FINAL INDUSTRIAL PROJECT REPORT

ON THE TOPIC

A STUDY OF AUTO FINANCING WITH SPECIAL REFERENCE TO BAJAJ

AUTO FINANCE LTD, AGRA

 SYNOPSIS
 REVIEW OF LITRETURE
 DATA COLLECTION
 FINDING AND ANALYSIS

UNDER THE GUIDANCE OF SUBMITTED BY

Dr. Sanjay Bhushan MEHAR KUMAR

Department of Management Roll no.- 062030
Faculty of Social Sciences, DEI B. Com (Hons)
CHAPTER
PLAN
 CHAPTER PLAN

CHAPTER 1: INTRODUCTION

CHAPTER 2: INTRODUCTION OF BAJAJ AUTO FINANCE LTD.

CHAPTER 3: NEED OF STUDY

CHAPTER 4: OBJECTIVE OF THE STUDY

CHAPTER 5: LITERATURE REVIEW

CHAPTER 6: DATA COLLECTION & RESEARCH METHODOLOGY

CHAPTER 7: FINDINGS

CHAPTER 8: ANALYSIS

CHAPTER 9: CONCLUSIONS

CHAPTER 10: SUGGESTIONS

CHAPTER 11: RECOMMENDATIONS

CHAPTER 12: REFERENCES

INTRODUCTION
 1). INTRODUCTION
One of the key industries propelling the Indian Economy today is the automobile
Industry. As steel, petroleum and manufacturing industries are dependent on this
industry, it employs thousands of people directly or indirectly. This industry, therefore,
has a key role to play in the economic growth of India.

An increase in the disposable income of the middle class coupled with low EMI values
and friendly government policies are what have made a difference to this sector. With an
annual contribution of 4% to the GDP and accounting for about 5% of the total industrial
output, this segment clearly stands out as a significant contributor to the economic
growth.

Comprising of a healthy mix of Indian players such as Mahindra, Bajaj, Tata, Ashok
Leyland, hero honda and some international players such as Ford, Toyota, GM Honda,
Daimler Chrysler, Hyundai Suzukiand Volvo, the Indian consumers are spoilt for choice.
Be it buying a car or a two-wheeler, the customer has a wide array of products to choose
from, according to his needs and budget. As there are so many companies now the
pricing has become competitive with the consumers emerging as winners.

Two Wheeler Finance

The two-wheeler segment of Indian automobile industry has been witness to an
impressive growth in recent times. While the entire automobile piece is on an
upswing, the two-wheeler segment is really the one stealing the show. And one
major factor contributing to this exciting expansion has been the new found
fondness of banks and financial institutions in India offering a substantial
credit and financing option to the buyers, both for the new as well as the used
two wheelers. The financiers to the two wheelers in India has ensured that
buying a dream two wheeler does not remain a dream anymore for most of the
Indian buyers, irrespective of their financial status.

Among the leading financiers for the two wheelers in India, the popular names are the
State Bank of India, Bajaj auto finance, Countrywide, HDFC Bank, Citibank, Tata
Finance and Sundaram Finance. While rates of interest vary, the terms and conditions too
might differ from one customer to another depending upon the creditworthiness as
determined by the respective financier. Quite a few of them even offer the facility of
online application and approval of loans that is fast, secure and available throughout the
year.

Two wheeler finance market is on the growth path with increasing demand in semi-
urban and rural areas.

The organized market of two wheelers in India is estimated to be Rs 6,000-7,000 cr. So, a
huge space for the two-wheeler finances companies. Previously there was a limited
awareness about availability of two wheeler loans in the rural areas but now the demand
for those areas are picking up. These finance companies are aggressively marketing their
products with innovative service offerings and incentives.
Getting auto loans has become quite easy. The finance agency has come of age
and companies are aggressively marketing different auto loan schemes by
offering innovative and alluring offers to the customers. Today there are so
many two-wheeler finance companies in India. These companies are either
banks like HDFC ICICI, Bank of Baroda and Centurion Bank of Punjab or
private companies from non-banking sector like Bajaj Auto Finance Ltd.
 2). INTRODUCTION BAJAJ AUTO FINANCE LTD

Bajaj Auto Finance was incorporated in 1987. The company is promoted and managed by
Bajaj group. It has ceased to be a subsidiary of Bajaj Auto after its IPO of 4.175 million
shares of Rs 10 each at a premium of Rs 80 in May 1994.

BAFL is mainly into financing of retail assets - two-wheelers and consumer durables.
Bajaj Auto Finance has a network of over 4,000 Bajaj Auto and consumer durable
dealerships as well as 95 branch offices throughout the country. The company has
changed its provisioning policy for non-performing assets. Bajaj Auto Finance is scaling
its capacities and investment in human resources and processes to pursue an aggressive
growth strategy over the next five years.

Bajaj Auto Finance plans to emerge as Rs 4,500 cr firm. According to Mr. Rahul
Bajaj the chairman of Bajaj Auto, the company has plans to make Bajaj’s financial
business, Bajaj Auto Finance, a Rs 4,500 crore power house. This business combined
with the Bajaj Auto’s cash reserves and equity of the subsidiaries — the 76% in the two
insurance ventures with Allianz, the stake of Bajaj Auto in Maharashtra Scooter will be
transferred to the proposed investment company.

Bajaj Auto Finance will be raising Rs 950 crore and this expansion of equity will give the
company an ability to raise debt in the ratio of 1:4 and all the big initiatives will be done
by BAFL. Bajaj has already announced that the free cash in the company will be used to
launch multiple initiatives in the next five years and fuel growth of the company. The
market value of the portfolio as on March 31, 2005 was Rs 5,300 crore and is now worth
Rs 6,500 crore.

Financial Result

During the year 2007-08, your company deployed a total amount of Rs.30,363 million, of
which Rs.27,406 million were under various financing schemes and Rs.2,957 million in
AAA rated securitized retail asset pools which is a new business initiative by the
company. As against this, during the previous year 2006-07, the total amount deployed
was Rs.26,313 million, thus recording an increase of 15% over the previous year.

The Assets under Finance, Loan and Securitized Retail Asset Pool receivables as on 31st
March, 2008 were Rs.33,319 million as compared to Rs.27,610 million as on 31st March,
2007.
The profit before tax for the year was at Rs.299.8 million, as against Rs.712.5 million in
the previous year and the profit after tax for the year was Rs.201.2 million as compared to
Rs.472.2 million in the previous year. This has been primarily because of reduced
subvention offers from the two wheeler manufacturer (Rs.59 million in 2007-08 against
Rs.337 million in 2006-07), increased provision for doubtful debts and bad debts written
off, net (Rs.1,092 million in 2007-08 against Rs.809 million in 2006-07) due to the
company's increased focus on semi-urban and rural markets in the last 2-3 years.
Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12
12 months12 months12 months12 months
months

Sources Of Funds
Total Share Capital 16.49 16.49 20.99 35.35 36.60
Equity Share Capital 16.49 16.49 20.99 35.35 36.60
Share Application Money 0.00 0.00 12.33 5.12 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 217.43 259.28 461.73 960.57 1,026.79
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 233.92 275.77 495.05 1,001.04 1,063.39
Secured Loans 190.81 314.17 825.32 974.22 941.61
Unsecured Loans 153.05 366.15 193.44 644.06 721.90
Total Debt 343.86 680.32 1,018.76 1,618.28 1,663.51
Total Liabilities 577.78 956.09 1,513.81 2,619.32 2,726.90
Mar '04 Mar '05 Mar '06 Mar '07 Mar '08

12
12 months12 months12 months12 months
months

Application Of Funds
Gross Block 37.25 28.45 28.81 33.50 46.89
Less: Accum. Depreciation 33.57 26.20 25.58 28.47 33.13
Net Block 3.68 2.25 3.23 5.03 13.76
Capital Work in Progress 0.00 0.00 0.00 0.00 0.00
Investments 29.59 23.13 26.90 32.67 326.88
Inventories 726.88 1,122.35 1,855.43 2,701.40 2,834.63
Sundry Debtors 0.00 0.00 0.00 0.00 0.00
Cash and Bank Balance 24.78 40.76 65.63 167.75 125.18
Total Current Assets 751.66 1,163.11 1,921.06 2,869.15 2,959.81
Loans and Advances 155.16 233.47 268.00 265.23 460.39
Fixed Deposits 0.00 0.00 0.00 370.00 84.93
Total CA, Loans & Advances 906.82 1,396.58 2,189.06 3,504.38 3,505.13
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 249.41 361.27 572.93 782.34 981.76
Provisions 112.91 104.60 132.46 140.40 137.11
Total CL & Provisions 362.32 465.87 705.39 922.74 1,118.87
Net Current Assets 544.50 930.71 1,483.67 2,581.64 2,386.26
Miscellaneous Expenses 0.00 0.00 0.00 0.00 0.00
Total Assets 577.77 956.09 1,513.80 2,619.34 2,726.90

Contingent Liabilities 0.34 0.23 0.35 54.12 1.04

Book Value (Rs) 141.84 167.22 229.93 281.74 290.57

Source : Asian CERC

2007-08
Rs. million
Income from Operations 4,096.70
Other Income 930.8
Total 5,027.50
Provision for Doubtful Debts and
Bad Debts written off, net Depreciation 1,091.80
Profit before Taxation 48.5
Provision for Taxation 299.8
[Including Deferred Tax Credit and FBT 98.6
Profit for the year after Taxation 201.2
Disposable surplus after earlier years adjustments 205.8

Appropriations:
Transfer to Reserve Fund 41.5
Transfer to Debenture Redemption Reserve 90
Provision for Proposed Dividend 36.6
Provision for Dividend Tax 6.2
Balance carried to General Reserve / Balance Sheet 31.5
New Initiatives
Since the third quarter of the year 2007-08, the company has launched various new
business initiatives like acquisition of AAA rated securitized retail asset pools of reputed
banks / NBFCs, IPO financing, insurance distribution to its customers, cross sell of
personal loans to existing customers with clean repayment history, financing to SMEs
/reputed educational institutions and universities for personal computers etc. The
company is repositioning itself as a full-service NBFC offering wide range of products.

YEAR’S BAJAJ EVENTS

 1987 - Bajaj Auto Finance was incorporated on 25th March, as a
Private Limited Company to take up Hire Purchase Finance and Lease
Finance activity. It became a deemed public company by virtue
of Section 43(A) of the Act with effect from 20th October 1987 and
the word private was deleted by the Registrar of Companies,
Maharashtra, Mumbai.

The company is primarily engaged in the Hire Purchase

Financing of Two, Three Wheelers, Leasing of equipments and vehicles
and Bill Discounting: - The company is also engaged in Real Estate
Operations as Project Management Consultant. Bajaj Auto Ltd and Bajaj
and Auto Holdings Ltd promoted the Company.

 1992 - The Company is proposed to enter into other areas of financing,

Such as Bills Discounting.
The Company is proposed to increase the financing activities of the
 Company by Introduction of various schemes of financing cars, trucks
and leasing of equipment.It is proposed to increase the share capital of the
Company by public issue of upto 50,00,000 equity shares of Rs.10/ each
at a premium, to be determined in consultation with the concerned
Authorities.
During the year under review, Company has opened a brach office at
Hyderabad for promoting Company's financing schemes.

 1993 - The Company has, for the first time, issued commercial Papers (CPs) to
the extent of Rs.80 million. The Credit Rating and Information Services of
India Limited (CRISIL) have rated the issue of Commercial Papers as P1+
(pronounced P one plus). This rating is the best rating for CPs. During the
year under review, Company has opened its branch offices at New Delhi,
Chennai, Bangalore and Mumbai for promoting Company's financing
schemes.
The proposal of issue of 67,00,000 equity shares of Rs.10/-each at a
premium of upto Rs.70/- per equity share was approved by the
shareholders.
It is proposed to issue shares to the public at an appropriate time and at a
suitable premium after taking into account the Capital Market conditions.

 1994 - The Company offered 64,88,200 No. of equity shares of Rs 10 each at a

Premium of Rs 80 per share of which 23,13,200 shares were offered to
promoters and their associates and the balance 41,75,000 shares were
offered to the Indian Public. All were accepted.
During the year under review, Company has opened its branch office at
Nagpur for promoting Company's financing schemes.
The Company is entering into financing of other automobiles mainly
through the branch network.

 1995 - During the year, Company has allotted, pursuant to a Public Issue,
4,15,000 No. of Equity Shares of Rs.10 each for cash at a premium of Rs.
80 per Equity Share. After allotment of shares, Company's paid up share
capital is Rs. 164,884,500 as at 31.3.95.
After allotment of shares against Public Issue on 28th May1994, Company
has ceased to be a subsidiary Company of Bajaj Auto Limited. The
Company has opened its branch offices at Vijaywada, Nasik,
Vishakhapattanam, Calcutta, Goa, Madurai and Pune for promoting
Company's financing schemes.

 1996 - The Company has obtained a credit rating of FAA+ from CRISIL for its
Fixed Deposit Schemes.
 During the year, Company has opened its branch offices at Baroda and
Trivandrum for promoting Company's financing schemes. The Company
has a network of 15 branches.

 1997 - Bajaj Auto Finance plans to double its borrowing capacity from Rs 100
crore to Rs 200 crore
The Credit Rating and Information Services of India Ltd (Crisil) has
assigned P1+ ratings to the debt programmes of Wipro and Bajaj Auto
Finance Ltd. Crisil has also reaffirmed the FAAA rating assigned to the
fixed deposits (FD) programme of Bajaj Auto Finance and the FA+ rating
assigned to the FD programme of Vysya Bank Housing Finance Ltd.

 1998 - Bajaj Auto Finance Ltd (BAFL), has entered into a tie-up with Godrej GE
Appliances, Korean consumer durables conglomerate LG and air-
conditioning major Blue Star to finance their consumer durables. Bajaj
Auto Finance Ltd has come out with a scheme a low downpayment plan to
aggressively push sales of its parent company. The low downpayment
scheme is being launched by BAFL, along with its earlier 9 per cent
interest finance scheme.

 1999 - Bajaj Auto Finance has gone in for dematerialization of its share and
joined the National Securities Depository Ltd.
BAFL's tie-up with BPL to finance all its consumer durables except
refrigerators is aimed at synergising its existing business and adding value
for its customers.
BAFL has regional tie ups with Daewoo's in Punjab, Voltas in Andhra
Pradesh, Sharp in Maharashtra and Carrier Aircon in Gujarat, some of
which could be upgraded to national tie ups.

 2000 - The Credit Rating Information Services of India Ltd (Crisil) on March 6
Reaffirmed the EAAA rating for the fixed deposit programme of Bajaj
Auto Finance Ltd (BAFL). The company's Rs10-crore commercial paper
programmed has been assigned P1+ rating.

 2002-Bajaj Auto Finance Ltd has informed that the Board has decided to
Reappoint Mr Dipak Poddar as Managing Director of the Company, for a
further period of five years.

 2003 -Approves to voluntarily delist the Equity Shares from Pune Stock
Exchange Ltd & The Stock Exchange Ahmedabad, in accordance with the
provisions of SEBI (Delisting Securities)- Guidelines 2003

 2004-Ties up with Bajaj Auto Finance for finance scheme on Intel

Pentium 4 PC.
 HE HOLDS DIRECTORSHIPS IN THE FOLLOWING
PUBLIC LIMITED
COMPANIES APART FROM BAJAJ AUTO FINANCE
LTD.
 Bajaj Auto Ltd.
 Bajaj Auto Holdings Ltd.
 Bajaj Finserv Ltd.
 Bajaj Holdings & Investments Ltd.
 Bajaj Electricals Ltd.
 Catalyst Finance Ltd.
 Conquest Investments & Finance Ltd.
 Econium Investments & Finance Ltd.
 Lineage Investments Ltd.
 Maharashtra Scooters Ltd.
 Sidya Investments Ltd.

He holds 16,000 Shares in the Company.

 NEED OF THE STUDY
OBJECTIVES OF THE STUDY
 3). NEED OF THE STUDY

The twentieth century is the era of instant buys. Research indicates that 60% of the cars
bought in the last decade were through finance. The consumer is besieged with so many
offers that it becomes impossible for him to decide which is the best. Consumers have a
wide range of choices when financing their automobile purchase. In some cases, buyers
use “off-site financing”—they obtain a loan directly from a finance company, bank or
credit union. Once a buyer and a vehicle dealership enter into a contract and the buyer
agrees to a vehicle price, the buyer uses the loan proceeds from the lender to pay the
dealership for the vehicle. Another common type of vehicle financing is “dealership
financing,” offering consumers the convenience of vehicles and financing in one place.
Dealerships have relationships with a variety of banks and finance companies, allowing
them to offer a large range of financing options to consumers with varying types of credit
histories. Additionally, from time to time, dealerships may offer manufacturer-sponsored
low rate programs to buyers.

The vehicle financing industry is highly competitive. As in any other competitive

industry, consumers would be wise to shop around for the financing package that makes
the most sense to them. Financing such a major purchase is an important decision, and
should be taken seriously.

Hence, this research project is taken to understand the basic procedure of auto financing
and to study the customer satisfaction level with special reference to Bajaj Auto Finance
Ltd. in Agra city.
 4). OBJECTIVES OF THE STUDY

 To study the vehicle financing procedure at Bajaj Auto Finance Ltd.

 To do a comparative study of selected auto finance companies and
consumer satisfaction level for selected auto finance companies.
 To suggest the measures for achieving better customer satisfaction
and market share.
LITERATURE REVIEW
 5). LITERATURE REVIEW

 Whitepapers.techrepublic.com, 2005:- Auto Finance, a colossal business bridge

between two verticals Manufacturing - Auto and Finance has its own integrated set of
challenges and few among are, managing the Market Gaps between Direct and
Indirect Financing and converting this Gap potential into Business opportunities and
profit. A paper on Auto Finance Industry Challenges - Information Technology
Innovative Solutions has analyzed this Market gap paradigm and to bestow IT
application principles to serve this business need.
 Business Standard, (August 2008):- Two-wheeler sales in the region have dropped
by 25 to 30 percent in the last two months. Auto dealers believe that the prime cause
behind the fall is the hike in interest rates and stricter recovery norms dictated by the
Reserve Bank of India (RBI).The banks have adopted stricter financing procedures,
especially in disbursing loans to small customers. Some of the leading private banks
have even discontinued granting loans for two-wheeler finance.
 Hindustan Times (August 2008):- Most automobile companies have decided to
enter the finance business by either expanding their non-banking finance arms or
through tie-ups with local financers. ICICI, the largest private sector bank in India,
has decided not to provide two-wheeler loan facility through its dealer network as
part of its efforts to cut down expenses. The bank, however, will provide two wheeler
loans at its branches. TVS Motor and Bajaj Auto, two of India’s largest two-wheeler
manufacturers, have almost finalised alternate arrangements to finance their
businesses.
 Economic Times (March 2008):- Bajaj Auto Finance Ltd (BAFL) may spin off its
two-wheeler financing business as a subsidiary of Bajaj Auto after the official
demerger of the group's auto and finance businesses.

 Erik Heitfield & Tarun Sabarwal: - (2008) uses novel data on the performance of
loan pools underlying asset-backed securities to estimate a competing risks model of
default and prepayment on subprime automobile loans. We find that prepayment rates
increase rapidly with loan age but are not affected by prevailing market interest rates.
Default rates are much more sensitive to aggregate shocks than are prepayment rates.
Increases in unemployment precede increases in default rates, suggesting that defaults
on subprime automobile loans are driven largely by shocks to household liquidity.
There are significant differences in the default and prepayment rates faced by
different subprime lenders. Those lenders that charge the highest interest rates
experience the highest default rates, but also experience somewhat lower prepayment
rates. We conjecture that there is substantial heterogeneity among subprime
borrowers, and that different lenders target different segments of the subprime
market. Because of their higher default rates, loans that carry the highest interest rates
do not appear to yield the highest expected returns.

 Thomas J. Watson Res. Center, Yorktown Heights (2007-08), working paper : -

In this paper on issue and concern in internet based financial application : - an
example from an auto finance system has discussed that the Internet is an important
 resource for both business-to-business and business-to-consumer commerce. Its
advantages over private networks are often overshadowed by concerns about using
public networks for commercial transactions. We present a case study that describes
adoption of an Internet-based auto finance system by a financial institution and
multiple auto dealerships. We discuss four issues that we needed to solve in order for
the system to be accepted. These are: the implications of the open nature of the
Internet on existing business-to-consumer relationships; security of enterprise data
and systems; ensuring connectivity across enterprises; and the management of
information assets generated by large volumes of electronic transactions

 Shahidur Rahman (September 10, 2008): - considered that auto finance is a bridge
between manufacturing auto and finance. It has lot of challenges. The author has also
analyzed the market gap paradigm and to bestow IT application principle to serve this
business need.

 Orazio Attanasio(April 2007): - Investigate the significance of borrowing

constraints in the market for consumer loans. The data collected by consumer
expenditure survey on auto loan contracts, the elasticities of loan demand is estimated
with respect to interest rate and maturity and it was found that, with the exception of
high-income. These results are consistent with the presence of binding credit
constraints in the auto loan market.

 REBECCA TONN(Apr. 2008): - Predicts that auto loans could be the next
financeing bubble.Underwriters used to finance cars and trucks for three years, but
since the 1970s the length of the loans has crept up to four, five or six years. Now
seven-year auto loans are commonplace, much like 30-year home mortgages have
slowly but surely replaced traditional 15-year mortgages during the last few decades.
 T. Kanimozhi: - (2008): - Concluded that hire purchase is one of the best option of
vehicle financing for self employed and salaried people in order to fulfill there needs
and to avoid income tax problems. The main reason for the increase in customer
preference towards loan and hire purchase is the cost benefits enjoyed by them.
Henry, Jim: - September, 2007 : - studied and found that the auto finance industory
buzzword for the phenomenon is “full-speture leding” A lot of big non caplines are
getting into it.

 Sanjiv Bajaj, Vice-President Of Bajaj Auto Limited(2008): -Bajaj Auto Limited is

one of India''s largest two-wheeler manufacturers. As the dominant player until the
early 1990s, Bajaj''s market share declined from 49.3% in 1994, to 38.9% in 1999
with the entry of major competitors like Hero Honda. Bajaj has initiated several
measures to regain its market share and strengthen its competitive position. The case
discusses the financial strategy pursued by Bajaj.
DATA COLLECTION &
RESEARCH
METHODOLOGY
 6). DATA COLLECTION & RESEARCH
METHODOLOGY
Research is an Activity or Process or Method or Technique characterized by curiosity/
compulsion. It is application of exact procedure/ scientific methods/techniques
systematically and scholarly to collect data, performing objective analysis for gaining
new knowledge. The present study is a knowledge gaining research.

The study is based upon descriptive analysis of data, which was collected from dealers,
and customers of auto finance.

Data Collection:

Primary Data was collected through a survey of customers and dealers using a
questionnaire.

Secondary data was collected from books, magazines, newspapers, companies’ annual
reports and websites.

Sample Size:

44 customers and 3 dealers of Agra.

Sample Area:

Agra Zone

Tools to be used for analysis:

 Charts
 Graphs
 Tables, etc
Statistical Tool:

 Bar Diagram
 Histo gram
 Weight Average Mean
FINDINGS AND
ANALYSIS
 7). FINDINGS AND ANALYSIS

Q1. DO YOU AVAIL CREDIT FACILITY?

YES 26 59%
NO 18 41%

CREDIT FACILTY

30
FREQUENCY

20

10

0
YES NO

Q2. FROM WHERE DID YOU AVAIL THIS FACILITY?

FAMILY CREDIT 10 23%

FULLERTRON 4 9%
BAJAJ AUTO FINANCE 18 41%
HDFC 8 18%
ANY OTHER 4 9%

FINANCING COMPANY

20
FREQUENCY

15
10
5
0
FAMILY CREDIT FULLERTRON BAJ AJ AUTO HDFC ANY OTHER
FINANCE
Q3. WERE YOU OFFERED FINANCE SCHEME AT DEALERSHIP?

YES 32 73%
NO 12 27%

SCHEME OFFERED BY DEALER

27%

YES
NO

73%

Q4. ARE YOU AWARE OF BAJAJ AUTO FINANCE?

YES 26 59%
NO 18 41%

AWARENESS OF BAJAJ AUTO

FINANCE

30

20

10

0
YES NO
Q5. HOW DO YOU COME TO KNOW ABOUT BAJAJ AUTO FINANCE?

NEWSPAPER 8 18%
DEALER'S POINT 8 18%
RELATIVES & FRIENDS 12 27%
TV OR RADIO 12 27%
ANY OTHER (MAGZINES) 2 5%

SOURCE OF AWARENESS

ANY OTHER (MAGZINES)

TV OR RADIO

RELATIVES & FRIENDS

DEALER'S POINT

NEWSPAPER

0 2 4 6 8 10 12

Q6. DOES THE LOCATION OF BAJAJ AUTO FINANCE CONVENIENT FOR YOU?

YES 30 68%
NO 14 32%

CONVENIENCE

32%
YES
NO

68%
Q7. RANKING OF BAJAJ AUTO FINANCE PERFORMANCE?

EXCELLENT 8 18%
GOOD 16 36%
OK 18 41%
POOR 2 5%

PERFORMANCE OF BAJAJ AUTO FINANCE

20
15
10
5
0
EXCELLENT GOOD OK POOR

Q8. RANKING OF VARIOUS FACTORS FOR BAJAJ AUTO FINANCE (6-

HIGHEST, 1-LOWEST)
.
RANK BASED ON AVG AVG RANK
RATE OF INTEREST 6 2.8
SERVICES 5 3.0
% OF FINANCED AMOUNT 3 3.6
BILLING CHARGES 1 4.5
RECOVERY METHOD 2 3.7
FILE CHARGES 4 3.4

RANKING OF FACTORS

10
8
6
RANK

4
2
0 RATE OF INTEREST SERVICES %OF FINANCED BILLING CHARGES RECOVERY FILE CHARGES
AM OUNT M ETHOD
-2
Q9. DO YOU FIND THE PERSONNEL POLITE & COURTEOUS AT BAJAJ AUTO
FINANCE SHOWROOM?

YES 28 64%
NO 16 36%

POSITIVE BEHAVIOUR OF PERSONNEL

30

20

10

0
YES NO

Q10. EVALUATE THE SALES' PERSONNEL SKILLS FOR EXPLANATION OF

FEATURES OF FINANCE SCHEME.

EXCELLENT 6 14%
GOOD 28 64%
OK 8 18%
POOR 2 5%

SALES PERSONS' PERFORMANCE

5% 14%
18%
EXCELLENT
GOOD
OK
POOR

63%

Q11. WERE THE SCHEME OFFERED TO YOU ACCORDING TO YOUR

REQUIREMENT?
 YES 32 73%
NO 12 27%

SCHEME MEET THE REQUIREMENT

40
30
20
10
0
YES NO

Q12. DID THE VEHICLE DELIVERED TO YOU IN TIME?

YES 36 82%
NO 8 18%

TIMELY DELIVERY OF VEHICLE

40
30
20
10
0
YES NO

Q13. WERE YOU CLEARLY EXPLAINED COST AND OTHER CHARGES

(INSURANCE & REGISTRATION)?
 YES 34 77%
NO 10 23%

EXPLANATION OF CHARGES

23%

YES
NO

77%

Q 14. HOW WOULD YOU RATE OVERALL PERFORMANCE OF BAJAJ AUTO

FINANCE SERVICES?
HIGHLY SATISFIED 4 9%
SATISFIED 28 64%
NEUTRAL 10 23%
DISSATISFIED 2 5%
HIGHLY DISSATISFIED 0 0%

SATISFACTION LEVEL
5% 0% 9%

23% HIGHLY SATISFIED

SATISFIED
NEUTRAL
DISSATISFIED
HIGHLY DISSATISFIED

63%
 8). INTERPRETATION: Demographic Data

AGE GROUP

20-30 YEARS 77%

30-40 YEARS 23%
40 AND ABOVE 0%

AGE GROUP
80%
60%
40%
20%
0%
20-30 30-40 40 AND
YEARS YEARS ABOVE

The data shows that maximum of the respondents (77%) are below 30 years of age.
None of the respondents are above 40 years.
OCCUPATION
BUSINESS 14%
SERVICE 50%
PROFESSION 18%
STUDENT 18%

OCCUPATION

60%
FREQUENCY

40%

20%

0%
BUSINESS SERVICE PROFESSION STUDENT

The 50% of the respondents belongs to service class. Next are the professionals and
students with 18% of total.

GENDER
MALE 91%
FEMALE 9%

Maximum respondents are male as 91%.

 9). INTERPRETATION

 This study was completed with the help of 44duly filled

questionnaires received from respondent, as per the finding
shown in previous chapter of finding & analysis, only 59% of the
respondent use credit facility for buying a vehicle.

 Amongst all the financing companies like Family credit, Fullerton,

HDFC, Bajaj auto finance etc, Bajaj auto finance leads the
competition with 41% out of total respondent.

 TV & radio and friends and relatives are the major source of
information for 54% respondent combinedly.

 As per convenience is concerned, 68% of the respondents find

the location and facility providing by Bajaj auto finance more
convenient than others. Out of 44, 36% of the respondent rated
Bajaj auto finance performance as Good on the scale of
Excellent, Good, Ok, and Poor.

 The rate of interest is most preferred feature of Bajaj auto

finance Ltd, by customer service and file charges are ranked as
2nd and 3rd respectively.

 While studying the behavioral aspect of office personnel in Agra

branch, it was found that 64% of respondents are happy with
the behavior of staff while 36% are dissatisfied.

 64% of the respondent ranked the performance of sale men in

the persecuting the features of scheme as good. 73% of
respondent agree that the schemes offered to them are
according to their need.

 Overall satisfaction level of customer analysis says that 73% of

the customers are in satisfaction zone out of 64% are satisfied
while 9% one in highly satisfied zone. 23% of the respondents
were neutral about this factor while only 5% of the respondents
belongs to dissatisfied zone.
 10). CONCLUSION

This study was done understand the procedure of auto financing by

tanking a special consideration of Bajaj auto finance Ltd, and to
understand the satisfaction level of customers of Bajaj auto finance
Ltd, the study resulted into few impotent conclusions. The customer
are mostly aware of the credit facility provided by Bajaj auto finance
Ltd. They are satisfied with the performance of company as well as it
was found that rate of interest is the most important factor which
attracts customer to approach this company for financing their
vehicles.

All the cost and features related to the transaction as well as product
is clearly explained most of the time.
On a 5 point of overall satisfaction level of highly dissatisfied, most of
the customers rated Bajaj auto finance services as satisfactory
(satisfied).

Thus, this study concludes that Bajaj auto finance is quite known
amongst customer and customers are satisfied with the service of the
company.
 11). SUGGESTIONS

 Company should improve the skills and behavior of staff to a

better level.

 More advertisement and promotional schemes are required to

make people aware of this facility.

 Bajaj auto finance should tap the youngster market with the age
group of 20-30 years.

 It should open more branches in the city.

 It should collaborate with other dealers of automobiles also.

 12). REFERENCES

• Business Standard, Tuesday, 26th August 2008.

• Economic Times, 11th March 2008.
• Hindustan Times, Monday, 11th August 2008.
• http://auto.indiamart.com
• http://whitepapers.techrepublic.com.com
• www.automobileindia.com
• www.bajajfinance.com
• www.moneycontrol.com
• www.surfindia.com
Annexure
 Questionnaire

I am student of B,Com(Hons) in Dayalbagh Educational University. I am doing a survey

of customer satisfaction level of Bajaj Auto finance ltd. customers. I request you to
kindly spare few minutes to answer following questions.

Initials of customer …………..

Age - 20-30 years 30-40 years 40 and above
Occupation: Business Service Profession Student
Gender: Male Female

Q1: - Do you avail the credit facility for buying your two-wheeler?
1) Yes 2) No

Q2: - For where you availed this facility?

1) Family Credit 2) Fullerton
3) Bajaj Auto Finance 4) HDFC 5) Any Other

Q3: - Where you offered financed scheme at the Dealership?

1) Yes 2) No

Q4: - Have you heard of Bajaj auto finance?

1) Yes 2) No

Q5: - How you come to know about Bajaj auto finance?

1) News Paper 2) Dealers Point 3) Relatives & Friend
4) TV & Radio 5) Any Other Please

Q6: - - Is the Bajaj auto finance convenient to take the auto loan?
1) Yes 2) No 3) Can t Say?

Q7: - How do you rank the bajaj auto finance performance?

1) Excellent 2) Good 3) Ok 4) Poor

Q8: - Please rank the following in order of their importance for Bajaj Auto
Finance

1) Rate of interest
2) Services
3) % Of financed amount
4) Billing charges
5) Recovery method
6) File charges
Q9: - Did the personnel polite and courteous at Bajaj Auto Finance showroom?
1) Yes 2) No

Q10: - How well were you explained the futures advantages and benefits of
vehicle by the salesperson?
1) Excellent 2) Good 3) Ok 4) Poor

Q11: - Was the person handling finance knowledgeable & able to offer you a
good scheme meeting your requirement?
1) Yes 2) No

Q12: - Was the vehicle delivered to you at the promised time?

1) Yes 2) No

Q13: - Were you clearly explained about all the cost related to purchase including
Insurance and Registration?
1) Yes 2) No

Q14: - How will you rate Bajaj Auto Finance Services according to following
scale?
1) Highly Satisfied
2) Satisfied
3) Neutral
4) Dissatisfied
5) Highly Dissatisfied