
17.60%
2.
50,000-2,00,000
163
65.20%
3.
2,00,000-5,00,000
13
5.20%
4.
30
12%
Total
250
100%
70
Percentage
17.60%
12%
20.00%
5.20%
10.00%
0.00%
Below 50000
50000-200000
71
200000-500000
Table 3.7
Years of Dealers Experience wise Distribution
S. No.
Years of Experience
Number of
Percentage
Respondents
1
0-5 years
28%
5-10 years
11
44%
10-15 years
20%
8%
Total
25
100
28%
30%
20%
25%
20%
15%
8%
10%
5%
0%
0-5 years
5-10 years
10-15 years
72
more than 15
years
METHODOLOGY
Commensurate with the objectives of the study to analyze the
consumer behaviour towards premium passenger cars, the survey was
analyzed and categorized by using both the methods i.e. descriptive
and statisticallly as well. The inference and interpretation from the
sample were to be generalized over the concerned population.
Combination of figures and appropriate numerical methods were put
in to explore possible patterns and the data characteristics. Tables and
figures are presented in proper titles, caption to show clear, selfdescriptive, and informative displays of the results.
SPSS
Stastistical Package for Social Sciences (SPSS) version 16 for
windows had been used for carrying out analysis.
73
Chapter-IV
AN OVERVIEW OF THE INDIAN AUTOMOBILE
INDUSTRY AND AUTO POLICY 2002
Chapter- IV
AN OVERVIEW OF THE INDIAN AUTOMOBILE INDUSTRY
AND AUTO POLICY 2002
Automobile sector- the next blue-eyed boy of Indian economy
-
Addi Vardhma
74
extent and with lesser import cost adding to the overhead production
cost, higher productions were possible leading to the start of growing
exports. The phase-4 of economic reforms (i.e. 1988-2006) registered
the triumph of liberalization which kick started the much awaited
reform for the automotive sector paving the paving the way for the
firms which were genuinely waiting for joint-ventures, private
investment with duty-free technology transfer indirectly through
Foreign Direct Investment and directly by importing the new
innovations and technologies. It is during 1990-1995; Maruti Udyog
established itself as the leading passenger car maker. During 19952000, leading international car makers entered the Indian market, a
trend that continues to accelerate till this date.
During this time advanced technology was introduced to meet
the competition, and environmental and safety imperatives. The
automobile companies started investing in service network to support
maintenance of non-road vehicles and auto financing started emerging
as an important driver for demand. Since 2000, significant trade and
investment restrictions were removed to speed up the momentum of
liberalization of the automotive industry. Indigenous production of
cars started since then with an eye to the domestic and international
market needs. Increasing efficiency was achieved with growing
investment in research and development while satisfying the strict
environment standards. As a result an influx of overseas technology
know-how has improved the impetus for improvements in quality and
productivity to a point where many global companies now view India
more favourably than China as a source point for components.
In India, automobile market is mainly dominated by Japanese
and also some multinational companies are currently investing in
India. The major foreign automobile manufacturers in India are
76
Honda, Toyota, Ford, Fiat, Daimler Chrysler, etc. The major Indian
players are Marui Udyog, Tata Motors and Hindustan Motors etc.
passenger and Commercial Vehicles capture around 20% market
share (SIAM statistics for 2006-07). The Indian automobile industry
has long been recognized as a core manufacturing sector with the
potential to drive national economic growth and faster the
development of technological capabilities through its powerful
backwards and forward linkages, and the localization of high value
added manufacturing processes within domestic economics. In recent
years, for instance, the contribution of the automotive industry of
GDP has risen noticeable from 2.77 percent in 1992-93 to 5 percent in
2011-12. The industry is now working in terms of the dynamics of an
open market with a multitude of automobile and auto-component
manufacturing firms. Various socio-economic and political factors
have shaped the development course of the industry along its way
through inception to the present-day dynamic forms.
The evolution of Indias automotive industry under the
influence of these factors could be identified to have occurred in
following different phases:
were
disallowed.
The
proposal,
which
included
78
automotive industry became one of the least innovative slots till 1980s
when Maruti Udyog Limited (MUL) began its operations.
ii) SCENARIO OF AUTOMOBILE INDUSTRY IN POST
INDEPENDENCE ERA:
The realisation of the dream of an independent India had
brought along with itself a challenge of nation building for its leaders.
The dismal performance of countrys industrial sector and agricultural
sector under the shackles of colonial rule had led to object levels of
poverty within the population. In light of the socio-economic
conditions then existing within the country, the newly formed
Government under the prime ministerial leadership of Jawaharlal
Nehru preferred the mixed economy for the nation. This implied that
the decision-making of what to produce, how to produce, how to
distribute was to be shouldered by both the state and the market. In
line with the intentions of the state to intervene in economic
development, Industrial Policy Resolution (IPR) passed in the
parliament of India in 1948. IPR of 1948 framed the approach that the
Government proposed to pursue in the industrial growth and
development. The resolution divided the nations industries into
different categories, depending upon their strategic importance and
specified the role of the state in the development of each category of
industries. In this regard, the automobile industry was classified under
the category of basic industries of importance. As mentioned in IPR,
1948, these industries of basic importance, whose location must be
governed by economic factors of all-India importance, or which
require a considerable investment of a high degree of technical skill
(GOI 2008b, p. 3), were suspected to the regulation and control by the
central Government. The initiatives within the automotive industry
79
were left to the private enterprises, with state playing only the role of
a controller. However, the state reserved the right to intervene and
progressively participate in the industry when deemed necessary. The
IPR, 1948 proposed central regulation on new foreign investments
and stipulated that effective control in future foreign equity
collaborations ought to rest in Indian hands. Further, in accordance
with the objectives laid by IPR 1948, the ministry of industry
prepared its first policy for the automotive industry in 1949. As
determined in the Resolution, the tariff on import of fully built
vehicles was heightened the same year, virtually banning their import
into the country. The foreign assemblers assembling CKD vehicles
were allowed to continue their operations nevertheless. Meanwhile
HML and PAL had already commenced their operations in 1947 and
1948 respectively. PAL assembled Dodge-Forgo trucks, whereas
HML started assembling Studebaker trucks. In 1951, the number of
vehicles assembled/produced in the country reached a figure of
21,577 (Narayana, 1989). The large number of on-road vehicles in the
country by this time had led to the development of a sizeable
replacement and repair sector. IPR of 1948 along with the Industries
(Development and Regulation) Act (IDRA), 1951, created an
elaborated licensing system surrounding the Indian Industries,
including the automotive industry. IDRA 1951, with subsequent
amendments owing to policy changes continued to apply to the Indian
industries till early 1990s.
In the meantime, the constitution of India effectively came into
force in January 1950. Subsequently, the planning commission was
set up in March 1950 to oversee the formulation and implementation
of five-year-plans (FYP) in India. With respect to the automotive
industry, the commission planned the total number of vehicles that
80
to
Tariff
Commission
the
question
of
providing
the
commission
submitted
its
recommendations,
the
Government of India asked assembly plants, which did not have plans
to set up manufacturing facilities, to shut operation. As a result,
General Motors and Ford and other foreign assemblers who
considered the domestic demand too low to warrant a local
manufacturing programme were obliged to close down their
operations within three years. Thus, the exit of foreign assemblers by
1956 and the ban on import of fully-built vehicles since 1949
protected the Indian automotive industry from foreign competition
effectively.
The Tariff Commission endorsed the already existing
manufacturing plan of HML and PAL who had established their units
for manufacturing the components. With the exit of foreign
assemblers, both HML and PAL who had so far restricted themselves
to CVs entered into the production of cars. HML had collaboration
with Morris (UK) for cars, whereas PAL with Fiat (Italy) for the
same. In addition, the manufacturing programme of automobile
products of India, Ashok Motors and Standard Motors Products for
81
industry
(especially
83
passenger
cars)
had
been
ACMA,
SIAM
and
Vehicles
Research
and
automobile industry came during this phase with the beginning of the
Oil Crisis in country in October 1973. The substantial rise in the
import bill of crude oil led to the Economic Crisis. For this reason,
India approached IMF for a monetary loan to dampen the oil shock
effects. The Balance-of-Payment crisis of the country made the
bureaucrats of the Ministry of Finance and the Ministry of Industry to
take a closer look at the development of the automobile industry,
especially the low fuel-efficiency of the Indian automobiles. This
study led to the division of automobile industry into two segments,
luxury (passenger cars) and non-luxury (rest of the industry)
segments.
The
ministries
provided
more
emphasis
for
the
88
91
Tata Motors (1997) and Toyota with Kirloskar Group (1997). Most of
these new JVs proposed an initially assembling of only SKD/CKD
kits. Resultant, for Balance-of-Payments reasons, the Government in
1995, asked these companies to individually commit an equivalent
amount of exports.
In 1997, the ministry of industry in its Industrial Policy for
automotive industry placed import of capital goods and autocomponents under Open General License (OGL), but regulated the
vehicles in CBU form or in SKD/CKD form. The automobile
manufacturing units were allowed to import vehicles only in
SKD/CKD condition and were required to obtain a license for the
same. The availability of licenses was subjected to execution of
Memorandum of Understanding (MoU) duly signed with the DGFT.
As described in GOI 2002 (pp. 2, 3) such a MoU required the
companies to:
i) Have a plan for actual production and not just merely assemble
SKD/CKD kits.
ii) Bring in at least USD 50 million for having operations as a
subsidiary.
iii) Reach an indigenisation content level of 50% in the third and
70% in the fifth year from the date of clearance of the first lot
of imports.
iv) Neutralise foreign exchange out go on imports by equivalent
exports.
Such an obligation commences from the third year from the starting of
operations.
By April 2001, eleven companies had signed such MoU with
the DGFI (GOI 2002). In the meantime, the passenger car segment
saw the entry of Skoda in 1999. In the 2-/3- wheeler segment, the
94
duty on passenger cars has been brought down from 66% in 1991-92
to 24% in 2008-09.
Thus, during this phase, the increasing investor friendly as well
as liberal trade measures adopted by the government led to a
momentous increase in the number of international players active in
the country. The dismantling of licensing controls also encouraged the
domestic players to undertake the entrepreneurial endeavours. Further,
the competition within all the segments of the automotive industry got
increased. The market for automotive vehicles in India, transformed
into a buyers market, which had earlier been a sellers market. It was
the Indian consumer, who benefited the most from the intensified
competition, which brought his requirements of a cost-effective,
technologically-competent, fuel-efficient and reliable means of
transportation into perspective. Sound macroeconomic base of
demand growth drivers along with convenient credit facilities have
ensured rising demand for automotive vehicles in the country. Hence
the attempt of the Government in making a major shift in its economic
policy framework in early 1990s, along with its continued support to
the automotive industry had put the industry on a fast track of
development.
During this phase, environmental and safety standards as an
integral and important part of the modern automotive industry,
received due attention. First state emission norms came into effect for
petrol vehicles in 1991 and for diesel ones in 1992. Euro I, Euro II
and Euro III norms to align Indian safety standards with the global
ones have subsequently been introduced in India in 1996, 2000 and
2005 respectively. With its accession to United Nations Working
Party-29 in 2005, efforts are being made by the India towards the
harmonisation of auto standards worldwide and therefore integrating
96
97
98
IMPACT
OF
GOVERNMENT
POLICIES
ON
THE
99
development-
size,
structure,
investment,
growth,
automobile manufacturers was becoming more evident in the secondhalf of 1960s and the 1970s (Pingle 1999). If the capacity licensing
affected any firms, then it was the market leaders Bajaj Auto and
Escorts that could have grown much more, had the IPR been more
relaxed. Nevertheless, it has to be noted that the growth of licensed
capacities of Bajaj Auto and Escorts were among the highest in the
industry in 1960s and 1970s (Narayana 1989).
The Indian Government in 1953 imposed the requirement of
progressive manufacturing on the automobile assemblers, following
the recommendation of the tariff commission. Restricted allocation of
foreign exchange was the measure used to implement the decision.
The policy decision with its intention of indigenising the production
of vehicles in India had a significant impact on the development of
Indias automotive industry. The immediate result was the exit of
foreign assemblers from the Indian market. The domestic assemblers
entered into collaborations with foreign players for manufacturing of
automobiles in India. The Government successfully increased
indigenisation content from 50% in 1950s to 80% in 1960s. Price of
the automobiles got raised. The learning by doing involved in local
manufacturing of vehicle sub-assemblies certainly helped to improve
the manufacturing capabilities of the industry (Narayana 1989).
Considerable amount of foreign exchange was being spent on
importing critical components. For addressing these concerns, the
Government in 1960 adopted policies for encouraging the
development of ancillaries. This marked the bargaining for the
development of a distinct auto-component sector in India. In 1956, the
government implemented protection rates of tariff on aftermarket
ancillaries produced by the small scale units. Pingle (1999) argues
that such a strategy of the Government based on socialistic principles,
103
the export of the automotive industry thus doubled over the period
1984-85 to 1988-89. Even though in 1980s the share of Indias
automotive exports in the global export market was very small (e.g.
around .1%) (Dcosta 1995), the Government policy decision to
promote exports during this phase was an important initiative in the
development of countrys automotive industry.
To facilitate the optimum utilisation of installed capacities and
expand the Indian industries the Indian Government introduced the
broad-banding policy in 1985. Under this policy, the government
decided to issue licenses to the automotive firms for broader product
groups. The broad-banding policy created a potential for severe
competition within the auto-component segment. The significance of
policy decisions made during this phase witnessed the growth of
automobile product in India during the second half of 1980s. Under
the constraints of saving on imports of oil, improving the performance
of the automobile industry and satisfying the growing demand of
vehicles in the country, the Indian government decided to upgrade the
technology base and competitiveness of the industry. Among all other
policy decisions made during this limited-liberalisation phase, the
most significant policy decision was the relaxations with regard to
foreign collaborations (Narayana 1989). Further, during this phase the
transition, from statist ideology to pro-market orthodoxy, by the
government from a heavily regulated industrial environment to the
one in this phase was not abrupt. The only contradiction to the states
facilitative role was its permission for only one new entry in the high
growth car segment as compared to four new entries in the LCV
segment.
106
107
108
accounting for more than 10% of the GDP and providing additional
employment to 25 million people by 2016.
With every major shift in policies made by the Indian
Government during various phases, the automotive industry has come
out stronger and better. While the shift in policies seems to have
mostly been brought by chance events, the Indian Government has at
least to be praised for making the right decisions and implementing
them correctly. The technological up gradation and product
innovations of domestic firms like Tata Motors and Bajaj Auto today
are the fruits of indigenisation and protection policies of the
regulatory phase. As a result, the country has emerged as a potential
competitor of the Chinese automobile industry.
AUTO POLICY 2002:
India recognized the role of automobile industry that it could
play in driving economic growth. Hence, with a vision of establishing
a globally competitive automotive industry in the country and
doubling its contribution to the economy by 2010, the Government of
India presented for the first time a separate Auto Policy document in
March 2002. This document is known as Auto Policy 2002. The
document supersedes the auto policy adopted in 1977 by addressing
emerging problems, being more investor friendly and ensuring
compatibility with World Trade Organisation (WTO) commitments.
Through Auto Policy 2002, government sets itself for making the
Indian automotive industry globally competitive. Society of Indian
Automobile Manufacturers (SIAM) welcomed the announcement of
Auto Policy, and feels that the policy would serve as a reference
document for all stakeholders and other interested investors. Auto
Policy targets at making India as an international hub for
109
manufacturing of small cars as well as a key centre in the world for 2wheelers and tractors. In this direction, the policy proposed various
initiatives relating to investment, tariffs, duties and imports in order to
achieve its objective mentioned below.
POLICY OBJECTIVES:
The Auto Policy 2002 aims at promoting modernisation and
indigenous design and development within the country as well as
establishing domestic safety and environmental standards at par with
the international ones. The objectives are to:
i.
ii.
iii.
iv.
v.
vi.
vii.
passenger
cars
and
key
centre
for
112
Chapter-V
PROFILE OF SELECTED AUTOMOBILE
COMPANIES MANUFACTURING PREMIUM
PASSENGER CARS
Chapter-V
PROFILE OF SELECTED AUTOMOBILE COMPANIES
MANUFACTURING PREMIUM PASSENGER CARS
Public
Industry
Automotive
Predecessors(s)
MarutiUdyog Limited
Founded
1981
Founder
Sanjay Gandhi
Headquarters
Chairman
R. C. Bhargava
Products
Automobiles
Staff Strength
6903 (2011)
Parent
Suzuki
Website
www.marutisuzuki.com
Company Logo
:
113
COMPANY PROFILE:
Maruti Suzuki India Limited commonly referred to as Maruti,
an Indian car major was formerly known as Maruti Udyog Limited
(MUL). MUL was set up in February 1981 by the Government of
India and was initially called Maruti Technical Services Private
Limited. The first Managing Director of the company was Sanjay
Gandhi,
late
Indian
Prime
Minister.
The
objective
behind
114
115
MANUFACTURING FACILITIES:
Maruti Suzuki has two manufacturing units in India, first, in
Gurgaon and second is in Manesar. The Gurgaon manufacturing
facility has three fully integrated manufacturing plants and is spread
over 300 acres. The Manesar manufacturing facility was inaugurated
in February 2007 and is spread over 600 acres. Both the
manufacturing plants have a combined production capacity of 14,
50,000 vehicles annually. On June 2012, Haryana State Industries and
Infrastructure Development Corporation demanded Maruti Suzuki to
pay an additional INR 235 crore for enhanced land acquisition for its
Manesar plant expansion.
INTERNATIONAL OPERATIONS:
Maruti Suzuki is a global company with over 8,500 employees
engaged in sales, customer service, manufacturing and distribution in
many countries across the world. Suzuki Motor Corporation, the
parent company owns 54% of Marutis shares. It is partly owned by
the Government of India and partly by the Japanese company Suzuki
Motor Corporation. Marutis cars are of European style but custom
made to cater to the local markets. Maruti Suzuki has launched the
Grand Vitara, SX4 and the swift as part of the worldwide strategy.
Maruti Suzuki not only provides hatchbacks, mid and small sized cars
but also luxury cars. The company has launched another concept car
called Kizashi, which was show cased in the Frankfurt motor show
and is now available in India. The Grand Vitara, which is an SUV and
Kizashi, a sports sedan are imported from Japan as Completely Built
Units (CBU).
116
EXPORTS:
Maruti Suzuki exports entry-level models across the globe to
over 100 countries and the focus has been on identifying new markets.
The company exports to the United Kingdom, Italy, Hungry,
Netherlands, Germany, Latin America, Africa, Philippines and
Indonesia. Along with these countries, Maruti also sells its cars to
Algeria, Chile, Sri Lanka and Nepal. The company exported 38,000
passenger cars in 2006-2007 around 6.4 per cent of its total sales. The
car that contributes most to Maruti export-income is the A-Star
model. Even though the company exports to all five continents,
Europe makes up 56 per cent of Marutis cumulative exports as of
February 2011, making it the single largest source of export income
for the company. The sales figures for the continent of Europe as of
February 2011, by country are given below:
Netherlands
67,700 units
Italy
41,000 units
United Kingdom
34,000 units
Germany
20,000 units
Hungary
20,000 units
TECHNOLOGY:
Maruti Udyog Limited has been one of the successful
Government enterprises. For bringing latest technology to India,
Suzuki Motor Company of Japan was chosen from seven other
prospective partners worldwide. The three declared objectives of
MUL are modernization of the Indian automobile industry, production
of fuel-efficient vehicles to conserve scarce resources, and production
of large number of motor vehicles.
117
ii.
iii.
iv.
v.
vi.
ii.
iii.
iv.
v.
118
SALES NETWORK:
As of March 31, 2011, Maruti Suzuki has 933 dealerships
across 666 towns and cities in all states and union territories of India.
It has 2,946 service stations in 1,395 towns and cities throughout India
(Source: Maruti Suzuki Network). As of November 2012, it had a
market share of 37% of the Indian passenger car market. In February
2012, the company sold its tem millionth vehicle in India. Along with
coming up with new cars and new plants, Maruti is also expanding its
transportation capacity. The company has forged partnership for this
with the Adani Group to set up a mega car terminal at the Mundra
Port
Model
Maruti Suzuki
Public
Industry
Automotive
Founded
1945
Founder
JRD Tata
Headquarters
Mumbai, India
Products
Automobiles
Staff strength
Parent
Tata Group
Subsidiaries
Website
www.tatamotors.com
119
Company Logo
COMPANY PROFILE:
Tata Motors Limited is one of the business conglomerate Tata
Group. Tata Motors was first established in 1935 as a locomotive
manufacturing unit. Tata Motors Limited was established in 1945, and
its presence cuts across the length and breadth of India. Jahangir
Ratanji Dadabhoy Tata was the founder of Tata Motors (1945). Tata
Motors Limited, previously known as TELCO, is Indias largest
automobile company with consolidated revenues of INR 1, 88,818
crores in 2012-13. Company produced its first commercial vehicle
was produced in 1954, in collaboration with Daimler-Benz AG of
Germany. Tata Motors is a multinational corporation accounting for
70% cumulative market share in the domestic commercial vehicle
segment. In 1986, the company began the production of the first LCV
(Light Commercial Vehicle) model, Tata 407. The company is the
worlds second largest manufacturer of Commercial Vehicles, worlds
fourth largest truck manufacturers and worlds second largest bus
manufacturer.
In the early 1990s, the company began its expansion into the
car market. Its first passenger vehicle was Tata Sierra, a multi-utility
vehicle, launched in 1991. Afterwards, Tata came up with three other
automobiles, namely, Tata Estate in 1992, Tata Sumo in 1994 and
120
Tata Safari, Indias first SUV, in 1998. After thoroughly analysing the
demand of the consumers, Tata Motors decided to build a small car.
Thus in 1998, Indias first fully indigenous passenger car, Tata Indica
was launched. It received an immediate success, since it was
inexpensive and relatively easy to build maintain. The car was
exported to several other countries. In 2004, it acquired the Daewoo,
commercial vehicle Company, South Koreas second largest truck
maker. Today, two-thirds of heavy commercial vehicle exports out of
South Korea are from Tata Daewoo. In 2005, Tata Motors Acquired a
21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, and subsequently the remaining stake in 2009. In 2006,
Tata Motors formed a 51:49 Joint Venture with the Brazil- based,
Marcopolo, a global leader in body-building for buses and coached to
manufacture fully built buses and coaches for India. In January 2008,
Tata Motors unveiled its peoples car, the Tata Nano. Nano brings the
joy of a car within the reach of thousands of families.
Tata Motors Limited engages in the manufacturing and sales of
commercial and passenger vehicles primarily in India. The companys
product portfolio includes micro, compact, mid-size passenger cars,
premium and luxury Sports Utility Vehicles and cars, Utility Vehicles,
small, light, intermediate, medium and heavy commercial vehicles,
defence and homeland security vehicles, as well as vans, trucks, buses
and coaches. The company also produces electric and hybrid vehicles
for personal and public transportation. The company is involved in
marketing and marketing cars, financing the vehicles sold by the
dealers and sale of spare parts and accessories. In addition through
subsidiaries it engages in the provision of engineering and automotive
solutions, as well as machine tools and factory automation solutions,
construction
equipment
manufacturing,
121
automotive
vehicle
SUBSIDIARIES:
The other ventures of Tata Group include Tata Steel, Tata
Consultancy Services, Tata Technologies, Tata Tea, Titan Industries,
Tata Power, and Taj Hotels and so on.
MANUFACTURING FACILITIES:
Tata Motors owes its leading position in the Indian automobile
industry to its strong focus on indigenisation. This focus has driven
the company to set up world-class manufacturing units with state-ofthe art technology. The companys manufacturing base in India is
spread across Jamshedpur (Jharkhand), Lucknow (Uttar Pradesh),
Pune (Maharashtra), Sanand (Gujarat), Pantnagar (Uttarakhand) and
Dharwad (Karnataka). The company has set up an industrial joint
venture with Fiat Group Automobiles at Ranjan Gaon (Maharashtra)
to produce both Fiat and Tata cars and Fiat power trains. The Tata
Motors Groups over 58,000 employees are guided by the mission, to
be passionate in anticipating and providing the best vehicle and
experience that excite our customers globally.
EXPORTS:
The Tata Motors is also expanding its international footprints,
established through exports since 1961. In 1961, exports began with
the first truck being shipped to Sri Lanka. Companys commercial and
122
TECHNOLOGY:
Tata Motors is equally focused on environment friendly
technologies in emissions and alternative fuels. It has developed
electric and hybrid vehicles both for personal and public
transportation. It has been implementing several environment-friendly
technologies in manufacturing processes significantly enhancing
resource conservation.
INTERNATIONAL OPERATIONS:
Tata Motors has its operations in Thailand, South Africa,
Argentina and South Korea. It was running Jaguar Land Rover - the
British Brand. Tata Motors has a cost advantage in India as the labour
is 8-9 per cent of the sales against 30-35 percent in developed
countries. There is a huge demand due to infrastructural developments
and Tata Motors is able to leverage its knowledge on the Indian
market. Tata is expanding to foreign markets to become competitive
globally. The biggest accomplishment of Tata is with the Light
Commercial Vehicle, Indias first Sport Utility Vehicle and Tata
Indica released in 1998. Tata Ace became Indias first developed mini
truck and then came the Peoples car- the Tata Nano. The Middle East
Market is a big market for Tata Motors. It markets its passenger and
commercial vehicles worldwide.
123
Model
Variant
Indigo CS GLS
Tata Indigo CS
Indigo CS LE (TDI)
Indigo CS LX (TDI)
Indigo CS LS (TDI)
AUDI AG
Type
Public
Industry
Automotive
Founded
1909
Founder
August Horch
Headquarters
Ingolstadt, Germany
124
Area Served
Worldwide
Products
Luxury Vehicles
Parent
Audi AG
Website
www.audi.com, www.audi.in
Company Logo
COMPANY PROFILE:
Audi is a German-based company and is also been enlisted
among the oldest car manufacturing companies of Germany. Audi is
the subsidiary of Volkswagen. As a manufacturer of high quality
luxury cars, Audi is one of the worlds leading premium brands. The
Audi Group, comprising the two brands Audi and Lamborghini, has
for many years been one of the worlds leading carmaker in the
premium and superior segment. Since its inception, Audi has ruled the
domains of European Automobile Markets. The core of the company
comprises the Audi brand, whose vehicles delight customers with
their outstanding modern design, technological innovations and high
built quality. The company also offers an exclusive customization
program and high grade lifestyle articles that embody the spirit of the
brand with the four rings. The Badge of Audi is personified by the
famous four rings of Audi, stands for those four companies of
Germany, namely, Audi DKW, Horch and Wanderer, consolidated to
form a new company, Audi AG. The Audi Group has its headquarters
125
MANUFACTURING FACILITIES:
Audi manufactures vehicles in seven plants around the world;
some of them are shared with other Volkswagen Marques, although
many sub-assemblies such as engines and transmissions are
manufactured within other Volkswagen Group plants. Audis two
principal assembly plants are:
i. Ingolstadt: Incorporated by Auto Union in 1964, it is the
largest Audi plant. Its where the Audi A3, Audi A4, A5 and
Audi Q5 cars are built. The Audi Hungaria, Audi TT Coupe,
the Audi TT Roadster are also built in this facility. This
production plant produces about 5, 00,000 vehicles per annum.
ii. Neckarsulam: This plant was acquired from NSU in 1969.
Here in this plant Audi A6, Audi A7, A8 and all RS variants of
Audi are produced.
Outside Germany Audis production plants are in Bratislava
(Slovakia), Martorell (Spain), Gyor (Hungary), Brussels (Belgium),
Changchun (China), Aurangabad (India), Jakarta (Indonesia).
In September 2012, Audi announced the commencement of its
first North America manufacturing plant in Puebla, Mexico. This
plant is expected to be operative in 2016 and produce the second
generation Q5. The company is represented worldwide as in 110
127
countries and has been selling cars in India since 2004. In March
2007, Audi established a formal presence in India with Audi India
being a division of Volkswagen Group Sales India Private Limited.
The plant produces the Audi A6, the Audi A4, 2000 Audi A6 and
11,000 Audi A4 are expected to be produced at the Aurangabad plant
by 2015. An additional assembly line was installed to produce the
Audi A4. Currently fully imported parts of Audi cars are assembled at
the Aurangabad plant of Skoda Auto. Audi India sold 3,003 vehicles
in the year 2010 compared to 1,650 vehicles in 2009 and registered an
increase of 81% in sales growth. Audi India continued its successful
course in India with yet another remarkable growth with 710 units
sold in May 2013. Audi India clocked a growth of 57.42% over the
same period last year (May 2012:451 units). For the period of January
to May 2013, the company grew by 24.8%, delivering 4096 units as
compared to 3282 units during January to May 2012. The company
caters to elite and rich class of consumers. Audi India is in an
emerging stage but it foresees immense business opportunities in the
future. Audi India plans to expand its network to 34 dealerships by the
end of 2013 from its existing 26 centres.
TECHNOLOGY:
Audis
slogan
is
Vorsprungdurch
Technik,
means
EXPORTS:
The brand with the four rings increased its deliveries by 11.7%
in fiscal 2012 to the record total of 1,45,51,23 vehicles.
Model
Variant
Saloon
Audi A4
S4
RS4
Audi AG
Audi A6 Saloon
A8
Audi A8
A8L
12 CYLINDER A8
S8
TOYOTA MOTORS
Type
JV
Industry
Automotive
Founded
1937
Founder
Kiichiro Toyoda
Headquarters
Chairman
Takeshi Uchiyamada
Products
Automobiles
129
Staff Strength
331,876 (2012)
Parent
Toyota Group
Website
www.toyota.com, www.toyotabharat.com
Company Logo
COMPANY PROFILE:
Toyota Motor Corporation, TMC, is a Japanese Multinational
Automobile Manufacturing Company. Company has its headquarters
in Toyota, Aichi, Japan. Kiichiro Toyoda founded the Toyota Motor
Corporation. In 1926, Toyoda Automatic Loom works was created.
Kiichiro was also an innovator, and visits he made to Europe and
USA in the 1920s introduced him to the automatic industry. Saki chi
Toyoda received some monetary reward for selling the patent rights of
his automatic loom, and Kiichiro laid the foundation of Toyota Motor
Corporation in 1937. In year 1936, Toyota produced its first passenger
car Toyota AA. Toyota is one of the largest car manufacturers in the
world, with scores of factories in dozens of countries. Its standing in
the automotive world as the most successful and most profitable car
maker is unquestioned.
It was Australia where todays world car industry leader first
tasted success beyond its Japanese domestic market. It was through
Toyota Australia that the Japanese company learned many lessons
which have underpinned its global success, and it was Toyota
130
largest recall since that of Ford Motor Company in 1996. The move
came after a series of recalls between 2009 and 2011 in which it
pulled back around 10 million recalls amidst claims of faunally
mechanics.
MANUFACTURING FACILITY:
Toyota has long been recognized as an industry leader in
manufacturing and production. Toyota has its North America
headquarters in USA. They are located in Toyota Motor North
America and were established in March 1996. They liaison, and have
public relations and survey through North America. The second office
is Toyota Motor Engineering and Manufacturing North AmericaR&D and overall supervision of manufacturing in North America. In
Belgium, Europe, there is Toyota Motor Europe which does coordination of Toyotas European business. Then there is Toyota
Motor business in Singapore- it is called as the Toyota Motor Asia
Pacific and they have parts supply to all ASEAN countries and sales
support marketing in Asia. Then there is the Toyota Motor Asia
Pacific Engineering and Manufacturing. They are responsible for the
development and evaluation efforts for locally produced vehicles and
operation support for Toyota in Asia and Middle East.
Toyota has its manufacturing facilities worldwide. Toyota
Motor Corporation started its operations in India in 1997 in a JointVenture with the Indian Automobile Giant, The Kirloskar Group and
formed Toyota Kirloskar Motor Private Limited (TKMPL). It invested
INR seven billion in the company and is the fourth largest carmaker in
India. Toyota has 89% of equity shares and the Kirloskar Group has
11% equity shares in TKMPL. The company, TKMPL, according to
its mission statement aims to play a major role in the development of
the automotive industry and the creation of employment opportunities
132
not only through its dealers network, but also through ancillary
industries with a business philosophy of Putting Customers First.
We believe in putting you, our customers first and it is this approach
that enables us to respond effectively to your changing needs, whether
its in terms of quality, service or driving experience- said Mr
Hiroshi Nakagawa, MD & CEO, TMC.
TKMPLs manufacturing plants are at Bidadi, Karnataka and
Bangalore. Both the facilities have a combined capacity of 1, 50,000
vehicles per annum.
INTERNATIONAL OPERATION:
Toyota, in collaboration with Daihatsu Motor Company
manufactured 8.54 million vehicles in 2005, about 5, 00,000 fewer
than those produced by General Motors. The company has a large
market share in the United States. It is the largest car seller in
Australia. It also has a large number of cars selling in South East Asia
due to its subsidiary Daihatsu, which operates from South East Asia.
However, in Europe it has a really small market share. The companys
Lexus brand, whose market share struggled in Europe. It has 3/10th of
1% market share compared to 2% market share as the US luxury
segment leader.
In 2007, Toyota had produced 2.348 million pieces of cars. The
most prominent cars from Toyota are the Corolla and Camry sedans.
Toyota ranks number 2 with a 16% market share after General Motors
in United States. In January 2009, it announced the closure of all its
Japanese plants for 11 days to reduce output and stocks of unsold
vehicles.
133
EXPORTS:
The company is making India the global manufacturing hub for
small cars. It is planning to make India the export base for mid-size
cars. It exports its vehicles to the Canada, Venezuela, Mexico, Brazil
and Europe etc. By July 2012, the company reported that it had
manufactured its 200-millionth vehicle. In 2011 it was the largest
automobile manufacturer worldwide, and it is the eleventh-largest
company in the world by revenue through domestic sales and exports.
TECHNOLOGY:
Toyota has introduced new technologies including one of the
first mass-produced hybrid gasoline-electric vehicles, of which it says
it has sold 2 million globally (as of 2010). Toyota also introduced
Isuzu Diesel Technology into their products in collaboration with
Isuzu Motors Limited. Toyota has been a leader in environment
friendly vehicle technologies, most notably the RAV4EV and Toyota
Prius. The company produces its most of the vehicles with automatic
134
Model
Variant
2.4 L (A/T)
Toyota Camry
Toyota Motors
2.4 L (M/T)
Corolla 1.8 E
Toyota Corolla
Corolla 1.8 G
Corolla 1.8 J
Corolla Altis
SKODA AUTO
Type
Subsidiary
Industry
Automotive
Founded
1895
Founder
Headquarters
Products
Automobiles
Area served
Worldwide
Staff strength
32,000 (2012)
Parent
Volkswagen Group
Website
www.skoda-auto.com,
www.skoda- auto.co.in
135
Company Logo
COMPANY PROFILE:
The road to todays prosperity began in 1895, when Vaclav
Laurin and Vaclav Klement began manufacturing Slavia-brand
bicycles. Skoda Auto Group is one of the largest corporate groups in
the Czech Republic. Skoda Auto is one of the five oldest companies
that begun producing cars and has an unbroken history. Skoda Auto is
a part of the famous automobile manufacturers of Europe, the
Volkswagen Group, and it became a wholly owned subsidiary of the
Volkswagen Group in 2000, positioned as the entry brand to the
group. Skoda Auto launched its first car in 1905. Since becoming a
part of Volkswagen Group, Skoda Auto has more than tripled its
production, significantly expanded its product portfolio, and
reinforced the Skoda brands image. Thus, its global sales reached
about 949,412 cars in 2012. Today, Skoda is one of the most
successful automobile brands, offering nine models and having
established a presence in more than 100 countries worldwide.
The first automobile Laurin and Klement produced was the
Voiturette A and it was a great success. After the success of the
Voiturette A, the company started developing automobiles for
international automobile market. In 1907, Laurin and Klement
136
137
4. Skoda Auto
Polska S.A. based
in Poznan, Poland
Skoda Auto Stake
:100%
5. Skoda Auto
India Private Ltd.
based in
Aurangabad, India
Skoda Auto stake:
100%
6. ooo VOLKSWAGEN
RUS
based in Kaluga, Russia,
Skoda Auto stake:30%
MANUFACTURING FACILITIES:
Skoda Auto Group is one of the largest corporate groups in the
Czech Republic. Skoda is a truly global company with a distribution
network of about 531 dealers all over the world. It operates in over
100 markets all over the world. Skoda Auto India Private Limited
currently has 106 dealerships and 89 service centres across cities.
Skodas main hub is Europe; however, the company has expanded
operations all over the world. In Central and Eastern Europe, Skoda is
the market leader and is entering speedily into Asias markets. Skoda
gained a lot of popularity in the Indian car market, especially in the
luxury segment. Skoda launched its first car in India was the Skoda
Octavia which was priced at INR 10.6 lakhs.
The tryst of Skoda auto with India began in the year 2001,
when it entered the Indian market. Skoda Auto India Private Limited
138
Intelligence
ii.
Attractiveness
iii.
Dedication.
Apart from these three values, the companys vision is to become the
market leader in Europe. The company promises to provide quality
sales, service and transportation needs to their users. Skoda is known
for the stylish exterior and classy outlook of its cars. It is also popular
for its consistent effort to come up with modern technologies that
customer will love to drive.
140
Model
Variant
Skoda Fabia
Skoda
Skoda Laura
L&K
Skoda RS 1.8 Turbo
Skoda Superb
Skoda Octavia Combi
FORD MOTORS
Type
Public
Industry
Automotive
Founded
1903
Founder
Henry Ford
Headquarters
Dearborn Michigan, US
Products
Automobiles
Area served
Worldwide
Staff strength
171,000 (2012)
Website
www.ford.com, www.india.ford.com
Company Logo
141
COMPANY PROFILE:
Ford Motor Company is an American multinational automaker.
It was founded by Henry Ford and incorporated on June, 1903. The
company was incorporated, with 12 investors owing a total of 1000
shares. Ford sells automobiles and commercial vehicles under the
Ford brand and luxury cars under the Lincoln brand. Ford is the
second-largest US- based automaker and the fifth-largest in the world
based on 2010 vehicle sales. The first car, the Ford manufactured was
the Model A in 1903. However, the first simple, affordable car that
Ford produced was the Model T. In 1914, Ford produced 308,162 cars
and in 1927, by the time the last Model T was built, the company
produced an automobile every 24 seconds. With the 1980s, Ford
introduced several highly successful vehicles around the world. In
1990 and 1994 respectively, Ford also acquired Jaguar cars and Aston
Martin. During the mid-to late 1990s, Ford continued to sell large
numbers of vehicles, in a booming American economy with a soaring
stock market and low fuel prices. With the down of the new century,
legacy healthcare costs, higher fuel prices and a faltering economy
lead to falling market shares, declining sales and diminished profit
margins. Most of the corporate profits came from financing consumer
automobile loans through Ford Motor Credit Company.
142
MANUFACTURING FACILITIES:
Ford has ninety production plants all over the world, which
include the Auto alliance International Plant, Bahia Plant, Blue
Diamond Track, Buffalo Stamping, Chicago Embassy, Cologne
Transmission, Dagenham Engine, Dearborn Truck, Ford Malaysia,
Genk Body and Assembly, Michigan Assembly Plant and Valencia
Assembly Plant. The companys worldwide operations are in Europe,
143
DEALERSHIP:
As of February 2013, Ford India has 260 dealerships across 138
cities in 23 states and 3 union territories across the country. In the
year 2010, Ford India registered a sales growth of 172% with
recorded sales of 83,887 vehicles against 29,488 vehicles sold during
the year 2009. Whereas, the company reported 24.03 percent decline
in total sales in April 2013 at 7,270 units. The company had sold a
total of 9,569 units in the same month during the year 2012.
144
TECHNOLOGY:
Ford has launched two new technologies, the Global Avatar and
the Sync. The Sync is developed in collaboration with Microsoft
which is a voice-control technology that allows the user to give
commands via voice. Ford has launched an animation technology
which allows the company to create a global avatar that will design
the car in an online environment. This will allow the company to
design the test many parts of the car without incurring the huge cost of
physical building and testing. The avatar will assemble the vehicle
parts and build a digital prototype.
ii.
iii.
iv.
145
Model
Ford
Public
Industry
Automotive
Founded
December, 1967
Founder
Chung Ju-yung
Headquarters
Products
Area served
Worldwide
Staff strength
57,105 (2011)
Parent
Website
www.hyundai.com, www.hyundai.co.in
Company Logo
COMPANY PROFILE:
Hyundai Motor Company is the South Korean automobile
manufacturing company. It is placed sixth among the automobile
maker in the world. Hyundai was started in 1967, when the founders
decided to assemble someone elses vehicles. The founder developed
146
147
MANUFACTURING FACILITIES:
Hyundai operates the worlds largest integrated automobile
manufacturing facility in Ulsan, South Korea, which has an annual
production capacity of 1.6 million units. Hyundai has its production
plants all over the world which include: The Ulsan Plant, the Asan
Plant, the Jeonju Plant, the America Alabama Plant, the China Plant,
the Indian Plant, the Turkey Plant, the Russia Plant and the Brazil
Plant.
In India, the Hyundai Plant is located in Irungattukottai, 30
kilometres from Chennai. This plant was set up in May 1996 and
rolled out the first Santro seventeen months afterwards. The plant is
built on 500+ acres of land and had an investment of INR 2,500
crores. HMILs fully integrated state-of-the art manufacturing plant
near Chennai boasts of advanced production, quality and testing
capabilities. To cater to rising demand the company commissioned its
second plant in February 2008, having an installed capacity of
330,000 units per annum. Both the manufacturing units are capable of
producing 630,000 vehicles annually. To support its growth and
148
expansion plans HMIL currently has 346 dealers and around 800
centres across India. In its commitment to provide customers cutting
edge global technology, HMIL set up a modern multi-million dollar
Research & Development facility in Hyderabad. In terms of
worldwide sales, the US, Chinese and Indian Marketing are doing
well. Hyundai has also developed a model in India for sales. Hyundai
will grab a large share of the car market by turning its operations in
China and India into key design, manufacturing and export hubs for
its entire global operations. Hyundai has 6 centres worldwide, located
in Korea, Germany, Japan and India. Additionally, there is an
American design centre in California that develops designs for US
market.
TECHNOLOGY:
Hyundai has the Alpha Engine, Theta Engine, S Engine,
Lambda FR Engine, Theta GDI Engine, Class- best power trains,
environment-friendly exhaust systems, green engines, power train
centre and highest performing power trains etc. Hyundais current
design philosophy is known as Fluidic Sculpture, which is heavily
inspired by nature. Hyundai Motor India Engineering (HMIE) gives
technical and engineering support in vehicle development and CAD
&CAE support to Hyundais main R&D centre in Namyang, Korea.
In 2010, Hyundai started its design activities at Hyderabad
R&D centre with Styling, Digital Design & Skin CAD Teams. The Rengine for passenger Diesel cars that meet the Euro-5 Environmental
Regulation Standards is developed by Hyundai and the company
received certification for low-pollution emitting vehicle in the
metropolitan area. The companys TAU engine received the honour
149
of being named as the Worlds 10 Best Engines for the past two
consecutive years.
150
Model
Variant
Hyundai Motors
Hyundai Sonata
VOLKSWAGEN
Industry
Automotive
Founded
1937
Founder
Ferdinand Porsche
Headquarters
Wolfsburg, Germany
Products
Automobiles
Area served
Worldwide
Parent
Volkswagen Group
Website
www.volkswagen.com,
www.volkswagen.co.in
Company Logo
COMPANY PROFILE:
Volkswagen, the top-selling marquee of the Volkswagen
Group, is the biggest German automaker and the second biggest
151
152
best-selling cars of all time compiled by the website 24/7 Wall St: the
Volkswagen Golf, the Volkswagen Beetle and the Volkswagen
Passat. Volkswagen sets its foot in the Indian automobile market in
2007 as Volkswagen India Private Limited (VIPL). VIPL is a
subsidiary of Volkswagen Group Sales India Private Limited that
assembles manufactures and distributes Volkswagen vehicles in India.
Volkswagen wants to increase its sales in India to one million
cars by 2018. They plan to dedicate the success they had in China. In
India, the company needs to sell large volume of cars to survive in
India. Volkswagen is aiming to double its US market share from 2%
to 4% for the year 2014, and has aimed to become, sustainably, the
worlds largest car maker by 2018.
MANUFACTURING FACILITIES:
Volkswagen has become a large international corporation from
where it started and expanded to different worldwide markets and
countries. The world headquarters of Volkswagen are located in its
home country in Wolfsburg, Germany. Since 2011, Volkswagen
operates 62 production plants in fifteen European countries and a
further seven countries in the USA, Asia and Africa. Nearly, 400,000
employees produce about 30,000 vehicles or are involved in vehiclerelated services each working day worldwide. The Volkswagen Group
sales its vehicles in around 153 countries.
In India VIPL operates a manufacturing plant in Chekan,
Maharashtra, which produces approximately 110,000 vehicles per
annum. The manufacturing plant is also shared by Skoda Auto India
Private Limited for Assembling the Skoda Fabia and Skoda Rapid.
VIPL currently has more than 70 dealerships in 56 cities across 18
153
ENVIRONMENTAL RECORDS:
Volkswagen first implemented its seven environmental goals in
Technical Development in 1996. The plan contains themes involving
climate protection, resource conservation and healthcare, through
objectives such as reducing greenhouse emissions and fuel
consumption, enabling the use of alternative fuels and avoiding the
use of hazardous materials. The original 1996 goals have since been
revised in 2002 and 2007. Volkswagen was the first car manufacturer
to apply ISO 14000, during its drafting stage and was re-certified
under the standards in September 2005. In 2011, Greenpeace began
criticising Volkswagens opposition to legislation requiring tighter
controls on CO2 emissions and energy efficiency, and on advertising
campaign was launched parodying VWs recent series of Star warsbased commercials.
154
MODELS:
Some of the vehicles sold by the company include: Volkswagen
Passat, Volkswagen Jetta, Volkswagen Polo, Volkswagen Vento,
Volkswagen Touarag, Volkswagen New Beetle, Volkswagen Phaeton
etc.
Model
Volkswagen Polo
Volkswagen Passat
Volkswagen
Volkswagen Touarag
Volkswagen Jetta
Volkswagen Beetle
155
MITSUBISHI MOTORS
Type
Public
Industry
Automotive
Founded
April, 1970
Headquarters
Products
Area served
Worldwide
Staff strength
30,777 (2012)
Parent
Mitsubishi Group
Website
www.mitsubishi-motors.com
Company Logo
COMPANY PROFILE:
Mitsubishi is a Japanese conglomerate which consists of a
number of businesses under the Mitsubishi brand. Mitsubishi Motor
Corporation is a multinational automaker headquartered in Minato,
Tokyo, Japan. In the year 2011 Mitsubishi Motors was the sixth
biggest Japanese automaker and the sixteenth biggest worldwide by
production. Mitsubishi Motors was started dates back to 1917, when
the Mitsubishi Model A, Japans first series-production automobile,
was introduced. The company established itself as an innovator,
developing amongst others, Japans first diesel engine, its first large
sized bus, first four-wheel drive passenger car prototype and its first
diesel-powered truck over the next two decades. At the end of Second
World War, Japans large industrial groups were dismantled by order
of the Allied powers and Mitsubishi Heavy Industries was split into
156
rallying
success
with
Gallants
and
Lancers,
MANUFACTURING FACILITIES:
The company has production facilities in Japan and worldwide.
The company has offices and also research and development facilities
all over the world. Mitsubishi Motors Corporation ventured into the
Indian market through its association with Hindustan Motors Limited,
Indias major automobile manufacturing company. HM-Mitsubishi
Motors than launched the well accepted Lancer in India. HMMitsubishi launched several other products in the Indian market, such
as the Pajero, the Cedia, the Montero and the Outlander. HM157
TECHNOLOGY:
Mitsubishi cars are fitted with the Mitsubishi Motors all-wheel
control system. The system extracts its means from the performance
and traction of the four tyres. The all wheel control system cultivates
its long history in rally racing. The multi-select 4WD system strikes a
balance between the 4WD system and the 2WD system. It offers a
sporty field on the road. In safety technologies there is the ABS and
Brake Assist, the Stability Control and the Noise View Camera. The
158
brake system prevents slippage due to tire lock. Under this system
tired do not lock and vehicle is stable.
There is a Reinforced Impact Safety Evolution Body. In the
event of a collision maintaining the survival space is essential. There
is a straight frame construction, octangular front side members and 3way input distribution cross-dash pillar braces for absorbing and
distribute energy. There is a tailored bank technology where welds are
formed of various dimensions. Further, Mitsubishi plans to introduce
six electric cars or hybrids by 2015 beginning with the MiEV. Their
production will be 5% powered by electricity by 2015.
159
TABLE
5.9
PREMIUM
PASSENGER
CARS
FROM
MITSUBISHI MOTORS
Company
Model
Variant
Mitsubishi
1.5 L Petrol
Mitsubishi Lancer
2.0 L Diesel
1.8 L Petrol
(automatic)
Mitsubishi Lancer
Lancer Cedia
Cedia
Public
Industry
Founded
December, 1933
Founder(s)
Headquarters
Products
Automobiles
Area served
Worldwide
Staff strength
155,099 (2011)
Parent
Website
Company Logo
www.nissan-global.com
160
COMPANY PROFILE:
Nissan Motor Company Limited is a Japan-based company
primarily engaged in the manufacturing and sell of automobiles. The
Japanese multinational automaker has its headquarters in Nishi-Ku,
Yokohama, Japan. Nissan Motors was established in 1933, currently
manufactures vehicles in 20 countries and areas around the world,
including Japan. As of March 2012, the company offers products and
services in more than 160 countries and areas worldwide.
Masujiro Hashimoto founded the Kwaishinsha Motor Car
works in 1991. The company produced its first car in 1914, called
DAT. Hashimoto was a pioneer in Japanese automobile industry.
Jitsuyo Jidosha was a predecessor of Nissan and was established in
Osaka in 1919 to make Gorham styled three wheeled vehicles.
Kwaishinsha Company and Jitsuyo Jidosha Company merged in 1926
for the Dat Jidosha Siezo Company. This led to establishment of the
Nissan Motor Company. In 1936, Nissan purchased its own facility
for making cars and trucks. The company also manufactured engines
for army planes and boats. Nissan, with its automotive technology,
entered the marine business in 1970 by introducing the marine engine
for the first genuine pleasure boats produced in Japan. Since then, the
company has been engaged in various marine businesses including
pleasure boats production and sales, marine business and export of
161
MANUFACTURING FACILITIES:
Nissan has its production plant all over the world including
Thailand, Malaysia, china etc. Nissan Motors has its Indian subsidiary
namely Nissan Motor India Private Limited (NMIPL). It started its
operations in India in 2005, with the launch of the Nissan X-Trail
(T30). NMIPL has its manufacturing facility in Chennai, which can
annually manufacture around 200,000 vehicles. The Chennai facility
has an additional capacity of 200,000 vehicles per annum exclusively
for French car maker, Renaults Indian arm, Renault India Private
162
TECHNOLOGY:
Nissan has a 3-cylinder 1.2 litre Direct Injection Gasoline
Engine. This aims to achieve low CO2 emissions. The new hybrid
vehicle was developed to improve environmental performance. Nissan
has developed the Super Motor. It has also developed a 3D motor
system. In terms of safety technology Nissan has a Moving Object
Detection System, which detects technology around the car and to
prevent the car from colliding with another car. The Intelligent Cruise
Control System helps vehicles maintain comfortable driving.
163
Model
Nissan 370Z
Nissan Teana
Sunny
HONDA
Type
Public
Industry
Automotive, Aviation
Founded
1948
Founder(s)
Headquarters
Area Served
Worldwide
Products
Automobiles
Staff strength
179,060 (2012)
Website
www.honda.com, www.hondacarindia.com
Company Logo
COMPANY PROFILE:
Honda
Motor
Company
is
Japanese
automobile
164
296% surge its domestic sales at 4,242 units during December 2012,
as against 1,072 units sold in December 2011. The company also
exported a total volume of 422 units during the month. Model-wise
sales break-up of HCIL in December 2012 is: Brio-2,286 units, Jazz365 units, City-1,442 units, Civic-70 units and Accord-79 units
[source: Federation of Automobile Dealers Association].
MANUFACTURING FACILITIES:
The company has its manufacturing plants across the world.
These plants are located in China, the United States, Pakistan,
Canada, England, Japan, Belgium, Brazil, Mxico, New Zealand,
Malaysia, Indonesia, Thailand, Turkey, Taiwan, Peru, Argentina and
India. Honda Cars India Limited (HCIL) has its first manufacturing
unit at Greater Noida, Uttar Pradesh, set up in 1997. The green field
project is spread across 150 acres and has annual production capacity
of 1, 00,000 units. The companys second manufacturing unit is in
Tapukara, Rajasthan. This facility is spread over 450 acres and
currently has a state-of-the art power trains and press shop. The
company invested INR 7.8 billion in Bhiwadi for its second
production plant with an annual production capacity of 50,000 units.
HCIL has a strong sales and distribution network spread across the
country. The network includes 150 authorised dealership facilities in
97 cities. HCILs dealerships are based on the 3S facility format,
offering complete range of Sales, Service and Spares, services to its
customers.
Riding on Low Base, Honda Cars India Ltd. Clocked a
whopping 296% surge its domestic sales at 4,242 units during
December 2012, as against 1,072 units sold in December 2011. The
company also exported a total volume of 422 units during the month.
166
TECHNOLOGY:
Honda has technological advancement for its automobiles and
motorcycles itself. Within automotive they have seen different
technologies that are discussed below:
i.
ii.
iii.
iv.
v.
vi.
vii.
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Model
Variant
Accord VTi-LM/T
Honda Accord
Accord VTi-LA/T
Accord V6
Honda City
Honda City E
Honda Motors
Honda City S
Civic 1.8 S MT
Civic 1.8S AT
Honda Civic
Civic 1.8V MA
Civic 1.8V AT
Civic Hybrid
CHEVROLET
Type
Division
Industry
Automotive
Founded
November 1911
Founder(s)
Headquarters
Products
Automobiles
Area Served
Worldwide
Parent
Website
www.chevrolet.com, www.chevrolet.co.in
Company Logo
168
COMPANY PROFILE:
Chevrolet referred to as Chevy, is a vehicle producing company
by the American Corporation General Motors (GM). The company
was founded by Louis Chevrolet and William C. Durant on November
3, 1911 as the Chevrolet Motor Car Company. In 1918 it was acquired
by General Motors. Chevrolet branded vehicles are sold in most
automotive markets across the globe. In 2005, Chevrolet was relaunched in Europe, primarily selling vehicles manufactured by GM
Korea and slotting in below Opel. In North America, Chevrolet
produces and sells a wide range of vehicles, from sub-compact
automobiles to medium-duty commercial trucks. In the 1918 model
year, Chevrolet introduced the series D a V8- powered model in fourpassenger roadster and five-passenger tourer models. Chevrolet had a
great influence on the American automobile market during the 1950s
and 1960s. In 1953 it produced the corvette, a two-seater sport car
with a fibre glass body. In 1957, Chevy introduced its first fuelinjected engine, the Rochester Ramjet Option on Corvette and
passenger cars. In 1963, one out of every ten cars sold in the United
States was form Chevrolet.
In India, Chevrolet Sales India Private Ltd. (CSIPL), is a
division of General Motors India Private Limited, which in turn is a
169
with
fuel-efficient
vehicles
that
feature
spirited
TABLE
5.12
PREMIUM
PASSENGER
CARS
FROM
CHEVROLET
Company
Model
Variant
Chevrolet
Cruze
Automatic
Chevrolet
Chevrolet Cruze
1.6 Elite
1.6 LS Elite
Chevrolet Optra
1.6 LT Royale
1.8 LT
1.8 LT AT
170
Chapter-VI
ANALYSIS OF CONSUMER BEHAVIOUR
TOWARDS PREMIUM PASSENGER CARS
Chapter- VI
ANALYSIS OF CONSUMER BEHAVIOUR TOWARDS
PREMIUM PASSENGER CARS
major players. It is believed that the experts are the ones who can
describe the well about the product in a proper manner. Their opinion
about a particular product do leaves an important impression for any
buyer. The overall aim of the questionnaire survey with the dealer
staff was to maximise the opportunity to gain different perspectives of
the criteria or critical factors associated with owner perceptions of the
new premium car and to support findings from the questionnaire
survey.
In this chapter the Results of the research are presented in terms
of quantitative forms. It has been illustrated in the form of tables and
graphs. The results presented in the tables and graphs to follow are the
outcome of analysis based on frequency counts. Frequency is the
number of times a particular option was selected. Due the number of
respondents, answers to the open ended questions that were the
similar were grouped accordingly.
RESULTS FROM CONSUMERS QUESTIONNAIRE
172
Table 6.1
Numbers of Vehicles in a Household
S. No.
No. of Vehicles
Frequencies
Percentage
1.
97
38.80%
2.
100
40.00%
3.
34
13.60%
4.
More than 3
19
7.60%
250
100
38.80%
40.00%
35.00%
30.00%
25.00%
20.00%
13.60%
15.00%
7.60%
10.00%
5.00%
0.00%
1
173
more than 3
Frequency Percentage
Rank
57
22.80%
29
11.60%
112
44.80%
52
20.80%
250
100
2008
2009
2010
2011
2012
2013
Total
30(32.6) 7(7.6)
12(13.1) 92 (100)
(47.8)
(48.9)
(38.1)
(52.6)
(11.6)
(30)
(36.8)
6 (20.7)
5 (17.2)
8 (27.6)
10
29 (100)
(8.8)
(13.3)
(34.5)
(11.6)
(12.3)
(25)
Tata
Honda
10(32.3) 3 (9.7)
8 (25.8)
6 (19.3)
4 (12.9)
31 (100)
(20.4)
(14.3)
(14.1)
(10)
(10)
(12.4)
4 (11.4)
5 (14.3)
5 (14.2)
11(31.5) 2 (5.7)
35 (100)
(17.4)
(10.2)
(22.9)
(8.8)
(18.4)
(14)
1 (5.6)
16(88.8) -
18 (100)
(1.7)
(26.7)
(7.2)
4 (40)
4 (40)
10 (100)
(6.7)
(10)
(4)
5 (62.5)
2 (25)
1 (12.5)
8 (100)
(8.8)
(3.4)
(2.5)
(3.2)
2 (25)
1 (12.5)
5 (62.5)
8 (100)
(3.5)
(1.6)
(12.5)
(3.2)
(5)
(38.1)
Ford
1 (5.6)
(2.1)
Chevrolet
2 (20)
(8.7)
Volkswagen Nissan
Others
6 (31.5)
3 (15.8)
1 (5.2)
5 (26.3)
2 (10.6)
19 (100)
(26.1)
(6.1)
(10.6)
(1.7)
(8.3)
(5)
(7.6)
(9.5)
Total
23(9.2)
(100)
(100)
175
60(24)
40(16)
250 (100)
(100)
(100)
(100)
(100)
(Figures in brackets are percentage)
12.4%
3.20%
3.20%
4%
maruti
7.60%
hyundai
36.80%
7.20%
tata
honda
14%
ford
12.40%
11.60%
chevrolet
Volkswagon
nissan
others
that the samples vehicles are less than a year but not more than six
years old. And the majority (24%) of the sample purchased their
vehicle in the year of 2012.
This draws us to the conclusion that the majority (62.8%) of the
sample owns vehicles that are new or fairly new which ties into the
vehicle sales figures as depicted in Table1.2.
INFORMATION ABOUT CONSUMERS PREVIOUS CAR
Question 13 dealt with What brand of vehicle did you have
previously? For this question only 114 (45.6%) respondents
answered that they previously also had a car. And for 136 (54.4%) of
respondents their current car is their first car only. Brand wise
distribution of the 114 respondents previous cars is in the table 6.4
given below.
Table 6.4
Consumers Previous Car
S.
Previous Car
Frequency
Percentage
Maruti
72
63.16%
Ford
7.89%
Tata
7.02%
Toyota
3.51%
Hyundai
7.02%
Fiat
7.89%
Ambassador
3.51%
Total
114
100
No.
177
7.89% 3.51%
7.02%
maruti
3.51%
ford
7.02%
hyundai
63.16%
7.89%
toyota
tata
fiat
Ambassaor
178
Frequency
Percentage
Upto 6 lakh
43
17.20%
6-9 lakh
112
44.80%
9-12 lakhs
86
34.40%
12-15 lakhs
3.60%
Total
250
100
Car
179
40.00%
35.00%
30.00%
25.00%
17.20%
20.00%
15.00%
3.60%
10.00%
5.00%
0.00%
upto 6 lakhs
6-9 lakhs
9-12 lakhs
12-15 lakhs
Frequencies
Percentage
48
19.2%
Finance
202
80.8%
Total
250
100
80.80%
90.00%
80.00%
70.00%
60.00%
50.00%
19.20%
40.00%
30.00%
20.00%
10.00%
0.00%
Finance
181
Table 6.7
Pre Purchase Strategies Adopted by Car Consumers
Variables
(N=250)
SA
ID
SD
Weighted Ranks
Average
Std,
Variance
Deviation
Score
Talking to
120
99
31
2.3560
.69223
.479
87
131
32
2.2200
.65522
.429
175
75
2.7000
.45918
.211
167
67
16
2.6040
.60717
.369
59
119
72
1.9480
.72346
.523
Websites
127
95
28
2.3960
.68194
.465
Expert
151
67
32
2.4760
.71236
.507
195
35
20
2.7000
.60950
.371
Sales Persons
Looking at
Advertisement
of cars
Collecting
Information
From Others
Visiting
Dealers
Showroom
Reading Auto
Magazines
Opinions
Test Driving
183
Table 6.8
Variables that Motivated for Purchasing the Car
Variables
(N=250)
Symbol of Social
MI
ID
LI
WAS
Ranks
Std,
Variance
Deviation
120
83
47
2.2920
.764903
.585
95
120
35
2.2400
.681364
.464
40
79
131
1.6360
.744123
.554
Guarantee/Warranty
218
32
2.8720
.334760
.112
Item of Necessity
191
43
16
2.7000
.582544
.339
Marketing
47
119
84
1.8520
.710009
.504
Luxurious Item
95
119
36
2.2360
.685700
.470
Family
199
20
31
2.6720
.685782
.470
172
55
23
2.5960
.653062
.426
From
the
Table
6.8,
Status
Time Saving
Device
Source of
Entertainment
Influence
Requirement
Economy
Interpretation-
it
is
clear
that
184
Expected N
Residual
47
83.3
-36.3
83
83.3
-.3
120
83.3
36.7
Total
250
Expected N
Residual
35
83.3
-48.3
120
83.3
36.7
95
83.3
11.7
Total
250
Expected N
Residual
131
83.3
47.7
79
83.3
-4.3
40
83.3
-43.3
Total
250
Expected N
Residual
32
125.0
-93.0
218
125.0
93.0
Total
250
185
Expected N
Residual
16
83.3
-67.3
43
83.3
-40.3
191
83.3
107.7
Total
250
Expected N
Residual
84
83.3
.7
119
83.3
35.7
47
83.3
-36.3
Total
250
Expected N
Residual
36
83.3
-47.3
119
83.3
35.7
95
83.3
11.7
Total
250
Expected N
Residual
31
83.3
-52.3
20
83.3
-63.3
199
83.3
115.7
Total
250
Expected N
Residual
23
83.3
-60.3
55
83.3
-28.3
172
83.3
88.7
Total
250
186
187
Table 6.8.10
Test Statistics (Testing of Hypothesis)
VAR 01
Chi-Square;
df
Asymp. Sig.
VAR 02
VAR 03
VAR 04
VAR 05
VAR 06
VAR 07
VAR 08
VAR 09
31.976
45.800
50.024
138.384
213.032
31.112
43.784
241.544
147.656
.000
.000
.000
.000
.000
.000
.000
.000
.000
188
Frequency
Percentage
Rank
T.V. Advertisements
136
54.4%
Newspapers/Magazines
80
32%
Friends/Family
148
59.2%
Internet/E-mails
78
31.2%
Radio/FM
3.2%
Brochures/Printed Displays
60
24%
3.2%
Self Decision
140
56%
(N=250)
190
191
Table 6.10
Factors Affecting Brand Preferences
Factors
Frequency
Percentage
Rank
Marketing Influence
86
34.4%
11
210
84%
Imported Technology
168
67.2%
192
76.8%
Guarantee/Warranty
196
78.4%
Technology Advancement
172
68.8%
Promotional Strategies
30
12%
13
Friends/Relative Recommendation
110
44%
100
40%
10
1.6%
14
Discounts Available
100
40%
10
Resale Value
146
58.4%
60
24%
12
122
48.8%
Competitive Price
149
59.6%
(N=250)
Brand of Car
Interpretation- The Table 6.10 clearly states that the most important
factor that make up the selection of particular brand is Brand
Reputation or Image (84%) followed by the Guaranty/Warranty
(78.4%) and Good after sales services (76.8%), whereas least
important factor is Acquaintance with Retailer. It may be due to the
fact that Brand Reputation or Image in the market place really helps in
making up the mind of the customer as it helps in selecting the
customer a particular brand in pre-purchase phase.
Implications for Marketers: The pull factor to a particular brand of
vehicle in this instance is the brand reputation in the market place.
192
Frequency
Percentage
Rank
128
51.2%
Children
76
30.4%
Parents
48
19.2%
Brother/Sister or
Dealers
Opinion Leader
50
20%
40
16%
Friends
128
51.2%
Solely self
90
36%
Any other
18
7.2%
Interpretation: It can be clearly seen from the above Table 6.11 that
spouse (51.2%) and friends (51.2%) play a vital role in making car
purchase decisions as people are more influenced by them so they ask
194
195
CONSUMERS
SATISFACTION
LEVEL
REGARDING
Frequency
Percentage
Excellent
64
25.6%
Good
120
48%
Satisfactory
51
20.4%
Poor
15
6%
Total
250
100
196
25.60%
20.40%
25.00%
20.00%
15.00%
6%
10.00%
5.00%
0.00%
Excellent
Good
Satisfactory
Poor
Testing of Hypothesis
Table 6.12.1: Chi-Square Test
Observed N
Expected N
Residual
1. Excellent
64
62.5
1.5
2.Good
120
62.5
57.5
3.Satisfactory
51
62.5
-11.5
4.Poor
15
62.5
-47.5
Total
250
91.152
df
Asymp. Sig.
.000
Frequency
Percentage
Very Satisfied
119
47.6%
Satisfied
126
50.4%
Dissatisfied
2%
Total
250
100
Car
198
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Very Satisfied
Satisfied
Dissatisfied
S. No.
Observed N
Expected N
Residual
1.Very Satisfied
119
83.3
35.7
2.Satisfied
126
83.3
42.7
83.3
-78.3
3.Dissatisfied
Total
250
110.744
df
Asymp. Sig.
.000
199
H0: Buyer is not satisfied with post purchase experience of their car.
H1: Buyer is always satisfied with post purchase experience of their
car.
Table 6.13.1.1 confirms Hypothesis 3:
Buyer is always satisfied with post purchase experience of their
car.
ANALYSIS OF CONSUMERS WISH TO BUY SIMILAR
BRANDED VEHICLE IN FUTURE
Question 23 investigated responses to in future if the
respondent wishes to buy any other premium, would they like to buy
the premium car of the same company? The results of question 23
are tabulated and graphically shown in Table 6.14 and Figure 6.8
respectively.
Table 6.14
Future Preference for the Same Brand
Buy Same Brand in
No. of respondents
Percentage
Yes
200
80%
No
50
20%
Total
250
100%
Future
brands. Table 6.14 illustrates that about 80% of the respondents will
progress in the same or similar manner in future when making their
decision. Trying this, together with confirmation of satisfaction
ratings concluded above (Table 6.13), results in the conclusion that
the future response of the majority of the respondents will result in the
loyalty route.
Figure 6.8 Future Preferences for the Same Brand
80%
80%
70%
60%
50%
40%
20%
30%
20%
10%
0%
Yes
no
Testing of Hypothesis
Table 6.14.1: Chi-Square Test
S. No.
Observed N
Expected N
Residual
200
125.0
75.0
50
125.0
-75.0
Total
250
201
90.000
df
Asymp. Sig.
.000
H0: Prospective buyer behaviour does not remain unchanged for the
future purchase of a premium passenger car.
H1: Prospective buyer behaviour remains unchanged for the future
purchase of a premium passenger car.
Table 6.14.1.1 Confirms Hypothesis 5:
Prospective buyer behaviour remains unchanged for the future
purchase of a premium car.
202
Table 6.15
Future Preferences for the Brand of Premium Cars
Future cars
Frequencies
Percentage
Rank
Maruti
18%
Hyundai
14%
Skoda
18%
Ford
16%
BMW
11
22%
Toyota
4%
Honda
8%
Total
50
100
brand
Preferences
4%
8%
18%
MARUTI
HYUNDAI
22%
14%
SKODA
FORD
18%
16%
BMW
TOYOTA
HONDA
203
Second most preferred choices are the Skoda and Maruti with
18% of the frequency. Toyota is the least preferred premium cars
brand as their future car among the consumers of the Uttar Pradesh.
Hence, BMW (22%), Maruti (18%) & Skoda (18%) and Ford (16%)
were the top mentions by the car consumers.
Frequency
Percentage
Rank
48
19.2%
Maintenance
62
24.8%
54
21.6%
Fuel Economy
40
16%
Breakdown
10
4%
Outdated Styling
64
25.6%
Safety
40
16%
Driving Discomfort
28
11.2%
Any Other
10
4%
204
205
Table 6.17
Characteristics of Premium Car Buyers
Variables
SA
ID
SD
WAS
Rank
SD
Varia
nce
High Income
24
2.9600
.20000
.040
Social Status
10
14
2.3600
.56862
.323
Esteem Conscious
22
2.8400
.47258
.223
Tempted
14
1.8000
.64550
.417
20
2.7600
.52281
.273
by
the
Promotional
Strategies
Family Influenced
Table 6.18
Characteristics of Premium Cars
Characteristics of Premium Cars
Frequencies
Percentage
28%
32%
10
40%
25
100
size cars
Total
207
Table 6.19
Occupational Profile of Maximum Premium Car Customers
S. No.
Occupation
Number of
Percentage
Respondents
1.
Business
11
44%
2.
Service
12%
3.
Professional
10
40%
4.
Others
4%
Total
25
100
45%
40%
35%
30%
25%
20%
12%
15%
4%
10%
5%
0%
Business
Service
Professional
208
others
SA
ID
SD
WAS
Rank
18
2.6800
.55678
.310
Luxurious item
22
2.8400
.47258
.223
Driving comfort
23
2.8800
.43970
.193
12
2.3200
.74833
.560
Family
17
2.6000
.64550
.417
Credit payment
10
1.8800
.78102
.610
Discounts
12
10
1.7200
10
.67823
.460
16
2.0400
.61101
.373
Brand reputation
23
2.8800
.43970
.193
Technological
22
2.8400
.47258
.223
14
1.8000
.64550
.417
22
2.8400
.47258
.223
11
1.8400
.74610
.557
Symbol of social
SD
Variance
status
requirement
available
Marketing
influence
advancement
Promotional
strategies
Good after sales
services
Location
of
workshop
209
Expected N
Residual
8.3
-7.3
8.3
-2.3
18
8.3
9.7
Total
25
210
Expected N
Residual
8.3
-7.3
8.3
-6.3
22
8.3
13.7
Total
25
Expected N
Residual
8.3
-7.3
8.3
-7.3
23
8.3
14.7
Total
25
Expected N
Residual
8.3
-4.3
8.3
.7
12
8.3
3.7
Total
25
Expected N
Residual
8.3
-6.3
8.3
-2.3
17
8.3
8.7
Total
25
211
Expected N
Residual
8.3
.7
10
8.3
1.7
8.3
-2.3
Total
25
Expected N
Residual
10
8.3
1.7
12
8.3
3.7
8.3
-5.3
Total
25
Expected N
Residual
8.3
-4.3
16
8.3
7.7
8.3
-3.3
Total
25
Expected N
Residual
8.3
-7.3
8.3
-7.3
23
8.3
14.7
Total
25
212
Expected N
Residual
8.3
-7.3
8.3
-6.3
22
8.3
13.7
Total
25
Expected N
Residual
8.3
-.3
14
8.3
5.7
8.3
-5.3
Total
25
Expected N
Residual
8.3
-7.3
8.3
-6.3
22
8.3
13.7
Total
25
Expected N
Residual
8.3
.7
11
8.3
2.7
8.3
-3.3
Total
25
213
214
Table 6.20.14
Test Statistics (Testing of Hypothesis)
ChiSquare
df
Asymp.
Sig.
VAR01
VAR02
VAR03
VAR04
VAR05
VAR06
VAR07
VAR08
VAR09
VAR10
VAR11
VAR12
VAR13
18.320
33.680
38.720
3.920
14.480
1.040
5.360
10.640
38.720
33.680
7.280
33.680
2.240
.000
.000
.000
.141
.001
.595
.069
.005
.000
.000
.026
.000
.326
215
Financing Limit
Frequency
Percentage
1.
2-5 lakhs
12%
2.
5-10 lakhs
36%
3.
13
52%
Total
25
100
Interpretation: From the Table 6.21 it can be clearly seen that most
of the sample fall in the category of More than 10 lakhs with 52%.
Least number (12%) of the respondents fall in the category of 2-5
lakhs. Since most of the dealers interviewed for filling up the
questionnaire deals in the premium and luxury cars as well, thus
premium cars can cost upto 15 lakhs and so as luxury cars for more
216
36%
40%
30%
12%
20%
10%
0%
2-5 lakhs
5-10 lakhs
217
Table 6.22
Average No. of Footfalls in a Week in Dealers Showroom
S. No.
Average No. of
Frequency
Percentage
footfalls
1.
Upto 100
32%
2.
100-200
15
60%
3.
200-300
8%
Total
25
100
60%
70%
60%
50%
40%
32%
30%
20%
8%
10%
0%
upto 100
100-200
218
200-300
Frequency
Percentage
1.
Upto 5%
36%
2.
6-10%
28%
3.
11-15%
20%
4.
16%
Total
25
100
219
40%
36%
35%
28%
30%
25%
20%
16%
20%
15%
10%
5%
0%
upto 5%
6-10%
11-15%
220
Table 6.24
Percentage Increase of Footfalls during Festive Season
S. No.
Percentage Increase
Frequency
Percentage
1.
5-15%
24%
2.
15-25%
12
48%
3.
28%
Total
25
100
35%
24%
30%
25%
20%
15%
10%
5%
0%
5-10%
10-15%
221
Testing of Hypothesis
Table 6.24.1: Chi-Square Test
Observed N
Expected N
Residual
8.3
-2.3
12
8.3
3.7
8.3
-1.3
Total
25
2.480
df
Asymp. Sig.
.289
H0: No. of foot falls does not increase in the dealers showroom
during festive season by more than 5%.
H1: No. of footfalls increases in the dealers showroom during festive
season by more than 5%.
Table 6.24.2 accepts the null hypothesis:
No. of footfalls does not increase in the dealers showroom during
festive season by more than 5%.
THE CONVERSION RATE OF THE CAR CUSTOMERS
Question no. 16 is framed to analyse the average conversion
rate of customers. Responses are categorized into four divisions; <5%,
5-10%, 10-15% and more than 15%. Frequency count was zero for the
More than 15% category and therefore not featured. Collected data
in shown in the Table 6.25 and Figure 6.15.
222
Table 6.25
Conversion Rate of Customers
S. No.
Conversion Rate
Frequency
Percentage
1.
<5%
32%
2.
5-10%
16
64%
3.
10-15%
4%
Total
25
100
32%
30%
20%
4%
10%
0%
<5%
5-10%
10-15%
chapter provides empirical support for the hypotheses framed for the
study. Chapter 7, which follows, presents an overall conclusion to this
study as well as future recommendations and details the key
contributions of this thesis. Moreover, Chapter 7 discusses a number
of research limitations and identifies potential avenues for further
research.
224
Chapter-VII
SUMMARY, FINDINGS, FUTURE SCOPE
AND CONCLUSIONS
Chapter-VII
SUMMARY, FINDINGS, FUTURE SCOPE AND
CONCLUSIONS
225
(LCVs),
multi-utility
vehicles
226
(MUVs)
and
heavy
229
the state of Uttar Pradesh. Marketers have to frame better policies for
car consumers as they tend to ask others before purchasing cars in
order to attract even more customers.
Findings of Analysis of Car Users Post-Purchase Satisfaction
When consumers satisfaction level regarding sales/servicing
provided by the dealers was analyzed, 94% of the samples
indicated that their satisfaction level lies between Excellent to
Satisfactory, whereas only 6% of the samples received poor
level of satisfaction from the dealers. Chi-Square test has been
carried out to test the hypothesis and Table 6.12.1.1 confirms
the Hypothesis:
Buyer is always satisfied with sales/servicing provided by the
dealers.
When consumers satisfaction level with their current car was
analyzed 98% of the samples indicated that they were very
satisfied to satisfied with their current car and only 2%
respondents were dissatisfied with their current car. Chi-Square
test has been carried out to test the hypothesis and Table
6.13.1.1 confirms the Hypothesis:
Buyer is always satisfied with post purchase experience of their
car.
233
235
include
marginally
revamped
interiors
and
CONCLUSION
The characteristics of the socio-econocultural environment in
which we have lived and are living has intimately influenced our
resources, tastes, and preferences. It therefore affects our behaviour
as customers by helping to define what we can and want to use, pay
for, and buy.
-Sheth, Mittal & Newman
After the detailed analysis of this exhaustive study, it is the time
to bring it to a meaningful conclusion. The global automobile industry
is a key sector of the economy for every major country in the world.
The industry continues to grow, registering a 30 percent increase over
the past decade (1995-2005) (Source: OICA).
In the post
237
238
239
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and
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Component
www.zigwheels.com
www.overdrive.in
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www.streetdirectory.com
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www.audi.com
www.toyota.com
www.skoda-auto.com
www.ford.com
www.hyundai.com
www.volkswagen.com
www.mitsubishi-motors.com
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253
ANNEXURES
(No.1)
QUESTIONNAIRE (FOR CONSUMERS)
Dear Respondents,
I solicit your kind co-operation in filling up this questionnaire to be used
for my Ph.D. thesis titled, A Study of Consumer Behaviour towards Premium
Passenger Car Segment in U.P. in Post-Liberalization Era (A Case Study of
KAVAL Towns). I shall be grateful if you kindly spare some of your valuable
time to respond the knowing questions. Contents and information provided by
you shall be kept absolutely confidential and used only for academic
purposes.
Name Sheetal
JRF (Commerce)
Kindly tick where appropriate:
PART I
1.
Name: ..
2.
Age (years): .
3.
Gender :
4.
State/Union Territory: .
5.
Occupation :
i. Service
iii. Business
v. Manufacturing
ii. Professional
iv. Agriculture
Educational Qualifications :
i. Non-Graduate
iii. Post Graduate
v. Any other (Specify)...
6.
7.
8.
i) Male
ii) Female
ii. 50,000-2,00,000
iv. 5,00,000 & above
PART II
9.
10.
11.
iii.
12.
ii.
iv.
13.
Model
i.
ii.
iii.
iv.
If this is not your first car, what was the make and model of previous
car(s)?
Make
14.
Model
i.
ii.
What Price of the car your may agree upon to pay for a Premium Car
of your liking :
15.
ii. Finance
16.
17.
18.
19.
Strongly
Indifferent
Agree
Strongly
Disagree
20.
Who among the following affects you most in making car related
decisions? (tick upto 3)
i.
Spouse
ii. Children
iii. Parents
iv. Brother/Sister or Dealers
v. Opinion leader
vi. Friends
vii. Solely self
viii. Any other (Pl. specify)..
21.
22.
23.
ii. Satisfied
iv. Very Dissatisfied
In future if you wish to buy any other premium car, would you like to
buy the premium car of the same company?
i. Yes
ii. No.
24.
If No, than which brand of premium car other than yours comes to your
mind and why?
...
....
....
25.
26.
Dislikes/Problems faced in your car out of the listed ones : (Can tick
more than one)
i.
Sales & servicing
ii.
Maintenance
iii.
iv.
Fuel economy
v.
Breakdown
vi.
Outdated styling
vii.
Safety
viii.
Driving discomfort
ix.
Any other thing you would like to share about your car?
...
....
....
(Signature of Respondent)
***
ANNEXURES
(No.2)
PART I
1.
Name: ..
2.
Age (years):
3.
Gender :
4.
Address:
5.
i) Male
ii) Female
PART II
6.
0-5 years
7.
i.
High Income
Indifferent
Strongly
Disagree
8.
9.
What are the key selling points of premium cars? (tick as many)
Strongly
Agree
i.
Indifferent
10.
11.
Business
ii. Service
iii. Professional
iv. Others
Strongly
Disagree
i.
12.
Yes
ii. No
<2 lakhs
13.
..
14.
ii. Others
15.
<5%
ii. 5-15%
iii. 15-25%
16.
< 5%
ii. 5-10%
iii. 10-15%
(Signature of Respondent)
***