Comparing Automatic vs Manual Car Sales

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND
MANUAL TRANSMISSION CARS IN C, D AND SUV SEGMENT

SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES - PUNE 1

SUMMER TRAINING PROJECT REPORT SUBMITTED TOWARDS
PARTIAL FULFILLMENT OF MASTERS DEGREE IN BUSINESS
ADMINISTRATION.
ACADEMIC SESSION - 2005 - 2007

UNDER THE GUIDANCE OF: SUBMITTED BY:

Mr. Nipun J Mahajan Ankur Agarwal
(Head - Sales Planning) International Business
HONDA SIEL CARS INDIA LTD. (Marketing & Finance)
Surajpur - Kasna Road ankuragarwal07@gmail.com
Greater Noida
Uttar Pradesh

Symbiosis Institute Management Studies
Pune

CONTENTS
SR.NO TOPICS
PAGE
NO.
1 CERTIFICATE 3 - 4
2 ACKNOWLEDGEMENT 5
3 ABSTRACT/EXECUTIVE SUMMARY 6
4 RESEARCH OBJECTIVE 7 - 8
5 HONDA COMPANY - INTRODUCTION 9 - 16
6 HONDA SIEL CARS INDIA LTD - INTRODUCTION 17 - 39
7
PROJECT 1 - PROMOTIONAL TOOLS USED IN AUTOMOBILE
INDUSTRY
40 - 44
8 PROJECT 2 - PETROL & DIESEL CAR VARIANTS SALES ANALYSIS 45 - 48
9 RESEARCH METHODLOGY 49 - 53
10
PROJECT 3 - COMPARATIVE MARKET ANALYSIS OF AUTOMATIC
TRANSMISSION AND MANUAL TRANSMISSION CARS IN C , D
AND SUV SEGMENT
54 - 57
11 DATA ANALYSIS / FINDINGS 58 - 76
12 SWOT ANALYSIS 77 - 80
13 CONCLUSIONS 81 - 82
14 SUGGESTIONS 83
15 QUESTIONNAIRE 84 - 89
16 ANNEXURE 90 - 96
17 BIBLIOGRAPHY 97







ACKNOWLEDGEMENT

I owe profound gratitude and sincere regards to my erudite mentor Mr. NIPUN
MAHAJAN (Manager - Sales planning) who throughout the course of this project
have been a motivating force. I am indebted to him for the active involvement in
the extensive discussions, which have taken place over the past month despite his
busy schedule. He has been an invaluable source of thoughtful comments and
conceptual insights and I would like to thank him for the intellectual input and help
in conceptualizing the project.

I would also like to thank, Mr. M. TAKEDAGAWA (CEO & President), HSCI, for
allowing me to avail the facilities of the center.

A big vote of thank goes out to Sales Planning team who taught me the various
aspects of the department from scratch and provided me with their valuable
expertise and help opportunity during crisis. I am highly grateful to them for giving
me the chance to work with them and for their indispensable support throughout
the training period.

And finally no words are good enough to acknowledge my parents for their
continuous backing and support. I pray God that I stand up to their expectations.

05
th
July 2006

Ankur Agarwal



ABSTRACT

The objective of this project is to study the scope for Automatic transmission
car; the information pertaining to the practices was obtained by visiting the
company personnel, street walkers, shopping malls, parking lots, prospective
buyers and Honda car Dealers. Crucial factors that emerged were: Pricing,
Brand Name, Availability, Fuel Economy, Maintenance Cost, etc.

The various Dealers were visited to have a deep understanding on their daily
schedule of the number of customers visiting and the number of enquiries for
the Automatic transmission cars in which there was effective sale.

Also a survey of car owners was carried out to determine the factors that are
crucial in car purchasing decision.





OBJECTIVE

To analyze the demand of Automatic transmission car over Manual transmission car
in Indian market:
i) by determining factors affecting customers buying decision with focus on
the C, D and SUV segment car
ii) by knowing the actual demand trend of Automatic transmission over
Manual transmission

RATIONALE

The survey was conducted:
to find out the actual demand / need of Automatic transmission cars
to do a Demand forecast of Automatic transmission cars
to plan a better production mix of Automatic and Manual transmission cars
thus ensuring right product at right time in right quantity to the end
customers by maintaining low inventory levels at Dealership and at HSCI.




HDN0A ACKCPDUN0
Existing over the years, Honda has gained prominence in the global community
through ceaseless innovation and a commitment to servicing the needs of society.
Hondas unique corporate culture and groundbreaking approach to developing new
technologies enable the organization to develop exciting new products that provide
freedom of movement for people around the world. With responsibility to the
environment, a commitment to local markets, and respect for people as its guiding
principles, Honda aims to contribute to an increasingly mobile society characterized
by quality of life, comfort and convenience.

A local approach with a global outlook best meets the individual needs of diverse
markets. Hondas philosophy is to produce where there is market demand. By
integrating with local customs and cultures, and making use of local management
resources, Honda has been able to serve the people better of the regions in which it
operates. Products meeting specific needs in each of four world market regions i.e.
America, Europe, Middle East and Africa/Asia and Oceania/Japan are developed ,
produced, and sold in these regions Hondas global network enables the exchange
of ideas and information among employees to assure a higher level of creativity in
technology and products.

At Honda, every employee knows that our founders first commercial product
release was an engine. Over the years, Honda has come to lead the industry in
engine manufacturing, creating everything from small electric bicycle motors to
some of the largest and most powerful automotive racing engines in the world. In
recent years, the Honda name evokes images of motorcycle, automobiles, and
power equipment products. Each of these three product categories constitutes a
viable and robust industry in its own right. As these operations develop and grow,
each with its own distinctive technology and business style, Honda as a whole is
enriched by the diversity of products and enterprises that are based, as always,

upon the engines that first made Honda great. Engines that are now the cleanest,
most popular in the world.

FOUNDERS
The history of the Honda Motor Company began with the vision of one man -
Soichiro Honda. His dream was personal mobility for everyone.
The Power of Dreams

Soichiro Honda founded the Honda Motor Company in 1948. In the same
year, he designed and engineered the first product of this company - a 50 cc
motorized bike on a bicycle frame - in his small shed at Hamamatsu. Today, as we
celebrate our 50th Anniversary, Honda is a global company with a global viewpoint
and a five-region global strategy that is reflected in a solid commitment to local
markets and economies.
...Where it aII starts with a dream
A pIace to fuIfiII our dreams..

Challenging the Limits
'Challenging the Limits' is a phrase commonly heard across the length and breadth
of Honda. It was made popular by its founder, Soichiro Honda, who knew that his
fledgling company had to out-think and out-perform its competitors every step of
the way in order to survive. After all, he started out at a time when his country was
devastated by war.

Honda's Global Vision
Soichiro vision was international in character. His desire was to lead the world in
technology, and make a significant contribution to the creation of a better society.
As a result, most of the products that Honda developed started out by making a
difference. Whether it was the CVCC engine in the sixties or the solar powered car
of the nineties, they all sought to challenge and overcome conventional wisdom.

World's Toughest Training Tracks
No story of Honda is complete without the mention of motor sports. Honda started
participating in racing at the highest level much before it found international
acclaim as a manufacturer. Once again, it was Soichiro Honda who was the driving
force. He considered the highly competitive world of motor sports as the ideal
training ground for his people. Through racing, Honda engineers learnt to
accomplish more than they ever dreamed possible within limited amounts of time.
They become quicker at responding to the technological challenges that arise in the
commercial world.
Honda's belief in the benefits of racing is sincere and unwavering. The company has
invested millions of dollars in building two world-class racing circuits. The Suzuki
opened its gates in September 1962. Located in northern Japan, it has become an
integral part of the Grand Prix calendar. The Twin Ring Motegi, on the other hand,
is a racing circuit for fans. Inaugurated in August 1997, it offers an oval-shaped

Super Speedway, an Active Safety Training Park and the extremely popular Honda
automobile museum.

Innovation Everywhere
Honda is already, and literally, making big strides in the development of the world's
first humanoid robot. Christened ASIMO, it is designed on the presumption that if a
robot could walk like a human, it may be able to work like one. Honda is also taking
to the skies with its very own aircraft technology. It took a 30-man team only six
years to develop a prototype. Typical of Honda, the project leader was not quite 30
years of age when the experimental aircraft was first unveiled in1993.
Together, these diverse ideas prove the one central maxim that is dear to everyone
at Honda - Challenging the Limits.


Honda Motor Co. Ltd.: CORPORATE PROFILE

Companys Name : Honda Motor Co. Ltd.
Head Office : Tokyo, Japan
Established : On September, 1948 by Mr. Soichiro Honda
President and CEO : Takeo Fukui
Capital : 86 Billion Yen
Employees / Turnover : Employees Turnover (Billion Yen)
Japan : 44,000 1,612
Worldwide : 137,827 4,487
R&D Focus : Spends 334 Billion Yen annually.
Consolidated subsidiaries : 339 subsidiaries
Chief Products : Motorcycles, automobiles, power products

A US $ 84 Billion Enterprise with over 20 million products sold annually.
95 Production Facilities in 34 countries.
Over 4 million Portable Power Products sold annually.
Over 40 million Portable Power Products existing customers base worldwide.


HONDA MILESTONES
IsIe of Man TT Race
ASIMO
CVCC
FueI CeII Car
MiIestones
AirpI ane
FormuIa-1


HONDA GLOBAL OPERATIONS

Unit SaIes SaIes Turnover
( '000) (MiIIion ) (MiIIion Rs.)
AutomobiIe 3391 8005 3202
MotorcycIe 10,271 1225 490
Power Prod. 5876 370 127
TotaI 19538 9600 3819
Product
Honda's worIdwide operations is divided into 6 autonomous regions
JAPAN REGION
NORTH
AMERICAS
REGI ON
SOUTH
AMERICAS
REGI ON
EUROPE-AFRICA-
MIDDLE EAST REGION
ASI A/ OCEANI A REGION
GIobaI Operations - FY2006
Canada
USA
Ohio
AIabama
Mexico
CoIumbia
BraziI
Peru
Nigeria
UK
Morocco
Mauritius
Spain
France
Turkey
ItaIy
AustraIia
Indonesia
MaIaysia
ThaiIand
PhiIippines
Taiwan
Tochigi
Saitama
Hamamatsu
Suzuki
Kumamoto
China
India
Pakistan
BangIadesh
Vietnam
AutomobiIes
MotorcycIes
Power Products
Legend
HONDA
HONDA
-
-
OPERATIONS
OPERATIONS



HONDA SIEL CARS INDIA LTD. (HSCI)
Joint venture Honda with SIEL Ltd- Honda Siel Cars India Ltd.HSCI was established
in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) being the
key promoters. The company figures among the top players in the Indian premium
and luxury car market.

HSCI started commercial production in December 1997 with its indigenous level at
over 50%, which has been raised progressively and is currently over 82%.

Honda SIEL introduced the Honda City car, an extremely successful engineering
marvel, in India in December 1997. In August 2000, Honda Siel added to the line-
up by introducing the Honda City VTEC.
The internationally successful Honda Accord was launched in July 2001. The
company introduced its latest version, the all-new Seventh Generation Honda
Accord, in July 2003. Simultaneously, the company also introduced CR-V, offering a

unique combination of 'sedan and SUV', thus creating a new segment in the Indian
car industry.

HSCI COMPANY PROFILE

Name of the Company : Honda Siel Cars India Ltd.
CEO & President : Mr. M Takedagawa
Established on : 5
th
December 1995.
Location of Unit : Plot No. A-1, Sector 40/41
Surajpur-Kasna Road
Greater Noida Industrial Development Area
Capital - Paid Up : Rs. 3600 Million
Equity Share Capital : Honda Motors, Japan: Siel Ltd.
99% : 1% (Current)
Board of Directors : Honda (6 Members)
- President and CEO
- VP and Director (Works)
- Director (Finance and Accounts)
- Director (Materials)
- Director (Marketing)
- Director
: Siel Ltd. (2 Members)
- Chairman
- VP and Director (Admin.)

Investment : Rs. 7800 Million
Installed Capacity : 50,000 Units per Annum
(2 Shift basis)


Item of Manufacture : 1. Honda City Models
EXi, GXi, GXi-CVT, VTEC
2. Accord V6, VTiL 2.4 (M/T & A/T)
3. Honda Civic (M/T & A/T)

Commencement of Production. : 15
th
December, 1997
Indigenization % : Startup (Dec 97) - 57%
(July 05) - 82 %
No. of Associates : 2300
Total Land Area : 150 Acres (Approx.)

Exports: HSCI started exporting cars from Dec. 2000.
xports were made to SRI LANKA in Dec. 2000 & to BANGLADESH in 2001
Items Manufactured: Latest world class fuel efficient cars - CIVIC, CITY &
ACCORD
Though HONDA CRV is imported from Thailand


DEPARTMENT - SALES PLANNING

OBJECTIVE
To provide right product at right time for right quantity and ensuring low
Inventory levels at Dealer and HSCI

SALES FORECASTING
Short & Long term forecasting of Auto industry
Preparation of Honda Business Plan
Assigning Dealer wise Sales & Activity targets for the year

MONITORING
Dealer wise Business Performance - Thru Progress Report on Daily basis
Monthly Auto Industry Sales - Market Share, Segment Contribution & Growth

SALES & PRODUCTION PLANNING
Prepare Monthly Plan (Niguri)
- Wholesale / Retail / Dealer Stock / HSCI Stock / Backorder
Feedback from respective Zonal Managers / Regional Managers / Area
managers for Demand forecast
Coordinating with Manufacturing for production of cars as per market
requirement.

MARKET REQUIREMENTS
Formulation & Implementation of Sales Promotion Schemes


SALES PLANNING - ACTIVITY CHART

I
N
P
U
T
S

TO

N
I
G
U
R
I
Industry
WhoIesaIe
(MonthIy)
DeaIer wise
ResuIt
(MonthIy)

SALES
PLANNING
M
O
N
I
T
O
R

R
E
S
U
L
T
S
Target Vs
Achievement
Of ResuIt /
Activity

Manage
Demand
For Variance
Coordinate
with
Manufacturing
for
Production
Requirement
Generate
Monthly
Targets
Improve

OTHER DEPARTMENTS IN HSCI

In HSCI, following Departments are there:

Marketing Department
Works Department
Materials Department
Finance & Accounts Department
Administration Department

MARKETING DIVISION:
Various functions related to Marketing division are as follows:

MARKETING:
The primary function of this department is Advertising/Sales Promotion/Event
Management/ Merchandising/POP/Market Research/Product Planning Press and
Public Relations.

SALES:
The function of this department is Order infrastructure development and
Maintenance, Dealer Management, Audit, progress report.

TRAINING:
This department deals with the Sales Training.


COMMERCIAL:
This department deals with the Vehicle dispatch to HEADS, Documentation and
bonded warehouse, excise related Matters/Inventory control/Stock inspection.

SERVICE:
This department is there to provide Service to customers so as to maintain the
safety and reliability of product.

PARTS:
Strategic planning of spare parts.
To facilitate ordering, Logistics (warehouse and dispatch) and inventory
control of spare parts.
Sale of spares of all H.E.A.D.s.
Pricing of spares and accessories/planning and facilitating exports.

WORKS DIVISION:

In Works Department, there are different sections:

PPC: Production and Materials Planning to meet sales plan.

Imports: Logistics Planning and shipment, clearance of imports/exports.

Material Service: Receipt and delivery of parts on line/Inventory control.

Weld Shop: Manufacture of white body units with sheet metal components
received from KD and local part suppliers.


Paint Shop: Surface treatment and painting of white body and bumpers,
Small parts (mirror parts /door handles etc.).

Engine Assembly: Assembly and testing of engines manufactured with
KD and local parts supplied.

Final Assembly: Manufacture of complete car units with KD, local parts, and
other assemblies/ subassemblies after receiving painted body sheet and Engine
Assemblies.
Vehicle Quality: Finished product quality, IQS/sampling, market-quality.

Quality Control:
To ensure quality of local parts-Problem analysis of KD Parts.
Co-ordination of ISO-9002, NHC activities and vendor ratings.
Material testing and calibration of equipments.
Works Administration: Training, Safety, Japanese translation.

Utility: Operation and Maintenance of utilities and civil structure.

TRC and Spec Control:
Problem analysis/study of specifications, Change application.
Control of drawings/specifications.
Product development and Homologation.


MATERIALS DIVISION:

MSPC GROUP (Material strategic planning and control group):
MIS Data management
Long term planning
Administrative work

NEW DEVELOPMENT GROUP:
Supplier identification and maker layout
Localization of imported components
Planning/development of new model components

PROCUREMENT GROUP:
OE (Original Equipment)
Procurement of OE components
Supplier control
Cost management/reduction

NON OE (Non Original Equipment)
Procurement of:
Consumables
Capital goods
General material


FINANCE AND ACCOUNTS DIVISION:

1. Finance: Financial planning, arrangement and monitoring of funds, day to day
banking, import accounting, foreign exchange management and Insurance.

2. Accounts: Maintaining the books of accounts, finalization of Balance sheet and
MIS (including monthly profitability, credit control etc.).

3. Costing: Maintenance of cost records, budget variances and MIS (Management
Information System) to the Management.

4. Excise, Sales Tax and Income Tax: Compliance with the statutory
requirements, filing of returns and assessment of cases.

5. Information Technology: Maintenance of data base, providing service
/support to user departments and software development.


ADMINISTRATION DIVISION:

ADMINISTRATION: To provide administrative support to the organization this
encompasses transportation, locker rooms/uniforms, canteen, communication and
expatriate affairs.

HUMAN RESOURCES: Manpower planning, recruitment and selection,
performance management, compensation management, training and development
and welfare activities.

INDUSTRIAL RELATIONS: * Industrial harmony, personnel functions for line
associates, attendance, payroll management and compliance to labour laws.

CLINIC: Need-based medical assistance for all Associates and line associates,
management and rehabilitation of injury related cases and health & hygiene
oriented training.

CORPORATE AFFAIRS: Liaisioning with Govt. Agencies.

SECRETARIAL & LEGAL: To look after legal and company law Compliances.

SECURITY: To ensure security of company assets and resources.


HONDA PHILOSOPHY

MISSION

Fundamental
Beliefs
VISION

Company
Principle
Honda`s
World-wide
Global
Standards
STANDARDS

Management
Polices
CULTURE

Corporate
Culture


MISSION:

FUNDAMENTAL BELIEFS:

RESPECT FOR ALL INDIVIDUAL: Each individual is unique and has the
capacity to think reason and create.

a) INITIATIVE:
Not to be bound by preconceived notions.
Think creatively and act on your initiative and Judgment.

b) TRUST:
Relationship should be based on trust.
Trust is created by recognizing each other as an Individual.
Helping others, accepting help from others and
Sharing our knowledge.

c) EQUALITY:
Recognize and respect individual differences.
Treat each other fairly.
Create equal opportunities for each individual.
No discrimination on the basis of race, age, sex,
religion, national origin, educational background,
Socio-economic status.


THE THREE JOYS:

a) JOY OF BUYING:
Achieved by providing products and services that exceed the needs and
expectations of each customer.

b) JOY OF CREATING:
Occurs when Honda associates recognize a sense of joy in customers and
dealers by creating quality products which exceed expectations.
All associates experience pride in a job well done.

c) JOY OF SELLING:
Occurs when sales and service associates develop relationships with
customers based on mutual trust.
Associates and dealers experience pride in associating with Honda and
representing Honda Products to customers.


VISION:

COMPANY'S PRINCIPLE:

Maintaining a global viewpoint, we are dedicated to supplying products of highest
quality yet at a reasonable price for World-wide customer satisfaction.

STANDARDS:

MANAGEMENT POLICIES:

Proceed always with ambition and youthfulness.
Respect sound theories, develop fresh ideas and make the most effective use
of time.
Enjoy your work and encourage open communication.
Strive constantly for a harmonious flow of work.
Be ever mindful of the value of research and endeavor.


PPD0UCTS

Honda Siel Cars India Limited is proud of its commitment to offer the very best of
Honda to the Indian customers.

The company has revamped its complete product offering in the year 2003, with
new versions for two of its cars, and launch of a new product, the Honda CR-V. The
old Accord and City cars have been replaced with new generation cars - the
Seventh Generation Accord and the All-New Honda city. The company has also
pioneered a new segment in the Indian automobile industry with the launch of
Honda CR-V, which offers its customers a distinctive combination of 'the comfort of
a Sedan' and 'the thrills of an SUV. All three Honda products have been well
accepted and highly appreciated in the market.

Honda Siel Cars India Ltd, leading manufacturer of Premium Cars in India
registered an increase of 21.5% in the cumulative domestic sales for the calendar
year period January 06 - May 06, as compared with cumulative domestic sales
during the corresponding period in the previous calendar year.
In terms of volumes, the cumulative domestic sales have jumped from 17,779 units
during January - May 2005 to 21,596 units during January - May 2006.
Honda Siel Cars India (HSCI) will double its production capacity from the current
50,000 units per annum to 100,000 units by the end of 2007, putting its expansion
plans on a fast track. Announcing Hondas global plans and initiatives towards
2010, Honda will also consider further expansion to accommodate future growth in
customer demand.


UNBELIEVABLE CITY

The Unbelievable New City - tailor-made for Indian roads and eco-friendly as well,
the new City is the ultimate word in safety and style. The fantastic looks and
amazing technology make it all the more Unbelievable.

Variants - EXi (Manual)
- GXi ( Manual)
- CVT ( Automatic)
- ZX ( Manual )
Engine Power - 100 PS
MARKET SHARE
Fiesta,
10%
Ikon, 9%
Accent,
23%
Esteem,
16%
Others,
14%
City,
28%

UNBEATABLE ACCORD

The All New Seventh Generation 2003 Honda Accord - the benchmark for all luxury
sedans in its category. The car which draws its inspiration from a cheetah is
aggressively beautiful and simply put, just Unbeatable.

Variants Available VTiL 2.4 Manual (Petrol)
VTiL 2.4 Automatic (Petrol)
V6 3.0 Automatic (Petrol)
Engine Power - 221 Bhp
MARKET SHARE

Camry
12%
Sonata
10%
C CIass
12%
Accord
48%
Laura
10%
Others
8%

INCOMPARABLE CR-V

The CR-V - A new addition to the Honda family that blends the best features of a
sedan and a sports utility vehicle. Luxury and adventure both rolled into one, the
CR-V is just Incomparable.
Variants Available - 2.4 Manual
2.4 Automatic

Engine Power - 158 Bhp
Unit - Imported directly from Thailand
MARKET SHARE

Tuscon
21%
Endeavo
ur
33%
CR-V
33%
Others
13%

Sales
The sales record in the past has been good. The company sold 9631 units of
Honda City in 1998-99, 9698 units in 1999-2000, 10011 units in 2000-2001
and 10,920 cars in 2001-02. By the end of the financial year 2002-03, the
cumulative sales achieved by the company during the year have also jumped to
13,300 units, showing an impressive growth of 21.79 per cent over the
corresponding period in the previous fiscal.

All three Honda products have been well accepted in the market. Since the
launch of the 7th generation Accord in July 2003, we have sold 861 units till
October 2003. It still has a waiting period of 4 weeks in the market. The CR-V
has also been doing very well in the market and we have delivered about 400
CR-Vs till October 2003, since its launch. The CR-V too has a waiting period of
4-5 weeks in the market. The latest Honda launch in this fiscal - the new City -
has sold 813 units within 2 days from its launch on October 30, 2003.

7200
8555
9854
15881
26362
30948
0
6000
12000
18000
24000
30000
36000
2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
SALES (n Mill. Rs.)


AWARDS ARCHIVE
Awards for Honda City
In 1998, the Honda City was ranked the Best Midsize Car in Initial Quality
andtheMostAppealingMidsizeCar.

Its very first product, the Honda City has anchored a string of J. D. Power
Asia-Pacific Awards.

In the year 2000, the brand was awarded No.1 Nameplate in Customer
Satisfaction, as well as No.1 Nameplate in Sales Satisfaction.
CNBC Autocar Car of the Year 2004 - Honda City
ICICI Overdrive Car of the Year 2004 - Honda City
Business Standard Motoring Car of the Year 2004 - Honda City


Awards for Honda Accord

Accord DX/LX coupe and sedan models named "Best Midsize" under $19,500
Accord EX sedan as "Best Midsize" over $19,500

Car & Driver, USA named the Accord to its "10 Best" list for the 13th time.
According to Car & Driver, the Accord merited this distinction because of its
"relentless refinement since its debut more than 20 years ago".

ICICI Overdrive SUV of the Year 2004 - Honda CR-V


FLOW DIAGRAM - MANUFACTURING PROCESS
MATERIAL
SELECTION
FINAL
ASSEMBLY
WELD
SHOP
ENGINE
ASSEMBLY
VEHICLE
QUALITY
CAR
LOADING
PAINT
SHOP



OBJECTIVE

The objective of this project is to study the Hondas competitor brand dealers
pricing & benefits along with the promotional tools used in automobile industry
which they use to lure the customers in car market with focus on the D-Segment
and SUV segment car.

The second stage involves survey of all Dealers to identify the pricing strategy that
make customers purchase the new car in D & SUV segment. The survey also tries
to determine the various loyalty programs and competing dealers approach to the
customers.

Data Collected:

Brochures
Price Quotations

Competing dealers Visited:

Hyundai
Ford
General Motors
Tata Motors
Toyota
Maruti
HM-Mitsubishi


FINDINGS:

MARUTI
Model - Baleno Vxi

Price (Ex Showroom) - Rs 6,66,471
Free Insurance - Rs 24,541
Free Accessories - Rs 28,000
Cash Discount - Rs 7000

Model - Esteem Vxi
Free Accessories - NIL
Cash Discount - Rs 2000

HYUNDAI

Model - Sonata Embera ( Automatic 2.4 L )

Free Accessories - Fully Equipped Accessories
Cash Discount - Rs 50,000 ( Dealers discount )

Other Benefits - Rs 1, 00,000 Hyundai loyalty discount.

Model - Elantra ( CRDI LP 2.0 L )
Free Accessories - Fully Equipped Accessories

Other Benefits - Rs 6,900 extended warranty waived off
- Rs 1, 00, 000 already reduced by Hyundai

Model - Accent ( CRDI 1.5 L )


Other Benefits - Rs 5,950 extended warranty waived off
- Free MP3 Player

SKODA
Model - Rider ( TDI 1.9 Petrol / Diesel )

Free Insurance - NIL

Other Benefits - 4 to 5 car purchase bulk order, Rs 25,000 cash discount
on each car
FORD

Model - Fiesta ( SFX Petrol )
Free Insurance - NIL

Other Benefits - NIL


INFERENCE

1. Automobile companies using high end Promotion and marketing mix to lure
the customers.

2. Dealers throw away cash discount & free accessories to invite customers buy
the car.

3. Promotional schemes and benefits like free insurance, extended warranty are
some features which today every customer looks for before purchasing the
car.

4. Higher segment cars offer higher discounts.

5. Skoda auto, gives away no offers and benefits, as it believes the pricing of
the car and both of its variants are priced well.

6. Indian automobile Industry today is customer focused, and customer
oriented market.
SUGGESTIONS
1. Honda cars should approach Indian customer by understanding his needs.

2. Rising level in incomes, Is a significant factor in increasing car customers,
Honda should look forward to these prospective buyers.

3. Superior Quality product with extensive marketing, by company & the
dealerships could create a big market for Honda cars.

4. Honda should look forward to give away, the customer the benefits to
compete with competitors approach.





OBJECTIVE

The objective of this project is to study the sales of cars in the petrol and Diesel
variants on percentage basis market with focus on the D-Segment and SUV
segment car.

The second stage involves survey of all open Dealers, who are in the business of
buying and selling of 2
nd
hand cars, as they could give the proper idea in regards to
the market for petrol and diesel variants of the cars sold in the market and
customers buying perception.

Data Collected:

Percentage of cars sold in Petrol and Diesel models.

Dealers Visited:
19 No.s

Open Dealers Location Visited:

Karol Bagh ( New Delhi)
Ashok Vihar ( New Delhi)


ANALYSIS

SEGMENT

MODELS

PETROL

DIESEL

PETROL MODEL %

DIESEL MODEL %

A Ambassador 25.78 73.31

IndIca 10.73 87.52
PaIIo 30 60.26
IndIgo 20.68 6.05

C Accent 45.42 55.8
Lancer 41.31 48.6
Ford FIesta 32.78 64.87

0 Skoda DctavIa 18.42 82.23
C - CIass 35 63.47
EIantra 37.63 55.68
Superb 2.73 68.26
Laura 5.78
LK , PS 46.05 51.8

SUV Endeavour .73 0.26
NIssan 4.21 N.A
Pajero 0.36 N.A
SafarI 16.15 83.23
ScorpIo 11.4 87.84

LocatIon - KaroI agh, Ashok VIhar l SampIe SIze - 1 open car 0eaIers


Findings:

Diesel cars sell more in the SUV segment as because of the fuel cost.
Cars like Skoda sell more of its diesel Engine cars as because of the pricing of
its diesel and petrol variants are same.
Nissan and Pajero share a negligible market share so its difficult to analyze
the percentage of its variants.
C segment cars sell equally close to both variants as generally its owned by
customers for self use, and because it requires lower maintenance.
Cars like Indica, Indigo, palio which are used basically for the taxi services
sell more in diesel variants because of fuel cost.
Diesel cars used more by customers who have high highway usage.
It also depends upon the customers choice and preference

Suggestions:

Honda cars should also focus in diesel variants, as its a big market because
of rising petrol prices.
Competitors are available in both the variants, so it should be a matter of
concern for Honda for its future market.
Focus can be on the CNG / LPG propelled cars for the Indian markets.





Research Design:

It is the plan, structure of investigation conceived so as to obtain answer to
research question and to control variance. It is the specification of methods and
procedures for acquiring the information needed.

It is concerned with:

Overall operational pattern

Framework of the project

Stipulates what information is needed

The first step that undertakes in the report was the selection of research. The
research design, which was adopted for the study, was exploratory and descriptive
in nature. At first exploratory research was conducted to define know the problem
well and the descriptive research was conducted.

The two types of research are as follows:

Exploratory research: It is to generate new ideas. In this respondent
should be given sufficient freedom to express themselves. E.g.: - In a
business where sales have been declining for the past few months, the cases
exploratory research used to be conducted.

Descriptive research: They are well structured. It can be complex, a high
degree of scientific skill on the part of the demanding a high degree of
scientific skill on the part of the researcher. It can be taken in certain
circumstances. When the researcher is interested in knowing the

characteristics of certain groups such as age, sex, educational level,
occupation or income, a descriptive study may be necessary.

Cross-sectional studies: It is concerned with a sample of elements from a
given population. Data on a number of characteristics from the sample elements
are collected and analyzed.

It has a wider scope.
Detailed information can be obtained.
It is economical.
It takes less time.

Data Collection Methods:

In this two kinds of data have been used:

Primary data: In this research primary data collected by the samples
survey methods personal data collected by the samples survey employed.
In this method personal interview technique was employed. In this, I have
asked questions from the respondent in a face to face meeting.

Secondary data: In this research, secondary data was collected and
used to understand the problems well and explore ideas related to the
problem.
This process of secondary data otherwise called desk research secondary
data means which is collected earlier like articles in secondary data means
which is collected earlier like articles in newspapers, companys past

record in the company and from the company website. I have also used
this.

Research Instruments:

I have prepared structured questioner to collect the data and is consisted of
Rank/Multiple-choice questions, direct questions and open-ended question. The
main function of the questionnaire was to know the consumer perception about the
need, scope and requirement of automatic transmission cars in the future.

Sample Plan:

A part of a population or a subset from a set of units which is provided by some
process or other.

Sample Size: The sample size considered is 125.

Method of Sampling: I have used stratified random sampling. It is one
where the population is divided into mutually exclusive and mutually
exhaustive strata or sub-groups.

It gives every unit of the population a known and non-zero probability of
being selected. It gives an equal probability to each unit of the population for being
included in the sample.



I have divided my survey into various segments:

Dealers
Shopping malls
Parking Areas
Offices
Service stations
Others




The following chart shows the Number of each Category:

CATEGORY SAMPLE COLLECTED
Dealers
4
Shopping malls 3
Parking Areas 5
Offices 9
Service stations 5
Others 2

DEALERS -

Prime Honda , Ghaziabad
South end Honda , Badarpur
Ring Road Honda , Peeragarhi
Ring Road Honda , Moti Nagar

SHOPPING MALLS -

Centre Stage Mall,Noida
Shipra Mall , Ghaziabad
Ansal Plaza , South Extension, New Delhi

PARKING AREAS -

Cannaught place , New Delhi
Spice world , Noida
Atta market , Noida
Metro station , Secretariat, New Delhi
Sector 29 market , Noida


OFFICES -

Noida - 4 offices
New Delhi - 5 offices

SERVICE STATIONS -

At Honda Dealers location - 4
Sector 15 , Motor Market , Noida - 1

OTHERS -

Noida
New Delhi


Step-by-step approach
Step 1: Establish relationship between primary and secondary sales.
Secondary sales = opening stock of dealer + primary sales - closing stock
Step 2: Secondary Sales = NxFxVxQ
Step 3: Decide on F based on availability of infrastructure. Decide on varieties
based on company's marketing policy. Decide on Q based on velocity of movement
of the variants.
Step 4: Arrive at N to achieve budgeted secondary sales
Step 5: Pegging any three parameters and working out the fourth can be done
through iteration.
This dealer-wise planning should be aggregated for the area in which planning is
being done. This can be done at the year's beginning and a course correction made
during the course on a monthly or quarterly basis.
This model can be effectively used by persons ranging from a dealer
to an area sales manager to a marketing controller
(Source -Prof. A.B Rao Faculty- Research methodology)

Symbiosis Institute of Management Studies)




Features /Factors taken into consideration for analysis
CUSTDhEPS FACTDPS
0EALEPS FACTDPS

rand Name rand Name
PrIce PrIce 0Ifference
0rIvIng Comfort 0rIvIng Comfort
TechnoIogy TechnoIogy
EngIne Power EngIne Power
0esIgn EngIneerIng 0esIgn EngIneerIng
Safety Features Low N-V-H (NoIse-VIbratIon-Harshness)
AvaIIabIIIty of AT TransmIssIon Safety Features
AvaIIabIIIty of fueI optIons (0IeseI l PetroI) FueI Economy
FueI Economy FueI DptIons (0IeseI l PetroI)
haIntenance Cost haIntenance Cost
StyIIng StyIIng
0eaIershIp Network InterIors
0eIIvery l WaItIng PerIod uaIIty FInIsh
AttItude of 0eaIer SaIes PersonneI AddItIonaI Features over hT
Status SymboI Top Speed
hatches to my PersonaIIty AvaIIabIIIty of AT
SaIes PromotIon Schemes WaItIng l 0eIIvery PerIod
ArtIcIes In Auto magazInes AvaIIabIIIty of Parts
ChoIce of FamIIy hembers Status SymboI
Peferences (FrIends l FInancIers l Dthers) SeIf 0rIvIng PIeasure
Test 0rIves 0aIIy l Weekend Usage
SaIes PromotIon Schemes
Test 0rIves
ArtIcIes In Auto magazInes
ChoIce of FamIIy hembers
Peferences (FrIends, FInancIers, Dthers.)



INFERENCE:

Maximum number of respondents (100%) is aware of the above cars available in
manual transmission.

CONCLUSION:

Need for awareness creation for the Automatic transmission cars through marketing
awareness tools.

Cor oI I a
Octavi a
Sonata
Accor d
Laur a
Camr y
Endeavour
Tuscon
Paj er o
CRV
Yes
No
0
10
20
30
40
50
60
70
80
90
100
PERCENTAGE
Cust omer awareness- ManuaI t ransmi ssi on
Yes
No

Customer Awareness - Automatic transmission cars ( In
%)
83.2
84.8
79.2
71.2
61.6
85.6
65.6
68.8
76
84.8
Corolla Octavia Sonata Accord Laura
Camry Endeavour Tuscon Pajero CRV

INFERENCE:
Maximum number of respondents (76%) is aware of the presence of automatic
transmission in Honda competitor brands.

CONCLUSION:

Honda accord shares 28 % non awareness. Because of which competitors gaining
the market share.


Features Iead to purchase of - hanuaI TransmIssIon Cars
3.5
3.6
3.7 3.7 3.7
3.8
4.0
4.2
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Features
R
a
t
i
n
g
(

1

L
e
s
s

-

5

H
i
g
h
I
y

I
m
p
o
r
t
a
n
t

Status symbol 0rIvIng Comfort TechnologIcally Advanced
PrIce LuxurIous |aIntenance
EngIne Power Fuel EffIcIency
INFERENCE:
Maximum number of respondents rate fuel efficiency and Engine power superiority
to be the reason in purchasing for manual transmission cars.
CONCLUSION:

Customer can afford to purchase automatic transmission car, but because of the
reason being the UN aware customer about the no difference in the engine power
and the fuel efficiency, lets the idea go off his mind and long time Indian customer
belief in manual transmission car being superior to automatic.


3.66 3.70 3.70
3.82
3.86
4.15
4.26
4.40
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
Rating ( 1 Iess - 5
HighIy Important)

Features Iead to purchase - AutomatIc TransmIssIon cars
Engine Power Maintenance Fuel Efficiency
Price Technologically Advanced Status symbol
Luxurious Driving Comfort

INFERENCE:
Maximum number of respondents (85%) rate driving comfort, it being luxurious
over M/T and gives status symbol.

CONCLUSION:

Indian customer is aware of the benefits of automatic, but feels it does not suit
Indian roads because of higher maintenance and low engine power & low fuel
efficiency.


INFERENCE:
Maximum number of respondents considers better engine power, fuel efficiency to
be the reason for their purchase - manual transmission.
CONCLUSION:
Honda has a better market for manual transmission cars than automatic, as the
competitor, because of its superior engine and better fuel efficiency.

CUSTOMER BEHAVIOUR - MANUAL
TRANSMISSION
Driving Comfort
12%

Technologically
Advanced
12%
Fuel Efficiency 15 %
15%
Engine Power
13%
Price
12%
Luxurious
12%
Status symbol
12%
Maintenance
12%
Driving Comfort Technologically Advanced
Fuel Efficiency Engine Power
Price Luxurious
Status symbol Maintenance


INFERENCE:
Maximum number of respondents considers automatic transmission cars to have
better driving comfort, luxurious and matching to their status symbol, for the
reason why they would like to or have purchased the automatic transmission car.

CONCLUSION:
Self driving pleasure and the status symbol are some of the customer attributes
which lead to the buying of automatic transmission cars.

CUSTOMER BEHAVIOUR - AUTOMATIC
TRANSMISSION
Driving
Comfort
13%

Technologically
Advanced
12%
Fuel Efficiency
12%
Engine Power
12%
Price
12%
Luxurious
14%
Status symbol
13%
Maintenance
12%
Driving Comfort Technologically Advanced
Fuel Efficiency Engine Power
Price Luxurious
Status symbol Maintenance

Buying a Sedan - ManuaI
Ford
13%
Mitsubishi
0%
Maruti Suzuki
10%
Honda
29%
Hyundai
5%
Chevrolet
15%
Toyota
13%
Skoda
15%

INFERENCE:
Maximum number of respondents (29 %) considers Honda manual transmission,
followed by Skoda and Chevrolet.
CONCLUSION:
Honda has a better market for manual transmission cars than automatic, as the
competitor Toyota has approached market for automatic transmission.


Buying a Sedan - Automatic
Toyota
33%
Chevrolet
17%
Skoda
11%
Hyundai
11%
Honda
20%
Maruti Suzuki
0%
Mitsubishi
3%
Ford
5%
INFERENCE:
Maximum number of respondents (33%) considers Toyota corolla or Camry to be
their first choice, followed by Honda & Chevrolet, automatic transmission car
purchase.
CONCLUSION:

Toyota automatic transmission cars are the competitor to Hondas, automatic
transmission car market, because of better customer approach towards the Indian
market.

Buying a SUV - ManuaI
Honda
33%
Ford
47%
Toyota
0%
Chevrolet
0%
Skoda
0% Hyundai
10%
Maruti Suzuki
0% Mitsubishi
10%
INFERENCE:
Maximum number of respondents (47%) considers purchasing ford Endeavour
followed by 33 % respondents considering Honda CRV manual purchase/Use.
CONCLUSION:

Honda CRV has a tough competition from ford Endeavour, and it also reflects
Unawareness/Dislike about the Honda CRV A/T cars.


Buying a SUV - Automatic
Maruti Suzuki
1%
Hyundai
24%
Ford
23%
Mitsubishi
20%
Honda
22%
Toyota
9%
Chevrolet
1%
Skoda
0%

INFERENCE:
Maximum number of respondents (24% & 23 %) Hyundai Tuscon & Ford Endeavour
respectively to have a better market for the SUV automatic transmission followed
by Honda which shares 22% market share.

CONCLUSION:

Honda CRV has a tough competition with its rival Hyundai & ford, needs to go for a
better marketing approach to grab the market share.


Best Feature Attribute
Price
12%
Maintenance
Cost
15%
Driving Comfort
22%
Choice of
Family Members
17%
Engine Power
7%
Brand Name
7%
Fuel Economy
20%

INFERENCE:
Maximum number of respondents considers driving comfort, Fuel economy, choice
of family members & the transmission car technology which needs lower
maintenance to be the choice for their purchase.

CONCLUSION:

Focus on the above top four factors to increase sales of A/T cars.



INFERENCE:
According to dealers driving comfort, additional features over M/T, test drives,
availability of parts is the most important factors.
CONCLUSION: Serviceability and low fuel economy sets back the purchase of
automatic transmission cars over manual transmission.
AUTOMATIC TRANSMISSION OVER MANUAL TRANSMISSION -
FEATURE ATTRIBUTE DEALERS VIEW ( SampIe size 4)
0
2
4
6
8
10
12
14
16
18
20
B
r
a
n
d

N
a
m
e
D
r
i
v
i
n
g
C
o
m
f
o
r
t
T
e
c
h
n
o
l
o
g
y
E
n
g
i
n
e
P
o
w
e
r
D
e
s
i
g
n

&
E
n
g
i
n
e
e
r
i
n
g
S
a
f
e
t
y
F
e
a
t
u
r
e
s
F
u
e
l
E
c
o
n
o
m
y
M
a
i
n
t
e
n
a
n
c
e
C
o
s
t
A
v
a
i
l
a
b
i
l
i
t
y
o
f

P
a
r
t
s
S
t
a
t
u
s
S
y
m
b
o
l
S
e
l
f

D
r
i
v
i
n
g
P
l
e
a
s
u
r
e
T
e
s
t

D
r
i
v
e
s
C
h
o
i
c
e

o
f
F
a
m
i
l
y
M
e
m
b
e
r
s
Factors
T
o
t
a
I

R
a
t
i
n
g
0
5
10
15
20
25
automatic Manual


INFERENCE:
According to dealers driving comfort, additional features over M/T, test drives,
availability of parts is the most important factors.
CONCLUSION:

Serviceability and low fuel economy sets back the purchase of automatic
transmission cars.

AUTDhATIC CAP PUPCHASE - UYINC EHAVIDUP 0EALEPS VIEW - FACTDP WISE ( SAhPLE SIZE 4)
AvaIlabIlIty of Parts
9
8rand Name
8
AddItIonal Features over |T
8
|aIntenance Cost
8
Fuel Economy
7
Safety Features
8
Feferences (FrIends, FInancIers,
Dthers.)
7
ChoIce of FamIly |embers
6
EngIne Power
7
0rIvIng Comfort
8
Status Symbol
8
Self 0rIvIng Pleasure
8
Test 0rIves
8


INFERENCE:
Maximum number of dealers considers better fuel economy & lower maintenance
cost incase of manual transmission car to be the reason for their car purchase.
CONCLUSION:

Indian customer pre mindset and age old belief makes them stick to manual
transmission.

HDN0A CAP 0EALEPS - hAUAL TPANShISSIDN CAP PUPCHASE - CUSTDhEP UYINC
EHAVIDUP ( SAhPLE SIZE 4 )
0
1
2
3
4
5
6
8
r
a
n
d

N
a
m
e
0
r
I
v
I
n
g

C
o
m
f
o
r
t
E
n
g
I
n
e

P
o
w
e
r
L
o
w

N
H

(
N
o
I
s
e
7
I
b
r
a
t
I
o
n
H
a
r
s
h
n
e
s
s
)
S
a
f
e
t
y

F
e
a
t
u
r
e
s
F
u
e
l

E
c
o
n
o
m
y
S
t
y
l
I
n
g
S
e
l
f

0
r
I
v
I
n
g

P
l
e
a
s
u
r
e
C
h
o
I
c
e

o
f

F
a
m
I
l
y

|
e
m
b
e
r
s
0

L
E
S
S

-

5

-

H
I
C
H

I
h
P
D
P
T
A
N
C
E
PPIhE HDN0A CAZIAA0 SDUTHEN0 HDN0A A0APPUP
PINC PDA0 HDN0A PIPACAPHI PINC PDA0 HDN0A hDTINACAP


INFERENCE:
In Honda City automatic transmission cars there is on an average 6 - 8 %
Enquiries and around 9 % sales of automatic transmission cars over the Honda city
manual transmission cars.

CONCLUSION:
Indian customer is not aware of the availability of automatic transmission car in the
C segment, High middle class families believe in the manual being more power and
fuel efficient, suiting their budget for car maintenance.

5
7
10
4
5
6
7
0
2
4
6
8
10
PERCENTAGE
PF |E HDN0A SDUTHEN0
HDN0A
F F HDN0A
PEEFACAFH
F F HDN0A
|DT NACAF
HDN0A CAP 0EALEPS - PEPCENTACE ENUIPY SALES -
AUTDhATIC TPANShISSIDN CAP - HDN0A CITY CVT
( SAhPLE SIZE 4 )
% of AT Enquiry out of total Enquiry % of AT cars sold out of Total cars sold

INFERENCE:
Honda accord percentage sales based on enquiries are approximately same
averaging to 45 % enquiries & 47 % sales respectively of automatic transmission
cars.
CONCLUSION:

Customer awareness is higher, with potential buyers in this segment, were driving
comfort and status symbol plays a major role in purchase.
50
50
35
55
40 40
55
45
0
10
20
J0
40
50
60
PERCENTAGE
PF|E
HDN0A
SDUTHEN0
HDN0A
F F HDN0A
PEEFACAFH
F F HDN0A
|DTNACAF
HONDA CAR DEALERS - PERCENTAGE ENQUIRY & SALES - AUTOMATIC TRANSMISSION
CARS , HONDA ACCORD ( SAMPLE SIZE 4 )
of AT EnquIry out of total EnquIry
of AT cars sold out of Total cars sold

INFERENCE:
Honda CRV percentage sales based on enquiries are approximately same averaging
to 43 % enquiries & 45 % sales respectively of automatic transmission cars.
CONCLUSION:

Indian market is not well accustomed to SUV`s, so awareness creation need, with
focus on niche customers to increase sales.

50
50
40 40 40 40
45
40
0
5
10
15
20
25
J0
J5
40
45
50
PEFCENTACE
PF |E HDN0A SDUTHEN0 HDN0A F F HDN0A
PEEFACAFH
F F HDN0A
|DT NACAF
HDN0A CAP 0EALEPS - PEPCENTACE ENUIPY SALES -
AUTDhATIC TPANShISSIDN CAPS - HDN0A CPV ( SAhPLE SIZE 4 )
X of AT EnquIry out of totaI EnquIry
X of AT cars soId out of TotaI cars soId




STRENGHTS:

The Honda Brand Name.
Reliable Engine with High Power.
World Class Design.
Awarded by JD Power, Asia Pacific for Customer Satisfaction.
Fuel efficient engine - core competence.
Past performance of Honda success with Hero group.
Talented work force.
Customer focused approach.
High Levels of indigenization (82%).

WEAKNESS:

Dont follow the orthodox Indian marketing strategy.
Less awareness creation tools.
Less number of dealers (39 HEAD)
Weak vendor base.
Less number of service stations.
Small width of product line.
Less Economies of scale and low on Learning curve.


OPPORTUNITY:
Need to focus on:-

High growth of Midsize segment with rising income levels.
Govt. giving impetus to foreign investment by allowing 100% ownership to
MNCs
Customers have more choice.
Parts from Vendors to be exported to South East Asian countries.
Reduction in tyre prices resulting from a reduction in excise duty from 30%
to 16% gives benefit to car manufactures.
People becoming aware of the technology.
Gaining competitive advantage by maintaining high level of operational
efficiency.

THREATS:

New entrants like fiesta from Ford, Lancer Cedia from Mitsubishi.
Existing players like Maruti Udyog Limited or General Motors can compete on
Cost.
Adaptability to rural roads
More number of service station of competitors.
Export obligation to import SKD kit
Indigenization level upto 82% Quality of Local parts.
Rise of Import duty.
Elimination of Quantitative restrictions
Launching of CNG model by competitors.
24 new diesel engine cars soon to be available in India.
Toyota and Hyundai using better marketing awareness tools.

Indian age customer belief - Manual transmission better in terms of power,
fuel efficiency and on Indian roads.

LIMITATIONS:

Some customers do not entertain researcher at all.
The study depends upon samples.
The findings of the study are subjected to time and cost consideration.
During the visits to various locations, due to busy schedules of these persons
repeated visits were required to get their confirmations as a result of which
too much time was wasted.
Also many people asked for my visiting card to verify my authenticity, which
I was not able to produce.
Probability of certain factors which could not be highlighted like (price, status
symbol etc) because of customer ego and profile.


CONCLUSIONS

There exist two main technologies in case of the car transmission Manual and
automatic. Where automatic transmission cars have an edge over the manual
transmission car, but still could not make it a very big success on the Indian roads
and could not win the heart of Indian customers.

The most important feature of purchasing a car by any customer is the fuel
economy, Price and the cost on the maintenance of the car .The survey has
reinforced this fact with 80% of the respondents ranking it as the most
important factor in market coverage.

As long as the dealers are satisfactorily servicing their markets, by creating
awareness about the new age technology in automatic transmission cars, the
market is going to reciprocate to those brands faster than any other because
of wider choice and multiple brands offering same technology with various
other customer benefits.

Petrol cars are sold more than diesel cars, as it requires lesser maintenance
and better pick up, where as diesel engine cars are sold more in the SUV and
B Segment, because of its lesser mileage and commercialization respectively,
so the diesel engine cars sold in B Segment help cutting down the fuel cost
and maximization of profit.

Various dealers, offer significant offers/benefits to its prospective / potential
buyers so as to lure the customer, and increase sales.


Family members choice, Better engine power, Driving comfort, better fuel
economy engine, serviceability and less maintenance cost are the certain
most important factors which lead to customers buying of any car.

In Indian market manual transmission cars edge over the automatic
transmission car, cause of firstly, the age old perception, better pick up,
lower maintenance and higher on the mileage. Easy to use as customer is
acquainted because of extensive use over the period.

Indian customer belief is that automatic transmission car is not meant for
Indian roads and serviceability of it can be a problem, as generally people
get their cars serviced at open outlets rather than service stations because of
it being cheaper, and nearness to their residences.

Finally, there is 35 % market for Honda city, 59 % for Honda Accord and 52%
for Honda CRV automatic transmission cars in near future over Honda manual
transmission cars, as per the facts collected by surveying the customer and the
dealers, The need is in awareness creation about the automatic transmission
cars, that it is equally good as manual transmission cars on Indian roads, suiting
to customers pocket.



SUGGESTION:

Needs to check in detail the reason for not purchasing Honda Automatic
Transmission cars.
Introduce more product features that are not available in the local markets,
while selling focuses more on the quality aspect.
Identify the customers, who said no need / differentiating factor in
technology transmissions.
Special instruction to the consultants to convince these customers about
benefits of Automatic transmission cars over manual Transmission cars.
Consultants should explain the details of transmission technologies to all
customers.
Dealers need to improve the display of Honda automatic transmission car
benefits and functions.
To influence the customers that purchasing of automatic transmission cars is
of a little higher benefit and comfort to end use of customer.
To motivate & influence the customers that Honda automatic transmission
technology cars are superior to its competitors.
New launches, dealer margin should be high & making customer consider the
price of Honda automatic transmission against Honda manual transmission
cars & Honda competitors.




QUESTIONNAIRE - DEALER

Date : _______________

Name : ___________________________ Age : ___________

DeaIers Name & Address : _____________________________________________________

Designation : _____________________________

1. Automatic transmission Car market details?

2. Closest Competition to Honda Automatic transmission Cars?

Honda CVT Honda VTiL,V6 Honda CRV 2.4
_____________ _____________ _____________
_____________ _____________ _____________
_____________ _____________ _____________
_____________ _____________ _____________

3. Please figure out the three most important factors out of the above 27 factors:

i) _____________________________

ii) _____________________________

iii) _____________________________

4.Kindly rate the following factors, which affect the decision of customers / prospective buyers while buying an
Automatic Transmission Car and not buying a Manual Transmission Car, on a scale of 1 to 5 where 1 means 'Very
Low Importance / Affect' and 5 means 'Very High Importance / Affect':

Very Low Very High
mportance mportance
CARS
% of AT Enquiry out of
totaI Enquiry
% of AT cars soId out of
TotaI cars soId

Top 3 factors
out of 1-27
Honda City
Honda Accord
Honda CRV


1 2 3 4 5 1 2 3 4 5

Factors AT MT
1 Brand Name
2 Price Difference
3 Driving Comfort
4 Technology
5 Engine Power
6 Design & Engineering
7
Low N-V-H (Noise-Vibration-
Harshness)

8 Safety Features
9 Fuel Economy
10 Fuel Options (Diesel / Petrol)
11 Maintenance Cost
12 Styling
13 nteriors
14 Quality & Finish
15 Additional Features over MT
16 Top Speed
17 Availability of AT
18 Waiting / Delivery Period
19 Availability of Parts
20 Status Symbol
21 Self Driving Pleasure
22 Daily / Weekend Usage
23 Sales Promotion Schemes
24 Test Drives
25 Articles in Auto magazines
26 Choice of Family Members
27
References (Friends, Financiers,
Others.)


QUESTIONNAIRE - CUSTOMER

Date :
Name : __________________________ Age, Sex : __________________
Address : _______________________________________________________
Occupation : __________________________Designation: __________________
Monthly ncome : 20-40 k 40-60k 60k-Above
No. of Car/s owned : __________________________Segment of car/s own: _________
No. of FamiIy member/s : __________________________ModeI Make: __________________
Chauffeur / SeIf Driven : __________________________Driving Area: City / Highway
SeIf / Company Owned : __________________________ Frequency : DaiIy / Weekends
Avg. kms driven/mth: __________
Q1. Kindly tick the following models having Manual Transmission or / and Automatic Transmission:

ModeIs ManuaI Transmission Automatic Transmission
CoroIIa
Octavia
Sonata
Accord
Laura
Camry
Endeavour
Tuscon
Pajero
CRV

2. Kindly rate the foIIowing features on a scale of 1-5 in case of MT and AT, where 1 - Very Low and 5 - Very
High:
FEATURES AUTOMATIC TRANSMISSION MANUAL TRANSMISSION
i) Driving Comfort 1 2 3 4 5 1 2 3 4 5
ii) TechnoIogicaIIy
Advanced
1 2 3 4 5 1 2 3 4 5
iii) FueI Efficiency 1 2 3 4 5 1 2 3 4 5
iv) Engine Power 1 2 3 4 5 1 2 3 4 5
v) Price 1 2 3 4 5 1 2 3 4 5
vi) Luxurious 1 2 3 4 5 1 2 3 4 5
vii) Status symboI 1 2 3 4 5 1 2 3 4 5
Viii) Maintenance 1 2 3 4 5 1 2 3 4 5


3. Kindly rate the following factors, which affect / have affected your decision while buying a Manual ____ or an
Automatic ____ Transmission Car, on a scale of 1 to 5 where 1 means 'Very Low Importance / Affect' and 5 means
'Very High Importance / Affect'.

Very Low Very High
1 2 3 4 5

1. Brand Name

2. Price

3. Driving Comfort

4. Technology

5. Engine Power

6. Design & Engineering

7. Safety Features

8. Availability of AT Transmission

9. Availability of fuel options (Diesel / Petrol)

10. Fuel Economy

11. Maintenance Cost

12. Styling

1 2 3 4 5

13. Dealership Network

14. Waiting / Delivery period

15.Attitude of Dealer Sales Personnel

16. Status Symbol

17. Matches to my Personality
(Ruggedness, sophistication, elegant . . .)

18. Sales Promotion Schemes



Buying Decision InfIuencers

19. Articles in Auto magazines

20. Choice of Family Members (Father / Mother/
Wife / Children / Siblings . . .)

21. References (Friends / Financiers / Others.)

22. Test Drives

(i) if you have to buy a new car in the near future, which brand and variant would you go for?
Brands Sedan MT AT SUV MT AT
Honda Accord CRV
Toyota Corolla / Camry Prado
ChevroIet Optra Forester
Skoda Laura/ Superb -
Hyundai Elantra / Embera

Terracan / Tucson

Ford Mondeo Endeavour
Mitsubishi Lancer Cedia Pajero
Maruti Suzuki Baleno Grand Vitara

(ii) Please figure out the three most important factors affecting purchase decision out of the following groups (Factors
from 1 17, 18 22):
i) _____________________________
ii) _____________________________
iii) _____________________________

25. Are you aware of the new launches in the near future? Please mention
________________________________________

------------Thank you----------





DEALERS - NCR Region

SL.NO NAME OF DEALER LOCATION
1 PRIME HONDA Ghaziabad
2 SOUTH END HONDA Badarpur
3 RING ROAD HONDA Peeragarhi
4 RING ROAD HONDA Moti Nagar

CUSTOMERS - NCR Region

SL.NO NAME OF CUSTOMER CAR OWNED
1
R.M. BAGAI
Honda Accord
2
VAIBHAV JAIN
Honda City
3
RAMGOPAL
Honda City
4
COL RAJESH DUTTA
Honda City
5
MR. RANJIT KUMAR
Toyota Qualis
6
ANURAG SINGH
Honda City
7
PELICAN & COMPANY
Toyota Innova
8
SATIA TECH. PVT LTD
Honda City
9
ABHISHEK SRIVASTVA
Maruti Baleno
10
LAKSHMI CEMENTS
Ford Ikon
11
MUNSHI RAM
Maruti 800
12
NARAIN SINGH RANA
Honda Accord

13
HARYANA RASIAN UDYOG PVT. LTD
Maruti Esteem
14
UNIBROS
Toyota Corolla
15
ANKIT RIHAL
Maruti Wagon R
16 UNITECH LTD Honda City
17 SHARANT CHANDRA NANDA Ford Mondeo
18 COL. S. LAKHAN PAL Honda City
19 RAVINDER GUPTA Honda City
20 RAJ KHANNA Lancer
21 SALIL CHATURVEDI Honda Accord
22 LELAWATI & SUNDER SINGH Honda Accord
23 SIDHARTH Hyundai Elantra
24 NAVEEN Land cruiser
25 DYNAMIC UNIVERSAL P. LTD Hyundai Embera
26 PUSHPINDER KAUR Honda City
27 SACHIN Ford Ikon
28 SUMNA GOEL Honda Accord
29 LESS: ORIX FINANCE PVT LTD Tata Indigo
30 MR. RANJEEV C DUBEY Hyundai Elantra
31 ATREYEE Honda City
32 JASPINDER NARULA Honda City
33 BRIG. S.B. DUTTA Honda City
34 UNITECH LTD Honda Accord
35 QUANTAS AIRWAYS LTD Maruti Esteem
36 AROON SAXSENA Hyundai Accent
37 PRICE WATER HOUSE(PARITOSH) Honda Accord

38 OARIS INDIA EXPORTS Honda City
39 CAPT NEERAJ BTALA Honda City
40 SATPAL VIJ Honda City
41 AMIT LUNAWAT Maruti Baleno
42 CAPT SUNIL VASHIST Toyota Innova
43 NARASMHAN Toyota Corolla
44 STALWART CREATION S Maruti Esteem
45 ANUJ MITTAL Honda Accord
46 K.K. AHUJA Honda City
47 CHETNA POLYTEX P. LTD Hyundai Accent
48 MAX NEW YORK LIFE INSURANCE COM Honda Accord
49 DEEPAK RAJPAL Honda City
50 MR. SATHYA PRASAD SHETTY Toyota Corolla
51 RANJAN Ford Fiesta
52 SANJEEV BHUPAL Maruti Esteem
53 HEMKUNT PRESS Hyundai Santro
54 SHAHI DYEING PVT LTD Honda Accord
55 PUSHPA BAGLA Toyota Corolla
56 LESSEE NEW QUEST CORPORATION PVT. Honda City
57 BHART ENTERPRISES Tata Indigo sx
58 SUMITA MOHLA Honda Accord
59 UNIVERSAL IMEX Maruti Baleno
60 GUPTA SONS JEWELLERS Merc C class
61 VIMOKA CONT. & ENGG. PVT LTD Honda City
62 PEARL GLOBAL LTD Honda City

63 KARAN SINGH DHILLON Honda City
64 NEW AGE ENTER. P. LT D Honda City
65 ISHWAR SINGH Honda City
66 LEESEE SIEMANS PUBLIC Toyota Camry
67 YUDHVIR SINGH Honda City
68 RAKESH KHANNA Honda City
69 PARVESH YADAV Honda City
70 PREETI CHOUDHRY Toyota Qualis
71 SETHI HOSPITAL P LTD Honda City
72 M/S IMAGINE SYSTEMS Toyota Innova
73 VIJAY MALIK Honda City
74 RUPIN JAYAL Maruti Baleno
75 M/S MULTITECH COMPUTER PVT. LTD. Ford Ikon
76 H.B.VELVETS PVT. LIMITED Honda CRV
77 M/S U.K. ENTERPRISES Honda City
78 RACH INTERIORS & DESIGNER Honda City
79 VIKAS DHUPER Hyundai Viva
80 FINESSE INCORPORATE Honda City
81 M/S SANJEEV CONSTRUCTIONS Honda City
82 Mr. ANUP SACHDEVA Honda Accord
83 DINESH JAIN Toyota corolla
84 HARPAL SINGH Honda City
85 Q H TALBROS LTD Hyundai Tuscon
86 VIJAY K. MOKHUA Honda City
87 CAPT NAVNEET SINGH Honda Accord

88 DHARAMBER KHATTER Honda City
89 AJITESH BHALLA Honda city
90 B.S.IMPEX Honda City
91 ADANI EXPORTS Honda City
92 MOBEYSHA TRAVELS Toyota Corolla
93 FLEX INDUSTRIES Honda CRV
94 V.K. ENTERPRISES Honda City
95 AJIT ARORA Maruti 800
96 ARTECH INTERIOR Honda Accord
97 ADANI EXPORTS Maruti Esteem
98 DAYANAND AGGARWAL Toyota Corolla
99 RAJ KUMAR PURI Maruti Wagon R
100 KAVINEET TIWANA Honda City
101 RAWAT INDUTRIES Ford Mondeo
102 JAINSON INTERNATIONAL Honda City
103 PAWANJOT KAUR Honda City
104 RADDOP ENTERPRISES PVT. LTD. Lancer
105 KAMAL BIR SINGH Honda City
106 MUKESH KUMAR SINGHAL Hyundai Accent
107 SHAKTI ENGG. P. LTD Hyundai Accent
108 KISHAN SINGH Honda City
109 M/S LUFTHANSA GERMAN AIRLINES Hyundai Accent
110 STELLA INDUSTRIES PVT. LTD. Toyota Corolla
111 TARA CHAND SALUJA Honda City
112 RAINBOW TRAVELS INDIA P LTD Honda City

113 WHEATONS DESIGNS PVT LTD Toyota Camry
114 ANIL BHARDWAJ Tata Indigo
115 RAKESH KANT TULI Honda City
116 M/S MAX FLOW PUMPS INDIA LTD. Honda Accord
117 M/S TRUST TELECOM TECHNOLOGIES (P) LTD. Ford Endeavour
118 LESSEE NEW QUEST COP. PVT. LTD Honda CRV
119 MR. HIRDEY RAM Ford Fiesta
120 G.E. CAPITAL INTERNATIONAL SERVICES Honda City
121 M/S SHARMILEE FURNISHING PVT. LTD. Toyota Innova
122 SANDEEP CHATTOO Maruti Swift
123 NIS SPARTA LTD. Honda City
124 INDERJEET SINGH Hyundai Accent
125 NEHA JAIN Toyota Corolla



BIBLIOGRAPHY

Sales Management (Faculty SIMS): Prof.Govind Hemrajani.
Research Methodology (Faculty SIMS): Prof. A.B. Rao.
Philip Kotler: Marketing Management.
Sales & Marketing Management (Magazine).
Research Methodology: C.R. Kothari.
Market Research: G.C. Beri.
Company website : www.hondacarsindia.com

Comparing Automatic vs Manual Car Sales

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COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

MANUAL TRANSMISSION CARS IN C, D AND SUV SEGMENT

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

Model - Baleno Vxi

Model - Sonata Embera ( Automatic 2.4 L )

Model - Rider ( TDI 1.9 Petrol / Diesel )

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

1. Honda cars should approach Indian customer by understanding his needs.

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

COMPARATIVE MARKET ANALYSIS OF AUTOMATIC TRANSMISSION AND

(Source -Prof. A.B Rao Faculty- Research methodology)

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