niloy rajbangshi 04vwcm6054 (2)

8/12/2019 Niloy Rajbangshi 04VWCM6054 (2)

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DISSERTATION

Title of Project:

Market Analysis of the Luury car Se!"ent#

This Dissertation report is submitted in partial fulfillment of therequirements of the MBA Program of Bangalore University.

Su$"itte%&y

NILO' RA(&AN)S*IRe!+ No+ ,-./0M1,2-

3n%er the !ui%ance an% su44ort ofProf+ 5rishna 5 *a6al%ar

7aculty8 A&A

ALLIAN0E &3SINESS A0ADEM'&AN)ALORE 9 21, ,1

&atch: ;,,-


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DE0LARATION

I Niloy a!bangshi" studying in Allian#e Business A#ademy"

Bangalore do hereby de#lare that this Pro!e#t eport relating to

#Market Analysis of the Luury car Se!"ent# is the original

resear#h $or% #arried out by me" as per the requirements of the MBA

Program of Bangalore University &Bat#h of '(() * '((+,. My guide

for the training has been Prof+ 5rishna 5 *a6al%ar

I further de#lare that this Dissertation report has not been submittedearlier to any other University or Institute for the a$ard of any Degree

or Diploma.

Date-Pla#e- Bangalore

Niloy a!bangshi eg. No

()/01M+(2)


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A05NO/LED)EMENT

I e3press my gratitude to Prof+ Su%hir ) An!ur&President" ABA,

and Dr+&+.+5rishna"urthy &Dire#tor" ABA," for providing me the

mu#h ne#essary en#ouragement to ta%e up this pro!e#t.

I than% Prof+RajsekharProgram Manager MBA &II year, for giving me

this opportunity to ta%e up this mar%et resear#h study. 4e $as also a

sour#e of inspiration to me in my 5ndeavour.

I am most than%ful to my pro!e#t guide Prof+ 5rishna 5 *a6al%ar"

6a#ulty" ABA" $ithout $hose help and guidan#e this pro!e#t $ould not

have been possible.

Pla#e-Date-

Niloy Raj$an!shi


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CONTENTS

Chapter No. Title Page No.

Executive Summary 1-2

1. INTRODUCTION1.1 Introduction to the Study 3-71.2 Background of the Study 8-10

2. DESIGN OF THE STUDY2.1 Statement of the ro!"em 112.2 Sco#e of the Study 112.3 $eed for the Study 112.% &!'ective( of the Study 12

2.) Survey*+evie, of iterature 132. +e(earch /e(ign 1%2.7 Sam#"e /e(ign 1)

2.7.1 /efinition of the o#u"ation 1)2.7.2 Sam#"e Sie 12.7.3 Sam#"e echniue ado#ted 1

2.8 Source( of /ata 17 2.8.1 Secondary /ata 17 2.8.2 rimary /ata 172. 4ie"d 5ork 172.10 erationa" /efinition( of the Study 17-20

2.11 imitation( of the (tudy 21

3. PROFILE OF THE RESPONDENTS3.1 rofi"e of the Indu(try 22-33.2 rofi"e of the Sam#"e 6nit %0

. !N!LYSIS !ND INTERPRET!TION%.1 Introduction to na"y(i( %1%.2 /ata na"y(i( oo"( 6(ed %1%.3 /ata and ra#h( %2-%

". SU##!RY OF FINDINGS$ SUGGESTIONS CONCLUSION).1 4inding( )).2 Sugge(tion( )).3 9onc"u(ion 7

!%%e&'re

. :ue(tionnaire ;i


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E(ECUTI)E SU##!RY

In the #a(t fe, year( the Indian market ha( changed ra#id"y. "o!a"iation ha( changed the

Indian market (cenario . he Indian con(umer unti" no, ,ho had a "imited choice ha( no,

!een #re(ented ,ith a ,ide range of ua"ity #roduct(. In the ongoing trend the (ection thatadvanced ,ith (ur#ri(ing re(u"t( ,a( the automo!i"e (ector.

he automotive indu(try i( one of the "arge(t indu(trie( ,or"d,ide and in India a( ,e"". he

automotive (ector i( a vita" (ector for any deve"o#ed economy. It drive( u#(tream indu(trie(

"ike (tee"= iron= a"uminum= ru!!er= #"a(tic(= g"a(( and e"ectronic(= and do,n(tream indu(trie(

"ike adverti(ing and marketing= tran(#ort and in(urance. 6(ua""y= ,hat i( good for the

automotive (ector i( !eneficia" for the economy a( ,e"".

4oreign com#anie( have come in ,ith !ri""iant #roduct( for the Indian market(. 5hen eroed

do,n the u"timate #rogre(( it i( (een in the "uxury car (egment. hi( (egment ,a( virtua""y a

non exi(tent (egment. 9ar( "ike >aruti Ba"eno= 4ord Ikon= 4ord 4ie(ta= 4ord u(can=

?yundai ccent= 9hevro"et tra= oyota 9oro""a= ata Indigo= Skoda= >it(u!i(hi ancer=

?onda 9ity= $e, >ahindra Scor#io and udi. 5hen vie,ed at the #o(ition a"mo(t a"" the

com#anie( are giving the cu(tomer more or "e(( faci"itie( at com#etitive #rice(. "" the

#roduct( are a"mo(t (imi"ar technica""y and it i( hard to differentiate their attri!ute(. In (uch a

market environment the(e com#anie( have a#t"y ado#ted marketing (trategie( a( their too" to

carve in a hand(ome market (hare. Each com#any ha( taken u# #articu"ar a(#ect and ha(

ex#"oited it to convert the con(umer into a !uyer. /e(#ite a head (tart= the automotive

indu(try in India ha( not uite match u# to the #erformance of it( counter#art( in other #art(

of the ,or"d. he a""-#erva(ive regu"atory atmo(#here #revai"ing ti"" recent"y ha( !een one of

the #rimary rea(on( for thi( (ituation. he variou( "ayer( of ct( (o "ong (he"tered the

indu(try from interna" com#etition and re"ated it( deve"o#ment. >oreover= the indu(try ,a(

con(idered "o,-#riority a( car( ,ere thought of a( @unafforda!"e "uxuryA for the ma((e(.

5ith the (tudy ,e can get (ome (ugge(tion( from cu(tomer for (ervice im#rovement( interm( of ua"ity and ,hat he*(he i( ex#ecting from the "uxury car( avai"a!"e and ,hichare yet to !e introduced and to under(tand ,hat ne, feature( are !eing #rovided in the"uxury car( (egment in the automo!i"e indu(try. In the (tudy ,e can find out the "eve"( ofcu(tomer (ati(faction .5e can a"(o identify the cau(e( for cu(tomer di((ati(faction "ike"ook(= (eating= acce((orie(= interior(= (#are #art( and engine noi(e. he u(er( of "uxurycar( are geogra#hica""y ,ide (#read and hence contacting them i( time con(uming.


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he (tudy trie( to focu( on the (egment of the #eo#"e ,ho have "uxury car( or are ,i""ing to

!uy one.Even the (tudy indicate( the change in the con(umer !ehavior of the Indian

democracy.

he (am#"e (ie of cu(tomer i( "imited to 100 !ecau(e of time and co(t factor.

he information co""ected may not !e (ufficient and re"ia!"e in term( of tota" market

condition( in India a( Banga"ore re#re(ent( on"y a (ma"" #ortion of the tota" nationa" market.


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INTRODUCTION

Introduction to the Study

In the recent year( the Indian market ha( changed ra#id"y. "o!a"iation ha( (erved a( a !oon

at "ea(t (o to the con(umer(. he Indian con(umer unti" no, had a "imited choice ha( !een

#re(ented ,ith a ,ide range of ua"ity #roduct(. In the ongoing trend the (ection that

advanced ,ith (ur#ri(ing re(u"t( ,a( the automo!i"e (ector. Cehic"e( #eo#"e (a, on the

te"evi(ion (creen are no, f"ying on the Indian road(. he automo!i"e indu(try ,a( a"ready

giving one of the highe(t turnover(. he cu(tomer no, had ,ide variety of car( to choo(e

from. "" of the Indian auto giant( 'oined the trend. 4oreign com#anie( came in ,ith !ri""iant

#roduct( for the Indian market(. 5hen eroed do,n the u"timate #rogre(( ,a( (een in the

"uxury car (egment. hi( (egment ,a( virtua""y a non exi(tent (egment. 9ar( "ike >aruti

Ba"eno= 4ord Ikon= 4ord 4ie(ta= ?yundai ccent= 4ord u(can= oyota 9oro""a= ata Safari=

Skoda= >it(u!i(hi ancer= ?onda 9ity= 9hevro"et tra and $e, >ahindra Scor#io. he

fir(t 'oint venture in car( ,a( that of >aruti 6dyog "imited and Suuki >otor( imited Inc.=

Da#an. hey en'oyed a mono#o"y around 10-12 year(. he actua" revo"ution (tarted ,ith the

"aunch of >aruti-1000. eo#"e (udden"y !ecame con(ciou( for comfort= #erformance and

"uxury. he(e car( #rovided a certain c"a(( and #ride to the o,ner. he con(umer reuired

more. ?ence= the arriva" of a ,ho"e "ot of foreign !red car(. In thi( grou# came the 4ord

Ikon= 4ord 4ie(ta= ?yundai ccent= 4ord u(can= oyota 9oro""a= ata Safari= Skoda=

>it(u!i(hi ancer= ?onda 9ity= 9hevro"et tra and $e, >ahindra Scor#io.

5e can c"a((ify the(e car( a( #er their marketing (tanding

1* Fir+t tr'e l'&'r, -ar.

>any time( more comforta!"e than the exi(ting car(.

Smooth and u(er friend"y.

"ea(ing "ook(*,e"" de(igned.

2* #ar'ti ale%o

6#graded the >aruti E(teem.

>ore #o,erfu" engine.


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>ore fue" efficiency.

+etained it( ,e"" acce#ta!"e "ook.

3* Ne/ #ahi%0ra S-orpio ate(t de(ign.

Be(t #erformer.

reat Interior(

ood ick 6#

* For0 E+-ort

4ir(t #remium "uxury car.

Backing of a re#uted make.

Exce""ent fit and fini(h.

4ir(t car to give die(e" o#tion.

"* For0 Fie+ta

9om#act and (#aciou(.

6nue(tiona!"e ua"ity and re"ia!i"ity.

Smooth engine and ride ua"ity.

$e, attractive de(ign

* P!L Pe'geot 3

Be(t die(e" engine in the market.

5or(t "ook( and interior(.

4* Ho%0a Cit,

5or"d c"a(( "ook(.

6"timate #erformance.

Exce""ent fini(h.

5* #it+'6i+hi La%-er

>o(t #o,erfu" die(e".

Executive c"a(( car.


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?igh #remium va"ue.

reat "ook( and fini(h.

* Che7rolet Optra

9om#act and (#aciou(. Smooth re(#on(ive engine.

/e(igned a( #er the "ate(t trend(.

fforda!"e

1* For0 I8o%

4ord re"ia!i"ity at a !udget #rice.

ate(t techno"ogy u(ed for im#roving fue" efficiency.

4aci"itie( re"ate to higher #riced car(.

11* S8o0a

9or#orate gri"".

>u(cu"ar ,hee".

"ea(ing a##earance.

Six engine o#tion(.

12* H,'%0ai !--e%t

""oy ,hee"(.

+ear (#oi"er.

+emote contro" mu(ic (y(tem.

Engine immo!i"ier.

13* To,ota Corolla ?igh (itting #o(ition.

Stocky a##earance.

4ive-(#eed.

6"tra fine mi(t fue" in'ection (y(tem.


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1* Tata I%0igo

ough "ook(.;>acho ##ea"ahindra Scor#io i( catching u# very ra#id"y.

he >arket

"" the car( that have !een "aunched in the "uxury (egment are more or "e(( (ame ,hen

con(idered on genera" !a(i(. Some car( #rovide more faci"ity ,hi"e other cover( u# !y !rand

image. he market i( #erfect"y com#etitive. $o com#any can !e (aid to have mono#o"y. he

E(teem ,a( #ro'ected a( the u"timate offering in Indian "uxury car(. It #rovided faci"itie( that

,ere never !efore offered !y any other car. he(e feature( ,ere a( !e"o,

S"eek aerodynamic de(ign.

o,er (teering.

o,er ,indo,(.

udio (y(tem(.

ir conditioner.

4ive (#eed tran(mi((ion ,ith five )th(#eed overdrive(.

Interna""y o#erated dickey and a #etro" fi"ter ca#.

fter thi( a"mo(t at the (ame time came to ground !reaking car( he 4ord E(cort from

>4I and e" (tra from ?>. he(e car( took "uxury a (te# ahead. he(e ,ere #remium


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car(. Both manufacturer( had a good !rand image to !ack them u#. he 4ord E(cort ,a( a

#roduct !et,een 4ord >otor 9om#any and >ahindra >ahindra. 4ord >otor 9o. had a

"ong he"d tradition of marketing ua"ity #roduct(. hey a"(o had the ex#erti(e to (tudy the

Indian market. 4ordF( immediate ad cam#aign ,a( #ointed on the (heer 'oy of o,ning a 4ord

"uxury car. he car ,a( aimed at a #remium c"a(( of !uyer( ,ho did not "ook u# for fue"

efficiency or to# c"a(( #erformance(. E"egance= comfort= re"ia!i"ity= "uxury= and mo(t of a""

!rand name( ,a( ,hat they cared for. he 4ord E(cort #rovided a"" thi( and more.

>ean,hi"e ?indu(tan >otor( tied u# ,ith genera" >otor( and "aunched the ,or"d

conuering e" (tra. he e" (tra ,a( ,e"" de(igned. It ,a( (#aciou(G it ,a( a erman

#roduct and ref"ect( the #reci(ion of the erman(. ?> rea"iing the car( #"u( #oint ad

cam#aign( ,ith a tota""y ne, conce#t in the Indian market /riving #"ea(ure. he conce#t

caught u# and the (tra (tarted #ecking u#. SIE ?onda took a tota""y different a##roach.

hey "aunched t,o variant( of the ?onda 9ity and !oth of them ,ere #etro" engine car(. he

car had the !e(t (et u# in the indu(try. he engine ,a( uick and re(#on(ive. he "ook( ,ere

good and the #rice ,a( rather decent. hi( car ,a( u"timate in #erformance. 5ith ?ondaF(

name to !ack u# the(e car( ,ent ,e"" and #enetrated the target market. ?onda ,a( "ooking

for a c"a(( that did not go in for mere fri""( !ut ,ere a"(o techno-con(ciou( and (erge for

#erformance. /ie(e" ,a( a!out to !e a !ig time hit !ut unfortunate"y for >4I= ?> a""ied

,ith >it(u!i(hi of Da#an to "aunch the ,onderfu" ancer. he ancer ,a( "aunched in #etro"

and die(e" o#tion(. It ha( a #o,erfu" 2000cc engine. ?> offered a !etter #ackage in the

ancer. It !eat( the E(cort( in "ook(= (#ace= #erformance and economy. It gave out#ut( never

!efore though offered in a die(e". he ancer i( co(t"ier !ut #eo#"e are getting ,hat they

,ant in a car. he market i( getting even more cro,ded ,ith car( (uch a( 4ord Ikon=

?yundai ccent= oyota 9oro""a= ata Safari= Skoda and 9hevro"et tra = >ahindra

Scor#io. 9hance( are that more com#anie( may enter the Indian market a give cu(tomer a

choice "ike never !efore.


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!C9GROUND OF THE STUDY

he automotive indu(try i( one of the "arge(t indu(trie( ,or"d,ide and in India a( ,e"". he

automotive (ector i( a vita" (ector for any deve"o#ed economy. It drive( u#(tream indu(trie(

"ike (tee"= iron= a"uminum= ru!!er= #"a(tic(= g"a(( and e"ectronic(= and do,n(tream indu(trie(

"ike adverti(ing and marketing= tran(#ort and in(urance. 6(ua""y= ,hat i( good for the

automotive (ector i( !eneficia" for the economy a( ,e"".

he automotive indu(try can !e divided into five (ector(

1. a((enger 9ar(.

2. >u"ti-6ti"ity Cehic"e( ;>6C(edium and ?eavy

9ommercia" Cehic"e( ;>9?C(oreover= the indu(try ,a( con(idered "o,-#riority a( car( ,ere thought of a(

@unafforda!"e "uxuryA for the ma((e(.

In the #o(t- "i!era"iation #eriod= the automotive indu(try= e(#ecia""y the #a((enger car

(ector= (a, a !oom. he !uoyancy of the (ector ,a( derived #rimari"y from economic

vi!rancy= change( in government #o"icie(= increa(e in #urcha(ing #o,er ;e(#ecia""y of the

u##er midd"e c"a((it(u!i(hi= 4ord= enera" >otor(= and /aim"er9hry("er


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?o,ever= the (mooth (ai"ing ,a( di(ru#ted in the "a(t uarter of 1. he automo!i"e

(ector= ,hich contri!uted (u!(tantia""y to indu(tria" gro,th in 4H1= fai"ed to maintain the

(ame momentum !et,een 4H17and 4H1. he overa"" ("o,do,n in the economy and

the re(u"tant ("o,do,n in indu(tria" #roduction= #o"itica" uncertainty and inadeuate

infra(tructure deve"o#ment ,ere (ome of the factor( re(#on(i!"e for the ("o,do,n

ex#erienced !y the automo!i"e (ector. 5hi"e the (ector ex#erienced a turnaround ,ith the

"aunch of many ne, mode"(= and ex#erienced #o(itive gro,th rate( that turned out to !e

rather !rief. In the financia" year 4H200) the (ector ha( !een ,itne((ing a !oom. "though

the automo!i"e (ector in India ha( come a "ong ,ay (ince it( !eginning in 1%0F(= the country

doe( not rank ,e"" in many re(#ect(. 4or in(tance= the contri!ution of the automo!i"e (ector

to indu(tria" out#ut= num!er of car( #er #er(on= automo!i"e (ector em#"oyment a( a

#ercentage of indu(tria" em#"oyment. "(o= the indu(try #rofi"e in India i( very different

from g"o!a" #rofi"e. In 13=g"o!a""y= the #a((enger car( (ector ,a( the "arge(t one=

accounting for over )0; in term( of num!er of unit( (o"d< of the automotive (ector. In

India= on the other hand= it accounted for around 1) of the tota" vehic"e( (o"d in 4H2001.

>oreover= the "inkage( ,ith the a((ociate indu(trie( are (ti"" tenuou( in India. 9on(ider the

exam#"e of (tee". he ua"ity of (tee" avai"a!"e in India make( origina" eui#ment

manufacturer( ;&E>(< to im#ort (kin #ane"(. ?o,ever= the ma'or car manufacturer( ,or"d-

,ide con(ider India a good #otentia" market a( they fore(ee a "arge future demand here. ,o

thing( that have (tunted the Indian automo!i"e indu(try in the #a(t are "o, demand and "ack

of vi(ion on the #art of &E>( and #o"icy maker(. ?o,ever= in the recent #a(t= the regu"atory

environment ha( !een "i!era"ied= demand ha( #icked u#= and in (uch a (ituation= g"o!a"

&E>( ,ho en'oy (ca"e economie( !oth in term( of manufacturing and re(earch and

deve"o#ment ;+/


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of "o, intere(t rate( and !uoyant con(umer confidence (#urred the three year( record in

17. ?o,ever= (a"e( ti"" 2002 remained f"at !ut after 2003 the market gro,th ha( !een

(u!(tantia".

>ean,hi"e= to achieve critica" ma((= increa(e their g"o!a" #re(ence and drive do,n

#urcha(ing and techno"ogy co(t(= many &E>( have (tarted con(o"idating and re(tructuring.

he "a(t fe, year( have ,itne((ed hectic activity in thi( area= the nota!"e among ,hich

inc"ude the merger of 9hy("er and /aim"er BenG 4ordF( acui(ition of S,edenF( Co"vo 9ar

9or#orationG +enau"tF( acui(ition of an euity (take in $i((anG genera" >otor( increa(e of

euity #artici#ation in SuukiG and /ai"mer9hy("erF( acui(ition of euity (take in

>it(u!i(hi >otor( of Da#an.

he #ur#o(e of merger( and acui(ition( ;>(< i( to create ne, o##ortunitie( for gro,th

and im#rove margin( through im#roved co(t recovery. he hectic #ace of a"" the merger

activitie( not,ith(tanding= the g"o!a" automo!i"e indu(try i( yet to (ta!i"ie. 4or in(tance= in

the 6S= de(#ite a decade of !uoyant (a"e(= the indu(try continue( to !e #"agued !y exce((

ca#acity. "(o= higher "eve"( of integration of the region( have en(ured that it i( more

difficu"t for a manufacturer to (tay in(u"ated from the effect( of reduced gro,th in one #art

of the ,or"d.

"(o= g"o!a"iation and con(o"idation have im#acted re"ation(hi#( !et,een &E>( and

(u##"ier(. he aim of mo(t (u##"ier( i( to !ecome !ig enough to dea" direct"y ,ith the &E>(

;either through organic gro,th or through >(< or !ecome (u##"ier( to (y(tem(

integrator( ,ho are increa(ing"y gaining acce(( to the &E>(. Be(ide(= the (tructure of then

indu(try i( changing ,ith the re"ation(hi# !et,een the &E>( and the dea"er( and the #ricing

of the &E>( undergoing a change.


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DESIGN OF THE STUDY

hi( cha#ter !rief"y de(cri!e( the de(ign of the (tudy= !eginning from the tit"e of the (tudy

and goe( on to ex#"ain the o!'ective= (co#e of the (tudy= methodo"ogy= (am#"ing= fie"d ,ork=

ana"y(i( and fina""y the "imitation of the (tudy.

SE>E$ &4 +&BE>

he automo!i"e indu(try i( (ti"" in it( gro,th (tage in India and it i( in the #ro(#ect( of

gro,th !ecau(e of ne, com#any entrant(= the com#etition in the !u(ine(( ha( increa(ed.

herefore it i( need for the com#anie( to #rovide !etter (ervice(= !y giving the con(umer( the

!e(t (ervice(.

he re(earch i( conducted.

1< o under(tand the different a(#ect( of cu(tomerF( vie,( and (ati(faction and

ex#ectation(.

2< o kno, a!out the "uxury car (egment.

3< o kno, a!out the variou( mode"( of the "uxury car( avai"a!"e in the market.

%< o find out the a,arene(( "eve" of the con(umer.

S9&E &4 ?E S6/H

oday the utomo!i"e indu(try i( undergoing a revo"ution. >any of !randed com#anie( are

entering into thi( fie"d. hi( ha( given ri(e to the o#ening of the com#etitive com#anie( "ike

Ford, Maruti, Opel, Hyundai, Toyota, Tata, Skoda, Mitsubishi, Honda, and Mahindra.

5ith the (tudy ,e can get (ome (ugge(tion( from cu(tomer for (ervice im#rovement( in

term( of ua"ity and ,hat he*(he i( ex#ecting from the "uxury car( avai"a!"e and ,hich are

yet to !e introduced and to under(tand ,hat ne, feature( are !eing #rovided in the "uxury


16/80

car( (egment in the automo!i"e indu(try. In the (tudy ,e can find out the "eve"( of cu(tomer

(ati(faction .5e can a"(o identify the cau(e( for cu(tomer di((ati(faction "ike "ook(= (eating=

acce((orie(= interior(= (#are #art( and engine noi(e.

$EE/ 4&+ ?E S6/H

1< o find out ,hat are the "uxury car( avai"a!"e and ,hich are yet to !e introduced.

2< o under(tand different a(#ect( of cu(tomer( vie,( and (ati(faction(.

3< o find out ,hich car i( in the "eader in the "uxury (egment.

%< o find out ,hat ne, feature( are !eing #rovided in the "uxury car(.

&BDE9ICES &4 ?E S6/H

o generate (ugge(tion( from cu(tomer( for (ervice im#rovement.

o (tudy the #re(ent (cenario of the "uxury car(.

o identify the variou( com#"aint( of the cu(tomer( on variou( a(#ect( "ike "ook(=

(eating= acce((orie(= interior(= (#are #art(= engine noi(e and other(.

o find out the com#anie( re(#on(e to cu(tomer need( and ,ant(.

o find out the "eve" of cu(tomer (ati(faction from the "uxury car( u(er(.

he different ty#e( of "uxury mode"( in the market.


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+ESE+9? /ESI$

>eaning of the re(earch de(ign

+e(earch de(ign i( the arrangement of condition( and ana"y(i( of data in a manner that aim(

to com!ine re"evance to the re(earch #ur#o(e ,ith economy in #rocedure. In other ,ord( iti( a "ogica" and (y(tematic #"an #re#ared for directing a re(earch (tudy. It (#ecifie( the

o!'ective( of the (tudy= the methodo"ogy and the techniue( to !e ado#ted for achieving the

o!'ective(.

$ature of re(earch de(ign

re(earch de(ign i( indi(#en(a!"e for a re(earch #ro'ect un"ike the !ui"ding #"an ,hich i(

#reci(e and (#ecific. +e(earch de(ign i( a @tentative #"anA ,ith a (erie( of guide #o(t( to

kee# one going on in a right direction. It undergoe( modification(= a( circum(tance(

demand ,hen the (tudy #rogre((e(. $e, a(#ect(= ne, condition( and ne, re"ation(hi#(

come to "ight ,hen the (tudy dee#en(.

re(earch i( #ure"y and (im#"y the frame,ork or #"an for a (tudy that guide( the co""ection

and ana"y(i( of the data. It i( a !"ue #rint that i( fo""o,ed in com#"eting a (tudy.

he (tudy mu(t !e re"evant to the #ro!"em.

he (tudy mu(t em#"oy economica" #rocedure(.

hree im#ortant #oint( a!out re(earch de(ign are

he de(ign of inve(tigation (hou"d (tem for the #ro!"em.

he three !a(ic re(earch de(ign( are ,hether the de(ign i( #roductive in given

#ro!"em (etting de#end( on ho, imaginative"y they are a##"ied.

n under(tanding of the !a(ic de(ign i( needed (o that they can !e modified to (uit

(#ecific #ur#o(e.


19/80

L Ex#"oratory

Ex#"oratory re(earch i( u(ed ,hen one i( not conver(ant ,ith the #ro!"em environment

(uch ty#e of inve(tigation i( main"y concerned in determining the genera" nature of the

#ro!"em and varia!"e( re"ated to it.

L /e(cri#tive

/e(cri#tive re(earch de(ign( are determined for (ome definite #ur#o(e a num!er of

re(earch (tudie( can !e !a(ed on (uch de(ign( it i( focu(ed on accurate de(cri#tion of the

varia!"e( #re(ent in the #ro!"em.

L 9a(ua" or ex#erimenta"

9a(ua" or ex#erimenta" de(ign attem#t to (#ecify the nature of functiona" re"ation(hi#

!et,een t,o or more varia!"e( #re(ent in the #ro!"em environment.

+e(earch methodo"ogy i( a ,ay to (y(tematica""y (o"ve the re(earch #ro!"em. It may !e

under(tood a( a (cience of (tudying ho, re(earch i( done (cientifica""y. In thi( re(earch

fir(t"y= ex#"oratory re(earch i( done !y the vi(iting the >aruti= 4ord= /ae,oo= 4iat= etc.

(ho,room( to gather the #re"iminary data. Second"y= de(cri#tive re(earch i( done through

(urvey( to find the variou( a(#ect( of cu(tomer (ati(faction "ike (ound c"arity= (ervice

charge(= (ervice de"ivery= etc. :ue(tionnaire i( #re#ared to co""ect the #rimary data.

S>E /ESI$

Sam#"ing may !e defined a( the (e"ection of (ome #art of an aggregate or tota"ity= on the

!a(i( of ,hich 'udgment a!out the aggregate or tota"ity i( made. In other ,ord(= it i( the

#roce(( of o!taining information a!out an entire #o#u"ation !y on"y examining on"y a #art of

it.

4or the #ur#o(e of the (tudy 100 (am#"e( are (urveyed to co""ect the #rimary data.

he convenient (am#"ing ,a( u(ed to (e"ect the re#re(entative (am#"ing from the #o#u"ation=

!ecau(e the re(earcher did not have con(umer( ,ho ,ere ea(i"y acce((i!"e.


20/80

/efinition of the #o#u"ation

&ut of the (am#"e co""ected the !reak u# of the (am#"e (ie ,a( on the fo""o,ing #arameter(.

he re(#ondent( ,ere taken from a"" the kind( of c"a(( i.e. u##er c"a((= u##er

midd"e c"a(( and midd"e c"a((e(. he re(#ondent( have !een cho(en on random!a(i(.

he(e re(#ondent( ,ere the (oft,are engineer(= !u(ine((man= government

em#"oyee(= etc.

Some ,ere (tudent( of engineering co""ege and management co""ege(.

"(o the o#inion of "oca" #eo#"e had !een taken.

he (am#"e (ie con(i(t( of 100 re(#ondent(.

Sam#"e (ie

he (am#"e (ie ,a( determined on a 'udgmenta" !a(i(. tota" num!er of 100 re(#ondent(

,ere inc"uded in the (tudy of the(e mo(t ,ere (oft,are engineer( of (oft,are com#anie(=

entre#reneur( and a"(o the genera" #u!"ic.

Sam#"e echniue( do#ted( the Banga"ore city i( a metro#o"itan and it( #o#u"ation i( in mi""ion( and there are "arge

num!er of (ector(. he #o#u"ation univer(e in the city of Banga"ore !eing va(t in (ie= it ,a(

difficu"t to conduct 100 coverage of the (tudy ,ithin the "imited #eriod. ?ence the (am#"e

(urvey method i( ado#ted for thi( (tudy.


21/80

SOURCES OF D!T!

SE9&$/+H /

Secondary data refer( to that ,hich ha( a"ready !een co""ected !y (omeone e"(e.

Secondary data for the (tudy ,a( co""ected from

u!"i(hed "iterature

9om#any #u!"i(hed data and !rochure(

Internet

9ommercia" (ervice

Book(

+I>+H /

rimary data refer( to data that i( co""ected afre(h and recorded for the fir(t time.

rimary data are tho(e data i.e. co""ected !y the re(earcher him(e"f. It thu( ha##en( to

!e origina" in nature. he variou( method( of co""ecting #rimary data are #erforming

(urvey(= cen(u(= through o!(ervation or through correct communication ,ith

re(#ondent(. But !a(ic manner of #rimary data co""ection i( (urvey method. he

#rimary data for the (tudy ,a( co""ected through ue(tionnaire and informa"

intervie,( ,ith the re(#ondent(.

4IE/ 5&+J

he intervie, (chedu"e ,a( carefu""y decided and con(tructed u#on and revi(ed in

con(o"ation ,ith ex#ert( in order to avoid co""ection of irre"evant data.

he re(earcher direct"y a##roached the re(#ondent(.


22/80

2.10 &E+I&$ /E4I$II&$S &4 ?E S6/H

4or the #ur#o(e of the (tudy the fo""o,ing term( are u(ed

Services: Service( are deed(= #roce((e( and #erformance( inc"ude a"" economic

activitie( ,ho(e out#ut i( not a #hy(ica" #roduct or con(truction= it i( genera""ycon(umed at the time it i( #roduced.

Satisfaction: It i( a #er(on( fee"ing of #"ea(ure or di(a##ointment.

Quality: It i( the tota"ity of feature( and characteri(tic( of a #roduct of (ervicing that

!ear on it( a!i"ity to (ati(fy (tated or im#"ied need(.

Industry: n indu(try i( a grou# of firm( that offer a #roduct or #roduct(.

rand co!petition: It occur( ,hen a com#any "ook( at it( com#etitor( a( other

com#anie( offering (imi"ar #roduct( and (ervice( to the (ame cu(tomer( at (imi"ar#rice(.

Marketin":It i( a (ocia" and manageria" #roce(( !y ,hich individua" and grou#( ,hat

they need and ,ant through creating offering and exchanging #roduct( of va"ue( ,ith

other(.

#alue: It i( the con(umerF( e(timate of the #roduct( overa"" ca#acity to (ati(fy hi( or

her need(.

$rice:Service #rice are #o,erfu" cu(tomer( that aid cu(tomer in forming ex#ectation of

(ervice "eve"(.

Service delivery:It refer( to ,hat actua""y ha##en( ,hen the cu(tomer( !y the (ervice.

%ost &uality::ua"ity im#rovement( "ead( to #rofi"e at "ea(t in #art( !ecau(e of co(t

(aving achieved through increa(ed efficiency.

rand na!e:Brand i( a name= term= (ign= (ym!o"= de(ign or a com!ination of them=

intended to identify the good( (ervice(.

'uto!obile: n utomo!i"e i( a (e"f #ro#e""ed vehic"e ,hich i( u(ed for the

tran(#ortation of #a((enger( and good( u#on the ground. he #rogre(( of automo!i"e(

for tran(#ortation ha( a",ay( !een a((ociated ,ith the #rogre(( of civi"iation and

deve"o#ment of a country.

Market:>arket mean( a #"ace or "oca"ity ,here thing( are !rought and (o"d and ,here

!uyer( and (e""er( #er(ona""y meet to affect the(e #urcha(e and (a"e(.


23/80

%hassis: he !a(ic-(trength auto frame inc"uding the engine= (u(#en(ion= ,hee"(=

!rake( and drive train. car ,ithout it( !ody or coach,ork. In mono"ogue or unit

con(truction it i( integra" ,ith the !ody.

%o!bustion cha!ber he (#ace remaining at the to# of the cy"inder ,hen the #i(ton

i( at the to# dead center #o(ition. 5here the fue"-air mixture !egin( to !urn.

%o!pression: In interna"-com!u(tion reci#rocating engine(= the (ueeing of the fue"-

air mixture in the cy"inder of a (#ark-ignition engine or the (ueeing of the air in a

die(e" engine. 9om#re((ion make( com!u(tion more effective and increa(e( engine

efficiency.

(iesel en"ine n interna"-com!u(tion engine in ,hich the fue" i( in'ected into the

cy"inder near the end of the com#re((ion (troke and i( ignited !y the heat of the

com#re((ed air in the cy"inder. $o (#ark #"ug or car!uretor i( needed.

(isc brake ty#e of !rake in ,hich t,o friction #ad( gri# a (tee" di(c that i( attached

to the ,hee"= ,ith one #ad on each (ide. 6(ed on race car(= (#ort( car(= and !etter

#a((enger car(.

(istributor: he moving #art of the interna"-com!u(tion engine ignition (y(tem that

direct( the high-vo"tage current from the coi" to the (#ark #"ug( in the #ro#er firing

order.

Fiber"lass very tough and dura!"e #"a(tic materia" ,ith fi!er( running through the

#"a(tic. 6(ed for race car !odie(= many (#ort( car !odie(= and a"(o en'oy( con(idera!"e

acce#tance for #a((enger car !odie(.

Fly)heel: "arge= heavy iron or (tee" di(c attached to the rear of an engine crank(haft

in order to #rovide (ufficient centrifuga" force to (mooth the #o,er im#u"(e( from the

cy"inder(.

Fuel in*ection &n interna"-com!u(tion engine(= a (y(tem that in'ect( a #reci(e"y

mea(ured amount of fue" into the cy"inder at exact"y the right moment. /i(#en(e( ,iththe car!uretor and increa(e( engine efficiency.

+ears:5hee"( ,ith me(hing teeth to tran(mit #o,er !et,een rotating (haft(. 5hen the

gear ,hee"( are of different (ie(= a change in (#eed ratio occur(. ear( are made of hard

(tee".


24/80

Internalco!bustion en"ine:ny engine= either reci#rocating or rotary= in ,hich the

fue" i( con(umed in the interior of the engine rather than out(ide of the engine.

Overdrive: (ma"" auxi"iary gear!ox that #rovide( an additiona" gear ratio. It cau(e(

the drive (haft to turn fa(ter than the engine crank(haft or MoverdriveM it. It i( engaged

manua""y ,hen under ,ay and reduce( fue" con(um#tion.

Abbreviations and A#ronyms-

B9 -ctive Body 9ontro"

BS - nti"ock Brake Sy(tem

9 - "ternating 9urrent

*9 - ir 9onditioning

E9> - Engine 9ontro" >odu"e

4BS - 4"exi!"e uto Body Sy(tem

4I - 4ue" In'ection

45/ - 4ront 5hee" /rive

9/ - iuid 9ry(ta" /i(#"ay

9> - ighting 9ontro" >odu"e

$C - $e, eneration Cehic"e

&E> - &rigina" Eui#ment >anufacturer

&/ - &verdrive

&IS - &verhead rave" Information Sy(tem

S - o,er Steering

S - re((ure S,itch ((em!"y

+BS - +ear nti"ock Brake Sy(tem

S/S - Shock /am#ening Sy(tem


25/80

LI#IT!TIONS OF THE STUDY

he u(er( of "uxury car( are geogra#hica""y ,ide (#read and hence contacting them i(

time con(uming.

he (am#"e (ie of cu(tomer i( "imited to 100 !ecau(e of time and co(t factor.

he information co""ected may not !e (ufficient and re"ia!"e in term( of tota" market

condition( in India a( Banga"ore re#re(ent( on"y a (ma"" #ortion of the tota" nationa"

market.

hough the #er(ona" intervie,( con(ider !eing the !e(t method for (urveying a( it a"(o

ref"ect( the !ody "anguage= it (ometime( !ecome ( difficu"t to get and retain intervie,ee=

!ecau(e of their !u(y (chedu"e.

>o(t of the re(#ondent( !e"ong to u##er midd"e c"a(( or u##er c"a((. he a##roacha!i"ity

,a( one of the main con(traint(.

$on avai"a!i"ity of the data!a(e regarding the u(er( of variou( "uxury car( "ed to more hit

and tria" ex#eriment(.


26/80

PROFILE OF THE INDUSTRY !ND RESPONDENTS

+&4IE &4 ?E I$/6S+H

n utomo!i"e i( a (e"f #ro#e""ed vehic"e ,hich i( u(ed for the tran(#ortation of #a((enger(

and good( u#on the ground. he #rogre(( of automo!i"e( for tran(#ortation ha( a",ay( !een

a((ociated ,ith the #rogre(( of civi"iation and deve"o#ment of a country.

?IS&+H

ermany i( the !irth #"ace of automo!i"e(. In 17 a 4rench engineer= ca#tain $icho"a(

9ugnot !ui"t the fir(t (e"f #ro#e""ed vehic"e. It ,a( three ,hee"er ,ith a maximum (#eed if 3

m#h. It ,a( fitted ,ith a (team engine. In 1802 +ichard revit"uck of Eng"and !ui"t the fir(t

#ractica" (team automo!i"e u(ing the crank(haft for the fir(t time.

In 183 enoir of 4rance !ui"t the automo!i"e #ro#e""ed !y the ga( engine. In 187= Eienne

enoir of Be"gium invented the fir(t #ractica" interna" com!u(tion engine. In 188) the rea"

automo!i"e ,a( !ui"t !y /aim"er Ben em#"oying four (troke #etro" engine( in ermany. In

18) ?enry 4ord of merica made hi( fir(t famou( car in cor#ora ting the main feature( of

#re(ent day automo!i"e(. 4rom 100-10 the #roduction and (a"e( of automo!i"e( !ecame

the rea" !u(ine((. In 10% Sim#(on 9om#any of >adra( (tarted to !ui"d the automo!i"e

!odie(. In 113 the tota" vehic"e( in India ,ere on"y %)00 and in 11% the tota" no of vehic"e(

rai(e to 000. In 12= 4ord motor com#any of India e(ta!"i(hed there office in Bom!ay and

(o"d the ,or"d famou( @4ord-A modern car(.

In 188= the fir(t motorcar a##eared in India ,ith taxi ca! in Bom!ay. In 13)= Sir >.

Ci(h,e(hvaraya (et u# automo!i"e indu(try in India= !ut the government did not a##rove thi(

#"an. In 1%3= the remier utomo!i"e( imited factory ,a( (etu# at Bom!ay for

manufacturing car( in India. In the year 1%%= the ?indu(tan >otor( td. 4actory ,a( (etu#

at 9a"cutta for manufacturing car(. In India after the Inde#endence ?indu(tan >otor( td=


27/80

9a"cutta and remier utomo!i"e( td= Bom!ay came into exi(tence and (tarted

manufacturing the m!a((ador and 4iat car(. In 1%8= (hok ey"and td= >adra( (tarted

manufacturing the commercia" vehic"e(. ater on >ahindra and >ahindra td= Bom!ay

(tarted manufacturing 'ee#(. In 1)%= ata Engineering and ocomotive( 9om#any td.

9ame into exi(tence at Dam(hed#ur and (tarted manufacturing commercia" vehic"e(.

he automo!i"e (ector (a, a !oom in the #o(t "i!era"iation #eriod. he !uoyancy in the auto

(ector ,a( #rimari"y due to a vi!rant economy ,ith an average / gro,th of

a##roximate"y . 9hange( in government #o"icy increa(e in #urcha(ing #o,er increa(e in

"ife (ty"e(= avai"a!i"ity of car finance etc. hough the market ha( !oomed= the individua"

#"ayer( are "ike"y to have a (et !ack in the near future due to inten(e com#etition. Severa"

'oint venture( have !een (igned and (evera" are ex#ected in the near future. he (mooth

(aving (ector (a, a (udden 'erk in "a(t uarter of 1. he automo!i"e indu(try ,hich

contri!uted (u!(tantia""y to indu(tria" gro,th in 1)- fai"ed to maintain the (ame

momentum in the fir(t ha"f of 1-7. he automo!i"e #roduction ha( f"uctuated throughout

the fir(t ha"f of the current year. hough it recover( in /ecem!er 1 #o(ting a gro,th of

17= the rate of gro,th of 2) ,hich the indu(try managed in 1)- ,i"" not !e (u(tain

,ith #roduction (ti"" out #acing (a"e( in mo(t of the (egment( of the market.

uto (tock( #"ummeted= ,ith the "arge #"ayer( (uffering more ca(ua"tie( than the (ma""er

one(. Indu(try (ource( #oint out to the ("o, do,n in (a"e(= !ui"ding u# of inventorie( and

("a(hing of #roduction target( a( the cau(e of the cra(h. 5hi"e one (choo" of thought !e"ieve(

that thi( i( the tem#orary #ha(e ,a( cau(ed !y the (#ecia" cu(tom duty of 2 "evied on the

auto indu(try in the 1-7 !udget and #o(t e"ection fue" hike. he other (choo" of thought

argue( that thi( hike ,a( off(et !y the cut in duty on #"a(tic(= e"ectronic com#onent(= tyre(

;natura" ru!!er< and (tee".

Evo"ution of automo!i"e indu(try

I%itial ,ear+:

9ar( regarded a( "uxurie(.

>anufacturing ,a( "icen(ed= ca#acity ex#an(ion re(tricted.

Im#ort of car( ,a( re(tricted to (tate trading cor#oration and foreign di#"omat(.


28/80

?igh cu(tom duty.

Stee# exci(e dutie( and (a"e( taxe(.

>arket dominated !y 'u(t t,o #"ayer(- remier utomo!i"e( td. and ?indu(tan

>otor( td.

15+:

Entry of >aruti 6dyog td.-!etter #roduct at "o,er #rice= en'oyed government

(u##ort.

Se""erF( market.

ong ,aiting #eriod(. imited choice.

+e(triction on ca#acitie(.

icen(e reuirement(.

?igh im#ort dutie(.

uto finance !ecame avai"a!"e !ut ,a( "imited to a fe, #"ayer(.

>6 ca#tured a ma'or market (hare= and ?> ,ere a!"e to maintain vo"ume(

!ut their market (hare( fe"" dra(tica""y.

1+:

9ar( #erceived a( nece((itie(.

Sti"" a (e""er( market.

ong ,aiting #eriod( continue.

/eve"o#ment of the mid #rice and "uxury (egment(.

Increa(e in com#etition ,ith the entry of foreign manufacturer( e(#ecia""y after the

mid 10(.

Su#erior mode"( and more choice.

uto finance !oom(-more #"ayer( ;foreign !ank( and $B49(


29/80

/ecrea(e in cu(tom and exci(e dutie(.

F't're:

Buyer( market.

/ro# in ,aiting #eriod. >arket (egmentation to change from !eing #rice !a(ed to !eing (ie !a(ed.

Shake out in the indu(try.

Increa(e in indigeniation.

echno"ogica""y (u#erior and more comforta!"e mode"( internationa""y com#ara!"e

mode"(.

+egu"atory frame,ork to !e com#"ete"y re"axed.

uto finance.

a< /ecrea(e in the intere(t rate(G fa(ter "oan turnaround= higher (ervice "eve"=

(ma""er margin reuirement( and decrea(e in #a#er ,ork.

!< (hake out i( #o((i!"e.

c< 9hange in the kind of #roduct( offered Nat #re(ent hire #urcha(e (cheme( are

more #reva"ent than "ea(ing= thi( i( "ike"y to !e rever(ed in the future.

d< Increa(e in im#ortance of the (a"e( and (ervice net,ork and infra(tructure.


30/80

$e, eneration ofengine( ur!o

charging= cata"yticconverter(

>anufacturingechno"ogie(4"exi!"e>anufacturing

E;erge%-e o< a

Ne/ !'to;o6ile

I%0'+tr,

9hangingStructure of/emand

/i(tri!ution Sy(tem9hanging re"ation

!et,eenmanufacturer( dea"er(

9om#onent( yre( o,erread ,ear=+adia"(

>ateria"( "o,,eight= (yntheticcom#o(ite(

uto 4inanceBetter Scheme(

uto 4inanceBetter Scheme(

+egu"atoryframe,ork/eregu"ation /e"i cen(ing

$e,9o""a!oration(entry of foreignmanufacturer(


31/80

utomo!i"e indu(try in India

utomo!i"e indu(try in India i( today #oi(ed for the !ig "ea# and thi( (egment he"#( you to

!e ready for that. ?i(tory and deve"o#ment of utomo!i"e( a"(o mark( the dynami(m in

techno"ogica" gro,th men have achieved. 4rom the day( of hor(e"e(( carriage( to the

modern-age (e"f-guided automo!i"e( that are de(igned meticu"ou("y u(ing cutting-edge

techno"ogy= ,e have certain"y trave"ed too far. o through thi( (egment to kno, a!out the

automo!i"e(= their hi(tory= deve"o#ment #ha(e(= and in #articu"ar their re"evance to India.

utomo!i"e Indu(try in India i( (ti"" in it( infancy !ut gro,ing ra#id"y. he o##ortunitie( in

the automo!i"e indu(try in India are attracting !ig name( ,ith the !ig #ur(e and they are

inve(ting vigorou("y in infra(tructure= de(ign and deve"o#ment= and marketing. utomo!i"e

indu(try in India i( today #oi(ed for the !ig "ea# and thi( (egment he"#( you to !e ready for

that.

he Birth of the 9ar

he !irth of the car a( ,e kno, it today occurred over a #eriod of year(. It ,a( on"y in 188)

that the fir(t rea" car ro""ed do,n on to the (treet(. he ear"ier attem#t(= though (ucce((fu"=

,ere (team #o,ered road-vehic"e(. he fir(t (e"f-#ro#e""ed car ,a( !ui"t !y $ico"a( 9ugnot

in 17 ,hich cou"d attain (#eed( of u#to km(*hour. In 1771 he again de(igned another

(team-driven engine ,hich ran (o fa(t that it rammed into a ,a""= recording the ,or"dF( fir(t

accident. In 1807 4rancoi( I(aac de +iva de(igned the fir(t interna" com!u(tion engine. hi(

,a( (u!(euent"y u(ed !y him to deve"o# the ,or"dF( fir(t vehic"e to run on (uch an engine=

one that u(ed a mixture of hydrogen and oxygen to generate energy.

hi( (#a,ned the !irth of a num!er of de(ign( !a(ed on the interna" com!u(tion engine in

the ear"y nineteenth century ,ith "itt"e or no degree of commercia" (ucce((. In 180


32/80

thereafter= Dean Do(e#h Etienne enoir !ui"t the fir(t (ucce((fu" t,o-(troke ga( driven engine.

In 182 he again !ui"t an ex#erimenta" vehic"e driven !y hi( ga(-engine= ,hich ran at a (#eed

of 3 km(*hour. he(e car( !ecame #o#u"ar and !y 18) cou"d !e freuent"y e(#ied on the

road(. he next ma'or "ea# for,ard occurred in 188) ,hen the four (troke engine ,a(

devi(ed. otti"e! /am"ier and $ico"a( &tto ,orked together on the mi((ion ti"" they fe""

a#art. /aim"er created hi( o,n engine( ,hich he u(ed !oth for car( and for the fir(t four

,hee" hor(e"e(( carriage. In the mean,hi"e= unkno,n to them= Jar" Ben= ,a( in the #roce((

of creating hi( o,n advanced tri-cyc"e ,hich #roved to !e the fir(t true car. hi( car fir(t (a,

the "ight of the day in 188.he (ea(on of ex#eriment( continued acro(( the (ea( in the

6nited State( ,here ?enry 4ord !egan ,ork on a hor(e"e(( carriage in 180. ?e ,ent

(evera" (te#( for,ard and in 18= com#"eted hi( fir(t car= the :uadricyc"e in 18. hi( ,a(

an automo!i"e #o,ered !y a t,o cy"inder ga(o"ine engine. he 4ord >otor 9om#any ,a(

"aunched in 103 and in 108 he cata#u"ted hi( vehic"e= >ode" 4ord to the #innac"e of

fame. 9ontinuing ,ith hi( innovation(= he #roduced thi( mode" on a moving a((em!"y "ine=

thu( introducing the modern ma(( #roduction techniue( of the automo!i"e indu(try.

5ith the invention of the ,hee" in %000 B9= manF( 'ourney on the road of mechanied

tran(#ort had !egun. Since then he continua""y (ought to devi(e an automated= "a!or (aving

machine to re#"ace the hor(e. Innumera!"e attem#t( reached conc"u(ion in the ear"y 170(

,ith the !ui"ding of the fir(t (team driven tractor !y a 4rench 9a#tain= $ico"a( Daco! 9ugnot.

It ,a( ho,ever "eft to Jar" Ben and ott"ie! /am"ier to #roduce the fir(t vehic"e( #o,ered

!y the interna" com!u(tion engine in 188). It ,a( then that the #etro" engine ,a( introduced=

,hich made the car a #ractica" and (afe #ro#o(ition. he car( in thi( #eriod ,ere more "ike

the car( on our road( today. 5ith car( came the era of (#eed.

he fir(t ever "and-(#eed record ,a( e(ta!"i(hed a!out a 100 year( !ack= in 188. 9ount

a(ton de 9ha((e"ou#-au!at of 4rance drove an e"ectric car ;in chere( near ari(< at a

(#eed of 3.2% mi"e( #er hour. hi( f"agged off the era of O,hee"( racingF= ,hich "a(ted ti""

1%= after ,hich 'et and rocket -#ro#e""ed vehic"e( ,ere a""o,ed. hen on,ard(= it ha( !een

one !ig 'ourney...on the road(. 5ith the invention of the ,hee" in %000 B9= manF( 'ourney

on the road of mechanied tran(#ort had !egun. Since then he continua""y (ought to devi(e an

automated= "a!or (aving machine to re#"ace the hor(e. Innumera!"e attem#t( reached


33/80

conc"u(ion in the ear"y 170( ,ith the !ui"ding of the fir(t (team driven tractor !y a 4rench

9a#tain= $ico"a( Daco! 9ugnot. hen on,ard(= it ha( !een one !ig 'ourney...on the road(.

4ir(t Indian to !uy a car

he fir(t car ,a( im#orted into Bom!ay in 187 or P8 !y a >r. 4or(ter of reave( 9otton

and 9om#any. Dam(et'i ata,a( the fir(t Indian in Bom!ay to o,n a car ,hen he !ought

one in 101.

?E &B 9+ >+JE

he auto indu(try i( #redominant in $orth merica= Da#an and Euro#e. he 6S ha( one of

the "arge(t market in the ,or"d= ,ith 1 mi""ion "ight motor vehic"e (o"d in 1= !e(ide(

tho(e ex#orted. he ma'or car manufacturer( in the 6S are genera" >otor( ,ith a market

(hare of 3 and 4ord >otor( ,ith a 23 (hare. he (econd "arge(t market for car( in the

,or"d i( 5e(tern Euro#e. In term( of num!er of car( manufactured= India ha( a (hare of on"y

0. of the ,or"dF( #roduction. he automo!i"e (ector i( a vita" (ector for any deve"o#edeconomy. It drive( u#(tream indu(trie( "ike (tee"= iron= a"uminum= ru!!er= #"a(tic(= g"a(( and

e"ectronic( and do,n(tream indu(trie( "ike adverti(ing and marketing= tran(#ort and

in(urance. 5hat i( good for the automo!i"e (ector i( !eneficia" for the economy a( ,e"".

?o,ever= in India the corre"ation !et,een the automo!i"e indu(try and economic gro,th i(

"o,= ,ith the automo!i"e( indu(try contri!ution to the $ !eing on"y 3. In the 6S it

account( for over ) of the $. Every (ixth ,orker in the 6S i( invo"ved in making of an

automo!i"e.

India i( con(idered a good #otentia" market !y the ma'or ,or"d car manufacturer( a( they

fore(ee a "arge demand in the Indian car market. In term( of num!er of #er(on( #er car the

6S ha( an average of 1.% #er(on( #er carG 9anada ha( 1.8= u(tra"ia and $e, Kea"and

2.2#er(on( each= the Euro#ean 9ommunity ha(2.)= hai"and 2.)= ,herea( India ha( 2.7)
http://theory.tifr.res.in/bombay/persons/jamsetji-tata.htmlhttp://theory.tifr.res.in/bombay/persons/jamsetji-tata.htmlhttp://theory.tifr.res.in/bombay/persons/jamsetji-tata.html


34/80

#er(on( #er car. "(o= it take( an average 21 ,eek( income in the 6S= 1) ,eek( in Da#an= 27

,eek( in the Euro#ean 9ommunity= ,herea( the ratio i( very high in India.

,o thing( that have (ati(fied the IndiaF( automo!i"e indu(try in the #a(t are "o, demand

and "ack of vi(ion on #art of &E>( and #o"icy maker(. In (uch a (ituation= g"o!a" &E>( ,ho

en'oy (ca"e economie( !oth in term( of manufacturing and +/ i( #oi(ed to take a !ig "ea#

for,ard. hi( i( "ike"y to re(u"t in a !ig (hift in the ,ay !u(ine(( i( conducted !y (u##"ier(=

a((em!"er( and marketer(.

#ar8et Seg;e%t+

he Sma"" 9ar Segment

he (ma"" car (egment i( re#re(ented !y ca#acity car( "ike >aruti 800= >ati= ata Indica=

Santro= etc. in thi( (egment >aruti ha( !een the !e(t (e""er= ,ith a market (hare in exce(( of

7). he key to >arutiF( (ucce(( ha( !een the co(t advantage ,hich ha( tran("ated into

com#etitive #ricing. ? e margin( are "o, in thi( (egment a( com#ared to other (egment(

and un"e(( the (ca"e of o#eration( i( "arge= the (ector may not !e fea(i!"e for ne, entrant(.

$e, unit( ,i"" have to inve(t a "arge (um and manufacture more than one "akh car( #er

annum= to achieve economy of o#eration(.

/emand in thi( (egment i( affected !y factor( !y (uch a( hou(eho"d income(= "imited

avai"a!i"ity of #roduct( and increa(ing u(e of car a( a cor#orate executive #erk. hi( (egment

cater( main"y to the u##er midd"e c"a((.

he >edium 9ar Segment

he medium car (egment con(i(t( of !rand( "ike a"F( 118 $E= 9onte((a= Ken= etc. hi(

(egment main"y target( tho(e #eo#"e ,ho a"ready o,n a car and de(ire to !uy another one a(

a (tatu( (ym!o" or for ,ant of a more "uxuriou( car. he (a"e( of thi( (egment have not !een

very high and the (ucce(( of the(e vehic"e( ha( !een moderate in India.

he uxury 9ar Segmenthe "uxury car (egment con(i(t( of car( ,ith !etter feature( "ike !igger engine ca#acity=

more (#ace and modern techno"ogica" feature(. hi( (egment ha( 4ord E(cort= 4ord Ikon=

ancer= Scor#io= aura= >aruti Ba"eno= &ctavia= etc. hi( (egment target( to the u# market

cu(tomer(. he "uxury car( are aiming at the niche market( of the very rich and their


35/80

emerging con(um#tion #attern(. hey are a"(o !anking on ex#ort( market( ,ith the he"# of

the #romotion and di(tri!ution net,ork of the co""a!orator(. Being a fair"y young (egment=

#rice (en(itivity and #rice !arrier( are not kno,n and there are no !enchmark( of de(ired

#roduct feature(. >ode" (e"ection i( therefore ri(kier than in the (ma"" car (egment.

>oreover= a #otentia" #roducerF( choice (et i( "arge a( internationa""y !ig car( from a "arge

#ortion of the tota" market. here are three thing( that &E>( ,i"" have to factor in !efore

firming u# any (trategy or any mode" in the #remium (egment. 4ir(t"y= g"o!a" !rand( do

(uffer from !rand di"ution once they have manufactured on Indian (oi". Second"y= &E>(

have rea"ied that you cannot afford to (e"" o"der mode"( in thi( techno"ogy-(en(itive

(egment. hird"y= thi( (egment extreme"y vu"nera!"e to im#ort( of ne,er mode"(.

/6H S+696+E

he government focu(ed on far reaching indirect tax reform( in the 1-2000 !udget(= in a

!id to #romote efficient indu(tria" gro,th and #roductivity. he !udget !rought in a

reduction in the mu"ti#"icity of duty rate(= rationa"iation of the rate (tructure= and curtai"ed

(co#e for di(cretion !y a!o"i(hing the #o,er to grant ad hoc duty exem#tion( in exci(e and

cu(tom(. n uthority for dvance +u"ing( for Exci(e and 9u(tom( ,a( (et u# to in'ect

greater tran(#arency and #rovide !inding ru"e( to he"# #ro(#ective inve(tor( a!out their duty

"ia!i"ity in advance. ?o,ever= the automo!i"e indu(try ha( had to contend ,ith margina""y

rai(ed dutie( ;1< a( a re(u"t of the modification in the duty (tructure( and increa(ed die(e"

#rice( ;+e.1


36/80

indicated that the cu(tom( duty (tructure ,ou"d !e #ha(ed do,n to (ian "eve"( in five year(.

n additiona" cu(tom( duty of +e.1 #er "iter ha( !een im#o(ed on high-(#eed die(e" oi".

EQ9ISE /6H

here ha( !een continued rationa"iation of exci(e duty ,ith re(#ect to automo!i"e(. he

17-8 revi(ed duty (tructure had the fo""o,ing revi(ed rate( for motor vehic"e(

1. duty of %0 on motor vehic"e( de(igned for tran(#ort of not more than (ix #er(on(

;exc"uding the driver&/C credit of ) of the admi((i!"e amount and

re(tored it to 100. ( a re(u"t= manufacturer( can no, avai" fu"" credit of the duty #aid on

in#ut(. n additiona" duty of +e. 1 #er "iter ha( !een im#o(ed on high-(#eed die(e" oi". he

government intend( to uti"ie the #roceed( from thi( "evy for road deve"o#ment and for

initiative( in rura" deve"o#ment and the (ocia" (ector. he exci(e duty rate( for motor

vehic"e( no, range( from 10 to %0= ,hi"e the exci(e duty rate( for com#onent( and #art(

range( from 10 to 2). he Indian automotive indu(try ha( found a ready and acce#ting

g"o!a" market !ecau(e of the introduction of ne, vehic"e( and com#onent( ,ith im#roved

ua"ity and #erformance. he ex#ort va"ue of automotive ex#ort( in 17-8 i( +(.

30=201=228=000 a( com#ared to +(. %=3)=17=000. he automotive indu(try ha( maintained

a (teady (hare in the tota" ex#ort( of the country. It ha( had a (hare of 2.7 in 17-8= 2.2

in 18- and 2.8 in 1-00. ran(#ort eui#ment i( the (econd fa(te(t gro,ing ex#ort


37/80

commodity after ca(he, nut(= according to the Indian Economic Survey= 1-2000. 5ith a

,eight of 2.2 in the tota" ex#ort( of the country= tran(#ort eui#ment ha( gro,n !y )%.8

from R%%3.2 mi""ion in 18- to R8). mi""ion in 1-00.

"though the Indian auto ex#ort( have had no #re(ence in the g"o!a" ex#ort market of the

10( and 170(= it ha( maintained a (teady (hare of 0.1-0.2 in ,or"d road vehic"e( ex#ort(

(ince the 180(. "o!a"iation and foreign co""a!oration tie-u#( have a"(o #"ayed a ro"e in the

ex#ort gro,th.

EQ&+S - $ &CE+CIE5

he Indian automotive indu(try ha( found a ready and acce#ting g"o!a" market !ecau(e of

the introduction of ne, vehic"e( and com#onent( ,ith im#roved ua"ity and #erformance.

he ex#ort va"ue of automotive ex#ort( in 17-8 i( +(. 30=201=228=000 a( com#ared to +(.

%=3)=17=000. he automotive indu(try ha( maintained a (teady (hare in the tota" ex#ort( of

the country. It ha( had a (hare of 2.7 in 17-8= 2.2 in 18- and 2.8 in 1-00.

ran(#ort eui#ment i( the (econd fa(te(t gro,ing ex#ort commodity after ca(he, nut(=

according to the Indian Economic Survey= 1-2000. 5ith a ,eight of 2.2 in the tota"

ex#ort( of the country= tran(#ort eui#ment ha( gro,n !y )%.8 from R%%3.2 mi""ion in

18- to R8). mi""ion in 1-00. "though the Indian auto ex#ort( have had no

#re(ence in the g"o!a" ex#ort market of the 10( and 170(= it ha( maintained a (teady (hare

of 0.1-0.2 in ,or"d road vehic"e( ex#ort( (ince the 180(. "o!a"iation and foreign

co""a!oration tie-u#( have a"(o #"ayed a ro"e in the ex#ort gro,th. Ex#ort of a"" kind( of

automotive vehic"e( a( ,e"" a( auto com#onent( have !een increa(ing over the "a(t decade= a(

can !e (een from the gra#h.

6Q6+H 9+ >$6496+E+S

heoretica""y (#eaking= !eginning ear"ier thi( year= every automo!i"e in thi( ,or"d i( no,avai"a!"e to u( in India. Beginning ,ith the /ae,oo 9ie"o from Jorea a fe, year( ago= a""

auto com#anie( in the ,or"d (tarted entering India a#art from the t,o Jorean ai"y driving.

4&+/


38/80

4ord i( the fir(t com#any that !rought car to the common man. Ear"ier= car( ,ere a "uxury

item and mo(t"y fa!ricated #iece !y #iece one !y one= due to ,hich they ,ere high"y

ex#en(ive. ?enry 4ord I e(ta!"i(hed the fir(t a((em!"y "ine or ma((-#roductive car( in

merica. hi( made them chea#er and afforda!"e to common #eo#"eF( car in the ear"y 20 th

century. 4ord >otor 9om#any entered the !u(ine(( ,or"d ,ithout fanfare on Dune 1= 103=

,hen the "ate ?enry 4ord and 11a((ociate( fi"ed incor#oration #a#er( at >ichiganP( State

9a#ito" in an(ing. 5ith an a!undance of faith= !ut on"y R28=000in ca(h= the #ioneering

indu(tria"i(t( gave !irth to ,hat ,a( to !ecome one of the ,or"dP( "arge(t cor#oration(. 4e,

com#anie( are a( c"o(e"y identified ,ith the hi(tory and deve"o#ment of merica throughout

the 20th century a( 4ord. nd #erha#( no other merican firm i( a( ,e"" kno,n acro(( the

g"o!e.

.

?H6$/I

?yundai >otor ,a( e(ta!"i(hed in 17 !y the ?yundai grou#. ?o,ever= for a "ong #eriod it

,a( 'u(t #roducing car( !a(ed on the de(ign (u##"ied !y 4ord 6J. he fir(t (e"f-deve"o#ed

mode" ,a( the F7% ony= !ut under the guidance of >it(u!i(hi. Engine( a"(o came from the

Da#ane(e de(ign= ,hi"e the (ty"ing ,a( #enned !y Ita"ian de(ign. he car earned ?yundai the

name a( the !igge(t Jorean car maker ,hich i( (ti"" uncha""enged today. he (econd

generation ony of 182 marked another mi"e(tone the fir(t "arge (ca"e ex#ort. ike the

Da#ane(e= JoreanF( indu(try ,a( ;and (ti"" i(< very ex#ort-oriented. he ony (ma"" car=

!enefited !y the ,age advantage of Jorea "a!or(= (tormed the 9anadian (ma"" car market in

183. he ,or"d (tarted to rea"ie the ri(e of another Ea(tern car making nation. he fir(t

(e"f-de(igned engine a##eared in 11= ,hich (igna"ed the Mrea"M autonomy of +/. Sa"e(

continued to gro, in the ,ho"e 0F( a( mode" range ex#anded and ua"ity im#roved. hi(

com#any came to India in 1 and "aunched their ta"" !oy Santro in India= ,hich ,ent to

!ecome IndiaF( "arge(t (e""ing car= 'u(t !ehind >aruti.

4I

he 4iat 9om#any ,a( formed in 18= (tarting out ,ith a (ma"" ,orkforce ,ith fe,er than

%0 em#"oyee(. 5ithin 10 year( thi( (ma"" com#any in urin ,a( #roducing over 1200


39/80

motorcar( a year and a ,orkforce of around 2))0. he man re(#on(i!"e for thi( remarka!"e

turnaround ,a( iovanni gne""i= gne""i gained in(#iration from hi( freuent vi(it( to

merica and !egan to !ui"d Euro#eF( "arge(t factory in urin. he com#any (oon (tarted an

ex#ort driveG in 108 car( ,ere !eing !ui"t under "icen(e in $e, Hork. By the 10F( 4iat

car( ,ou"d !e #roduced in over 22 countrie(. &ver the year( they have taken under their

,ing great motoring name(= inc"uding among(t other(= "fa +omeo= anica= 4errari and

>a(erati. In 1)7 the 4iat )00 ,a( introduced= many motoring manufacturer( (corned thi(

(i""y "ooking tiny car= 4iat ho,ever= kne, !etter= their aim ,a( (o"e"y to #roduce a car for the

ma((e(.

-E6E& /.

'oint venture !et,een and utomo!i"e( eugeot= 4rance in 1% in ,hich each of

them ho"d 31.7. Became a u!"ic td com#any in 1). he com#any (tarted off in 1%

!y acuiring the Ja"yan #"ant of for manufacturing 118$E and 1.38 / at the initia"

(tage( and eugeot 30 at the "ater (tage. he die(e" ver(ion of eugeot 30 received a

favora!"e re(#on(e and ,a( a!"e to make a mark.

he com#any ha( reached dead-end fo""o,ing !reak-u# ,ith eugeot= 4rance. Initia""y it

attracted attention from ne, entrant( in the car (egment ,ho ,ere #"anning to (et u#

manufacturing faci"ity in the country. But ti"" today no !ai" out offer ha( !een made for

eugeot. he com#any i( c"earing a"" inventorie( of com#"ete"y !ui"t car( at a hefty di(count

ranging from +(0.1mn to +(0.1)mn. he exi(ting o,ner( of eugeot ,i"" a"(o face difficu"ty

in o!taining (#are #art( for the car.

>+6I

>aruti 6dyog td ;>6


40/80

!y the overnment under the >aruti td ;cui(ition nd ran(fer of 6ndertaking( ct=

180aruti 800 ,a( "aunched in 18%. In 18)= the a""-terrain vehic"e y#(y

,a( "aunched and >aruti (o"d it( )0=000th vehic"e. he >aruti 1000 ,a( "aunched in 10

and the Ken in 13.

In the car (egment= it had a market (hare of 83 in 4H8= ,ith (a"e( of 3%)=303 car(. 4or the

#eriod #ri" P8 to Danuary P= >6 car (a"e( have dro##ed !y .% to 23=81 com#ared

to 281=7 car( for the corre(#onding #eriod for 4H8.

he com#any i( kno,n for it( (trategy of va"ue-for-money #ricing ,hich ha( !een made

#o((i!"e due to the high "eve"( of indigeni(ation of it( vehic"e(. 5hi"e the >aruti 800= Ken=

E(teem and &mni are indigeni(ed to the extent of over 0 #er cent= the y#(y i( indigeni(ed

to the extent of 82 #er cent and the ex#ort ver(ion of the Ken ca""ed "to to the extent of 7

#er cent. >aruti ha( a vendor net,ork of a!out 37).

>IS6BIS?I

>it(u!i(hi >otorP( automotive tradition goe( !ack to 117 ,hen the >it(u!i(hi >ode" =

Da#anP( fir(t (erie(-#roduction automo!i"e= ,a( introduced. &ver the next t,o decade( the

com#any e(ta!"i(hed them(e"ve( a( an innovator= deve"o#ing= among(t other(= Da#anP( fir(t

die(e" engine= itP( fir(t "arge-(ied !u( ;the (tart of the ,or"d famou( 4u(o commercia"

vehic"e (erie(it(u!i(hi ?eavy Indu(trie( ,a( (#"it into

three regiona" com#anie(= each ,ith an invo"vement in motor vehic"e deve"o#ment.

he countryP( ma'or need at thi( time ,a( for commercia" vehic"e(= the (ituation !eing

further com#"icated during the fir(t fe, year( !y a (evere fue" (hortage. In con(euence 1%


41/80

(a, the introduction of a !u( ,hich cou"d !e run on either #etro" or a"ternative fue"(= and= in

1%7= an e"ectric !u(G in the truck fie"d the innovation( continued ,ith Da#anP( fir(t truck to

!e eui##ed ,ith an air (u(#en(ion (y(tem= a( ,e"" a( the fir(t ti"t-ca! truck. a((enger

vehic"e #roduction ,a( confined #rimari"y to >it(u!i(hiP( fir(t (cooter.

By the !eginning of the 10(= ho,ever= Da#anP( economy ,a( gearing u# ,age( ,ere ri(ing

and the idea of fami"y motoring ,a( taking off. he >it(u!i(hi )00= a ma(( market (a"oon=

fu"fi""ed thi( needG fo""o,ed= in 12= !y a four-(eater micro-com#act ,ith a t,o-(troke air-

coo"ed 3)cc engine= the >inica - a name ,hich (ti"" "ive( today. he fir(t 9o"t -a "arger=

more comforta!"e fami"y car= not a #redece((or of the modern 9o"t - ,a( a"(o introduced in

the (ame year= and the fir(t a""ant in 1. hi( ,a( a genuine #ace(etter in the Da#ane(e

market= re#re(enting the !e(t and "ate(t in automotive techno"ogy and ,a( to (ire a "ong andi""u(triou( "ine ,ith a (tring of motor (#ort( honor( and con(umer a,ard( to it( name. 5ith

(imi"ar gro,th in it( commercia" vehic"e #roduction it ,a( decided that the com#any (hou"d

create a (ing"e o#eration to focu( on the automotive indu(try and= in 170= the >it(u!i(hi

>otor( 9or#oration ,a( formed.

?&$/

he hi(tory of the ?onda >otor 9om#any !egan ,ith the vi(ion of one man - Soichiro?onda. ?i( dream ,a( #er(ona" mo!i"ity for everyone. Soichiro ?onda founded the ?onda

>otor 9om#any in 1%8. In the (ame year= he de(igned and engineered the fir(t #roduct of

thi( com#any - a )0 cc motoried !ike on a !icyc"e frame - in hi( (ma"" (hed at ?amamat(u.

oday= a( ,e ce"e!rate our )0th nniver(ary= ?onda i( a g"o!a" com#any ,ith a g"o!a"

vie,#oint and a five-region g"o!a" (trategy that i( ref"ected in a (o"id commitment to "oca"

market( and economie(. &ver the year(= ?onda ha( gained #rominence in the g"o!a"

community through cea(e"e(( innovation and a dedication to (ervicing the need( of (ociety.

?ondaP( hi(tory ha( !een a hi(tory of cha""enge( - cha""enge( encountered and overcome !y

#er(everance= ingenuity and the #ur(uit of #erfection.

&E


42/80

dam e" ,a( !orn in +u((e"(heim= ermany in 1838. ( a young adu"t= he toured Euro#e

and o!(erved the emerging indu(tria" revo"ution in the city of ari(G he (a, the fir(t (e,ing

machine and "earned ho, to !ui"d one. fter a fe, year(= he returned home to ermany and

!egan making (e,ing machine( in an o"d converted co, (hed. t the age of 2)= dam

founded the &E 9om#any. ?i( !u(ine(( gre, ra#id"y and !ecame the "arge(t (e,ing

machine manufacturing in ermany. 188% ,a( an im#ortant year for dam= ,hen he

encountered a !icyc"e in hi( favorite city ari(. >uch "ike the vie,ing of the (e,ing

machine= e" ,anted to !ui"d !icyc"e( and !egan !uying !icyc"e #art( from Eng"and. e"

hired mechanic( to in(#ect !icyc"e(= overhau" them= and then !egan (e""ing fu""y a((em!"ed

!icyc"e( the next year. he dam e" !icyc"e !u(ine(( ,a( off and #edd"ing.

dam ,a( the father to five (on( Jar"= 5i"he"m= ?einrich= 4redrich= and ud,ig. heya((i(ted their father in the !u(ine(( rode !icyc"e( race( ,hich had !egun to gain #o#u"arity in

ermany. heir exce""ent #erformance( (erved to make e" !icyc"e( a name kno,n

throughout Euro#e. e" ,a( one to introduce ne, techno"ogie( and !egan (e""ing hi(

!icyc"e( ,ith air- fi""ed tire( ,hich had !een invented !y an Eng"i(h man named /un"o# in

180. he com#any ,a( making 2=000 !icyc"e( a year= and !y the time dam died at age of

)7 in 18)= e" had a"ready e(ta!"i(hed it( #o(ition a( a ma'or manufacturer of (e,ing

machine( and !icyc"e(.

he 1)-year #eriod from 100 to the !eginning of 5or"d 5ar I ,a( marked !y ra#id gro,thG

e" !egan to #roduce it( o,n "ine of automo!i"e( in con'unction ,ith a 4rench com#any=

/arrac. he com#any ( four cy"inder engine( ,ere high"y #rai(ed and race car( eui##ed

,ith the(e engine( came out on to# in race(. he /octor 5agon ,a( a mode" aimed at the

genera" #u!"ic and a"(o e(ta!"i(hed a (o"id re#utation for e". e" a"(o (tarted the

deve"o#ment of engine( for motor!oat(= air#"ane(= motorcyc"e( and cu"tivator(.

In 111 a fire in the e" factory #rom#ted the com#any to c"o(e do,n. he (e,ing machine

divi(ion ,hich ,a(nFt doing too ,e"". he com#any reorganied the factory and !egan

making fire engine(. e"( drive to (ucceed and a!i"ity to ada#t to ada#t !ecame their

trademark(. By 11%= 'u(t #rior to 5or"d 5ar I= e" had !ecome the "arge(t automo!i"e

manufacturer in ermany ,ith an annua" #roduction of more than 3=000 unit(.


43/80

e"= "ike many car com#anie( ,a( forced to (hutdo,n ,hen the 5ar !roke out in 11%.

he com#any ,a( then ordered !y the mi"itary to !ui"d mi"itary truck(. e" continued to

deve"o# engine( for ne, #a((enger car( during the ,ar= a"" the ,hi"e (ati(fying the demand

!y the mi"itary for truck(. By the end of the ,ar= they had a"ready com#"eted a #rototy#e for

axi( cy"inder engine. 5i"he"m e" (tudied the (y(tem em#"oyed !y 4ord in the 6.S. and the

fir(t e" ma(( #roduced mode"= the Mau!fro(hM= ,a( "unched at "o, #rice of %=000 mark(.

By 128= the com#any had !ecome a giant in the auto indu(try #roducing more than %0=000

car( in one year.

It ,a( in 12 that e" decided to !ecome a mem!er of enera" >otor( grou# in the 6nited

State(. a num!er of rea(on( ,ere !ehind thi( deci(ion= fir(t ,a( the "arge vo"ume of

inex#en(ive 6.S. vehic"e( ,hich ,ere (tarting to f"o, into the erman marked. Second= ife" vo"untari"y 'oined the > grou#= they cou"d uti"ie the advanced techno"ogie( and

net,ork of the > ,ithout a!andon their origina" #o"icie( and #hi"o(o#hy. hu( dam e"

!egan on >arch 17= 12. In 13)= e" introduced the &"ym#ia ,hich had the fir(t

fir(ta""- (tee" mono cock#it in the 5or"d. hi( mode" ,a( extreme"y #o#u"ar.

SJ&/ 6& 9&>$H

In 18) 27-year( Cac"av J"ement and 30-year( Cac"av aurin had o#en the (ma"" ,ork(ho#under the trade name aurin J"ement to manufacture and re#air the !icyc"e(.

By modern (tandard( the(e enter#ri(e cou"d !e ca""ed a( fami"y one= !ecau(e on"y (ix

,orker( #erformed a"" #roduction. Be(ide( the founder( of the com#any them(e"ve(= their

,ive( and t,o friend( ,ere a((em!"ing and re#airing the !icyc"e(. he #roduction ,a(

organied at a high enough "eve" and the !icyc"e con(truction ,a( very (ucce((ive. "" the(e

en(ured the ua"ity. S"avia !icyc"e( !ecame in (ta!"e demand. ?aving ma(tered in !icyc"e

#roduction= the com#any !egan to #roduce motorcyc"e(. he(e t,o-,hee" machine( ,ere

de"ivered even in Eng"and= ,herea( in ermany it ,a( organied their manufacturing under

the "icen(e. In 10% J 9om#any had "aunched three-,hee" car that ,a( acce"erating u#

to %0 km*h. In 10) there ,a( (tarted the (eria" #roduction of (ma"" o#en car( Coiturette in


44/80

>"ada Bo"e("av. ,o-cy"inder= four-(troke engine ,ith 1 "iter of di(#"acement vo"ume had

deve"o#ed the #o,er of 7 h# and acce"erated the car the car to the (#eed u# to %0 km*h.

ro,ing demand reuired the increa(ed inve(tment( and in 107 aurin J"ement

9om#any had tran(formed into 'oint-(tock com#any under the management of J"ement

!eing the genera" director. In the (ame year J 9om#any !ecame the "arge(t car

manufacture in the u(tria-?ungary. Since the 4ir(t 5or"d 5ar the 9om#any ,a( reoriented

to the #roduction "ight truck( and... Se"f-#ro#e""ed #"ough(. It( #roduction ,a( ex#orted even

in (uch remote #"ace( a( >exico and Da#an. J dea"er( ,ere in >o(co,= Sankt-

eter(!urg= Jiev= +o(tov-on-/on= Smo"en(k= Sim#hero#o" and Baku. In 12) the merger

,ith Skoda 9om#any from i"(en had occurred. t the (ame time the com#act car Skoda %22

,a( #re(ented to the !uyer(. Intere(t technica" deci(ion( a##eared in the Skoda car( of thattime. 4or exam#"e= in the Skoda o#u"ar car "aunched in 13% the engine and c"utch ,ere

"ocated in front= ,herea( gear!ox and differentia" from the rear. Skoda 1101 udor ,a( the

fir(t car #roduced (ince the Second 5or"d 5ar. In 1)% Skoda %%0 had a##eared and it(

(ucce(( ,a( (u##orted !y Skoda &ctavia ;ne, &ctavia i( ca""ed in honor of itay 2000 the

enter#ri(e !ecame fu""y o,ned !y the Co"k(,agen 9om#any ;the "a(t 30 #er cent of (hare(


45/80

co(t a( much a( )0 mi""ion( of erman mark(ore than 00=000 of Skoda car( ,ere (o"d (ince that time. In

Se#tem!er 1 the #roduction of Skoda &ctavia car( ,a( !egun. It i( the fir(t car !ui"t on a

#"atform deve"o#ed !y the Co"k(,agen 9oncern.

In >arch 18 the rene,ed ver(ion( ;face-"ifting< of Skoda 4e"icia and Skoda 4e"icia 9om!i

mode"( and Skoda &ctavia 9om!i e(tate car ,ere #re(ented. oday= a!out 18=000 #er(on(

are ,orking at the Skoda uto enter#ri(e and the third #art of a"" ,orking #"ace( in the

9ech +e#u!"ic in either event are exi(ted due to the activity of thi( enter#ri(e. he mo(t #art

of the Skoda car( i( ex#orted #roviding a!out 8 of a"" ex#ort o#eration( of the 9ech

+e#u!"ic.

&H&

oyota >otor 9or#oration= Da#an= ,a( e(ta!"i(hed in 137 to manufacture and (e"" of car(

and #art( dome(tica""y. 5ith the vi(ion in ex#anding !u(ine(( to foreign countrie(= the

com#any had decided to choo(e hai"and a( the fir(t country for foreign inve(tment.

ening the fir(t car a((em!"y #"ant at $orth Samrong !y a((em!"ing 9J/ #art( ,ith

dome(tic one(. 9ar( ,hich ,ere fir(t a((em!"ed in hai"and ,ere oyota /yna DJ 170=

iara= Stout and u!"ica. oyota had achieved the a((em!"y of 10=000 car( at the fir(ta((em!"y #"ant. oyota (tarted to #rovide (cho"ar(hi#( to (tudent( of 9hu"a"ongkorn

6niver(ity and hamma(art 6niver(ity. ening the (econd a((em!"y #"ant at South

Samrong- erating the ,ater treatment #"ant ,ith an inve(tment of Baht 10 mi""ion. It ,a(

the fir(t car a((em!"y #"ant ,hich took ,ater #o""ution #ro!"em( into con(ideration. Starting

the a((em!"y of engine( for (a"oon car( at the fir(t a((em!"y #"ant. oyota= ,ith 'oint-

venture coo#eration ,ith Siam 9ement 9o.= td.= e(ta!"i(hed Siam oyota Indu(try 9o.= td.

;S>< ,ith a tota" regi(tered ca#ita" of Baht 1)0 mi""ion= to #roduce engine( for car

a((em!"ed dome(tica""y= and for ex#ort. he o#eration received #romotiona" #rivi"ege( from

the B&I. ening the third a((em!"y #"ant ,ith an inve(tment of Baht 1=00 mi""ion and

#roduction ca#acity of 100=000 car( #er year. It ,a( the mo(t modern and efficient a((em!"y

#"ant in (ian +egion. - Introducing Moyota 9oro""a "ti(A= car( ,ith & (afety !ody

(tructure.


46/80

+&4IE &4 ?E S>E 6$I

he re(earch i( an effort to (tudy the @>arket na"y(i( of "uxury car( in utomo!i"e indu(try

in Banga"ore 9ityA. (urvey of 100 (u!(cri!er( i( conducted in genera" to derive the

conc"u(ion= a( it i( very difficu"t to u(e the #ro!a!i"ity (am#"ing to (e"ect the re#re(entative

(am#"e. 4or the #ur#o(e of the (tudy age-grou# of re(#ondent( have c"a((ified into four

grou# (uch a( 21-30= 30-%)= %)-0 and 0 re(#ective"y.

Income of the re(#ondent( ha( !een c"a((ified into four grou#( 2)=000 - 3)=000= 3)=000-%)=000= a!ove %)=000 re(#ective"y.

&ccu#ation of the re(#ondent( ,ere c"a((ified into three grou#( (uch a( entre#reneur(=

em#"oyee(= and (e"f-em#"oyed re(#ective"y.


47/80

!N!LYSIS !ND INTERRET!TION

I$+&/69I&$ & $HSIS

fter ta!u"ating= the data mu(t !e ana"yed= re(earcher often u(e (tati(tica" inter#retation

,hich concentrate( on ,hat i( average or ,hat deviate( from an average. Stati(tica"

inter#retation= (ho,( ho, ,ide"y the re(#on(e vary and ho, they are di(tri!uted in re"ation

to the varia!"e= !eing mea(ured= (tati(tica" market re"y on e(timate( of ex#ected error( ordeviation from the t,o va"ue( of #o#u"ation. he ana"y(i( and inter#retation of data may "ead

the re(earcher to acce#t or re'ect the hy#othe(i( !eing (e"ected.

/ $HSIS &&S 6SE/

he #roce(( of arranging data into grou#( or c"a((e( according to re(em!"ance and

(imi"aritie( i( technica""y ca""ed c"a((ification.

9"a((ification i( the #roce(( of arranging the data into (euence( and grou#( according to

their common characteri(tic( or (e#arating them into different re"ated #art(.

he data can !e ca"cu"ated on the fo""o,ing four !a(e(

:uantitative- according to magnitude

eogra#hica"- according to city= di(trict= etc.

:ua"itative- ccording to attri!ute(

9hrono"ogica"- ccording to occurrence of event( in time

he c"a((ification ado#ted for thi( (tudy in uantitative and geogra#hica" c"a((ification.


48/80

1. Ta6le +ho/i%g =the age gro'p o< re+po%0e%t+>

Year+ No. o< re+po%0e%t+ Per-e%tage

21-30 3) 3)

30-%) %% %%

%)-0 1) 1)

0 a!ove

ota" 100 100

So'r-e: S'r7e, Data

I%terpretatio%:

hi( ta!"e (ho,( that ma'ority of re(#ondent( !e"ong to the age grou# !et,een 30-%) i.e.

%%= are of the age grou# 0 a!ove= 1) are of the age grou# !et,een %)-0 and the

re(t 3) are of the age grou# !et,een 21-30.

the a!e !rou4 of res4on%ents

(

2

7(

72'(

'2

8(

82

)(

)2

2(

'78( 8()2 )2+( +( above

Per#entage


49/80

2.Ta6le +ho/i%g =the o--'patio% o< the re+po%0e%t+>

O--'patio% No. o< re+po%0e%t+ Per-e%tage

Entre#reneurF( 30 30

Em#"oyee( 0 0

Se"f-em#"oyed 10 10

ota" 100 100

So'r-e: S'r7e, Data

I%terpretatio%:

>a'ority of re(#ondent( ,ere em#"oyee(i.e.0= 30 ,ere entre#reneur( and the re(t

10 ,ere (e"f Nem#"oyed.


50/80

the occu4ation of the res4on%ents

(

7(

'(

8(

)(

2(

+(

9(

5ntrepreneur:s 5mployees ;elf.employed

Per#entage

3.Ta6le +ho/i%g =the i%-o;e le7el o< the re+po%0e%t+>

I%-o;e No. o< re+po%0e%t+ Per-e%tage

2)=000-3)=000 13 13

3)=000-%)=000 %) %)

%)=000 !ove %2 %2

ota" 100 100

So'r-e: S'r7e, Data

I%terpretatio%:

>a'ority of re(#ondent( "ie( in the income "eve" 3)=000-%)=000 i.e. %)= 13 !et,een

2)=000-3)=000 the re(t %2 "ie( a!ove %)=000.


51/80

the inco"e le6el of the res4on%ents

(

2

7(

72

'(

'2

8(

82)(

)2

2(

'2"(((.82"((( 82"(((.)2"((( )2"((( Above

Per#entage

.Ta6le +ho/i%g =the %';6er o< people ha7i%g a -ar>

No. o< people ha7i%g a -ar No. o< re+po%0e%t+ Per-e%tage

He( 7 7

$o 21 21

ota" 100 100

So'r-e: S'r7e, Data

I%terpretatio%:

7 of the re(#ondent( have a car and the re(t 21 do not have a car.


52/80

the nu"$er of 4eo4le ha6in! a car

(

7(

'(

8(

)(

2(

+(9(

es No

Per#entage

". Ta6le +ho/i%g =the i%

I%


53/80

>a'ority of the re(#ondent( ,ere inf"uenced !y fami"y mem!er( to !y a car i.e. %0=

20 ,ere inf"uenced !y their ,ifeF(= 18 ,ere inf"uenced !y their chi"drenF(= ) each

,ere inf"uenced !y co""eague( and friend( re(#ective"y= 10,re ,ere inf"uenced !y

them(e"ve( and the re(t 2 ,ere inf"uenced !y the com#any.

the influence of 4ersons to $uy a car

(2

7(72'('28(82)()2

6amilymembers 1hildren 0ife 6r

iends

1olleagues

1ompany ;elf

Per#entage

. Ta6le +ho/i%g =the ;o0el o< -ar+ o/%e0 6, the re+po%0e%t+>

#o0el o< -ar+ o/%e0 6, the

re+po%0e%t+

No. o< re+po%0e%t+ Per-e%tage

E(teem 1% 18

Santro 10 13

4ord E(cort )

4ord Ikon 1 21

Indica 13 1

?onda 9ity )

ancer % )

tra 3 %

Skoda % )

ccent )

ota" 7 100

So'r-e: S'r7e, Data

I%terpretatio%:

hi( ta!"e (ho,( that the ma'oritie( of the re(#ondent( have 4ord Ikon and E(teem


54/80

the "o%el of cars o=ne% $y the

res4on%ents

(2

7(72'('2

5steem

;antro

6ord

6ord

Indi#a

4onda

?an#er

@ptra

;%oda

A##ent

Per#entage

4. Ta6le +ho/i%g =the +eg;e%t o< -ar+ pre

Seg;e%t o< -ar+ pre


55/80

the se!"ent of cars 4referre%

(

'(

)(

+(


56/80

the a=areness a$out %ifferent ty4e of luury

"o%els

(

7(

'(

8(

)(

2(

+(

9(

es No

Per#entage

. Ta6le +ho/i%g =the a7erage %';6er o< 8ilo;eter+ 0ri7e% 0ail,>

!7erage %';6er o

Co%0itio% o< 7ehi-le 0'ri%g

0eli7er,

No. o< re+po%0e%t+ Per-e%tage

oor 0 0

verage 11 1%

4air 21 27

ood 30 3

Exce""ent 17 20

ota" 7 100

So'r-e: S'r7e, Data

I%terpretatio%:


69/80

3 of the re(#ondent( rated the car dea"er ,ith re(#ect to condition of vehic"e during

de"ivery a( good= 27 fair= 1% average= 20 exce""ent= 0 #oor.

0on%ition of 6ehicle %urin! %eli6ery

(7('(8()(2(

Poor

Average6airBood

53#ellent

Per#entage

22. Ta6le +ho/i%g =the rati%g -ar 0ealer /ith re+pe-t to -'+to;er

ha%0li%g>

C'+to;er ha%0li%g No. o< re+po%0e%t+ Per-e%tage

oor 0 0

verage 12 1)

4air 21 27

ood 2 38

Exce""ent 17 20

ota" 7 100

So'r-e: S'r7e, Data

I%terpretatio%:


70/80

38 of the re(#ondent( rated the car dea"er ,ith re(#ect to cu(tomer hand"ing a( good=

27 fair= 1) average= 20 exce""ent= 0 #oor.

0usto"er han%lin!

(

7(

'(

8(

)(

PoorAverage 6air Bood

53#ellent

Per#entage

23. Ta6le +ho/i%g =the rati%g -ar 0ealer /ith re+pe-t to ?'alit, o

@'alit, o< +er7i-e No. o< re+po%0e%t+ Per-e%tage

oor 0 0

verage 12 1)

4air 1 2%

ood 31 %1

Exce""ent 17 20

ota" 7 100So'r-e: S'r7e, Data

I%terpretatio%:


71/80

%1 of the re(#ondent( rated the car dea"er ,ith re(#ect to ua"ity of (ervice a( good=

2% fair= 1) average= 20 exce""ent= 0 #oor.

>uality of ser6ice

(7('(8()(2(

Poor

Average 6air Bo

od

53#ellent

Per#entage

SU##!RY OF FINDINGS !ND SUGGESTIONS

CONCLUSION:

$othing= #erha#( nothing i.e. not od( creation= can !e #erfect in thi( ,or"d. >uch "e((= an

organiation ,hich i( nothing !ut a (um tota" of a"" it( #eo#"e= #eo#"e ,ith their "ike(=

di("ike( and varying ca#a!i"itie(. But an organiation can arrange it( activitie( in a manner

that ena!"e( it to #erform !etter than mo(t= achieve exce""ence in ,hat ever it i( doingG it ,i""

(ti"" have ,eakne(( and room for im#rovement. Since the ,or"d i( (ha#ing ra#id"y due to

techno"ogica" advancement( the cu(tomer need( and ,ant( are a"(o changing dra(tica""y (o=

thi( (tudy i( a"(o aimed at getting cu(tomer in(ight( into ,hat he*(he i( ex#ecting from the

"uxury (egment in the automo!i"e indu(try.

FINDINGS:

o (um u# ,e can (ee that

ma'ority of re(#ondent( !e"ong to the age grou# !et,een 30-%).


72/80

>a'ority of re(#ondent( ,ere em#"oyee(=(ome ,ere entre#reneur(;#er(on ,ho ha(

hi( o,n !u(ine(( and a"(o give( em#"oyment to other(< and a fe, ,ere (e"f

em#"oyed;#er(on ,ho ha( hi( o,n (ource of income=!ut doe( not em#"oy

other(.EgStock market !roker(a'ority of re(#ondent( "ie( in the income "eve" 3)=000-%)=000.

>a'ority of the re(#ondent( ,ere inf"uenced !y fami"y mem!er( to !uy a car.

>a'ority of the re(#ondent( have 4ord Ikon and E(teem.

80 of the re(#ondent( ,ere a,are of the different ty#e of "uxury car mode"(.

he gro,th in thi( (egment i( main"y due to the increa(e in the di(#o(a!"e income of

the #eo#"e.

he com#etition in thi( (egment i( on a high ,ith the increa(ing a,arene(( among(t

the con(umer(.

SUGGESTONS:

Spa-io'+%e++ he (#ace for the #eo#"e (itting at the rear (eat (hou"d !e increa(ed a(

it i( not comforta!"e at #re(ent and a"(o the (#ace for the "uggage ha( to !e increa(ed

a( many of them u(ed it for the "ong drive ;going for the ho"iday= re(ort(= etc. ,ith the

fami"y


73/80


74/80

(edan car( he government (hou"d come for,ard and encourage the auto manufacturer(

to #enetrate market( through removing dutie( and o#ening market( for #rivate "imited

com#anie( and deve"o#ing the infra(tructure .

he Indian automo!i"e indu(try i( gro,ing at a ra#id #ace and the economy of the country i(

much favora!"e to the indu(try and contri!uting to,ard( the gro,th of thi( Economy.

he automo!i"e indu(try ,a( a"ready giving one of the highe(t turnover(. he cu(tomer no,

had ,ide variety of car( to choo(e from. "" of the Indian auto giant( 'oined the trend.

4oreign com#anie( came in ,ith !ri""iant #roduct( for the Indian market(. 5hen eroed

do,n the u"timate #rogre(( ,a( (een in the "uxury car (egment. hi( (egment ,a( virtua""y a

non exi(tent (egment. 9ar( "ike >aruti Ba"eno= 4ord Ikon= 4ord 4ie(ta= 4ord u(can=?yundai ccent= 9hevro"et tra= oyota 9oro""a= ata Indigo= Skoda= >it(u!i(hi ancer=

?onda 9ity= $e, >ahindra Scor#io and udi. 5hen vie,ed at the #o(ition a"mo(t a"" the

com#anie( are giving the cu(tomer more or "e(( faci"itie( at com#etitive #rice(. "" the

#roduct( are a"mo(t (imi"ar technica""y and it i( hard to differentiate their attri!ute(. In (uch a

market environment the(e com#anie( have a#t"y ado#ted marketing (trategie( a( their too" to

carve in a hand(ome market (hare. Each com#any ha( taken u# #articu"ar a(#ect and ha(

ex#"oited it to convert the con(umer into a !uyer. /e(#ite a head (tart= the automotive

indu(try in India ha( not uite match u# to the #erformance of it( counter#art( in other #art(

of the ,or"d. he a""-#erva(ive regu"atory atmo(#here #revai"ing ti"" recent"y ha( !een one of

the #rimary rea(on( for thi( (ituation. he variou( "ayer( of ct( (o "ong (he"tered the

indu(try from interna" com#etition and re"ated it( deve"o#ment. >oreover= the indu(try ,a(

con(idered "o,-#riority a( car( ,ere thought of a( @unafforda!"e "uxuryA for the ma((e(.

5ith the (tudy ,e can get (ome (ugge(tion( from cu(tomer for (ervice im#rovement( in

term( of ua"ity and ,hat he*(he i( ex#ecting from the "uxury car( avai"a!"e and ,hich are

yet to !e introduced and to under(tand ,hat ne, feature( are !eing #rovided in the "uxury

car( (egment in the automo!i"e indu(try. In the (tudy ,e can find out the "eve"( of cu(tomer

(ati(faction .5e can a"(o identify the cau(e( for cu(tomer di((ati(faction "ike "ook(= (eating=

acce((orie(= interior(= (#are #art( and engine noi(e. he u(er( of "uxury car( are

geogra#hica""y ,ide (#read and hence contacting them i( time con(uming.


75/80

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ELIOGR!PHY

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niloy rajbangshi 04vwcm6054 (2)

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