Final D'Souza

8/13/2019 Final D'Souza

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CHAPTER 1

INTRODUCTION

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1.1 OVER VIEW OF AUTOMOBILE INDUSTRY IN INDIA

From the singsong rhythm of the bullock cart to the jet-age, India has traveled a long

way. An average Indians dream car may not be the design-savvy onda or the stately

limousine, but he sure can dream, and afford, the !aruti now.

It was in 1"#" that the first motorcar rode down Indias roads. From then till the First

$orld $ar, about %,&&& cars were directly im'orted to India from foreign manufacturers.

(he growing demand for these cars established the inherent re)uirements of the Indian

market that these merchants were )uick to 'ounce u'on.

(he industan !otors *!+ was set u' in 1#% and in 1#%%, remier Autobackmobile

*A+ was established to manufacture automobiles in India. owever, it was A who

'roduced the first car in India in 1#%/, as ! concentrated on auto com'onents and

could 'roduce their first car only in 1#%#.

It was left to another com'any, !ahindra and !ahindra *!0!+ to manufacture sturdier

utility vehicles, namely the American ee'.

In the 2&s, the 3overnment of India granted a''roval to only 4 car dealers to o'erate in

India - !, AI, A, 5!I, A, !0! and (elco.

(he 'rotectionist 'olicies continued to remain in 'lace. (he /&s witnessed the

establishment of the two-three wheeler industry in India and in the 4&s, things remained

much the same.

5ince the "&s, the Indian car Industry has seen a major resurgence with the o'ening u' of

Indian shores to foreign manufacturers and collaborators.

(he #&s have become the melting 'oint for the car industry in India. (he consumer is

king. e is being constantly wooed by both the Indian and foreign manufacturers.


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(hough sales had taken a di' in the first few months of 1###, it is back to boom time.

6ew models like !arutis 7lassic, Alto, 5tation $agon, Fords Ikon, the new look

!itsubishi ancer are all being launched with an eye on the emerging market.

In these last years of the millennium, suffice it is to say that Indian cars will only grow

from strength to strength.

Although India has been much discussed in recent years, and has been the reci'ient of

major foreign investment in its automotive industry, it has in many ways not received the

attention of the worlds other major develo'ing country, 7hina 8 but this is about to

change.

$ith the worlds second largest and fastest-growing 'o'ulation, there is no denying

Indias 'otential in both economic and 'o'ulation terms and the effect it will have on the

auto industry in the years to come. (he country is already off to a good start, with a well-

develo'ed com'onents industry and a 'roduction level of one million four-wheeled

vehicles a year, 'lus a further five million two- and three-wheelers. India also has

substantial strength in mass 'roduction techni)ues and is 'articularly well served in the

fields of research and develo'ment and software design. (herefore, as always, the

)uestion is when will e9'ansion occur and to what level:

(he im'lications, market drivers and sco'e of a future massive Indian vehicle market are

covered in the India 5trategic !arket rofile, a brand-new forecast of Indian automotive

and related activity to &&. ;ased on !a9 emberton 'er annum and India


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(he automotive industry is at the center of Indias new global dynamic. (he domestic

market is e9'anding ra'idly as incomes rise and consumer credit becomes more widely

available. !anufacturers 'roduct lines are being continually e9'anded, as is the local

automotive manufacturing base. @9'ectations are high that India can develo' as a global

hub for small car manufacture and as an outsourcing centre that offers the global

automotive industry solutions high u' the automotive value chain.

(his management briefing reviews the current status of and future 'ros'ects for India


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role of auto finance is also scrutinied by 'roving a series of surveys conducted across

the country covering all categories of 'rivate and commercial vehicles< finance. (he

re'ort also e9amines the region-wise demand and growth trends for the selected vehicles,

and how they influenced India


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(he biggest factor that is driving auto sales is India of the

incremental demand of ." million vehicles to come from Asia by &&, with 7hina and

India to''ing the charts.

(he high growth in the Indian economyhas resulted in many foreign car manufacturers

entering the Indian market. Eolls Eoyce, ;entley and!aybach are e9am'les of the few

high end automobile manufacturers to enter India in the recent years.

(here were only a few handful of cars in the Indian market in the 1#"&s. !ost of these

were outdated models like industan !otors of the cars sold in India are financed as against

the global average of 4&>. In neighbouring 7hina,only 12-&> vehicles are financed.

(here are only three cars in India for 1&&& 'eo'le as com'ared to the other e9treme 2&&

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http://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Rolls-Royce_carhttp://en.wikipedia.org/wiki/Bentleyhttp://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Fuel_efficiencyhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Rupeeshttp://en.wikipedia.org/wiki/Bugatti_Veyronhttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Scorpiohttp://en.wikipedia.org/wiki/Bolerohttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/REVAhttp://en.wikipedia.org/wiki/Economy_of_Indiahttp://en.wikipedia.org/wiki/Rolls-Royce_carhttp://en.wikipedia.org/wiki/Bentleyhttp://en.wikipedia.org/wiki/Maybachhttp://en.wikipedia.org/wiki/Hindustan_Motorshttp://en.wikipedia.org/wiki/Hindustan_Ambassadorhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Fuel_efficiencyhttp://en.wikipedia.org/wiki/Maruti_800http://en.wikipedia.org/wiki/Rupeeshttp://en.wikipedia.org/wiki/Bugatti_Veyronhttp://en.wikipedia.org/wiki/Tata_Indicahttp://en.wikipedia.org/wiki/Tata_Motorshttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/Mahindra_%26_Mahindra_Limitedhttp://en.wikipedia.org/wiki/SUVhttp://en.wikipedia.org/wiki/Scorpiohttp://en.wikipedia.org/wiki/Bolerohttp://en.wikipedia.org/wiki/Europehttp://en.wikipedia.org/wiki/REVA


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cars for 1&&& 'eo'le in the Bnited 5tates.3oldman 5achs has 'redicted that India will

have the ma9imum number of cars on the 'lanet by &2&overtaking the Bnited 5tates.

ohn aul !acuffie, a 'rofessor of management at $harton and an automobile industry

e9'ert, is not sur'rised at the e9'losion in the Indian auto market. e has seen this

'henomenon occur in other countries, too. C(here was a sign that India is moving in this

direction from the o'ening u' of the economy, the welcoming of foreign investment and

other things that were hel'ing economic growth,C he says. C(here seem to be some

relatively 'redictable 'oints in the rise of 'er ca'ita income when different stages of what

'eo'le describe as


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could more than double to 1%&,&&& cars in a year. Industry watchers e9'ect it to 'roduce

its economy car, 7hevrolet 5'ark, at the facility.

India of the Indian 'assenger

car market.

(he Automotive Industry in India is one of the largest industries and a key sector of the

economy.

(he Indian automotive industry started from 1##1with the governments de-licensing of

the sector and subse)uent o'ening u' for 1&& 'er cent FI through automatic route.

5ince then many large global com'anies have set u' their facilities in India taking the

'roduction of vehicle from million in 1##1 to #.4 million in &&/.

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At present, In!" !s t#e $%r&'s

argest tractor and three-wheel vehicle 'roducer.

5econd largest two-wheel vehicle 'roducer.

Fourth largest commercial vehicle 'roducer.

@leventh largest 'assenger car 'roducer.

Pr%()t!%n*According to the 5ociety of Indian Automobile !anufacturers, the Indian

automobile industry has reached double-digit growth for the 'ast three years in a row. In

&&/, the industry 'roduced 1&.# million vehicles, an increase of 1/.> over &&2. In

&&2, 'roduction grew 1%.2> over the 'revious year. (he 'roduction of the automotive

industry is e9'ected to achieve a growth rate of over & 'er cent in &&/-&4 and about 12

'er cent in &&4-&".

E+p%rtsM the cumulative annual growth rate of automotive e9'orts during the 'eriod

&&&-&1 to &&2-&/ was ?.# 'er cent. @9'orts during &&/-&&/ and &&4-&&" aree9'ected to grow over & 'er cent.

Im'ortsM @uro'e is the biggest im'orter of cars from India, while African nations largely

account for the im'ort of buses and trucks. 7hina is most recently making inroads into

this market. (he 5outh-@ast Asian region is the 'rime destination for Indian two

wheeler.

S"&es*

assenger =ehiclesM 3rowth in sales of 'assenger vehicles was 1".%2> in &&/.

(his was almost three times the growth witnessed in &&2. 5ale of 'assenger cars

e9'anded by &.&>. @9'ort of 'assenger vehicles increased by 1.#>

Btility =ehiclesM 1.%>

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Inest-entM Among the car com'anies that are investing in India are B5 automakers

3eneral !otors and Ford, 3ermany chea'er for B5 auto makers and about 2&>

chea'er for their @uro'ean counter'arts.

In!"n A(t% M"ret /r%$t# 0%r t#e e"r 2334536

(he domestic automobile industrysales grew 1." 'er cent at "#,1&,% units as

against 4",#4,/# units in &&%-&2.

(he automotive industry crossed a landmark with total vehicle 'roduction of 1&

million units.

According to the 5ociety of Indian Automobile !anufacturers *5IA!+, car sales

was ",",% units against ",&,14# units in &&%-&2.

(he growth of domestic 'assenger car market was 4.2 'er cent

7ar e9'orts stood at 1,4&,1#? units against 1,/&,/4& units in &&%-&2.

(he two-wheeler segment, the market grew by 1?./ 'er cent with 4&,2/,?14 units

against /,,4/2 units in &&%-&2.

!otorcycles had the u'ward march, 14.1 'er cent in domestic market touching

2",12,%14 units against %#,/%,42? units in &&%-&2.

5cooter segment grew by 1.2 'er cent, fall at #,&",12# units against #,,%" units

in &&%-&2.

7ommercial vehicles segment grew at 1&.1 'er cent with ?,2&,/"? units against

?,1",%?& units in &&%-&2.

1&
http://www.surfindia.com/automobile/automobile-industry.htmlhttp://www.surfindia.com/automobile/automobile-industry.html


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!edium and heavy commercial vehicles managed a growth of %.2 'er cent against

? 'er cent growth in the year ended !arch ?1, &&2.

ight commercial vehicles sales growth was 1#.% 'er cent at 1,%?,?4 units

against 1,1#,#% units in &&%-&2.

(hree-wheelers sales rose by 14 'er cent at ?,/&,1"4 units against ?,&4,"/ units

in &&%-&2.

(he economy of India is emerging. (he following table show the ranking of India in the

'ast four years.

R"n 2334 2337 2338 2332

1 7hina 7hina 7hina 7hina

2 In!" (hailand (hailand (hailand

8 (hailand In!" B5A B5A

% =ietnam =ietnam =ietnam Indonesia

4 B5A B5A In!" =ietnam

6 Eussia Eussia Indonesia In!"

4 Jorea Indonesia Jorea Jorea

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Eents "n -!&est%nes

A behind- the- scenes look into the making of one of India


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19:3 5 1993 5(he first 'hase of liberaliation was announced by the 3ovt. -$ith the

liberaliation of the 3overnment


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standards to be met by car manufacturers in India in the coming millennium. (here were

two successively stringent emission levels to be met by A'ril &&& and A'ril &&2,

res'ectively. (hese norms were benchmarked on the basis of those already ado'ted in

@uro'e, hence the names @uro I *e)uivalent to India &&&+ and the Indian e)uivalent of

@uro II.

1999 5(he onble 5u'reme 7ourt 'assed an order directing all car manufacturers to

com'ly with @uro I emission norms *India &&& norms+ by the 1st of !ay, 1### in

6ational 7a'ital Eegion*67E+ of elhi. (he deadline was later e9tended to 1st une,

1###.

1%


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1.2 Intr%()t!%n t% t#e t%p!)* Br"n E


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1.8 BRAND E>UITY

(he term ;rand @)uity refers to the inherent in a well-known brand name from customer

'ers'ective. ;rand @)uity is the added value bestowed on the 'roduct by the brand name.

It can be conce'tualied from the three different 'ers'ectives-

At the firm level, it is the incremental cash flow arising from the use of the brand name.

At the trade level, it is the leverage from the use of the brand name.

At the consumer level, it occurs when the consumer is familiar with the brand and holds

some favorable, strong and uni)ue associations in memory.

7onsumer based ;rand @)uity arises from consumer being more likely to be aware of

some brands in addition to 'ossibly 'referring some brands over others. ;rand e)uity can

also to be defined as a set of assets *0liabilities+ linked to a brands name symbol that

adds to *or subtracts from+ the value 'rovided by a 'roductNservice to a firm andNor to that

of firms customers.

!ajor assets categories areM

;rand Awareness

;rand loyalty

;rand Association

erceived Ouality

I-p%rt"n)e %0 Br"n e


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It is clear from the above figure that ;rand e)uity is ca'tured in the name 0 symbol of

the brand.

igh ;rand @)uity 'rovides a number of com'etitive advantagesM

(he com'any will enjoy reduced marketing costs because of high level of

consumer brand awareness.

(he com'any will have more trade leverage bargaining with dealers.

(he com'any can charge a higher 'rice than its com'etitors because the brand

has a higher 'erceived )uality.

(he com'any can more easily launch brand e9tension since the brand name

carries high credibility.

QA ;rand name i.e. well know and well liked by consumers has greater e)uity and is

worth more.R

QA 'roduct is something that is made in a factoryL a brand is something that is brought by

customer. A com'etitor can co'y a 'roductL a brand is uni)ue. A 'roduct can )uickly

outdatedL a successful brand is timeless.R

5 Step#en ?!n@

BRAND LOYALTY*

1"

rovides value tocustomer by enhancing

customersMInter'retationN

rocessing ofinformation

7onfidence in(he decision

Bse satisfaction

rovides value to firm byenhancingM

@fficiency 0 effectiveness ofmarketing 'rogrammes;rand loyaltyricesNmargin;rand e9tension(rade leverage7om'etitive advantage


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Qou have to have a brand become a friendR

5 Fre P%sner

For any business it is e9'ensive to gain new customers 0 relatively ine9'ensive to kee'

e9isting customers es'ecially with or even like the brand. In Fact, in many markets there

is substantial inertia among customers even if there are very low switching costs and low

customer commitment to the e9isting brand. (hus, an installed customer base has the

customer ac)uisition investment largely in its 'ast. Further at least some e9isting

customers 'rovide brand e9'osure and reassurance to new customers.

Me"s(r!n@ Br"n L%"&t*

In order to have a clear understanding of brand and its management, it is useful to

consider different a''roaches to its measurement. A''roaches to measure brand loyalty

are-

;ehavior measures.

5witching costs.

!easuring satisfaction.

inking of the brand.

7ommitment.

T#e str"te@!) "&(e %0 =r"n &%"&t*

(he brand loyalty of e9isting customers re'resents a strategic asset that if 'ro'erly

managed and e9'loited, has the 'otential to 'rovide value in several ways.

Eeduced marketing cost

(rade leverage

1#


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(ime to res'ond to com'etitive threats

Attract new customers

;rand awareness created

Eeassurance to new customers

BRAND AWARENESS*

QA good name is better than richesR.

- Cer"ntes

;rand awareness the ability of a 'otential buyer to recognie or recall that a brand

is a member of certain 'roduct category. A link between 'roduct class and brand is

involved. ;rand awareness involves a continuum ranging from an uncertain feeling that

the brand is recognied, to a belief that is the only one is the 'roduct class. (hree very

different levels of brand awareness can 'resent the continuum. (he role of brand

awareness in brand e)uity will de'end u'on both the conte9t and u'on which level of

awareness is achieved.

T#e "$"reness pr"-!

PERCEIVED >UALITY*

QOuality is the 'atent 'rotection we have got.R

- "-es R%=!ns%n

7@H, American e9'ress

&

(o' of mind

;rand recall

;rand recognition

Bnaware of the brand


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erceived )uality can be defined as the customers 'erce'tion of overall )uality or

su'eriority of a 'roduct or service with res'ect to its intended 'ur'oses, relative to

alternatives. erceived )uality is first 'erce'tion by customers. It thus differs from

several related conce'ts. 5uch asM

Actual or objective )uality- the e9tend to which the 'roducts or services delivers

su'erior service.

roduct based )uality- the nature 0 )uantity of ingredients, features or service

included.

!anufacturing )uality, conformance to s'ecification the Q Sero efectR goal.

BRAND ASSOCIATIONS*

QA man is known by the com'any he kee's.R

- An%n-%(s

(he underlying value of brand name is often based u'on s'ecified associations

linked to it. It is anything Plinked in memory to a brand. (he associations not only e9it

but also have a level of strength. A link to brand will be stronger when it is based on

many e9'erience or e9'osures to communications, rather than few. It will also be

stronger when a network of other links su''orts it.

A brand image is a set of associations, usually organied in some meaningful

way. ositioning is closely related to the associations 0 image conce'ts e9ce't that it

im'lies a frame of reference, the reference 'oint usually being com'etition. A Qbrand

'ositioningR does reflect how 'eo'le 'erceive a brandL however, Q'ositioning strategyRcan also be used to reflect how a firm is trying to be 'erceived.

T#e str"te@!) "&(e %0 =r"n "ss%)!"t!%ns*

(he underlying value of a brand name is its set of associations, its meaning to

'eo'le. Associations re'resent bases for 'urchase decision and for brand loyalty.

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;rand Associations

OTHER PROPERIETARY BRAND ASSETS

;rand assets are 'atents, trademarks 0 channel relationshi'. ;rand assets will

most valuables if they inhibit or 'revent com'etitors from eroding a customer base 0

loyalty. (hese assets can take several forms of e9am'le a trademark will 'rotect brand

e)uity from com'etitors who might want to confuse customers buy using a similar name

symbol or 'ackage. A 'atent, if strong 0 relevant to customer choice, can 'revent direct

com'etition. A distribution channel can be controlled by a brand because of a history of

brand 'erformance.

(o be very relevant, assets must be tied to the brand. If distribution is a basis for brand

e)uity, it needs to be based on a brand rather than on a firm.

Help process/ retrieveinformation

Differentiate/position

Reasons to buy

Create positive attitudes/feelings

Basis for extensions


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CHAPTER 5 2

RESEACH DESI/N

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2.1 Intr%()t!%n

Eesearch sim'ly means a search for facts- measures to )uestions and solution to 'roblem.

It is 'ur'osive investigation. It seeks to find e9'lanation to une9'lained 'henomenon, to

clarify the doubt full facts and to correct the misconceived facts. (he encyclo'edia of

social science defines research as the mani'ulation of generaliing to e9'and, correct or

verifies knowledge.

Eesearch design is the detailed blue 'rint used to guide a research towards its

objective. (his is a 'art of marketing research. !arketing research is systematic design,

collection, analysis and re'orting data and finding relevant to a s'ecific marketing

situations faced by the com'any. !arketing research is likely to 'rovide a fuller a''raisal

of the brands strength, character and uni)ueness that the brand owner many 'osses

through hisNher own e9'erience and collection.

(he 'rimary focus of study was to measure and assess consumer 'erce'tion of different

'remium brands and 'reference over other 'remium brands along with s'ecific

dimensions of brand e)uity, brand loyalty and awareness, 'erceived )uality and its

association the research design em'loyed for this 'ur'ose of the study was directive in

nature and a sim'le survey was conducted for the 'ur'ose of generation.

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2.2 STATEMENT OF THE PROBLEM

In India there are a no. of foreign 'layers in the Indian car industry, these 'layers haveinfluence the industry to a large e9tent, and have driven the Indian consumers in

becoming brand consciousness.

5ince brand 'lays a im'ortant role in the decision making 'rocess of a consumer, t#e

pr%e)t #e&ps !n !ent!0!n@ $#et#er 0%re!@n =r"ns %r In!"n =r"ns #"e -%re

=r"n e


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(he sam'le sie of 2& in the first 'hase and 1&& in the second 'hase is taken to analye

the above stated objectives.

2.6 SAMPLE TYPE*

(he sam'le consists of all the 'o'ulation those who own cars and the 'eo'le who own

the cars which belong to any of the to' five brands.

2.; INSTRUMENTATION*

An o'en ended and close ended )uestionnaire was administered su''orted by a 'ersonal

interview to draw detailed e9'lanations on the factors which is based on the survey

method. (he instrument used to collect the data from 'rimary source is structured

)uestionnaire, which consists of number of )uestions 'rinted in a systematic form.

Information was collected from various car owners. (ools used in analysis will be @9cel.

2.: HYPOTHESIS*

oM Foreign 'layers do not have more brand e)uity as com'ared to Indian 'layers

in the Indian car market.

1M Foreign 'layers have more brand e)uity as com'ared to Indian 'layers in the

Indian car market.

2.9 DATA COLLECTION*

/


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rimary data being collected afresh from the from the car owners with the hel' of

)uestionnaire.

5econdary data are used such as books, survey re'orts, Internet etc.

2.13 LIMITATIONS OF THE STUDY*

(he study is confined only to ;angalore city car users.

(he study is limited only to to' brands and not 'remium brands.

(ime limit is restricted only to 1 month.

(he results are based on the 'resent 'erce'tion in the minds of the customers.

CHAPTER 5 8

PROFILE OF COMPANIES TA?EN

FOR RESEARCH

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8.1 TATA /ROUP

@stablished in 1#%2, (ata !otors is India


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manufactured 'assenger car. $ithin two years of launch, (ata Indica became India


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8.2 MARUTI UDYO/ LTD

B")@r%(n

imited *!B+ was established in Feb 1#"1 through an Act of arliament, as a

3overnment com'any with 5uuki !otor 7or'oration of a'an holding / 'er cent

stake. It was entrusted the task of achieving the followingM

!oderniation of the Indian Automobile Industry.

roduction of vehicles in large volumes

roduction of fuel-efficient vehicles.

5uuki was an obvious choice because of its un'aralled e9'ertise in small cars. (he

oint =enture agreement was signed between 3overnment of India and 5uuki

!otor 7om'any *now 5uuki !otor 7or'oration of a'an+ in Hct 1#".

(he com'any went into 'roduction in a record time of 1? months and the first car

was rolled out from !aruti Bdyog imited 3urgaon in ecember, 1#"?.

C"r M"ret S)en"r!%

$hen !aruti began o'erations in 1#"?, there were only two other car com'anies in

India and the total sie of the Indian 'assenger car market was a measly %&,&&&

units 'er year. From the start, !aruti caught the imagination of Indian car

customers and launched four new models, including a hatchback, a mini

multi'ur'ose van, an entry sedan and a 5B=, over the ne9t decade. @ach of these

models was an instant draw with the Indian consumers. 5uuki !otor 7or'oration

increased its stake on two occasions */TT %& TT 2& TT controlling stake and

brought it to 2& 'er cent in the mid 1##&s *and to 2%> with 'rivatiation in &&+.

?1


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St"te5%05t#e5"rt M"n(0")t(r!n@ F")!&!t!es

(he 3urgaon 'lant com'rises of three fully integrated, state-of8the-art 'roduction

facilities s'read over a s'rawling #4 acres. $hile the three 'lants have a total installed

ca'acity of ?2&,&&& cars 'er year, several 'roductivity im'rovements over the years havemade it 'ossible to manufacture nearly /,?&,&&& cars 'er year at these facilities alone.

$orking towards the goal of making India a global hub for small cars, 5!7 and !B

have drawn u' an investment 'lan of Es #&&& crore in India u'to &1&.

MULs 0%(rt# )"r "sse-=& p&"nt D!ese& P&"nt "t M"nes"r

A brand new assembly 'lant at !anesar was inaugurated in February &&4. 5tarting with

an initial ca'acity of 1&&,&&& cars 'er year, this 'lant will be scaled u' to 'roduce

?&&,&&& cars a year by &1&. Adjoining this new facility at !anesar is 5uuki owertrain

India imited *5I+, 5uukis iesel @ngine manufacturing facility. (his 'lant was also

inaugurated in February &&4. (hese facilities will meet 5!7 and !Bs global

ambitions and are among 5!7s best 'lants worldwide.

S((! P%$ertr"!n In!" L!-!tes !ese& en@!ne "n tr"ns-!ss!%n p&"nt

(he diesel engine 'lant is 5uukis first such facility anywhere in the world. (his

state-of-the-art 'lant will 'roduce world class diesel engine and transmissions for

cars. 5uuki owertrain India imited *5I+ is a joint venture com'any in which

5!7 holds 4& 'er cent e)uity with the rest held by !B. (his facility has an

initial ca'acity to manufacture 1&&,&&& diesel engines a year. (his will be scaled

u' to ?&&,&&& engines 'er year by &1&. (he diesel engines manufactured at this

'lant will also be e9'orted to 5!7s worldwide o'erations . 5'read over /&&

acres, the !anesar 'lant facilities also has, for the first time in the Indian

automobile industry, a 5u''liers ark.

$ith three fully integrated state-of the-art 'lants at 3urgaon and the newly commissioned

fourth assembly line at !anesar, !arutis 'roduction ca'acity at its 'eak !aruti is

ca'able of 'roducing close to a million cars 'er annum by &1&.

?


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8.8 TOYOTA

(oyota Jirloskar !otor is a joint venture between (oyota !otor 7or'oration of a'an

and Jirloskar 3rou' of India. (oyota !otor holds "#> e)uity of the com'any. 7amry,

7orolla, rado and Innova are the successful cars of (oyota on Indian roads.

Pr%()t R"n@e %0 T%%t" ?!r&%s"r M%t%r

7amry

7orolla

rado

Innova

(oyota is one of the biggest vehicle manufacturers in the world and is widely known. (he

com'any started by inventing the first 'ower loom in a'an at the end of the nineteenth

century and revolutionied the te9tile industry of the country. In 1#1", 5akichi (oyoda

and his son Jiichiro (oyoda established (oyoda 5'inning and $eaving 7om'any.

5akichi fulfilled his lifelong dream by creating an automatic loom in 1#%. (oyoda

Automatic oom $orks followed in 1#/. In the 1#&, Jiichiro introduced himself in

the automotive industry. e laid the foundation of (oyota !otor 7or'oration that was

established in 1#?4.

5oon (oyota became the largest vehicle manufacturer in a'an with more than %&>

market share. It made inroads into foreign markets in the late 1#2&s. (he first 7rown

models launched in the B5A in 1#24. After that by 1#/2, models like 7orolla build its

re'utation and sales.

In India, (oyota !otor 7or'oration has launched with a joint venture with Jirloskar

3rou' as (oyota Jirloskar !otor td.

At (oyota, we view building vehicles as a community 'roject. $e invite you to learn

about where the thousands of Americans who make u' (oyota live and work. 6ot only

??


34/65

the individuals who sell (oyota and e9us vehicles, but those who design, test, and

manufacture our vehicles and com'onents using many B.5. sourced 'arts.

In &&/, (oyota was engaged in a variety of 'rojects designed to solidify its foundations

while continuing to grow.

Hn the 'roduct front, e9us launched its new flagshi' model, the 5, and the new global

7amry went on sale. In a'an, a new 7orolla range was introduced, em'hasiing the

im'ortance of this best-selling car.

In manufacturing, several new 'rojects were started around the world. In !ay,

manufacture of the 7amry began in 3uanghou, 7hina, while in the Bnited 5tates, the

Jentucky 'lant, which in Hctober celebrated & years of 'roduction, started

manufacturing the first (oyota hybrid vehicle to be made in 6orth America, the 7amry

ybrid. In 6ovember, the (e9as 'lant began 'roducing the new (undra truck, a key

vehicle in (oyotas 6orth American lineu'. In a'an, (oyota !otor Jyushu, Inc. began

full-scale o'erations at its engine factory, while (oyota !otor (ohoku 7o., td.

increased its manufacturing ca'acity.

In human resources develo'ment, following the establishment of the Asia acific

3lobal roduction 7enter in (hailand in August &&2, (oyota established the 6orth

American roduction 7enter in the B.5. in February, and the @uro'ean 3lobal

roduction 7enter in the Bnited Jingdom in !arch. @stablished as branches of the

3lobal roduction 7enter in a'an, these were created to s'read (oyotas manufacturing

knowledge and skills throughout the world in 'ace with the ra'id growth of (oyotas

overseas manufacturing. (he centers educate trainers for local manufacturing 'lants in all

regions, with trainees 'assing on what they learn to team members on their return to their

'lants.

In E0, (oyota focused its efforts on three key areasM environment, safety and

energy. It made a s'ecial effort in the area of the environment by e9'anding its lineu' of

hybrid vehicles, and has worked on E0 relating to 'lug-in hybrid. In addition, as 'art of

(oyotas efforts to res'ond to the diversification of energy, in &&4 (oyota 'lans to

?%


35/65


36/65

8.7 HONDA

onda !otor 7o., td., o'erates under the basic 'rinci'les of CEes'ect for the

IndividualC and C(he (hree oysC-commonly e9'ressed as (he oy of ;uying, (he oy of

5elling and (he oy of 7reating. Ees'ect for the IndividualC reflects our desire to res'ect

the uni)ue character and ability of each individual 'erson, trusting each other as e)ual

'artners in order to do our best in every situation. ;ased on this foundation of Ees'ect for

the Individual, C(he (hree oysC e9'resses our belief and desire that each 'erson working

in, or coming into contact with our com'any, directly or through our 'roducts, should

share a sense of joy through that e9'erience.

In line with these basic 'rinci'les, since its establishment in 1#%", onda !otor 7o.,

td., has remained on the leading edge by creating new value by 'roviding 'roducts of

the highest )uality at a reasonable 'rice, for worldwide customer satisfaction. In addition,

the 7om'any has conducted its activities with a commitment to 'rotecting the

environment and enhancing safety in a mobile society.

(he 7om'any has grown to become the world


37/65

'assenger cars *the Accord+ in the B.5. 5ince then, onda has established inde'endent

local o'erations around the world for research, develo'ment, marketing, and 'roduction.

(hrough the introduction of onda


38/65

8.4 HYUNDAI

yundai !otor is 5outh Jorea in e9'orts over the year &&%.

?"


39/65

(he com'any has been awarded the benchmark I5H 1%&&1 certification for its sustainable

environment nt management 'ractices.

Ouality. ;rand 'ower. (hese are the two 'riorities for H(n"!!otor 7om'any as it

're'ares for the future. 6o longer content to follow and learn, yundai is now seeking to

lead the motor industry in sha'ing the evolution of motor vehicles. $ith yundai


40/65

and more environmentally friendly vehicles while res'ecting fundamental values, striving

for ethical management and e9'anding contributions to social causes.

astly, yundai will attach greater im'ortance to human resources. $e will e9'and the

recruitment of engineers and global s'ecialists multi-lingual talented individuals who are

at home anywhere in the world. yundai !otor will reinforce its 'osition of strength and

confidence by continually im'roving its management ca'abilities.

A$"rs

&&2

6o 1 @ntry !idsie 7ar< by Accent etrol.

6o 1 @ntry !idsie 7ar< by Accent 7Ei.

yundai 3et became the


41/65

CHAPTER 5 7

ANALYSIS

INTERPRETATION

%1


42/65


43/65

(able %.

(ata 4

!aruti 11

(oyota #

yundai 1%

onda 2

Ford ?

3eneral motors

!ahindra 1

Figure%.

Brands that appeal

$ata

%&

'aruti

2%

$oyota

%(

Hyundai

2(

Honda

%)

!ord

*

+eneral motors

4

'a,endra

2

$ata

'aruti

$oyota

Hyundai

Honda

!ord

+eneral motors

'a,endra

Interpret"t!%n*

(he information as given above shows that the foreign 'layers 'ut together have ??> of

the market share while Indian brands have only 1#>. (his very much shows that the

su'erior technology, design of the foreign 'layers a''eal to the Indian customers more

than local 'layers.

?. $hat kind of service are you looking for:

%?


44/65

(able %. ?

Eeminders 1?

Free 'ick u' and dro' 41

5ervice schemes 1/

Figure %. ?

Kind of service

Reminders

%&

!ree pic up

and drop

(%

.ervice

sc,emes

%*

Reminders

!ree pic up and drop

.ervice sc,emes

Interpret"t!%n*

From the above information we come to know that majority of the 'eo'le 'refer theyre

to be 'icked u' and dro''ed from service since every one is busy with their work.

%. $hats the name of the brand Ad you have seen:

%%


45/65

(able %. %

Indian 2"

Foreign %

Figure %. %

Advertisments seen

Indian

"#

!oreign

42 Indian

!oreign

Interpret"t!%n*

In this case we see that Indian brands generally use the media *(=, 'rint+ more to

'romote their 'roduct as com'ared to foreign brands. (his shows that Indian brands

s'end a lot of money and try to come out with the advertisements that a''eal to the

customers.

%2


46/65

2. 7an you recollect the advertisement:

(able %. 2

artial 4

Full "

Figure %. 2

Ad Recall

/artial

(2

!ull

2#

/artial

!ull

/. 7om'arison of Indian and foreign brands

(able %. /

%/


47/65

Indian Foreign

erformance % 2"

5tyle %4 2?

andling ? /"

;rand name ?4 /?

5ervice %# 21

Figure %. /

Comparision

424(

&2&(

40"#

"&

*#

*&"%

)

%)

2)

&)

4)

")

*)()

#)

/erfo

rman

ce

.tyle

Handlin

g

Bran

dna

me

.ervice

Indian

!oreign

Interpret"t!%n*

(he above information shows that Indian customers 'refer foreign brands to Indian

brands in terms of 'erformance, style, handling and brand name.

4. eo'les loyalty towards the brands in 'urchasing their ne9t carM

Figure %. 4

%4


48/65

Brand change

same brand

"&

different brand

4(same brand

different brand

". eo'les 'reference in choosing their cars in ne9t 'urchaseMFigure %. "

brand preference

%0

20

&4

%#

)

"

%)

%"

2)

2"

&)

&"

4)

same brand different brand

India

!oreign

#. $hy do you go for this 'articular brand:

%"


49/65

(able %. 4

1ttributes Indian !oreign $otal

Brand " # %&

oos/style ( %% %#

erformance 0 &% 4)

rice %0 %) 20

$otal 4) *) %))

Figure %. #

"(

0

%0

#

%%

&%

%)

)

"

%)

%"

2)

2"

&)

&"

Brand oos/style performance price

Indian

!oreign

%#


50/65

Hp%t#es!s*

oM (he attributes *;rand name, looksNstyle, 'erformance and 'rice+ of foreign

brands, does not affect 'eo'les selection of a 'articular brand when com'ared

with Indian brands

1M (he attributes *;rand name, looksNstyle, 'erformance and 'rice+ of foreign

brands, does affect 'eo'les selection of a 'articular brand when com'ared with

Indian brands

F%r-(&"

C#! s


51/65

(able value of 7hi 5)uare for *?, &.&2+ X 4."1

5ince, )"&)(&"te "&(e K12.9:G t"=&e "&(e K;.:1G ree)t H%.

T#ere 0%r, A))ept H1.

(hat is,

1M (he attributes *;rand name, looksNstyle, 'erformance and 'rice+ of foreign

brands, does affect 'eo'les selection of a 'articular brand when com'ared with Indian

brands.

21


52/65

1&. $ith res'ect to your brand what does it convey to you.

(able %. "

1ttributes Indian !oreign $otal

.tatus %4 22 &*

uxury 0 %2 2%

.afety " ( %2

3conomy %& %# &%

$otal 4% "0 %))

Figure %. 1&

)

"

%)

%"

2)

2"

.tatus uxury .afety

Indian

!oreign

2


53/65

Hp%t#es!s*

oM Indian ;rands in terms of status, lu9ury, safety and economy do not a''eal to

the Indian consumers as com'ared to Foreign brands.

1M Indian ;rands in terms of status, lu9ury, safety and economy do a''eal to the

Indian consumers as com'ared to Foreign brands.

F%r-(&"

C#! s


54/65

egrees of freedomX *%-1+U*-1+

X ?

(able value of 7hi 5)uare for *?, &.&2+ X 4."1

5ince, )"&)(&"te "&(e K3.1396G t"=&e "&(e K;.:1G A))ept H%.

T#ere 0%r, Ree)t H1.

(hat is,

Indian 'layers in terms of status, lu9ury, safety and economy do a''eal to the Indian

consumers as com'ared to foreign brands.

11. ave you faced any 'roblem with your brand:

(able %. #

2%


55/65

Figure %.11

)%

2

&

4

"

*

(

#

0

%)

Comfort

Handling

/erformance

.ervice

4uality

1vailability

andcostof

spares

Indian

!oreign

Attributes Indian Foreign (otal

7omfort # 2 1%

andling / 2 11

erformance 2 " 1?

5ervice Ouality " 2 1?

Availability and cost of s'ares 2 2 1&

(otal ?? " /1

22


56/65

Hp%t#es!s*

oM 7ustomers do not face more 'roblems with Foreign brands as com'ared to

Indian ;rands

1M 7ustomer face more 'roblems with Foreign brands as com'ared to Indian

;rands

F%r-(&"

C#! s


57/65

C#! s


58/65

INTERPRITATION*

Hn analying the entire )uestionnaire we come to known that in every way customer who

own Foreign ;rands are far more satisfied than customers who own Indian ;rands.

(he reason being that the foreign ;rands offer 'roducts that are more su'erior in terms of

tecnonology, )uality, looks, style, 'erformance etc., so 'eo'le are willing to 'ay e9tra for

the same. In most of the )uestions asked the foreign brands are most 'referred to own and

out beat the Indian ;rands in all de'artments.

7ustomer who own Indian ;rands are willing to change their ;rand and go for a foreign

brand in their ne9t 'urchase, this shows that these foreign brands are slowly eating into

the Indian car market and very soon may be in the ne9t few years they will dominate, this

again will lead to tough com'etition among themselves with each foreign com'any

introducing new su'erior )uality cars and fighting their way to become the leaders in the

Indian 7ar !arket.

$ith many foreign ;rands entering the Indian 7ar market and slowly ca'turing the

market, my study was to find out $#et#er F%re!@n =r"ns %r In!"n =r"ns #"e

-%re =r"n e


59/65

Hn doing the y'othesis for three )uestions as shown above using 7hi 5)uare, we see

that the Foreign ;rands are more 'referred to the Indian customers, on the basis of the

test conducted and the results favoring the Foreign ;rands, relating this to my main

y'othesis I have come to the conclusion thatM

Eeject & and acce't 1.

(he study 'roved that Foreign ;rands have more ;rand e)uity and Indian ;rands in the

Indian car market.

2#


60/65

CHAPTER 5 4

FINDIN/S, SU//ESTIONS AND

CONCLUSION

/&


61/65

4.1 FINDIN/S

Hn com'leting the 'roject here are my findingsM

1. Foreign ;rands have more ;rand e)uity and Indian ;rands in the Indian car

market.

. Foreign brands are more su'erior to Indian brands in term of comfort, handling,

'erformance, looks and service )uality.?. Foreign brands a''eal more to the customer in terms of status, lu9ury more as

com'ared to the Indian brands.

%. Foreign brands are a bit more e9'ensive than Indian brands.

2. Foreign brands have a better brand name as com'ared to the Indian brands.

/. 7ustomers face more 'roblems with Indian brands as com'ared to foreign brands.

4. 7ustomers owing foreign brands are ha''y with their brand and are willing to

stick on to their brand in their ne9t 'urchase, this shows that foreign brands have

more brand loyalty.

". !ajority 7ustomers owing Indian brands are 're'ared to change their brand by

going in for a foreign brand, this shows that Indian brands have less brand loyalty

as com'ared to foreign brands.

#. 7ustomers owing both Indian as well as foreign brands want better service

schemes, want a free 'ick u' and dro' of their cars at the time of service and

reminders should be given when its time to service their car.

1&. In terms of advertisement recall, customers remember Indian car advertisements

as more as com'ared to foreign brands. !ajority of customers only remember the

advertisement 'artially.

/1


62/65

4.2 SU//ESTIONS

1. Indian brands have to better in on their technology, )uality so that they can

kee' u' with the foreign brands.

. Indian brands should formulate strategies to im'rover their brand names.

?. 5ince foreign brands have better technology, so the Indian brands have to try

and ado't the same technology.

%. Foreign brands advertisements are less effective in terms of customer

recollection, so these brands have to im'rove on their advertisement strategy.

2. In terms of service )uality, 'erformance etc customers face 'roblems with

their brands, therefore Indian brands should im'rove on these as'ects so that

their customers are ha''y and become more brand loyal.

/. ;oth Indian and Foreign brand have to im'rove their service )uality and offer

various schemes, free 'ick u' and dro' of their customers car.

/


63/65

4.8 CONCLUSION

India is one of the largest automobile markets in the world, with over 12 brands,

each of them fighting it out to become the market leader by 'roducing better cars

with su'erior technology at com'etitive 'rices.

Among the brands in the Indian market, majority of them are foreign brands,

leaving the Indian brands to fend for themselves. (hese foreign brands offer theIndian consumers a array cars that are of high )uality and which easily out

'erform cars 'roduce by Indian brands in almost all de'artments be it

'erformance, handling, technology, comfort looks etc.

Foreign brands a''eal to the customers more, it is for this reason that we see

foreign brands are beginning to dominate the Indian market and it will not be

along when we find that there will only be foreign brands in the Indian market.

/?


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REFERENCES*

avid A Aaker, !anaging brand e)uity and ca'italiing on the value of brand

name.

ean 6oel Ja'ferer, strategic brand managementM 7reating and sustaining

brand e)uity long term *second edition+

hili' Jotler, P!arketing !anagement, 1thedition, rentice-all India, 6ew

elhi, &&/

7.E.Jothari, PEesearch !ethodology, ndedition, $ishwa rakashan, 6ew

elhi, &&1

Auto India !againe.

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