Overview of Indian Automotive Industry
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PREFACE Project work is one of the most important activities of Professional curriculum at every level irrespective of degree or diploma. This provides us an opportunity to apply our knowledge, skills and aptitude in real life. It also provides an opportunity to work in a group and share responsibilities. The purpose of practical training for management students is to keep them understands the management of working organization in all it’s aspects especially in the area specialization. It also helps them to broaden their horizon and in efficiency grasping the intricacies in good stand when they are actually in management position in an organization . It also intends to integrate the theoretical concept with the practical working of an organization. The project should include relative information and details of the market so that it is easy to draw inference from it about the current market situation . Proper execution of plans and projects are responsible for the economic growth of the country 1 CONTENTS Sl. No. Titles I Chapter 1- Introduction . Objective . Research Methodology . Significance of the Topic . Limitation . Conclusion II Chapter 2 – Conceptual Frame Works . Whole Study of the Topic III Chapter 3 – Significance & Relevance . Whole Study significance & relevance IV Chapter 4 – Review of Literature V Critical Analysis of the Study VI Scope of the further Study VII Conclusion VIII Bibliography 2 INTRODUCTION OVERVIEW OF INDIAN AUTOMOTIVE INDUSTRY The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. 3 The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the begining of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized engine-powered vehicle was created. The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry Ford's first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors. The 1940s saw features like automatic transmission, sealed-beam headlights, and tubeless tires. The year 1957 brought powerful high-performance cars such as Mercedes- Benz 300SL. This was the Indian automobile history, and today modern cars are generally light, aerodynamically shaped, and compact. CAR MANUFACTURERS IN INDIA 4 The reason behind the immense growth of the India Car Industry can be attributed to the availability of car loans, affordable rates of interest, smooth repayment facilities and the deductions offered to the customers by the retailers. The constant changes in the existing car models with regard to design, innovation, technology, and colors, have led to a fiercely competitive market. Now that technology and innovation are not alien concepts for Indian car makers, Indian cars are becoming increasingly sleek, stylish, and luxurious. Major players in the Indian Car Industry: Fierce competition among the major car players can be witnessed in the Indian Car industry. The India car industry is being dominated by the following major players: • HINDUSTAN MOTORS • MARUTI UDYOG • REVA ELECTRIC CAR CO • DAIMLER CHRYSLER INDIA PRIVATE LTD • FIAT INDIA PRIVATE LTD • FORD INDIA LTD • GENERAL MOTORS INDIA • HONDA SIEL CARS INDIA LTD • HYUNDAI MOTORS INDIA LTD • TOYOTA KIRLOSKAR MOTOR LTD • SKODA AUTO INDIA PRIVATE LTD • AUDI AG • BMW 5 • CHEVROLET • FORCE MOTORS • NISSAN MOTOR CO. LTD • PORSCHE • ROLLS-ROYCE MOTOR • CAR COMPANIES IN INDIA • TATA MOTORS CAR SEGMENTATION With the expansion of Indian Automotive market over a period of time the segmentation of car models came in to existence based on cars defining characteristics namely: • Size • Performance • Price However with continuing growth of market SIAM ( Society of Indian Automotive Manufacturers) implemented the segmentation of cars on the basis of length of the cars. 6 CHANGES IN CAR INDUSTRY IN INDIA The latest developments in the car market in India: In Agra, a car manufacture plant has been established as a result of a joint venture of Renault and Mahindra & Mahindra to manufacture a comparatively cheap cars (at US$ 9,700), mainly targeting the Indian middle classes, the youth, and the affluent classes in rural India. Tata Motors has plans to launch a luxury car with an engine of 33 horsepower. The recent reduction in the excise duty of the small cars from 24% to 16% will definitely prove to be a boon for the India car industry. Technical advancements in the Indian Car Industry: The latest technical advancements in the car market in India include the following features • Power Steering • Radial Tires • Anti-lock Breaking Systems • Tip-tronic Transmission The varied car markets in India: The market for small cars now occupies a substantial share of 70% out of the annual production of 1 million cars in India. Maruti Udyog, with its legendary Maruti -800 is the leader in the small car market. A number of manufacturing plants are coming up for advancements in the field of small cars. The recent launches in the small car market in India are: • Getz Prime by Hyundai Motor Co. • Tata Magic by Tata Motors Tata Magic 7 • Palio Stile byFiat India Pvt. Ltd Mid-sized cars are normally cars ranging from Rs. 3-8 lakh and generally meant to be 4 seaters. The mid-sized car section has recently moved beyond the 1 lakh target. The recent launches in the mid-size car market in India are: • 1.4 SXI Duratorq by Ford Motor Co. • Indigo XL by Tata Motors Luxury cars and premium cars are quite expensive and they are purchased for their design, innovation, and technology. They are usually priced over Rs. 20 lakh and have many takers in India. The recent launches in the premium car market in India and the luxury car market in India are: • Sonata Embera H-Matic by Hyundai Motor Co. • Nissan Teana by Nissan Motor Co. Ltd Sports Utility Vehicles (SUVs) have also become very popular in India as they are considered advantageous due to their ability to accommodate more passengers. They are ideal for trips with the whole family. The Sport Utility Vehicle market in India is the most booming market in India presently and SUVs have become the fastest selling cars of India. 8 OBJECTIVE OF THE STUDY • To get overview of sales scenario of the automobile industry • To know how much customers are satisfied with the services provided to them by Hyundai and Maruti Bareilly. • To give suggestions for improvements on the points where they are lacking on the basis of feedback from the customer. These objectives were achieved by following a well thought out plan and defining the problem for each objectives separately. 9 RESEARCH METHODOLY Research methodology is a way to systematically solve the research objective. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by researcher in studying his research objective along with logic behind it. It is necessary for the researcher to know not only the research methods/ techniques but also the methodology. Researcher not only need to know how to apply particular research technique, but also need to know which of these methods or techniques are relevant and which are not and what would they mean and indicate and why. All this means that it is necessary for the researcher to design his methodology for his objective under study as the same may differ objective to objective. Thus when we talk of research methodology we not only talk of the research method but also consider the logic behind the methods we use in the context of a research study and explain why we are using a particular method or techniques and so that research results are capable of being evaluated. 10 SOURCES OF DATA COLLECTION Data collection methods are credible with validated surveys and/or other methods are clearly described such as observational strategies, the data or information is current. The data collection is focused on a limited sample of population and has minimal application in terms of generalizing the findings. • Primary Data: It can be collected directly or indirectly. It was done through a well structured and designed questionnaire which contain 16 number of questions which were asked directly to the customers of Sachin Hyundai Bareilly showroom and Koral Motars. • Secondary Data: It refers to data which have been collected and analyzed by someone else. It consists of internet and books etc. Secondary data has also been collected through the Hyundai Sales training handout. • Sample Size: A sample size of 40 respondents was taken to conduct the study of Questionnaire Statement of the Problem Today’s customers are an important element in every business so to retain a customer and make the loyal company is a great challenge.