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 Table Of Content

Sr.No. Particulars Page No.

01 Introduction 07

02 Literature Review 16

03 Research Problem 19

04 Scope Of study 22

05 Objectives 24

06 Hypothesis 26

07 Research Methodology 33
• Method Of Data Collection 34
• Sampling Method 35
• Tools and Techniques Use 45
• Limitation 46
08 Data Analysis and Interpretation 48

09 Findings and Conclusion 50

10 Bibilography 52
5
 EXECUTIVE SUMMARY
In this project i tried to find the segmentation of cars done by Maruti and its effect on customer.I
also tried to study the sales trend followed by Maruti.In our study we had followed different
method to find and analyze the data we are using primary data as well as secondary data. Before
our study lots of study is being done but no one had tried to research on Maruti Suzuki
segmentation and its effect on sales trend. We had used the questionnaire method to study the
Maruti sales to end we had asked question to dealers.

In pune Maruti has six showroom we visited them and tried to know that what arethe cars which
they are selling more what is the sales trend of Maruti which kind of carscustomer is demanding
and why. What modification should Maruti make in its cars to take and go over competitors ? We
are alsousing secondary data to the sale strend of Maruti Suzuki. In which we had studied the
Maruti shares condition in the market. Its profitand lose its market share and many more. We had
analyzed where Maruti having an edgeover competitor and where it is lacking behind. How it
would improve its sales trend. What are analyzing the future prospects of Maruti in Indian cars
market.
6
INTRODUCTION
7
 INTRODUCTION

Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company,
accounting for over 50 per cent of the domestic car market. The company offers full range of
cars from entry level Maruti Alto to stylish hatchback Ritz, A-star, Swift, Wagon R, Estillo and
sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. The company is a subsidiary of
Suzuki Motor Corporation of Japan. The Japanese car major held 56.21% stake in Maruti
Suzuki as on 31 December 2017.

The company is engaged in the business of manufacturing, purchase and sale of motor vehicles
and spare parts (automobiles). The other activities of the company include facilitation of pre-
owned car sales, fleet management and car financing. They have four plants, three located at
Palam Gurgaon Road, Gurgaon, Haryana and one located at Manesar Industrial Town,
Gurgaon, Haryana.

The company has nine subsidiary companies, namely Maruti Insurance Business Agency Ltd,
Maruti Insurance Distribution Services Ltd, Maruti Insurance Agency Solutions Ltd, Maruti
Insurance Agency Network Ltd, Maruti Insurance Agency Services Ltd, Maruti Insurance
Agency Logistics Ltd, True Value Solutions Ltd, Maruti Insurance Broker Ltd and J J Impex
(Delhi) Pvt Ltd.

Maruti Suzuki India Ltd was incorporated on February 24, 1981 with the name Maruti Udyog
Ltd. The company was formed as a government company, with Suzuki as a minor partner, to
make a people's car for middle class India. Over the years, the company's product range has
widened, ownership has changed hands and the customer has evolved.

In October 2, 1982, the company signed the license and joint venture agreement with Suzuki
Motor Corporation, Japan. In the year 1983, the company started their productions and
launched Maruti 800. In the year 1984, they introduced Maruti Omni and during the next year,
they launched Maruti Gypsy in the market. In the year 1987, the company forayed into the
foreign market by exporting first lot of 500 cars to Hungary.

8
In the year 1990, the company launched India's first three-box car, Sedan. In the year 1992,
Suzuki Motor Corporation, Japan increased their stake in the company to 50%. In the year
1993, they introduced the Maruti Zen and in the next year they launched Maruti Esteem in the
market.

In the year 1995, the company commenced their second plant. In the year 1997, they started
Maruti Service Master as model workshop in India to look after sales services. In the year
1999, the third plant with new press, paint and assembly shops became operational. In the year
2000, the company launched Maruti Alto in the market.

In the year 2002, Suzuki Motor Corporation increased their stake in the company to 54.2%. In
January 2002, the company introduced 10 finance companies (8 + 2JVs) in Mumbai. Also, they
found one new business segment, Maruti True Value for sales, purchase and trade of pre-owned
cars in India. In the year 2005, the company launched the first world strategic model from
Suzuki Motor Corporation 'the SWIFT' in India. In the year 2006, they launched WaganR Duo
with LPG and also the New Zen Estillo.

During the year 2006-07, the company commenced operations in the new car plant and the
diesel engine facility at Manesar, Haryana. In November 2006, they inaugurated a new
institute of Driving Training and Research (IDTR), which was set up as a collaborative
project with Delhi Government at Sarai Kale Khan in South Delhi.

During the year 2007-08, the company signed an agreement with the Adani group for
exporting 200,000 units annually through the Mundra port in Gujarat. They launched Swift
Diesel and SX4- Luxury Sedan with Tag line 'MEN ARE BACK' during the year. In July
2007, the company launched the new Grand Vitara, a stylish, muscular and 5-seater in the
MUV segment. The company changed its name from Maruti Udyog Ltd to Maruti Suzuki
India Ltd with effect from September 17, 2007.

During the year, the company entered into a joint venture agreement with Magneti Marelli
Powertrain SpA and formed Magneti Marelli Powertrain India Pvt Ltd for manufacturing
Electric Control Units. Also they entered into another joint venture agreement with Futaba
Industrial Co Ltd and formed FMI Automotive Components Ltd for manufacturing Exhaust
Systems Components.

9
During the year, the company signed pact with Shriram City Union Finance Ltd, a part of
Shriram Group, Chennai, to offer easy, transparent and hassle-free car finance to its customers,
particularly in semi urban and rural markets. The agreement is a joint initiative of the two
companies for providing competitive car finance to people in Tier-II and Tier-III cities across
the country.

During the year 2008-09, the company launched a new A2 segment car, branded the A-star in
India and in Europe as the new Alto. They raised their production capacity to a landmark 1
million cars. In June 2008, the company launched Maruti 800 Duo, which is a dual fuel (LPG-
cum- petrol) model car.

In April 2009, the company revealed new Ritz K12M engine at Gurgaon plant. During the year
2009-10, the company raised the capacity of their next generation K-series engine plant to more
than 500,000 units per annum. They started work on an additional plant of 250,000 cars per
annum capacity at Manesar. The company launched their fifth world strategic model, the Ritz.
They also came out with the spacious multi purpose van, Eeco and the all new WagonR with a
K-series engine.

During the year 2010-11, the company launched refreshed variants of WagonR and Alto with
the new K-series engines. SX4 was offered with a Super Turbo Diesel engine. The Company
launched the Suzuki Kizashi, India's first sports luxury sedan. It sports a 2.4 litre engine and is
endowed with best-in-class features. The company developed in-house i-GPI (Integrated Gas
Port Injection) Technology and launched factory-fitted CNG variants for five of its models:
Alto, WagonR, Eeco, Estilo and SX4.

During the year 2011-12, the company started the work to commission another diesel engine
plant of 300,000 annual capacity in Gurgaon. At the 2012 Delhi Auto Expo, the Company
unveiled the Ertiga - Life Utility Vehicle. The global premiere of Ertiga marks the entry of the
company in the UV segment, which will help further strengthen its leadership position in the
industry. The company also showcased the XA-Alpha, a concept compact SUV.

During the year 2012-13, the company started the work on the Gujarat site. During this period,
Suzuki Japan decided that India will now be responsible for the export markets of Africa, the
Middle East and its neighbouring countries. The company has to ensure adequate

10
sales and marketing arrangements in these countries, with the help of Japan. It also has to
determine the products to be manufactured for these markets and, if necessary, establish
assembly plants overseas. This decision will greatly help the growth of its exports.

In 2014-15, Maruti launched a successful sedan, Ciaz model cars. The S-Cross creates a new
market segment which combines the comfort and luxury of a sedan with the power and styling
of an SUV. Both these products have been enriched with a number of premium features and
enhanced performance levels. In January this year, the Hon'ble Chief Minister of Gujarat, laid
the foundation stone of the Gujarat plant.

During the year 2015-16, two new products introduced by the company, namely the Baleno and
the Brezza, exceeded its expectations of demand, and both cars had a waiting period of 6-7
months. On 4 October 2016, Maruti Suzuki announced that its premium hatchback Baleno has
crossed cumulative domestic sale of one lakh units.

On 18 May 2016, Maruti Suzuki announced the launch of an updated version of its small car
Alto 800 with more attractive front design, fresh interiors, vibrant colours, higher fuel
efficiency and new features.

On 27 May 2016, Maruti Suzuki announced that it will proactively and voluntarily recall
75,419 Baleno cars (petrol and diesel) manufactured between 3 August 2015 and 17 May 2016
to upgrade the airbag controller software. Of these, 15,995 Baleno diesel cars manufactured
between 3 August 2015 and 22 March 2016 will also be attended to for inspection and
replacement of a faulty fuel filter. The Baleno cars covered in the recall include 17,231 units of
exports. In addition, 1,961 DZire diesel cars (only AGS variant) will be attended to for
inspection and replacement of a faulty fuel filter.

On 27 May 2016, Maruti Suzuki announced that it had begun exports of its Light Commercial
Vehicle Super Carry to South Africa and Tanzania. At that time, the company said that it also
plans to export the vehicle to SAARC nations in due course.

On 6 July 2016, Maruti Suzuki announced that its popular premium mid-size sedan Ciaz has
crossed one lakh cumulative sales mark in the domestic market. The car was lunched in October
2014. On 28 July 2016, Maruti Suzuki announced that its premium retail showroom

11
under the NEXA brand has completed one year of operations. At that time, the company said
that NEXA is expected to contribute 15% of its sales by 2020.

Maruti Suzuki announced increase in prices of select models ranging from Rs 1,500 to Rs
5,000 (Ex-showroom Delhi) with effect from 1 August 2016. It also announced increase in
price by up to Rs 20,000 for Vitara Brezza and up to Rs 10,000 for Baleno. The company
attributed the price hike to factors like segment wise demand, foreign exchange movements
and strategic objectives of the company. On 12 August 2016, Maruti Suzuki announced that
the cumulative enrollment at its various driving training facilities has touched a record 3
million since it started driving training in the year 2000.

On 30 August 2016, Maruti Suzuki announced the launch of limited edition of its most popular
hatchback Swift as Swift Deca. On 1 September 2016, Maruti Suzuki announced the launch of
its first light commercial vehicle (LCV) Super Carry in the domestic market. The company has
invested about Rs 300 crore towards the development of the Super Carry.

On 15 September 2016, Maruti Suzuki announced that it has signed a Memorandum of

Understanding (MoU) with Uber India to train over 30,000 individuals/Uber partner-drivers in
safe driving over a period of 3 years.

On 23 September 2016, Maruti Suzuki announced that it has attained cumulative exports of 15
lakh vehicles. These vehicles have been exported to over 100 countries including Europe, Latin
America and Africa.

On 15 November 2016, Maruti Suzuki announced that it will set up a first-of-its-kind

Industrial Training Institute in Mehsana, Gujarat.

On 25 November 2016, Maruti Suzuki announced the launch of limited edition of its small car
Wagon R as Wagon R Felicity with an array of new features. On 9 December 2016, Maruti
Suzuki India signed a Memorandum of Understanding (MoU) with Ola, the online cab
aggregator, to train aspiring Ola driver-partners. The company said that its partnership with Ola
will create entrepreneurship opportunities for aspiring Ola drivers-partners.

On 13 January 2017, Maruti Suzuki India announced the launch of IGNIS, its premium urban

12
compact vehicle for the millennials. The company, alongwith its suppliers, has invested over Rs
950 crore towards the development of IGNIS. IGNIS has 98.5% localization.

On 27 January 2017, Maruti Suzuki announced the launch of a new VXi+ variant of its small
car WagonR with a wide array of new features including Projector headlamps, stylish front grill,
alloy wheels and side skirts, Dual Airbags, Anti-Lock braking System with Electronic brake -
force distribution system, as optional. Maruti Suzuki announced a price hike ranging from Rs
1,500 to Rs 8,014 (Ex-showroom Delhi) across models with effect from 27 January 2017 due to
increase in commodity, transportation and administrative costs.

On 30 January 2017, Maruti Suzuki inaugurated its 200th premium retail showroom NEXA in
the country at Hyderabad. At that time, the company said that NEXA is now present in 121 cities
and had already sold over 1.85 lakh vehicles since its inception. On 15 February 2017, Maruti
Suzuki announced the launch of limited edition of its compact multi purpose vehicle Ertiga.

On 20 February 2017, Maruti Suzuki announced that its two Smart Hybrid vehicles viz. Ciaz
SHVS and Ertiga SHVS have crossed cumulative sales of 1 lakh units. Smart Hybrid Vehicle by
Suzuki (SHVS) is a technology which uses an integrated starter generator and an advanced high
capacity battery to supplement the engine's power. SHVS technology makes it more efficient
than the conventional set-up and saves energy while decelerating/braking.

On 2 March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle
Vitara Brezza crossed one lakh cumulative sales milestone in the domestic market. On 27
March 2017, Maruti Suzuki announced that its popular urban sports utility vehicle Vitara
Brezza has clocked sales of over 1.1 lakh units in the first year of its launch.

On 31 March 2017, Maruti Suzuki announced that its popular midsize sedan Ciaz will be sold
exclusively through its premium retail outlets NEXA from 1 April 2017. On 16 May 2017,
Maruti Suzuki announced the launch of updated version of its sedan Dzire.

On 25 May 2017, Maruti Suzuki announced that it has decided to set up automobile skill
enhancement centres across 15 government-run Industrial Training Institutes (ITIs) across 11
states over a period of three months.

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On 1 July 2017, Maruti Suzuki announced that it has passed on the entire benefit of the goods
and services tax (GST) rates on vehicles to its customers and as a result the ex-showroom prices
of Maruti Suzuki models were cut by upto 3% with effect from 1 July 2017. However, owing to
withdrawal of tax concessions on mild hybrid vehicles, the price of Smart Hybrid Ciaz Diesel
model and Smart Hybrid Ertiga Diesel has increased.

On 7 July 2017, Maruti Suzuki announced that the National Company Law Tribunal (NCLT)
has approved the scheme of amalgamation of Maruti Suzuki India Limited and seven of its
wholly owned subsidiary companies viz. Maruti Insurance Business Agency Limited, Maruti
Insurance Distribution Services Limited, Maruti Insurance Agency Network Limited, Maruti
Insurance Agency Solutions Limited, Maruti Insurance Agency Services Limited, Maruti
Insurance Agency Logistics Limited and Maruti Insurance Broker Limited.

On 3 August 2017, Maruti Suzuki announced the introduction of auto gear shift option in its
top-end Alpha variant of its premium urban compact vehicle IGNIS. On 10 August 2017,
Maruti Suzuki announced a complete revamp of its True Value operations, designed to make
pre-owned cars more attractive and transparent to customers.

On 30 August 2017, Maruti Suzuki announced transformation of its retail network across India.
The new showrooms, christened Maruti Suzuki ARENA, will sport modern looks and offer a
warm, friendly and comfortable environment to the customers. On 29 September 2017, Maruti
Suzuki announced the launch of parent Suzuki Motor Corporation's global ECSTAR brand of
lubricants, coolants, and car care products in India.

On 1 October 2017, Maruti Suzuki announced the launch of new version of its premium urban
offering S-Cross. Maruti further said at that time that it has sold over 53,000 units of S-Cross in
the domestic market and exported over 4,600 units since its launch in August 2015.

On 5 October 2017, Maruti Suzuki announced the launch of a refreshed version of its compact
car Celerio. Maruti further said at that time that Celerio has achieved the three-lakh sales mark
within a short span of less than four years. On 1 December 2017, Maruti Suzuki announced the
launch of the bold, sporty and trendy CelerioX compact car. The model is an extension of
Maruti's Celerio compact car.

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On 27 December 2017, Maruti Suzuki announced that it has entered into an agreement with the
Government of NCT of Delhi to set up state-of-the-art Automated Driving Test Centres across
12 locations in the city. The company will invest approximately Rs 15 crore for setting up the
driving test centres. While Maruti Suzuki will set up the centres and maintain them for three
years, the Transport Department will conduct the tests and issue driving licenses to eligible
applicants.

Maruti Suzuki announced price increase ranging from Rs 1,700 to Rs 17,000 (Ex-Showroom

- Delhi) across models with effect from 10 January 2018, owing to increase in commodity
and other administrative and distribution costs.

At the time of approval of Q3 December 2017 results on 25 January 2018, the Board of
Directors of Maruti Suzuki discussed and approved a revision in the method of calculating
royalty payment to Japanese parent Suzuki Motor Corporation that would result in lower
royalty payments for Maruti Suzuki for new model agreements starting the Ignis. This would be
implemented after approval by the Board of Suzuki Motor Corporation.

On 7 February 2018, Maruti Suzuki showcased new compact car ConceptFutureS at Delhi Auto
Expo 2018 in New Delhi. On 8 February 2018, Maruti Suzuki announced the launch of an
updated version of its premium hatchback Swift at Auto Expo 2018 in New Delhi. The all-new
Swift comes offers the acclaimed auto gear shift technology for the convenience of customers.
Built on Suzuki's innovative 5th generation HEARTECT platform, the all-new Swift has a
superior power to weight ratio with an improved acceleration performance.
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LIRERATURE REVIEW
16
 LIRERATURE REVIEW

Review of literature forms an integral as well as an essential part of modern research studies. No
research study is considered complete unless an extensive literature review is made by the
researcher. The basic purpose of undertaking this exercise is to find the research gap between,
studies conducted so far or literature available, and also to finalize precisely the topic of research
and to get insight into the research topic selected for study. In this sense this exercise becomes a
sort of exploratory research

According to Venkataramani, the “Project report for Manufacture of passenger cars and light
utility vehicles”, dated 27. May 1982 revealed that among the major goals associated with
Maruti were: 1. Modernization of the Indian automobile industry; 2. Production of fuel efficient
vehicles; 3. A large output of motor vehicles; 4. Import of foreign technology and equity
participation by the collaborator 5. Production of a “people’s car” suited to Indian driving and
climatic conditions 6. Creating potential for earning foreign exchange by export of Maruti
products; and 7. Generating employment through establishment of ancillary industries . Although
there was an earlier intention to produce light commercial vehicles and medium sized-cars, the
idea of producing a fuel efficient small car prevailed. In 1981, Maruti’s board of directors
decided that the vehicle to be manufactured would be a small car and that the engine size should
be kept below one liter (Venkataramani, 1990). The decision was driven by the rationale that the
Maruti project could only succeed if mass production was realized. This, in turn, was tightly
linked to the car’s affordability and cost of operation. The decision was further supported by
market research findings as listed below. “The survey of potential purchasers drawn from nine
cities which then accounted for 60% -70% of the country's car owning population revealed that
90% of car use was within a city, the individual car owner travels 800 km a month on an average
and that the average number of passengers in a car was four because cars were largely used for
office-going purposes. Also, only 20%-30% of the respondents indicated a desire to 88 purchase
a car in the next two years at the existing prices, but for a new price range of between Rs.40.000
to Rs.55,000 the proportion of likely buyers went up to 43%-45%. Finally, the survey revealed
that the two most important factors considered while purchasing a car were fuel efficiency and
initial capital

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cost. Of the total sample, 37% preferred a small car and only 18% preferred a medium-sized car.
"This strengthened our belief that the earlier decision to go in for a medium-sized family car was
wrong. So we decided to manufacture a small car," says Bhargava. In the light of these
requirements, Japanese manufacturers turned out to be the more attractive partners: Once the
Japanese entered the race, the Europeans were almost automatically eliminated. The Peugeot and
Volkswagen offers were reportedly over 50% more expensive than the Japanese offers. Apart
from the obvious Japanese superiority in small-car technology, a related reason for the Maruti
Udyog team concentrating on Japanese offers was that they had derivatives such as vans, a pick-
up truck and a four-wheel drive jeep — all using the same engine and transmission as the car.
This offered Maruti Udyog the prospect of catering to a larger market and made possible mass
production and economies of scale since the cars and derivatives could be made with the same
engine. But the factor which decisively swung the balance in favor of the Japanese was the
promise that Indo-Japanese collaboration offered a chance to introduce the work culture and
management.Ultimately, the Indian Government selected Suzuki as a partner because the
company convinced with its small car experience and product portfolio – particularly Suzuki's
796cc, SS80F model (see table given below) – the projected manufacturing cost and product
price, and its flexible approach in the negotiations.
18
RESEARCH PROBLEM
19
 RESEARCH PROBLEM

A. Suzuki Motors Corporation had to recall certain models of vehicles such as the Grand Vitara
and XL 7 which were manufactured in the year 2005 2006. A problem was detected in the
adjuster pulley for the drive belt which has the outer portion made up of plastic and operates the
power steering pump and air conditioner compressor. Repeated heat stress caused the outer body
made up of plastic to weaken and pieces of the pulley broke off. The company found out that the
broken pieces of pulley can get caught between the pulley and the drive belt which can cause the
drive belt to come off resulting in increased effort to steer the vehicle by the driver which in turn
increased the risk of a crash or accidents. The company made a plan to resolve the issues in the
vehicles with this problem and the dealers of Suzuki Motor Corporation replaced the power
steering pump belt tension adjuster free of charge for the customers whose vehicles had the same
defect .

B. Suzukis subsidiary Maruti Suzuki India Limited faced a great challenge to keep its lead in
the small market segment of automobiles in India. The company was facing severe production
issues which resulted in long gestation period for some of the top selling brands such as MAruti
Suzuki Swift, Maruti Suzuki Swift Desire and a few other models. These production issues
could have lead to loss in the market share of Maruti Suzuki in India however the company
dealt with the situation by working with their vendors to increase the supply of the materials
and the company was able to deal with the backlogs of its normal sales on many model.

C. In early 2010, Maruti Suzuki India Limited announced to recall 100,000 A-Star hatchback
models as a problem for fuel leakage was detected in the vehicle. The company recalled all the
models of A-Star hatchbacks and replaced the gaskets for the affected vehicles free of charge .

D. In 2007, the company recalled its Swift models in the UK over safety concerns. In Suzuki
Swift, a problem was detected that the parking brake cable end could detach from the trailing
brake shoe lever rendering the parking brake ineffective. This resulted in improper or no
functioning of the hand brakes in Swift. The company recalled the affected models and replaced
the cables .

E. The company also recalled its Grand Vitara 1.9 Diesel Model from the UK Market as a
risk of fire was detected in the vehicle. Due to the improper design of the intercooler inlet
hose, there was a possibility that the mixture of air with fuel may be incorrect within the
diesel particulate filet assembly which could cause the diesel particulate filter to ignite. In
order to deal with this situation, the company replaced the intercooler house and fitted a
modified version of the same in order to avoid the risk of fire that was detected .

F. The American Suzuki Motor Corporation recalled the Suzuki Forenza model manufactured in the
year 2007 as on certain vehicles, the front seat belt tongue was not latching into the buckle and in
few cases, even the locked tongue used to pop out by low strectching force. These malfunctions of
the buckles prevented the users to use the seat belt while driving

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which increased the risk of injury in a crash. The dealers of the company were authorised to
replace the front driver and passenger seat belt buckles with the improved part without
charging the customer .

G. Suzuki Motor Corporation determined that a few models of LT-A400K6, LT-A400FK6 and
LT-F400FK6 eiger ATVs might have been assembled with missing welds on the upper and
lower front suspension arms mounting brackets on the left side of the ATVs frame which could
break off during riding and the driver can lose control of the ATV. This could possibly result in
a crash causing injury to the driver. In order to deal with this issue, the dealers of the company
inspected for missing welds on the suspension arm mounting bracket which takes a short span of
time. If the suspension arm mounting brackets were missing welds, the dealer will get them re-
welded by a certified welder and this was done free of charge for the users of these models of
Suzuki Cycles .
21
SCOPE OF STUDY
22
 SCOPE OF STUDY

Scope of study in relation with Maruti Suzuki Cars are as follows,

➢ This study is helpful in assessing the requirements of four wheelers buyers.

➢ The importance of customer buying behavior need to be understood by

all the manufacturer.

➢ The rise in per capita income and rise in consumerism has helped four
wheelers manufacturers in introducing new models.

➢ This study reveals in depth market analysis of what consumer needs.

➢ This study focuses on customer needs when they purchase any car.
23
OBJECTIVES
24
 OBJECTIVES
The chief engineer of Suzuki’s Baleno project, Kunihiko Ito, says the Japanese auto maker
wants to put the "wow” factor in each of the cars it makes. On Monday, Indian unit Maruti
Suzuki launched the feature-packed Baleno, pricing it below the Hyundai Elite i20 and
Honda Jazz. It says the company’s aim in India is to capture the No. 1 position in the
premium hatchback segment with the Baleno. Edited excerpts:

We would like to have more products in the premium segment. As for the Baleno, volumes in
India are very critical to make the project viable. Over a period of time, we saw the Swift
becoming a mainstream vehicle in India and in the case of the global market, the size of the B
segment called for a bigger vehicle and Swift was a relatively smaller vehicle. While this
demand came out from the international market, we realised that the Baleno will have potential
in India too.

The compact hatchback segment was evolved by Maruti Suzuki with the Swift. The competition
came in later, and we are still there and with the largest share in that segment.

Over the last eight years, we saw a shift in the (perspective of) consumers. There are people
who are looking for more aspirational products, which are slightly bigger, yet compact and
feature-packed. He or she wants a premium offering, with gadgets and technology and is
willing to pay a price for it. So competition brought in vehicles in subsequent phases to address
this need. We also saw a potential in that segment and that’s why we have launched the
Baleno. The potential is significant to grow in urban areas.

We would like to take the No. 1 position in the segment. The model is a key part of our
strategy to achieve our mid-term goal of 2 million vehicles. So, increasingly we are moving
into segments where there is growth potential.

Styling, performance and fuel efficiency. As a package it is better than competition. It scores
very well on comfort and convenience thanks to the usage of gadget. In terms of space it is much
bigger than competition. Best in class fuel efficiency. It is lighter than competition, and it is
lighter than the Swift by 70 kgs ... We have a safety package which you can start off from the
beginning. In this vehicle we are trying to create a balance... it is a total package for style and
performance.

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HYPOTHESIS
26
 HYPOTHESIS

While studying the performance evaluation of automobile industry with reference to Maruti and
Hyundai in Marathwada region, the following hypotheses were considered by the researcher. The
following 03 hypotheses are tested with the help of statistical tools like ANOVA, Chi square test &
Levene’s test. Those hypotheses have been explained as follows:

Hypothesis 1. There is Positive Association Between Price and Customer Satisfaction of

the auto products of both the auto companies i.e. Maruti & Hyundai.

H0: There is No Association between Price and Customer Satisfaction of the auto products of
both the auto companies i.e. Maruti & Hyundai.

Ha: There is Positive Association between Price and Customer Satisfaction of the auto
products of both the auto companies i.e. Maruti & Hyundai.

For the above Hypothesis the researcher would like to test whether there is any
association/relationship between “Price of the Car” and Customer Satisfaction.

Level of Significance = 0.05

Levene’s test

One important part of the output is a summary table of Levene's test. This test is designed to
test the null hypothesis that the variances of the groups are the same. In this case Levene's test
is testing whether the variances of the groups are significantly different.

Table 6.26

Test of Homogeneity of Variances

Price of Vehicle

Levene Statistic Df1 Df2 Sig.

2.731 3 471 .043

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Here the Levene's test is not significant (i.e. the value of sig. is less than 0.05) hence the
researcher can say that the variances are insignificant. It would means that we had violated
the assumptions of ANOVA.

Main ANOVA

SPSS/PASW Output shows the main ANOVA summary table. The table is divided into
between group effects (effects due to the experiment) and within group effects (this is the
unsystematic variation in the data). The between the groups effect is the overall experimental
effect (Association between Price and Customer Satisfaction of the auto products of Maruti &
Hyundai). In this row researcher explained the sums of squares for the model (SSM).

The sum of squares for the model represents the total experimental effect whereas the mean
squares for the model represent the average experimental effect. The row labelled within
groups give details of the unsystematic variation within the data. The table tells us how much
unsystematic variation exists (the residual sum of squares, SSR). It then gives the average
amount of unsystematic variation, the residual mean squares (MSR). The test of whether the
group means are the same is represented by the F-ratio for the combined effect between the
groups. The value of this ratio is 3.271. Finally SPSS/PASW tells us whether this value is
likely to have happened by chance.

Table 6.27

ANOVA

Price of Vehicle

Sum of Squares df Mean Square F Sig.

Between Groups 573990551626.343 4 143497637906.586 3.271 .012
Within Groups 20664853608037.523 471 43874423796.258

Total 21238844159663.867 475

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The final column labelled sig. indicates how likely it is that an F-ratio of that size would
have occurred by chance. In this case, there is a probability of 0.012 that an F-ratio of this
size would have occurred by chance (that’s less than a 5% chance). Hence, because the
observed significance value is less than .05, the researcher can say that there is positive
association between price and customer satisfaction of the auto products of both the auto
companies i.e. Maruti & Hyundai.

Therefore, researcher rejected the null hypothesis and infers that there is Positive
Association between Price and Customer Satisfaction of the auto products of both the auto
companies i.e. Maruti & Hyundai.

Inferences –

As per the responses collected from car owners in Marathawada Region, the ANOVA Test
statistics rejected the Null Hypothesis. It means there is positive association between Price
and Customer Satisfaction of the auto products of both the auto companies i.e. Maruti &
Hyundai. Thus, the research hypothesis is rejected.

Hypothesis 2. - There is Significant Association Between Fuel efficiency and Demand for
the auto products of both the auto companies

H0: There is No Significant Association between Fuel efficiency and Demand for the auto
products of both the auto companies.

Ha: There is Significant Association between Fuel efficiency and Demand for the auto
products of both the auto companies.

For the above Hypothesis the researcher would like to test whether there is any
association/relationship between “Fuel Efficiency” and Demand.

Level of Significance = 0.05

29
Levene’s test

One important part of the output is a summary table of Levene's test. This test is designed to
test the null hypothesis that the variances of the groups are the same. In this case Levene's
test is testing whether the variances of the groups are significantly different.

Table 6.28

Test of Homogeneity of Variances

Fuel Efficiency

Levene Statistic df1 df2 Sig.

.369 1 474 .544

Here the Levene's test is significant (i.e. the value of sig. is greater than 0.05),hence the
researcher can say that the variances are significant. It would mean that researcher had
untainted the assumptions of ANOVA.

Main ANOVA

SPSS/PASW Output shows the main ANOVA summary table. The table is divided into
between group effects (effects due to the experiment) and within group effects (this is the
unsystematic variation in the data). The between the groups effect is the overall experimental
effect (Association between Fuel efficiency and Demand for the auto products of Maruti &
Hyundai). In this row the researcher explained the sums of squares for the model (SSM). The
sum of squares for the model represents the total experimental effect whereas the mean
squares for the model represent the average experimental effect. The row labelled within
groups give details of the unsystematic variation within the data. The table tells us how much
unsystematic variation exists (the residual sum of squares, SSR). It then gives the average
amount of unsystematic variation, the residual mean squares (MSR). The test of whether the
group means are the same is represented by the F-ratio for the combined effect between the
groups. The value of this ratio is 6.122. Finally SPSS/PASW tells us whether this value is
likely to have happened by chance.

30
 Table 6.29
ANOVA

Fuel Efficiency

Sum of Df Mean F Sig.

Squares Square
Between Groups 24.986 1 24.986 6.122 .014
Within Groups 474 4.081

1934.465
Total
1959.451 475

The final column labelled sig. indicates how likely it is that an F-ratio of that size would have
occurred by chance. In this case, there is a probability of 0.014 that an F-ratio of this size
would have occurred by chance (that’s less than a 5% chance). Hence, because the observed
significance value is less than .05 the researcher can say that there is Significant Association
between Fuel efficiency and Demand for the auto products of both the auto companies i.e.
Maruti & Hyundai.

Therefore, the researcher rejected the null hypothesis and infers that there is Significant
Association between Fuel efficiency and Demand for the auto products of both the auto
companies i.e. Maruti Suzuki & Hyundai Motors.

Inferences –

As per the responses collected from car owners in Marathawada Region, the ANOVA Test
statistics rejected the Null Hypothesis. It means there is Significant Association between Fuel
efficiency and Demand for the auto products of both the auto companies i.e. Maruti &
Hyundai.
31
Hypothesis 3. Demand of Vehicle Depends upon Resale Value H0: Demand of Vehicle not Depend
upon Resale Value Ha: Demand of Vehicle Depend upon Resale Value For the above Hypothesis the
researcher would like to test, whether there is any association/relationship between “Resale Value”
and “Demand” Level of Significance = 0.05 Table 6.30 Cross Tabulation Demand of Vehicle is
depend on Resale Value Total Yes No Do you think that there is good resale value of your vehicle
Yes 118 283 401 No 11 64 75 Total 129 347 476 The cross tabulation shows the frequency of each
response from the car owners with respect to resale value & demand of vehicle. 279 Table 6.31 Chi
Square Test Value Df Asymp. Sig. (2-sided) Pearson Chi-Square 6.967 1 .008 Likelihood Ratio
7.730 1 .005 Fisher's Exact Test Linear-by-Linear Association 6.952 1 .008 N of Valid Cases 476
The two-sided asymptotic significance of the chi-square statistic is 0.008, This Means that Demand
of Vehicle positively Depend upon Resale Value. Therefore, the researcher rejected the null
hypothesis and infer that Demand of Vehicle Depend upon Resale Value. InferencesAs per the
responses collected from car owners in Marathwada Region, the Chisquare statistics rejected the Null
Hypothesis. It means the Demand of Vehicle Depends upon Resale Value.
32
RESEARCH AND METHODOLOGY
33
 RESEARCH AND METHODOLOGY

Method Of Data Collection

In this project I have used Survey Method to complete my research regarding Maruti Suzuki
Cars.

The Survey method is the technique of gathering data by asking questions to people who are
thought to have desired information. A formal list of questionnaire is prepared. Generally a non
disguised approach is used. The respondents are asked questions on their demographic interest
opinion.

Advantages of Survey Method

1. As compared to other methods (direct observation, experimentation) survey yield a
broader range of information. Surveys are effective to produce information on socio-
economic characteristics, attitudes, opinions, motives etc and to gather information for
planning product features, advertising media, sales promotion, channels of distribution
and other marketing variables.

2. Questioning is usually faster and cheaper that Observation.

3. Questions are simple to administer.
4. Data is reliable
5. The variability of results is reduced.

6. It is relatively simple to analyze, quote and interrelate the data obtained by survey
method

Disadvantages of Survey Method

1. Unwillingness of respondents to provide information- This requires salesmanship on
the part of the interviewer. The interviewer may assure that the information will be kept
secret or apply the technique of offering some presents.

2. Inability of the respondents to provide information- This may be due to

a. Lack of knowledge
b. Lapse of memory
c. Inability to identify their motives and provide “reasons why?” for their actions
3. Human Biases of the respondents are there, for eg: “Ego”

4. Symantec difficulties are there - it is difficult, if not impossible, to state a given

question in such a way that it will mean exactly same thing to each respondent.
Similarly two different wordings of the same question will frequently produce quite
different results.
34
Sampling Method

Sampling is a process used in statistical analysis in which a predetermined number of

observations are taken from a larger population. For sampling of Maruti Suzuki Cars I did a
survey related to Maruti Suzuki Cars and other brands at par of Maruti Suzuki. .

Survey was conducted on group of people through electronic media.i.e. Monkey Survey.

Questions which I have asked to group of people in my survey are as follows along with the
data.Data made with the help of answers given by group of people to questions raised.

Q1.)Are you aware of brand name Maruti Suzuki?

YES

100%

According to my survey 100% people were aware of Maruti Suzuki.

35
Q2.)Which is your favorite car in Maruti Suzuki?

Most Preferred Product

Alto Zen Estilo Swift Wagon r Asta

r

0%
0%

7% 7%

86%

According to my survey most favorite car in Maruti Suzuki is as follows,

Alto– 7%

Zen Estilo – 0%

Swift– 86%

Wagon R – 7%

Astar - 0%
36
Q3.) Which particular brand of Maruti Suzuki are you using currently?

70.00%
60.00%

50.00% Alto

40.00% Zen Estilo

Swift
30.00% Eco
Wagon R
20.00% Astar

10.00%

0.00%

According to my survey most used Maruti Suzuki Cars are as follows,

Alto – 11 %

Zen Estilo – 0%

Swift– 63%

Wagon R – 18%

Eco - 5%

Astar - 3%

37
Q4.)Why are you giving preference to Maruti Suzuki Cars?

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

GOOD
FACILITIESQUALITY SERVICE PRICE GOOD DESIGNBETTER MILEGE

According to my survey people give more preference to Maruti Suzuki Cars are as follows,

Good Facilities – 32%

Quality Service – 25%

Price – 18%

Good Design – 11%

Better Mileage – 14%

38
Q5.)Which company is your second choice while buying a car?

Brand

Ford
Mahindra 14%
16%
Volkswagon

14%
Chervole Hyundai
t

4% TATA 41%

11%

According to my survey ,

Ford – 14%

Hyundai – 41%

TATA – 11%

Chervolet – 4%

Volkswagin – 14%
Mahindra – 16%

39
Q6.)Reason for your choice?

MILEAGE

14%

BRAND NAME
PRICE
27%
11%

FEATURES

48%

According to my survey,

Brand Name – 27%

Feature – 48%

Price – 11%
Mileage – 14%

40
Q7.)What is your opinion about Maruti Suzuki Cars?

AVERAGE POOR

2% 0%

GOOD
32%
EXCELLENT

39%

VERY GOOD

27%

According to my survey,

Excellent – 39%

Very Good – 27%

Good – 32%

Average – 2%

Poor – 0%
41
Q8.)The car Maruti Suzuki if we upgrade to sedan whether you will opt for the same?

NO

16%

YES

84%

According to my survey,

Yes – 84%

No – 16%

\
42
Q9.)Which is your favorite design of Maruti Suzuki Cars?

70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%

ALTO ZEN ESTILO SWIFT WAGON R ASTAR ECO CELERIO CIAZ

According to my survey follows,

Alto – 5 %

Zen Estilo – 5%

Swift – 58%

Wagon R – 5%

Eco - 0%

Astar - 0%
Celerio – 0%

Ciaz – 28%

43
Q10.) What kind of changes expecting segment of Maruti Suzuki Cars?

45.00%

40.00%

35.00%
44

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

According to my survey follows,

Increase Mileage – 20%

Add New Facilities – 39%

Reduce Price – 20%

Introduce Diesel Model – 11%

Changes in Design – 9%
 INCREASE
MILEAGE

ADD NEW
FACILITIES

REDUCE
PRICE

INTRODUCE
DIESEL
MODEL

CHANGES
IN DESIGN
Tools and Techniques Used

To motivate consumers-Price Promotions; Prize Promotions – free prize draws,

sweepstakes/games, and competitions; Self-liquidating Offers; Free Mail-ins; Partner
Promotions; Charity Promotions; and Tailor-made Promotions are used.

1. Price Promotions:

These kind of promotions have not much ingenuity. Indian print and electronic media are often
full of such ads and these promotions include – Up to 51% off, i.e., cutting down price through
discounts. In India this is very popular especially at the end of season sale ( Shoppers Stop 51%
off Sale begins Jan 21 Reliance fresh in its ‘save save save’ ad on 21st January, 2012 in Times of
India not only gives prices of different items but also claims “Get Double The Difference, if
found cheaper”.

Festival Season accounts for almost 70% of retail sales in the country. Tata’s Croma, electronics
store, offered 5% cash-back, besides running a promo for big spenders (over 25,000) with all
expenses-paid holidays package to Switzerland and necklace worth Rs 1 lakh

for winners.
2. Prize Promotions:

Prize promotions include free prize draws, sweepstakes, and competitions .

3. Premium Promotions:

In this kind of sales promotion, the benefit comes in the form of an item of merchandise.

Premium can be in any form.

4. Off-The-Shelf Offers:

There are some offers which come up again and again because they work again and again.
45
Limitations

The study was a good learning process and was a very satisfying experience. Yet there were
several factors that limited this researcher’s plan to study as he desired. These can be
summarised as follows:

Access to Documentation & Information

• The relevant data required for this study was not readily available at most of the
companies. Documentation of all the process followed during design and
development is not a regular practice in most of the product companies.

• The feedback mechanism of completion of products and processes was not available as a
standard practice with companies.

• Due to high secrecy ( intellectual property rights issues ) of the companies, R&D and
Design activities, the information shared was limited regarding the processes followed
for a particular product category. The present research was therefore based on general
processes rather than specifics.

Time :

• Response time due to professional commitments of the company executives is poor.

Great deal of follow up is required to keep track of the information which is wanted
for this type of study.

• Overall time available to conduct the surveys, and for the study was insufficient to
reach companies.

• Handling three sectors of the design industry was a challenge for a single person.

• Conducting the research along with the corporate commitments was difficult for
the researcher to handle. This delayed the speed and progress of the activity.

Automotive Industry :

• The R&D and Design executives in the automotive industry are tied up due to

various rules and policies of the companies to share information.

46
 • Data sharing is very limited. It is not the general practice in the corporate culture to
openly and willingly share the information.

• Only three segments of the industry were studied as part of this research.

• Two vehicles per segment were compared to gauge the impact of design.

Bamboo Industry :

• Since there is no major company working with bamboo craft on a commercial scale
the impact of design processes was not able to be analyzed beyond the case under
study .

• The companies, organisations working in the bamboo craft and other crafts ingeneral do
not have structured way of developing the products, It becomes difficult to get required
information. The researcher had to spend time with the people in such organizations to
help them document the process for mutual benefit.

• The Design process deployment experiment, which was part of the action• research
was conducted only at one location in Pune.

Resources:

• A major limitation related to resources to carry such a study involving the three
sectors. Funding was a very important limitation.

• Another factor was lack of books and reports in Pune. Books on design research in
Europe and USA were scarce in libraries in the city. A very negligible number of
Indian authors have penned their experiences on design process.
47
DATA ANALYSIS AND
INTERPRETATION
48
 DATA ANALYSIS AND INTERPRETATION

The analysis of data collected from primary source is presented in the form of tables and
interpretation is given in description as required. Analysis refers to the course of findings out
answers to the question that had arises to the study. Interpretation finds out relationship among
the available data and the variables.

I have collected data for my project named Maruti Suzuki Cars. Data includes comparision
between the cars in past and present.Data collected by considering interest of customers related to
their likes and dislikes.

According to my data which I have collected by the way of question and answers.Questions raised
to group of people and even answers related to specific questions.My data probably states that
maruti suzuki car users are more attracted towards the performance and new updated features given
and installed in car.
49
FINDINGS AND CONCLUSION
50
 FINDINGS AND CONCLUSION

Automobiles have become the ba.sic necessity of life. With rising income levels, the standard of
living of people has been increasing. There are a lot of consumers who are buying cars and there
is more and more diversion towards buying behavior in cars they are competitively priced and
there is a lot of variety in terms of brands, models, colors etc.

With the rapid increæ;e in car brands, consumers really have to think hard while making a
choice or deciding for the Maruti Suzuki car to be purclwsed. Due to increæ;ed competition,
more and more work is to be done by the marketing department so to understand the purchase
behavior of the consumers. Therefore this study would help the companies in understanding the
factors that influence the purclwse decision of the consumers and their expectations from the
passenger cars.

After the survey, it can be concluded that Matuti Suzuki cars have a very good tilture in
India. Market share of Maruti Suzuki cars is increasing very rapidly. Brands like Hyundai,
Honda, and Tata are the most preferred cars.

Also it can be concluded that majority of the respondents are satisfied with the Maruti
Suzuki.

SUGGESTIONS
To improve the working and performance of the Maruti Suzukicars, some of the suggestions
are given below:

To increase the sales of Maruti cars, it is must focus on its fuel efficiency, looks and
interiors of the car

To position Maruti Suzuki cars, Maruti must differentate it from Hyundai, which
people consider it to be its nearest competitor.
51
BIBILOGRAPHY
52
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