INTRODUCTION

AUTOMOBILE INDUSTRY
One of the greatest creations of man, the "Automotive Car" or popularly known as "Car" is a
result of man's consistent efforts and perseverance. Over the years, the automobile industry
has evolved as one of the main revenue generators, provider of employment and has
progressed immensely.
Automobile can be basically defined as a self-propelled vehicle used primarily on public
roads but adaptable to other surfaces. The concept of automobiles was developed form a
horse carriage. Automobiles changed the world during the 20th century. From the growth of
suburbs to the development of roads and highway systems, these so-called horseless
carriages has forever altered the modern landscape. Automobiles have brought about greater
mobility and also have opened up a new source of job creation. We live in the Age of
Automobiles, and they will no doubt continue to shape our culture, economy and thus keep
on enriching our lifestyles in the future.
Size, style, number of doors, and intended use can classify automobiles. The typical
automobile, also called a car, motorcar, passenger car, has four wheels and can carry up to six
people, including the driver. Larger vehicles designed to carry more passengers are called
vans or buses. Those used for carrying cargo are called pickups or trucks depending upon
their size and design. Minivans are van-style vehicles built on a passenger car platform that
usually carryupto eight passengers.

The cars are basically classified by their body structure and utility as follows A normal or basic passenger car having four doors is called a Sedan, which depicts its shape.
A hatchback is a sedan but with a compact boot. Sport-utility vehicles, also known as SUVs,
are more rugged than passenger cars and are designed for driving in mud or snow. A coupe is
usually a two-door sedan with a sloping roofline. A convertible is a sedan, hatchback or
coupe whose roof can be retracted. Convertibles having two seats including driver are also
called roadsters. Multi-utility vehicles, also known as MUVs are vehicles similar to SUVs
but less rugged. They are concentrated more on passenger seating and comfort thus are
shorter and longer than SUVs.
The engineering that helps function a vehicle areDrive train and chassis, Engine, Steering,
Suspension, Safety parts and electronics.Chassis is an internal framework that supports the
vehicle.The under part of a chassis consists of the frame (on which the body is mounted)
with the wheels and machinery. Engine is a motor that powers the car. Steering is a type of
control that helps to direct the car depending upon the driver input. Suspension is a set of
springs, shock absorbers and linkages that serves as a dual purpose - contributing to the
vehicle's road handling and braking for safety and driving pleasure, and keeping vehicle
occupants comfortable and isolated from road noise, bumps, and vibrations,etc. Safety parts
include doors, bumpers, bonnet, hood, etc. which helps in providing safety to the occupants.
And electronics are the vehicles lighting, (Engine Control Unit) ECUs etc.
Thus an Automobile is a complex piece of engineering that has made our lives more mobile
and luxurious. Automobiles have gone through tremendous changes since the time they were
introduced. Today automobiles are not only considered as a means of transport but also as a
status symbol that enhances ones personality.

Automobile industry is a symbol of technical marvel by human kind. Being one of the fastest
growing sectors in the world its dynamic growth phases are explained by nature of
competition, product life cycle and consumer demand. Today, the global automobile industry
is concerned with consumer demands for styling, safety, and comfort; and with labor
relations and manufacturing efficiency. The industry is at the crossroads with global mergers
and relocation of production centers to emerging developing economies.
Due to its deep forward and backward linkages with several key segments of the economy,
the automobile industry is having a strong multiplier effect on the growth of a country and
hence is capable of being the driver of economic growth. It plays a major catalytic role in
developing transport sector in one hand and help industrial sector on the other to grow faster
and thereby generate a significant employment opportunities. Also as many countries are
opening the land border for trade and developing international road links, the contribution of
automobile sector in increasing exports and imports will be significantly high. As automobile
industry is becoming more and more standardized, the level of competition is increasing and
production base of most of auto-giant companies are being shifted from the developed
countries to developing countries to take the advantage of low cost of production. Thus,
many developing countries are making serious efforts to grab these opportunities that include
many Asian countries such as India, Thailand, China, and Indonesia.

Background of Automobile Industry

The automobiles industry for many years operated in a seller's market. In such a
scenario the manufacturer could offer outdated models and also raise prices at
will. Little or no attempt was made to control costs or to offer new products. Lack
of innovation restricted the consumers options to the models offered by these
companies.
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The number of manufacturers (domestic and foreign) increased dramatically after

the de-licensing of the sector. Increased competition has forced companies to
focus on cutting costs, improve technology and styling through research. It has
also constrained them to limit price increases.

Availability of easy credit facilities also resulted in creating demand for

automobiles. The car financing market has boomed from a turnover of Rs 7,000
m in FY95 to nearly Rs 35,000 m in FY97.

Structure
The Indian automobile industry can be broadly classified into:
2 /3 Wheelers
Passenger Cars
Commercial Vehicles (LCV/HCV/MCV)
UV (Utility vehicles)
Tractors

The models in the car market can be fitted to different segments as given below:

Category

Models

Economy segment (uptoRs 0.25mn)

Maruti Omni, Maruti 800 etc.

Mid-size segment (Rs 0.25-0.45 mn)

Fiat Uno, Hyundai Santro, tataIndica,

Luxury car segment (Rs 0.45- 1mn)

Maruti Alto etc.

Tata Indigo, Honda City, Mitsibushi
Lancer, Ford Ikon, Opel Astra, Hyundai

Super luxury segment (above Rs 1mn)

Accent & others

Mercedes Benz & other imported models

The economy segment has a very large foothold over the Indian automobile market as
compared to the mid-size and luxury segment.
Segment
Economy
Mid-size and luxury

Market Share (%)

90.2
9.8

Source: SIAM/ Auto Car India

Increased urbanization, low pricing policies, improvement in products and technology
have fuelled demand for 4-wheelers. The markets are clearly segmented between
economy models and premium models. The easy availability of finance and increased
levels of disposable incomes has led to higher demand for premium models. Rural areas
have also become an exciting market to cater to.
The growth of the economy has also resulted in a shift in consumer preferences in each
of the segment. Gradual shift can be seen in buyers from mopeds to economy scooters,
from economy scooters to premium and from premium to motorcycles
Figure -Structure of Passenger Vehicle Market (India)

Trends in Passenger Car / Utility Vehicle Sales

The passenger car segment has seen rapid growth on the back of rise in disposable
income, increased availability of consumer finance, and reduction in excise and customs
duties. Post-1991, this segment has seen maximum foreign investment. There is a clear
segmentation of passenger cars based on price and size. While the lower and medium
range cars (Maruti, Ford, Cielo) have been moderately successful, luxury cars such as
Mercedes have found the going tough.
The CV segment is directly linked to industrial production and foreign trade and is
therefore subject to cyclical fluctuations of the economy. The demand for CVs is related
to growth in movement of goods transported and freight rate levels, both of which are
linked to level of production.

Commercial Vehicle Sales Growth v/s IIP Growth

HISTORY OF INDIAN AUTOMOBILES

Indian automobile industry has grown heaps and bounds since 1898, a time when a car
had touched the Indian streets for the first time. The beginnings of automotive industry in
India can be traced during 1940s. After the nation became independent in the year 1947,
the Indian Government and the private sector launched their efforts to establish an
automotive component manufacturing industry to meet the needs of the automobile
industry. The growth of this segment was however not so encouraging in the initial stage
and through the 1950s and 1960s on account of nationalization combined with the license
raj that was hampering the private sector in the country. However, the period that
followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and
commercial vehicles. Even till those days, cars were something of a sort of a major
luxury. Eventually, the country saw the entry of Japanese manufacturers establishing
MarutiUdyog. During the period that followed, several foreign-based companies started
joint ventures with Indian companies.
During 1980s, several Japanese manufacturers started joint ventures for manufacturing
motorcycles and light commercial vehicles. During this time, that the Indian government
selected Suzuki for a joint venture to produce small cars. Following the economic
liberalization in 1991 and the weakening of the license raj, several Indian and multinational car companies launched their operations on the soil. After this, automotive
component and automobile manufacturing growth remarkably speed-up to meet the
demands of domestic and export needs.
Experts have an opinion that during the early stages the policies and the treatment by the
Indian government were not favorable to the development of the automobile industry.
However, the liberalization policy and various tax reliefs announced by the Indian
government over the recent past have pronounced a significantly encouraging impact on
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this industry segment. Estimates reveal that owing to several boosting factors, Indian
automobile industry has been growing at a pace of about 18% per year. Therefore, global
automobile giants like Volvo, General Motors and Ford have started looking at India as a
prospective hot destination to establish and expand their operations. The economic
liberalization that dawned in India in the year 1991 has succeeded in bringing about a
sustained growth in the automotive production sector triggered by enhanced
competitiveness and relaxed restrictions prevailing in the Indian soil. A number of Indian
automobile manufacturers including Tata Motors, Maruti Suzuki and Mahindra and
Mahindra, have dramatically expanded both their domestic and international operations.
The countrys active economic growth has paved a solid road to the further expansion of
its domestic automobile market. This segment has in fact invited a huge amount of Indiaspecific investment by a number of multinational automobile manufacturers. As a
significant milestone in its progress, the monthly sales of passenger cars in India
exceeded 100,000 units in February 2009.
Like many other nations Indias highly developed transportation system has played a
very important role in the development of the countrys economy over the past to this
day. One can say that the automobile industry in the country has occupied a solid space in
the platform of Indian economy. Empowered by its present growth, today the automobile
industry in the country can produce a diverse range of vehicles under three broad
categories namely cars, two-wheelers and heavy vehicles. The automobile sector in India
has always been largely influenced by government reforms. In 1991, the congress led
government launched a comprehensive reforms program that changed the economic
scenario for ever.
Prior to 1991; the investment in the backbone sectors such as heavy, basic & capital
goods were reserved for the government alone and were referred to as the Public Sector.

Also one very interesting thing to be seen with the Indian automobile industry is that
during the early days of the license raj and even some time after the 1991 reforms were
introduced; cars were still an instrument of luxury for the average Indian; but after this
Cars have only become more and more affordable to the average Indian and thus cars are
now becoming a necessity and this goes a long way in determining what type of cars to
introduce in the Indian market.
India has emerged as one of the world's largest manufacturers of small cars. In 2008,
Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to
export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General
Motors announced its plans to export about 50,000 cars manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to setup a plant in India with an
annual capacity of 250,000 cars for US$500 million. Tata Motors has been focusing on
the export market in recent years and apart from South Africa it has been exporting to
some other African countries, Europe, Middle East and in the Asian markets.
Auto industry has gone through a critical transformation since the last two decades with
startling designs and state of the art innovations. It is anticipated that automotive industry
has got at its zenith with extraordinary & numerous designs and brands in the market.
The key global auto players like the Audi, the Hyundai, the Nissan, the Toyota, the Ford
and many more have turned the auto world upside down with their perpetual changes in
the technology of auto manufacturing. The craze for car collection, makes people go to
any extent in order to procure a car of their own choice, and they can even import cars
from overseas and are willing to pay all types of duties and taxes.
Globalization of the industry and a tremendous jump in the sales & production in the
developing countries besides promising market in the developed nations have

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transformed the facets of the auto mobile industry. Innovation in the auto industry is
something pre-requisite, that is accelerating, because auto-makers are not only concerned
about present models but also conceiving the idea of designing the future cars. Top carmakers are slated to take a resort to supercomputing technologies in order to conduct
research focused at developing pollution free and less fuel consuming vehicles, and
lowering CO2 emissions, enhancing safety and cost efficiency. All these innovations &
technologies make automotive industry remain evergreen.
Demand for utility vehicles and tractors come from rural India. These vehicles have
witnessed steady demand growth over the past few years due to successive monsoons,
better procurement prices, improved irrigation facilities, and availability of finance.
A strong in-house R&D capability allows a manufacturer to develop and introduce
products at lower prices, thus saving costs of importing technology. However, Indian
companies spend very little on R&D.
Availability of quality components is another factor that determines smooth production
without bottlenecks. High rejection rate of auto components has prompted several global
majors like Ford, to get their international suppliers
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time. Oliver Evans was the first to design a steam engine
driven automobile

in

U.S.

A Scotsman, Robert Anderson, was the first to invent an electric carriage between
1832 and 1839. However, Thomas Davenport of the U.S.A. and Scotsman Robert Davidson

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were amongst the first to invent more applicable automobiles, making use of nonrechargeable electric batteries in 1842. Development of roads made travelling comfortable
and as a result, the short ranged, electric battery driven automobiles were no more the best
option for travelling over longer

distances.

The Automobile Industry finally came of age with Henry Hyundai in 1914 for the
bulk production of cars. This lead to the development of the industry and it first begun in the
assembly lines of his car factory. The several methods adopted by Hyundai, made the new
invention (that is, the car) popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the

automobile markets around the globe with no notable competitors. However, after the end of
the Second World War in 1945, the Automobile Industry of other technologically advanced
nations such as Japan and certain European nations gained momentum and within a very
short period, beginning in the early 1980s, the U.S Automobile Industry was flooded with
foreign automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil, have
been consistently registering higher growth rates every passing year for their flourishing
domestic automobile markets.

Automobile Industry Trends

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In keeping with the Automobile Industry Trends, the leading automobile

manufacturers are turning to the Asian markets that appear set to grow immensely over the
next decade. The automobile markets in the U.S., Europe and the Japan have almost matured
as a result of saturation and appear set to decline through the next decade. In contrast, the
automobile markets spread over the entire Asian continent (with the exception of Japan), are
constantly increasing in size and will be the destination for most of the globally leading
automobile manufacturers.
The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their huge population
growth rate, to add to the growing national economy of these two nations.
The rapid growth of the national economy of the BRIC countries (including Brazil,
Russia, India, and China) has enabled a growing section of the population of these countries
to purchase automobiles. Global surveys conducted recently reveal that within the next ten
years, these emerging automobile markets will account for nearly a whooping 90 percent of
the global automobile sales growth. As a result of this, leading Automobile manufacturers of
the world are setting up factories in the emerging markets, in order to serve the potential
consumers better as well as reduce manufacturing and shipping costs. In addition, these
arrangements are enabling the leading global automobile manufacturers to compete with the
local automobile manufacturers, which were flourishing in the absence of quality
competition.

The prosperity of the national economy is reflected in the rising per capita

income of the developing nations. Therefore, increasing Gross Domestic Product and per
capita income have raised the purchasing ability of the population that constitutes these
emerging markets..

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SWOT ANALYSIS OF INDIAN AUTOMOBILE INDUSTRY

Strengths

Domestic Market is large

Government provides monetary assistance for manufacturing units
Reduced Labor cost

Weaknesses

Infrastructural setbacks
Low productivity
Too many taxes levied by government increase the cost of production
Low investments in Research and Development

Opportunities

Reduction in Excise duty

Rural demand is rising
Income level is at a constant increase

Threats

Increasing rates of interest

Too much competition
Rising cost of raw materials

INDIAN MARKET CHALLENGES

In addition to its many opportunities, the Indian automotive industry presents challenges for
all players. Political and economic stability in India and stable global financial markets are
the keys to meeting predicted growth rates; however, stability has been hard to come by.
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Global Economic Crisis

For the short term at least, the global economic crisis has slowed Indias economy and the
commercial vehicle market. The medium and heavy commercial vehicle markets havebeen
affected more than light commercial vehicles. Consumer lending has been severely affected.
Although interest rates have been reduced, the percentage of loan approvals has also
declined. Customer trade-downs mean lower trim levels and lower-end models.
Despite all this, the four-wheel passenger vehicle market is expected to reach approximately
6 percent
growth, far below the historic 14 percent CAGR, but a healthy level nonetheless. As noted
above, the news is not so good for the commercial vehicle sectorsales are expected
to decline by 35 percent for FY09. With support for financing from the government, sales
should recoverin FY10. The two-wheeler segment has shown some resistance to the global
crisis; however, in a broader market collapse, this segment will suffer as well.

Commodity Prices
As discussed, the two-wheeler industry faces homegrown competition from ultra-low-cost
cars priced at $2,500 and less. A return to high steel prices will challenge these inexpensive
four- wheelers. Manufacturers have little option but to pass cost hikes on to low-wage
consumers. Oil and other commodity price increases will also challenge the four-wheel
passenger market. Commodity prices may be depressed in a slowing worldwide economy,
but theyre in for another rapid rise once global economic growth recovers.

Infrastructure and Technology

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If India is to achieve the full potential offered by motor vehicle industry growth, it must
address several challenges. Emissions and safety standards in India are not up to European or
North American standards; without reform in these areas, India wont be taken seriously as a
vehicle exporter. At the same time, the commercial vehicle industry in India faces legislation
that would mandate anti-lock braking (ABS) and anti-skid technologies; with a high
personal-ownership rate for commercial vehicles, it will be difficult to pass on the increased
cost of such safety mandates to price-sensitive consumers.
Infrastructure development in India must keep pace with the growth of small cars on the
road. Impediments to the construction of the Golden Quadrilateral, the highway connecting
the countrys major metropolitan cities in a giant ring, would directly affect commercial
segment sales. Currently India has only 3,700 miles of highway, compared to 25,000 miles in
China and 46,000 miles in the United States. Given this underdevelopment in infrastructure,
India needs to redefine the normal commercial truck pyramid by emphasizing sales of small
and light commercial vehicles.

AUTOMOBILE MARKETING IN INDIA

The competitive nature of the automobile industry has prompted the companies to take up
new and innovative marketing strategies to survive the competition. The luxury segment of
cars is the segment, which sees maximum competition as the consumer has a number of
models to choose from and it's the volumes, which drive the margins.
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All the companies as a part of their marketing strategy offers a range of vehicles in all the
segment to make sure that the customer is driving one of their vehicles only.
Advertisements on the audiovisual medium are a rage as it gives the carmakers an
opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it
comes to the finer prints of the cars, print and online media comes to the rescue.
The online medium offers a greater flexibility to the car companies since they come with a
lot of interactive features like demonstrating the interiors of the car with its salient features.
The print medium on the other hand provides an opportunity to the car makers to explain the
function of a car in detail.
Celebrity endorsements and testimonial advertisements have come a long way and they are
also doing their bit to sell the cars. Super star Shahrukh Khan has been associated with
Hyundai Motor Company for a long time and he comes regularly on television to promote
the cars. Similarly Ford has roped in Junior Bachan for the promotion of the latest offering
from the company. On a similar note Saif Ali Khan and Rani Mukherjee is shown chasing
each other with a Chevrolet.
Aamir Khan who is considered to be one of the most talented actors in the industry is
frequently seen changing roles on screen to promote Toyota.Cricketers haven't been left
behind in the race of promoting cars. Fiat had received a great thrust when the batting
maestro Sachin Tendulkar took up the promotion of the car. In addition to the publicity and
advertisement that is done by the companies there are certain innovative strategies that are
taken up by the companies to beat the competition from time to time.

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The India Automobile Market is a promising industrial sector that is growing

immensely every passing year. The passenger cars are referred to, through the use of the
word "automobile." The whooping growth experienced by the Indian Automobile Market in
the last financial year itself that is the financial year end in February, 2011 was very close to
a 38 percent over the previous fiscal. This statistical fact is a glittering example of the
potential of the growing Automobile Industry in India.
As per the survey conducted by the Society of Indian Automobile Manufacturers,
the total number of automobiles manufactured by the Automobile Industry in India,

throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin.
The huge of number of automobiles manufactured by the Automobile Industry in India was
an enormous growth upon the number of automobiles manufactured during the previous
fiscal that ended in 2010.
The total number of cars that were exported from India was very close to the 5.0 lakh
(5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India.
The export of cars manufactured in India comprised nearly 33 percent of the total number of
cars manufactured domestically by the Automobile Industry in India.
The India Automobile Market looks set to prosper, largely due to the growing market for
automobiles that is developing in India. In the financial year that ended in February, 2009,
the Indian automobile markets were the fastest growing in the world, with the registered
growth rate touching nearly 20 percent.
The Automobile Industry in India mainly comprises of the small car section, which
enjoys nearly a 2/3rd market share of the entire market for automobiles in India. In this
respect, the Indian markets are the largest in the world for small cars, behind Japan.
The Indian passenger car market which ranks amongst the largest in the world, is

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poised to become even larger and enter the top five passenger car markets in the world in the
next decade.
Following India's growing openness, the arrival of new and existing models, easy
availability of finance at relatively low rate of interest and price discounts offered by the
dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the
Indian automobile industry.
The data obtained from ministry of commerce and industry, shows high growth obtained
since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05.
Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was
15.1 per cent.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile
industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is
estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

Auto policy of the Government of India

VISION

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To establish a globally competitive automotive industry in India and to double its

contribution to the economy by 2010.

POLICY OBJECTIVES
This policy aims to promote integrated, phased, enduring and self-sustained growth of the
Indian automotive industry. The objectives are to:

Exalt the sector as a lever of industrial growth and employment and to achieve a high
degree of value addition in the country;

Promote a globally competitive automotive industry and emerge as a global source

for auto components;

Establish an international hub for manufacturing small, affordable passenger cars and
a key center for manufacturing Tractors and Two-wheelers in the world;

Ensure a balanced transition to open trade at a minimal risk to the Indian economy
and local industry;

Conduce incessant modernization of the industry and facilitate indigenous design,

research and development;

Steer India's software industry into automotive technology;

Assist development of vehicles propelled by alternate energy sources;

Development of domestic safety and environmental standards at par with

international standards.

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SIAM welcomed the announcement of Auto Policy, and feels that the policy would serve as a
reference document for all stake holders and other interested parties.
The Auto Policy has spelt out the direction of growth for the auto sector in India and
addresses most concerns of the automobile sector, includingPromotion of R&D in the automotive sector to ensure continuous technology

upgradation, building better designing capacities to remain competitive;

Impetus to Alternative Fuel Vehicles through appropriate long term fiscal structure to
facilitate their acceptance;

Emphasis on low emission fuel auto technologies and availability of appropriate auto
fuels and encouragement to construction of safer bus/truck bodies - subjecting
unorganised sector also to 16% excise duty on body building activity as in case of
OEMs

The policy has rightly recognised the need for modernising the parc profile of vehicles to
arrest degradation of air quality.
SIAM has always been advocating encouragement of value addition within the country
against mere trading activity. However, this aspect has not been fully addressed. The Auto
Policy allows automatic approval for foreign equity investment upto 100% in the automotive
sector and does not lay down any minimum investment criteria.
The recommendation of promoting passenger cars of length upto 3.8 meters through excise
benefits is not in line with the free market concept and may lead to market distortion.

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However, with the Auto Policy in place, the automotive industry would get further fillip to
become vibrant and globally competitive. The industry would get the required support from
other Ministries and departments of Government of India in achieving the goals laid down in
the auto policy.

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Role of Government in Automobile Industry

The government is making efforts to overcome the constraints at their research
centers for automobile industry. India can also learn from countries like Japan that are
already using these technologies for a wide number of applications. The Indian auto industry
should launch programmes for market development and a wider acceptance of alternative
energy-driven vehicles in India. It should also work in tandem with the government to make
India a world leader in this area.
Indian automobile industry is also consistently trying to meet the emerging
challenges of environmental pollution and better safety standard. According to a study,
automobile exhaust contributes more than 60% of the atmospheric pollution in metropolitan
cities, with the growing number of vehicles, the pollution in the cities is continuously
increasing. Government initiated controls by notifying emission standard from the year 1992
under which were furthers tightened in April 1996 under the Motor Vehicles Act. Euro-I
emission norms have already been made applicable throughout the country and Indian is
poised to induct Euro-II norms across the country by April 2005. Form that date 7
metropolitan cities are going to switch over to EuroIII norms. To meet this emerging
challenges of newer emission norms Indian automobile industry has already braced itself up
with new investment and fresh technological induction.
With the growing number of vehicles, the pollution in the cities is ever increasing.
Government initiated controls by notifying emission standards from the year 1992 which
were further tightened under the Motor Vehicle Act. For meeting these norms, unleaded

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petrol was also introduced in metropolitan cities from 1995, which enabled fitments of
catalytic convertors on new petrol driven vehicles. The norms are being further tightened
from April,2000 when Indias stage one norm equivalent to Euro-I will become effective. For
2-wheelers, India has announced one of the tightest norms in the entire world. In the national
capital territory region of Delhi, Indias stage 2 norms equivalent to Euro-II norms, will be
effective from April, 2000, as per the order of Honble Supreme Court. This would apply to
passenger cars.
The government seems most keen to hand over a huge replacement market on a
platter to the automobile industry without ensuring that manufacturers take responsibility of
the emission performance of the vehicles they produce for its useful life. In fact the most
important action point that was recorded after the ministerial consultation was that
manufacturers would have to give emissions warranty for two- wheelers from But ultimately,
the government could not muster enough courage to push the mighty automobile industry
and enforce it.
Government will encourage and assist establishment of specialized training institutes
for the automobile sector through the active association of interested automobile industries.
These institutes will be set up in Bidadi Industrial area and Dharwad Growth center. The
Institute will be managed by the participating automobile industries and will train skilled
category of auto workers, in specified skill areas such as painting, welding, auto mechanical,
etc. It also is making an effort abe to enlist the support of multilateral aid institutions to
provide part of the funding for this project, which promises tremendous environmentimprovement benefits for the vehicle, which create pollution.
The policy of broadbanding capacities in the eighties led to increased utilization of
capacity for four-wheelers in the industry.

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The liberal policy on foreign participation through technical and financial

collaboration in early eighties led to substantial product upgradation and introduction of new
models. But it was alleged that the policy was discriminatory in favor of MUL, while others
like Telco, PAL, HM were denied permission to produce cars in collaboration with Japanese
companies.
The GOI controls the car sector by way of framing policies on depreciation norms,
import duty on cars and parts used in it, petrol prices and import duty of steel.
During the era of socialist inspired controls, the government protected the car
industry from new entrants by making effective use of licenses. However, after liberalization
and with the consequent opening up of the auto sector in 1992-93, the license raj ceased to
exist .
The perception of a car as a luxury good lead to heavy excise duty on cars. The excise duty
doubled from 25% in FY87 to 55% in FY91. Till 1987, the GOI followed a discriminatory
policy so as to charge lower duty on fuel efficient car with engine capacity of less than
1000cc. This helped MUL to price its car at a lower price in comparison to others. But with
lobbying from PAL and HM government withdrew the provision in 1987.
But with the onset of the liberalization process in the early nineties, the government
has continually rationalized the excise duty regime. Presently, there is a duty of 40% (16% +
24%) on motor vehicles, designed for transport of not more than six persons (excluding the
driver). On vehicles designed for transport of more than six persons, but not more than 12
persons, the duty is 32% (16% + 16%). Over and above the excise duty, cess by the Central
Government, states are now charging a uniform sales tax of 12%. This came in being after

25

the 15th of May 2000. Earlier, states used to charge sales tax varying from 3 to 14%. But
MUL vehicles receive favorable treatment in terms of sales tax as well.

In line with its treatment for luxury items import duties for car have been maintained high.
In the 80's, import duties varied between 150 to 200% based on the engine capacity of a car.
The import duty on cars and components has come down in the last few years in line with
general reduction in import tariffs. In the FY98 budget, the import duty on cars has also been
further brought down from 50% to 40% ad valorem. Substantial reduction in import duty has
been extended in the budget FY98 for import of certain items which would help the industry
to reduce the emission level of vehicles. The import duty on catalytic converters and parts
thereof has been reduced from 25% to 5%. The duty on CNG kits and parts thereof have
been reduced from 10% to 5%.
The import duty on auto components will be a key factor in deciding the final
pricing of cars as new ventures start with about 50% indigenisation levels. The reduction in
import duty on steel in the last few years has helped the industry in reducing raw material
costs as major steel requirement of car industry was imported. Even today, all CKD/SKD
imports include metal pressed body panels.

26

MAJOR PLAYERS IN AUTOMOBILE SECTOR

MarutiUdyog Ltd.
December 1983 heralded a revolution in the Indian car industry. Maruti collaborated with
Suzuki of Japan to produce the first affordable car for the average Indian. At this time, the
Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending
1983. This was from where Maruti took over.
Nineteen years back Maruti introduced the first small car in the Indian auto market. They
started with their model Maruti 800 which was very popular at that time and still its major
cash cow. The models, which were available at that time, were Premier Padmini and
Ambassador. Customers were interested in having some different types of models with some
fashionable looks. That was the perfect time to enter into market and Maruti took right step
to introduce its different models.
Maruti established its monopoly over Indian auto market India's largest automobile company,
Maruti entered the Indian car market with the avowed aim to provide high quality, fuel efficient, low - cost vehicles. Its cars operate on Japanese technology, adapted to Indian
conditions and Indian car users. Maruti comes in a variety of models in the small segment.
The sales figure for the year 1993 reached up to 1,96,820. The company reached a total
production of one million vehicles in March 1994 becoming the first Indian Company to
cross this milestone. It crossed the two million mark in 1997.

27

To fend off growing competition, Maruti has recently completed a Rs. 4 billion expansion
project at the current site, which has increased the total production capacity to over 3,20,000
vehicles per annum. It has further plans to modernize the existing facilities and to expand its
capacity by 1,00,000 units in the year 1998-99. The total production of the company will
exceed 4,00,000 vehicles per year.
Maruti registered sales of 39,838 units in April 2004, up 38.4% yoy from 28,793 vehicle
units in April 2003. This includes 2,910 units of exports compared to 3,150 in April 2003,
decreasing by 7.6%.
Sales for April 2014:

% change
Segment

A1

Models

April

April

April'13

2014

2013

March'14

M800
11,097 10,741

A2

A3

MUV

3.3%

167,561

Omni, Versa
4,816

3,972

21.2%

59,526

19,296

9,668

99.6%

176,132

1,313

952

37.9%

14,173

406

310

31.0%

3,555

36,928 25,643

44.0%

420,947

-7.6%

51,175

Alto, WagonR, Zen

Baleno, Esteem

Gypsy, Vitara

Domestic

Export
2,910

3,150

28

Total Sales
39,838 28,793

38.4%

472,122

The A1 segment has grown by 3.3% yoy from 10,741 units in April 2003 to 11,097 units.
This is lower compared to some of its other segments. The A2 segment comprising of the
Alto, WagonR and Zen registered a 100% growth from 9,668 units in April 2003 to 19,296
units, mainly driven by rising Alto sales. The A3 segment has grown by 38% yoy to 1,313 in
April 2004 from 952 in the same period last year.
The C segment comprising of the Omni and the Versa has shown a 21.2% growth yoy from
3,972 in the same period last year to 4,816.
In the multi utility vehicle (MUV) comprising Gypsy and Vitara, it sold 406 units in April
2014 from 310 units in April 2013, a rise of 31% yoy.

Models of MUL
Alto
Maruti 800
Zen
Wagon R
Omni
Esteem
Baleno

Hyundai: Can The Dream Run Continue?

29

Hyundai has become the undisputed number two in the Indian auto market, and the only
one -- even rivals admit -- with the capability of giving leader Maruti a run for its money
in the total volume stakes though Hyundai in India currently sells just about a quarter of
the numbers that Maruti does.
Hyundai got everything right because it got the value-price-technology equation almost
perfectly right from day one. The Santro was an instant winner from the day it was
introduced in the Indian market because it offered the optimum mix of space and
technology in the small car market, at a highly competitive price. And with easy consumer
financing available in the market, Hyundai did not have to work too hard to persuade even
entry-level car buyers to go for the Santro instead of the Maruti 800. And when it
launched mid-size Accent some time later, Hyundai proved that it could get its value-price
equation consistently right across different segments.
But despite its great start, Hyundai made two mistakes. The two miscalculations that
Hyundai made? First, while Hyundai Santro was harping on the fact that it was a new
generation car, it hadn't brought its latest engine technology to India. It was a mistake that
rival Matizcapitalised on once Euro-II pollution norms were announced for the metros.
Daewoo made most of the fact that every Matiz was Euro-II complaint -- while Hyundai
could offer an Euro-II version only at a higher price. Though the latter moved quickly in a
damage-control exercise, the Santro did lose a bit of its sheen. it miscalculated demand for
its cars. The result: when demand peaked for the Santro, it was in no position to offer the
car off-the-shelf like its rivals. Buyers had to wait for three months to get a Santro after
booking it.
Hyundai is moving fast to sort out its capacity problem. Work will soon start on the
second phase of its Sriperumbudur car project, one year ahead of what was initially
planned. An additional investment of $400 million will help expand capacity from 1.2
30

lakh cars to 2 lakh cars per annum. This expansion is likely to be completed by December,
2001, ahead of schedule. But even that could be a bit too late as it gives rivals that much
time to grab sales that would otherwise have gone to Hyundai.
That apart, the big worry for Hyundai is that other than the Santro (the Atos in Korea), it
doesn't have any other small car in its armoury. Unlike Suzuki, which is primarily a small
car specialist, Hyundai can only introduce bigger cars in the Indian market either from its
own product range, or those of Kia Motors, which it took over last year.
Hyundai is looking a bit vulnerable now because globally it is a minnow in the car market.
It lacks the sheer money power and product muscle to keep fighting the Fords and GMs in
any market. And if Ford does take over Daewoo Motors, Hyundai's number two position
in India could be seriously under threat.

Hindustan Motors
Hindustan Motors Ltd (HML) is the oldest passenger car manufacturer in the country. It also
has a small presence in the multi-utility vehicle and the heavy commercial vehicle segments.
The later is generally manufactured for exports. Other than the automotive sector, the
company has diversified into earth moving equipments and power products. In the passenger
car segment, the company has the well known Ambassador and Contessa models. It has
recently tied with Mitsubishi of Japan for manufacturing the Lancer range of cars. At
present, the company has a market share of 4.2% in the car segment.
HML, incorporated in 1942, is the flagship company of the C.K. Birla group of companies
The company became the first manufacturer of cars in India when it set up its plant at Port
Okha in Gujarat. In 1948, it shifted its activities in Uttarpara near Calcutta and set up
facilities to manufacture cars and trucks. Over the years, HML has diversified into heavy

31

engineering equipment like excavators, cranes, presses and steel products under the heavy
engineering division (HED). With the division becoming a loss making one, it was hived off
to Hyderabad Industries Ltd, a group company, in FY92. In 1971, HML further diversified its
activities to include earth-moving equipment such as dumpers, front-end loaders etc by
setting up a plant near Chennai. In 1985, HML set up a plant at Hosur in Tamil Nadu for
manufacturing heavy-duty transmission required for earth moving equipments.
In 1986, a project was undertaken to produce HCVs at Vadodara. A part of the assets was
later sold to a JV between GM and HML, General Motors India Ltd. In 1987, HML
commenced the production of petrol engines in collaboration with Isuzu Motor Company,
Japan. Recently, the company has entered into a technical collaboration with Mitsubishi of
Japan for the manufacture of the Lancer car. Commercial production of the car started in
October 1998. HML also entered into collaboration with OKA Motor Company of Australia
to produce custom-designed rural transport vehicle.

Models of Hindustan Motors

Ambassador 1800 ISZ
Ambassador 2000 DSL
Ambassador Nova Diesel
Contessa motors

Mitsubishi Motors
In the early 1870s, as Japan emerged from over 300 years of feudal isolation, a young
entrepreneur, Yataro Iwasaki, formed a small shipping company named the
TsukumoShokia. Following several name changes this company became Mitsubishi Mail
Steamship Company in 1875, the root of the combined Mitsubishi Companies of today.

32

A family owned and directed business, the company quickly expanded into other fields of
endeavor and became one of the largest combines in pre-world war II Japan. By the end of
1945, business ventures in addition to shipping included heavy industries with ship
building at its helm, banking, trading, mining real estate, chemicals and many other.
The history of Mitsubishi as an automobile manufacturer dates back long before the
Motor Vehicles Division of Mitsubishi Heavy Industries Ltd. was incorporated as
Mitsubishi Motors Corporation in 1970. Mitsubishis epoch making vehicles, which rolled
off the assembly line in 1917, were the Model-A, Japans first series production passenger
cars. Always the innovators, the Mitsubishi Model-A were the pioneers of vehicles in
Japan. In early years, the ship and aircraft-manufacturing arm of Mitsubishi produced
vehicles. Therein the provenance of Mitsubishi Motors engineering excellence and the
resultant reputation for outstanding reliability and all around performance of its vehicles.
Today, Mitsubishi Motors ranks as one of the largest vehicle manufacturer, and one of the
very few that can boast a vehicle lineup which extends from mini cars to heavy-duty trunk
buses and other specialized commercial vehicles.
The all new Mitsubishi Lancer comes to you from two automotive giants: Hindustan
Motors and Mitsubishi Motors. A technical collaboration between the two, the project
brings together their formidable expertise and experience to provide you with a whole
new automotive experience.
Mitsubishi Motors brings the most contemporary technology on Indian roads. The Lancer
has an impeccable rallying pedigree and has proven it's mettle in the toughest conditions.
The combination of high technology and classic build quality continues to woo customers
the world over. Mitsubishi provided you with a comfortable and intuitive environment to
explore the Lancer. There's virtual reality so you can view the car as you would in one of

33

our showrooms, and every aspect of the car is explored in detail to let you get a good feel
for the car from the comfort of your own home. There are useful tools to make your
buying process easier.
Not only has HM cleared any doubts pertaining to the quality of its locally-made Lancer,
but it has also proved that its mid-size car is the one customers like or appreciate most.
The Lancer scores superbly in all but the Ride, Handling and Braking categories, where
customers find comparatively more problems, as a result of the stiffened and raised
suspension.
The Lancer wins hands down in the APEAL study too, scoring a full 33 points more than
its closest rival, the Honda City a substantial lead. This performance in the APEAL study
has been achieved due to the fact that the Lancer scores extremely well in each of the nine
categories and this makes it the pick of the mid-size cars by a fair margin.

Models of Mitsubishi
MITSUBISHI MONTERO SPORT 3.5XS
Montero
Endeavor
Montero sports
Outlander
Lancer Evolution
Lancer

34

 Eclipse
Eclipse Spyder
Galant
Dimant

Mahindra & Mahindra

M&M sold 10,345 units in April 2004, growing by 43% yoy from 7,235 during the same
period last year.

Segments

April 2004

April 2003

yoy (%)

UV

8,309

5,971

39.16

LCV

496

431

15.08

Three-wheelers

1,540

833

84.87

Total

10,345

7,235

42.99

35

8,309 utility vehicles were sold in April 2004 as compared to 5,971 units during the same
period last year registering a 39% yoy growth. Utility vehicle sales included 2,007 units of
the Scorpio model compared to 1,604 units last year.
It sold 496 LCV units compared to 431 LCV units in April 2003 and 1,540 three-wheelers
from 833 three-wheeler units in April 2003. The LCV segment showed a 15% growth
compared to last year, however the company saw a huge growth in its three-wheeler
business, which grew by almost 85% yoy.

Tata Motors
Tata Motors registered a 57.7% increase yoy in total sales at 24,961 units in April 2004,
compared to 15,829 units in the same period last year.
The company's sales in the domestic market increased by 60.5% yoy at 24,026 vehicles from
14,966 units in April 2003.

Volumes

April 2004

April 2003

yoy (%)

Domestic
24,026

14,966

60.54

36

Exports
935

863

8.34

24,961

15,829

57.69

Total

The company exported 935 units in April 2004 as compared to 863 vehicles in April last
year, which is an 8.3% yoy growth.

CV segment
Commercial vehicle sales at 12,050 units compared to 7,037 units in April last year growing
by 71.2% yoy.

Segment
April 2004

April 2003

yoy(%)

7,975

4,530

76.05

4,075

2,507

62.54

12,050

7,037

71.24

M/HCV

LCV

Total

Medium and heavy commercial vehicles sales grew by 76.1% yoy at 7,975 units and light
commercial vehicle sales showing a growth of 62.5% yoy at 4,075 units.

Passenger cars
The passenger car business reported total sales of 11,976 vehicles in the domestic market
registering an increase of 51% over April 2003.

37

Indica sales recorded a 43.3% growth yoy at 7,251 units, while Indigo sales grew 84.9% yoy
at 2,723 units.

Utility Vehicles
Utility vehicles registered a sale of 2,002 units, showing a 43.4% increase as compared to the
same period last year. Sumo sales grew by 48% and Safari sales grew by 16% over the April
2003.

MARKETING STRATEGY
A marketing strategy is a process that can allow an organization to concentrate its limited
resources on the greatest opportunities to increase sales and achieve a sustainable
competitive advantage. Its a written plan which combines product development, promotion,
distribution, and pricing approach, identifies the firm's marketing goals, and explains how
they will be achieved within a stated timeframe. Marketing strategy determines the choice of
target market segment, positioning, marketing mix, and allocation of resources. It is most
effective when it is an integral component of firm strategy, defining how the organization
will successfully engage customers, prospects, and competitors in the market arena.
Marketing strategies serve as the fundamental underpinning of marketing plans designed to
fill market needs and reach marketing objectives. Marketing strategies are dynamic and
interactive. It may differ depending on the unique situation of the individual business.
On the Canvas of Indian Economy, Auto Industry occupies a prominent place. Automobile
sector is one of the core of Indian Industry.Continuous economic liberalization over the years
by the Government of India has resulted in making India as one of the prime business
destination for many global automotive players.
38

One of the largest industries in India, automotive industry has been witnessing impressive
growth during the last two decades. Indian automobile industry has a mix of large domestic
private players such as Tata, Mahindra, Bajaj, Ashok Leyland and major international players
including GM, Ford, Toyota, Honda, Hyundai, etc. To remain in this competitve market on
has to come up different ides and strategies.
Various Marketing Strategies enables a firm to expand business activities for market
reputation, to satisfy human wants , to lead to specialisation and efficient performance of
production function climaxing in econimic stability.
After liberalization automobile Industry is growing at very high rate and many new
companies have also entered into market. With offering variety of cars in all segments for
everyone. So it is important to know which company is providing us good quality cars at fair
prices and providing better after sales services. And how they are trying to reach customers.
The most obvious objective marketers have for promotional activities is to convince
customers to make a decision that benefits the marketer (of course the marketer believes the
decision will also benefit the customer). For most for-profit marketers this means getting
customers to buy an organizations product and, in most cases, to remain a loyal long-term
customer.
However, marketers must understand that getting customers to commit to a decision, such as
a purchase decision, is only achievable when a customer is ready to make the decision.

TITLE OF RESEARCH
Analysis of market study for Automobile Industry

39

Marketing Mechanism
Promotion
Promotion concerns the message the firm sends out to potential consumers. It provides
information and persuades people, it creates awareness, stimulates demand and differentiates
the product and influences public behavior. Promotion wont make a bad product that no one
wants a success; although the absence of promotion might that a good product is not
successful, promotion includes all the activities or tools a company uses to communicate or
promote its product in the market.
Promotional tools or promotion mix
1. PERSONAL SELLING: It involves personal confrontation either by phone or face, it is
an expensive and time-consuming tool of promoting the product.
2. ADVERTISING: It is defined as a paid non-personal communication with a target
(usually mass) market. It is cost effective and can reach a large number of people. It can
also be used for long term or short term objectives.
There are various forms or mediums through which can advertise.
A. Broadcast Media:

Television

Radio

Cinema

B. Print media:

Newspapers

Magazines

40

Leaflets

C. Outdoor media:
Posters and billboards.
3. PUBLIC RELATIONS AN PUBLICITY:
Public relations are an umbrella term and refer to the totality of the organizations behavior
with respect to the society in which it operates. The maybe regarded as good or bad and is
reflected in the companys reputation and image.
4. SPONSORSHIP:
Sponsorship can be seen as a part of public relations and it is certainly the case that some
sponsorship goes on to generate positive publicity for the organization.
5. DIRECT MARKETING:
It is an interactive system of marketing which uses one or more advertising media to affect a
measurable response at any locations.

COMMON MARKETING STRATEGIES OF AUTOMOBILE

INDUSTRY

Advertising in News papers and Magazines:-

In this companies advertise about the car in various local

newspapers like Economic times and they give detail
explanation about the feature of the cars, keeping
customers requirement. They also provide various dealers addresses and contact numbers

41

for reference. Company also tries to advertise through various magazines like Auto Cars,
Overdrive, etc.

Grand Launch :-

42

43

Recently Tata Nano car was grandly launched and created a buzz in market. After the launch
media aggressively took interest in providing the minute details about the car to the customer
by showing test drives, etc.
Once the car is launched they give adds in every possible newspaper, car magazines, put
hoardings, display car models in the malls.

Company provides exchange offers to customers :This is one of the most effective ways adopted by the companies and very successful
marketing strategy, which has helped company increase their sales.
In this method, companies provide option to buy a new car of your choice in exchange of
their old cars, but the price of old car is decided by the dealer by looking at its condition. It
helps customers, as they dont need to go anywhere else to sell their old car. This also helps
companies to increase their sale of new cars.

Adding Star Value to product- Brand Ambassador :Companies choose brand ambassadors for their cars to reach wide masses. For e.g. Shahrukh
Khan promotes Hyundai, Abhishek Bachan promoted Ford Fiesta, Saif Ali Khan and Rani
Mukherjee promoted Chevrolet Aveo and Amir Khan promoted Toyota Innova. Ambassadors
give a special identity to the products.

44

Companies have started sponsoring reality shows for better visibility :As we all know reality shows are making all time big in television and entertainment
industry. This is really a smart move by automobile companies to gain visibility through
reality shows. The reality shows are aired all over the world and huge number of people
watch it. So companies sponsor such shows and get noticed.E.g. Maruti sponsored Indias
Got Talent show on Colors channel and gifted Ritz to the winner. Indian Idol winner was also
gifted with Maruti SX4.

Mall Displays

45

Various companies display their cars in Malls so as to get prime attention. People go in Malls
for shopping and hangouts with their friends and family. They conduct small contests and
give gift hampers as prize. Thus they try to attract crowd towards them.

Companies enter market with help of Films

46

In terms of marketing strategies Chevrolet Aveo found a unique way of advertising by way of
a Yash Raj Film production, Tara Rum Pum. The main motive behind this was to popularize
and promote the product in youth.

Companies Sponsor Go- Karting events

Go-karting events are really booming up among young crowd. And thats the reason we see
craze for participating in go-karting events is on high. People have started taking interest in
the sport and huge crowds turn up for such events. But for sure car companies would to not
like to miss chance of visibility they get in such competitions. Few years before Maruti
Suzuki sponsored Autocross rally. Similarly Tata Engineering has sponsored Narayan
Kartikeyan as Indias Entry in to the World Series motorcar racing.

47

Personal selling
Personal Selling largely takes place at the Dealers End. The way customer is attended
depends mainly on the Dealer as he acts as an interface between the company and the
Consumer. The various cases in which Personal Selling takes place is Individual Sales,
Corporate Sales, Sales Presentations, Fair and trade Shows. Mostly in case of Individual
Sales the Customer goes to the showroom and takes a look at the product. There he is
attended to by the Sales Personnel of the Dealership. Sometimes the Senior Sales Executive
has to make Sales Presentation to Corporate Buyers. Personal Selling is also practiced at
Trade Fairs and Auto Shows wherein the Company appointed Sales Personnel attend
prospective customers and also book their orders.

48

Market Share Of Automobile Companies

% Market Share

Maruti Suzuki Ltd.

Tata Motors Ltd.

4.3 3.9
6.7
Mahindra & Mahindra Ltd.

13.5

Hyundai Motor India Ltd.

10.1
General Motors India Pvt Ltd.

46.9

Honda Siel Cars India Ltd.

14.6

Others

49

RESEARCH PROBLEM

The data which was used in the previous researches was not covering all the aspects

of the Automobile Industry.

The output that the previous reports was showing is not up to the mark.
There was still the scope of analysing more about the Automobile Industry.

The above mentioned reasons compels me to conduct the revised report that covers all the
aspects of Automobile Industry and is helpful to analyse the upcoming circumstances for the
Automobile Industry.
As the scope and impact of Automobile Industry change with the change of time, So
wanted to know the current facts about the Automobile Industry, that is not been covered in
the previous reports.

50

REPORT OF FICCI ON AUTOMOBILE INDUSTRY OF INDIA:

The report of (FICCI-2007) specified the overview of automotive industry of India and
explained the added advantages of automobile industry in India. According to this article
India has high potential of automobile industry, which contributes 4%GDP in Indian
economy. Indian automobile industry offers different types of automobiles such as cars,
scooters, bikes, busses, trucks, jeeps, tractors and all types of two wheelers, three wheelers as
well as four wheelers.
Indian automobile industry includes nearly 500 huge firms as well as 1000 small scare
registered firms that are offering automobile services to the customers. India is having huge
benefits because of managing automobileindustries as its major sector and it is getting many
technological benefits, cost and manpower advantages etc.
The Auto Ancillary Industry is the world famous R&D test center in India for automobile
verifications that can be considered as one of the competitive advantage to Indian automobile
industry. According to the World automobile statistics, India is the fast growing market sector
for cars in the year 2004 and it is the second largest two wheeler market sector in the world
and third largest three wheeler dealer in the world. According to this statistics India is the
fourth largest market, which is having high tractor sales in the world.

51

KPM REPORT ON AUTOMOBILEINDUSTRY

According to the report of KPM (2010) Indian automobile industry is a developed industry
that is having high opportunities when we compare among the others industries. Indian
market is an open door for many opportunities and it is having wide range of employment
opportunities. Because of presence of a higher population the work prospects are also high
which is allowing Indian customers to depend on vehicles to manage their daily activities.
These reasons lead to huge demand for automobile vehicles in India and for this reason many
automobile companies are offering wide range of vehicles according to customer
preferences. This article even explained the significant information on automobile sector of
India and even specified the information on growth and development of Indian automobile
industry. The information on short term and long term sectors of Indian automobile industries
are explained clearly.
The future work is required in order to give a clear idea on developmental factors that lead to
development of Indian auto industry.
The significant information on Indian automobile industry is described in this article, which
is significant aspect for research process
According to Research and Market report (2010), Indian automobile industry has a bright
history and the first car in India came into the roads in the year 1898 and liberalization and
globalization policies has shown major impact on Indian auto industry which lead to drastic
changes in automobile industry of India.
According to this article, automobile industry is playing vital role in economical sector and
employment sector, which is offering wide range of employment opportunities to the
individuals. Competition is the major problem in automobile industry and especially Indian
52

auto industry is facing tough competition with global companies in global markets and local
markets.
India is a place with different communities of people with wide range of cultures and
preferences. While comparing Indian auto industry with global auto industry India still needs
to make many developments in order to compete themselves with major global competitors.
Future work should be performed in order to specify the comparison of Indian auto market
with global auto market.
This article consists of significant information on competitive challenges faced by Indian
auto industry which is the important aspect related to problem statement of research process
and for this reason this article is used for research process.

ASIAN JOURNAL OF TECHNOLOGY & MANAGEMENT RESEARCH:

Automobile industry in India is an emerging sector and has a potential to improve it. The key
players have framed the strategies to tap the sector as per their features of the automotives.
The increasing GDP and economical resources have boost up during the last decade which
has increased purchasing power of the Indian peoples. The car segment in India has emerged
as one of the promising sector and has shown growth trends in tremendous sales. Tata Motors
has emerged as key player in Indian automobile industry and its share in Commercial
Vehicles has 63.94%, Passenger Vehicles 16.45%. Tata Motors Limited is Indias largest
automobile company, with consolidated revenues of USD 14 billion in 2008-09. It is the
leader in commercial vehicles and among the top three in passenger vehicles. Maruti Suzuki
India Limited, a subsidiary of Suzuki Motor Corporation of Japan, one of the India's largest

53

passenger car companies has grabbed a share for over 45% of the domestic car market. Other
key players in automobile segment of India have contributed significantly and their existence
in market has made others players to act actively in India.
Despite economic slowdown, the Indian automobile sector has shown high growth. The
passenger vehicle market, which constitutes around 80% of automobile sales, has immense
growth potential as passenger car stock stood at around 11 per 1,000 people in 2008.
Anticipating the future market potential, the production of passenger vehicle is forecasted to
grow at a CAGR of around 10% from 2009-10 to 2012-13.
De-licensing in 1991 has put the Indian automobile industry on a new growth track,
attracting foreign auto giants to set up their production facilities in the country to take
advantage of various benefits it offers. This took the Indian automobile production from 5.3
Million Units in 2001-02 to 10.8 Million Units in 2007-08. The other reasons attracting
global auto manufacturers to India are the countrys large middle class population, growing
earning power, strong technological capability and availability of trained manpower at
competitive prices. These are the major findings of our new report, 'Indian Automobile
Sector - A Booming Market In 2006-07, the Indian automotive industry provided direct
employment to more than 300,000 people, exported auto component worth around US$ 2.87
Billion, and contributed 5% to the GDP. Due to this large contribution of the industry in the
national economy, the Indian government lifted the requirement of forging joint ventures for
foreign companies, which attracted global to the Indian market to establish their plants,
resulting in heightened automobile production.
The Indian automobile market is currently dominated by two-wheeler segment but in future,
the demand for passenger cars and commercial vehicles will increase with industrial
development.
Also, as India has low vehicle presence it possesses substantial potential for growth.

54

Every major shift in policies made by the Indian government, the automotive industry has
come out stronger and better. While the shift in policies seems to have mostly been brought
by chance events, the Indian government has at least to be credited for making the right
decisions and implementing them correctly. It is paradoxical that the Indian middle class, the
most attractive feature for foreign investment in the liberalization phase, was an outcome of
the statist ideologies in the regulatory phase. The product innovations of domestic firms like
Tata Motors and Bajaj Auto today are the fruits of indigenization and protection policies of
the regulatory phases.Buyer decision processes are the decision making processes undertaken
by consumers in regard to a potential market transaction before, during, and after the
purchase of a product or service. Consumers have to make different kinds of decisions
everyday according to their different needs.

INDIAN PASSENGER CAR ANALYSIS:

According to new research report Indian Passenger Car Market Analysis, the passenger car
market, which constitutes around 78.5% of passenger vehicle sales (in FY 2010), has
immense growth potential as passenger car stock stood at around 11.6 per 1,000 people in
2009. Realizing booming passenger car demand in the country, many domestic and foreign
automobile giants are formulating capacity expansion strategies, and billions of dollar worth
of investments is already in pipeline. Considering huge market potential, production of
passenger cars is projected to grow at a CAGR of around 11% between 2010-11 and 201314.The increasing scenario of passenger car segment has shown positive effect on the sales
of the segment because of the tourist industry growth. Passenger car production in India is
projected to cross three million units in 2014-15. Sales of passenger cars during the period

55

2015-16 are expected to grow around 10%. Export of passenger cars is anticipated to raise
more than the domestic sales 2015-16.Passanger car segment is dominated by the share of
Maruti Suzuki India and it has recorded a percentage of 46 percent, second position has
grabbed by the Tata Motors which has a share of 16.45 percent. Third position is of Hyundai
Motors of India. The rest of the companies have not recorded a significant sales increase
during the period and their sales are less than 10 percent.
The sales of Maruti Suzuki of India has increased because of its value added service like
after sales services which includes regular check camps of the vehicles and free lubricants to
the customers. Maruti Suzuki of India has a team of experts and they are always ready to
give their expert advice to the customers regarding the vehicle problems. Maruti has
maintained its quality and it has good mileage per liter of diesel and petrol too. The life of
vehicle is also a positive point to increase sales of the vehicles.
Tata motors is the local manufacture of the vehicles but still the sales has not increased
because of it after sales services and the quality of the cars they produce. Other car
manufacturer have not shown significant impact on customers because they are lacking
somewhere in attracting customers, hence they have to have a strategy to attract customers
and make some impact on the minds of the customers.
Market Share of Commercial Vehicles Industry:
Commercial vehicle segment has dominated by the Tata group of motors in India and stood
first in automobile industry. It has a share or 63.94 percent. Ashok Leyland has its brand
name in market and known for the quality product. The price section of Ashok Leyland is
higher than the other automobile companies but still it has second position in commercial
vehicle segment and has garbed 16.47 percent share of the market. Third largest market share
is captured by the Mahindra and Mahindra automobiles it has 10.01 percent share in market.
The other Automobile companies have shown their presence in market but it is not

56

significant in nature. Their share is in between 6 percent to one percent . There are so many
reasons why these companies have not performed in market. It may be the price war, quality
of the product, durability of the product and performance of the product. The customers of
this segment always think about the service provided by the company after sales. Hence it is
most important to improve quality, durability and after sales service along with competitive
price of the Product.

57

OBJECTIVES OF STUDY
- To know the various strategies used by Automobile Industry to attract maximum number of
customers
- To know which company offers better cars, better after sales services and by which
company cars customers are satisfied most.
- Competition in the Automobile Industry
-To know the trend in Market.
- Through which strategies maximum customers are attracted.
- To know recession effect on sale of cars
-To know the step taken by Government in Automobile Sector

SCOPE OF RESEARCH
- Industry will come to know what attracts Customers.
- Industry will come to know that which are the criterias customers look for before buying
car.
- Industry will also come to know the future changes which will be require to satisfy
customer needs and wants.

58

RESEARCH METHODOLOGY
It is well known fact that the most important step in marketing research process is to define
the problem. Choose for investigation because a problem well defined is half solved. That
was the reason that at most care was taken while defining various parameters of the problem.
After giving through brain storming session, objectives were selected and the set on the base
of these objectives. A questionnaire was designed major emphasis of which was gathering
new ideas or insight so as to determine and bind out solution to the problems.

RESEARCH DESIGN
Exploratory research design has been used in the research process.
Exploratory research focuses on the discovery of new ideas. In a business where sales have
been declining for the past few months, the past few months, the management may conduct a
quick study to find out what could be the possible explanations.

DATA SOURCE
Research included gathering both Primary and Secondary data. Primary data is the first
hand data, which are selected a fresh and thus happen to be original in character. Primary

59

Data was crucial to know various customers and past consumer views about bikes and to
calculate the market share of this brand in regards to other brands.
Secondary data are those which has been collected by some one else and which already
have been passed through statistical process. Secondary data has been taken from internet,
newspaper, magazines and companies web sites.

RESEARCH APPROACH
The research approach was used survey method which is a widely used method for data
collection and best suited for descriptive type of research survey includes research instrument
like questionnaire which can be structured and unstructured. Target population is well
identified and various methods like personal interviews and telephone interviews are
employees.

SAMPLING TECHNIQUE
Random sampling has been used in the research process.

Sample Size : 100 persons are considered that includes the customers of Automobile
Showrooms and the dealers.

Sample Unit : 1. Tata Motors (Shri Ram Motors), Ring Road, Indira Nagar, Lucknow
2. Maruti Suzuki, Ring Road, Indira Nagar, Lucknow
3. Mahindra & Mahindra, Alambagh, Lucknow

DATA COMPLETION AND ANALYSIS

After the data has been collected, it was tabulated and findings of the project were presented
followed by analysis and interpretation to reach certain conclusions.

60

SCOPE
My project was based on the ANALYSIS OF MARKET STRATEGY FOR
AUTOMOBILE INDUSTRY and data was taken in the LUCKNOW only.

Limitations Of Study

The customers were reluctant to fill up the questionnaire which resulted the sample

size to be restricted.
Many members who did fill the questionnaire left the open ended questions blank.
Many people do not know themselves why they use any particular brand as their
answer was we use brand because we like it so the actual reason behind their
liking was not confirmed. Many retailers do not like to interact because of their
business. People are not interested to fill questionnaire as they think it wastage of

time, this is again because of less scope of research in Industry.

As the view of every customer is different on the same topic, so it is really hard to get
the exact output from those variations. So there is little variance as compared to real
situation.

61

Q.1) Do you think Marketing Strategies helps to increase sales of product?

Statement

Percentage

Strongly agree
Agree
Neutral
Strongly Disagree
Disagree
Total

48.0
36.0
6.0
5.0
5.0
100.0

60
50
40
30
20
10
0
stongly agree

agree

neutral

strongly disagree disagree

respondent

INTERPRETATION: From above graph it is clear that most of the respondent(84%)

are agree that marketing strategy helps in increasing the sales of product.

62

Q.2) Do you think Promotion through Media is more effective than any other
medium?
Statement

Percentage

Strongly agree
Agree
Neutral
Strongly Disgree
Disagree
Total

40.0
30.0
5.0
10.0
15.0
100.0

Chart Title
disagree

strongly dis agree

Series 3
neutral

agree

strongly agree
0

10

15

20

25

30

35

40

INTERPRETATION: From above figure it is clear that 70% of respondent are

agree that promotion of automobile is more effective than other medium.

63

Q.3) Did Marketing strategy like TV ads, newspaper have attracted you to buy
Automobile?
Statement

Percentage

Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Total

44.0
32.0
12.0
7.0
5.0
100.0

disagree

stronglydisagree

neutral

Series 3

agree

strongly agree
0

10

15

20

25

30

35

40

45

INTERPRETATION: The above graph shows that76% people are agree that
marketing like TV ads, newspaper ads attract them to buy an auto mobile while
19% are not agree with this.
Q.4) While Buying the automobile, do you think that Quality are the main
criteria in your Mind?
Statement

Percentage

64

Strongly agree
Agree
Neutral
Strongly Disagree
Disagree
Total

32.0
37.0
13.0
10.0
8.0
100.0

40
35
30
25
20

Series 3

15
10
5
0
strongly agree

agree

neutral

strongly disagree

Disagree

INTERPRETATION: The above diagram represents that 69% of respondent

accepts that they kept quality as the main criteria in their mind where 18 % are
not in this favour.
Q.5) While Buying the Automobile, do you prefer mileage as the main criteria
in your Mind?
Statement
Strongly agree
Agree
Neutral
Strongly Disagree
Disagree
Total

Percentage
35.0
25.0
15.0
10.0
15.0
100.0

65

disagree

strongly disagree

neutral

Series 3

agree

strongly agree
0

10

15

20

25

30

35

INTERPRETATION: The above graph shoes that 60% of respondent are agree
that they prefer mileage as the main criteria while buying automobile and25%
are not in the favour of this.
Q.6) Are you satisfied with the government norms for the automobile Industry?
Statement
Highly satisfied
Satisfied
Neutral
Highly dissatisfied
Dissatisfied
Total

Percentage
35.0
25.0
15.0
10.0
15.0
100.0

66

35
30
25
20
15
10

Series 3

5
0

INTERPRETATION: According to above graph 60% are satisfied with the

government norms for automobile industry, 25% are not satisfied while 15%
are neutral.
Q.7) Which version of Automobile would you like to purchase?
Statement
Petrol
Diesel
CNG
Duo
Total

Percentage
27.0
43.0
20.0
10.0
100.0

67

10%
27%
20%

Petrol
Diesel
CNG
Duo

43%

INTERPRETATION: Above pie-chart shows that43% of total respondent

willgo for diesel version, 27% for petrol version , 20% for CNG and 10% will
prefer Duo version.

Q.8) Does a Grand Launch of a Automobile makes Selling easy?

Statement
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Total

Percentage
36.0
34.0
10.0
8.0
12.0
100.0

68

Disagree

Strongly disagree

respondent

neutral

Agree

Strongly agree

10

15

20

25

30

35

40

INTERPRETATAION: The diagram shows that 70% of respondent are in

favour that grand launch make selling easy,20% are disagree while 10% are
neutral.
Q.9) Do you think sponsoring Reality Shows and Giving cars to Winner helps
in Promoting Automobile and increases profitability in return?
Statement
Strongly agree
Agree
Neutral
Strongly disagree
Disagree
Total

Percentage
28.0
45.0
17.0
8.0
2.0
100.0

69

Chart Title
45
40
35
30
25
20
15
10
5
0

Series 3

INTERPRETATION: From the above graph it is clear 73% respondent are in

favour that sponsoring Reality Shows and Giving cars to Winner helps in
Promoting Automobile and increases profitability ,10% are not in favour and
17% are neutral.
Q.10) Do you think in recession time also, spending huge amount on various
marketing strategies is wise decision?
Statement
Strongly agree
Agree
Neutral
Strongly Disagree
Disagree
Total

Percentage
25.0
37.0
8.0
16.0
14.0
100.0

70

14%
25%
Strongly agree
16%

Agree
Neutral
Strongly disagree
Disagree

8%
37%

INTERPRETATION: According to the above doughnut diagram it is clear that

62% agree in recession time also, spending huge amount on various marketing
strategies is wise decision , 30% are not agree with this while 8% are neutral.
Q.11) If you have used an Automobile before also, what reasons has forced you
to buy the same automobile again?
Statement
Brand
Quality
Price
Range of cars
All of them
Total

Percentage
18.0
16.0
18.0
14.0
34.0
100.0

71

18%
Brand

34%

Quality
16%

Price
Range of Cars
All of Them

14%

18%

INTERPRETATION :Above pie-chart shows that 18% prefer brand to buy an

automobile , 16% prefer quality, 185 will go for price , 14% are with range of
cars and 34% will see all the above quality.
Q.12) Are you satisfied with the Automobile you are using?
Statement
Higly satisfied
Satisfied
Neutral
Highly dissatisfied
Dissatisfied
Total

Percentage
22.0
42.0
12.0
14.0
10.0
100.0

72

45
42

40
35
30
25
20

22

Series 3

15

14

12

10

10

5
0
Higly satisfied

Satisfied

neutral

Higly dis satisfiedDissatisfied

INTERPRETATION: The above diagram shows that 64% of respondent are

satisfied with the automobile they are using,24% are not satisfied with their
automobile and 12% are neutral.
Q.13) Are you satisfied with the after sales service from an Automobile

company ?
Statement
Highly satisfied
Satisfied
Neutral
Highly dissatisfied
Dissatisfied
Total

Percentage
29.0
38.0
13.0
4.0
16.0
100.0

hig hly sat is fie

d

r
e
s
p
429
13
38
16
o
n
d
e
n
t

INTERPRETATION: The above graph shows that 67% are satisfiedwith the
73

after sales service from an Automobile company,20% are not satisfiedsatisfied

with the after sales service from an Automobile company and 13% are neutral
on the question.
FINDINGS

It was found that people agree that Marketing Strategies helps to increase sale of
product.

Most of the customers are attracted through media publicity and mouth publicity.

Customer prefers Diesel Version cars rather than Petrol or L.P.G. version.

Most of the Customers were found satisfied with cars performance.

From survey, it was found that around 64% were Maruti users.

Pricing of cars was found reasonable by most of the customers.

Customers were satisfied with company service.

74

RECOMMENDATIONS

As dealers directly interact with customers, they should maintain proper Customer
Relationship Strategy.

They should differ service benefits and offerings according to the various customers
segments. Which may include classification on the basis of

income group

Age group

Dealers should help customers in taking right decision for buying car and should give
complete information about car before customer purchase car.

Company should provide good after sales service and should maintain good relations
with customers so that reference can be get and goodwill is created.

Company should come up with diesel model of mid-size cars as market survey says
that the use of diesel cars will increase by 50% by 2015

Companies should try to increase their number of dealers and service stations so that
customers can get better service.

Companies should try to build trust in customers as competition is increasing day by

day.

Company should try to give some good schemes and offers and discounts for old and
new customers.

75

Companies should try to expand its range of cars from small car and hatchbacks to
more mid-size cars like sx4 and swift mid size version.

CONCLUSION
The automotive industry is at the core of Indias manufacturing economy. India is positioned
to become one of the worlds most attractive automotive markets for both manufacturers and
consumers. The resulting benefits to societyin economic growth, increased jobs, and
stability for families employed by the automotive industryare considerable.
What does this mean for motor vehicle businesses? The total cost of ownership of twowheelers over the past few years has increased while that of entry-level passenger cars has
declined, primarily due to rising fuel prices and lower prices for Sub-A segment vehicles.
This shift will result in increased entry-level passenger vehicle sales in urban areas. Hence,
the Automobile manufacturers should focus on penetration of sales inrural markets where
infrastructure is relatively underdeveloped. Automobiles will be attractive to younger
consumers as a primary mode of transport; the product strategy must be focused on that
segment. The automobilemanufacturers mustalso work to further improve fuel efficiency.
Automobile penetration in India is only seven or eight per 1,000 people, compared with
nearly 500 per 1,000 people in mature markets. To increase this ratio, manufacturers should
campaign for better infrastructure, further reduce the total cost of car ownership, and bring
financing and insurance models up to modern global standards. To beat rising input costs,
manufacturers must improve their net cost position by increasing productivity and

76

performance. Indian auto manufacturers such as Tata must increase their global sales for
faster recovery of their fixed costs and match the product cycle times of international
manufacturers.

The government can help by mandating higher fuel efficiencies for passenger vehicles and
by setting antipollution policies that take older cars off the road. The government can also
address the heavy blowdealt by the economy to the motor vehicle industry by providing
funds to improve credit availability, especially for noncommercial vehicle buyers. To further
promote the market, manufacturers must adopt new technologies that improve comfort,
safety, and durability.
By promoting fuel efficiency, India can reduce its dependence on foreign oil. By reducing its
fuel subsidies, the government could direct that spending to social programs. But to ensure
that the benefits come to fruition, India and its automakers must act now.

77

BIBLIOGRAPHY
Books

Kothari C.R., 2005 Research Methodology, Wishwa Prakashan, India.

(9th edition)

Kotler Philip. 2005, Marketing Management, Prentice hall, India.

(13th Edition)

Magazines

Meet the weirdest self driving car, yet, Auto Drive, August 2014

Auto Trend, Indian Auto, February 2015

Car graveyards, Over Drive, March 2015

Journals

Business Inteligence Journal January 2012 Vol.5 No.1

John R Walker, Report of FICCI, 2007 on Automobile Industry

George E Rejda, KPM report, 2010 on Automobile Industry

Dilip Chenoy, The Automobile Industry In India : Challenges Ahead

25 November 2009, Delhi, SIAM.

Sunil Kakkar, Indian Auto Industry, The way Forward, September

2012

Websites / Links

https://www.Economictimes.com/topic/automobile-industry/details (1/5/15)

https://www.autoindia.com/news/latest-standard (31/4/15)

https://www.overdrive.com/reviews/expertise (3/5/15)

78

REFERENCES
1.Ranawat and Tiwari (2009) Influence of Govt. Policies on Indias Automotive Industry,
March 2009, Working Paper No. 57, Hamburg University of Technology.
2. Badri Narayanan G,PankajVashisht,Determinants of Competitiveness of the Indian
Auto Industry, Working Paper No. 201, January 2008, INDIAN COUNCIL FOR
RESEARCH ON INTERNATIONAL ECONOMIC RELATIONS
3. http://consumerguideauto.howstuffworks.com/2009-premium-large-carbuyingguide.htm
4. Cooper and Schindler - Business Research Methods (Tata McGraw Hill, 9th Edition)
5. Kotler, P., Armstrong, G., Saunders, J. & Wong, V. (2001), Principles of Marketing, 5th
European Ed. Lombarda: Rotolito
6. Semenik Richard J - Promotion & Integrated Marketing Communications ,Thomson,
2004

79

INSTITUTE OF CO-OPERATIVE
& CORPORATE MANAGEMENT
RESEARCH & TRAINING
Sector

17,

INDIRA

NAGAR,

LUCKNOW

TOPIC Analysis Of Market Study For Automobile

Industry

(This Questionnaire is for the academic research purpose only,

the data collected will be kept confidential)
PERSONAL DETAILS
1) NAME:
2) GENDER:
Male

Female

3) Age.
a) 18-20

b) 21-26

c) 26-30

d) 30 and above

4) OCCUPATION:
a) Student
c) Self employed

b) Employed
d) Others________________

5) How many members are in your family?

a) 0-2

b) 2-4
80

c) 4-6

d) More than 6

QUESTIONS
1) Do you think Marketing Strategies helps to increase sales of product?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

2) Do you think Promotion through Media is more effective than any other medium?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

3) Did Marketing strategy like TV ads, newspaper have attracted you to buy Automobile?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

4) While Buying the automobile, do you think that Quality are the main criteria in your
Mind?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

5) While Buying the Automobile, do you prefer mileage as the main criteria in your Mind?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

6) Are you satisfied with the government norms for the automobile Industry?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

7) Which version of Automobile would you like to purchase?

a) Petrol

b) Diesel

81

c) CNG

d) DUO

8) Does a Grand Launch of a Automobile makes Selling easy?

a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

9) Do you think sponsoring Reality Shows and Giving cars to Winner helps in Promoting
Automobile and increases profitability in return?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

10) Do you think in recession time also, spending huge amount on various marketing
strategies is wise decision?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

11) If you have used an Automobile before also, what reasons has forced you to buy the
same automobile again?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

12) Are you satisfied with the Automobile you are using?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

13) Are you satisfied with the after sales service from an Automobile company ?
a) Strongly agree
d) Strongly Disagree

b) Agree

c) Neutral

e) Disagree

14) Any valuable suggestion?

82

83