CAR INDUSTRY IN INDIA

INTRODUCTION

The automotive industry in India is one of the larger markets in the world and had previously been one of the fastest growing globally, but is now seeing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011. According to recent reports, India overtook Brazil and became the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, Brazil), grew 16 to 18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars.

As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is the biggest with 35% of the

revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%.Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi, Nissan, BMW,Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citron is about to begin their operations by 2014. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is

based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area.

Nashik has a major base of Mahindra & Mahindra with a UV assembly unit and an Engine assembly unit. Aurangabad with Audi,Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and Peugeot-Citroenplants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida withHonda and Bangalore with Toyota are manufacturing regions around the country. some of the other automotive

MAJOR COMPANIES OF CAR INDUSTRY IN INDIA Maruti Tata Hyundai Honda Ford Audi BMW

OBJECTIVES OF THE STUDY

How many cars they have? Which brand of car they own? Why they bought their present car? Did they consider resale value of particular brand while purchasing their car? Are they satisfied with the existing features of their car? Are they satisfied with after sale services of their brand car? Besides features which factor out of the following influences them the most for buying a particular brand? Will they recommend their car to their friends? How often they replace their cars? If, in future they got an opportunity to replace their car will they replace it.

LITERATURE REVIEW
Abhijeet Singh and Brijesh Kumar (2012) Honda Motors Ltd, is running a program called Good life Passport to Relationship Reward, with an objective to create an innovative environment for interaction between Hero Honda and its customers. Members of this program are given a magnetic card in which all information is stored and this card is swiped when using any service at a showroom or workshop and it works like a loyalty benefit card. Abhijeet Singh (2011) Tata Motors uses a customer relationship management and dealer management system (CRM-DMS) which integrates one of the largest applications in the automobile industry, linking more than 1200 dealers across India.CRM DOS has helped Tata Motors to improve its inventory management, tax calculation and pricing. This system has also proved to be beneficial to dealers because it has reduced their working capital cost. Arvind Saxena(2010) Director and Board member (marketing and sales), Hyundai Motor India (HMIL) No company in automobile sector can fight competition on price. Companies need to have the right product, distribution, CRM and after sales service network to grow. Biswajit Mahanty and Virupaxi Bagodi (2006) The success of two wheeler manufacturers in India depends on the competitive advantage gained by them through after sales service and providing and maintaining customer satisfaction in the face of rapid changes in technology is a difficult task, which can be overcome by timely addition of capacity and upgrading of technical manpower and focusing on the CRM programs.

RESEARCH METHODOLOGY

Keeping in view the Car Industry in INDIA which is very crowded and becoming competitive day by day, we decided to study the current scenario of the market.

DATA COLLECTION The following techniques were adopted for data collection : 1. PRIMARY DATA Primary data was collected through face to face interviews while filling up questionnaires. (50 RESPONDENTS)

2.

SECONDARY DATA Relevant information was gathered from magazines, newspapers and project reports that formed the secondary data.

3.

COMMUNICATION APPROACH

Face to face interviews was taken as the communication approach since it is a better method in cases where slight probing is required.

SCOPE
The scope of the study covers almost all categories of cars. The whole appraisal of cars has been done from the angle of customer satisfaction. Any substitutes of cars like buses, metro, two wheeler, metro, or local buses have not been considered.

LIMITATIONS
The probable limitations of this study are as under : 1. The first and foremost limitations was time constraint which was only one months, but still efforts have been made to put the picture as clear and candid as possible. 2. Samples were randomly selected as per convenience so error is bound to creep in the observation. 3. The conservative attitude of the respondents was a limiting factor in gaining information.

SURVEY AREA
The main emphasis of the study was the city of Ludhiana.

SAMPLING
SAMPLE SIZE A sample size of 50 consumers was chosen, but due to incompletely filled questionnaires and unwillingness and carelessness on the part of the respondents. This sample size was based upon time and affordability approach.

SAMPLING TECHNIQUES Disproportionate stratified random sampling technique has been used in sampling due to the following reasons : 1. 2. It provides information about parts of the universe. It provides help in gaining precision through stratification.

DATA ANALYSIS AND INTERPRETATION

1.

How many cars do you have? Table No.1 Particulars 1 car 2 cars 3 cars 4 cars No. of Respondents 15 10 10 15 %age 30% 20% 20% 30%

30% 30% 25% 20% 15% 10% 5% 0% 1 car 2 cars 3 cars 20% 20%

30%

4 cars

Fig. No.1 Interpretation: The above graph shows that out of 50 respondents 30% have one car, 20% have 2 cars,20% have 3 cars and 30% have 4 cars.

2.

Which brand of car do you own? Table No.2 Brand Maruti Tata Hyundai Honda Others No. of Respondents 30 5 5 5 5 %age 60% 10% 10% 10% 10%

Fig. No.2

70% 60% 50% 40% 30% 20% 10% 0%

60%

10%

10%

10%

10%

Maruti

Tata

Hyundai

Honda

Others

Interpretation: The above graph shows that out of 50 respondents 60% prefer maruti brand and rest brands have been preferred equally 10%

3.

Why you bought your present car? Table No.2 Particulars Family need Increase in disposable income Better safety on roads Suits to your life style and personality Other No. of Respondents 35 10 0 0 5 %age 70% 20% 0% 0% 10%

Family need 0% 0% 20% 70% Suits to your life style and personality Other 10% Increase in disposable income Better safety on roads

Fig. No.2

Interpretation: The above pie chart shows that out of 50 respondents 70% buy cars to fulfill family needs, 20% people buy cars due to their increase in disposable income and 10% buy cars due to other reasons.

4.

Did you consider resale value of particular brand while purchasing your car? Table No.4 Particulars Yes No No. of Respondents 30 20 %age 60% 40%

40%

Yes No 60%

Fig.No.4

Interpretation: The above pie chart shows that out of 50 respondents, 60% consider and rest 40% does not consider resale value of particular brand while purchasing their car.

5.

Are you satisfied with the existing features of your current car? Table No.5 Particulars Yes No No. of Respondents 35 15 %age 70% 30%

30%

Yes 70% No

Fig.No.5

Interpretation: The above graph shows that out of 50 respondents 70% people are satisfied with the existing features of their cars and rest 30% are not satisfied.

6.

Are you satisfied with after sale services of your brand car? Table No.6 Particulars Yes No No. of Respondents 35 15 %age 70% 30%

30%

Yes 70% No

Fig. NO.6

Interpretation: The above pie chart shows that out of 50 respondents,70% people are satisfied and rest 30% are not satisfied with the after sale services of their brand car .

7.

Beside features which factor out of the following influences you must for buying a particular brand? Table No.7 Particulars Family Friends or Relative Recommendations Personal Needs Exchange Offers Other No. of Respondents 10 15 5 15 5 %age 20% 30% 10% 30% 10%

30% 30% 25% 20% 15% 10% 5% 0%

Family Friends or Relative Recommendations Personal Needs

30%

20%

10%

10%

Exchange Offers

Other

Fig. No.7 Interpretation: The above graph shows that out of 50 respondents, 20% people are influenced by family pressure,30% by their friends or relatives,10% by their personal needs,30% by exchange offers and 10% by other needs.

8.

Will you recommend your car to your friends? Table No.8 Particulars Yes No No. of Respondents 30 20 %age 60% 40%

40% Yes No

60%

Fig. No.8 Interpretation: The above pie chart shows that out of 50 respondents, 60% will recommend and rest 40% will not recommend their cars to their friends.

9.

How often you replace your car? Table No.9 Particulars 6 months 1 year 1-2 years More than 2 years No. of Respondents 5 7 8 30 %age 10% 14% 16% 60%

10% 14% 6 months 1 year 1-2 years 60% 16% More than 2 years

Fig No.9 Interpretation: The above pie chart shows that out of 50 respondents, 60% people replace their cars after 2 years, 16% people generally replace their cars after 1-2 years, 14% replace their cars after 1 year and rest 10% people replace their cars after 6 months.

10.

If, in future you got an opportunity to replace your car will you replace it? Table No.10 Particulars Yes No No. of Respondents 40 10 %age 80% 20%

20%

Yes No

80%

Fig. No.10 Interpretation: The above pie chart shows that out of 50 respondents, 80% people would replace their car in future if they get an opportunity and rest 20% will not prefer to replace their cars.

RESULT AND FINDINGS

We found out that : Out of 50 respondents 30% have one car, 20% have 2 cars,20% have 3 cars and 30% have 4 cars. Out of 50 respondents 60% prefer maruti brand and rest brands have been preferred equally 10% Out of 50 respondents 70% buy cars to fulfill family needs, 20% people buy cars due to their increase in disposable income and 10% buy cars due to other reasons. Out of 50 respondents, 60% consider and rest 40% does not consider resale value of particular brand while purchasing their car. Out of 50 respondents 70% people are satisfied with the existing features of their cars and rest 30% are not satisfied. Out of 50 respondents,70% people are satisfied and rest 30% are not satisfied with the after sale services of their brand car . Out of 50 respondents, 20% people are influenced by family pressure,30% by their friends or relatives,10% by their personal needs,30% by exchange offers and 10% by other needs. Out of 50 respondents, 60% will recommend and rest 40% will not recommend their cars to their friends. Out of 50 respondents, 60% people replace their cars after 2 years, 16% people generally replace their cars after 1-2 years, 14% replace their cars after 1 year and rest 10% people replace their cars after 6 months. Out of 50 respondents, 80% people would replace their car in future if they get an opportunity and rest 20% will not prefer to replace their cars.

CONCLUSION

In the end we can conclude that :

Most no. of people are having one car Most of people prefer Maruti Suzuki brand of cars Major part of population in India is buying car to fulfill their family needs. Most of the people do consider resale value of particular brand while purchasing their car. Majority of people are satisfied with the existing features of their current car. Large no. of people are satisfied with after sale services of their brand car. Most no. of people do recommend their car to their friends and they also replace their car generally after two years.

REFERENCES

Website: www.scribd.com www.slideshare.com www.google.com www.ask.com www.docshare.com

Book: Textbook fundamental of Information Technology By S.K. Kakkar

QUESTIONNAIRES

Submitted To:Mr. Vijay Chabbra Submitted by:Akshit Sood (941) Sachin Sharma (969) Yatish Gupta (978)

ACKNOWLEDGEMENT
Apart from our efforts, we take this opportunity to express our profound gratitude and deep regards to our teacher, Mr. Vijay Chhabra, for exemplary guidance and constant encouragement throughout the course of this project. We are very grateful to our Principal, Dr. R.L. Behl for providing us with an environment to complete our project successfully. Finally, an honourable mention goes to our parents and friends for their understanding and support in completing the project.

INDEX Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. Introduction Objective of the study Literature Review Research Methodology Data analysis and interpretation Results and findings Conclusions Bibliography Sample Questionnaires Topics Page No. 1-3 4 5 6-7 8-17 18 19 20