INTRODUCTION OF AUTOMOBILE INDUSTRY

India is an emerging country with huge potential. The domestic economy is now growing at around 9-10% per annum and ’s importance in global terms is being reinforced by rapidly rising exports and domestic consumption. At a time when numbers of a slowdown and overheating in the Indian economy have started gaining momentum, the Indian rupee sprang a surprise by pushing the GDP figure past the trillion-dollar (42,00,000 crore) mark.

The automotive industry is at the center of India’s new global dynamic. The domestic market expanding rapidly as incomes rise and consumer credit becomes more widely available. Manufacturer’s product lines are being continually expanded, as is the local automotive manufacturing base. Expectation are high that India can develop as a global hub for vehicle manufacturers and as an outsourcing center that offers the global automotive industry solution high up the automotive value chain.

 India eyes 25 million automotive jobs.  India's GDP is set to double over the next decade  In percentage terms, the automotive industry's contribution should also double.  In dollar terms, the sector's contribution is set to quadruple to some $145bn With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of 1 million four-wheeled vehicles a year, plus a further 5 million two- and three-wheelers.

Historical back ground In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014.

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two- wheelers and heavy vehicles.  The first automobile in India rolled in 1897 in Bombay.  India is being recognized as potential emerging auto market.  Foreign players are adding to their investments in Indian auto industry.  Within two-wheelers, motorcycles contribute 80% of the segment size  Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).  Tata Motors dominates over 60% of the Indian commercial vehicle market.  2/3rd of auto component production is consumed directly by OEMs.  India is the largest three-wheeler market in the world.  India is the largest two-wheeler manufacturer in the world.  India is the second largest tractor manufacturer in the world.  India is the fifth largest commercial vehicle manufacturer in the world.  The number one global motorcycle manufacturer is in India.  India is the fourth largest car market in Asia - recently crossed the 1 million mark. Mahindra & Mahindra

Introduction Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $7.1 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The today is an embodiment of global excellence and enjoys a strong corporate brand image.

Mahindra is the only Indian company among the top tractor brands in the world. It is today a full-range player with a presence in almost every segment of the automobile industry, from two-wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric Vehicles domain.

The Mahindra Group expanded its IT portfolio when acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam. Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the year 2008- 09.

History

Few groups can identify as closely with India's destiny and industrial progress as the Mahindra Group. In fact, Mahindra is like a microcosm of India. Both were born around the same time, had the same aspirations and both experienced the inevitable troughs and crests in the journey towards their goals. And both continue to march on the path to progress and global recognition.

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States of America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged 'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and its kutcha rural roads?

Swift action followed thought. The Mahindra brothers joined hands with a distinguished gentleman called Ghulam Mohammed. And, on October 2nd, 1945, Mahindra & Mohammed was set up as a franchise for assembling jeeps from Willys, USA.

Two years later, India became an independent nation and Mahindra & Mohammed changed its name to Mahindra & Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first Finance Minister of Pakistan.

Since then, Mahindra & Mahindra has grown steadily in size and stature and evolved into a Group that occupies a premier position in almost all key sectors of the economy. The Group's history is studded with milestones. Each one taking the Group forward. In fact, today, its total turnover is about 7.1 billion dollars.

Mahindra is a group in a hurry, engaged in an ambitious, sustained and prolonged penetration into the global arena. Its spirit can be encapsulated in the words of the poet Robert Frost, a favourite of India's first Prime Minister, Pandit Jawaharlal Nehru:

"The woods are lovely, dark and deep, But I have promises to keep, And miles to go before I sleep, And miles to go before I sleep."

For Mahindra & Mahindra, this translates into many more milestones to be set up before it rests. If ever.

Core Values Our Core Values are influenced by our past, tempered by our present, and will shape our future. They are an amalgam of what we have been, what we are and what we want to be.

Good Corporate Citizenship As in the past, we will continue to seek long term success, which is in alignment with our country's needs. We will do this without compromising ethical business standards.

Professionalism We have always sought the best people for the job and given them the freedom and the opportunity to grow. We will continue to do so. We will support innovation and well reasoned risk taking, but will demand performance.

Customer First We exist and prosper only because of the customer. We will respond to the changing needs and expectations of our customers speedily, courteously and effectively.

Quality Focus Quality is the key to delivering value for money to our customers. We will make quality a driving value in our work, in our products and in our interactions with others. We will do it 'First Time Right'. Dignity of the Individual We will value individual dignity, uphold the right to express disagreement and respect the time and efforts of others. Through our actions, we will nurture fairness, trust and transparency. These values are the compass that will guide our actions, both personal and corporate. Automotive The Mahindra Group’s Automotive Sector is in the business of manufacturing and marketing utility vehicles and light commercial vehicles, including three-wheelers. It is the market leader in utility vehicles in India since inception, and currently accounts for about half of India’s market for utility vehicles.

Although created in 1994 following an organizational restructuring, the Automotive Sector can trace its antecedents back to 1954. The iconic Jeep that led American G.I.s to victory in World War II is the very same vehicle that drove the Mahindra Group to success in the Automotive Sector. Mahindra & Mahindra Limited, the flagship company of the Group, was set up as a franchise for assembling general purpose utility vehicles from Willys, USA. Over the years, the Group has developed a large product portfolio catering to a diverse customer base spanning rural and semi-urban customers, defense requirements and luxurious urban utility vehicles. In 2002, it launched the indigenously engineered world-class sports utility vehicle-Scorpio, which bridges the gap between style and adventure, luxury and ruggedness, and performance and economy.

The Group exports its products to several countries in Europe, Africa, South America, South Asia and the Middle East. The Automotive Sector continues to be a leader in the utility vehicle segment with a diverse portfolio that includes mass transport as well as new generation vehicles like Scorpio, Bolero and the recently launched Xylo.

Mahindra & Mahindra’s foray into the three wheeler segment with Alpha and Champion has also made it a leader in its category. The International Operations of the Automotive Sector focuses on the international business.

Mahindra Renault (MRPL) announced the launch of Logan, India’s first wide body car, sporting a host of class-defying features at an aggressive price. The Logan redefines its segment in terms of spaciousness as well as performance, technology with the latest generation dci common rail engine. It has been designed for the Indian market incorporating a contemporary styling and design.

Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra & Mahindra Limited and International Truck and Engine Corporation, will manufacture trucks and buses for India and export markets. It will also provide component sourcing and engineering services to International Truck and Engine Corporation.

Mahindra Navistar (MNEPL) a second joint venture agreement with Mahindra & Mahindra, Ltd. focuses on producing diesel engines for Medium and heavy Commercial vehicles in India. Beginning in 2009, MNEPL’s advanced diesel engines will power the full line of trucks and buses produced by MNAL.

Mahindra Finance Mahindra Finance – About MMFSL Mahindra and Mahindra Financial Services Limited is one of India’s leading non-banking finance companies. Through a vast network of branches, we provide personalized finance for the widest range of utility vehicles, tractors and cars, focusing on the rural and semi-urban sector. MMFSL’s rural financing is considered as the cornerstone of poverty reduction, rural development and inclusive growth in many parts of the country. With a majority of our county’s population living in rural India, our loans to over 900,000 customers belonging to the low income groups have proved to be a catalyst in helping rural India surge ahead in a big way. Our unique business model is socially inclusive as we help customers who are at the bottom of the income or social pyramids to grow by providing them loans based on their future earning capacities. It is also our continuous endeavor to develop skill sets at the local level. We currently provide employment to over 6200 people who belong to the areas in which we serve, ensuring that our employees truly understand their customers. Since 1945, we, at the Mahindra Group, have remained and will continue to remain partners in the progress of rural India, through both growth and turbulence. We salute the spirit of every Indian living off the land and move ahead, trying to understand the financial needs of rural India and tapping into this vast market of unbounded opportunities. Our goal is to be the preferred provider of retail financing services in the rural and semi-urban areas of India, while our strategy is o provide a range of financial products and services to our customers through our nationwide distribution network. Honda Company Profile History

HSCI was established in December 1995, with Honda Motor Co., (Japan) and Siel Ltd. (India) as the key promoters. Honda’s models are strongly associated with advanced design and technology, apart from its established qualities of durability, reliability and fuel-efficiency. Honda Siel Cars’ state-of-the-art manufacturing unit was set up in 1997 at Greater Noida, U.P. and currently has a capacity of 50,000 cars annually. The company is planning to raise its capacity to 100,000 cars per annum by the end of 2007. HSCI has recently launched the all-new, third generation CR-V and new Accord in its portfolio. The all-new Honda CR-V comes in 2 variants- 6 speed manual transmission system and 5-speed automatic transmission system with Grade Logic Control for smooth and effortless performance. Honda’s most successful global model, the eighth generation Civic was launched in July 2006 and has already become segment leader within a short span of time. The Honda City ZX, the largest selling sedan in India, is today recognized as one of the most successful car brands in India. To ensure consumer’s safety, Honda has recently added new features like Airbags and ABS in the VTEC version of the car. In 2006, three of Honda’s four cars in the Indian market – City, Accord and CR-V, have ranked first in the TNS Total Customers Satisfaction Award. The company operates under the stringent standards of ISO 9001 for quality management and ISO 14001 for environment management.

Honda in India

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited, a Siddharth Shriram Group company, with a commitment to providing Honda’s latest passenger car models and technologies, to the Indian customers. The Honda City, its first offering introduced in 1997, revolutionized the Indian passenger car market and has ever since been recognized as an engineering marvel in the Indian automobile industry. The success of City as well as all its other models has led HSCI to become the leading premium car manufacturer in India. The total investment made by the company in India till date is Rs. 1620 crores. The company has a capacity of manufacturing 100,000 cars.

Honda Philosophy The Honda Philosophy expressed in this illustration shows the Company Principle, Management Policies and the ‘Honda Way’ based upon the fundamental beliefs of ‘Respect for the Individual’ and ‘The Three Joys’.

Product Range Honda Siel Cars’ product range in India includes the Honda City ZX in the mid-size segment, Civic in the Lower D segment and Accord in the luxury segment and third generation all-new CR-V (both 2.0L 2 WD and 2.4L 4WD) in the SUV segment. While the City ZX, Civic and Accord are manufactured at the company’s plant, the CR-V is imported from Japan as a Completely Built Unit.

1. HONDA CITY ZX

City ZX is today recognized as one of the most successful car brands in the country. Its success is a replica of the success of its predecessor - the original Honda City, launched way back in 1997. In fact, HSCI took a historic step in 2003, when it introduced the New-City at a time when the original City was still performing brilliantly – and it was an immediate success. The City ZX was launched two years later in 2005 as an enhanced version of the New- City and is strongly associated with durability, reliability, quality and fuel- efficiency.

The City ZX range includes 4 variants - EXi, GXi, CVT (Automatic Transmission) and VTEC. While EXi, GXi and CVT variants come with the advanced combustion system of the 1.5 litre Intelligent Dual & Sequential Ignition (i-DSI) engine, City VTEC embodies a 1.5 litre VTEC (Variable Valve Timing and Lift Electronic Control) engine. The VTEC version was reintroduced in the new City inresponse to customer demand. The City VTEC comes with sporty exteriors and plush interiors, catering to the premium segment customers. On the outside, 14” alloy wheels adorn the car, front and rear fog lamps and rear disc brake. The interiors are more lavish with leather steering, centre console and beige and black upholstery. The City is manufactured with 79% indigenization level and currently enjoys 25% market share in its segment. 2. HONDA CIVIC

HSCI launched the 1.8S Civic in India in July 2006, which became a runaway success. The company has also launched the 1.8v version of the Civic in June2007. The Civic is Honda’s largest selling model globally and is now sold in approximately 160 nations and regions worldwide. The Civic made its debut, with a two-door model in July 1972, followed shortly by a three- door version. The series was a major hit, especially among young people and for three consecutive years, from 1972 to 1974, the Civic won the ‘Car of the Year Japan’ award. Civic’s development process contrasted completely with Honda tradition. Rather than pursue development based primarily on the vision of Company founder Soichiro Honda, the Civic’s development team traveled to various world markets, gained local knowledge and experience first-hand, and then set about creating a car that “is needed right now.” Overseas production of Civic began in Indonesia in 1975, and Civic vehicles are now made in 11 countries, including North America, Europe, Asia and South America. Total cumulative production of Civic models at the end of calendar 2004 was approximately 16 million units—making it one of the most popular models in Honda history. The Civic has an indigenization level of 72% and enjoys 45% market share in its segment. 3. HONDA ACCORD

Accord comes with fresh new exterior styling, enhanced interiors and several new value-added features. The Accord has a new-look; sporty rear with revamped LED Tail lamps and rear bumper garnish that further enhances its stunning exterior styling. Adding greater value to the 2.4 lt model, the new car now has premium wood & leather steering wheel and turn indicators on side-view mirrors, features which were earlier available only in the V6 model. For easy and convenient parking, the new Accord has front and rear Parking Assistance Sensors, which warn the driver of obstacles in his way while parking. The Accord V6 now has enhanced safety in the form of Vehicle Stability Assist (VSA) technology and also new 10-spoke 16” alloy wheels. Accord, which has been a popular premium sedan ever delight the customers with its class-leading performance and luxury features such as leather upholstery, dual-zone climate control and six-CD changer. The Accord is manufactured with 34% indigenization level and currently enjoys 27% market share in its segment.

4. HONDA CR-V The 3rd generation CR-V was introduced in November 2006. The all-new, third generation Honda CR-V offers its customers a distinctive combination of ‘the comfort of a sedan with the thrills of a SUV’. The engine is a 2.4-liter DOHC i-VTEC, which delivers a powerful torque of 162 ps @ 5,800 rpm. Real-time 4WD is a unique feature of the car, which is the first in its class. The Real-time 4WD intelligently detects adverse road conditions and switches to 4-wheel drive instantly. In normal conditions the all-new CR-V operates in front wheel drive mode but in wet, muddy roads or off-road conditions, it automatically switches to 4-wheel drive instantly. An enlarged clutch and stiffened transmission parts help distribute 20% additional torque to the rear wheels which ensures smooth drive in bad road conditions without compromising on safety or fuel consumption. HSCI recently introduced the 2.0L 2WD (2-Wheel Drive) Honda CR-V, which is more agile & has a sporty handling. The new lighter engine gives good fuel efficiency, without compromising on performance. The CR-V currently enjoys 37% market share in its segment.

4. HONDA JAZZ Honda Jazz is the company’s first offering in the premium compact car segment. The Jazz is a segment-defining car that has won accolades and adoration all over the world. Widely acclaimed for its dynamic styling, spacious interiors, versatile utility and remarkable performance, the Honda Jazz brings added fun and excitement to the driving experience. The Jazz’s dynamic performance is achieved by a newly developed four- cylinder 1.2-liter i-VTEC engine, featuring Programmed Fuel Injection that delivers maximum output of 90 PS (66 kW) @ 6,200 rpm and Torque of 110 Nm (11.2 kg-m) @ 4800 rpm while giving impressive fuel economy of 16.1 km/l, as per ARAI test data. Safety of passengers and pedestrians is a top priority for Honda and all safety equipment is standard across all variants. The Jazz practicality has been enhanced with three-mode “Magic Seat” configuration to achieve multiple seating and cargo-carrying configurations for long or tall objects in addition to the standard five-passenger mode. The Honda Jazz is available in two variants - Honda Jazz and Jazz Select edition in Manual Transmission. Additionally, both the variants are available in 2 attractive types - Mode & Active. Tata motors Tata Motors is India’s largest automobile company. Its revenue in 2008- 2009 was Rs 24,000 crore (U.S.$ 6.4 billion).It is the leader in commercial vehicles in each segment and the second largest in the passenger vehicles market ,with winning products in compact, mid-size car and utility vehicle segment. The company is the world’s fifth largest medium and heavy commercial vehicle manufacturer and the world’s second-largest medium and heavy bus manufacturer. The company’s 29,600 employees are guided by the vision to be “best in the manner in which we operate, best in the products we deliver and best in our value system and ethics” Established in 1945, Tata Motors’ presence extends across the length and breadth of India. Over 3.5 million Tata vehicles have driven on Indian roads since the first one rolled out on 1954.The company’s manufacturing base is spread across multiple plants, supported by a nationwide dealership, sales and services and spare parts network comprising of about 1,200 touch points. The company also has a strong auto finance operation, Tata Motors Finance for supporting customers in purchasing Tata Motors vehicles

Company profile The largest passenger automobile and commercial vehicle manufacturing company of India Tata Motors Limited, was formerly called TELCO (TATA Engineering and Locomotive Company), has its headquarters in Bombay, now Mumbai, India. Established in 1945, listed on the in 2004 has created Rs. 320 billion wealth and was one of the top 10 wealth creators in India, with manufacturing facilities in the towns of Jamshedpur, Lucknow, and Pune. This company was founded by Jamshetji Tata and is run by Ratan Tata under the flagship company known as Tata and sons group. He commands 22000 employees working in three plants as well as other regional and zonal offices across the length and breadth of India.

Tata motor’s passenger cars still need to reach acceptable international requirements. The company commands an imposing 65% share of the domestic commercial vehicle market and is trying to modernize this segment. The financial business of Tata motors was separated into a subsidiary company in sep. 2006, where it recorded a strong financial performance during the last 5 year period. From year 2005-2009, the profits of the company went up at a CAGR of 36.4%, to attain Rs. 331, 525 million in 2008from Rs. 95, 731 Million in 2003. By floating two rights issues at the end of Sep 2009 Tata Motors Ltd expected to raise Rs 4, 150 crores. They are offering one ordinary share valued at Rs. 340 every six shares expecting to net Rs. 2.90 Crores, the so called “A” share would have different voting and dividend rights, for every such 6 shares held at a face value of 305 would raise Rs. 1.960 Crores, these proceed would be utilized for an early repayment of the short term funding of 2.3 Billion $ (Rs. 10,189 Crores) Borrowed for Acquisition of jaguar and Land Rover from their principle “The Ford Motor Company’s”.

As TATA MOTORS is regarded as one of the best fuel efficient cars. Hence I conducted a study on the consumer perception about small cars. Firstly, I took three brands of small cars; Zen estilo, Indica and Santro for a comparative study of small car segment.

Later I went through the process of filling the questionnaires, to know exactly what the customer’s of small cars perceived about their cars. Tata motors were established on September 1, 1945, originally for the manufacture of Steam Locomotives at Jamshedpur.

All the cars taken for the sample showed that the consumers perceived them as almost same in all the attributes like safety, comfort and luxury. But, at the end the research was limited due to small sample size, small sample area and time constraints.

TELCO (TATA Engineering and Locomotive Company) • Multinational Corporation. • Headquarters in Mumbai. • India's largest passenger automobile and commercial vehicle manufacturing company. • World's 19th largest automaker. • Sales: 19,654.41cr. • Stock price: Rs. 347

In 1969 Tata motors had become an independent producer of Medium Commercial Vehicles. It had also developed the capability of designing, testing and manufacturing such vehicles.

Leading commercial vehicle manufacturer and has significant presence in the multi-utility and passenger car segments.

Products of TATA Motors INTRODUCTION OF MARUTI COMPANY

MARUTI UDYOG LIMITED Maruti is India's largest automobile company. The company, a joint venture with Suzuki of Japan, has been a success story like no other in the annals of the Indian automobile industry. Today, Maruti is India's largest automobile company. This feat was achieved by the missionary zeal of our employees across the line and the far-sighted vision of our management. The Company Mission: To provide a wide range of modern, high quality fuel efficient vehicles in order to meet the need of different customers, both in domestic and export markets. The Company Vision: We must be an internationally competitive company in terms of our products and services. We must retain our leadership in India and should also aspire to be among the global players. Their focus is on: • Building a continuously improving organisation adaptable to quick changes • Providing value and satisfaction to the customer • Aligning and fully involving all our employees, suppliers and dealers to face competition • Maximising Shareholder's value • Being a responsible corporate citizen

Production Milestones 1st vehicle produced, December 1983 1,00,000 vehicles produced by August, 1986 5,00,000 vehicles produced by June, 1990 10,00,000 vehicles produced by March, 1994 15,00,000 vehicles produced by April, 1996 20,00,000 vehicles produced by October, 1997 25,00,000 vehicles produced by March, 1999 30,00,000 vehicles produced by June, 2000 35,00,000 vehicles produced by December 2001 40,00,000 vehicles produced by April, 2003 45,00,000 vehicles produced by April, 2004 MUL is a Board-managed company. Currently the directors on the Board are: • Mr Shinzo Nakanishi, Chairman • Mr Jagdish Khattar, Managing Director • Mr Hirofumi Nagao, Joint Managing Director • Mr Shinichi Takeuchi, Joint Managing Director • Mr Kinji Saito, Director (Marketing and Sales) • Mr Osamu Suzuki, Director • Mr R C Bhargava, Director • Mr S V Bhave, Director • Mr Kumar Mangalam Birla, Director • Mr Amal Ganguli, Director ALTO - LET’S GOS

The alto is a great combination of economy, practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24 hour endurance record set on August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph. WAGON R-INSPIRIED ENGINEERING

The Wagon R’S original tall body design, spaciousness, ergonomically designed interior and flexible seating all set it apart from other cars. It complements the buyers unique personality enables him to live a multi-dimensional life by the sheer excellence of its engineering and its versatility. Features

MARKET SHARE

COMPETITION MODELS

Segment Maruti Competition A1 (Mini - M800 Hatchback) A2 (Compact - Zen, WagonR, Hyundai - Santro & Getz; Tata - Hatchback) Alto, Swift Indica & Palio; GM - Corsa Sail A3 (Mid Size) Esteem, Hyundai - Accent; Tata - Indigo & Baleno Petra; Honda - City; GM - Corsa, Optra, & Aveo; Ford - Ikon, Fusion, & Fiesta A4/A5/A6 Hyundai - Elantra & Sonata; (Exec./Prem./Luxury) Honda - Accord; GM - Vectra; Ford - Mondeo; Skoda - Octavia & Superb; Toyota - Corolla & Camry; Daimler Chrysler - C,E, & S Class; C (Van Type) Omni, Versa MUV (Utility Gypsy, Grand Mitsubishi - Pajero; Hyundai - Vehicles) Vitara Terracan & Tucson; Ford - Endeavor; Toyota - Prado & Innova; Nissan - X Trail; Honda - CRV; GM - Forrester & Tavera; Tata - Sumo & Safari; Mahindra - Jeeps, Scorpio, & Bolero

THE PLAYERS IN THE INDIAN AUTOMOBILE INDUSTRY Hyundai Motor India Ltd Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor Company, South Korea and is the second largest and the fastest growing car manufacturer in India. HMIL presently markets 31 variants of passenger cars in six segments. The Santro in the B segment, Getz in the B+ segment, the Accent in the C segment, the Elantra in the D segment, the Sonata Embera in the E segment and the Tucson and Terracan in the SUV segment. HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts some of the most advanced production, quality and testing capabilities in the country. In continuation of its investment in providing the Indian customer global technology, HMIL has announced plans for its second plant, which will produce 300,000 units per annum, raising HMIL’s total production capacity to 600,000 per annum by 2007. The plant will be built on a 2.1 million square meter site adjacent to the existing facility .HMIL is investing to expand capacity in line with its positioning as HMC’s global export hub for compact cars. Apart from expansion of production capacity, HMIL plans to expand its dealer network, which will be increased from 157 to 200 this year. And with the company’s greater focus on the quality of its after-sales service, HMIL’s service network will be expanded to over 1,000 in 2006. Tata Motors

Tata Motors is one of the largest companies in the Tata Group with a total income of US$ 2.35 billion. More than 3 million Tata vehicles ply on Indian roads making Tata a dominant force in the Indian automobile industry. Tata Motors is India's only fully integrated automobile manufacturer with a portfolio that covers trucks, buses, utility vehicles and passenger cars. It would be no exaggeration to say that Tata Motors provides the wheels for India's growth. Tata Motors has the unique distinction of giving India its first and only indigenously built passenger car - The Tata Indica and the premium feature sedan - The Tata Indigo. The Indica, launched in 1998, reached the 2,50,000 sales mark within 52 months of launch. Mode of Communication They reach to customers by giving advertisements in the T.V. or through radio, through wall painting, or through promotional activities like weakly haats, mela or local bazaars and most importantly, their policies were flexible and they could adapt to fast changing marketing situations. Through Internet, E-mail usage, communication media like telephone and mail facility this mode of communication is possible to a great extent. ITC’s extensive India-wide distribution network enables its greeting cards reach over 12,000 multi brand outlets in over 700 cities across the country. In the last three years, 10,000 greeting card designs have reached these outlets with the help of ITC's web-enabled e-commerce model – Communication Model ITC markets Opportunity These days’ consumers are looking for convenience and instant gratification. Communication media like the telephone and e-mail facilitate communication to a great extent. But many greeting card sites are moving from a 'free' to a 'pay' mode. This could be an emerging revenue earning opportunity for content providers.

DATA ANALYSIS & INTERPRETATION Total Number of Respondents: 15 Officials Number of Respondents Maruti Udyog Limited 5 Hyundai Motors India Ltd 2 General Motors 2 Tata Motors 5 Ford India Limited 1 Do you face problems in maintaining good and effective relationships with customers? Quite Frequently Average Rarely Frequently Maruti Udyog Limited 2 3 - - Hyundai Motors India Ltd - 2 - - General Motors - 2 - - Tata Motors 3 2 - - Ford India Limited - 1 - -

Rarely Average 0% 0% Quite Frequently 33%

Frequently 67%

Findings: According to the responses of the respondents it can be concluded that all the respondents face problems in maintaining good and effective relationships with customers. With changing customer needs its quite obvious that maintaining good relations with customers need an effort on part of the Dealers and Manufacturers. Can your company differentiate its customers based on their value to you and their needs from you? Yes No Maruti Udyog Limited 5 - Hyundai Motors India 2 - Ltd General Motors 2 - Tata Motors 5 - Ford India Limited 1 -

No 0%

Yes 100%

Findings: According to the respondents (officials) at all the Five Automobile Majors their company was able to differentiate its customers based on their value to them and their needs from the company. This is important for the automobile industry because the dynamics of selling cars is changing and manufacturers and dealers who fail to meet the rising needs and expectations of their customers will lose out to those who can. Buying a new car is an experience customer will remember for a long time and ensuring that this experience is a satisfactory one is essential in building brand loyalty and customer advocacy.

How well does your company customize its products and services based on what it knows about its customers?

Highly Customer Somewhat Not Customer centric Customer centric centric Maruti Udyog Limited 5 - - Hyundai Motors India 2 - - Ltd General Motors 2 - - Tata Motors 5 - - Ford India Limited 1 - -

Somewhat Not Customer Customer centric centric 0% 0%

Highly Customer centric 100% Findings: All the officials of the Automobile Majors agree that all products and services are highly customer centric and based on the information they know about the customers.

RESEARCH METHODOLOGY

These types of research design used project are exploratory. Exploratory research is that in which new relationship are discovered.

Design of Conclusive Research Study of Secondary sources of information:- Different book of marketing and research served as sources of information. The information from Internet was very useful as well.

Survey of individual with ideas on general subject:-

Information was also collected from owner and distributor of Maruti, which is base of this whole project.

Data Collection Method:-

The method used to collect data is from primary sources. This method is appropriate as compared to secondary data available looking at the objectives of the report. The method used to collect data is a survey in which questionnaire is prepared and is given to the respondent to fill it.

Sampling method:-

The universe of this research report consists of dealers and customers those served as source of information.

Research designs:- • Research Type : Exploratory • Data Collection Method : Primary & Secondary • Venue : Sagar • Research Approach : Survey Method • Research Instrument : Questionnaire • Sample Size : Customers & Dealers • Sampling Unit : Respondents of

Sagar

CUSTOMERS QUESTIONNAIRE

1. Do you use any Four Vehicles? (Y/N)

2. Which Four Vehicles do you use?

(a) Maruti (b) Honda (c) Tata Motors

(d) M & M (d) Others

3. Which media most influence you to prefer a Vehicle?

(a) Advertising (b) Television (c) Newspaper

(d) Magazine (e) other 4. How do you feel about the price of the Vehicle?

(a) High (b) Reasonable (c) Low

5. Do you satisfy with the price of the Vehicle? (Y/N)

6. Which factor considers when you buy the Vehicle?

(a) Quality (b) Services (c) Brand Image

(d) Price

7. Do you satisfy with the Vehicle? (Y/N)

8. Financial Services provide by those companies? (Y/N)

9. Insurance Services provide by those companies? (Y/N)

10. Any suggestion......

Date Signature

Thanks for your Co-operation & Valuable Time

CONCLUSION

The price of a car is just one-third of what it cost you over its lifetime. Running and maintaining it make up the other two-thirds. Take into account resale value and its real cost becomes clear. Maruti Suzuki stands for value as much as it stands for performance. In spite of rising input costs, we try our best to keep prices down. Their running costs and resale values are unbeatable too. Nothing matches the delight their cars deliver. In the JD Power CSI study 2005, 85% of Maruti Suzuki owners stated that they would definitely recommend the car they drive to someone else. Infact, you don’t buy a Maruti Suzuki. You invest in it.

After the rash of new cars launches the past two years, the relative lull in the auto industry is showing up in the customer satisfaction indices. According to the 2005 four-wheeler Total Customer Satisfaction (TCS) study conducted by the specialist division of TNS Automotive, the automobile ownership experience or customer ownership experience has declined in all areas compared to 2004. CERTIFICATE

DATE: ______

The project report titled “PRODUCT PROFILE SURVEY REPORT ON TOP FIVE COMPANIES OF FOUR WHEEL” Prepared by NITIN SINGH PARMAR, under the guidance and supervision of Mrs. Parul Guru & Mr. Ajay Dwivedi (Lecturer OF M.B.A. Deptt. S.S.H.C. JAIN I.M.R.) for the partial fulfillment of the degree of Master of Business Administration is satisfactory in respect of :-

Comments By Supervisor Head of Deptt. Examiner

1. Contents and presentation of the subject matter 2. Language 3. Embodies the original work of the candidate. 4. Submission within due date

Signature of Examiner Signature of Supervisor

Signature of H.O.D. DECLARATION BY CANDIDATE

DATE: ______

I declare that the project report on “PRODUCT PROFILE

SURVEY REPORT ON TOP FIVE COMPANIES OF FOUR

WHEEL” is my own work, conduct under the supervision of Mrs.

Parul Guru & Mr. Ajay Dwivedi (Lecturer OF M.B.A. Deptt.

Of S.S.H.C. JAIN I.M.R.) Affiliated to Dr. Hari Singh Gour

University, Sagar .To the best of my knowledge the report does not contain any work which has been submitted for the award of any degree, anywhere.

Signature of the Candidate Nitin Singh Parmar MBA 2ND Semester ACKNOWLEDGEMENTS

I wish to express my deep sense of gratitude to all those who generously helped in successful completion of this research work by sharing their valuable time and knowledge. A great deal of motivation, direction and hard work was require to complete the report, but the precious guidance provided by my teachers made this job enjoyable and a nice learning experience.

It is my proud privilege to express my deep sense regards to the PROF. PRAKASH SHUKLA (H.O.D. Of S.S.H.C. JAIN IM.R., SAGAR) affiliated Dr. Hari Singh Gour University, Sagar for giving me opportunity to prepare a project report on the “PRODUCT PROFILE SURVEY REPORT ON TOP FIVE COMPANIES OF FOUR WHEEL" which I have done. I express my deep sense of gratitude to Mrs. Parul Guru & Mr. Ajay Dwivedi (Lecturer OF M.B.A. Deptt. Of S.S.H.C. JAIN I.M.R, Sagar) for her constant encouragement, guidance and her valuable suggestion to under take this study.

I am also grateful to my faculty members Miss. Priyanka Jain, Mr. Sanjay Khare & Mr. Sumit Singh Rathore & customers, friends and family members for their outstanding support and guidance. Nitin Singh Parmar M. B. A. 2nd Sem. PREFACE

The project report has an objective to get the MBA student familiar with real life business situation and gives an opportunity to the student of understand the theoretical concepts of marketing and finance in practical way.

In today’s world “Consumer is the King” consumer test and preference go alone way in the actual sales of the product. Every research work has to deal with various people in concern organization and each of them have their own opinion and thinking about various topics.

The main aim of the survey report was to determine the “PRODUCT PROFILE SURVEY REPORT ON TOP FIVE COMPANIES OF FOUR WHEEL" .

I tried my best to express the report through satisfactional representation, graphs, pie diagrams etc. and it helped me to enhance my knowledge I am extremely happy to place before our esteemed teachers. The report of the survey carried in the city of Sagar on various Four Vehicles Company are available . LIMITATIONS

1. The report had to be completed in a selected area with in a specified time limit.

2. The facts & Figures perceived in this project report are based on the data collected from the respondents. Hence their might be chance of having a little difference from actual.

3. Sample size was very small as compared to the population of Sagar city.

4. People did not give full response & there is a bias in some personnel questions.

5. Data from the secondary source may have some errors & their objectives may not be relevant with the present project. COMPANY PROFILE:

CEO: Mr. Chung Mong-Koo

Board of Directors:  Mong Koo Chung  Dong Jin Kim  Jeong- In Park  Yeo – Chul Youn  Rudiger Grube  Karry Cho  Kwang-Nyun Kim  Byung Park II  Dong Ki Kim  Masao Miyamoto  Dong Kim  Jeon Soo

HEAD OFFICE: Yangiae-dong, Seoul, Korea

REGIONAL OFFICES: East: Kolkatta, West Bengal

West: Mumbai South: Chennai, North: New delhi

Chung Se-yung formed Hyundai Motor in 1967 and built it up to the company that it is today. He got his Master's Degree in political science in the United States and started his career at Hyundai Engineering and Construction Company in 1957. He was chairman of the Hyundai Group from 1996 until 1999. He died on 21st may of pneumonia. He was the brother of the founder of Hyundai Group, Chung Ju-yung.

Hyundai Motor Co., formed in 1967, was a part of the large South Korean Chaebol - the Hyundai Group - until the group split in September 2000. In the last four decades, Hyundai managed to establish itself all over the world as a company producing reliable, technically sound and stylish automobiles. This company is Korea’s leading automobile manufacturer employing over 68,000 people worldwide. Hyundai ranks as the sixth largest automotive manufacturer in the world. Hyundai's 6th manufacturing unit outside the parent country is also the group's largest overseas production base.

They are probably in the most elite group of car manufacturers in India to have such technological knowledge. Their main aim is to make India a global hub for export of cars. They believe that India has the potential to achieve such a feat and in order to take India a step further they are investing heavily here. They are also planning to increase their dealership network and their after sales service.

The year 2006 has been a significant year for Hyundai Motor India. It achieved a significant milestone by rolling out the fastest 300,000th export car. Hyundai exports to over 65 countries globally; even as it plans to continue its thrust in existing export markets, it is gearing up to step up its foray into new markets. Hyundai i10, which has bagged the most prestigious awards including Motoring ‘Car of the Year’ Award, the CNBC-TV18 ‘Car of the Year 2008’ Award, the NDTV Car and Bike Awards for ’Compact Car of the Year 2008’ as well as ‘Car of the Year 2008’ and the ‘Car of the year 2008’ at the 9th Overdrive Awards. Hyundai’s i10 has captured the entire gamut of the most prestigious of Indian automobile awards. The different models of cars that Hyundai Motors India Limited (HMIL) has launched in the Indian market are: • Hyundai Santro Zing • Hyundai Accent • Hyundai Getz • Hyundai Elantra • Hyundai Sonata Embera • Hyundai Tucson • Hyundai Terrecan • Hyundai i10

Cars Hyundai Santro Hyundai Accent Hyundai Verna • Santro XK • Accent GLE • Verna i (Petrol) • Santro XK (Non AC) • Accent GLS • Verna Xi (Petrol) • Santro XL • Accent Viva • Verna XXi (Petrol) • Santro XO • Accent Viva CRDi • Santro AT • Verna CRDi VGT • Accent CRDi • Santro CNG

Hyundai Elantra Hyundai Sonata Hyundai Getz • Elantra GT • Embera 2.4 M/T • Getz GLS • Elantra CRDi • Embera 2.4 A/T • Getz GLX

• Elantra GLS • Embera H-Matic Hyundai Getz Prime • Getz Prime 1.1 GLE • Getz Prime 1.1 GVS • Getz Prime 1.3 GLS • Getz Prime 1.3 GLX tz GVS • Hyundai i10 Hyundai Terracan Hyundai Tucson • Hyundai verna Hyundai’s Market Share-

Forecast and Comparison:

COMPANY PROMOTIONAL STRATEGIES

SANIYA MIRZA

1. Promotional Strategies:

Hyundai Motor India offers women friendly incentives:With the purchase of a new Hyundai, female car buyers in India are being offered “women-friendly features” like reduced interest rates, lower processing fees, discounts on gold purchases, and a free credit card.

Hyundai, the No. 2 automaker in India, launched the “Special Women Scheme” in order to “encourage car ownership among the fairer sex.”

Hyundai partnered with 14 banks and auto finance companies in order to present the offer. ICICI BANK for example, has an auto loan product only being offered to women that includes discounts on gold purchases.

For the brand launch, Hyundai roped in Saatchi & Saatchi as the ad agency. Thus came the first commercial. The ad introduced Kim and Shah Rukh and a glimpse of the car. Kim was the Hyundai official who wanted SRK to be the brand ambassador for Santro. The name Kim was chosen wisely because the only familiar Korean name known to Indians was KIM .The ad introduced the brand and the company with a subtle statement from Kim: We settle only for the best.

The first ad was followed by teaser ads where Kim tries to convince SRK that Hyundai is serious about India, the quality issue and the brand Santro.

These ads really created hype in the market about Santro. Teaser ads are dangerous and expensive. Dangerous because if the teaser failed to click, the entire product launch will land up in trouble. Another issue is that the brand should follow up the hype built by teaser ads. In the case of Santro, the teasers were intelligently made and clicked.

Finally came the launch ad which showed Shah Rukh who represented the Indian consumer saying “I am Convinced" to Kim. Shah Rukh fitted perfectly to the promotional scheme of Santro

SRK IS A BRAND AMBASSADER OF HYUNDAI MOTORS INDIA

. Pricing Strategy :

This “value strategy” obviously finds clearest expression in pricing decisions. Hyundai Motors launched its cars in the United States in 1986 priced 20% below Japanese competitors, though the price differential today is only 10% .

This “value strategy” obviously finds clearest expression in pricing decisions. Hyundai Motors launched its cars in the United States in 1986 priced 20% below Japanese competitors, though the price differential today is only 10% .Such pricing strategy is crucial to communicate “greater value” positioning, and the target consumer segments are correspondingly those of lower segments. BIBLIOGRAPHY

 Sharma D.D. : Marketing research Principles, Application and cases , Sultranchand and Sons New Delhi.

 Kothari, C.R. : Research Methodology, Methods and Technology, Wishwa Prakashan, New Delhi.

 Kolter, Philips d (2000), Marketing Management, Prentice – Hall of India Pvt. Ltd. New Delhi.

Websites: • www.google.com • www.wikipedia.com • www.scribd.com OBJECTIVES OF THE STUDY

 To study Product profile survey among the

Customers of Four Wheeler in Sagar City.

 To find out the Market Scenario of Four Wheel

Companies.

 To know market position of Top Four Wheel Companies.

 To know the satisfaction of consumer.

 To suggest long term strategies to enhance sales.

 To know about the various competitors in the market.