Study on secondary car market of maruti, toyota, hyundai

Study on secondary car market of Maruti Suzuki, Hyundai & Toyota

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Presidency College, Bangalore 2012-2014

Chapter 1

INTRODUCTION


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1. INTRODUCTION

Automotive industry is one of the larger markets in the world. It is one of the

firmest rising markets in the world especially in India. The automobile industry,

one of the core sectors, has undertaken conversion with advent of new business,

technology and manufacturing technique in the presence of globalization and

liberalization the sector seems to be optimistic of posting strong sales in the next

few years in view of a reasonable rush in demand. India is one of the world’s

largest automobile industries. Easy accessibility of finance and growing income

levels are inspiring the middle class population to upgrade their two wheelers to a

car or to purchase new car or two wheelers. Besides, the increasing organized

used car market has also been a positive development factor in the used car market

of the country. Now there are lot of un organized and organized players to

promote this segment.

India is now becoming a manufacturing midpoint of high-end vehicles meant for

transfer to China recently ford has started one engineering unit in Chennai. The

US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer

KTM and Mahindra & Mahindra have also favored to set up manufacturing

facilities in India than in the relatively low-cost China and export the production.

India’s vehicle manufacturing is stands in sixth position in the world with

an annual manufacturing of 3.9 million units in 2011. Currently India is the 3rd

largest exporter of car in Asia.

As of 2010, India accommodating 40 million passenger vehicles. More than 3.7

million automotive vehicles were produced in India in 2010 (an increase of

33.9%), making the country the second (after China) fastest growing automobile

market in the world in that year. According to the Society of Indian Automobile

Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015,

no longer 5 million as formerly projected.

The majority of India's car manufacturing industry is based around three areas in

the west, south, and north. Chennai is the major with 35% of the revenue share in

the southern hub. The western hub near Mumbai and Pune provides to 33% of the

http://en.wikipedia.org/wiki/Mumbai

http://en.wikipedia.org/wiki/Pune


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market and the northern hub around the National Capital Region contributes

32%. Chennai, houses the major processes of all big car manufactures. Chennai

accounts for 60% of the country's automotive exports.

Gurgaon and Manesar in Haryana form the northern cluster where the

country's largest car manufacturer, Maruti Suzuki, is founded.

The Chakan corridor near Pune, Maharashtra is the western cluster with

companies like , Skoda, Mahindra and Mahindra, Tata Motors, General Motors,

Volkswagen Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force

Motors having assembly plants in the area. Nashik has a major base of Mahindra

and Mahindra with a SUV assembly unit and an Engine assembly unit.

Aurangabad with Skoda and Volkswagen also forms part of the western cluster.

Another emerging cluster is in the state of Gujarat with manufacturing facility

of General Motors in Halol and further planned for Tata Nano at their plant

in Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come

up in Gujarat.

In India, the automobile industry themself provides straight employment to more

than 5 lakh persons. It pays 4.8 per cent to India’s GDP and 19 per cent to India’s

indirect tax revenue. Till early 1980s, there were very limited players in the Indian

auto sector like Hindustan motors, Premier etc, which was suffering from low

volumes of production, outdated and deficient technologies. With de-licensing in

the 1980s and opening up of this sector to FDI in 1993, the sector has developed

rapidly due to the entry of global players.

A quickly growing middle class, rising per capita incomes and comparatively

easier availability of finance have been driving the vehicle demand in India, which

in turn, has prompted the government to invest at extraordinary levels in roads

infrastructure, including projects such as Golden Quadrilateral and North-East-

South-West Corridor with feeder roads.

The above statistics explains the situation of new cars in Indian market.

However, used cars are also being sold like hotcakes. Used car segment has

emerged as one of the major industries in India. According to a latest analysis, the

yearly used-car demand in the Indian market is around 1.4 million cars. To benefit

from the flourishing trend, leading organized manufacturers like Automart india

http://en.wikipedia.org/wiki/Manesar

http://en.wikipedia.org/wiki/Pune

http://en.wikipedia.org/wiki/Land_Rover

http://en.wikipedia.org/wiki/Fiat_Automobiles_India_Limited

http://en.wikipedia.org/wiki/Skoda_Auto_India_Private_Limited

http://en.wikipedia.org/wiki/Volkswagen_India

http://en.wikipedia.org/wiki/Gujarat

http://en.wikipedia.org/wiki/General_Motors_India_Private_Limited

http://en.wikipedia.org/wiki/Tata_Nano

http://en.wikipedia.org/wiki/Sanand_Plant_(Tata_Motors)

http://en.wikipedia.org/wiki/Sanand_Plant_(Tata_Motors)


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Ltd and Maruti's True Value have made a venture into the used- car business.

Unlike other unorganized companies, they offer guarantee of accurate ownership

and accident certification to their customers and sellers along with superior quality

and benefits like warranty period and free repair services. In the past few years

around 55 latest used cars models have been launched in India. Many car owners

want to replace their present vehicles with the newer brands. Thus used-car

market has been generating large revenue. There are various criteria applied in the

market in selling of the used-cars. Any person thinking to buy used-car does so

primarily with the intention of investing fewer amounts which otherwise he would

have to pay for the newer-one. Predominantly, the pricing consideration is based

on the year of make according to the market trend. Of course other factors are also

involved in the entire process of the transaction.


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Chapter 2

PROFILE OF THE ORGANIZATION


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2.1 MARUTI SUZUKI

Maruti Suzuki India Limited is an automobile company and it is formerly

known as Maruti Udyog Limited and it is the subsidiary unit of Japanese

automobile and motorcycle manufacturer Suzuki. Up to 2012 they had a market

share of 37 percentage of Indian passenger car market.

Maruti Suzuki company started out in 1982 in Gurgaon, Haryana. Little did the

then silent suburb of New Delhi know, that it was going to become the epicenter

of the automobile mutiny in India. The year marked the birth of the Maruti Suzuki

factory. India turned out 40,000 cars every year. The new Maruti Suzuki 800 hit

the streets to begin a whole new chapter in the Indian automobile industry.

Maruti suzuki set out with an obsession for customer delight, one that was

unheard in the corridors of automobile manufacturers then. It was about a

commitment to create value through innovation, quality, creativity, partnerships,

openness and learning. It created a road that was going to lead the world in to a

whole new direction, laid out by Maruti Suzuki.

Today, Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every

year. That’s one car every 12 seconds. Maruti Suzuki drove up head and shoulders

above every major global auto company. Yet Maruti Suzuki story was not just

about making a mark. It was about revolutionary cars that delivered great

performance, efficiency and environment friendliness with low cost of ownership.

That’s what Maruti call true value. Maruti Suzuki built their story with a belief in

small cars for a big future. Their story encouraged millions of Indians to make

driving a way of life. India stepped up with their vision to take on the fast lane. A

comradeship had begun. Something incredible had begun.

A team of over 9000 dedicated and passionate professionals that turned out 14

cars with over 150 variants. The drive is backed up by a nationwide service

network spanning over 1422 cities and towns and a sales network that spreads

across 980 cities, 2 state of the art factories. A diesel engine plant with a capacity

upped to turn out 7 lakh diesel cars a year. And a commitment to road safety to

make Indian roads safer.


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18.28% of Maruti Suzuki company was owned by the Indian government, and

54.2% owned by Suzuki company of Japan. In 2003 25% of company shares are

sold by initial public offering by the BJP government. As of May 2007, the

government of India sold its 18.28% of ownership to Indian financial institutions

and now government of India doesn’t have any stake in Maruti Udyog.

HISTORY

Maruti udyog limited is shortly known as MUL was established in the year 1981

but the actual production was started only in the year 1983 and their first car was

Maruti 800. It was the only modern car available during at that time and their

competitor during at that time was Hindustan Ambassador and premier padmini

both of those companies were 25 years out of date at that point of time.

BEGINNINGS

Maruti’s history begins in 1970 when they started a private limited company

named ‘Maruti technical services” and it is shortly known as (MTSPL). The main

purpose of this company was to design and manufacture a wholly indigenous

motor car. In 1971 a company called Maruti limited was incorporated under the

leader ship Sanjay Gandhi and he is also became the first managing director of

Maruti limited. Unfortunately in the year 1977 the company goes to liquidation. A

year after the death of Sanjay Gandhi in 1978 with the help of his mother Indira

Gandhi a new company called Maruti Udyog Ltd incorporated.

Suzuki enters

In the year 1982 a Joint Venture Agreement is signed between Suzuki of Japan

and Maruti udyog limited. Initially Suzuki imported car from Japan later they

decided to use only 33% indigenous parts. This upset the local manufactures like

Hindustan Motors, Premier Padmini etc. Even the Govt of india promote Maruti

by adjusting the petrol Tax and lowering the excise duty and all. Finally in the

year 1983 Maruti introduced a new model called Maruti 800 and it was huge

success during at that time and this model was based on the SS80 Alto ad it was

the first affordable car. Later in the year 1984 they introduced a model called

Maruti van and after that 1985 they introduced another new model called Gypsy


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and it was based on Suzuki SJ410. In the year 1987 the company started exporting

car to European nations and to other neighboring countries. By 1988, the capacity

of the Gurgaon plant is increased to 100000 units per annum

2.1.1 MARUTI TRUE VALUE

Maruti True Value business expands the family of Maruti customers, providing

reassurance to existing Maruti customers about resale of their cars and further

emphasizes Marutis Commitment towards enhancing customer satisfaction by

continuous association during the vehicle ownership life cycle.

No one knows your Maruti car better than Maruti - based on this premise, Maruti

channelizes its expertise to ensure that transactions in pre-owned cars are

transparent and fair. Through that, the company endeavors to extend the

relationship and emotional connect that it enjoys with the customer.

True Value has transparent and fair evaluation process, which is currently missing

in the largely unorganized market for pre-owned cars. Maruti True Value

processes and systems ensure that the seller gets the right price and is paid

promptly.

Under True Value, the seller has the option to be paid in cash /cheque, or get a

True Value car in exchange or a brand new Maruti Suzuki car in exchange. True

Value category cars bought by Maruti True Value dealers are taken to state-of-the-

art workshops.

True Value Category cars are refurbished in state of art workshops using Maruti

Genuine Parts and by skilled technicians. These cars are then sold through maruti

True Value outlets.

As a mark of confidence, and to provide reassurance to customers, every vehicle

bought under Maruti True Value is inspected and certified by Maruti Engineers

and the Car carries a one-year warranty and three free services. Convenient

finance options are also offered to buyers of Maruti True Value cars.


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2.1.2 VISION AND MISSION STATEMENT

Vision

Visions of any company are those values on which company works. As the MUL

is started by Governmental initiatives it tends to be more consumer oriented and

hence cost effective, but on the other hand Suzuki’s participation ensures not only

need of the profit, but of the need of maximum profit. The only way for this

Nora’s dilemma of selecting principals for company’s working vision ,was to

maximize profit and reducing cost by maximizing output and sales Hence MUL

declared its Vision as-

“The Leader in the Indian Automobile Industry, Creating Customer Delight and

Shareholder's Wealth; eventually become a pride of India”

Mission

Mission is the statement of an organization’s purpose, what it want to accomplish

in the larger environment and its goals which are specific, realistic and motivating.

Missions are described over visions and visions demand certain objectives. The

main objectives/Missions of MUL are:

- Modernization of the Indian Automobile Industry.

- Developing cars faster and selling them for less.

- Production of fuel-efficient vehicles to conserve scarce resources.

- Production of large number of motor vehicles which was necessary for economic

growth.

- Market Penetration, Market Development Similarly Product Development and

Diversification.

- Partner relationship management, Value chain, Value delivery network.


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2.1.3 PRODUCT PROFILE

1. 800

2. Omni

3. Gypsy king

4. wagonR

5. Swift

6. Swift DZire

7. A star

8. Ritz

9. Eeco

10. Alto K10

11. Maruti Ertiga

12. Maruti XA Alpha

13. Maruti Stingray

14. Maruti Suzuki Celerio

15. Kizashi

16. Grand vitara


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2.1.4 COMPETITORS

The main competitors of Maruti Suzuki are

1. Hyundai motors india limited

2. Tata motors

3. Mahindra & Mahindra

4. Toyota

5. General motors

6. Nissan India

7. Renault India

8. Skoda

9. BMW

10. Audi

11. Mercedes Benz

12. Honda motors


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2.1.5 MARKET SHARE

Maruti suzuki india Ltd, India’s largest car manufacturer share has increased as

they recovered from a labour unrest at its manesar plant that had crippled

production in 2012 and they sold more vehicles in small towns and villages.

Maruti saw its share in the passenger car market increases almost 6% points to

49.24% from 43.85% in the year ago, according to society of indian Automobile

Manufactures (SIAM). Roughly we can say that currently they are holding a

market share of 50%. From this data we can say that Maruti is holding big market

share compare to Maruti’s competitors.


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2.1.6 MILESTONES ACHIEVED/ AWARDS RECEIVED

1. Ranked as India’s Most Respected Automobile Company by leading

business magazine, Business World, 2007

2. Golden Peacock Award – 2012 for ‘Occupational Health & Safety’

Performance in Automobile Sector in 2012.

3. Excellent Partner award by Army on its Diamond Jubilee Celebration in

automobile category for car supply under CSD scheme, 2008.

4. ICSI National Award for Excellence in Corporate Governance, 2009.

5. “Hall of Fame” award for single handedly changing the face of Indian

automobile Industry by Car India in 2011.

6. NHRDN Trailblazer Award 2010 for HRD Excellence.

7. Ranked fourth in an Index of thought leaders in India published by

London-based communication agency- Globe Scan.

8. The Economic Times & Avaya Global Connect Limited awarded

Maruti, the Avaya Global Connect- Customer Responsiveness Award in

the automotive category in 2006 & 2007.

9. Golden Peacock Award for sustainability in 2012.

10. Golden Peacock Award for excellence in the field of Environment

Management in Automobile Sector in 2007.

11. ICSI National Award for Excellence in Corporate Governance, 2009.

12. Gold for Maruti Suzuki at the India Manufacturing Excellence Awards

(IMEA), 2009, organized by the Economic Times in partnership with Frost

& Sullivan.

13. Maruti ranks 91 in Forbes magazine list of world’s 200 most reputed

companies. In the automotive sector, Maruti ranked 7th in the world in

2005.

14. 2009 Global Reputation Pulse study: MSIL’s global reputation ranking

up from 77 to 49- all companies, all sectors. Global reputation ranking up

from 4 to 3 – Global Car companies category.


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2.1.7 CORPORATE SOCIAL RESPONSIBILITY

Maruti Suzuki tries to minimize the carbon footprint of its manufacturing

facilities, products and supply chain operations. The Company believes that

investing in environment friendly technologies makes business sense as it brings

good returns in the medium to long term.

The environment policy of the Company promotes energy conservation, 3Rs

(Reduce, Reuse and Recycle), green procurement, environment friendly mobility

and environment consciousness among its direct stakeholders. Going beyond

compliance, the Company works closely with its parent company, Suzuki Motor

Corporation, to introduce the latest environment friendly technologies in India,

much ahead of statutory requirements.

Maruti Suzuki became the first automobile company in India to register a Clean

Development Mechanism (CDM) project with the United Nations Framework

Convention on Climate Change (UNFCCC). In due course, the Company will earn

tradable carbon credits. The Company sends all its hazardous waste to the cement

industry for co-processing. All new vehicles are free of hazardous substances and

comply with European End of Life vehicle regulations. The Company is working

towards continuously improving the fuel efficiency of its cars.

\


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2.1.8 SWOT ASSESMENT

Maruti Suzuki is the market leader in India in car manufacturing and also Maruti

Suzuki got an amazing brand equity. Here is a SWOT of Maruti Suzuki.

Strengths

Maruti Suzuki is having largest network of dealers and after sales service

centers in the country.

Maruti Suzuki has good market share so company is getting huge revenue

from its after sales service.

Maruti Suzuki’s strong brand value and its loyal customers are one of the

biggest strength of Maruti.

Maruti Suzuki is the first company start to start second hand vehicle sales

through its True-value entity.

Comparing to other companies Maruti is having wide variety of cars with

good fuel efficiency

Weakness

MUL cars are having low quality interior compare to other quality players

like Hyundai and all.

Intervention from Government due to having share in MUL.

Company’s labour unions are not in good terms with management.

Younger generations started getting a great affinity towards new foreign

brands.

Maruti is not having SUV segment like other players


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Opportunities

Maruti introduced a LPG version of WagonR and now they are getting

good response from market

Export capacity of the company is giving new hopes in international

market

Income levels of people in India are increasing. So this is a big opportunity

for Maruti.

Maruti DZire is now capturing the sedan segment

Maruti can launch electric car cars for a much better substitute of the fuel.

Threats

Maruti recently faced a decline in its market share

China may give good competition as they are planning to enter Indian car

market

Launch of other car companies small car may result in the decline of alto

sales

Many foreign companies are entering to Indian car market


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2.2 HYUNDAI

Hyundai motor India limited is a wholly subsidiary of Hyundai motor

company which is a South Korean multinational automotive manufacturer

headquartered in Seoul, South Korea. Currently HMIL is the largest passenger car

exporter and also they are the second largest car manufacturers in India after

Maruti Suzuki. It currently market 10 car models across segment.

In the A2 segment they are manufacturing Eon, santro, i10, Grand, xcent and the

i20, In the A3 segment they are manufacturing only one model called verna , in

the A5 segment they are manufacturing sonata and in SUV segment they are

manufacturing the SantaFe. HMIL’s fully integrated state-of-the-art

manufacturing plant near Chennai boasts advanced production, quality and testing

capabilities. HMIL forms a critical part of HMC’s global export hub. It currently

exports to around 120 countries across EU, Africa, Middle East, Latin America,

Australia and the Asia Pacific. HMIL has been India’s number one exporter for

the past eight years consecutively. To support its growth and expansion plans,

HMIL currently has 388 dealers and more than 1000 service points across India.

In its commitment to provide customers with cutting-edge global technology,

HMIL set up a modern multi-million dollar R&D facility in Hyderabad. The R&D

center endeavors to be a center of excellence in automobile engineering.

History

Hyundai motor India was formed in the year 1996 and the parent company of

HMIL is a South Korean multinational automotive manufacturer headquartered

in Seoul, South Korea and they launched their first car in the year 1998 in Indian

market and that was a runway success. At the time when they entered into Indian

car market there were only five major car manufacturers at that time like Maruti,

Hindustan, Premier, Tata, and Mahindra and gradually Hyundai became the big

competitor for Maruti. After they launched their santro they became the second


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largest automobile manufacturer and the largest automobile exporter in India.

Now HMIL is giving good competition to Maruti.

2.2.1 HYUNDAI H PROMISE

Hyundai Motor India Ltd. has started its certified used car program under the

brand name “Advantage” to give good quality used cars to Indian Customers.

Vehicle are certified by Hyundai Engineer using 147 check points and comes with

Hyundai Warranty upto 1 year/20,000Km (whichever earlier from the date of

delivery) & two free services Through this program customer is assured of Trust,

Transparency, Convenience and Peace of Mind.

Company has rebranded its Used Car Business as "H PROMISE - APPROVED

USED CAR " on 1st April 2014 in line with its parent company's ( Hyundai

Motor Company, Korea ) global Used Car program .

H PROMISE - APPROVED USED CAR

The H symbol illustrate that Hyundai & its Customers hold each other's hands,

which means Hyundai will keep their promises for customers on their approved

used cars . The blue gradation on "H" symbolizes persistent efforts of Hyundai for

high quality cars.

.


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2.2.2 VISION AND MISSION STATEMENT

Vision Statement:

Our team provides value for your future.

Mission statement:

To create exceptional automotive value for our customers by harmoniously

blending safety, quality and efficiency. With our diverse team, we will

provide responsible stewardship to our community and environment while

achieving stability and security now and for furture generations.


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1. Hyundai EON

2. Hyundai Santro Xing

3. Hyundai Next Gen i10

4. Hyundai Grand i10

5. Hyundai Xcent

6. Hyundai Uber Cool i20

7. Hyundai Fluidic Verna

8. Hyundai Neo Fluidic Elantra

9. Hyundai Santro

10. Hyundai Accent GTX

11. Hyundai New Look Santro

12. Hyundai Sonata Gold

13. Hyundai Accent Viva

14. Hyundai Accent CRDi

15. Hyundai Terracan

16. Hyundai Atos Prime

17. Hyundai Getz

18. Hyundai Accent GLS

19. Hyundai Accent GLE

20. Hyundai Verna

21. Hyundai Getz Prime

22. Hyundai i10

23. Hyundai Verna Transform

24. Hyundai Terracan

25. Hyundai Elantra

26. Hyundai Tucson

27. Hyundai Sonata Transform

28. Hyundai Santa Fe Second Generation

29. Hyundai Accent Executive


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2.2.4 COMPETITORS

The main competitors of Hyundai motors india limited are

1. Maruti Suzuki

2. Tata motors


4. Toyota

5. General motors

6. Nissan India

7. Renault India

8. Skoda

9. BMW

10. Audi

11. Mercedes Benz

12. Honda


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2.2.5 MARKET SHARE

Hyundai Motor India Ltd (HMIL), the country’s second largest car manufacturer

and the largest passenger car exporter, registered 4.6% growth in Exports for the

month of April 2014. The domestic sales accounted for 32,102 units and exports

stood at 24,754 units. They began exporting in the year 1999 by sending 10 santro

cars to Nepal. Now HMIL is the leading exporter of passenger cars with market

share of 48% of the total exports of passenger cars from india, making it a

significant contributor to the Indian automobile industry and also now they are

holding a market share of 40% of Indian car market. In the list of market share of

Indian car market now they are standing in the second position just below Maruti

Suzuki.


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2.2.6 MILESTONES/AWARDS RECEIVED

January 8, 2013: Elantra has been awarded the 'Car of the year', 'Design of the

year' and 'Executive car of the year' by Car India and Bike India Awards.

January 9, 2013: Elantra has been awarded the 'Saloon car of the year and Best

design & styling by Bloomberg UTV Autocar India Awards.

January 11, 2013: Elantra has been awarded the 'Car of the year' and 'Executive

Sedan of the year' by CNBC TV18 Overdrive Awards.

September 03, 2013: Launch of Hyundai Grand.

October 17, 2013: Hyundai rolls out the 5th Millionth car.

December 18, 2013: Hyundai Grand won the prestigious award 'Indian car of the

year 2014

January 5, 2012: The All New Sonata Launched at the New Delhi Auto Expo

2012

January 5, 2012: Eon has been awarded the prestigious 'Entry-Level Hatchback

Of The Year' by ET Zigwheels Awards 2011

January 5, 2012: Verna has been awarded the prestigious 'Best Midsize Car 2012'

and 'Best Car Manufacturer 2012' by Motor Vikatan'.

January 6, 2012: Verna has been awarded the prestigious 'Sedan Of The Year'

and HMIL has been awarded the 'Automotive Company Of The Year 2011' by

Auto Bild Carwale.

January 13, 2012: Verna has been awarded the prestigious 'Best Design and

Styling' by Bloomberg UTV Autocar Awards 2012.

January 24, 2012: Eon has been awarded the prestigious 'Micro Car Of The Year'

and 'Reader's Choice Award' by Car India and Bike India Awards 2012.

March 28, 2012: Launch of i-Gen i20.


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The concept of “corporate social responsibility” is emerging as one of the

keywords defining today’s business environment, as the emphasis on the social

roles and functions of companies is increasing. Hyundai Motor Company engages

in a variety of systematic and strategic Social Contribution programs every year

on the basis of its Long-term Social Contribution Road Map that extends to 2012.

From 2011 through 2012 when its Social Contribution activities enter the mature

stage, we will seek to develop unique Social Contribution models and campaigns

that will reflect its core values and help it become a respected company.

Hyundai’s CSRs can be divided among economic, social, and environmental

responsibilities. The economic responsibilities, touching the fundamental basis of

any profit making organization and including the needs to create jobs and to

receive investments, are fulfilled by ensuring trustworthy management. Hyundai,

as an active corporate citizen, also fulfills its social responsibilities through its

various CSR campaigns, projects, and programs catering to the needs of its

stakeholders, including the marginalized of society at large, employees,

customers, partner businesses, and local communities. The company also

implements systems of environmental management in order to fulfill the

environmental responsibilities it bears as a leading automaker.

Core values of social contribution

Eco-friendly economic activities and efforts for environmental protection.

Fulfilling social responsibilities with the spirit of corporate citizenship.

Hyundai strive to create a sustainable future in partnership with the civil society.

Hyundai practice the social values of human dignity and happiness.

Hyundai respond immediately to the social demands made on us from around the

world


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2.2.8 SWOT ASSESSMENT

STRENGTHS

Domestic sales of HMIL is increasing an average of 19.1%

Hyundai Motor India limited is the largest car exporter from Asian Market

which showed a 10% growth compared to last FY

HMIL is known for its CSR activities so HMIL is having a good brand

image

Hyundai has largest number of showrooms and service centers next to

MUL

Hyundai is known for its performance and quality

Hyundai is having wide range of cars starting from Eon to Santa Fe

WEAKNESS

Price of spare parts of Hyundai is comparatively high compare to Maruti

Hyundai doesn’t have any product match to compete in corporate orders

like Tata Indica V2, Tata Sumo, Tata Indigo, Ford Fiesta etc. These

vehicles are most preferred in both cab segment and government booking

for bulk orders

SUV segment of Hyundai didn’t make much impact

Price of Hyundai cars are slightly high compare to MUL cars


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OPPORTUNITIES

Exporting of Hyundai cars are increasing year by year.

Income level of people in india are increasing. So this is a big opportunity

for HMIL.

HMIL can launch electric car cars for a much better substitute of the fuel.

There is more scope of HMIL to enter into small car segment as its has

dedicated R&D plant in Hyderabad, India

THREATS

Foreign Direct Investments flowing in Indian automobile space are not

good signs for already existing Giants like MUL and Hyundai.

China may give good competition as they are planning to enter indian car

market

Tata nano decreased the sales of Hyundai EON

Hyundai is facing tough competition from ford, Toyota etc


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2.3 TOYOTA

Toyota Kirloskar Motor Private Limited is a wholly subsidiary of Toyota

Motor Corporation which is a japan multinational automotive manufacturer

headquartered in Tokyo, Japan. Currently Toyota is the fourth largest car

manufacturers in India after Maruti Suzuki, Hyundai, and Mahindra. In Toyota

kirloskar motor private limited Toyota Motor Corporation hold 89% of the shares

and kirloskar group hold the remaining 11%. The headquarters of Toyota in India

is in Bangalore

History

Toyota Kirloskar Motor Private Limited is one of the largest producers of

automobiles in India, and hence is a much known brand of cars. Toyota Kirloskar

Motor Private Limited is a joint venture between Toyota Motor Corporation and

Kirloskar Group, this joint venture between these two companies took place in

1997. Toyota Motor Corporation was founded Kiichiro Toyoda in 1937.

The company has been in car market for years now, and has established a brand of

its own. Toyota Kirloskar is the 4th leading producers of cars in India. Gradually

the company Toyota Kirloskar Motor is adopting new technologies to upgrade its

production. Innova and quails are the most sold cars in india . The Company has

given employment to number of people. Toyota Kirloskar Motor has their

headquarters in India, and gradually they are expanding their work stations. The

overall environmental record of Toyota Kirloskar Motor Private Limited has also

been satisfactory.


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2.3.1 TOYOTA U TRUST

Today every customer looks for value for money in every transaction. When they

purchase new car they know it’s coming from manufacturer factory and all cars

are same, but when they purchase and sell used cars they have lot of worries.

Seeing this customer requirements Toyota Kirloskar Motors in India started

the Toyota U Trust Program. Thier main aim is to provide the used car buyer

and sellers an experience at par with New Car buyer.

Toyota U Trust is set to facilitate Sales, Purchase & Exchange of Toyota and Non

Toyota Cars. It allows potential customers an opportunity to exchange their old

cars of any make for a brand new Toyota or a competitively priced used Toyota

car.

Used car segment in the country is largely unorganized and with Toyota U

Trust we want to ensure our customers gets necessary choice, convenience and

transparency when they buy or sell a used car.

Each car is purchase at fair price and will go these extensive inspection and

refurbishment process so that customers get the best quality cars.

When customer purchase Toyota used car at Toyota U Trust they are eligible to

obtain certification and warranty offer backed by Toyota himself. Along with 2

Years/30,000 km warranty offer customer can get upto three labour free services

at Toyota dealerships.


29


2.3.2 VISION AND MISSION STATEMENTS

Vision

• To be the first choice partner for all customers looking for materials

handling solutions and to be widely recognized for our innovative products

and services as well as our respect for society.

• We build trust and confidence with customers by delivering outstanding

quality products and services which add real value to their businesses.

• We respect the expectations and ambitions of employees, stakeholders and

suppliers through a never ending search to improve.

Mission

Toyota aims to achieve long-term, stable growth in harmony with the

environment, the global economy, the local communities it serve, and its

stakeholders.


30



Etios liva

Etios

Etios cross

Innova

Corolla altis

Fortuner

Camry

Camry Hybrid

Prius

LC prado

LC 200


31


2.3.4 COMPETITORS

The main competitors of Toyota are

1. Maruti Suzuki

2. Tata motors


4. Hyundai

5. General motors

6. Nissan India

7. Renault India

8. Skoda

9. BMW

10. Audi

11. Mercedes Benz

12. Honda


32


2.3.5 MARKET SHARE

Toyota (6.4% Market Share): Since its inception in India in 1997, Toyota

Kirloskar Motor has witnessed a steady growth in the Indian automotive market

and is today more than ready to seize the enormous opportunity India offers.

Toyota’s newly built second plant is a testimony to this commitment and also, the

start of a new era for Toyota in India.

The company enjoys a 36 per cent market share in the segment that has degrown

by 13 per cent in 2013. Innova sales, that were up by 9 per cent till September,

ended the year with a 6 per cent overall decline in sales over 2012 on account of

the market slump in the last four months of the calender year. The company sold

43,699 Innovas last year, and is now targeting to sell 44,000 vehicles in 2014. The

new Innova is likely to face steep competition from the Mahindra Xylo launched

in January. Toyota hopes to attract the sedan customers with the new Innova

priced between Rs 7.6 lakh to Rs 11.06 lakh.


33


2.3.6 MILESTONES ACHIEVED/ AWARDS RECEIVED

CNBC TV 18 Overdrive Awards :

Category - Executive Car Of The Year

ET Zigwheels Awards :

Category - Innovation Of The Year Award

Autobild Golden Steering Wheel Awards :

Category - Green Steering Wheel

Car India Awards :

Category - Green Car Of The Year

CII-HR Excellence Award 2012:

Commendation for "Significant Achievement in HR Excellence" Award –

TKM

IQS 2011 award:

Premium Midsize Car Segment – Toyota Corolla Altis

MUV/ MPV Segment – Toyota Innova

CNBC TV 18 - Overdrive Awards 2012(13th Year):

Manufacturer of the Year – TKM

Car Indian Car & Bike Awards 2012:

Manufacturer of the Year – TKM

Car of the year – Etios

Mid Size Car of the year – Etios

Auto Build:

The Green Steering Wheel 2010 – Prius

Consumer favorite Large Family Car 2010 – Innova

Consumer favorite Enthusiast focused Car 2010 – Fortuner


34


Consumer favorite Off Road 2010 – Fortuner

Auto Build:

The Green Steering Wheel 2010 – Prius

Consumer favorite Large Family Car 2010 – Innova

Consumer favorite Enthusiast focused Car 2010 – Fortuner


35



As a responsible corporate citizen, Toyota kirloskar motor is constantly working

towards the development of people, communities and the earth at large.

TKM’s effort over the years towards developing prosperous society include

rebuilding a local residential school, construction of two water tanks in rural.

Bangalore that benefit around 80,000 people;reconstruction of a local police

station; awareness on environmental conservation for local schools; distribution of

school materials like bags, books, computers, and chairs to under-privileged

students; and donation of funds towards rehabilitating the victims of the Tsunami

and the Gujarat earthquake.

Ongoing initiatives

TKM started the Toyota Safety Education Program (TSEP) - an interactive

learning programme designed to teach school children about road safety in the

year 2007. It features interactive courses, traffic booths, an animated film,

computer and board games, and an informative website.

The Toyota Technical Training Institute (TTTI) was started in the year 2007 to

impart technical know-how about automobiles, or Monozukuri (skilled

manufacturing), to students who have the talent, but not the means, to pursue

higher studies. This residential school aims to develop a sound knowledge base,

individual skill sets, a strong body, and a positive attitude in every student.

TKM in conjunction with Toyota Motor Corporation and its nationwide dealer

network has initiated a unique training initiative - The Toyota Technical

Education Program (TTEP). The special training module, launched in 2006, aims

at enhancing the skill sets and employability of the students at the ITIs in the

country

Conforming to its eco-commitment, Toyota, together with NDTV, conducted a

host of eco-initiatives that culminated in India's first 24-hour live TV programme -


36


Greenathon. The three-year nationwide environment campaign aims at creating

awareness about issues that threaten the future of our planet. With an

overwhelming response from India's leading corporate houses, top Bollywood

stars, musicians, environmentalists, NGOs and educational institutions,

Greenathon Seasons I and II have been tremendously successful.


37


2.3.8 SWOT ASSESSMENT

Strengths

Brand reputation valued at $30 billion. Toyota’s brand is the most

valued automotive brand in the world. The business is known for its

environmentally friendly, safe and durable cars that are sold in more

than 170 countries.

International Position in 170 countries worldwide.

Second largest manufacturer automobile company in the world.

It is best known for durability, reliability and value for money and

convenient.

Its brand image in market is based on Quality and environmental

friendly

Presently maintains 16% of US market share

The leader in “green” cars development. Toyota understands that

environmental friendly cars are the necessity nowadays. Consumers are

more selective in terms of CO2 emissions and fuel-efficiency of the

cars they buy and Toyota’s early move towards selling hybrid and

efficient cars is the strength few competitors can match.

Weakness

Production capacity that is it produces most of its cars in US and JAPAN

whereas with that competitors might take advantage of global efficiency

gains.

Spending much money on Advertisements

Large-scale recalls.

Weak presence in the emerging markets.


38


Opportunities

Toyota produces fuel efficient, higher quality and smaller automobile that

can attract consumers.

With fuel price increasing every time they should produce hybrid gas

electric vehicles which are both fuel and environmental effective.

Toyota keeps on producing the new models of vehicles so attract each type

segment of population.

In 2009 state bank of India (SBI) decreased interest rate on automotive

loans which is also an opportunity for them.

They continued global expansion especially in Emerging markets that is

China, India and Russia where population and demand is accelerating

Changing customer needs.

Growth through acquisitions.

Threats

Increased competition, force full marketing campaigns and raising

competitive pressures.

Increasing Maintenance cost of vehicles, rising fuel price and changing

customer preference are challenging threats.

Adverse impact of fluctuations in foreign currency conversion rates.

Appreciating of Japanese Yens against US dollar.

People might be undermining the demand for large family .

Economic slow down

Decreasing fuel prices.

Rising raw material prices

New emission standards.


39


Chapter 3

RESEARCH DESIGN


40


3.1 REVIEW OF LITERATURE

According to the study carried out by RNCOS “Booming Used Car Market in

India Outlook 2017”, in that research they are doing an analysis of the used car

industry in India, has been fragmented down into four major divisions i.e. by

segment (covering small, mid size, SUVs and luxury cars), by players and by

major cities. And also the report further studies consumers’ behavior and price

patterns of used cars in India to help RNCOS’ analysts to in order to understand

and highlight the segments which is having maximum opportunity for growth.

Additionally, the report covers the various environment regulations and also they

collected information of various financing options available for used car.

The study focused on sales by dealers rather than private sales between

individuals, but the findings aim to provide clarity across the wider second-hand

car market.

According to Ken Research organization’s “ India used car industry outlook to

2018” – Shifting Focus of Key Automakers on Used Car Business’ presents a

inclusive analysis of the industry features including market size by value and

volume, market segmentation by different type of cars, by organizational

structure, by distribution channels involved and by major cities. The report also

involves the market share analysis and company profiles of major players along

with developments and trends. The analysis given that insights on the consumer

preference and behavior especially in online segment of the market has also been

discussed in the publication. The future analysis, macro-economic factors and

government regulations have also been discussed in the industry research report.

According to the research of “OFFICE OF FARE TRADING” Carried out in

early 2010, the study is mainly focused look at the second-hand car market. The

study is dealing about the large number of consumer complaints relating to the

used car sector. Last year, nearly 72,000 consumers complained to Consumer

Direct about issues with second-hand car sales.


41


The main aim of the study was to understand exactly what causes such a high

level of consumer complaints and to understand whether existing consumer

protection legislation - in particular the Consumer Protection from Unfair Trading

Regulations 2008 ('CPRs') - was appropriate and effective in this market.

Study carried out by ‘journal of consumer affairs’ explores the

relationship between reliability and price in the used car market. Some of the

measurement concerns, articulated by others in price-quality studies of new

products, are absent because of the choice of the secondary data sources from

which the relationships were formed. The finding obtained from this study is

showing that depreciation is free of reliability performance raises a number of

public policy issues regarding the information efficiency of the used car market.

According to the study carried out by American economic association, in

that study the researcher was studying that whether secondary market help or

harm durable goods manufacturers, they build a dynamic model of durable goods

oligopoly with different transaction costs in the secondary market. Adjusting

model parameters using data from the US automobile industry, and the researcher

find the net effect of the secondary market is to decrease new car manufacturers'

profits by 35 percent.

Hau Lee and Seungjin Whang conducted a study “The Impact of the

Secondary Market on the Supply Chain” in that study they investigate the

impacts of a secondary market where resellers can sell and buy extra inventories.

They develop a two-period model with a single manufacturer and many resellers.

At the beginning of the first period resellers receive and order products from the

Manufacturer, but at the starting of the second period, they can trade inventories

between themselves in the secondary market. Research people endogenously

originate the optimal results for the resellers, along with the equilibrium market

price of the secondary market. The secondary market generates two

interdependent effects—a quantity effect and an allocation effect. The former is

unspecified; i.e., the total sales volume for the manufacturer may rise or fall,


42


depending on the critical fractile. The latter is always positive; i.e., the secondary

market always advances allocative efficiency. The sum of the effects is also

indistinct—the welfare of the supply chain may or may not increase as a result of

the secondary market.

James L Ginter, Murray A Young, and Peter R Dickson conducted a study on “ A

Market Efficiency Study Used Cars Reliability and Prices” this study explores

the relationships between price and reliability in the used car market. Some of

measurement alarms expressed by others in price quality studies of new products,

are inattentive because of the source of the secondary data source from which

relations were derived. And finally researcher find out that depreciation is not

related of reliability performances raises number of public policy issue regarding

information efficiency of the used car market.

“Adverse Selection in the wholesale used car market” a study carried

out by David Genesove in this research researcher is empirically investigating of

adverse selection in the whole sale used car market. New car dealers differ from

used car dealers in the inclination to sell trade- ins on the wholesale market.

Models of adverse selection recommend that the dealers type that sells a higher

proportion of its trade – ins on the wholesale market will sell, on average, cars of

higher excellence and accept in return a higher price. A survey of dealers whole

sale behavior and price collected at a whole sale auction are used to this prediction

James Berkovec conducted a study entitled “New car sales and used car

stocks: a model of the automobile market” in this study he tried to develops a

short run general equilibrium model of the automobile market by joining a

separate choice model of consumer automobile demand with simple models of

new automobile manufacturing and used vehicle scrappage. The theoretical model

allows an unlimited degree of heterogeneity of both consumers and automobiles,

with equilibrium defined as combined demand equal to supply for every vehicle

type. Econometric estimates of the scrappage and demand function are then used

to create a simulation model of the automobile market, which is used to provide

forecast of automobile sales, stocks and scrappage for the 1978-1990 period.


43


"The Market for Lemons: Quality Uncertainty and the Market

Mechanism" is a 1970 paper by the economist George Akerlof. It

deliberates information irregularity, which occurs when the seller knows more

about a product than the buyer. A lemon is an American slang term for a car that

is found to be faulty only after it has been bought. Akerlof, Michael Spence,

and Joseph Stiglitz together received the Nobel Memorial Prize in Economic

Sciences in 2001 for their research connected to asymmetric information.

Akerlof's paper uses the market for used cars as an example of the problem of

quality vagueness. It concludes that owners of good cars will not place their cars

on the used car market. This is sometimes summarized as "the bad driving out the

good" in the market.


44


3.2 NEED FOR THE STUDY

Used goods are one that is being purchased by or otherwise transferred to a second

or later end user. A used good can also simply mean it is no longer in the same

condition as it was when transferred to the current owner. Used goods may be

transferred informally between friends and family for free as "hand-me-downs".

Governments require some used goods like cars to be sold through regulated

markets, as in the case of items which have safety and legal issues; for these

items, government licensing bodies require certification and registration of the

sale, to prevent the sale of stolen, unregistered, or unsafe cars. And also

governments regulate used car sales to ensure that the government gets its sales

tax revenue from the sale.

So this study helps to understand the comparative demand of used cars of

Maruti Suzuki, Hyundai, and Toyota cars in secondary market and also to find out

the customer preference on various supply chain of secondary market and also to

find out the predominant supply chain of Maruti Suzuki, Hyundai, Toyota in

secondary car market.


45


3.3 OBJECTIVES OF THE STUDY

The objective of the study can be stated as:

1. To find out the demand of Toyota, Maruti Suzuki, Hyundai cars in secondary car market

2. To find out the most common supply chain in secondary car market.

3. To find out the predominant supply chain in secondary car market of

Toyota, Maruti Suzuki and Hyundai cars.


46


3.4 METHODOLOGY:-

Data Collection: Primary data collection; through questionnaires and also secondary data collection.

Primary data collection is collecting data by means of direct interactions with the human subject. Examples of such methods used are interviews, questionnaires,

observations, measurements, and abstractions from medical records. These primary data collected are unique. The data can be quantitative or qualitative in

nature.

Research method: Quantitative and qualitative study

Quantitative research can gather a large amount of data that can be easily organised and manipulated into reports for analysis.

qualitative research is more focused on how people feel, what they think and why they make certain choices.

Research Tool: Structured questionnaire with close ended questions. A few open ended questions will be used to facilitate a deeper understanding of the issue in

hand.

Sampling: Simple random sampling technique

Simple random sample is a subset of individuals chosen from a larger set . Each individual is chosen randomly and entirely by chance, such that each individual

has the same probability of being chosen at any stage during the sampling process, and each subset of k individuals has the same probability of being chosen for the

sample as any other subset of k individuals. This process and technique is known as simple random sampling

Target group: used car owner and used card dealers

Sample Size: 75 used car owners and 25 used car dealers.

Sample size is the number of observations used for calculating estimates of a

given population.


47


3.5 LIMITATIONS OF THE STUDY

The study is limited to the extent of the abilities and willingness of the

respondents to answer appropriately the questions

The in depth study could not be made due to limitation of the time

The study has all the limitations of sampling methods

There may be errors due to respondents bias


48


3.6 CHAPTER SCHEME

I. INTRODUCTION

II. REVIEW OF LITERATURE

III. OBJECTIVES

IV. RESEARCH METHODOLOGY

V. DATA ANALYSIS AND INTERPRETATION

VI. FINDINGS OF THE STUDY

VII. CONCLUSION AND SUGGESTION

VIII. ANNEXURES

a) QUESTIONNAIRE

b) BIBILIOGRAPHY


49


Chapter 3

DATA ANALYSIS AND

INTERPRETATION


50


4.1 Analysis of used car owners

Table showing the profession of the respondents

TABLE NO 4.1

Particulars No of

respondents

Percentage of

respondents

Business 23 30.66667

Professional (Doctor,

lawyer)

3 4

Government

employee

10 13.33333

IT Professional 2 2.666667

Private company

(other than IT)

8 10.66667

Students 21 28

Housewife 0 0

Others 8 10.66667

TOTAL 75 100


51


Graph showing the profession of the respondents.

Graph no 4.1

Interpretation

Out of 75 respondents 30.67% of respondents are business people and there is no

respondent in the house wife category. From this we can understand majority of

used car owners are business people.

30.66666667

4

13.33333333

2.666666667

10.66666667

28

0

10.66666667

0

5

10

15

20

25

30

35


52


Table showing the per annum income of respondents

TABLE NO 4.2

Particulars No of respondents Percentage of

respondents

Below Rs 400000 38 50.66667

Rs. 400000 to Rs. 500000 11 14.66667

Rs. 500000 to Rs. 600000 12 16

Rs. 600000 & above 14 18.66667

Total 75 100

Graph showing the per annum income of respondents

CHART NO 4. 2

Interpretation:

From this we can understand that peoples who are in the income category below

400000 prefer used car more. So we can say that lower income people prefer used

car more compare to high income people

50.66666667

14.66666667 16 18.66666667

0

10

20

30

40

50

60

BELOW RS

400000

RS 400000 TO

500000

RS 500000 TO

600000

RS 600000 &

ABOVE


53


Table showing company of the car owned by the respondents.

TABLE NO 4.3

PARTICULARS No of

respondents

Percentage

of

respondents

Maruti Suzuki 41 54.66667

Hyundai 13 17.33333

Toyota 16 21.33333

Other 5 6.666667

TOTAL 75 100

Graph showing company of the car owned by the respondents.

CHART NO 4.3

Interpretation

From this analysis we can say that majority of the respondents are the owners of

used Maruti Suzuki car that is almost 54.67% of respondents and then Toyota

about 21.33% and then Hyundai its about 17.33%. From this we can say that

people are more purchasing Maruti Suzuki cars and then Toyota and after that

Hyundai

54.66666667

17.3333333321.33333333

6.666666667

0

10

20

30

40

50

60

MARUTI SUZUKI HYUNDAI TOYOTA OTHERS


54


Table showing the purpose of buying a used car

TABLE NO 4. 4

Particulars No .of

respondents

Percentage

of

respondents

Domestic use 56 74.66667

Reselling 5 6.66667

Scrapping 0 0

Business use 13 17.33333

Others 1 1.33333

Total 75 100

Graph showing the purpose of buying a used car.

GRAPH NO 4.4

Interpretation:

74% of respondents are purchasing car for their personal use 17.333% people are

purchasing for business use 6.67% people are purchasing for reselling purpose

from this we can understand that most of people are purchasing the used car for

their personal use and people are rarely purchasing used car for scrapping

74.66666667

6.6666666670

17.33333333

1.3333333330

10

20

30

40

50

60

70

80

DOMESTIC USE RESELLING SCRAPPING BUSINESS USE OTHERS


55


Table showing the various factors that consider by buyer before buying a

used car

TABLE NO 4.5

Part

icu

lars

Ver

y im

port

an

t

(% o

f re

spon

den

ts)

Imp

ort

an

t

(% o

f re

spon

den

ts)

Nei

ther

im

port

an

t or

not

imp

ort

an

t(%

of

resp

on

den

ts)

Not

imp

ort

an

t

(% o

f re

spon

den

ts)

Lea

st im

port

an

t

(% o

f re

spon

den

ts)

Tota

l

1 2 3 4 5

Cost of the car 53.3333 33.3333 6.666667 1.33333 5.33333 100

Budget limit 26.66667 48 16 6.66667 2.66667 100

Mileage of the car 42.6667 38.6667 9.33333 9.33333 0 100

Resale value of the

car 34.6667

29.3333 22.6667 10.6667

2.66667

100

Brand loyalty 40 25.3333 28 6.66667 0 100

Cheaper spare parts 30.6667 37.3333 25.3333 4 2.666667 100

Extended warranty 22.6667 18.6667 34.6667 12 12 100

Distance travelled 41.3333 32 14.6667 9.33333 2.666667 100


56


GRAPH NO 4.5

Interpretation

From this chart we can understand that people are giving very importance to

factors like cost of the car, budget limit of the buyer, mileage of the car, resale

value of the car, brand loyalty, cheaper spare parts, extended warranty, and

distance travelled

0

10

20

30

40

50

60

VERY IMPORTANT

IMPORTANT

NEITHER IMPORTANT NOR

IMPORTANT

NOT IMPORTANT

LEAST IMPORTANT


57


Table showing the people preference on various companies in used car

market

TABLE NO: 4.6

Particulars No of

respondents

Percentage

of

respondents

Maruti Suzuki 27 36

Hyundai 11 14.6667

Toyota 31 41.33333

Others 6 8

Total 75 100

Graph showing the people preference on various companies in used car

market.

Graph no: 4.6

Interpretation:

in this 41.3% of respondent like to purchase Toyota car 36% of respondents like

to purchase Maruti cars and 14.7% of respondents like to purchase Hyundai car.

So we can tell that people are more preferring for Toyota cars then Maruti and

then Hyundai. So we can say that demand for Toyota car in used car may increase

in the near future.

36

14.6667

41.33333333

8

MARUTI SUZUKI HYUNDAI TOYOTA OTHERS

0

5

10

15

20

25

30

35

40

45


58


Table showing the period of possession of car

Table no 4.7

Particulars No of

respondents

Percentage of

respondents

Less than 1 year 15 20

1 year to 5 years 53 70.66667

5 year to 10 years 7 9.333333

More than 10 years 0 0

TOTAL 75 100

Graph showing the period of possession of car

CHART NO 4.7

Interpretation:

most of the respondents are like to hold car for almost 1 to 5 years that is about

70.67% and 20% of people like to hold car for less than one year and no

respondents like to hold car more than 10 years.

20

70.66666667

9.333333333

00

10

20

30

40

50

60

70

80

LESS THAN 1 YEAR 1 YEAR TO 5 YEARS 5 YEARS TO 10

YEARS

MORE THAN 10

YEARS


59


Table showing respondent preference on old car

Table no 4.8

Particulars No of

respondents

Percentage

of

respondents

Less than 1 year 20 26.66667

1 year to 5 years 50 66.66667

5 year to 10 years 5 6.66667


Total 75 100

Graph showing respondent preference on old car

GRAPH NO 4.8

Interpretation:

66.67% of respondents like to purchase 1 year to 5 years old car and 26.67% of

respondents like to purchase less than 1 year old car. So 1 to 5 years old car has

got lot of demand in used car market

26.66666667

66.66666667

6.666666667

00

10

20

30

40

50

60

70

LESS THAN 1 YEAR 1 YEAR TO 5 YEAR 5 YEAR TO 10 YEAR MORE THAN 10

YEARS


60


Table showing the source of cars

TABLE NO 4.9

Particulars No of

respondents

Percentage

of

respondents

Company owned showrooms

21 28

Brokers 10 13.3333

Used car showrooms 19 25.3333

Internet 6 8

Direct seller 19 25.3333

Other 0 0

Total 75 100

Graph showing the source of cars

GRAPH NO 4.8

Interpretation:

28% of respondents had purchased from company owned showrooms and

25.333% of respondents had purchased from used car show room and also 25.33%

of respondents had purchased from direct sellers, 13.333% of respondents had

purchased from brokers and only 8% respondents had purchased from internet.

From this we can understand that people are most preferring company owned used

car showrooms for purchasing the used cars and after company owned showrooms

people are preferring unauthorized used car showrooms and direct sellers and after

unauthorized second hand showrooms and direct sellers people are preferring

brokers and then internet

28

13.33333333

25.33333333

8

25.33333333

00

5

10

15

20

25

30


61


Table showing the preferred channel through the respondent prefer to sell

the car

TABLE NO 4.10

Particulars No of

respondents

Percentage

of

respondents

Company owned showrooms 5 6.667

Through Brokers 10 13.333


Internet 14 18.667

Direct buyer 29 38.667

Others 0 0

Total 100 100

Graph showing the preferred channel through the respondent prefer to sell

the car

GRAPH NO 4.10

Interpretation

Majority of respondents are like to sell their used car to direct buyer that is 38.67

% of respondents like to sell their cars to direct buyer and after that respondents

like to sell their used cars to unauthorized used car showrooms after that people

are preferring internet to sell their used car. Brokers and company owned

showrooms are the least preferred place to sell cars.

6.666666667

13.33333333

22.6666666718.66666667

38.66666667

005

1015202530354045


62


Table showing the source of Maruti Suzuki cars

TABLE NO 4.11

Particulars No of respondents

Percentage of

respondents

Company owned showrooms 13 31

Brokers 6 14.634


Internet 3 7.317


Other 0 0

Total 41 100

Graph showing the source of Maruti Suzuki cars

CHART NO 4.11

Interpretation

From this chart we can understand that most of the peoples are purchasing second

hand Maruti cars from company owned showroom that is Maruti true value show

room that is almost 32% of respondents purchased second hand Maruti Suzuki

cars from company owned used car showrooms and after that company owned

second hand showroom people like to purchase from direct sellers that is about

24.390%. After the direct seller people like to purchase from unauthorized used

car showroom and then through brokers and then through internet respectively.

From this we can understand that more sales of used Maruti Suzuki’s cars are

happening through company owned showroom

31.70731707

14.63414634

21.95121951

7.317073171

24.3902439

005

101520253035


63



the Maruti Suzuki car

TABLE NO 4.12

Particulars No of

respondents

Percentage

of

respondents




Internet 7 17.07


Others 0 0

Total 41 100


the Maruti Suzuki car

CHART NO 4.12

Interpretation

From this we can understand most used car owners like to sell their used car to

direct buyers that is about 41.46% of respondents like to sell their used car to

direct buyers. After direct buyer people like to sell their car to used car showroom

that is about 19.5% of respondents. Peoples are less likely to sell their car to

company owned car showroom that is only 7.3% people like to sell their cars to

company owned second hand showroom

7.317073171

14.6341463419.51219512

17.07317073

41.46341463

005

1015202530354045


64


Table showing the source of Hyundai cars

TABLE NO 4.13

Particulars No of

respondents

Percentage

of

respondents


Brokers 2 15.38


Internet 0 0


Other 0 0

Total 13 100

Graph showing the source of Hyundai cars

Graph no 4.13

Interpretation

From this chart we can understand that more respondents had purchased their used

car from company owned second hand showrooms that is about 46.15% of

respondents. After the company owned showroom people do more prefer direct

sellers to purchase the used car that is about 25%. After direct sellers people

prefer second hand showrooms and brokers respectively.

43.75

12.5

18.75

0

25

00

5

10

15

20

25

30

35

40

45

50


65



the Hyundai car

TABLE NO 4.14

Particulars No of

respondents

Percentage

of

respondents




Internet 1 7.692


Others 0 0

Total 13 100


the Hyundai car

CHART NO 4.14

Interpretation

From this we can understand that more number of used Hyundai car owners are

like to sell their cars to direct buyers that is 37.5% respondents are like to sell their

used cars to direct buyers and after direct buyers people are like to sell their cars

to unauthorized second hand showroom after this people are like to sell through

brokers and through internet that is 12.5%. in the case of Hyundai people are least

like to sell their cars to company owned second hand showroom that is only6.25%

of peoples are like to sell their cars to company owned second hand showroom.

6.25

12.5

31.25

12.5

37.5

00

5

10

15

20

25

30

35

40


66


Table showing the source of Toyota cars

TABLE NO 4.15

Particulars No of

respondents

Percentage

of

respondents


Brokers 2 12.5


Internet 3 18.75

Direct seller 4 25

Other 0 0

Total 16 100

Graph showing the source of Toyota cars

GRAPH NO 4.15

Interpretation:

From this we can understand that more people are like to purchase Toyota used

cars from used car showroom that is about 38.89% of respondents purchased their

car from used car showroom. After used car showroom people are more prefer to

purchase used car from direct sellers that is about 27.78% after this people are

more prefer to purchase Toyota car through internet and then through brokers and

then from company owned showrooms

5.555555556

11.11111111

38.88888889

16.66666667

27.77777778

00

5

10

15

20

25

30

35

40

45


67



the Toyota cars

Table no 4.16

Particulars

No of

respondents

Percentage

of

respondents




Internet 4 25


Others 0 0

Total 16 100


the Toyota cars

GRAPH NO 4.16

Interpretation:

From this chart we can understand that 33.33% of respondents like to sell their

second hand Toyota car to direct buyers. Selling through internet is in the second

position in the case of second hand Toyota cars that is 27.7% people like to sell

their second hand Toyota car through internet. Used car showroom is in the third

position with 22.22% of respondent and then selling through brokers is in the

fourth position with 11.11%. people are least preferring company owned

showroom for selling their second hand Toyota cars.

5.555555556

11.11111111

22.22222222

27.77777778

33.33333333

00

5

10

15

20

25

30

35


68


ANALYSIS OF DEALERS

Table showing the experience of dealers in used car sales

TABLE NO 4.17

Particulars No of

respondents

Percentage

Of

respondents


1 year to 5 years 12 48

5 years to 10 years 5 20


Total 25 100

Graph showing the experience of dealers in used car sales

GRAPH NO 4.17

Interpretation:

From this chart we can understand that 48% of dealers have experience of 1 year

to 5 years and 20% of dealers have an experience of 5 to 10 years. Only 16% of

dealers having experience for more than 10 years and also 16% of dealers having

an experience less than 1 year

16

48

2016

0

10

20

30

40

50

60

LESS THAN 1 YEAR 1 YEAR TO 5

YEARS

5 YEARS TO 10

YEARS

MORE THAN 10

YEARS


69


Table showing whether the second car dealer is an authorized dealer of any

car company

TABLE NO 4.18

Particulars No of

respondents

Percentage

of

respondents

Yes 4 16

No 21 84

Total 25 100

Graph showing whether the second car dealer is an authorized dealer of any

car company

GRAPH NO 4.18

Interpretation:

From this we can understand that 84% of respondents are not authorized dealers

of car. Only 16% of dealers are authorized dealer of company. From this analysis

we can say that numbers of unauthorized car dealers are more compare to

authorized car dealers

16

84

0

10

20

30

40

50

60

70

80

90

YES NO


70


Table that showing whether the dealers are having any contact with company

owned dealers for selling their cars

TABLE NO: 4.19

Particulars

No of

respondents

Percentage

of

respondents

Yes 9 36

No 16 64

Total 25 100

Graph that showing whether the dealers are having any contact with

company owned dealers for selling their cars

GRAPH NO: 4.19

Interpretation:

From this analysis we can understand that 64% of respondents are not having any

contacts with company owned dealers for selling their car. Only 36% of

respondents have contacts with company owned dealers to sell their car

36

64

0

10

20

30

40

50

60

70

YES NO


71


Table showing whether the dealers are having any criteria for selecting the

car to be sold

TABLE NO 4.20

Particulars

No of

respondents

Percentage

of

respondents

Yes 16 64

No 9 36

Total 25 100

Graph showing whether the dealers are having any criteria for selecting the

car to be sold

GRAPH NO 4.20

Interpretation:

From this analysis we can understand that 64% of dealers are having specific

criteria for selecting a car that to be sold and only 34% of dealers are not having

any criteria for selecting a car that to be sold

64

36

0

10

20

30

40

50

60

70

YES NO


72


Table showing whether the dealers advertise about their dealership in the

web portal or not

TABLE NO 4.21

Particulars

No of

respondents

Percentage

of

respondents

Yes 7 28

No 18 72

Total 25 100

Graph showing whether the dealers advertise about their dealership in the

web portal or not

GRAPH NO 4.21

Interpretation:

From this we can understand that only 28% of dealers are doing advertisement in

internet and majority of dealers are not doing advertisement in internet. From this

analysis we can understand that majority of dealers are not depending upon

internet for selling their cars

28

72

0

10

20

30

40

50

60

70

80

YES NO


73


Graph showing the average life span of the car dealer deal with

TABLE NO 4.22

Particulars

No of

respondents

Percentage

of

respondents


1 year to 5 years 17 68


Total 25 100

Table showing the average life span of the car dealer deal with

GRAPH NO 22

Interpretation:

From this we can understand that 68% of dealers are mostly dealing with cars of 1

to 5 years old and 24% of dealers are mainly dealing with car which is less than 1

year old and only 8% of dealers are dealing with car more than 5 years old. From

this we can understand that 1 to 5 years old cars have got maximum demand in the

used car market.

24

68

8

0

10

20

30

40

50

60

70

80

LESS THAN 1 YEAR 1 YEAR TO 5 YEARS MORE THAN 5 YEARS


74


Table showing the bestselling car in the used car market

TABLE NO 4.23

Particulars

No of

respondents

Percentage

of

respondents

MARUTI SUZUKI 19 76

HYUNDAI 4 16

TOYOTA 2 8

Total 25 100

Graph showing the bestselling car in the used car market

GRAPH NO 4.23

Interpretation

From this analysis we can understand that 76% of dealers are saying that Maruti

Suzuki is the bestselling car in the used car market and 16% of dealers are telling that Hyundai is the bestselling car in the used car market and only 8% of respondents are saying that Toyota is the most selling car from. From this we can

say that Maruti Suzuki is the best selling cars in the used car market.

76

16

8

0

10

20

30

40

50

60

70

80

MARUTI SUZUKI HYUNDAI TOYOTA


75


Table showing the comparative demand of Maruti Suzuki, Toyota, Hyundai

in the used car market

TABLE NO 4.24

Particular Very

good Average

Not that

good Total

Maruti

Suzuki 21 3 1 25

Hyundai 4 8 3 25

Toyota 2 11 12 25

Graph showing the comparative demand of Maruti Suzuki, Toyota, Hyundai

in the used car market

GRAPH NO 4.24

Interpretation

From this we can understand that Maruti Suzuki is the most selling car in the used

car market and then Hyundai is the most selling car in the second hand market

next to Maruti Suzuki Toyota cars sales are less than compare to Maruti Suzuki

and Hyundai.

0

5

10

15

20

25

VERY

GOODAVERAGE NOT THAT

GOOD

MARUTI SUZUKI

HYUNDAI

TOYOTA


76


Table showing the average number of car that dealers generally trade in a

month

TABLE NO 4.25

Particulars Maruti

Suzuki

Hyundai Toyot

a

Less than 10 5 15 19

10 to 25 8 9 4

25 to 50 12 1 2

More than 50

Total 25 25 25

Graph showing the average number of car that dealers generally trade in a

month

GRAPH NO 4.25

Interpretation:

Out of 25 dealers 12dealers are selling more than 25 Maruti cars in a month and

only one dealer is selling Hyundai cars more than 25 in a month. Only 2 dealers

are selling more than 25 Toyota cars in a month from this we can understand that

Maruti Suzuki cars demand is more compare to Hyundai and Toyota

0

2

4

6

8

10

12

14

16

18

20

MARUTI

SUZUKI

HYUNDAI TOYOTA

LESS THAN 10

10 TO 25

25 TO 50

MORE THAN 50


77


Table showing the different sources of used cars

TABLE NO 4.26

Particular No of

respondents

Percentage

of

respondents

Customers 19 76

Auction in police station 2 8

Company showrooms 1 4

Other sources 3 12

Total 25 100

Graph showing the different sources of used cars

GRAPH NO 4.26

Interpretation: from this we can understand that 76% of dealers are purchasing

cars from the customers, 8% of dealers are taking car through auction in police

station, 4% of dealers are taking car from company owned showrooms and 12% of

dealers are taking from other sources. So main source of cars for dealers are from

used car owners.

76

84

12

0

10

20

30

40

50

60

70

80

CUSTOMER AUCTION IN

POLICE STATION

COMPANY

SHOWROOMS

OTHER SOURCES


78


Table showing the period of holding a car model by dealers for selling

TABLE NO 4.27

Particulars No of

respondents

Percentage

of

respondents

One week to 1 month 3 12

1 month to 2 months 17 68

2 months to 6 months 4 16

More than 6 months 1 4

Total 25 100

Graph showing the period of holding a car model by dealers for selling

Graph No 4.27

Interpretation

68% of dealer will hold car about a period of 1 month to 2, 16% of dealer will

hold car about a period of 2 to 6 months, 12% of dealer will hold car about a

period of 1 week to 1 month, 4% of dealer will hold a car about a period of more

than 6 months

12

68

16

4

0

10

20

30

40

50

60

70

80

ONE WEEK TO 1

MONTH

1 MONTH TO 2

MONTHS

2 MONTHS TO 6

MONTHS

MORE THAN 6

MONTHS


79


Chapter 5

SUMMARY OF FINDINGS,

CONCLUSION & SUGGESTIONS


80


5.1 SUMMARY OF FINDINGS OF CUSTOMERS

Most of the secondhand car owners are business people.

Peoples who are having annual income below 4 lakh rupees prefer

secondhand car more compare to high income people.

Majority of peoples are having Maruti Suzuki used car, Toyota is in

second position and Hyundai is in third position.

Majority of peoples are buying secondhand car for their personal use.

Almost all used car owners keep their car for a period of 1 year to 5 years.

Almost all people prefer 1 year to 5 years old used car to purchase.

From this analysis we can understand that all most all people are

purchasing their used car from company owned secondhand car show

rooms.

From this analysis we can understand that peoples are more like to sell

their cars to direct buyers.

From this analysis we can understand that most people are purchasing their

used Maruti Suzuki cars from company owned used car showroom.

Most people are selling their second Maruti Suzuki cars to direct buyers.

More people are buying used Hyundai’s cars from company owned used

car showroom.

Most people are selling their used Hyundai car to direct buyers

People are like to purchase used Toyota cars from unauthorized used car

showroom.

People like to sell their used Toyota cars to direct buyer comparing to

other source of selling.

Sales through internet are very less compare to other channel of sales.


81


5.2 SUMMARY OF FINDINGS OF DEALERS

Majority of car dealers are unauthorized car dealers.

Majority of car dealers are having many criteria for selecting car to be sold

and the main criteria are colour of the car, model of the car, the place of

registration of car, body shape of the car etc…

From this study we can understand that most of dealers are not giving

advertisement of their dealership in internet.

Almost all dealers are dealing with car which is 1 year to 5 year old

From this study we can understand that Maruti Suzuki is the most

demanded car in the secondary market. After Maruti Hyundai is in the

second demanded car in the secondary market and Toyota is in third

position.

Dealers are selling more Maruti Suzuki cars compare to Hyundai and

Toyotas cars.

The main sources of secondary car for dealers are from customers.

Most dealers will hold a car model for a period of 1 month to 2 months for

selling


82


5.3 CONCLUSION

Used car can benefit the purchaser as the price paid is lower than the same items

bought new. If the reduction in price more than compensates for the possibly

shorter remaining lifetime, lack of warranty, and so on, there is a net benefit.

Buying used cars reduces carbon footprint and CO2 emissions significantly

compared to the complete product life cycle, because of less production, raw

material sourcing and logistics.

From this research we can understand that the most demanded car in the used car

market is Maruti Suzuki compare to Hyundai and Toyota. We can also understand

that most of the secondary car owners income is less than 4 lakh per annum.

From this research we can also find out that majority of people are purchasing

their used car from company owned used car show rooms and also they are more

like to sell their cars to direct buyers. From this we can understand that cars from

seller to company owned used car showroom then to customer then to direct

buyers this is how mainly the flow of used car is happening in secondary car

market.

From this study we can understand that most people are purchasing second hand

Maruti Suzuki and Hyundai cars from company owned used car showroom. where

as in the case of Toyota people are more interested to purchase their car from

unauthorized used car show rooms and they are like to sell their car to direct

buyers .

From this study we can also understand that Majority of car dealers are having

criteria for selecting car to be sold and the main criteria are colour of the car,

model of the car, the place of registration of car, body shape of the car etc…


83


5.2 SUGGESTION

For customers

It is better to purchase used car because it reduces carbon footprint and

CO2 emissions significantly compared to the complete product life cycle,

because of less production, raw material sourcing and logistics.

It is better to purchase Maruti Suzuki cars for reselling because Maruti

Suzuki cars has got lot of demand in the secondary car market

Customers can sell their car through internet because through internet they

can easily find out direct buyers.

For customers it is better to purchase Maruti Suzuki cars because they can

easily sell it off whenever they want.

People can purchase used Toyota cars because demand of used Toyota

cars will increase in short feature,

For used car players

Used car market players should concentrate more on IT professional and

other professionals like Doctors and lawyers because they are not like to

buy used cars compare to other people

Hyundai Company and Toyota Company should concentrate more in

secondary car market because Maruti Suzuki is doing extremely well in

secondary car market.

Secondary car buyers are more preferring company owned showrooms for

purchasing the used car. So the other players like Brokers, unauthorized

cars showrooms, internet sites and direct sellers should adopt new

attractive strategies in order to attract the customer who is going to

company owned showroom.


84


Car owners are more interested to sell their car to direct buyer because

they have the perception that they will get more money if they are selling

to direct buyer. So other players like brokers, company owned showrooms

etc. should introduce new strategies to attract the sellers.

The unauthorized used car showroom should make contact with company

owned used car showrooms to sell their cars. So that they can increase

their sales.

People are not much concerned about the extended warranty of used car so

the used car dealers can avoid that option for the used cars.

People are much concerned about the price of the car. So if the used car

seller are ready to give any discounts then they can attract lot of

customers.

People are more purchasing 1 year to 5 years old car so for used car sellers

it is better to hold 1 year old to 5 years old car for selling.

For selling Hyundai, Toyota cars sellers should adopt some more

promotional techniques.

Presently direct sellers are the main source of cars for used car dealers.

Instead of direct sellers they can take cars from police station by auction or

from private financiers by auction.

In order to increase the sales unauthorized and authorized used car dealers

can give their advertisement internet.


85


BIBLIOGRAPHY


86


BIBILIOGRAPHY

Books Purchasing and supply chain management by Kenneth Lysons and

Brian Farrington

Supply chains A Manger’s Guide by David A. Taylor

Industry and firm studies by edited by Victor J. Tremblay, Carol

Horton Tremblay

Websites

http://en.wikipedia.org/wiki/Automotive_industry_in_India

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Hyundai

http://en.wikipedia.org/wiki/Toyota

http://www.rncos.com/Report/IM641.htm

http://www.kenresearch.com/automotive-transportation/auto-

components/india-used-car-market-research-report/438-100.html

http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.7.2911

http://worldwide.hyundai.com/WW/Corporate/CorporateInformatio

n/CSR/index.html

http://www.marutisuzuki.com/sustainability.aspx

http://www.toyotabharat.com/inen/about/social/social_contribution

.aspx

http://www.marutisuzuki.com/accolades.aspx

http://www.hyundai.com/in/en/AboutUs/Awards/2013/index.html

http://www.toyotabharat.com/inen/about/toyota_awards.aspx

http://www.marutisuzuki.com/company-at-a-glance.aspx

http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/Who

WeAre/index.html

http://www.toyotabharat.com/

http://en.wikipedia.org/wiki/Automotive_industry_in_India

http://en.wikipedia.org/wiki/Maruti_Suzuki

http://en.wikipedia.org/wiki/Hyundai

http://en.wikipedia.org/wiki/Toyota

http://www.rncos.com/Report/IM641.htm

http://www.kenresearch.com/automotive-transportation/auto-components/india-used-car-market-research-report/438-100.html

http://www.kenresearch.com/automotive-transportation/auto-components/india-used-car-market-research-report/438-100.html

http://www.aeaweb.org/articles.php?doi=10.1257/aer.103.7.2911

http://worldwide.hyundai.com/WW/Corporate/CorporateInformation/CSR/index.html

http://worldwide.hyundai.com/WW/Corporate/CorporateInformation/CSR/index.html

http://www.marutisuzuki.com/sustainability.aspx

http://www.toyotabharat.com/inen/about/social/social_contribution.aspx

http://www.toyotabharat.com/inen/about/social/social_contribution.aspx

http://www.marutisuzuki.com/accolades.aspx

http://www.hyundai.com/in/en/AboutUs/Awards/2013/index.html

http://www.toyotabharat.com/inen/about/toyota_awards.aspx

http://www.marutisuzuki.com/company-at-a-glance.aspx

http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html

http://www.hyundai.com/in/en/AboutUs/HyundaiMotorIndia/WhoWeAre/index.html

http://www.toyotabharat.com/


87


http://www.businessstandard.com/article/companies/toyota-

kirloskar-hopes-to-retain-market-share-with-new-innova-

109020900020_1.html

http://hpromise.hyundai.co.in/abouthyundaiadvantage/profile.aspx

http://www.toyotautrust.in/about_utrust

http://www.marutitruevalue.com/AboutUs/AboutUs_MarutiTrueV

alue.aspx

http://web.b.ebscohost.com/ehost/detail?sid=e08fc079-2636-4f42-

a837-

42844b258faf%40sessionmgr110&vid=1&hid=122&bdata=JnNpd

GU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=92707788

http://web.b.ebscohost.com/ehost/detail?sid=0752e727-4d6f-42c1-

af97bc8ca7610443%40sessionmgr111&vid=1&hid=122&bdata=Jn

NpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=4469361

http://en.wikipedia.org/wiki/Used_goodhttp://en.wikipedia.org/wik

i/The_Market_for_Lemons

http://www.businessstandard.com/article/companies/toyota-kirloskar-hopes-to-retain-market-share-with-new-innova-109020900020_1.html



http://hpromise.hyundai.co.in/abouthyundaiadvantage/profile.aspx

http://www.toyotautrust.in/about_utrust

http://www.marutitruevalue.com/AboutUs/AboutUs_MarutiTrueValue.aspx

http://www.marutitruevalue.com/AboutUs/AboutUs_MarutiTrueValue.aspx

http://web.b.ebscohost.com/ehost/detail?sid=e08fc079-2636-4f42-a837-42844b258faf%40sessionmgr110&vid=1&hid=122&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=92707788




http://web.b.ebscohost.com/ehost/detail?sid=0752e727-4d6f-42c1-af97bc8ca7610443%40sessionmgr111&vid=1&hid=122&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bsh&AN=4469361



http://en.wikipedia.org/wiki/Used_good

http://en.wikipedia.org/wiki/Used_good

http://en.wikipedia.org/wiki/The_Market_for_Lemons


88


ANNEXURE

ANNEXURE- I

QUESTIONNAIRE 1

“Study on secondary car market of

Hyundai, Maruti Suzuki and Toyota”

QUESTIONNAIRE

I am doing my dissertation work as part of my MBA course with Bangalore

University. In this connection I would like to administer a questionnaire to

you that would take up 10 minutes of your time. Please note that this is a

purely academic study and the information that you give will not be used for

any other purpose.

DEMOGRAPHICS

1. Respondent Details


89


Name

E mail id

Mobile no.

(Please mark on the appropriate column)

2. Please mark on your current profession?

Business

Professional (Doctor, lawyer)

Government employee

IT Professional

Private company (other than IT)

Students

Housewife

Others

3. Please mark on your per annum income category.

Below Rs 400000

Rs. 400000 to Rs. 500000

Rs. 500000 to Rs. 600000

Rs. 600000 & above

MAIN QUESTIONNAIRE


4. Do you own a car?

Yes

No


90


5. Where have you purchased your car?

Second hand market

Brand new car showroom

6. Which company car do you have?

Maruti Suzuki

Hyundai

Toyota

Other

7. If other specify

___________________________________________________________

8. What was the purpose of buying the car?

Domestic use

Reselling

Scrapping

Business use

Others

9. What are the parameters that you will consider before buying the used car?

Please give your answer on a scale of 1 to 5 where ‘1’ means ‘very important’ and ‘5’ means ‘not at all important’

Particulars Very

important

Important Neither

important

nor not

important

Not

important

Least

important

1 2 3 4 5

Cost of the car

Budget limit

Mileage of the car


91


10. If you will buy a used car, then which company car will you prefer for?

Maruti Suzuki

Hyundai

Toyota

Others

11. How long on an average do you keep the car?

Less than 1 year

1 year to 5 years

5 year to 10 years

More than 10 years

12. How many years old car do you prefer?

Less than 1 year

1 year to 5 years

5 year to 10 years

More than 10 years

13. The source of your car?


Brokers

Used car showrooms

Internet

Direct seller

Other

Resale value of the

car

Brand loyalty

Cheaper spare parts

Extended warranty

Distance travelled


92


14. If other specify

________________________________________________________________________

15. What is the reason for which you have purchased from that particular

source?

________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________

___________

16. If you had sold the car, then to whom would you sell your car?


Through Brokers

Used car showrooms

Internet

Direct buyer

Others

17. If others specify

________________________________________________________________________

18. What is the reason for which you have sold to that particular source?

________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________

___________


93


ANNEXURE- II

QUESTIONNAIRE 2

“Study on secondary car market of

Hyundai, Maruti Suzuki and Toyota”

QUESTIONNAIRE

I am doing my dissertation work as part of my MBA course with Bangalore

University. In this connection I would like to administer a questionnaire to

you that would take up 10 minutes of your time. Please note that this is a

purely academic study and the information that you give will not be used for

any other purpose.

1. Respondent Details

Name

E mail id

Mobile no.


2. Experience in dealership:

Less than 1 year

1 year to 5 years

5 years to 10 years

`More than 10 years

3. Are you an authorized used car dealer of any of the company?

Yes

No

4. If yes specify


94


________________________________________________________________________

5. Do you have contact with the main company owned distributors for sales

of the product?

Yes

No

6. Do you have any selection criteria for selecting the car to be sold?

Yes

No

7. If yes what are the various criteria’s?

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

________________

8. Do you advertise about your market in the web portals?

Yes

No

9. What is the average life span of the cars you deal with?

Less than 1 year

1 year to 5 years

More than 5 years

10. Which among the 3 are the best selling cars in the used car market?

Maruti Suzuki

Hyundai

Toyota


95



96


11. What is the comparative demand for the cars in the secondary car market?

Very good Average Not that

good

Maruti

Suzuki

Hyundai

Toyota

12. What is the average number of cars you generally trade in a month?

Maruti

Suzuki

Hyundai Toyota

Less than 10

10 to 25

25 to 50

More than 50

13. Which is your source for the secondary cars?

Customers

Auction in police station

Company showrooms

Other sources

14. If other sources specify

15. How long do you keep a car model for selling?

One week to 1 month

1 month to 2 months

2 months to 6 months

More than 6 months