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ACKNOWLEDGEMENT
My first and foremost thanks to God Almighty who helped me to complete my
dissertation work. I take this opportunity to express my profound gratitude to my
faculty guide *************** whose support and suggestions were immense in
enabling the successful completion of this dissertation report.
Finally, my hearty thanks to my friends for their moral support, suggestions and
encouragement.
***************
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CONTENTS
Declaration
Certificate from Faculty guide
Acknowledgement
S. No. Chapter Name
1. Introduction
2. Literature Review
3 Industry Structure
4. Objective & Research Methodology
4.1-Objectives
4.2-Scope of the study
4.3-Research methodology
5. Result and Discussions
6. Conclusions and findings
7. Recommendations
References
Annexure
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CHAPTER - 1
INTRODUCTION
The main aim of the study is to analyze the strategies being adopted
in the Indian small passenger Car Industry. A strong car brand can
create significant value in the automotive industry. The price
consumers expect to pay for otherwise identical luxury vehicles can
vary as much as $ 41301 depending on the car's brand. For mass-
market cars, brand helps determine which products a consumer
considers buying. Furthermore, superior brands extend their halo
across every model of vehicle within the brand. It's no surprise that
most auto manufacturers make brand positioning and development a
key item on their marketing agenda.
Because of the prominent role that brand positioning and
development play in many auto manufacturers' business strategies,
we conducted extensive research and analysis to better understand
how consumers think about car brands. The study analyzes the set of
factors which provide valuable insights into consumer brand
perceptions.
The consumers have a simple yet sophisticated understanding of
what differentiates car brands. Notwithstanding automakers'
attempts to distinguish their brands on the basis of lifestyle or
emotional imagery, consumers evaluate brands in terms of their
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earned reputation for product excellence relative to their total
ownership cost. Consumers' perceptions are based on their
accumulated direct and indirect experience with the products that
constitute those brands.
These perceptions are obviously not perfect. Some brands'
reputations exceed or fall short of their demonstrable product
attributes. But, as a rule, consumers' beliefs are accurate, stable, and
relatively immune to manipulation. In contrast to the situation with
other consumer goods, in which equity is created substantially
through advertising, automotive brand perceptions change primarily
through consistent and sustained changes in the underlying product
portfolio.
The race for Indias small car market has begun. But only those
among the Big Four who get all their strategies right will win this
unforgiving contest. The prize: not just the largest automobile
segment, but also survival in this market .Now they are lined up for
the last lap. With market India becoming a minefield for the worlds
largest auto-makers, the Formula 1 has become brighter than the red
lights that have stopped them in their tracks so far -only the small car
will enable endurance. Bumper-to-bumper, therefore, the combatants
are accelerating towards the small-car luxurious segment.
Though Indias small car rally puts it way ahead of Europes annual
compact car production of 5 lakhs units, it is still a distant second to
the 1.7-1.8 million mini cars cranked out per year by Japan. The
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Indian unit now faces an onslaught from global competitors rushing
into the country with ambitious expansion plans. Honda, Toyota,
Hyundai, General Motors and others have announced plans to make
small cars in India.
Small cars (comprising models like Maruti 800, Alto, Santro, Indica,
WagonR, Swift, Getz etc.) have enjoyed faster growth this year than
the overall growth of just fewer than 22%. Small car exports have
clocked over 84,000 units till October 2008. Last year, small car
exports touched 93,844 units in April-November. As for domestic
sales, the compact car curve has not been evenly steep year-on-year.
It grew from 3, 97,682 units in April-November 2007-08 to 7, 32,700
units last fiscal, up just 11.6%.
The demand for cars is dependent on a number of factors. These
factors can be studied as under: - Per capita income, Price of cars,
Availability and cost of car financing schemes, Introduction of new
models, Incidence of duties and taxes, Depreciation norms, Fuel cost
and its subsidization, Public transport facilities.
Since 1998, there has not been the smallest lull in the Indian
automobile market. It has taken a giant leap in a last decade to
become the hottest automobile market in the world. Almost every car
manufacturer in the world wants to have an outlet here. Its not just
the possibility of dumping, a large number of chassis thats attracting
them here, but the frugal engineering that everyone wants to
exploit to reduce the costs and be competitive in price-sensitive
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markets. India is already manufacturing close to 1.5 million cars
every year and new cars are being planned almost every day. The
Hyundai i10 became the first car to be sold worldwide but
manufactured exclusively in India. This is certainly going to establish
India as an auto hub in this part of the world. Pune was recently
tagged as Detroit of India when GM and Volkswagen drove down to
Chakan-Talegaon (near Pune); and also because of the existing large
footprint of auto majors and the ancillaries. On the dark side, the
infrastructure has been struggling to keep up with the pace of
automobile penetration.
(Source1:
http://www.businessweek.com/globalbiz/content/sep2006/gb2006092
6_662135.htm)
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CHAPTER 2
LITERATURE REVIEW
Indias top-gear run in small cars this year has made it the second
biggest compact car producer in the world after Japan.
Says Jagdish Khattar, MD, Maruti Udyog: The strict CO2 emission
rules due in Europe by 2010 is prompting global OEMs to look for
small car options from markets like India to offset the fuel efficiency
and other averages in their existing stable. Thats why more and
more companies are looking to build compact car manufacturing
facilities.1
Suzuki has already announced plans to make a new small car in India
for domestic sales and exports for itself and Nissan. Renault has also
announced plans to set up a 5-lakh unit facility with M&M, in which
Nissan is expected to become a partner. Honda has announced that it
will set up another facility for a small car (the new Jazz) in India, while
Toyota is said to be thinking of a second facility dedicated to a
compact model.1
Hyundai is expanding its capacity, while GM is setting up a new plant
in Maharashtra for small car Spark. Ditto for Volkswagen, which is
setting up a compact car facility near Pune? The small car rush and
the build up of capacity may also have its impact on the global auto
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pecking order, says Arindam Bhattacharya of Boston Consulting
Group. The biggest growth segment in the next five to 10 years will
be the small car in developing markets where many global OEMs are
disadvantaged, he says. That could lead to the ascent of players like
Tata Motors of India and Chery of China.1
Indian automobile industry had an action-packed year with big-ticket
announcements such as excise duty cut for small cars, entry of
German car major Volkswagen and Mahindra's tie-up with Renault,
besides snazzy car and bike launches keeping the sector in top gear
in 2006. The year also saw the release of Automotive Mission Plan
2006-2016, which aims at drawing a roadmap for the auto industry
and doubling the sector's contribution in GDP by taking the turnover
to $145 billion in 2016 with focus on export of small cars, MUVs, two-
wheelers and auto parts.2
But 2006 also had its share of differences, which literally began from
the word go. The much-awaited 8 per cent excise duty cut on small
cars, though cheered companies for a while, ended creating fissures
within the industry as most carmakers, except for leader Maruti,
terming it as a "market distorting measure".
Differential excise duty and a more favourable regime for small cars
were seen to be directly benefiting Maruti, which has the largest
stable of high-demand compact cars. Other companies such as
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Hyundai, General Motors, Honda and Toyota cried foul, demanding
that excise duty be made uniform.2
India: Small Cars Are on a Roll
Fueled by huge investmentand cuts in excise taxthe
subcontinent's small-vehicle market is expected to
double in the next four years
Small is beautiful when it comes to India's car market. Though India's
auto industry is nowhere near as developed as China's, investment is
starting to pour into the small-car segment. Global auto companies
such as Hyundai and Honda and local ones such as Tata Motors and
Maruti Udyog, a subsidiary of Japan's Suzuki Motor, are rushing
forward with plans to launch small car models they hope will click
with India's emerging middle class.
While India is the fabled "back office of the world," Prime Minister
Manmohan Singh's government has big aspirations to build up the
country's manufacturing sector, and small-car manufacturing is a
huge priority. The sector received a big boost in late February when
Finance Minister Palaniappan Chidambaram announced plans to
reduce excise duties on small cars from 24% to 16% to spur
investment.
Small cars already account for 70% of India's total one-million-car
yearly marketa figure that is expected to double in the next four
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years. Around a dozen new small and compact cars, with engine
capacities ranging from 1,000 cc to 1,500 cc, are expected to hit the
market in the next two years in gasoline, diesel, and hybrid-engine
models. India's long-range potential could be impressive. A study by
consulting firms Booz-Allen Hamilton and McKinsey predicts that
India's domestic car market will cross 3.5 million by 2015.
Maruti Udyog, in which Suzuki has more than a 50% stake, is said to
be working at lowering the cost of its base model Maruti 800
currently selling at $4,130to compete with Tata. The company
boasts a portfolio of about 11 brands including the Omni, the Esteem,
and the premium small car Zen; plus Suzuki brands such as the Alto,
WagonR, and Versa, the off-road vehicle Gypsy, and the luxury sport-
utility vehicle Grand Vitara.
Big Japanese automakers such as Toyota and Honda are also looking
at major expansion plans in India. Honda, which established a
motorcycle joint venture in India back in 1984, is aiming to double
auto-production capacity at its local unit, Honda Siel Cars, to 100,000
by the end of 2007.3
Toyota and its subsidiary Daihatsu will together invest $86 million to
make 100,000 vehicles a year at a facility in Bangalore. The capacity
will be doubled by 2010. The company has said it wants to grab a
10% share by the end of the decade. However, it has a long way to
go to catch up with Suzuki Maruti, which controls over 50% of the
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Indian passenger-car market. Automakers of all stripes are attracted
to India, thanks to its galloping economy, increasing disposable
income, and young population. In addition, the small-vehicle segment
is a great avenue into India's sizable rural market.3
P. Balendran, vice-president of General Motors India, points out that
"in terms of volumes, the mini segment remains the largest
opportunity area for manufacturers." General Motors has four
vehiclesChevrolet's Optra, the multi-utility vehicle Tavera, the Aveo,
and the Chevy SRV, a premium "sportsback"available in India. And
the company will launch the hatchback Chevrolet Spark, a refined
version of Daewoo Motors' small car, the Matiz, by next April. General
Motors is investing $300 million in a new plant with annual capacity of
140,000 vehicles.
Volkswagen, which has a huge manufacturing footprint in China, is
also getting serious about India. It has announced plans to invest
$540 million to build a plant to make 100,000 small cars a year for
the Indian market. While not official, there's talk of the western India
state of Maharashtra as the location for the new plant. Its current
assembly operation in that state already produces 25,000 Skoda
Octavias annually.
India car-market leader Suzuki hopes to extend its lead by investing
$650 million to expand, make diesel cars, and set up a new plant in
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Manesar in the northern state of Haryana. The new facility will make a
compact car with global partner Nissan. It plans to double capacity to
1 million vehicles a year by 2010.
Some of that new capacity will be exported to other markets such as
Europe, and Suzuki will see its production costs go lower over time. "If
you have a large production base, any incremental production comes
cheaper," says ABN Amro auto analyst Pramod Amte.
What could spoil this upbeat picture? One big threat would be an
unexpected slowdown in India's economy that would stretch the
pocketbook limits of Indian consumers, who tend to borrow to finance
their car purchases. Also, if India's road infrastructure doesn't
improve fast, that could break growth. But right now, India's economy
is on a strong growth track. Until that outlook changes, automakers in
India will continue to bet big on the small-car segment.3
Reference Sources:
1 http://economictimes.indiatimes.com/articleshow/589352.cms
2 http://ia.rediff.com/money/2006/dec/20auto.htm
3
http://www.businessweek.com/globalbiz/content/sep2006/gb2006092
6_662135.htm
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Summary of the review:
(February 2, 2009 February 18, 2009).
The present study on small segment car is also trying to find out the
Consumer Perception about different features of cars and how Price,
Design/Style, Quality, Fuel Efficient, Easy Availability and Variety are
affecting the sale of cars.
The present automobile business scenario is extremely complex and
some highlights of it are as under:
Ever increasing intensity of competition
More aggressive competitors emerging with greater frequency
Changing bases of competition
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Geographic sources of competition are becoming wider
Niche attacks are becoming frequent
Pace of innovation is rapid
Price competition becoming more aggressive
Product differentiation is declining
Still untapped target market
The marketing strategies are today shifting from the mass marketing
concept to individual marketing concept. Each consumer is different
than the other. This is so because the likes and dislikes of individuals,
demographic characteristics like economic and educational
background, geographical factors etc are different. To effectively
implement this new strategy, companies need to be in constant touch
with their customers and their behaviour patterns. Depending upon
the above said factors, the needs of individuals also change. For
example air travel may be a luxury for the common man but is a
necessity for professionals since it saves time and time is money for
them because of continuously increasing small car segment.
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CHAPTER - 3
INDUSTRY STRUCTURE
In a routine response purchase advertisements and endorsements
play a major role. To change the consumer's behavior in routine
purchase there is a need to give them information and spread
awareness. Of the one million, around 70% of Indias total one million
car market is expected to manifold to double in the next four years.
And with a dozen new models of Mid size cars with engine capacities
between 1,000 cc to 1,500 cc expected to arrive at the market the
long term potential would be fasinating. Indias domestic car market
is expected to cross 3.5 million units by 2015 says a study by firms
like Booz-Allen Hamiltion and McKinsey.
Price Wars
The obstacle in India always is producing low priced cars hence
making it competent and affordable to the gigantic market. Two years
ago Mr. Ratan Tata, Chairman of Tata Motors announced the launch
of a $2,200 priced small car by 2008. This would mean the price war
would get even more aggressive. Also extensive research is
continuously being done by Tata Motors for smaller car production
with its joint venture partner, Fiat. To compete with Tatas 1 lakh car
Maruti Udyog is re-engineering with its base model Maruti 800 to
lower its cost. Maruti 800 is currently selling at $4,130. The company
pride themselves on the 11 brands they produce. Some of their most
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popular produce is Omni, Esteem, among the premium small car,
Zen, Suzuki brands which include Alto, Wagon R, Versa, Gypsy, the
off-road vehicle and the Sports Utility Vehicle Grand Vitara. Honda
and Toyota the two big automakers of Japan are also on its way to a
major expansion strategy in India.
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Attractive Market
The Indian version of the Civic was rolled out by Honda in July of 2006
and by 2010 it is expected that they would have sold 150,000 units.
Because of Indias high growth potential it is a very important market
for Honda.
Toyota and its subsidiary Daihatsu will make 100,000 vechicles a year
at a plant in Bangalore investing $86 million. Further it is said that the
capacity would double by 2010 so that their expected share of 10%
by the end of this decade would be achieved. However with the
presence of the indian automobile giant which has a market share
over 50% in the indian passener car market this seems a rather
difficult task.
With the indian economy galloping, coupled with increasing
disposable income,young population and a large rural market,global
automakers are all in the look out to bite a share of the vast high
potential growth market.
70 % of the Indian population live in the rural sector earning less than
their urban counterparts. This is a vast market to tap and with the cut
on excise duty for the first time small segment cars could be
affordable for these potential buyers. It is also estimated by the
capital, New Delhi, that sales of automobile would rise from $34
billion this year to $145 billion in 2016, if one was to follow these
estimations then auto sales would be 10% of Indias gross domestic
product(GDP).
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The biggest oppurtunity for car manufacturers would be in the small
segment car segment. General Motors who have four premium cars in
India and is launching the hatchback Chevrolet Spark by April 2007.
the Chevrolet Spark would be a refined version of the Daewoo Motors
,Matiz. Also with its $300 million investment in a new plant they plan
to roll out 140,000 unit vehicles annually. Volkswagen which saw
great oppurtunity in China had establshed a huge manufacturing
plant but now they seem to be getting serious about India. Its plan in
India is the invest $540 million to build a plant producing 100,000
units of small cars. Currently they have a assembly operation facility
in Maharashtra which produces 25,000 Skoda Octavias annually.
Doubling Capacity
Hyundai Motors which sells Santo and Getz in the small passenger car
segment is planning on investing $700 million in a new facility
coupled with a engineering and transmission facility in Madras.
Speculation has it that Ford and its Japanese partner Mazda will have
a small car rolled out by the end of the decade for the indian
market. . The Indian auto market is growing rapidly, and we continue
to explore all opportunities for growth. Suzuki the Indian small car
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market leader also plans to extend its reach by investing $650 million
to set up a new plant nearby New Delhi at a place called Manesar to
expand and make diesel cars. And through this facility they plan to
roll out a new small car along with global partner Nissan. Maruti is on
a mission to double capacity to 1 million unit vehicles per year by
2010.
Besides the lucrative small passenger market in India the only
setback would be to see the slowdown in the Indian economy and this
would hit hard on the Indian consumers who stretch their pocket
limits and borrow to finance their car. But until this high growth
scenario changes automobile makers in India will continue to battle it
out in the small car segment.
Market Segmentation
Some key market segments and the dominant market behaviour of
buyers n those segments. Status buyers are - Car is bought primarily
as a status symbol; Brand image associated with the car is very
important; Quality of engineering and attention to finish are very
important, in general, looks and styling are important; Multiple car
owners and light users; usually chauffeur driven; Economy of
operation and costs of maintenance are irrelevant to the purchase
decision. The Mercedes is the absolute top of the line model in this
segment. Till a few years ago the Honda and the Maruti Esteem were
slotted in this segment. Other models that might make a dent in this
segment are GM Opel Astra, and Toyota.
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INDUSTRY ANALYSIS USING PORTER'S FIVE FORCES
Porter's "Five Forces of Competition model views the profitability of
an industry as determined by the five sources of competitive
pressure. These five forces of competition include three sources of
"horizontal" competition - competition from substitutes, the threat of
competition from entrants, and competition from established
producers - and two sources of "vertical" competition - the bargaining
power of suppliers and buyers. The view of the Indian passenger car
21
Mercedes
Benz, BMW
Mtisubhish Lancer,
Ford Fiesta, Honda
Accord, Hyundai
Sonata
Daewoo Cielo, Maruti Esteem, Tata
Sumo, Tata Estate
Opel Astra, Tata Indigo, Hyundai Getz,
Maruti Swift, Ford Ikon, Maruti Versa
Maruti Zen Estiol, Wagon R, Fiat Palieo, Tata Indigo
Maruti 800, Maruti Alto, Hyundai Santo, Tata Indica
Classic Premium
Upper Premium
Lower Premium
Upper
Extended
Compact
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industry from these five angles leading to the expected changes in
the coming years in the structure.
Competition from SubstitutesLOW
Inadequate Public Transportation System: The public
transportation system in India is not only extremely inadequate; it is
notably poor in quality. This scenario is not expected to change
drastically in the next ten years.
Developmental Stage of Electric Cars: Though the major car
manufacturers in the world are currently developing electric cars or
hybrid cars to reduce pollution in the coming years, these
technologies will require considerable length of time to become
commercially feasible in developing nations as the REVA car
experience has demonstrated.
Threat of New EntrantsLOW
Economies of Scale: Being a capital intensive industry, economies
of scale acts as a significant entry barrier. Since, in India, the
economy segment cars are expected to drive volume growth in India
in the coming years, it is extremely important for a manufacturer to
have a model in this segment to reduce his per unit cost.
General Economic Conditions: The recent pull-out of Peugeot is an
example that even a global automobile company could find it
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extremely difficult to operate in India if it faces labour trouble and
problems with its joint venture partner.
Rivalry between Established Competitors HIGH
Highly Concentrated Industry: The Indian car industry is highly
concentrated with Maruti itself accounting for about 49 per cent in
April-June 2006 of all sales.
Diversity of Competitors: The entry of Maruti in 1984 and the
deregulation of the sector in 1993 have been landmark years for the
Indian car industry. India has gradually become the latest battlefield
for global auto majors. The last few years have seen the industry
integrate with the global automobile industry and evolve into being
extremely competitive.
Product Differentiation: One of the key trends observed in the car
industry during the last decade is that the products of different
companies have become increasingly similar especially in the
economy and mid-size segment.
Excess Capacity and Exit Barriers: The entry of numerous players
in the car industry can lead to significant over-capacity. This is likely
to lead to significant price cuts, as companies will need to generate
volumes to cover their fixed costs. The car industry faces high exit
barriers in India due to various government laws, which make it
difficult for a company to shutdown and fire all its employees. Also,
the heavy investments in plants and development of ancillaries have
resulted in high exit barriers.
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Increase in Working Capital Needs: The intense rivalry between
the automobiles companies is resulting in longer credit periods to its
dealers. The substantial over-capacity is resulting in increased
inventory holding. These two factors point towards an increase in
working capital needs of car companies.
Bargaining Power of Buyers HIGH
Buyers' Price Sensitivity: Car buyers in India are extremely price-
sensitive especially in the economy segment and are more willing to
switch brands while intense competition among the companies
requires them to generate volumes.
Relative Bargaining Power: The entry of global players has re-
defined the dealer-customer relationship in India. The present-day
global Indian consumer wants the best value money can buy plus
more.
Availability of Easy Financing: The availability of cheap finance for
the Indian consumer has led to fierce competition among the car
companies and has even led to free gifts being doled out to buyers to
lure buyers.
Used Car Market: The used car market is still in the nascent stage
in India as compared to the developed nations like United States that
has a thriving used car market. A thriving used car market reduces
the ownership period of cars and helps in increasing demand for new
cars. Recently, Mercedes Benz in India was offering discounts of 30-
35% for sparingly used E220s as it had decided to phase out this
model.
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Bargaining Power of Suppliers - LOW
Diminishing Supplier Power: The development of the auto
ancillary industry has brought in the phenomenon of outsourcing of
car parts. However, the large number of competitors for supplying
each part implies that in the coming years, supplier power will
diminish to a large extent except for suppliers who have almost
monopolistic powers like Mico-Bosch. Also, there is an increasing shift
towards reduction in vendor base for a car company, which means
that the chosen suppliers also have to make substantial financial
investments to enhance the quality of their products. Moreover, the
lowering of tariffs will expose the Indian automobile ancillary industry
to fierce competition from better-quality imports. All these factors will
lead to a situation where the automobile manufacturer will have
substantial bargaining power with the suppliers in terms of quality
and pricing of the product.
GENERIC STRATEGIES ADOPTED BY COMPANIES IN SMALL
PASSENGER CAR SEGMENT
Strategic Advantage
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DIFFERENTIATION OVERALL
COST LEADERSHIP
SANTRO
ALTO
INDICA
FOCUS
ZEN ESTILO
Zen Estilo
The market leader MUL is trying to adopt a Focus strategy to
protect Zen from existing competitors.
They are focusing on the customers loyalty aspect towards the
brand.
They are encashing the goodwill which MUL has builds in 20 years
of its existence as a best available and dependable name in Indian
car market.
The entire focus strategy of Zen is build around serving a
particular target (the Maruti Loyal Customers) very well, and each
functional policy is developed keeping this aspect in mind.
Santro
Hyundai has adopted Differentiation strategy by putting Santro
in a frame of technically most advanced and spacious car.
26
M800
Stra
tegic
Targe
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They feel that this strategy would provide insulation against
competitive rivalry because target audiences have lower
sensitivity to price than to quality.
The differentiation strategy would yield higher margins with which
to deal with supplier power and will mitigate, buyers power, as
buyers will lack comparable alternatives in terms of technology
and will be fewer prices sensitive.
They are also trying to differentiate their product by providing an
extra advance Customer Care Centers (CCCs).
Alto
MUL is also adopting the differentiation strategy by
differentiating Alto as the most beautiful and technically advanced
car with more space than other cars.
They are promising more value to customers.
Indica
Telco is following cost leadership by launching Indica at the
lowest price in its segment
Low cost position defends Indica against powerful buyers because
buyers can exert power only to drive down price to the level of the
next most efficient competitor.
Leadership strategy also provides defence against suppliers by
providing more flexibility to cope with increase in input cost.
Low cost position usually also provides substantial entry barriers in
terms of scale of economies or cost advantages.
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It also favours the firm vis--vis substitutes relative to its
competitors in the industry.
Maruti 800
M800 has adopted both differentiation and cost leadership
strategies to penetrate the car market.
It is looking to have a position of cost leader in the industry by
pricing its product a bit lower than other small cars
At the same time, they are differentiating their product by
claiming to be advanced and tough car with different style.
COMPETITOR ANALYSIS
PRODUCT, POSITIONING, STRATEGY & PROSPECT
SANTRO
PRODUCT
Nicknamed as tall boy because of overall height (1590 mm). A
perfect urban run about mobile whose 1086 cc engine with unique
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combination of 4 valve per cylinder gives a comfortable power of
55 BHP and yielding a mileage of 16 km/l with assistance of its
multi point fuel injection system. The design of car is tailor made to
the Indian requirements. Santos durability and engine smoothness
is by far superior to its competitors. Technology is superior and
very much contemporary. It is ergonomic as well as. The power to
wt. Ratio for this car is .0692 giving it a zip while accelerating.
The gearing drawback is of its design and styling with bulging
headlamps and vehicle slats on the grille makes it look rather
grumpy.
THE POSITIONING
From the day Hyundai made a mid-course correction, dumping the
1086 cc car in favor of smaller car, it was certainty that its offering
had to be a complete family car. Yet, given its relative obscurity in
the Indian Market, it had to offer tangible differentiates. That
philosophy has been translated into a superior engine and a spacious
interior while air-conditioning has become a standard feature in all
the 3 versions of the Santro.
The Tall Boy up its creators differentiating strategy; but hold the
price line down. Priced between Rs. 2.99 lakhs (the basic variant
which comes with air-conditioning) and 3.36 lakhs (the loaded model,
which sports a power steering, central-locking, and a defogger), the
Santro is targeted at the Maruti 800-user who desires to graduate to a
superior vehicle. So, it is competes directly with the Zen, whose 3
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models are priced between Rs. 3.66lacs and Rs. 5.19 lakhs. Although
the Zen accounts for 25 per cent of the small cars sold, it is present in
a segment that is growing at 45 per cent per annum. India is in the
initial stages of motorization, and this juncture in its evolution favors
the small car.
THE STRATEGY
Hyundai does not have the advantage of experience but that is not
tempering its aggression. At present, the South Korean manufacturer
has set up a network of 80 dealers besides the exclusive Hyundai
Plazas in Chennai, Delhi, and Mumbai. To preempt breakaways,
should sales betray expectation, Hyundai is not forcing its dealers to
make huge investments: it is lowering their capital burden by
centralizing equipment purchases, leading to cost savings of Rs.22
lakhs per dealer. What might prove more helpful, however, is
Hyundais unique telescoping finance scheme, where annual
repayments will increase the level of affordability by targeting that
section of consumers whose members expect their income-and by
extension, their repayment capacity-to increase as they move up the
career ladder or boost their business.
Its Rs. 2,300-Crore 1.20 lakhs unit-capacity manufacturing facility at
Sriperambudur in Tamil Nadu is Hyundais largest integrated unit
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outside South Korea. India is going to be their sourcing-base for
engine components Since Hyundai makes its own engines and
transmissions, its costs are more controllable than those of say,
Daewoo, which will be importing Semi-Knocked Down (SKD) kits for
its Matiz. With an army of 60 vendors, Hyundai has already achieved
a localization level of 70 per cent compared to Daewoos 45 per cent.
Even Maruti Udyog had a localization level of 25 per cent when it
launched the 800 in 1983. Localization is critical for cost
competitiveness and long-term strategy.
THE PROSPECTS
Despite its clear-cut vision, Hyundais energies are focused on tactical
breakthroughs: sales of 10,000, 65,000, 1.10 and 2 lakhs units
respectively, in 2002-03, 2004-05 and 2006-2007. A lot will depend
on how (Hyundais) competitors price their products. Given an
average price-realization per car of Rs. 3 lakhs, and sales of 35,000 in
year 2- which is less than the companys projections- Hyundais
revenues would be Rs. 1,050 crore.
Assuming an operating margin of Rs. 50,000 per car, the companys
operating profits should top up to Rs.175 crore. Given Hyundais
debt-equity ratio of 1.19:1 on its Rs. 2,300-Crore investment, the
interest cost for year should work out to at least Rs.125 crore, and
depreciation to another Rs. 230 crore. The pay-out, then, will be
Rs.180 crore more than the operating profits. But thats something
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the company has factored in. Nobody has come to India expecting
profits from year one.
Neither will exports butter sales in the initial two years, since the
focus will be solely on the domestic market. But, eventually, Hyundai
is targeting 30 per cent of its sales from exports. Given the low
volumes, will it be able to justify its investment? Hyundai needs a
sales level of 71,000 units to break even. And thats the number it is
expecting in year two. By the year three, the cash profits are
expected to turn into net profits.
INDICA
PRODUCT
It is one of the best looking cars around with an excellent point
quality. The next slashes smiling grille and tall rear headlamps
gives to it one of the best lookers but its interiors are a big
disappointment, with large gaps between shut lines and plastic
looks. Inside derives console and is uncomplicated and the car is
spacious. The 1405cc 75 BHP MPFI petrol engine is good. Also
1405cc diesel engine giving sufficient power of 54 BHP is rather
noisy and unrefined. Without assistance from MDFI system it gives
a satisfactory 15 km/l. One more drawback is 5 speed gear boxes in
standard options of both engine options affecting its engines
smoothness.
POSITIONING
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When Project Indica was launched, Telcos Chief Ratan Tatas brief to
his designers and engineers was simple; make a car that has the
spaciousness of an Ambassador and the price of a Maruti 800,
economy of Fiat. The product was priced below Rs.3 lakhs when it
was launched in December, 1998, so it will compete with almost
every car in the market. TELCO has strong engineering skills in diesel
technology which it can use to offer a different product to consumers.
STRATEGY
If there is one thing that the Indica can rely on, it is parenting Telcos
distribution muscle. With 90 sales-and 290 service-points around the
country, the Light Commercial Vehicle (LCV) and Heavy commercial
Vehicle (HCV) manufacturer has already erected an entry barrier for
new entrants. TELCO reaches even the villages. A new entrant
cannot duplicate such a network and be viable. Only by piggy
banking on Telcos sales infrastructure Indica cannot hope to gain the
cost advantage in the small car segment. That is critical since TELCO
priced the Indica as close to the Zen as possible.
With an investment of Rs. 1,700 crore, the year one ,a huge Rs 85
crore of interest payments (assuming debt-equity ratio of 1:1 and an
interest charge of 10 per cent), and a depreciation charge of Rs 170
crore (at a rate of 10 per cent) and assuming a material cost per car
of Rs.1,25 lakhs, conversion cost of Rs.30,000, depreciation and
interest charges of 30,000, excise duty (40 per cent), and a sales tax
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of Rs. 28,800 (10%), the cost of the Indica would work out to Rs.3,17
lakhs.
PROSPECTS
To break even, Indica must sell 60,000 cars a year. To achieve that,
TELCO is imitating GMs Saturn strategy-creating a company within a
company-and has kept the Indica project independent of the parents
operations, even creating a new distribution channel. It has tied up
with the Hong Kong-based car dealership, Concord, a member of the
Jardine Matheson Group, to set up world-class distribution outlets
across the country. Still, distribution could prove to be Telcos
biggest hurdle.
Already, the company has picked up a 26% stake in Concorde; but
with just 7 Concorde outlets operational, and only 11 more on the
anvil, TELCO, obviously, has to bank on its own dealer network. While
exclusive channels would truly differentiate Indica, they would slim
Telcos margins. A showroom today could cost anything between Rs.
50 lakhs and Rs 5 crore. The returns are always long-term.
MARUTI 800
PRODUCT
A 14 year old national car is now showing its age. It loses very
badly when compared to like of Santro and Matiz. But it is the
cheapest 4 wheeler with nippy performance, effortless steering,
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and top speed of 120 kph and manages to return a mileage of
16km/l. Its 796 cc 3 cylinder engines manage only 45 BHP.
Zen: It was the most happening cars around till recently. An all
carbon 993 cc engine which is close cousin of Esteems engine
gives a spirited performance at 60 BHP and mileage of 15 km/l. The
handling is good along with good acceleration with power to wt.
Ratio of .0625. Even without power assistance Zen is breeze to
drive. Zen automobile gives an excellent 4 speed gear box with
very good durabilitys in even dense metro traffic at the cost of
slightly higher fuel consumption figures.
POSITIONING
To counter competition, Maruti Udyog aims to straddle the small car
price spectrum, from Rs. 2.29 lakhs (the price of the Maruti 800) to
Rs.3.66 lakhs (the price of the loaded Zen D). Apart from the 600-to
1,000-cc range Wagon R, launched in 2000, Maruti Udyog will
introduce 2 models between the Maruti 800 and the Zen to price out
rival labels. The companys future offerings will be differentiated
along price-lines, not just on engine capacity. The splitting up of the
small-car spectrum is inevitable. And car-manufacturers are realizing
that.
STRATEGY
During the last 14 years, Maruti Udyog has systematically built a 154-
dealer-strong distribution and service network, which sells 7 products-
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the Maruti 800, the Omni, the Zen, the Gypsy, the Esteem, the Alto
and the Wagon R. The companys marketing structure has almost
become a one-stop car shop. Undoubtedly, Maruti Udyog offers the
widest choice to customers today. The manufacturer has bolstered
the enviable infrastructure by setting up car-financing facilities-
through tie-ups with Citibank and countrywide finance, to spur sales.
Indeed, half the cars sold by Maruti Udyog in 2005-06 were financed.
Standing at top a fully-depreciated plant, churning out 3.5 lakhs cars
a year, Maruti Udyog has the potential to make mincemeat of the
competition. The reason is Costs. Theres simply no other car-
manufacturer in India today which can match Maruti Udyogs
economies across the value-chain. It has 365 vendors, 154dealers,
and 1,114workshops in 530 cities. New models, then, can be rolled
out quickly and cost-effectively.
PROSPECTS
Maruti Udyogs success hinges on its ability to upset its competitors
sub-compact strategies. Its plant has tremendous cost-cutting
capability, a critical attribute in the tough Japanese market, and one
that will ensure that rivals cannot out price Maruti Udyog. For
instance, the cost of components for the Matiz could workout to
Rs.1.50 lakhs per car, thanks to imports of Rs. 80,000 and locally-
sourced materials worth Rs.70, 000. Factor in a depreciation charges
of another Rs. 20,000, excise duty of 40 per cent (Rs 78,000), and a
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sales tax of 10 per cent (Rs 27,300), and the sticker-price works out
to nearly Rs. 3 lakhs without a margin. Telcos plight is similar,
although the company will have a local content of nearly 95 per cent
to begin with.
If the global economic situation worsens, Maruti Udyog will find
exports which account for 7.88 per cent of the manufacturers sales-
difficult, and, consequently, throw all its weight behind domestic
sales. That will spell bad news for its competitors, who may not be
able to endure in a price war. For, their cost of capital per car is
substantially higher. Hyundais, for instance, is Rs 48,994. The
market leader will leverage everyconceivable strength that it has to
elbow the competition out of the market.
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CHAPTER - 4
OBJECTIVE & RESEARCH METHODOLOGY
4.1 OBJECTIVES OF THE STUDY
The objectives of this research would be to understand:
1. Analyze current trends in Indian car industry.
2. Analyze impact of Small Affordable family car option.
3. Future prospects of small passenger car in India.
4.2 SCOPE OF THE STUDY
To understand the current need of the customers with regard to
countless number of models of small cars in the Indian market.
A well researched analysis showing in-depth about the
customer perception, buying behavior of the Indian small
passenger car customers.
The current and the future scenario of the small passenger car
industry in India.
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4.3RESEARCH METHODOLOGY
The main aim of the study is to find out the consumer buying
behavior, purchase drivers and implication of price war in the mid
size car industry. Along with this the likely strategies of key Indian
players to tackle the competition is also evaluated. The purpose of
the methodology is to describe the research procedure. This includes
overall research design, the sampling procedure, the data collection
method, and the analysis procedure.
A proper methodology has to be carried in order to reach the
objective of the research. All the valuable information and data
required to make this project was collected through personal visit to
primary sources and secondary sources.
After having defined the marketing research problem and developed
a suitable approach, attention must be given to the formulation of a
detailed research design, which will provide pertinent information.
According to (Cooper & Schindler, 2003) when defining research
design, he presents it simply as the framework for a study used in
order to guide the collection and analysis of data.
The study on small segment car industry was both exploratory and
descriptive. Data for the purpose of research has been collected from
both primary and secondary sources.
The study attempted to explore and examine the perception towards
B-segment car industry in light of the changing environment. It also
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attempted to describe what are the expectations of the consumers
for the passenger car manufacturers.
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STUDY METHODOLOGY
DATA COLLECTION
Data collection may range from a simple observation at one location
to a grandiose survey of multinational corporations at sites in
different parts of the world. The method selected will largely
determine how the data are collected. Questionnaires, standardized
tests, observational forms, laboratory notes, and instrument
calibration logs are among the devices used to record raw data.
41
Preliminary Investigation
Secondary data analysis
Qualitative research
Collection of Quantitative data
Measurement and Scaling Procedures
Questionnaire Design
Survey
Sampling Process
Target population
Sample Size
Sampling technique
Analysis of Data
Field Work
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Primary data was collected by the researcher himself by visiting to
various places located in Noida and New Delhi.
Secondary data will be collected from various books, journals,
magazines and the websites of different companies were also
browsed to gain information regarding their strategies.
Sampling Framework for the Survey
Convenience sampling technique was used to collect the data needed
for the study. Tools used for data collection for the research purpose
was a self-developed questionnaire.
Sampling Method - Distributed Random Sampling
Convenience sampling - Small Car Users
Sampling Area - New Delhi/Noida
Sample Size - 200
Sampling Technique - Personal Interview of car owners
Sampling Tool - Questionnaire
Questionnaire
Questionnaires are an inexpensive way to gather data from a
potentially large number of respondents. The questionnaire
containing questions regarding purchasing behaviour of passenger
cars.
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CHAPTER 5
DATA ANALYSIS
The study was done on the sample size of 200. The study was done
on the demographic profile aged between 21-60 years. The response
was taken and then analysed so as to find out results. The sample
size had both single and family people.
Which car do you have?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Maruti Alto 72 36.0 36.0 36.0
Hyundai Santro 28 14.0 14.0 50.0
Tata Indica 44 22.0 22.0 72.0
i10 28 14.0 14.0 86.0
Zen Estilo 16 8.0 8.0 94.0
Other 12 6.0 6.0 100.0
Total 200 100.0 100.0
From the above graph, it is clear that 36% of the sample size is
having Maruti alto as their first preference, & santro, indica, i10, zen
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estilo having 14%, 22%, 14%, 8% & 6% respectively. This shows that
still people are more inclined towards brand marutis best seller car
alto.
Do you relate "Social Recognition" factor with usage of car?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Yes 112 56.0 56.0 56.0
No 88 44.0 44.0 100.0
Total 200 100.0 100.0
From the graph & frequency table, it can be easily judged that 112
people out of 200 are thinking that the car shows their social
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recognition. Other 44% of sample size thinks in the opposite way, i. e.
they do not relate car with social recognition. In India, people still
relate car with the social status.
Who in your opinion, exerted greatest influence on your purchase
decision?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Family Members 112 56.0 56.0 56.0
Friends 36 18.0 18.0 74.0
Advertisements 20 10.0 10.0 84.0
Experts 16 8.0 8.0 92.0
Dealers 10 5.0 5.0 97.0
Others 6 3.0 3.0 100.0Total 200 100.0 100.0
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From the above graph, it is clear that 56% of the sample size
purchase decision still depends on the family members, rest 18%,
10%, 8%, 5% & 3% still influenced by friends, advertisements,
experts, dealers & others.
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& 16 people are still preferring economy, convenience & other
features.
What do you expect from "an economical car"?
Frequency Percent Valid Percent
Cumulative
Percent
Valid High fuel efficiency 96 48.0 48.0 48.0
Less initial cost 36 18.0 18.0 66.0
Low maintenance cost 30 15.0 15.0 81.0
High resale value 30 15.0 15.0 96.0
Other 8 4.0 4.0 100.0Total 200 100.0 100.0
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From the pie chart, 48% people prefer high fuel efficiency, 18% prefer
low initial cost, and 15% prefer low maintenance cost & high resale
value from an economical car. This shows that still people in India are
more inclined towards high fuel efficiency.
Which aspect of "Quality" do you look in your car?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Mileage 72 36.0 36.0 36.0
Brand 40 20.0 20.0 56.0
Safety 22 11.0 11.0 67.0
Service 14 7.0 7.0 74.0
Design 40 20.0 20.0 94.0
Resale value 12 6.0 6.0 100.0
Total 200 100.0 100.0
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From the bar chart it is clear that 72 people out of sample size prefer
mileage, while 40 each prefer brand & design from the quality
perspective. As every individual has his own perception about quality,
this graph mainly shows the various aspects of quality.
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While buying small car which aspect of "Convenience" influenced you the
most?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Good after sales service 98 49.0 49.0 49.0
Availability of car 18 9.0 9.0 58.0
Avalibilty of spare parts 44 22.0 22.0 80.0
Colour choice 30 15.0 15.0 95.0
Other 10 5.0 5.0 100.0
Total 200 100.0 100.0
Above graph shows, 98 out of 200 still think good after sales service
is necessary with respect to convenience, when it comes to buy a
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small car. Also 44 out of 200 think that the availability of spare parts
is one of the crucial factors in buying. This indicates that people still
prefer good after sales service for their car.
If someone wants to purchase a car, what would be your suggestion?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Maruti Alto 56 28.0 28.0 28.0
Hyundai Santro 60 30.0 30.0 58.0
Tata Indica 24 12.0 12.0 70.0
i10 36 18.0 18.0 88.0
Zen Estilo 14 7.0 7.0 95.0Other 10 5.0 5.0 100.0
Total 200 100.0 100.0
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From the above pie graph, it is clearly understood that 30% of sample
size suggest hyundai santro to other people. Also 28% suggest maruti
alto, 18%, 12%, 7% & 5% for i10, tata indica, zen estilo & others
respectively.
What new feature would you expect in your present car?
Frequency Percent Valid Percent
Cumulative
Percent
Valid Fuel Efficiency 52 26.0 26.0 26.0
Maintenance Cost 28 14.0 14.0 40.0
Safety 28 14.0 14.0 54.0
Power & Speed 46 23.0 23.0 77.0
Better after sales
service12 6.0 6.0 83.0
Other 34 17.0 17.0 100.0
Total 200 100.0 100.0
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From the above graph, it is clear that still 26 % people out of sample
size expect fuel efficiency. Also 23% people except power & speed in
their present car. This shows the changing trends in the mindsets of
the Indians as they expect power & speed in their present car, also
14% each expect safety & maintenance cost in the present car.
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Which car do you have? * If someone wants to purchase a car, what would
be your suggestion? Crosstabulation
Count
If someone wants to purchase a car, what would be your
suggestion?
TotalMaruti Alto
Hyundai
Santro Tata Indica i10 Zen Estilo
O
t
h
e
r
Which
car do
you
have?
Maruti
Alto50 18 2 0 2 0 72
Hyundai
Santro0 26 0 2 0 0 28
Tata
Indica6 4 22 8 4 0 44
i10 0 6 0 22 0 0 28
Zen Estilo 0 4 0 4 8 0 16
Other 0 2 0 0 0 10 12
Total 56 60 24 36 14 10 200
From the above crosstabulation, the maruti alto was owned by 72
people, out of which 50 people were suggesting the same to the other
people, 18 were suggesting hyundai santro. Also 28 santro car
owners were suggesting to 26 people to buy santro, 28 hyundai i10
car owners were suggesting to 22 people to buy i10.
This shows the perception of various car owners about their own car.
As maximum of them were suggesting the same brand they have,
this shows their satisfaction with the brand.
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CHAPTER - 6
CONCLUSIONS
The Indian car market currently appears to be at a crossroads, where
car marketers are attempting to change customer perceptions of
their brands and where specific buying motivations appear to be
replacing generalities.
The mindset of the Indian consumer is such that he is delighted if he
buys a pen a little cheaper than his neighbor. Things are, however
slowly changing and customers at the upper end of the market are
now ready to pay for more. I hope that this approach will soon enter
the B-segment car segment maybe not with the same intensity.
Success will largely be determined to the extent a company can
differentiate itself in term of intangibles that go with a car. Thus,
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success could well hinge on the best of bundle of service that a
carmaker can provide.
Family needs reign supreme as a reason for car purchase.
Surprisingly, many car owners bought their car as it suited their
lifestyle and personality.
Family is the focal point of a car purchase. Family needs are exactly
what the B-segment size car should fulfill. The decision to buy a car is
a collective one made by the whole family. The car is bought not to
fulfill the needs of one particular family person but to cater to the
entire family's needs. Therefore the B-segment size car should be a
family car which can satisfy the needs of the B-segment family.
In order to attract these people to a new purchase, companies must
hit them at the above point. It should be projected to fit into the
lifestyle of these people or rather better their lifestyle.
People consulted by car owner/non car owner before car purchase.
Potential car buyers consult family the most. They tend to obtain
information from people already owning the car. The reason could be
that, they are a little apprehensive about the purchase and want to
quench their anxiety. Car owners also tend to consult these people
but their number is appreciably less than the non-car owners.
Although the family is the most consulted, before making a purchase
decision, none of the factors can be ignored.
People already owning a particular car is also consulted by a large
number of potential buyers. Companies should make sure that the
early buyers of the B-segment car are completely satisfied by the
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car's performance. These early buyers act as information sources for
the followers. Any negative publicity on their part may turn away the
potential customers. Dealers are one of the most important sets of
people for companies. These are the people who directly
communicate with the customers. Therefore companies should make
sure that these people are highly motivated, knowledgeable, and
friendly and customer oriented.
The car owners as well as non-car owners are most influenced by
newspaper and magazine ads and reports. Word of mouth publicity
cannot be ignored.
Most of the respondents use personal resources to obtain funds for
the car purchase. Most of these people save money for a long to
collect the required amount. There is lot of emotional attachment
when a car is bought from personal funds and Companies should
duly, provide value for money for people in terms of low maintenance
costs, fuel efficiency etc. A lot of banks are financing for cars. This
concept is new but is catching fast in the big cities. Companies have
tied up with ICICI and Standard Chartered bank to come up with joint
schemes for car finances for the B-segment car.
Accessorized Indians also strongly consider factors such as resale
value, after sales service, and tend to be the only segment that will
buy a new car from a trusted dealership near where they live or work.
This group of consumers also like reading a great deal about the cars
that they are about to buy and are also most likely to pay the most
attention to what experts have to say about their choice of cars.
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It can be seen that nearly half of the car owners want to replace their
existing cars with a B-segment size car. This attitude could be due to
additional features in the new cars, which may attract these people,
or the non-performance of their existing car may compel them to
replace the car.
The price of the B-segment car should be competitive. It should be
within the reach of the common man. Price is the first and major
hurdle, which a customer has to jump over before making a purchase
decision
Too high a price may discourage many potential car buyers and a
very low price may raise doubts about the car" performance
capabilities.
The main reason for popularity of the B-segment car is normal price;
companies should also make the car competitive in terms of price. It
should be easy to drive in traffic conditions and on empty roads,
should have low maintenance cost, should be fuel-efficient and fulfill
B-segment family needs.
CHAPTER - 7
RECOMMENDATIONS
With private and public investments in infrastructure, further
reduction in customs and excise duties, cuts in interest rates
and new credit policies, the demand for automobiles is
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wars in the market and has left customers with various options
to choose from. The majority of people are now straightaway
thinking of buying a new car as their first car purchase. About
61% of the people constitute of those who do not possess any
car and are going for B-segment car purchase. Now thinking
that this is the right time to go for it since the manufacturers
are offering maximum for the minimum price. So, it must
review its pricing strategy every now and then so that it does
not lose to competition.
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Anand M., Ramanathan S.K. and Viswanath R., The New Laws of
Attraction, Business World, 22 January 2007
Kotler P., Keller K.L., Koshy A & Jha M. (2007), Marketing
Management, 12th edition, Prentice Hall.
Mitra, Kushan (2007, Autos Big Boom, Business Today, October 22,
2007
Loudon & Della Bitta (2006: Consumer Behaviour (Concepts &
Applications); McGraw Hill Inc., Singapore
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Schiffman G. Leon & Kanuk Leslie Lazar (2006, Consumer Behaviour,
Pearson Education
Majumdar, R. (2006), Product Management in India, Second Edition,
Prentice Hall, pp. 257-267.
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Bisht, Sudhir Why the Rs 1-lakh car is not good for India
http://inhome.rediff.com
http://www.businessweek.com/globalbiz/content/sep2006/gb2006092
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Doval, Pankaj and Leishemba, Rajkumar (2006), Auto sector zooms
ahead in 2006http://ia.rediff.com/money/2006/dec/20auto.htm
Top Gear, Day of Diesels, Vol 2, Issue 8, April 2008.
http://business.mapsofindia.com/automobile/car-manufacturers/small-
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APPENDIX
QUESTIONNAIRE
Q 1 Which car do you have?
1. Maruti Alto 2. Hyundai Santro 3. Tata Indica 4. i10 5.
Zen Estilo
6. Other.
Q2 Do you relate Social Recognition Factor with usage
ofcar?
1. Yes 2. No
Q3 Who in your opinion, exerted greatest influence on your
purchase decision?
1. Family Members 2. Friends 3. Advertisement 4. Experts
5. Dealers
6. Other.
Q4 Which of the following attributes had important bearing
in your Buying decision?
1. Economy with regard to fuel efficiency.
2. Quality with regard to Performance.
3. Convenience with regard to availability.
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4. Other.
Q5 What do you expect from an Economical Car?
1. High Fuel Efficiency.
2. Less Initial Cost.
3. Low Maintenance Cost.
4. High Resale Value.
5. Other.
Q6 Which aspect of Quality do you look in your Car?
1. Mileage 2. Brand 3. Safety 4. Service 5. Design
6. Resale value
Q7 While buying small Car which aspect of Convenience
influenced you most?
1. Good after Sales Service
2. Availability of Car
3. Easy Availability of Spare
4. Colour Choice
5. Other.
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Q8 If someone wants to purchase a Car, what would be your
suggestion?
1. Maruti Alto 2. Hyundai Santro 3. Tata Indica 4. i10 5.
Zen Estilo
6. Other.
Q9 What new features would you expect in your present
brand of Car?
1. Fuel Efficiency
2. Maintenance Cost
3. Safety
4. Power & Speed
5. Better after Sales Service
6. Other.
PERSONAL DETAILS
1. OCCUPATION 1. Business 2. Government Service 3.
Pvt. Service
4. Student 5. Other.
2. MARITAL STATUS 1. Bachelor 2.
Married Couple
3. Family with Children 4. Other
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