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The Automobile Industry” (Maruti Vs Renault) · PDF fileThe Automobile Industry” (Maruti Vs Renault) ... SWOT Analysis Strength Weakness ... automobile manufacturers such as Tata

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  • The Automobile Industry(Maruti Vs Renault)


    The automobile industry wants to conduct a market research to know more about the factors that affect the choice of customers and what motivates them to purchase Maruti & Renault cars. It is very important for every marketer to know about the buying motives of the customer because it helps them to design proper policies and programs to attract customers. It helps them to determine their advertisement budget and also to plan their various sales promotions.

    The studying of consumer buying behavior is very important in framing price policies, product policies and distribution policies and also in sales and marketing. It is important for the marketers to understand the buying motives because it is helpful in understanding the buying motives and preferences of different customers, this enables the marketer to design the appropriate marketing strategies. It is also helps to plan and modify products according to taste and preference of customers.

  • Objectives

    The primary objective of the research is to find out various drives that motivate customers to choose cars.

    The secondary objective is to know the satisfaction level of customers and to know about the overall experience of customers about their dealers and also to know which class of customers is using cars.

    The main objective is to study the pattern of the services & its specification values to customers.


    The Indian automotive industry, comprising automobiles and auto components, has been on a growth trajectory since the liberalisation of the economy. The industry employs about 12.5 mn people, both directly and indirectly, and contributes nearly 5% to the national GDP. The industry contributes nearly 20% to indirect taxes of the government. Due to rapid urbanisation and improvement in standard of living, along with active government support in the form of incentives and stimulus, a large number of global MNCs including Mercedes Benz, Audi, Volkswagen and Honda Motors have set up their manufacturing research and development facilities in India. Over the decades, the Indian auto components industry has transitioned from being a supplier for the global aftermarket to becoming a full-scale global Tier-I supplier to several global companies.The auto components industry has grown at double-digits in each of the past seven years ending FY11, barring FY09. It has expanded in size from US$ 8.70 bn in FY05 to US$ 26 bn in FY11. The bright long term prospects of the industry are reiterated by the fact that investments in the industry have increased from US$ 3.75 bn in FY05 to US$ 12 bn by FY11.

    Auto components industry: SWOT AnalysisStrength WeaknessEasy access to raw materials Lack of economies of scaleAbility to cater to low volume Supply chain infrastructure bottlenecksEstablished domestic manufacturing base Low investment in research and developmentLow manufacturing cost Presence of a large counterfeit components marketOpportunity ThreatLarge and growing domestic auto market Influx of spurious partsMNCs looking at low-cost outsourcing countries Cheap imports from other low-cost countries such asChina, Thailand, Taiwan, etc

    Proximity to other growing Asian markets Slowdown in global markets

    Research Methodlogy

    Research Design

    A research design is a logical and systematic plan prepared for directing a research study. It is the program that guides the investigator in the process of collecting analyzing and interpreting observations.

    Here descriptive research design is used for analyzing why customers choose Honda Siel cars. It is very simple and more specific than exploratory study. The descriptive study is a fact finding investigation with adequate interpretation.

    Data Collection:

    Data Sources: In this stage, there is a need to gather primary as well as secondary data.

  • Primary Data - The present study has used survey method for collecting the primary data by directly interviewing the customers with questionnaire.

    Secondary Data - Secondary data for the study were collected from library reference, journal and magazines, websites and previous studies.

    Tool For Data Collections:

    A well structured postal questionnaire and focus group was used to collect the primary data from the customers. The customers were given multiple choices to select their particular answers. A copy of the questionnaire is attached.

    Industry Profile

    India has the ninth largest automobile industry in the world with an annual production of 2.3 million units in 2008. In Asia India has emerged as the fourth largest exporter of automobiles during the year 2009, behind Japan, South Korea and Thailand.

    After the economic liberalization in India in 1991, the Indian automotive industry has shown sustained growth due to increase in competition and relaxation in restrictions. Many Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have expanded their domestic and international operations. India's fast economic growth has further led to expansion of its domestic automobile market which attracted significant India-specific investment by multinational automobile manufacturers. During February 2009, monthly sales of passenger cars in India have grown more by one 1, 00,000 units.

    Indian Automobile Industry includes the manufacture of trucks, buses, passenger cars, defense vehicles, two-wheeler manufacturing and heavy vehicle manufacturing units.

    The major Car manufactures are:

    1. Tata Motors

    2. Maruti Udyog

    3. Mahindra & Mahindra Ltd

    4. General Motors India Pvt Ltd

    5. Hyundai Motors India Ltd

    6. Honda Siel Cars India Ltd

    7. Toyota Kirloskar Motor Ltd


  • 9.Nissan India

    10. Das Gupta Motors

    Maruti Udyog Limited is now Maruti Suzuki India Limited

    Car market leader Maruti Udyog Limited now has a new name "Maruti Suzuki India Limited". The company's new name was approved by the Registrar of Companies yesterday and comes into effect from 17th September 2007.

    The company's Board of Directors had approved "Maruti Suzuki India Limited" as the new name, in July, 2007. This was subject to approval by the Company's shareholders. The Company's shareholders approved the new name at the Annual General Meeting held on 6th September 2007.

    In the new name, "Maruti" continues to have the predominant position. "Maruti" is one of the strongest corporate brand names in the country, in terms of awareness, recall, trust and customer care. This is the name that a generation of Indians has grown up with, and features prominently on the Company's products, services and its sales and service network across the

  • country.

    "Suzuki" in the corporate name imparts an international dimension. Besides being the parent company, Suzuki Motor Corporation is a leading player in the global automobile market. The leader in Japan's minicar market for over three decades, it has recently positioned itself as a complete car maker with the success of its globally strategic models like Swift, SX4 and Grand Vitara.

    This international dimension in the Company's name will help Maruti as it looks to expand its role in the global markets. The Company is to launch a model for export to Europe in the next couple of years, while building on its recent success in Asian and African markets. Maruti is also developing capabilities to assume the role of being Suzukis R & D hub for Asia outside Japan.

    "India" in the corporate name, while conveying the location of the Company and its facilities, also recognizes the growing importance of the country across the world.

    Renault Milestones in India.

  • Oct 2011:

    Renault powered RedBull takes Sebastian Vettel to victory at the inaugural Indian Grand Prix.

    Oct 2011:

    September 2012:

    Renault Scala launched in New Delhi on 7th September.

    August 2012: Renault Scala organized a media test drive at Chandigarh

    August 2012: Renault India records highest sales to date, selling 4036 cars.

    July 2012: Renault Duster receives a phenomenal response from the Indian market.

    July 2012: Renault Duster launched across 9 cities in India.

    June 2012: Successfully conducted a Media Test Drive for Renault Duster at Munnar.

    April 2012:Renault launches the New Fluence E4 Diesel with the powerful dCi 110 Engine

    Jan 2012:Renault crosses 40 Dealerships across India and soon to hit 100 by the end of the year.


    Jan 2012:Renault launches the Pulse and unveils the Duster at the New Delhi Auto Expo 2012 in the presence

    of Indias top Media.

    Jan 2012:Renault participates for the 2nd consecutive time at the New Delhi Auto Expo. Renault displays 11

    cars at the 2012 edition.

    Dec 2011:Based on market demand and customer feedback, Renault introduces a feature packed Fluence

    Diesel variant.

  • Renault Pulse unveiled at the 2011 Indian Grand Prix by Formula1 drivers Mark Webber and Karun Chandok, in the presence of Renault COO Mr. Carlos Tavares

    and Renault India MD Mr. Marc Nassif.

    Oct 2011:Renault India takes the Lotus Renault GP Formula1 car along with the Fluence

    Black Edition across the country.

    Oct 2011:Fluence Special Festive Edition launched across the country.

    Sep 2011:Koleos registers 120+ bookings in launch month (the only SUV in the segment to

    do so).

    Sep 2011:All New Koleos Global Launch in India on 8th Sept

    Jun 2011:Renault Nissan Alliance manufacturing facility rolls out its 100,000 car.

    May 2011:Renault launches its first car in India, the Fluence.

    Mar 2010:I