08 Chapter 1shodhganga.inflibnet.ac.in/bitstream/10603/77572/7/07... · 2018-07-08 · 4) To evaluate the customer satisfaction and its dependent variables. 5) To compare the pattern

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CHAPTER - 1

INTRODUCTION AND RESEARCH METHODOLOGY

Introduction:

The automobile industry in India is the tenth largest in the

world with an annual production of approximately 2 million units and is

expected to become one of the major global automobile industries in the

coming years. It is also projected that Indian market will stand at the third

highest position by 2020. It is also surprising to know that by 2014 the Indian

passenger car market will leave behind the pioneer auto country like Japan. A

number of domestic companies produce automobiles in India and the

growing presence of multinational investment, too, has led to an increase in

overall growth. Following the economic reforms of 1991 the Indian

automotive industry has demonstrated sustained growth as a result of

increased competitiveness and relaxed restriction. “The monthly sales of

passenger cars in India exceed 1, 20, 000 units.”1

The export sector grew at a rate of 30 percent per year during

early 21st century. Increased presence of multiple automobile manufacturers

has led to market competitiveness and availability of options at competitive

costs. A number of car plants in India export some of their cars to generate

greater volumes of production in order to achieve the economies of scale and

be profitable. The companies such as Maruti Suzuki, Hyundai Motors, Tata

Motors, Mahindra and Mahindra, Premier, REVA etc. And the multinational

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automobiles companies such as Audi, BMW, Fiat, Ford, General Motors,

Honda, Hyundai, Renault- Nissan, Mercedes- Benz, Mitsubishi, Toyota, and

Skoda are also grabbing the opportunities that lie in India. Marketing of

automobile products requires a different approach. Automobiles are ‘high

ticket items’ (Shopping goods) than other goods that are sold. It creates

huge number of jobs and provides business to the ancillary manufacturers.

“The automobile industry provides direct and indirect employment to a total

of 13.1 million people.”2

The automobile business is highly competitive and is

also driven by discounts. Besides marketing on price, promotion, the car is

both a highly technical product that has huge brand aspiration values as well.

Thus, automobile manufacturers compete on not just multiple technical

parameters like engine size and horse power, but the power of brand as well.

These multiple factors for driving sales make automobile marketing both a

challenge and a fascinating example of the power of marketing to drive

customers towards purchase decisions. This all encourage the researcher to

undertake the research entitled: “Exploring Marketing Strategies and

Consumer Satisfaction in Automobile Industry: A comparative study of

Aurangabad and Pune city.”

Market Analysis:

The Indian car manufacturing industry has experienced strong

double digit growth in recent years. The market is expected to decelerate and

post moderate growth rates throughout the forecast period.

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“The Indian car manufacturing industry had total revenue of $22.5

billion in 2010, representing a compound annual growth rate (CAGR) of

22.8% for the period spanning 2006-2010. In comparison, the Chinese

industry increased with a CAGR of 24.4%, and the Japanese industry declined

with a compound annual rate of change (CARC) of -2.2%, over the same

period, to reach respective values of $79.6 billion and $170 billion in 2010.”3

Industry production volumes increased with a CAGR of

18.2% during 2006-2010, to reach a total of 2,871,240 units in 2010. The

industry's volume is expected to rise to 3,348,500 units by the end of 2015,

representing a CAGR of 3.1% for the 2010-2015 periods. The table No. 1.1

given below shows the scenario of automobile industry from 2003-2004 to

2009-2010:

Table No. 1.1

Automobile Domestic Sales Trends

(Source: Report of SIAM – 2010)

Category 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger

Vehicles902,096 1,061,572 1,143,076 1,379,979 1,549,882 1,552,703 1,949,776

Commercial

Vehicles260,114 318,430 351,041 467,765 490,494 384,194 531,395

Three

Wheelers284,078 307,862 359,920 403,910 364,781 349,727 440,368

Two

Wheelers5,364,249 6,209,765 7,052,391 7,872,334 7,249,278 7,437,619 9,371,231

Grand Total 6,810,537 7,897,629 8,906,428 10,123,988 9,654,435 9,724,243 12,292,770

Annual

Increase/De

crease (in

percentage)

----- 15% 30% 48% 41% 42% 80%

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The table no. 1.1 clearly depicts the annual increase of the

domestic sale in automobile industry. Considering the base year 2003-04,

there was an increase in sales by 15 percent in 2004-05. The next year of

2005-06, it has been increased by 30 percent i.e., increased of 15 percent

compared to the previous year’s sale. Similarly in the year 2006-07 it went

up to 48 percent by an annual increase of 18 percent compared to the last

year.

The sales figures of the year 2007-08 shows 41 percent increase

in comparison with the base year sale. But compared to the sale of 2006-07,

there was decrease in sales by 7 percent. Again in the year 2008-09, it simply

increase by 1 percent and went up to 42 percent. Above all the sales figures

of 2009-10 shows a huge increase in sales and it is 80 percent compared to

the base year and 32 percent increase compared to the previous year.

All these figures indicate the continuous increasing sales trend in

Indian Automobile market. The increase in sales trend had been boomed up

in the year 2009-10 may be because of the entry of multinational automobile

manufacturers in Indian market. Similarly, the Indian manufacturers have

also introduced the multiple brands with wide variety of features. The

another reason behind increasing sales trend since last 4 to 5 years is also

sought on account of the liberal economic policies of the Government which

allowed the entry of private financial institutions in the Indian capital and

money market. To face the competition with private financial institutions,

the Government and Semi Government financial organizations have

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simplified their money lending procedures and diluted the terms and

conditions. These all reflected in increasing sales trend in the Automobile

Industry. The performance of the Automobile Industry is forecast to

decelerate, with an anticipated CAGR of 4.5% for the five- year period 2010-

2015, which is expected to drive the industry to a value of $28 billion by

the end of 2015. Comparatively, the Chinese industry will increase with a

CAGR of 7.3%, and the Japanese industry will decline with a CARC of -0.1%,

over the same period, to reach respective values of $112.9 billion and

$169.5 billion in 2015. The present research is an attempt to study the

marketing practices of automobile manufacturers in general and the

customer satisfaction in particular. The study is also an attempt to measure

various manufacturers and their marketing strategies, along with customer

services and engagement issues.

The segment wise automobile market share in India is

depicted in the following table:

Table No. 1.2

Market Share of Vehicles in India

Sr.No. Segment Percentage

1 Two-Wheelers 76.00

2 Passenger vehicles 16.25

3 Commercial vehicles 4.36

4 Three Wheelers 3.39

Total 100.00

(Source: Abhimanyu Ghose, Market leaders, Business and Marketing,Vol VI, Issue 11- 17 June-30 June,11pp 32 )

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The table No. 1.2 makes it clear that the largest market share

in automobile industry includes two wheelers. The reason behind it is that

the two wheelers are available in market at cheaper prices and they are

popular because of economy in fuel. The next segment in this sector is of

Passenger vehicles which include cars as a form of transport vehicle for

private use as well as for commercial use (Taxis). The remaining market share

is occupied by the commercial vehicles and the three wheelers.

Research Method Adopted:

The following research methodology is adopted for the present study:

Objectives of the Study:

The objectives of the research are,

1) To attempt micro level comparative analysis of automobile industry.

2) To study the problems, prospects and development of automobile

industry.

3) To undertake the comparative analysis of automobile marketing of Indian

automobile manufacturing companies and multinational companies with

reference to product, sales, branding, promotion and strategies.

4) To evaluate the customer satisfaction and its dependent variables.

5) To compare the pattern of marketing and customer satisfaction about

automobiles between Aurangabad and Pune cities.

Hypotheses:

1) Automobile is an emerging sector of Indian economy with huge potential

for growth in coming time.

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2) The marketing strategies adopted by the auto manufacturers, dealers,

financing institutions and insurance companies are aggressive in nature.

3) Due to advance technology in technology the car users are satisfied

towards the fuel consumption of the car.

4) The type (size) of car has nothing to do with family size.

5) Geographical area and version of a car has its impact on decision making.

Data Collection:

A) Primary data collection:

The Questionnaire method and interviews of the stakeholders

have been undertaken for the collection of primary data. The sample

includes 45 dealers of Pune and 16 dealers of Aurangabad city. As far as the

dealers are concerned it is a census enquiry. To get feedback of the

customers the sample size decided was 575 and 425 from Pune and

Aurangabad cities respectively. This sample size is taken in to considering the

total number of registered owners of the vehicles from Pune and Aurangabad

cities. As there is a huge population (Universe) of car owners in Pune and

Aurangabad cities, it was not possible to interact with all car owners for the

purpose of study. For this study deliberate random sampling method has

been used and accordingly the cars registered from 2005 to 2010 have been

considered as sample. Amongst these total numbers of registered car

owners of both the cities, the researcher has approached the owners from

different professions which include Industry, Banking, I.T., Doctors, Lawyers,

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Tax Consultants, Educationists, Agriculturists, etc. A separate questionnaire

was administrated on dealers and customers. The questionnaire of dealers

consists of 18 questions. And the questionnaire of customers consists of 27

questions.

B) Secondary data collection:

In order to conduct the research, the secondary data is of

unique importance which gives insight in the subject matter. The secondary

data was collected from Books, Magazines, Journals, Periodicals, Survey

Materials, Reports, Newspapers, and Internet. For this purpose the

researcher visited the various libraries, showrooms, and has studied various

catalogues and broachers on automobile.

Tools of Data Analysis:

The collected data has been tabulated, analyzed and

represented graphically in the last chapter. For data analysis purpose the

SPSS software was used.

Scope:

The study probe into the evolution of automobile industry

with reference to light motor vehicle (LMV) only. The marketing practices

followed by the manufacturers and dealers and the customer satisfaction of

automobile users in Aurangabad and Pune cities of Maharashtra have been

analyzed in the present research study.

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Limitations:

This entire research activity is restricted for the period of five

years. (From 2005-06 to 2009-10) Similarly, it is a comparative analysis of

marketing strategies adopted by automobile manufacturers and dealers for

selling their products in Pune and Aurangabad cities only. The limitation of

the study is regarding the sample size. Though there is large number of car

owners from both the cities, the researcher has selected a limited and

specific number of samples inclusive of the respondents from all most all

areas of professions.

Period of the Study:

The present study tries to explore the marketing practices

applied by different Automobile companies/ dealers in 2005 to 2010. At the

same time, to assess the customers’ satisfaction, customers who have

purchased their cars between the years 2005 to 2010 are considered as

respondents. While doing the primary research work, the researcher

came to know that during the years 2005 to 2010, there was considerable

increase in the sale of automobiles in Indian market. Society of Indian

Automobile Manufacturers (SIAM) have projected an investment of Rs.

30,000/- Crores by 2010 but now it has come to the notice that it has revised

the projection to a whopping Rs. 60,000/- Crore within next few years. Not

only Indian companies but several overseas automobile major players are

also entered with fresh manufacturing capacities in the country during this

period. These facts motivated the researcher to undertake in depth analysis

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of Automobile industry and identify the causes behind ever increasing sales

trend in Automobile market.

India - An Emerging Market:

In the age of Liberalization, Privatization and Globalization

(LPG) India has become a hot and favorite market for the Western

Corporates. Indian car market is exposed to many foreign brands such as

BMW, Audi, Jagwar, Skoda, Toyota, Nissan, Honda, Mitsubishi, Mercedes, etc.

Most of the global companies are focusing their attention on Indian market,

so as to tap the opportunities. Because of large population, rising income

and the unsatisfied class of the customers, India is emerging as one of the

largest market in the world of Durables, FMCG’s, and Services. On the

contrary; the basic reason for shifting of Western Corporates, especially the

automobile industry towards Indian market is the saturation of their

domestic market. “According to the World Bank Report China, India, Russia,

Mexico, Brazil and Thailand are considered as the emerging markets in the

world.”4.

Causes of Emerging Market:

The Indian market is an emerging market in the world because of:

1) Rapid growth in population,

2) Rising Income,

3) Increase in Per-Capita Income,

4) Increase in Communication facility,

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5) Change in Social Attitude,

6) Increase in Education and Awareness.

The Basic Premise-Marketing:

A center around which the marketing activities are undertaken

is called as ‘Market’. Market in general, may be described as a place or

geographical area where buyers and sellers meet; and function, goods or

services are offered for sale and the transfer of ownership takes place. The

marketing guru says traditional, a “Market was a physical place where buyers

and sellers gathered to buy and sell goods.”5 In other words market is

“anybody of persons who are in intimate business relations and carry on

extensive transactions in any commodity.”6 “It is an institutional medium

through which whatever is bought or sold by buyers and sellers, consumers

and producers, in exchange for a price.”7 According to Clark and Clark it is

“an area in which the forces leading to exchange of title to a particular

product operate and towards which the actual goods tend to travel.”8

Economics view as “an aggregate of the potential buyers for a product or

service.”9 The American Marketing Association defines a ‘Market’ “as the

aggregate origin of the word Market Demand of the potential buyers for a

product or service.”10 The emphasis of this definition of market is on a

geographical area and is found where a commodity is concentrated for sale.

In this sense every place in the world can be called as ‘Market’, because it

refers to selling and purchasing of goods. Our house is also a ‘Market’ as we

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purchase things like Newspaper, milk, vegetables, electricity, telephone

service, etc.

Etymologically the term “Market is derived from the Latin

word “Marcatus” the meaning is “to trade.”11

Market also denotes

merchandise, wares, traffic or a place of business. The word market has

different connotations as per the context.

The word is commonly used to refer:

A place where market is held.

An assembly of people.

An area of operation.

An organization, which facilitates exchange of commodities.

An act of buying and selling.

An area of commercial activity.

We are living in the age of marketing. In common context

marketing is loosely used term. The meaning of marketing changes with the

change in the perspective. If we ask a housewife she will reply that

purchasing family food is marketing for her, a salesman on a call says he is

marketing the product; a farmer does marketing when he brings his

agricultural output for sale. All these aspects are true. It has also been

observed that marketing is viewed by many as advertising, sales promotion,

selling and in some cases consumer research. This description only explains a

part of marketing. Marketing is much more a border term. The term

marketing is a process or a function originated and developed along with

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human civilization. Marketing is a dynamic concept. It is changing with the

change in the society. It has witnessed transition from barter system to

money economy and now credit economy. However, the transformation of

the term marketing into a full-fledged management science is of recent

origin. Many believe it is a synonym of “selling.” Actually, marketing consist

of all the business activity from purchasing raw material till selling and

customers satisfaction. It may be stated that creating value in to product is

marketing. Marketing may be explained as a business function entrusted with

creation and satisfaction of customers to achieve the business aims.

Marketing is both an art and a science. Marketing as a systematic branch of

knowledge is considered a science and when it considered as a practice it

being an anthropocentric subject and is bounded rationally and hence can be

categories as art.

Definitions of Marketing:

The term marketing is defined by many writers. Some of the

definitions are:

“A human activity directed at satisfying needs and wants

through exchange process.” Philip Kotler.12

“The aim of marketing is to identify customers’ needs and

meet those needs so well that the products almost sell itself.” William D

Perreault and Jerome mc Carhhy.13

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“Marketing is the process of determining consumer demand

for a product or service, motivating its sales and distributing it into unlimited

consumption at a profit” E. F.L.Brech.14

“Marketing is the performance of business activities that direct

the flow of goods and services from producer to consumer or user” Harry L

Hansen.15

Marketing is,

“A system: Of business activity

Designed to: Plan, price, promote and distribute

Something of value: want-satisfying products, services and ideas

For the benefit of: The target market- present and potential household

consumers or industrial users

To achieve: The organizations objectives.” William J Stanton and Richard H

Buskirt.16

“Marketing is the delivery of standard of living to society.” Paul Mazur.17

American Marketing Association (AMA) the apex association in 2004 has

updated the definition of marketing as “Marketing is an organizational

function and a set of process for creating, communicating and delivering

value to customers and for managing customer relationship in ways that

benefit the organization and its stakeholders.”18

“Marketing is a total system of interacting business activities designed

to plan, price, promote and distribute want satisfying products and services

to present potential customers.” William Stanton 19.

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“The aim of marketing is to make selling superfluous. The aim of

marketing is to know and understand the customers so well that the product

or service fits him and sell itself.” Peter Drucker. 20

There are as many definitions of marketing as are the writers. The

definitions quoted in marketing are mind puzzling. Marketing means different

things to different writers. It lacks a common theoretical or applied meaning.

This did not imply that marketing does not exist. It very much exists and what

is more, its significance has steadily increased all over the world. The

multitude of definitions may only point up to the fact that marketing is

everywhere. Indeed marketing is an ancient and it has been practiced in one

form or the other science ancient days. The following discussion will make it

clear:

Peeping the past - The Evolution of Marketing:

Marketing was absent in early stage of human history, where

man used to wander from place to place in search of food by hunting

animals. The growth of tribal system and societies enriched the idea of

growing of corn, sharing the product in common and exchanging the surplus.

In course of time, there was growth in agriculture and increase in the family

size. At this stage the products were exchanged without any medium of

exchange. Later on the concept of exchange was rooted in and began to

extend and evolve. Following are the stages of this development:

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Stage 1st

: The Barter System:

The pre-industrial revolution world was characterized by the

agriculture-cum-handicraft economy. Every village community used to

produce its own food, clothing, shelter and household requirements.

Agriculturist and craftsman was the main producer in that period. They were

unable to produce all the products they need. Hence the exchange against

product to product led to the emergence of Barter System of exchange.

Alutedar, Balutedar systems of marketing in Indian society were meant a task

of producing the basic necessecities of life and exchanging them with known

consumers in the immediate neighborhood. This was the period when

bazaars, shops, fairs etc. came into existence.

Stage 2nd

: The Money Economy Stage:

The next stage in marketing after Barter Stage was Money

Economy. Fundamental change took place in this stage. Barter System was

replaced by the money economy. This development was a quantum leap

forward as it gave momentum to trade (buying and selling of goods) as

specialized class of traders and merchants emerged.

Stage 3rd

: The Industrial Revolution Stage:

The impact of industrial revolution was widespread. This

revolution brought a boom to a new business system. It introduced new

product, new system of manufacturing, new modes of transportation,

methods of communication and change in physical and economic

requirements of man. The medieval period of world history witnessed the

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discovery of new trade routes, growth of towns, commercial centers, and

multilateral trade. The advent of industrial revolution and introduction of

factory system of production with emphasis on mass-scale-production during

17th

and 18th

centuries stimulated trade. There started great demand on

manufacturing products. The industrial revolution brought in its wake the

income revolution. This was the time when the pioneer car making industries

such as Mercedes Benz, Daimler begins.

Stage 4th

: The Age of Competition:

The industrial revolution gave impetus to mass production and

mass distribution, ushering the age of competition. The ever-increasing

number and size of the producing firms generated the phenomenon of

competition. The situation forced the manufacture to act as a product server

of quality goods at an affordable price, which became a parameter of

customer’s choice. Today the world is witnessing cutthroat competition

amongst the manufacturers in automobile industry and hence the varieties of

cars at lower prices are on the road. We are living in the age of competition

and witnessing phenomenal increasing trend in automobile industry

worldwide.

Stage 5th

: Emergence of Marketing:

Modern marketing system came into existence after the end

of First World War (1914-1918). There were problems of surplus and over

production during post war years. There was substantial increase in

population and also the spending capacity of consumers. New industrial

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concerns occupied center stage. At the same time selling of products and

services became difficult because of competition. Due to competition the

customer had alternatives to prefer. Manufacturing become customer

centric. The manufacturer was not only supposed to attract but has to do

everything that would create demand for his product. To attract the

customer’s attention for his product and also to create a repeated sale for his

product has become essential for every businessman. Good product and

service at affordable price was the key used by the manufacturer.

Manufacturer also had to ensure that the product must be made available at

the location of demand. Thus Customer became a key focus for selling the

product.

Stage 6th

: The Digital Era:

The world is witnessing impact of globalization in every

domain of public life and economy is no exception. The free market policies

under the patronage of WTO and regulations of GAAT are directing the

nation structures to accept the new liberal setup. The developments in

information communication and technology are sweeping the world is also

providing momentum for globalization. All most all the countries of the world

are witnessing liberalization, privatization in labour laws, etc. The economics

of scale has been accepted by many nations in which thrust is given on mass

production in the most economical manner. The technological development,

access to information, best communications has generated awareness in

consumers. They are better informed to make choice. This demands ever

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changing consumer oriented dynamic marketing strategies. Now a day,

Marketing has become 24 X 7 X 365 concept where consumer can shop

through Internet from his home and pay by swapping his smart card.

Marketing of Automobile is totally different business. Automobile differs

from other types of product marketing. Marketers of automobiles have to

play different marketing strategies as it is a high priced and high involvement

product. The entry of several Indian and multinational companies in the

automobile business has witnessed tremendous growth in the manufacturing

as well as marketing sector. The Indian consumers have become more

realistic and they are more aware and knowledgeable about the products,

their uses, technologies. Customer Satisfaction is more imperative for the

development of automobile business by which more and more number of

customers can be added. All said and done this is easy task for the

manufacturers of cars to grab the market but the car companies will have to

struggle for their market share in coming days.

What is An Automobile?

An automobile, auto car, motor car or car is a wheeled motor

vehicle used for transporting passengers, which also carries its own engine or

motor. Most definitions of the term specify that automobiles are designed to

run primarily on roads, to have sitting for one to eight people, to typically

have four wheels, and to be constructed principally for the transport of

people rather than goods. The following definition will clarify the concept of

Automobile –“A self propelled passenger vehicle that usually has four wheels

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and an internal combustion engine, used for land transport, also called Motor

Car”.

The term motor car has also been used in the context of

electrified rail systems to denote a car which functions as a small locomotive

but also provides space for passengers and baggage. These locomotive cars

were often used on suburban routes by both interurban and intercity railroad

systems.

There are approximately 600 million passenger cars worldwide

(roughly one car per eleven people). Around the world, there were about 806

million cars and light trucks on the road in 2007; they burn over a billion cubic

meters (260 billion US gallons) of petrol/gasoline and diesel fuel yearly. The

numbers are increasing rapidly, especially in China and India. 21

Evolution of Automobile in the World:

In the year 1769, a French Engineer by the name of Nicolas J.

Cugnot invented the first automobile to run on roads. This automobile, in

fact, was a self-powered, three wheeled, military tractor that made the use of

a steam engine. The range of the automobile, however, was very brief and at

the most, it could only run at a stretch for fifteen minutes. In addition, these

automobiles were not fit for the roads as the steam engines made them very

heavy and large, and require ample starting time. Oliver Evans was the first

to design a steam engine driven automobile in the U.S.

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A Scotsman, Robert Anderson, was the first to invent an

electric carriage between 1832 and 1839. However, Thomos Davenport of

the U.S.A. and Scotsman Robert Davidson were amongst the first to invent

more applicable automobiles, making use of non-rechargeable electric

batteries in 1842. Development of roads made travelling comfortable and as

a result, the short ranged, electric battery driven automobiles were no more

the best option for traveling over longer distances.

The Automobile Industry finally came of age with Henry Ford

in 1914 for the bulk production of cars. This lead to the development of

industry and it first begun assembly lines of his car factory. The several

methods adopted by Ford, made the new invention (that is, the car) popular

amongst the rich as well as the masses.

“The Automobile Industry around the globe was dominated by

the United States with no notable competitors. However, after the end of

the Second World War in 1945, the Automotive Industry of other

technologically advanced nations such as Japan and European nations gained

momentum and within a very short period, beginning in the early 1980s, the

U.S. Automobile industry was flooded with foreign automobile companies,

especially those of Japan and Germany.”22

In 1885, Karl Benz in Mannheim, Germany, discovered the first

automobile with a petrol engine. Benz was granted a patent for his

automobile on 29th January 1886, and he started the first production of

automobiles in 1888. Soon after, Gottlieb Daimler and Wilhelm Maybach in

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Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather

than a horse-drawn carriage fitted with an engine.

The earliest beginnings of the Egyptian automotive industry

date back to the year 1960. During the socialist era, the government pledged

to transform the country from an agricultural economy to an industrial one,

and the first completely Egyptian car was manufactured. In 1985,

automotive giant General Motors (GM) set up its first assembly plant in

Egypt. After that BMW, Nissan, Hyundai and Daewoo produce most of their

models in their factories in Egypt. “In 2004, Egyptian Automotive market sold

72,417 units of automobile, this figure rose to 2,27,488 in 2007 (314 %

increase).”23

The largest increase was seen by the passenger car segment,

which went from 55,471 in 2004 to 1,79,178 vehicles in 2007 (323 %

increase). This trend towards increase in vehicle sales is expected to

continue, with the number of vehicles expected to reach 4,44,000 units by

2012.

“China’s automobile industry has been developing rapidly

since the year 2000. In 2009, 13.63 million motor vehicles were

manufactured in China, surpassing Japan as the largest automobile makers.

With total sales of 13.74 million, China became the largest automobile

market in the world in the year 2009, overtaking the United States.”24

The top 9 car sellers for year 2009 are Volkswagen, General

Motors, Hyundai, Nissan Motors, BYD, Cherry, Honda, Toyota and Geely. The

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Japanese automotive industry is one of the most prominent industries in the

world. Japan was the world’s largest manufacturer in 2008 but lost of the

rank in 2009 to current leader China. It is home to a number of companies

that produces cars, construction vehicles, motor cycles, ATV’s engines, etc.

Japanese automotive manufacturers include Toyota, Honda,

Daihatsu, Nissan, Suzuki, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha and

Mitsuoka.

The current trends of the Global Automobile Industry reveal

that in the developed countries the Automobile Industries are stagnating as a

result the dropping car markets, whereas the Automobile Industry in the

developing nations, such as, India and Brazil, have been consistently

registering higher growth rates every passing year for their flourishing

domestic automobile markets.

History of Automobile from Indian perspective:

The first car moved on Indian roads in the year 1897, owned

by Mr. Foster of Crompton Greaves Company. The first Indian car owner was

Mr. Jamshedji Tata who bought the car in the year 1901. In 1905, Suzzan R. D.

Tata was the first lady in India who drove the car on Mumbai roads. Until the

1930s, cars were imported directly, but in very small numbers. Automotive

Industry emerged in India in the 1940s. “Mahindra and Mahindra” were

established by two brothers as a trading company in 1945, and begun

assembly of Jeep CJ-3A utility vehicles under license from Willys. The

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company soon jumped into the manufacturing of light commercial vehicles

(LCVs) and agricultural tractors.

After the independence, in 1947, the Govt. of India and the

private sector launched efforts to create an automobile component

manufacturing industry to supply to the automobile industry. However the

growth was relatively slow in the 1950s and 1960s due to nationalization and

the license raj which hampered the private sector. After 1970, the

automobile industry started to grow, but the growth was mainly driven by

tractors, commercial vehicles and scooters. Cars were still a major luxury and

in its infancy stage. Japanese manufacturers entered the Indian market

ultimately leading to the establishment of Maruti Udyog. A number of

foreign firms initiated joint ventures with Indian companies to manufacture

cars in India.

In 1980s, a number of Japanese manufacturers launched Joint-

Ventures for building motor-cycles and light commercial-vehicles. It was at

this time that the Indian government preferred Suzuki for its joint-ventures to

manufacture small cars. The very object of the Maruti- Suzuki was to

introduce a small five seater car at just Rs 60,000/. This car was called as

“Janta Car” which means affordable to the general public. Following the

economic liberalization in 1991 and the gradual weakening of license raj, a

number India and multi-national car companies launched operations. Since

then, automotive component and automobile manufacturing growth has

accelerated to meet domestic and export demands.

25

The India automotive industry has demonstrated sustained

growth as a result of increased competitiveness and relaxed restrictions.

Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki

and Mahindra and Mahindra, expanded their domestic and international

operations. India’s robust economic growth led to the further expansion of

its domestic automobile market which has attracted significant India-specific

investment by multinational automobile manufacturers. “In February 2009,

monthly sales of passenger cars in India was 1,00,000 units and has since

grown rapidly to a record monthly high of 1,82,992 units in October 2009.

From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7 %

and with only 10% households owning a car in 2009.”25

Changing dimensions of Automobile Industry:

The global market has witnessed enormous changes in

automotive marketing. The cars have undergone tremendous change over a

period of past two decades. The automotive products have become

technology intensive and customer centric. The markets have witnessed

change from sellers’ market to a buyers’ market. (Govern by delighting the

customers). Marketing researchers have kept pace with the changing

scenario and enormous work has been undertaken by researchers in form of

continuous research into staying the consumer buying behavior for various

product categories.

In 1996, the automobile industry celebrated its 100th

anniversary. Over these 100 years annual production developed from just a

26

few vehicles to approximately 50 million state of-the-art vehicles, and

number of motorized vehicles had increased to nearly 500 million units

worldwide by year 2001. The year 2001 was marked by the entire industry’s

efforts to embrace e-business to get the car into the Web and the Web into

the car. Globalization, price pressure, technology and consumer behavior

play a crucial role in shaping the structure of the industry. Recent years have

seen great benefits for car users as a result of advanced applied research in

electronics. Many more developments will follow, especially those assigned

to simplify the complexity of operations and handling. The internet has

become a part of daily life and has well reached out into the car.

Tremendous developments took place in the areas of the

automobile industry e.g. performance, fuel consumption, safety, comfort and

information’s for the driver. Fuel consumption has been reduced without

affecting the performance or even improving it, and prices have fallen in

relation to the features and quality of the vehicles. We have seen the first

vehicle that can exchange information via mode communication systems and

the Internet taking the strain off the driver in a number of ways and

situations. Routes can be optimized taking into account the traffic situations

and garages can be notified. In any preventive maintenance work without

the vehicles owner having to keep track of such maintenance records.

Changes in the demographic structure are enforcing this trend

towards more individualized products. “Customers will no longer be satisfied

by owning only one vehicle, but may want to use the most suitable vehicle

27

for each specific activity e.g., a jeep for a short trip to the mountains, a

convertible vehicle in the summers, and a saloon with all wheel drive in the

winter season.”26

Investment in Auto-Sector:

In the recent past, Society of Indian Automobile Manufacturers

(SIAM) had projected an investment of Rs. 30,000/- crores by 2010 but now it

has come to the notice that it has revised the projection to a whopping Rs.

60,000/- crores within next few years. Not only Indian companies, but

several overseas automobile majors are also entered with fresh

manufacturing capacities in the country. In 2006, several new investment

proposals have been allowed by the government, spread across all segments

from the small car and the mid car to two wheelers and other vehicles like

MUVs, LCVs, etc. The details of the figures are depicted in the following table:

Table No. 1.3

Investment by Mid Car Companies

Sr.

NoCompany

Investment

(In crore)

1 Nissan 3000

2 Tata-Fiat(Joint- Venture) 4000

3 Toyota 1600

4 International cars & motors 1000

5 Ford 500

6 Volkswagen 250

7 NAZA 1160

Total 11510

(Source: Compiled from: Auto Industry: The small car saga, Economic Digest, Vol XXXVI,

No3, January, 2007 pp.37,38 )

28

Table No. 1.4

Investment by Small Car Companies

Sr.

No

Company Investment

(In crore)

1 Maruti 6500

2 Hyundai 3800

3 Tata 2000

4 General Motors 100

5 Ford 350

6 Honda Siel 3000

7 Mahindra & Mahindra 2500

Total 18250

(Source: Compiled from: Auto Industry: The small car saga, Economic Digest, Vol XXXVI,

No3, January, 2007 pp.37,38 )

From the tables shown above, it is very much clear that

Nissan’s Rs. 3000 crore investment for manufacturing small cars in India. The

4000 crore investment proposed by the Tata-Motors-Fiat joint venture and

the 1600 crore that Toyota is planning for India, for its small car foray.

International Cars and Motors is puling Rs. 1000 crore into a multi-utility

vehicles (MUV) facility while Ford Motors is investing Rs. 500 crore. German

major Volkswagan has pegged an investment of Rs. 2500 crore for making

cars in India and the Malaysian Company NAZA will invest about Rs. 1160

crore in an assembly plant in the country.

These are in addition to Maruti’s Rs. 6500 crore investment in

new car and engine facilities. Hyundai’s more than Rs. 3800 crore investment

and Tata Motors Rs. 2000 crore outlays for the small car project.

29

General Motors with an investment of Rs. 100 crore and Ford

Motor with about Rs. 350 crore of investment have announced mega

expansion plans as even Honda Siel has earmarked Rs. 3000 crore over the

next decade for India.

Mahindra and Mahindra is setting up a Rs. 2500 crore small

car manufacturing plant around Pune which will spread over 700 areas of

land. Over the recent past players like General Motors, Volkswagen, Daimler

Chrysleir and M & M have announced setting up of Greenfield or brown field

projects for expansion in Maharashtra.

Trends in Automotive:

We are all well aware of the fact that, for decades the Indian

automobile industry was way behind some of the most influential economics

in the world like US and Japan. The India automobile industry, though in its

nascent stage, is expected to set the ball rolling in the Indian economy as

well. Coming to the automotive trends, today, the Indian automobile

industry is most vibrant, modern and upbeat automobile market in the world.

“It is also second largest two-wheeler market in the global map. Indian two-

wheeler industry has also grown by 25 percent in 2009-02010 and by over 27

percent in 2010- 2011”27. With the emergence of the financially sound

middle class, the four wheeler segment is set for tremendous growth and one

can expect of more impetus to the economy from this sector. No wonder

then that this industry has become the centre of attraction for most of the

30

global automotive giants the world over. The factors which play key role in

the Indian automobile trends are as follow:

Government: Unlike the past, the Indian Government has gone

through a total role reversal by becoming the enable rather than the

controller. In recent past it has started providing better infrastructure,

conductive atmosphere to attract investments and implementing growth

oriented economic policies. The huge amount of investment by MNC’s and

domestic players is the outcome of this.

Customer: Armed with higher purchasing power parity and an ever

increasing expectation from products and services, the customer is

undoubtedly the king and has propelled a fierce competition among the

major players in the market.

Competition: With the entry of the multinationals. An immense

pressure has grown on the Indian companies. As a result, a lot of joint

ventures have taken place, some others have invested heavily on R & D to

build their own empires, and the rest have perished.

Pollution and Safety Norms: Cars as well as two-wheelers have met

the most stringent international norms of pollution. Euro II, III, and IV

vehicles have become the norm of the day all over India. Unfortunately in

the Indian context, safety in motor vehicle is a relatively neglected area. Bad

roads coupled with the absence of adequate safety features in the vehicles

31

such as airbag and crumple zone needs immediate attention. But awareness

is on the increase and the use of seat belts while driving has been made

mandatory. No doubt air bags as a measure of safety are made available but

in upper segment of cars at a premium price.

In short, the Indian automobile industry is set for exponential

growth in the coming future and will have a sizable share in the automobile

marketing of the world.

The car production in India is at the apex which is depicted in

the following table:

Table No. 1.5

Car production in India

Sr.

No.Year

Car

Production

1 1999 533,149

2 2000 517,957

3 2001 654,557

4 2002 703,948

5 2003 907,968

6 2004 1,178,354

7 2005 1,264,000

8 2006 1,473,000

9 2007 1,713,479

10 2008 1,846,051

11 2009 2,166,238

(Source: Society of Indian Automobile – Car Manufacturers report 2010, P.P. 87)

A Chunk of India’s car manufacturing industry is based in and

around Chennai, also known as the “Detroit of India” with the Indian

operations of Ford, Hyundai, Renault and Nissan and BMW. Chennai

accounts for 60 percent of the country’s automotive exports. Gurgaon and

Manesar in Haryana are hubs where the Maruti cars are manufactured. The

Chakan corridor near Pune, Maharashtra is another vehicle production hub

32

with companies like General Motors, Volkswagen, Mahindra and Mahindra,

Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having

assembly parts in the area. Ahmedabad with the Tata Nano plant, Halol

again with General Motors, Aurangabad with Skoda and Audi, Kolkata with

Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of

the other automotive manufacturing regions around the country.

The customers of India have shown keen interest in purchasing

cars, according to their purchasing capacity. The increase trend towards car

and other automobile vehicles is depicted in the following table:

33

Table No. 1.6

Total No. of Motor Vehicles Registered in India [1951 to 2006]

Year as

on (31st

March)

All

Vehicles

Two

Wheelers

Cars,

Jeeps

and

Taxis

Busus Goods

Vehicles

Others

*

(1) (2) (3) (4) (5) (6) (7)

1951

1956

1961

1966

1971

1976

1981

1986

1991

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

306

426

665

1099

1865

2700

5391

10577

21374

33786

37332

41368

44875

48857

54991

58924

67007

72718

81502

89618

27

41

88

226

576

1057

2618

6245

14200

233252

25729

28642

31328

34118

38556

41581

47519

51922

58800

64743

159

203

310

456

682

779

1160

1780

2954

4204

4672

5138

5556

6143

7058

7613

8599

9451

10321

11527

34

47

57

73

94

115

162

227

331

449

484

538

540

562

634

635

721

768

892

992

82

119

168

259

343

351

554

863

1356

2031

2343

2536

2554

2715

2948

2974

3492

3748

4032

4436

4

16

42

85

170

398

897

1462

2533

3850

4104

4514

4897

5319

5795

6121

6676

6829

7457

7920

(Source: Road Transport Year Book 2006-2007 Govt. of India. pp 29)

The Automotive Industry in India is one of the largest in the

world and one of the fastest growing globally. India manufactures over 17.5

34

million vehicles (including 2 wheeled and 4 wheeled) and exports about 2.33

million every year. India’s passenger car and commercial vehicle

manufacturing industry is the seventh largest in the World, with an annual

production of more than 3.7 million units in 2010. According to recent

reports, “India is set to overtake Brazil to become the Sixth largest passenger

vehicle producer in the world, growing 16 – 18 percent to sell around three

million units in the course 2011-12. In 2009, India emerged as Asia’s fourth

largest exporter of passenger cars, behind Japan, South Korea and Thailand.

“As of 2010, India is home to 40 million passenger vehicles and

more than 3.7 million automotive vehicles were produced in India in 2010 (an

increase of 33.9%) making the country the second fastest growing

automotive market in the world. According to the society of Indian

Automobile Manufacturers (SIAM), annual car sales are projected to increase

up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050,

the country is expected to top the world in car volumes with approximately

611 million vehicles on the nation’s roads”28

.

Marketing of Automobile in Maharashtra:

Today, India has risen to be the Seventh in global productions

in motor vehicles, and every major automobile manufacturer in the world has

manufacturing plants in India.

The automobile cluster in Maharashtra has developed due to

strong human capital, geographical advantage with access to ports, well

developed financial institutions, good demand in western region and

35

presence of two of the oldest and big automobile companies i.e. Tata and

Bajaj.

Moreover, during the liberalization process, the state

government provided a favorable investment climate and supporting

infrastructure, which attracted higher investment and industries to this state,

including many automobile and component manufactures.

The automotive cluster in Maharashtra State has a relatively

long history. As the cluster is the largest of its kind in India, its evolution

generally coincides with the development of the whole automotive cluster in

India. The origin of the cluster date back to as early as 1940s. Many of the

major domestic automakers, such as Tata Motors, Bajaj Motors, Force

Motors were established in the State. Mahindra & Mahindra was originally

founded in Punjab, but later moved to the Maharashtra State.

1980s saw the first major count is leap of the cluster. In

response to the de-licensing policy by the National Government, joint

ventures with Japanese automakers emerged. In Maharashtra, Swaraj Mazda

was started the production of vehicles in 1983, and this lead to growth of

supporting industries in the state. The major development of the cluster

came in 1990s to 2000s. Tata Motors launched a series of popular cars which

attracted so many ancillary industries in the state.

Foreign automakers also started assembly plants in the state.

This facilitated technological transfer and further development of local

supporting industries.

36

Proactive industrial policy of State Government has set the

foundation of automotive cluster development in the state. Specific to the

cluster, “Industrial, Investment & Infrastructure Policy of Maharashtra 2006”

specified the automotive cluster as one of the target policy areas, and has

been providing incentives (industry promotion subsidy) to eligible companies.

The automobile marketing is at a pick where the facts and figures have shown

that Maharashtra is ahead in sales and use of automobiles. This is depicted in

the following table:

37

TABLE No. 1.7

Motor Vehicles on Road in Maharashtra State as on 31st

March 2005 to

2010.

(In numbers)

Sr.

No.

Category

As on 31 March Percentage

______________________________________________________________________ increase or decrease

2005 2006 2007 2008 2009 2010

over previous year.

(1) (2) (3) (4) (5) (6) (7) (8) (9)

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Motor Cycles

Scooters

Mopeds

Total Two Wheelers

Cars

Jeeps

Station Wagons

Taxi Cabs

Auto – Rickshaws

Stage Carriage

Contract Carriage

School Buses

Private Service

Vehicles

Ambulance

Arti./Multi. Veh.

Trucks & Lorries

Tankers

Delivery van four

Wheelers

Delivery van Three

Wheelers

Tractors

Trailers

Others

Total

Percentage increase

or decrease

over previous year.

4072397

1640891

1213288

6926576

1039800

283016

12613

113380

515249

29024

18043

2910

7605

5823

7288

234950

23766

167455

126388

212466

197169

12444

4733612

1715355

1242889

7691856

1165365

300023

14489

122389

534535

29506

19208

3218

8494

6328

11097

250831

25302

185514

149227

229362

204733

14957

5463365

1818480

1291834

8573679

1308088

322053

18238

133309

555118

29877

21078

3834

9568

6830

12578

276382

27542

205623

178231

250950

220950

17729

6185422

1887356

1322091

9394869

1462518

341782

18158

149526

574625

30957

24324

4154

10154

7453

14345

299646

30276

227850

208875

276438

238080

21331

6887877

1962276

1362207

10212360

1603728

356986

18477

157916

598013

30570

26783

4698

8762

8260

18700

314569

33373

246266

232709

302249

252409

24080

7726106

2054666

1400990

11181762

1790259

373958

18752

168307

626332

31823

28564

5222

9103

9104

18777

323141

32787

267554

254138

331694

270078

27066

12.17

4.71

2.85

9.49

11.63

4.75

1.49

6.58

4.74

4.10

6.65

11.15

3.89

10.22

0.41

2.72

-1.76

8.64

9.21

9.74

7.00

12.40

9935965 10966434 12170991 13335361 14450908 157684219.12

10.78 10.37 10.98 9.57 8.37 9.12

(Source-Motor Transport Statistic of Maharashtra 2009-2010 pp 39)

38

The Table No. 1.7 depicts the Motor Vehicles running on the

roads of the Maharashtra state during 2005 to 2010. It seems from the

above table that there is increasing trend in all types of vehicles. 10, 39,800

motor cars were registered in 2005 and in 2010, there are 17,90,259 cars are

running on the roads of Maharashtra State. This is around 72 percent

increase in the number of motor cars in a period of 5 years. The favorable

road conditions, huge increase in employment, facilities of loans, status

symbol are the main reasons behind the use of motor cars by the people in

Maharashtra.

Automobile Industry in Pune city:

Pune is the cultural capital of Maharashtra and it is the eighth

largest metropolis in India. Pune is known for its educational facilities and

relative prosperity. Pune has well-established manufacturing glass, sugar and

forging industries since the 1950-60s. It has a growing industrial hinterland,

with many information technology and automotive companies, setting up

factories in and around Pune.

Pune is one of the historical cities in Maharashtra surrounded

by natural hills and historical parts. Now-a-days Pune is known for I.T.

industries and premier industrial centre especially in automobiles. Tata

Motors and Bajaj Auto are the two automobile industries which have helped

to bring the name of Pune city on automobile atlas. Chakan industrial area,

just adjacent to the Pune city is dotted with number of car manufacturing

companies like General Motors, Volkswagen, Mahindra and Mahindra,

39

Mercedes Benz, Land Rover, Fiat and Force Motors. The city has witnessed

substantial investments particularly in automobile manufacturing business.

“It is to be noted that taking into account the rapid industrial growth and

favorable atmosphere for automobile industry Mahindra and Mahindra has

set up a new Rs 5000 crore plant in Chakan, Dist Pune. The firm inaugurated

its new 700 acre plant by the hands of Maharashtra CM, Ashok Chavan. The

massive Mahindra Chakan is a Greenfield facility which will lower carbon

dioxide emissions by 3,500 tonnes at full volume. The plant will have an

initial capacity of producing three lakh vehicles per annum and has been built

in just 22 months.”29

“Dr. Pawan Goenka, President – Automotive Sector, M&M

said that the plant will see a total investment of Rs 5000 crore, half of which

has already been made while the remaining will be invested over the next 18

months. The plant will produce M&M’s to-be-launched world SUV (which

will roll out next year) along with a new mini truck, the 0.75 metric ton

Maximo and the recently launched Mahindra Navistar trucks range”.

Automobile Market in Pune:

The India automobile market in Pune has grown tremendously

in the last few years. All kinds of automobiles such as cars, pickup trucks and

tractors, have witnessed an increase in sales. But the luxury car segment has

registered the highest growth in Pune’s automobile market.

The various reasons for the growth of the Indian automobile

market in Pune are enlisted as follows:

40

The city of Pune has young population which has high disposable

incomes that are generally used for buying cars ranging across all segments.

Many automobile manufacturers and financial institutions have

launched various attractive schemes that offer easy loans to buy

automobiles. This boosted the automobile market in Pune to a large extent.

Many spare parts shops and service centers can be found in Pune.

They have made it easy for Car-owners to get their automobiles repaired.

This too has led to the rise in the sale of automobiles in Pune. As after sales

service issue is of prime importance in automobile marketing, all the

automobile dealers have started well equipped service stations.

The Indian automobile market in Pune has registered growth

to an extent that many car manufacturers have set up manufacturing and

research units in Pune itself. The automobile market in Pune has not only

enhanced the national car market but also strengthened the economy of the

country as a whole. The following table is self-explanatory, which clears the

increased numbers of vehicles in Pune as on 31st

March 2010:

41

TABLE NO. 1.8

Number of vehicles used in Pune as on 31st

March 2010

Sr. No. Category No. of

Vehicles

Diesel used

No. of Vehicles

Petrol used

No. of Vehicles

fitted with LPG

retorfitment

No .of

Vehicles using

CNG Gas

Others Total

(1) (2) (3) (4) (5) (6) (7) (8)

1

2

3

4

5

6

7 (A)

7 (B)

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Motor Cycles

Scooters

Mopeds

Total – Two Wheelers

Cars

Jeeps

Station Wagons

Taxi Meter fitted

Taxi Tourist Cabs

Auto – Rickshaws

Stage Carriage

Contract Carriage

School Buses

Private Service Vehicles

Ambulance

Arti./Multi. Vehicles

Trucks & Lorries

Tankers

Delivery van four Wheelers

Delivery van Three

Wheelers

Tractors

Trailers

Others

497

0

0

497

63387

33337

950

0

5284

9112

5254

5866

441

1380

343

53

31068

4011

21652

9151

17234

0

3922

914903

308733

194452

1418088

168049

6190

0

0

9047

41648

0

0

0

0

748

0

0

0

0

15374

0

0

0

0

0

0

0

14661

0

0

0

0

10712

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

189

0

0

0

0

59

0

0

0

0

0

0

0

0

0

256

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

9831

0

915400

308733

194452

1418585

246286

39527

950

0

14331

61531

5254

5866

441

1380

1091

53

31068

4011

21652

24781

17234

9831

3922

Total 212942 1659144 25373 504 9831 1907794

(Source: Motor Transport Statistics of Maharashtra 2009-2010, pp 68)

Automobile Industry in Aurangabad city:

Aurangabad is worldwide famous historical place and major

industrial city in Maharashtra. It is a tourist hub surrounded by many

historical places like Ellora and Ajanta Caves, Daulatabad Fort, Bibi Ka

Makbara, Aurangabad Caves etc. Now it has been declared as Tourist Capital

of Maharashtra. The city is one of the fastest growing cities in Asia.

Aurangabad has transformed into a major education centre due to its rapid

42

industrial growth and proximity to Mumbai and Pune. The city is also

transforming into major technological and management study hub with many

engineering and management institutes.

The city is a major silk and cotton textile production centre. A

fine blend of silk with locally grown cotton is developed as Hamroo Textile.

Paithani Silk Saris are also made in Aurangabad. After 1960, Maharashtra

Industrial Development Corporation (MIDC) started setting up industrial

estates. Aurangabad is now classic example of efforts of state government

towards balanced industrialization of state. Many renowned Indian and

MNCs have established themselves in the Industrial Estate of Aurangabad.

Skoda Auto India Private Ltd. has its manufacturing plant located

at Shendra on the outskirts of Aurangabad which has an annual capacity of

40,000 vehicles. This Skoda Plant is also shared by Audi India to manufacture

Audi A-4 and Audi A-6 models. Even Volkswagen Company has started its

assembly lines in the premises of Skoda.

Bajaj Auto India is a major Indian vehicle manufacturing industry

is located at Waluj MIDC near Aurangabad. Its product range encompasses

scooterettes, scooters, motor cycles and auto rickshaws. Aurangabad, being

one of the fastest developing cities in Maharashtra it has shown its potential

in the automobile marketing business too. The Table No. 1.9 will throw more

light on the above discussion:

43

TABLE NO. 1.9

Number of Vehicles used in Aurangabad as on 31st

March 2010

Sr.

No.

Category No. of

Vehicles

Diesel

used

No. of

Vehicles

Petrol used

No. of

Vehicles

fitted with

LPG

retorfitment

No .of

Vehicl

es

using

CNG

Gas

Others Total

(1) (2) (3) (4) (5) (6) (7) (8)

1

2

3

4

5

6

7

(A)

7

(B)

8

9

10

11

12

13

14

15

16

17

18

19

20

21

Motor Cycles

Scooters

Mopeds

Total – Two Wheelers

Cars

Jeeps

Station Wagons

Taxi Meter fitted

Taxi Tourist Cabs

Auto – Rickshaws

Stage Carriage

Contract Carriage

School Buses

Private Service Vehicles

Ambulance

Arti./Multi. Vehicles

Trucks & Lorries

Tankers

Delivery van four

Wheelers

Delivery van Three

Wheelers

Tractors

Trailers

Others

80

0

0

80

7822

16578

623

0

1964

2063

4591

563

448

582

271

0

8048

2222

10971

12035

15237

0

256

331460

65773

46671

443904

20871

0

0

0

122

22296

0

0

0

0

0

0

0

0

0

251

0

0

0

0

0

0

0

1043

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

10186

0

331540

65773

46671

443984

29736

16578

623

0

2086

24359

4591

563

448

582

271

0

8048

2222

10971

12286

15237

10186

256

Total 84354 487444 1043 0 10186 583027

(Source: Motor Transport Statistics of Maharashtra 2009-2010 pp. 83)

44

Factors determining demands in Automobile Industry:

The significant factors which determine the demand for this

industry include vehicle prices. These prices are determined by

manufacturing cost, wages, distribution cost, Govt. taxes.etc. The exchange

rates, the running cost of vehicle (mainly the price of petrol and diesel),

income, interest rates and product innovation also determines the prices of

the vehicles. The following discussion will clarify the significance of these

factors:

Exchange Rates: Movement in the value of Rupee determines the

attractiveness of Indian products overseas and the price of import for

domestic consumption. In the short run, market determined exchange rate

are highly volatile in response to monetary policy, political events and change

in expectation. But over the longer run, exchange rates are determined

primarily by the relative prices of goods in the country. An important

implication is the purchasing power parity which has a direct impact on

automobile sector in general and imported cars in particular.

Affordability: Movement in income and interest rates determine the

affordability of new motor vehicles. Allowing unrestricted FDI led to increase

in competition in the domestic market; hence we are witnessing the car

markets making better vehicles available at affordable prices. The best

example is Tata motors; offering a small car Nano at just Rs one lakh. In the

car market Tata Motors is the pioneer to bring this car and now there are

45

many car manufacturing companies are following Tata and are trying to offer

a car at affordable price to the customers.

Product Innovation: Product innovation is a need of the hour and is

applicable to all sectors of marketing and automobile sector is not exception

to it. Product Innovation is an important determinant as it allows better

models to be available each year and also encourages manufacturing of

environmental friendly cars. With the growing awareness on global warming,

pollution, and other environmental issues: the manufacturers of the

automobiles have realized that innovate or die is a situation.

Demographics: It is evident that high population of India has been

one of the major reasons for large size of automobile industry in India.

Factors that may be augment demand include rising population and an

increasing proportion of young population and an increasing proportion of

young persons in the population that will be more inclined to use and replace

cars. Also, increase in people with lesser dependency on traditional single

family income structure is likely to add value to vehicle demand in coming

times.

Infrastructure: Longer-term determinants of demand include

development in India’s infrastructure for this the Government of India is

trying its level best by diverting funds for infrastructural development

through its five year plans. India’s banking giant State Bank of India and

Australia’s Macquarie Group has launched an infrastructure fund to rise up to

USD 3 billion for infrastructure improvement. India needs about $ 500 billion

46

to repair its infrastructure such as ports, roads, and power units. These

investments have been made with an aim to generate long-term cash flow

for automobile, power, and telecom industries.

Price of Petrol: Fluctuation in oil prices also has an impact on

demand for large cars in India. During periods of high fuel cost as

experienced in 2007 and first-half of 2008, demand for large cars declined in

favor of smaller, more fuel efficient vehicles. The changing patterns in

customer preferences for smaller more fuel efficient vehicles led to the

launch of Tata Motor’s Nano – one of the world’s smallest and cheapest cars.

Taking into consideration the need of the automobile industry the

Government of India has formed the National Automotive Testing and R & D

Infrastructure Project (NATRIP) under the Department of Heavy Industry,

which till date is the largest and one of the most significant initiatives in the

automotive sector. It is fuelled with an investment of Rs. 17.18 billion (USD

380 million) with which NATRIP will create global competencies in product

development, validation and hologation in the principal automotive hubs in

India through seven world class centers, spread across three automotive

hubs located in the North, South and West of India. NATRIP has also formed

the International Centre for Automotive Technology (ICAT) located at

Manesar near Delhi, which is an independent centre providing a wide range

of technical services to the automotive industry in India. ICAT is soon to be

recognized as one of the Tyre approval agencies of India with its facilities

being expanded with an investment of Rs. 4.4. Billion (USD 100 million).

47

Once completed, ICAT will offer world class testing, R & D

facilities and engineering services to the global automotive industry while

nurturing close affiliations and benchmarking with the best in class

institutions worldwide.

Today in the era of globalization, it is observed that emerging

markets are changing the auto development models of manufacturing and

adopting to the respective local markets, their demand and also according to

opportunities that require and provide for the change. As soon as the ICAT

starts functioning in swing it will result in manufacturing quality cars with

high technology and will support the car market in the coming times.

Future prospects of Automotive Market in India:

In 2010, India is on the Sixth position in automotive market

worldwide as it exceeded the U.K., Italy and France in sales. It is expected to

be one of the three largest automotive markets globally by 2020. “India has

quickly become one of the largest and fastest- growing automotive markets

in the world”, said John Humphrey, Senior Vice President of global

automotive operations at J.D. Power and Associates. “This momentum has

bee driven by a more open and market-driven economy, an empowered and

less risk-averse work force, a more consumer driven culture and an emphasis

on small car production” .

“Over 7,00,000 Light motor vehicles (passenger cars and light

commercial vehicles) were sold in India in the year 2000. Just ten years later,

more than 2.7 million light vehicles were sold in the country with a

48

population of nearly 1.2 billion in 2010. Over the past 20 years India has seen

a much more consumer oriented culture and an increase in economic activity

and the country should reach 11 million light vehicles sales by 2020. This

would place India third behind China with expected light-vehicle sales

reaching 35 million in 2020 and the United States with an expected 17.4

million sales”30 .

The government in India continues to pursue policies in

support of development of the country’s automotive industry such as

positioning India as a global hub for small passenger car production.

Additional, a reduction in sales tax on small cars (less than 4,000 millimeter in

length and with engine displacement of 1.2 liters or less) and financial

incentives of automakers to build and export vehicles in India has led to many

automakers moving their small car production to India or designing cars to fit

the needs of the Indian market.

The auto market in India will not be able to realize its full

potential until the country is able to overcome continual international trade

deficits; chronic government budget deficits; and an underdeveloped power

generation and distribution infrastructure. In addition, the profits for India as

the third largest market are not likely to match those of China and United

States.

The average price for all passenger vehicles sold in India in

2010 was about $ 10,000, whereas in China it was $ 17,500 and $ 28m000 in

the United States. The emphasis on small vehicles has helped sales grow

49

quickly but it means earnings will depend on small car segments where the

profit margin is historically smaller.

Review of Literature:

To get more in depth view regarding the marketing practices

adopted by the automobile companies in Indian market, the researcher has

gone through various research articles, research papers and the views

written and published by the experts in various National and International

journals and magazines are reviewed. Some of the milestone studies

conducted in India and abroad are quoted below:

According to Mr. A.S. Gill, President, Webasto Matherson Sunfeafa

Ltd. And Mr. Sudhir K. Jain31, Faculty, Department of Management Studies,

I.T.T., New Delhi in their article “Consumer Purchase Process for Passenger

Cars in India” say that “The global market has witnessed enormous changes

in automotive marketing. The cars have undergone tremendous change over

a period of past twenty years. The automotive products have become

technology intensive and customer oriented. The markets have witnessed

change from a buyers’ market to sellers’ market (governed by delegating the

customer). Marketing researchers have kept pace with the changing scenario

and enormous work has been undertaken by researchers in form of

continuous research into studying the consumer buying behavior for various

product categories.

50

In 1996, the automobile industry celebrated its 100th

anniversary. Over these 100 years, annual production developed from just a

few vehicles to millions of vehicles. In this context they further say that

“Tremendous developments took place in all areas of automobile industry

e.g. performance, fuel consumption, safety and comfort and information for

the driver. Fuel consumption has been reduced without affecting the

performance or even improving it, and prices have fallen in relation to the

features and quality of the vehicles. We already see the first vehicle that can

exchange information via modern communication systems and the Internet

taking the strain off the driver in a number of ways and situations. Routes

can be optimized taking into account the traffic situations and garages can be

notified for any preventive maintenance work without the vehicle owner

having to keep track of such maintenance records”

They further write that “Consumers have been continuously

upgrading themselves from one type of vehicle to another, from two

wheelers to four wheelers, from low end (entry level) brand to higher-end

brand. This phenomena has significance in terms of consumers desire to

belong/ upgrade. Ever increasing market offerings and inducing purchase

interest in brands motivate the consumers to upgrade. Depending on

disposable income, finance facility, interest rate and other market offerings,

consumer tends to make decisions to purchase new or used vehicles.”

In the article “Car Supermarket in India – One Stop Shop for All Brands

32” written by Mr. Shailendra Desai, Faculty Member IBS Bangalore and Mr.

51

Raman Kumar Sharma, I.B.S. Bangalore suggested that “The concept of multi-

brand dealership for cars may be relatively new to India and face some

constrains in adopting to the Indian market. Notwithstanding this, it does

promise a number of benefits to both customers as well as dealers.” By

proposing multi brand car dealerships, the former Managing Director of

Maruti Suzuki, Jagdish Khattar, has already given an indication that we may

see car supermarket in India very soon. The article throw light on the

distribution strategy which can be adopted by the car manufacturers in India

which will be an effective and cost saving one. Emphasis is also given on the

functioning of as how this super market will work in Indian contest.

Tata Motors plan to increase the production of their world renowned

small Car NANO. NANO is getting well response from the customers. In

March 2011, 8700 NANO cars were sold in the market. Vice President R.

Ramkrishanan33

says that their new project at Sanand (Gujrath) will be ready

to manufacture 20000 cars per month within coming days. The company is

planning to increase the capacity of this plant to manufacture 5 lakhs cars per

year. The first car buyers are showing their interest in NANO and are very

eager to know detail information about the car.

PTI 34Faced with dwindling sales, Tata Motors recently announced a

four-year or 60000 kilometer manufacturing warranty on its small car NANO

in a bid to woo more customers. Bettering its previous warranty of 18 –

months or 24000 km. whichever earlier, announced in March last year, the

52

company announced this offer at no extra cost. Besides being applicable on

new deliveries, the warranty is also being extended to all existing owners of

the car. The strange and surprising announcement by Tata Motors that all the

new Nano customers will have an option to avail a “comprehensive

maintenance contract” at Rs 99 per month. This is somehow surprising. Tata

Motors claims that “Customer satisfaction studies with current Tata Nano

owners indicate that over 80 % are satisfied or very satisfied with the car,

because of it being small yet spacious, its performance, maneuverability,

durability, mileage and safety.

Mercedes – Benz India is seriously considering expanding its tie-ups

with government – run polytechnics across the country. According to

Wilfried Aulbur, M.D. & C.E.O, Mercedes Benz India35, “There is a dearth of

skilled manpower in the after-sales-services segment and customers have a

certain level of expectation from the company when they purchase luxury

cars.” Mercedes – Benz India has developed the curricula for an advanced

diploma in automotive mechatronics which it offers in association with the

state government polytechnics in Pune and Aurangabad. In this context

Aulbur says “To cater to the after-sales-services requirements of the

technologically advanced vehicles, well-versed technical man power is

needed by all luxury brands across the country.”

A recent study by AT Kearney projected that the Indian luxury

market is set up to triple from current levels to $ 14.72 billion by 2015.

According to SIAM figures, even though the luxury car segment accounts for

53

just around 10 % of the Indian automotive market, it grew 33.56 % during

April – September 2010.

Albur further says, “With the company having sold over 200

cars in a small town such as Aurangabad alone, the growing acceptance of

luxury products and consumption has increased. The market has the

potential and consumption levels have been growing beyond that in Metros.

For this, a large number of skilled manpower would be required to take care

of after-sales-service.

JD power36 conducted a study on the passenger car firms between

March 2006 and May 2006, based on responses from 4,561 owners of 37

different vehicles/ models of passenger cars. The six factors contributing to

the overall sales satisfaction index were delivery process, delivery timing,

sales person, dealer facility, paper work and deal. Customers were asked if

they were inclined to repurchase the same company’s make when the time

came for replacement. As per the findings, in terms of sales satisfaction,

Maruti Suzuki topped in SSI for the third consecutive years, with 735 points

on the 1000 points scale, against an industry average of 772. The customers

responded Skoda Auto on second number. Hyundai and Honda were at third

and fourth position respectively. Mahindra, Chevrolet, Toyota, Ford ranked

in the same order. It was very strange to learn from the SSI study that

customers’ response to Tata was on back foot.

Jagdish Khattar 37 says, Considering the future scenario, now it

is the turn of manufacturers and channel partners to change the manner in

54

which cars are sold in India. Former Managing Director of Maruti Suzuki,

Jagdish Khattar, is venturing into multibrand car dealerships. Carnation Auto,

the brain child of Khattar, has already been providing complete car care

solutions for almost all brands of cars, ranging from quick servicing,

mechanical repairs, body repairs, accessories, insurance, car exchange and

even service at the customers doorstep, through a chain of workshops on

wheels. He is now planning to venture out into a car retailing. Carnation

does not want to be confined to one brand or one manufacturer. It wants to

offer a host of brands from all the major car manufacturers under one roof.

From the customers’ perspective, this move provides great additional value.

A customer can not only test drive cars of different companies at the same

location, but can also expect unbiased advice from the sales persons. More

than this, when different brands are competing on the same shelf, customers

need not worry about the best deal in terms of price and other benefits. But

the flip side is, a sales person may be expected to have in – depth knowledge

of the features of five or six car brands. The second problem is, overcoming

the temptation of pushing a particular model just because the manufacturer

offers a higher incentive.

Though the concept of car supermarket is new to India, most

of the developed countries already have supermarkets for cars. In developed

countries, these formats deal with both new and used cars and often with

light commercial vehicles also.

55

But the question arises; will this format of retailing cars be successful

in India? There is high uncertainty associated with this as the market

conditions in India are totally different from that of developed countries.

Mr. Saikat Banrjee 38 in his article “Passengers car market of China: A

Study on current scenario and future trends” has already pointed out the

status of passenger car market of china. He emphasize that china in the

global context is a highly considered market to get into – due to rising per

capita income and burgeoning middle class, it stimulate opportunity in

business worldwide. Furthermore; he added that growing of disposable

income and changing trends towards materialistic life, there is a vast scope

for luxury goods. And car is the best example of it. He also added that

government has designed their policy considering the expansion of

industrialization, where every scope is given to business.

Gone are the days of communist manifesto, the customers of

China are welcome to market economy. As the Psychology of China people is

changing, there is no to boo far taking loan, which was the case prior to 2 to 3

decade. This has given momentum to car sales. Not only the new car market

is booming, the pre-owned car segment is also growing. In this article the

author has written that how environment factor, pollution norms are strictly

observe in the country. The important thing discussed in the article is that

the China market is open for foreign companies on with some conditions.

The entry strategy is via import route or it is through local manufacturer or

through joint venture.

56

The Indian automobile industry is poised for a major boom with the

Govt. presenting the automotive mission which was planned to be achieved

by 2006 to 2016. This plan was prepared with a special objective to make

India a global Auto hub in the coming years particularly in small car segment.

In India this segment is versatile and is in demand. It has 5 to 6 major

players who are offering a car for Rs. 1 lakh plus so as to grab the opportunity

in this market. The Tata’s have projected that they will have the capacity to

make 1 million Small Cars by 2012. To compete with Tata the another

renowned car company, Suzuki, is also on the way to introduce small car. It

will introduce its 660 cc car in the market and will try to defeat Tata. This will

be replica of its Car model introduced in Japan. The author has daily

posturized the small car segment and has compared the status with China

market. The foreign players are also emerging in small car – manufacture

sector and recent trends are explained in the article. It is also made clear

that considering the potential of automobile sector in India, there is a

projected investment of Rs. 30,000 Crore by 2010, but now the budget has

been increased to Rs. 60,000 Crore. This investment is not projected by

Indian manufacturers but some other multinationals are also involved. This

article also expose to the ideas and strategy which is adopted by several

automobile company such as Nissan, Bajaj, Daimler Chrysler, M & M, Ashok

Leyland, Honda Motors, General Motors, Tata and Toyota etc 39.

57

The development of any country is based on the infrastructure and its

availability. India is a country of villages, with 6 lakh plus villages. Though

India is planning to become super power by 2020, it lack behind in

development of infrastructure.

The enormous increase in the number of vehicles and increasing trade

and commerce activities in the state of Maharashtra, are continuously adding

pleasure on the road utilities. However there is no major improvement in

major road conditions.

According to the government data, the length of all roads in

the State is increased by 32.57% from 1,72,965 Kms. To 2,29,302 Kms. during

the period from 1990 – 1995 and 2000 – 2005. On the contrary, the number

of vehicles increased by 303.06 % from 26,40,585 to 1,06,43,400 during 1990

to 2005 40. It is to be noted that the length of roads is not increased in

proportion to the increased number of vehicles. It may cause to traffic

congestion and pollution problems in coming years. Particularly in urban

area, these problems may overcome seriously.

According to Praneti Shah and Charmi Shah,41

in their article

“Consumer perception towards Tata Nano car as a private and public utility

vehicle,” the author has mentioned that with the emerge of Tata’s Nano, it

has become a milestone in Indian automobile business. The article is a

research based study conducted in Ahmedabad City of Gujarat, India. In this

article the author has pointed out that Nano car is perceived as a private as

well as public car. The customer of middle income group considers Nano as a

58

car for their self esteem, and on the other hand Nano is source of brand and

better in terms of business. In all the target market of this company, the

middle class customer of India is focused. In this study, a convenient sample

method was adopted. The major finding of the study was that by the entry of

Nano car, second hand car market has been declined. In general there is a

comparison between two-wheeler and Nano. In the study the author depicts

that by the entry of Nano car in a small car segment a 15 % fall has been

occurred in price of used car and there is a 30 % average fall in sales of used

car. This article doesn’t end with the features of Nano but have also given

valuable suggestions so as to hike the car market.

Now – a – days, automobile industry is facing the problems in

attaining the right balance between the survival of their business and the

protection of natural environment. In this regard Mr. Anurag Singh and Mr.

Ranjit Singh42

of Assam University in their article “ Green Marketing –

Developments in the Indian Automobile Sector” express that “Automobile

companies have been partly blamed for the rising global temperatures,

increasing fuel costs, and changing climate patterns.” But they admire the

efforts taken by Automobile industry. The Indian Automobile sector has

played the role of a responsible corporate citizen and initiated green

marketing activities to save the environment and to foster sustainable

development. Apart from promoting awareness amongst customers about

their eco-friendly products, auto manufacturers are also taking right steps by

using biodegradable raw materials in their production, developing hybrid,

59

hydrogen and electric drive systems, and complying with stringent

government regulations regarding the environment.

In the article written by Abhimanyu Ghosh 43

, “Market leaders”, The

Indian two wheeler industries has always hogged the limelight with its

superlative performance. Being the global leader in product and process

technologies in the manufacturing sector, the industry has also been

recognized as one of the most important drivers of economic growth. In fact,

the industry has shown a strong volume growth over the last two years. It has

shown by 25% in 2009-10 and 27% in 2010-2011 to reach 13.3 million units.

According to ICRA (an associate of Moody’s Investors Service), “this

remarkable double-digit growth has been driven by multiple factors including

pent-up demand of the 2007-08 and 2008-09 period when the industry

volumes were essentially flat, besides various underlying factors including

India’s rising per capita GDP, increasing rural demand, growing urbanization,

swelling replacement demand, increasing proportion of cash sales and the

less measurable metric of improved consumer sentiment.” This article is

giving good information but it is based on the two wheeler automobiles.

A study was conducted in the year 2004 to ascertain the need

segmentation in the car market in India. Traditional brand research studies

involved directly questioning customers about their purchase reason.

However, the study by TNS, a leading market research firm in India utilized a

standard psychological framework to uncover the implicit motives that drove

brand selection of car buyers. The survey found that emotive needs such as

60

potency (power), prestige, and status account for over 50 % of the car buyers

in India. Contrary to the belief that prestige and status needs were pre-

dominantly among buyers of higher-end vehicles, the study revealed that

such needs existed across vehicle segments.

The study identified the following six need based segments in the Indian

automotive market:

Potency buyers were motivated by a need to attract opposite sex and

feel powerful. A brand image of ‘trendy and innovative’ appealed to this

group.

Utility buyers sought a need for basic transportation and care for

family. Value for money and cost of ownership were the benefits that these

buyers associated with.

Prestige buyers were motivated by a need for prestige, indulge self,

and exclusivity. They were least price sensitive and desirous of latest/

futuristic features in cars.

Adventure buyers sought fun adventure while buying a car, and

wanted to increase their popularity through the car ownership. SUV found

preference with these buyers who related to their cars as ‘lover’.

Status buyers wanted to show-off success and attract attention.

Superior craftsmanship and best technology were the advertising imagery

that clicked well with them.

61

Liberation was the smallest of the six need segments—these buyers

sought increased freedom and latest technology from their cars. Safety

consciousness was relatively higher among them.

-------------------------------------------------------------------------------------------------------

62

References:

1) www.vpmyhane.org/bedekar/india.htm

2) Mr Abhimanyu Ghose, ‘Market leaders, Business and Marketing”,Vol

VI,Issue 11- 17 June-30 June 11, pp 34)

3) www.bmwgroup.com/..bmw-investorpresentation.

4) J. Jahangir, India: An emerging market, “Third concept”, January

2004, Vol. 17, No. 203, PP 34.

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9) ibid

10) ibid

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63

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Maharashtra State Board of Secondary and Higher Secondary

Education , Pune, 1991,pp 203.

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Richard D Irwin inc, Homewood, Illinois,1971, pp 3.

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and Challenges, “The marketing Review” 2005,5,101-109 pp

101,102,103, Endorsed by Academy of marketing, printed in U.K.

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New York: Harper and Row, 1973,pp 64, 65.

21) http://wikipedia.org/wiki/automotive industry in india

22) http://WWW.economywatch.com/world-industries/automobiles

23) http://en.wikipedia.org/wiki/automobile

24) ibid

64

25) http://wikipedia.org/wiki/automotive industry in india

26) A.S.Gill and Sudhir K. Jain, Consumer purchase process for passenger

cars in India, “Journal of Marketing & Communication” Sept-Dec

2005, Vol. 1, Issue 2, pp 69

27) Abhimanyu Ghosh, Market leaders in the Automobile category,

“Business & Marketing” 17 June -30 June 2011, Vol VI, issue 11 pp 35)

28) Future scenario of automobile sector, report of Society of Indian

Automobile Manufacturers, (2010) pp 37.

29) “Car India”, Vol 5,Issue 009, April 2010, pp 20

30) India Automotive 2020: The next Giant from Asia, J.D. Power and

Associates http://www.jdpower.com)

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Passenger Cars in India, “Journal of marketing and communication,”

Sept-Dec, 2005, Vol 1, Issue 2, pp 12

32) Mr. Shailendra Desai, and Mr. Raman Kumar Sharma, Car

Supermarket in India – One Stop Shop for All Brands, “Marketing

Mastermind”, Nov 2010, Vol 1,Issue 2, pp 27.

33) Tata’s plan to increase the production of Nano, “Daily Lokmat” dated

11/04/2011.

34) PTI news, published in “The Financial Express “ dated 10/12/2010.

35) Wilfried Aulbur, M.D. & C.E.O, Mercedes Benz India, “The Financial

Express” – 10/12/2010

36) J.D. Power, IB Power Asia Pacific India Sales Satisfaction Index (SSI)

65

37) Mr. Shailendra Desai, and Mr. Raman Kumar Sharma, Car

Supermarket in India – One Stop Shop for All Brands, “Marketing

Mastermind”, Nov 2010, Vol 1,Issue 2, pp 27.

38) Saikat Banarjee, Passenger car market of China: A study on current

scenario and future trends, “Global Vista, World trade trends and

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39) Auto Industry: The Small Car Sega Maharashtra Economic Develop

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41) Praneti Shah and Charmi Shah, Consumer perception towards Tata

Nano car as a private and public utility vehicle, “SIAM journal of

management and research”, Vol 3, No.1, May- October 2010.

42) Mr. Anurag Singh and Mr. Rajit Singh, Green Marekting –

Developments in the Indian Automobile Sector, “Marketing

Mastermind”, November 2010, Vol 1,Issue 2, pp 27.

43) Mr Abhimanyu Ghosh, Market leaders, “Business and Marketing”,Vol

VI,Issue 11- 17 June-30 June,2011)

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