A project report on analysis of the pre owned car market in hublli of true value

Analysis of the Pre-owned car market in Hubli for Bellad Motor’s Maruti True Value

Section 1

Executive Summary

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Executive summary

Indian auto market is booming the auto manufacturers from all over the world are

attracted by indian market for both,manufacturing and sell cars to indian and export

market.

Making the right choice while buying a used car is very important. Maruti Suzuki,

India's favorite car company, understands you concerns regarding quality,

documentation and value for money. That is why we ensure that the used car you buy

from us has never had an accident and is free from defects or legal hassles. What you

get is a car that is optimized for trouble-free performance and therefore needs

minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's

direct involvement, which includes thorough checks, a complete reconditioning at

state-of-the-art Maruti Suzuki workshops and certification by a Maruti Suzuki

Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we

give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified

used car and make a wise investment.

Title of the project

"Analysis of the Pre-owned car market in Hubli for Bellad Motor’s Maruti True

Value"

Problem definition: Maruti has come out with a concept of creating a new market for Pre Owned

(second hand) cars which it calls ‘True Value’. Therefore Bellad Motors as a

franchisee wants to know the opportunity it has in the market (Hubli- Dharwad)

against the New Cars, and what strategies can be applied to attract the customers

effectively.



NEED FOR THE STUDY:

As there are petty dealers in the ‘Pre Owned’ Car market in Hubli- Dharwad it

is important to learn about the ‘Target Audience’ and the market.

To know how has Maruti handled the ‘Pre Owned’ market until

now?

To know what the market share is?

To understand and work on the gaps, if any.

Objective:

To know and study/analyses the effectiveness of second hand car sales by Maruti

Suzuki’s ‘True Value’ concept through it’s dealer Bellad Motors in Hubli city.

Sub Objectives-

– To know the nature of the market for used cars in the Twin Cities.

– To enumerate the various players for used cars in the Twin cities.

– To enumerate the various reasons for customers opting a used car.

– To find out the awareness/ knowledge level of customers on the

concept of ‘True Value’ offered by Bellad Motors.

– To access the impact of promotional activities on the sale of used cars.

Methodology:

Research Approach

Exploratory research

Exploratory research is concerned with discovering the general nature of the

problem and the variable that relate to it. Exploratory research is characterized by

high degree of feasibility and it tends to rely on secondary data.

Data collection approach

To carry out this research, primary data and secondary are collected.

Primary data (survey data)



Systematic collection of information directly from respondents. This data is collected

for the descriptive research.

The survey data collected during the study includes the data collected through

questionnaire and face-to-face interview with customer to know about the consumer

behavior.

Secondary data

The first step in data collection approach is to look for secondary data. Usually it is

the data developed for some purpose other than for helping to solve the problem at

hand. Secondary data are collected through various magazines, internal experts,

website, directories, and external experts.

Measurement Technique

Questionnaire:-

For the purpose of this project self-administered questionnaire to potential customers

and for standard commercial business enterprises located in Hubli Dharwad city.

Analysis of DATA

Data are useful only after analysis. Data analysis involves converting the series of

data recorded observations into descriptive statements.

The survey will carried out in Hubli-Dharwad city, and the sample size was 100.The

information gathered is transferred to a SPSS coding sheet, interpretation.



Findings

Professionals:

36 % of Respondents are of age 25-35, 37 % of Respondents are of age 35-45,

23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater

than 55

88 % of Respondents are male, 12 % of Respondents are Female

42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 % of

Respondents are under income Rs.1,50,000-Rs.2,00,000

81 % of Respondents are Married

31 % of Respondents have one child and 38 % of Respondents have two

children

68 % of Respondents don’t have their own car

Out of remaining 32% of sample size 54 % of Respondents have Pre owned

cars

54 % of Respondents came to know about uncertified dealers through

Advertisements and33 % of Respondents came to know about uncertified

dealers through Friends & Neighbours

Out of 68% of sampling who don’t own car, 31 % of Respondents wants to go

for new car and 63 % of Respondents wants to buy pre owned car and 63%

would buy it from uncertified dealers.

50 % of Respondents considers budget while buying pre-owned car and 40 %

of Respondents considers milage while buying pre-owned car,

40 % of Respondents heard about “Maruti True Value”

Remaining 60% heard it from Advertisements, friends/neighbours

58% say they would not buy from ‘True Value’



Sample of Students:

The sample is non-localities

68% of them are staying here since more than 2 yrs.

56% get more than Rs 10,000/- as their monthly pocket money.

60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler.

80% out of the 40% owning a 4 wheeler, own a ‘Pre-Owned Car’.

70% have purchased it locally.

55% of the sample is interested in buying a car (pre- owned) for time being.

78% said they would buy from an Un-certified Dealer.

Expected price range is- 83% said Rs 50,000- 75,000

53% are aware of the concept of Maruti’s ‘True Value’.

42% have heard it from news papers, and 0% from melas.

71% say they would not buy from Maruti ‘True Value’.

Sample of Dealers :

• 20 % are established in the market since 5-10 years and 50 % are since from 10-

15 years

• 50% use middlemen for sales.

• Promotion activities-

60%- use news papers

40% - pamphlets

25%- Melas

• 70% consider festive season as peak point for sales.

• The average sales per year is- 60% said- 25-125 cars



• 30% said- 425- 525 cars

• 67% say customers look for budget

• 68% say customers look for age of the car

• 90% say customers look for mileage

Recommendations and Suggestions -

For the Professionals:

Target Segment - the target customers whom I suggest Bellad Motors should

concentrate is the advocates, lecturers and petty business men, because they are the

respondents who are keen in buying pre owned cars.

The target can also be segmented age wise, 25-45 are the most interested

segment in buying a pre owned car.

Bellad Motors should make an effort to advertise and promote ‘True Value’

through various mediums like news papers, melas and pamphlets.

Mostly the age group of 25-35 is aware of the Maruti’s True Value concept.

Family size influences in buying a car is proved through the Chi Square Test,

therefore respondents of the lower income category can also be looked at, for

the sales of the pre owned cars.

Out of respondents who own pre owned cars, 98% bought it from a Un-

Certified dealer, this shows that people do not prefer buying pre- owned cars from

certified dealers, therefore Maruti True Value should make an effort to change this

mind set of the people in Dharwad city.

When respondents were asked what have they heard of Maruti True Value, the

responses were mostly negative. ‘Price’ was the major issue they have with ‘True

Value’.

‘Pre-Owned’ is more of a sophisticated word for the localities; the other petty

dealers have an upper hand on this front, as they use a much simpler and an

easily understood word ‘second hand’. Therefore I suggest that Bellad considers this

point.



The Bellad showroom is what comes to peoples mind when asked if they have

heard of Maruti ‘True Value’, it is because of the easy view from the highway.

For the students: Most of the students want to buy a pre owned car from an un certified dealer,

because of the price factor, therefore when targeting the students category lowering

the price should be considered

The expected price of the pre owned cars is from Rs 50,000- 75,000.

The expected age of the car is mostly 3-5 yrs, which the company can consider

these aspects when targeting the students.

More than 50% of the students are not aware of the True Value concept, which

again calls for advertisements from Bellad Motors.

61% of the students get more than Rs 10,000 as their pocket money, this

signifies that it can be assumed the students are from well to do families and Bellad

Motors can use this as a advantage and try perusing them.

From the personal interaction with the students, the insights gained were, that

the students go to these second hand car melas, and 0% 0f them have known or heard

of True Value conducting melas, therefore I suggest that it be advertised properly.

The awareness can be spread by using banners and displayed it in front of the

college campus in the most attractive manner.



Industry profile



AUTOMOBILE INDUSTRY

In India there are 100 people per vehicle, while this figure is 82 in China. It is

expected that Indian automobile industry will achieve mass motorization status by

2014.

Industry Overview

Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the

Automobile Industry of India has come a long way. During its early stages the auto

industry was overlooked by the then Government and the policies were also not

favorable. The liberalization policy and various tax reliefs by the Govt. of India in

recent years has made remarkable impacts on Indian Automobile Industry. Indian auto

industry, which is currently growing at the pace of around 18 % per annum, has

become a hot destination for global auto players like Volvo, General Motors and

Ford.

A well developed transportation system plays a key role in the development of an

economy, and India is no exception to it. Today Indian automotive industry is fully

capable of producing various kinds of vehicles and can be divided into 03 broad

categories: Cars, two-wheelers and heavy vehicles.

Snippets

The first automobile in India rolled in 1897 in Bombay.

India is being recognized as potential emerging auto market.

Foreign players are adding to their investments in Indian auto industry.

Within two-wheelers, motorcycles contribute 80% of the segment size.

Unlike the USA, the Indian passenger vehicle market is dominated by cars

(79%).

Tata Motors dominates over 60% of the Indian commercial vehicle market.

2/3rd of auto component production is consumed directly by OEMs.

India is the largest three-wheeler market in the world.

India is the largest two-wheeler manufacturer in the world.

India is the second largest tractor manufacturer in the world.

India is the fifth largest commercial vehicle manufacturer in the world.

The number one global motorcycle manufacturer is in India.


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India is the fourth largest car market in Asia - recently crossed the 1 million

mark.

Segment Know-how

Among the two-wheeler segment, motorcycles have major share in the market. Hero

Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in

scooter and TVS makes 82% of the mopeds in the country.

40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of

the market share. Among the passenger transport, Bajaj is the leader by making 68%

of the three-wheelers.

Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in

passenger cars and is a complete monopoly in multi purpose vehicles. In utility

vehicles Mahindra holds 42% share.

In commercial vehicle, Tata Motors dominates the market with more than 60% share.

Tata Motors is also the world's fifth largest medium & heavy commercial vehicle

manufacturer.

Miscellaneous

Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of

the country by the second half of 2008. It would be set up by city-based Prajay

Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have

facilities for automobile financing institutions and insurance services to create a

complete range of services required for both auto companies and customers. It will

also have a multi-purpose convention centre for auto fairs and product launches.


http://www.surfindia.com/automobile/auto-companies.html


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http://www.surfindia.com/automobile/bajaj-auto-ltd.html

http://www.surfindia.com/automobile/tvs-motor.html

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INDIAN AUTOMOBILE HISTORY

During the 1920s, cars exhibited design refinements such as balloon tires, pressed-

steel wheels, and four-wheel brakes.

In Brief

The origin of automobile is not certain. In this section of automobile history, we will

only discuss about the phases of automobile in the development and modernization

process since the first car was shipped to India. We will start automotive history from

this point of time. The automobile industry has changed the way people live and

work. The earliest of modern cars was manufactured in the year 1895. Shortly the first

appearance of the car followed in India. As the century truned, three cars were

imported in Mumbai (India). Within decade there were total of 1025 cars in the city.

The dawn of automobile actually goes back to 4000 years when the first wheel was

used for transportation in India. In the beginning of 15th century Portuguese arrived in

China and the interaction of the two cultures led to a variety of new technologies,

including the creation of a wheel that turned under its own power. By 1600s small

steam-powered engine models was developed, but it took another century before a

full-sized engine-powered vehicle was created.

The actual horseless carriage was introduced in the year 1893 by brothers Charles and

Frank Duryea. It was the first internal-combustion motor car of America, and it was

followed by Henry Ford's first experimental car that same year. One of the highest-

rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a

quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an

aluminum body. It was usually driven by chauffeurs and emphasis was on comfort

and style rather than speed. During the 1920s, the cars exhibited design refinements

such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC

Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937

Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more

to the needs of families. In 1930s, vehicles were less boxy and more streamlined than

their predecessors.


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INDUSTRY INVESTMENT

According to Commerce Minister Kamal Nath, India is an attractive destination for

global auto giants like BMW, General Motors, Ford and Hyundai who were setting

base in India, despite the absence of specific trade agreements.

Current Scenario

On the cost front of Indian automobile industry, OEMs are eyeing India in a

big way, investing to source products and components at significant discounts

to home market.

On the revenue side, OEMs are active in the booming passenger car market in

India.

The Indian automobile industry crossed a landmark with total vehicle

production of 10 million units.

Car sales was 8,82,094 units against 8,20,179 units in 2004-05.

The two-wheeler market grew by 13.6 per cent with 70,56,317 units against

62,09,765 units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units

against 3,18,430 units in 2004-05.

Snippets

By 2010, India is expected to witness over Rs 30,000 crore of investment.

Maruti Udyog has set up the second car with an investment of Rs 6,500 crore.

Hyundai will bring in more than Rs 3,800 crore to India.

Tata Motors will be investing Rs 2,000 crore in its small car project.

General Motors will be investing Rs 100 crore and Ford about Rs 350 crore.

Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of

investment. India, sourcing base for global auto majors.

Passenger car and motorcycle segment is set to grow by 8-9%. The two-

wheeler segment will clock 11.5% rise by 2007.

Why India


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The economy of India is emerging. The following table shows the ranking of India in

the past four years.

Ran

k

2005 2004 2003 2002

1 China China China China

2 India Thailand Thailand Thailand

3 Thailand India USA USA

4 Vietnam Vietnam Vietnam Indonesia

5 USA USA India Vietnam

6 Russia Russia Indonesia India

7 Korea Indonesia Korea Korea

Twin Advantages:

Scaling costs

Optimizing resources

INDIAN AUTOMOBILE INDUSTRY GROWTH

The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9

per cent.

Facts & Figures

India, in auto sector, is turning to be a sourcing base for the global auto majors. The

passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming

couple of years, says the ICRA report. The industry is likely to maintain the growth

momentum picked up in 2002-03. The ICRA's analysis points on the auto sector

that the passenger car market in the country was inching towards cars with higher

displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday,

would witness intense competition as many SUVs had been competitively priced, the

report said.

Honda, Suzuki, General Motors and Hyundai, the global automakers had already

launched their premium SUVs in the market to broaden their portfolio and create



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product excitement in the segment estimated at about 10,000 units annually. Heavy

commercial vehicles market would rise at 5.5 per cent and sales of light buses and

trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a

growth at 4.6 per cent.

Indian Auto Market Growth for the year 2005-06

The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units

as against 78,97,629 units in 2004-05.

The automotive industry crossed a landmark with total vehicle production of

10 million units.

According to the Society of Indian Automobile Manufacturers (SIAM), car

sales was 8,82,094 units against 8,20,179 units in 2004-05.

The growth of domestic passenger car market was 7.5 per cent

Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05.

The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317

units against 62,09,765 units in 2004-05.

Motorcycles had the upward march, 17.1 per cent in domestic market touching

58,15,417 units against 49,64,753 units in 2004-05.

Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428

units in 2004-05.

Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units


Medium and heavy commercial vehicles managed a growth of 4.5 per cent

against 23 per cent growth in the year ended March 31, 2005.

Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units


Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862

units in 2004-05.

Auto Component Market




The Indian auto parts industry is significantly fragmented with a large number of

players having a turnover of less than US$10 million per year. The industry directly

employs about 2,50,000 people and has an annual turnover over US$ 56.3 billion.

Estimated market size - US$ 6.7 bn

Estimated market size by 2012 - US$ 17 bn

Projected CAGR - 15%

Market Advantage

Fast paced urbanization to rise from 28% to 40% by 2020.

Upward migration of household income levels.

Middle class expanding by 30-40 million every year.

Growing working population.

Vehicle Production in India

India is the 11th largest Passenger Cars producing countries in the world and 4th

largest in Heavy Trucks Indian Market Analysts are jubilant over the fact that India

has the fastest growing automobile industry (passenger cars segment) in the world

today. This is seen as the result of rapid increase of middle-class population in the

country combined with the government's pro-development policies. The findings of

International Organization of Motor Vehicle Manufacturers revealed that in India the

car production had grown to 30% in 2004, thus leading the table, Brazil came a

distant second with the increase of 17%.

Automobile Industry is the largest industry in India with an impressive growth in the

last two decades. The reason behind the growth was abolition of licensing in 1991 and

permitting automatic approval and successive liberalization of the sector. According

to estimation the compound annual growth rate (CAGR) of Indian Automobile sales

will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for

FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto

Companies along with the global giants have announced huge expansion plans.

Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata

Motors. Hyundai did well but the difference was nearly half of Tata Motors.

Production of 4-Wheelers










Types of Vehicle 2002-03 2003-04 2004-05 2005-06

Passenger Vehicles 557400 782550 960480 1045880

Utility Vehicles 114470 146330 182020 196380

Multipurpose Vehicles 51450 60670 67370 66665

Total 723320 989550 129870 1308925

ANALYSIS OF THE CAR MARKET IN INDIA

The automotive industry is one of the largest industries worldwide and in India as

well. The automotive sector drives upstream industries like steel, iron, aluminum,

rubber, plastics, glass and electronics, and downstream industries like advertising &

marketing, transport and insurance.

The automotive industry can be divided into five sectors:

Passenger Cars

Multi-Utility Vehicles (MUVs)

Two-Wheelers

Three-Wheelers

Commercial Vehicles-Light Commercial Vehicles (LCVs) / Medium & Heavy

Commercial Vehicles (M&HCVs) Tractors

Despite a head start since its beginning in the 1940s, the Indian automotive industry

has been moving at a slow pace mainly due to the all-pervasive regulatory atmosphere

prevailing till recently. Moreover, the industry was considered low-priority as cars

were thought of as unaffordable luxury for the masses.

In the post-liberalization period the passenger car sector witnessed a boom, owing to

economic vibrancy, changes in government policies, increase in purchasing power,

improvement in lifestyles, and availability of car finance. The industry was

deregulated in 1993, and many companies, both Indian and foreign (Daewoo, Ford,



General Motors, and DaimlerChrysler), entered the market. However, the smooth

sailing was disrupted in the last quarter of 1996. The automotive industry, which

contributed substantially to the industrial growth in FY1996 failed to maintain the

same momentum between FY1997 and FY1999. The overall slowdown in the

economy and the resultant slowdown in industrial production, political uncertainty

and inadequate infrastructure development were some of the factors responsible for

the slowdown in the automotive industry.

While the passenger car segment, with the launch of many new models, posted

positive growth rates in FY 2000 and FY 2001, the upturn was rather brief. In

FY2002, the automotive sector especially the passenger car segment continued to reel

under the pressure of over-capacity with low demand. FY2003 witnessed a healthy

growth in the passenger car sales with the pick up in the economy. The passenger car

sales in the first half of FY2004 were also buoyant.

However, the contribution of the automobile sector to industrial output, number of

cars per person, automobile sector employment as a percentage of industrial

employment, number of months' income required to purchase a car, and penetration of

cars are quite low. Low demand and lack of vision on the part of the OEMs and

policymakers stunted the Indian automobile industry. However, major car

manufacturers worldwide foresee future demand in India. The regulatory environment

has been liberalized and demand has picked up. Global OEMs who enjoy scale

economics both in terms of manufacturing and research and development have

entered the Indian market, leading to a shift in the business operations of suppliers,

assemblers and marketers.

Key Demand Drivers

Disposable income was perceived as the key factor driving passenger car demand. But

over time, other factors included the need for greater mobility, non-availability of



public transport services, availability of cheap finance, development of the used-car

market, introduction of new technologically superior models, increasing levels of

urbanization, and changing consumer profiles.

Market Characteristics

Product Penetration

The penetration of passenger cars in India stood at five per thousand persons as

against 27 for two-wheelers in 2000. Significantly, the Indian figures are lower than

even those for economies like Indonesia (14 and 62). The relatively high penetration

of two-wheelers in India reflects the population's need for mobility and their limited

affordability.

Automotive Penetration (vehicles in use per thousand persons)*

Passenger Cars Two wheelers

USA 478 14

United Kingdom 373 12

Japan 395 115

Germany 508 36

China 3 8

Indonesia 14 62

South Korea 167 59

India 5 27



*Source: World Bank

Market Segmentation

Considering that affordability is the most important demand driver in India, the

domestic car market has been segmented on the basis of vehicle price till SIAM

introduced the length-based2 classification of passenger cars since FY2003. The

automobile industry in India is still concentrated around the mini and the compact

segments which together account for around 81.8% of the automobile market in terms

of units sold in FY2003.

Demand Projection for Passenger Cars

FY2003

(Actual)

FY2004

(Forecast)

FY2007

(Forecast)

CAGR

Passenger car sales 611715 666248 838845 8%

Domestic Sales

Increased affluence, wider selection and the ready availability of car loans is driving

the Indian car market through the roof. During the last five years (2000-05), the

production of passenger cars in India increased by more than 100 per cent. India

achieved the sales of 1.11 million vehicles last year (2005).

Domestic sales have been growing at a clipping pace:

Passenger car sales rose by 22.84 per cent during April-September 2006,

compared to the corresponding period n 2005.

The cumulative growth of overall sales of passenger vehicles during April-

September of 2006-07 was 20.73 percent.

Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period.



Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of

Medium and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial

Vehicles also performed well with a growth of 32.86 percent.

Exports

India is fast emerging as a manufacturing base for car exports. According to the

Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were

exported in September 2006, a 58.07 per cent jump as compared to the same month

last year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and

commercial vehicle exports grew at 27.80 per cent.

Major Manufacturers of Automobiles in India

Maruti Udyog Ltd.

General Motors India

Ford India Ltd.

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Hyundai Motor India Ltd.

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

Foreign players in India



Calendar 2006 has seen the entry of many high-end brands into the country. The

Indian automobile market will see at least 30 new launches, spanning everything from

affordable hatchbacks to mid-size models to super luxury high-end cars and SUVs.

Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now, the

Italian marquee Lamborghini is also planning to enter the country. The Italian

marquee plans to launch the Gallardo.

German luxury car maker Audi AG is preparing to drive into India a range of sporty,

lifestyle cars like S8 and RS4 early next year. The year 2007 will also mark Audi's

entry into merchandising in Indian car bazaar.

CAR STATISTICS INDIA

The Indian automotive industry is the 2nd fastest growing in the world. About 8

million vehicles are produced annually in this country toady. During 2005-2006, India

has emerged as the 3 rd largest market in the Asia Pacific Region. With various car

manufacturing companies setting up their units in different parts of the country, the

production of the cars will increase at a very fast rate. The car statistics indicate that

India will soon become one of the top 10 car manufacturing countries , leaving behind

the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car

production capacity in India will exceed the mark of 2 million. Thus, the production

of cars will increase by 70% from the present capacity of 1.2 million.

The domestic sales of passenger cars have increased significantly over the years. A

graphical representation of the domestic sale of cars will give you an insight about the

present market situation prevailing in the country: In the recent years, India has

emerged as one of the major bases for manufacturing small passenger cars. At present

the Indian automotive industry boasts of being the 3 rd largest manufacturer of small

cars. According to the car statistics almost 70 % of the cars sold in this country come

under the segment of small cars. A number of car manufacturers like: Maruti Udyog,

Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc

offer various new model of cars now and then. It is expected that the various



automobile manufacturers will be investing about $ 5 billion in India, between 2005-

2010.

As per the car statistics, export of passenger cars from India has also grown

considerably over the last decade. A graphical representation of car export trend will

help you to make an in-depth analysis of the present status of the Indian automotive

industry: With new strategies being implemented and more investments being made

in Indian automotive industry the production as well as the domestic sale and exports

will increase substantially.

India definitely is shining; with a GDP that is sparkling at over 8 per annum the

country certainly is on the right course. The automobile exports are at an all time high

as was indicated by Society of Indian automobile Manufacturers in a report released

in 2006. According to the report, the passenger car segment saw a rise of 9% in

January 2006.

The following table will provide a clear picture of the rapid rise of automobile Export

in India.

Analysis of Indian Exports:

Strengths

Cost competitiveness in terms of labor and raw material.

Established manufacturing base. Economics of scale due to domestic market.

Potential to harness global brand image of the parent company.

Global hub policy for small car like Hyundai, Suzuki, etc.

Weakness

Perception about quality.

Infrastructure bottlenecks.

Opportunities

Huge export markets such as Europe, America, Africa, and others for Indian

cars.


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Threats

China, Malaysia, Thailand, etc.

Many other countries also have strategies for export promotion.

Export Imperatives:

Internal Factors:

Attaining high quality for global standards.

Continuous cost reduction for global competitiveness.

Supply chain management (logistics).

Attaining economies of scale & scope.

External Factors:

Improve infrastructure (ports, roads, etc).

Improve EXIM regulations.

The Indian passenger car segment

The Indian car industry an be classified, based on the price of the car, into the ‘small’

car or the economy segment (up to Rs.0.25mm), mid-size segment (Rs.0.25 –

0.45mn), luxury car segment ( Rs 0.45 -1mn) and super luxury car segment (above

Rs1 mn).

The models in the car market can be fitted to different segment as given below:-

Category Models

Economy segment (up to 0.25mn) Maruti Omni, 800, Padmini

Mid-size segment (Rs0.25-0.45mn) Swift, Wagen-R Premier

118NE,Ambassador,Nova, Fait Uno,Zen,

Huundai Santro, Daewoo Matiz, Tata

Indica, Contessa, Aulto.

Luxury Car Segment Tata Indica, Maruti esteem,Ford Ikon,

Opel Astra, Fait Siena, Opel Corsa,

Hyundai Accent, Tata Estate, Ford Feasts,

Honda City,Lancer.

Super luxury segment ( Above Rs 1mn) Merceds Benz, BMW, Nissan, Audi,



Luxus, Skoda and other imported Models.

The demand for passenger cars can be segmented on the basis of the user segment as

those bought by taxi operators, government/non government institutions individual

buyers etc. A major portion of the demand in India accrues mainly from personal

vehicle owners.

Industry analysis using porters five force:

Porters “five force of competition” model views the profitability of an industry as

determined by the five source of competition pressure. Theses five force of

competition include three source of “Horizontal” competition – competition from

substitute, the threat of competition from entrants, and competition from established

producers – and two source of “vertical” competition – the bargaining power of

suppliers and buyers. The following write-up is a view of the Indian passenger car

industry from these five angles leading to the expected changes in the coming years in

the underlying structure of the Indian passenger car industry.

Competition from substitute

Inadequate Public Transportation System: In developed nations city planners

have tried to relieve congestion and pollution by creating an efficient public

transportation system. However, they have been remarkably ineffective in

encouraging motorists to forsake their cars for buses or subway. The public

transportation system in India is not only extremely inadequate, it is notably poor in

quality. This scenario is not expected to change drastically in the next ten years.

Electric cars: All the major car manufacturers in the world are currently

developing electric cars or hybrid cars to reduce pollution in the coming years.

However, these technologies wll requires considerable length of time to become

commercially feasible in developing nations.

The lack of inadequate public transportation system coupled with the fact that the

electric or hybrid cars are still in the developmental stage means that the Indian car

industry faces minimal competition from substitutes.



Treat of new entrants

Economies of scale: in the automobile industry, economies of scale act as a

significant entry barrier since it is a capital-intensive industry. Globally, it has been

witnessed that car manufacturers with low volumes find it extremely difficult to

survive given the high per unit cost. The acquisition of Rolls Royce, Jagur, Rover, and

AMC/jeep are a testament to this. On the other hand by entering on a large scale, one

runs the risk of drastic under-utilization of capacity as observed by Daewoo’s

experience in India. Since the economy segment cars are expected to drive volume

growth in India in the coming years, it is extremely important for a manufacturer to

have a model in this segment to reduce his per unit cost.

Government policy: the license-raj of the Indian government toll 1991 acted as

a significant barrier for any new entrants in the passenger car industry. Moreover, the

government’s perception of the car being a “luxury “rather than a modern “necessity’

resulted in this sector being labeled as “low priority.” However, the liberalization of

the Indian economy has removed this hindrance.

huge capital Costs: Huge capital Cost act as significant entry barrier and only

established companies with deep pockets possess the resources to enter the

automobile industry. Significant costs are involved in the development of a new car as

can be seen by Telco’s Indica car which has incurred an expenditure of Rs.17 bn.

Absolute cost Advantages: Maruti’s presence in the car industry since 1984

gives it considerable cost advantage over the new entrants. Not only are its plants

highly depreciated and its cars highly indigenized as compared to its competitors, it

has a wide distribution and service network which will require mammoth resource to

replicate.

Absolute Cost Advantage: Maruti’s presence in the car industry since 1984 gives it

considerable cost advantage over the new entrants. Not only are its plants highly

depreciated and its cars highly indigenized as compared to its competitors, it has a

wide distribution and service network which will require mammoth resource to

replicate.



Although liberalization of the Indian economy has reduced the impact of government

policy as an entry barrier, the car industry still enjoy high entry barriers due to huge

capital costs involved in setting up efficient plants and numerous cost advantages

enjoyed by Maruti. The recent pull-out of Peugeot is an example that even a global

automobile company could find it extremely difficult to operate in India if it faces

labor trouble and Rivalry between Established competitors.

Highly Concentrated Industry : The Indian car industry is highly

concentrated with Maruti itself accounting for about 80% of all sales. The lack of

competition in the economy segment to Maruti 800 has given the company

considerable power. Its dominance in this segment gives it the power to cross

subsidize its models in the other segment. However, this scenario is expected to

change drastically over the next three years with a number of new models being

launched to challenge maruti 800s dominance the scenario in the economy segment

could be similar to that in the premium segment currently with intense price

competition. The slashing of cielo`s price by 25%has led to ford and opel introducing

cheaper models

Diversity of competitors: 1984 and 1993 have been land mark years for the

Indian car industry. The entry of Maruti in 1984 changed the complexion of the

industry as for the first time Indian had opportunity a buy a car which was comparable

to the Japanese automobile. 1993 was a historic year as the industry was deregulated

an India become the latest battlefield for global auto majors. The last few years have

seen the industry integrate with global automobile industry and evolve into being

extremely competitive. For the first time, Maruti’s position as the leader of the car

industry will be severally challenged especially if three new cars (Tata Indica,

Daewoo, D’Art, and Hyundai Santro) in the economy segment can deliver the

promised performance.

Product differentiation: One of the key trends observed in the car industry

during the last decade is that the products of different companies have become

increasingly similar especially in the economy and mid-size segment. There is a

perceptible shift towards “car” being treated as a commodity rather than as a

consumer good. In the premium car segment in India, differentiation between

different models is declining as companies strive to increase volumes by cutting



prices. Even Opel Astra has decided to introduced a new model without any frills to

reduced its prices by Rs.10 million.

Increase in Working Capital Needs: The intense rivalry between the

automobile companies will mean that the companies would have to give longer credit

periods to its dealers. The substantial over-capacity in the industry will lead to

increased inventory holding. These two factors point towards an increase in working

capital needs of car companies.

The competition between firms in the car industry is expected the intensify

considerable as never companies will start reducing Maruti’s dominance of the market

the expected significant over-capacity in the industry, increasing working capital

needs, and high exit barriers coupled with low differentiation between models

especially in the economy segment will put downward pressure on price and

profitability of companies.

Bargaining power of Buyers

Buyers price Sensitive: Car buyers in India are extremely price-sensitive

especially in the economy segment. Although it is too early to judge the three new

small cars and Maruti response to it, we can expect the price competition to intensify

since buyers would e more willing to switch while intense competition among the

companies would require them to generate volumes.

Relative bargaining power : Gone are the days when the India car buyer had

to buy one of the 30,000 Ambassadors or Fiate, which were produced. The

penetration of satellite television has globalized the Indian customer. Car companies

have seen forced to revamp their dealer network. From a small shed for a dealership,

the shift is towards huge dealership who not only offer complete range of services for

the car but also make sure that the customer has a replacement vehicle so that they

may not become immobile.

Availability of Easy financing: the entry of numerous car companies has

brought along with it a massive increase in the availability of cheap finance for the

Indian consumer. This hassled to fierce competition among the car companies and has



even led to free gifts being doled out to buyers to lure them to purchase a particular

car.

Bargaining Power of Suppliers

Diminishing Supplier Power : one of the key trends observed in the global auto

industry is the significant increase in outsourcing of car parts. In India, the

development of the auto ancillary industry has also brought in this phenomenon.

However, the large number of competitors for supplying each part implies that in the

coming years, supplier power will diminish to a large extent except for suppliers who

have almost monopolistic power like Mico-Bosch. Also, there is a increasing shift

towards reduction in vendor base for a company which means that the chosen

suppliers also have to make substantial financial investments to enhance the quality of

their products.

Supplier power in the automobile industry will diminish greatly in the coming years

due to the large number of competing supplier, threat of cheaper and better-quality

imports, and an increasing trend towards reduction of a car company’s vendor base.

Conclusion

Although it is possible to predict with some confidence the qualitative impact of

individual structural changes, there are difficulties, first in predicting the quantitative

impact of structural changes, and second, in predicting the aggregate effect of

simultaneous structural changes that have conflicting effect n probability. The Indian

car industry is still in a nascent stage. The economy car segment acconts for the

majority of the cars sold. However, as the economy picks up stream again and the

Indian market matures, the car industry will also climb up the learning curve. The

industry has virtually no competition from substitute at next decade. High entry

barrier due to high capital costs is also a positive indicator for the existing car

manufacturers. However, the intense competition between firms and increasing

bargaining power of the buyers indicate towards intensifying competition ad

competition and depressing profitability. It will also lead to an increasing need of

working capital for these companies who will e faced with longer credit periods and

higher inventory holdings. However, given the low motorization in India and

increasing per capita incomes, the potential exists for the Indian car industry to

increase profitability y generating significant volumes and reducing manufacturing



costs. Significant opportunities exist for players to spot gaps in the market and cater to

particular niche markets like sports utility vehicles and minivans. The diminishing

power of the supplier industry will help the industry in improving the quality of car

components and getting longer payment periods. The key to success in the Indian car

market will be offering good quality cars that offer value for money, run innovative

marketing campaigns to attract potential buyers, and offer excellent after sales

service. Companies, which have a range of vehicles in all the segments of the market

like Maruti, will be at a significant advantage due to their ability to cross-subsidize

model

Manufacturing process

The body panel and engine constitute a major portion of the total cost of car

manufacture. A typical cost structure for car is as given below.

Parts/assembly % of total cost

Glass 5

Brakes/wheels/tyres 6

Interiors 7

Transmission system 8

Ignition/exhaust system 8

Steering/suspension 9

Comfort fittings 11

Engine 16

Body 18

Others 13

Car manufacturing is basically assembly of components procured from ancillaries or

auto component manufacturers. Nearly 80% of auto components are outsourced by

the car manufacturers. This helps in reducing the capital cost needed to setup a car

manufacturing plant.



Company profile



Maruti Suzuki motors

MARUTI UDYOG LIMITED

Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market

leader in the car segment, both in terms of volume of vehicles sold and revenue

earned. 18.28% of the company is owned by the government, and 54.2% by Suzuki of

Japan. The Indian government held an Initial Public Offering of 25% of the company

in June of 2003.

The company annually exports more than 30,000 cars and has an extremely large

domestic market in India selling over five hundred thousand cars annually. Maruti

800, till 2004, was the India's largest selling compact car ever since it was launched in

1983. More than a million units of this car have been sold worldwide so far.

Currently, Maruti Alto tops the sales charts.

Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"

is commonly used to refer to this compact car model. Till recently the term "Maruti",

in popular Indian culture, was associated to the Maruti 800 model.

The largest selling car from Maruti's stable, Maruti 800

In the order they were launched:

Maruti 800: Launched 1983. Largest selling car in India, till 2004.

Maruti Omni: Launched 1984.

Maruti Gypsy: Launched 1985.

Maruti 1000: Launched 1990

Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006.

Maruti Esteem:Launched 1994

Maruti Wagon-R:Launched 1999 Modified 2006

Maruti Baleno:Launched 1999

Maruti Alto:Launched 2000. Currently the largest selling car in India

Maruti Grand Vitara:Launched 2003



Maruti Grand Vitara XL-7

Maruti Versa: Launched 2004

Maruti Swift: Launched 2005

Maruti Zen Estilo Launched in 2006

Maruti Swift Diesel Launched in 2007

Services offered

Authorized Service Stations- Maruti is one of the companies in India which has

unparalleled service network. To ensure the vehicles sold by them are serviced

properly Maruti had 1545 listed Authorized service stations and 30 Express Service

Stations on 30 highways across India.

Maruti Insurance- Launched in 2002 Maruti provides vehicle insurance to its

customers with the help of the National Insurance Company, Bajaj Allianz, New India

Assurance and Royal Sundaram. The service was set up the company with the

inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and

Maruti Insurance Brokers Pvt. Limited.

Maruti Finance- To promote its bottom line growth, Maruti launched Maruti

Finance in January 2002. Prior to the start of this service Maruti had started two joint

ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE

Countrywide respectively to assist its client in securing loan. Maruti tied up with ABN

Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank,

and Sundaram to start this venture including its strategic parnters in car finance.

Again the company entered into a strategic partnership with SBI in March 2003. Since

March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-

Maruti Finance is currently available in 166 cities across India.

Maruti TrueValue- Maruti True Value is a service offered by Maruti Udyog to

its customers. It is a market place for used Maruti Vehicles. One can buy, sell or

exchange used Maruti vehicles with the help of this service in India

N2N Fleet Management- N2N is the short form of End to End Fleet

Management and provides lease and fleet management solution to corporates. Its



impressive list of clients who have signed up of this service include Gas Authority of

India Ltd, DuPont, Reckitt Benckiser, Sona Steering, Doordarshan, Singer India,

National Stock Exchange and Transworld. This fleet management service include

end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance,

Convenience services and Remarketing.

Accessories- Many of the auto component companies other than Maruti Udyog

started to offer components and accessories that were compatible. This caused a

serious threat and loss of revenue to Maruti. Maruti started a new initiative under the

brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body

cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care

products. These products are sold through dealer outlets and authorized service

stations throughout India.

Maruti Driving School

Exports- Maruti Exports Limited is the subsidary of Maruti Udyog Limited with

its major focus on exports and it does not operate in the domestic Indian market. The

first commercial consignment of 480 cars were sent to Hungary. By sending a

consignment of 571 cars to the same country Maruti crossed the benchmark of

3,00,000 cars. Since its inception export was one of the aspects government was keen

to encourage. Every political party expected Maruti to earn foreign currency. Angola,

Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile,

Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti

Exports

Key Competitors-

Tata Motors

Hyundai India

Ford India

FIAT India

General Motors India

Pride Pointers



• India’s largest automobile company

• MUL Rolls out one car every 43 second.

• Around 4 million people in India are proud to own maruti cars.

• The highest installed production capacity

• More than 35,000 trained technicians for customer support.

• Largest Sales network-270 sales outlets

• Largest service networks- 359 dealers workshop

• Cities covered by sales- 172

• Cities covered by service- 922

• Spare Parts Store- 26

• MGP Shopee- 11

• True Value network- 127 outlets

Some Milestones-

1983- Launched, hence bringing the first revolution in the Indian car market in terms

of

• Technology

• Availability- production Capacity

• Fuel Efficiency

• Choice of colour

• Shape May- 1993, Zen the world car unvieled at a world premier.



• November- 1994, Esteem the first luxury car on Indian roads launched

• December- 1999, Baleno, the top end of the luxury car launched.

• March-2000 WagonR the original tall boy launched.

• September-2000, Alto launched in three variants

• October-2001, Versa, India’s first MPV launched in three variants

• April-2002 Grand Vitara, the SUV launched.

Some Milestones in Exports

• MUL Export cars to more than 100 countries.

• India’s largest exporter of completely built cars (CBU) during 2001-2002 both

in terms of volume and value.

• Cumulative export sales crossing the 2.5 lakh mark, far more than any car

company in the country.

Local market trends

Sales, particularly in the small car segment, will drive passenger car sales in

the near in term. However, within the next two years , capacity is expected to be twice

the total demand for cars.

With developments in the small car segment acquiring a degree of stability in

terms of price competition, the action is shifting to the mid-size car segment. sales in

this segment will pick up as new models come in and income levels rise but it is still

some times till it comes anywhere close to the economy sized segment.

What will also drive car sales is the wide availability of finance schemes by a

variety of banks and FI’s.

Sales in the used car market is also expected to do well as more an dmore

older models get replaced by newer ones at a faster pace. The coming in of Euro 3 and

4 norms will also increase scrappage rates.



In view of expected surplus in the domestic market, India will emerge as one

of the leading car sourcing point in the Indian subcontinent.

Consumers will be the beneficiaries as a result of marketing war, as they will

be offerd technologically superior products at better price and terms and conditions.

But the customer has a risk of model discontinuation as a result of shake-out expected

in the industry.

India offers a releatively low cast production base and is strategically

positioned as a launching base for third country export to Asia-pacific and European

markets

Growth in road transport, increasing urbanization and privatization of public

transport will into growing demand for commercial vechile which is sited to reach

three hundred thousand by 2001, growth of disposable incomes will push up demand

for two-wheelers to 4.5 million, of three-wheelers to 250 thousand and of passenger

car to 420 thousand over the same time span.

India has added advantage of an extensively segmented market and a well-

developed dealer network.

Growth of consumer finance leasing and hire-purchase options for vehicle

dealers and buyers also boost demand.

A well developed component industry offers opportunities for sourcing. The

scope is vast for foreign collaboration to produce branded models stressing on

emission standards, fuel efficiency, advanced features and contemporary styles.



BELLAD MOTORS (P) LTD.

BELLAD MOTORS (P) Ltd is a multi franchise automobile dealership based at

Hubli servicing the North Karnataka. The Bellad Group with a standing of more than

three decades in Automobile industry established their prestigious Maruti Dealership

in the year 2006.

Ideally located on Hubli Dharwad highway the dealership can boast of a spacious

4000 sq ft. and well lit showroom with ample frontage. The showroom has the

complete range of cars for display and test drive and professional and trained sales

staff always eager to serve and delight our value customers.

The service center with an area of 6000 sq ft has two post lifts, pneumatic tools,

computerized wheel alignment and wheel balancing machines and a most modern

paint booth which can handle any make of car. The service personnel highly trained

and professional with up to date knowledge owing to the groups policy of

implementing continuous learning programs. A 24 hours emergency road service

attached to the service division is always on call and is a confidence booster to our

customer.

The parts center in an area of 2000 sq ft is well stocked and has a wide range of

accessories to suit the varying needs of our customers.

The dealership with its professional management looks forward to their growth by

focusing on customer centric and value added offers to their customers. Bellad Motors

(P) Ltd with their network of branches at Bagalkot and Karwar are striving hard to

satisfy their customers.



ORGANIZATION CHART


Managing Director

Deputy General Manager HRD

M. W/S Parts Manager

Sales Manager

Account Manager

M.T.V

Team Leader Team Leader

Sales Executive

Sr. Sales Executive

Reception

Data Entry

Sales Executive Sales Executive Sales Executive

Team Leader Team Leader

Sales Executive Sales Executive Sales Executive Sales Executive


SALES DEPARTMENT


Managing Director

Deputy General Manager

Sales Manager

Team Leader Team Leader Team LeaderBagalkot

Team LeaderKarwar

Sales Executives Sales Executives Sales Executives Sales Executives


WORK STATION


Managing Director

Deputy General Manager

Customer Care Manager

Works Manager

Assistant Customer Care Manager

Assistant Works Manager

Service Advisor

Floor Supervisor

Floor Supervisor

Technicians Technicians


SERVICE DEPARTMENT

WORKMEN 25

SUPERVISERS 04

HEAD OF THE DEPT 01

SALES DEPARTMENT

MD = Managing Director

DGM = Deputy General Manager

T.L = Team Leader

S.E = Sales Executive

M.T.V = Maruti True Value

The following chart explains the Sales Department. In that Sales Manager handles the

sales promotion activities, Customer Care Executive handles the identifying the

customer problems and solving. Branch Managers are district wise and their work is

to take the information form the sales executives about the needs of vehicles and send

the same information to the Sales Manager and bring the vehicles from Sales

Manager to Sales executives. Karnataka in Hubli Bellad Motors (P) Ltd. showroom is

located on PB road at Unkal Cross. The workshop located at there itself, carries out

after sales operations, free service, paid service and Running repairs.

Quality Management System:

Bellad Motors has a documented and established quality management

system to ensure that

The documentation structure of Bellad Motors can be represented in the

following manner.

1. QULITY MANUAL

2. QULITY SYSTEM ROCEDURES

3. WORK INSTRUCTIONS AND CHECKLIST

4. FORMS AND

CARDS

5. REFERENCE STANDARDS AND EXTERNAL ANNUAL

Customer Focus at Sales:

The Field executives visit the customers and explain the features of the

vehicle to them.



Demonstration and test drives shall be given whenever required.

The Performa invoice/price list terms and conditions will be given.

The order booking forms duly collected from the customer and clarity with

regard to the terms and conditions are explained and the copy id handed over

to customer along with the receipt or payment made.

Customer Focus at Service:

a) The customer can book the vehicle for the servicing/repairs either through the

telephone or personally the front office.

b) The detail shall be entered in 'booking register' by the telephone operator.

c) The list of the vehicles shall be given to front office ~very morning to accept

the vehicles for servicing for that date.

d) The customer can bring their vehicle for servicing without booking. However

such vehicle shall be accepted only after ensuring that there is enough

capacity for the booked vehicles.

e) On the bases of kilometers run by the vehicle and customer requirement, the

customer shall explained about the type of the servicing/repairs and spare

parts required and to ensure that the service station has the required capacity

to accept the vehicle.

f) Before accepting the vehicle, a mutually acceptable delivery time and date is

fixed with the customer.

g) The customer's consent shall be taken on the estimated cost of the

repair/service of the vehicle.

h) All the details of the work required along with the date and time of the

delivery and the established cost shall be recorded in the job order card before

commencement of the work.



The various models of vehicles from Maruti Udyog Ltd. Sold and

serviced

at Bellad Motors.

Maruti-800 car

Maruti omni

Zen Estilo

Alto

Wagon-R

Esteem

Versa

SX4

Vitara

Swift

The various types of servicing done at Bellad Motors.

Services-Free service and paid service.

Running repair.

Quick service repair.

Break down service.

The external manuals acquired from Maruti Udyog Ltd. To sell and service the

vehicles.

Sales policy bulletin

Marketing circulars

Service manuals

Service circulars

Service bulletin

Warranty bulletin

Spares parts price catalogue

Spares parts price list

Spare parts procedure manuals

Spare parts bulletin

Spare parts circulars



Maruti service quality standards

Customer care manual

Service marketing manual.

OVERVIEW OF THE INDIAN SECOND HAND CAR MARKET

The pre-owned, or used, car market continues to be fragmented and unorganized.

Despite the rapid growth of the organized used-car dealers and manufacturer-owned

pre-owned car outlets, the market for old vehicles continues to be dominated by

individuals trying to sell and buy cars.

However, the pre-owned vehicles market is likely to mature as the car ownership base

grows. The scorching pace at which the new car market has grown this fiscal and the

growth projections for the next are indicators of the potential growth of the used-car

market in the next few years.

Further, in addition to the number of two-wheeler owners who are looking to buy

a car, the number of existing small-car owners hoping to upgrade to a three-box

(sedan) car will progressively drive used-car sales in the two critical B and C

segments. The C segment (particularly entry-level) used car sales are expected to

witness the kind of sales boom that B segment used cars saw over the past two

years.

Organized market imminent

Company-owned used-car outlet and increased demand for certified used cars are

likely to become the dominant themes. It is evident, from the surge in the number of

car manufacturers entering the pre-owned cars business, that the used car market is

getting increasingly attractive, both in terms of its potential to generate sales volumes

and higher margins. For the car-maker, the organized used-car business also throws

up the possibility of better using the dealer-cum-service outlet's vehicle servicing

capacity.



The manufacturer-sponsored pre-owned car business has seen entrants such as the

car market leader Maruti Udyog, with its Maruti True Value brand, Ford India,

with its Ford Assured, and Hyundai with its Hyundai Exchange brand. After

starting out in a small way amongst their dealerships, many of these

manufacturers are now actively involved in streamlining their used-car

operations.

Better place to shop

For the used-car buyer, the manufacturer-sponsored outlet is much better place to go

shopping. In addition to being able to buy a certified car at a fair price, these outlets

will also ensure that the paper work is right, throw in a couple of free services, offer

an extension of warranty at times, help with the transfer of the vehicle's ownership

and complete formalities at the regional transport office (RTO).

A certified used car, including the charges for inspection and certification, is usually

priced 5-10 per cent more than a similar used car in the unorganized segment. Despite

the higher cost, for the average first-time car buyer, a certified car is the better option.

In the absence of any organized car history services being offered by independent

consultants and a more transparent vehicle insurance system, getting background

information about the previous owner and the used-car is extremely difficult for

buyers looking for a deal.

Used-Car Buyer Behavior :

However, used-car buyers continue to be hesitant to shop for their cars at

manufacturer-sponsored outlets.

A recent study about the resale value of cars in India conducted by NFO Automotive,

part of the NFO World Group, threw up interesting points. Some of the key findings

of NFO Automotives inaugural 2003 India Used-Car Buyer Study (UCBS) were:

Very few Indian buyers pay for an expert to evaluate the vehicles; most rely on

their personal mechanics and friends.



Low reliance on vehicle financing at 20 per cent compared to nearly 65 to 70 per

cent for new car buyers.

Word-of-mouth, classified advertisements, and used-car brokers are the key

sources of deciding brand and price, with the Internet and manufacturer-backed

sources playing only a limited role.

Lack of shopping - over 60 per cent owners are pre-determined in their used-car

model choice and do not shop around.

The age of car (model year) and kilometers on the vehicle are the top evaluation

criteria. The degree of importance attached to accident history, ownership transfers,

and service/ parts availability is relatively lower.

Used-car finance

More than two-thirds of all new cars sold are part financed through auto loans. Intense

competition, reliable retailing channels and cross-subsidization of the financier's

interest costs by the vehicle manufacturer have brought down interest rates for new

cars dramatically during the last two years. However, the interest rates for financing

used-cars continue to be uncompetitive.

The interest rate for financing of new cars ranges between 7 per cent and 11 per cent

on a reducing balance basis depending on manufacturer and model. On the other

hand, interest rates on used cars range from 14 to 19 per cent, close to the rates for a

personal loan.

The interest rates for certified cars being offered by manufacturer-sponsored outlets

are usually lower than financing for used-cars bought from the open market.

This again is largely due to the higher reliability factor and, in some cases, to some

kind of preferred financing arrangement the manufacturer has with the financier.

More reliable experience-

Overall, the process of buying a used-car can be fruitful and risk-free, if you take the

necessary precautions (refer accompanying story) and opt for buying a certified car.



With the increased presence of the organized used-car dealer, the rate of growth in the

pre-owned car market is likely to outstrip new car sales.

Though a more market-friendly interest rate, which is on a par with the prevailing

rates for new cars, will continue to elude used-car financing, at least the differential

between the two rates are expected to gradually narrow. This is likely to happen after

the reliability factor goes up in the used- car market.

Tip sheet

Buyers

Check out these following aspects before closing a deal:

If you are on a tight budget and plan to buy an entry-level car in any of the

segments, a used-car may not always be the best option to upgrade to the higher

segment. Instead, you may opt for a new car in the lower segment.

If you do decide to upgrade to a bigger, higher segment used-car, then you

have to be ready for accelerated depreciation post-purchase and uncompetitive interest

rates, if you are part financing the buy.

It is better to go in for a certified used-car rather than trusting the judgment

of your neighbourhood mechanic.

Check the used-car seller's insurance records for the car's claims (accident)

history, if any.

Avoid cars that have had more than one previous owner.

A used-car owner who has been meticulous with the car's paper work and

maintains an exhaustive log of repairs, oil change, service will, in all probability, have

been meticulous with the car too.

If you are confident of about your own assessment skills and feel that you

can do the job of scouting for a used-car better, then the pointers given in the box

alongside may be of help.

Sellers



Here are a few pointers that can be of use when you decide to sell

your car:

Selling your car through a used-car dealer may be a better option than

attempting it yourself, despite the commission that you have to fork out to the dealer.

It will also still be worth it, especially if your car is more than three/four years

old, to get the vehicle used-car certified by an authorized car dealer or certifying

agency.

Passenger car manufacturers are nowadays offering attractive loyalty bonuses

and exchange plans for programmes for existing car owners to upgrade or switch to a

new car. But if your car is not more than three years old, it may still fetch a better

price in the open market. So, sell that car yourself and talk down the price of the new

one with the dealer. You will win both ways.

Go to the used-car market with realistic expectations. Remember if your car

has had crashes in the past, no matter how well it has been restored, its resale value

will have dropped never be the same.

If you have avoided frivolous repairs and the subsequent insurance claims

from your auto insurance company, or if your car has had an accident-free history,

then, do not forget to transfer the no-claims bonus from the used car's insurance

policy to the insurance cover for the new car. You can transfer almost half of your no-

claims bonus and help shave off a large chunk of the premium payable on the new

car.

ANALYSIS OF THE MARKET

• Global Scenario

In developed markets like U.S, Europe, Japan etc the market is very big and

organized.

- U.S Market Size: 1:3(48 Million)

- Japan Market Size: 1:1.8(8.4 Million)

- India Market Size: 1:1(Estimated)

Global Certified Markets



In Developed Markets all OE Manufacturers are doing certified

programs- like ‘True Value’

- GM-GM Certified

- Ford-Ford assured

- Toyota-Toyota Certified Used Cars

- Honda-Honda Certified

- Suzuki-Suzuki Ok, U’s Station

Source NFO UCBS-2003

3-level Evolution of Certified Programs-

• Indian Used Car Market

Estimated - To be 1:1 - i.e. for every one new car one old car is sold

- In U.S the market is 1:3

- Indian market is also growing in the direction of the developed markets.

Market Structure

• Customer to Customer- 60%

- I.e. between friends, relatives and reference individuals.

WWW. BABASAB PATIL FREEPPTMBA.COM

Level 1 Market is highly unorganized, dominated by purchase houses and C2C

Level 2

Level 3

Market is highly unorganized, dominated by purchase houses and C2C; new car dealers also start their used car programs.

Certified programs by OEM’s start as customers started demanding for assurance from OEM’s.

50


• Broker Market- 30%

• Organized Market- 10%

• Lacks-

- Reliability

- structured pricing mechanism

- structured exchange/ upgrading facility

- Assurance, warranty, etc

CUSTOMER ANALYSIS

Indian Customer Expectations-

Seller expectation

Seller expectation Brokers OEM backed dealership

Correct pricing of vehicle

reflecting market value

Prices offered by

brokers are as per the

market.

Pricing is as per or above

market, however only in

exchange scheme.

True evaluation of the

vehicle

None finds faults in

cars which do not exist.

Yes, thorough elaborate

checklist.

Financial

speed of setting the

account

reliability

Yes, at a cost

Very low

Yes

High

Form of payment- wants

flexibility between cash and

cheque.

Mostly cash Cheque

Car to be left in the

dealership

Unsafe Safe

Credliblity of the buyer Doubtful Can be known

Logistics- time and distance

of travel to selling point.

Few pockets in the city

or through local

workshops

One or two outlets in limited

cities.



Buyer’s expectation:

Buyer’s

expectation-

Brokers OEM backed dealership

Buy a reliable

car

Unreliable Reliable

Backed by refurbishment and

warranty provided by a third party.

Fair price Unreliable At par with market

Transparency Very poor Good

Clean

documentation

Very poor Yes

Top 5 reasons for Customer Going for Finance

1. 49%- fast paper work

2. 43%- interest rate

3. 41%- reputation of finance company.

4. 33%- good finance terms

5. 21%- flexible of finance terms.

- Source NFO-UCBS 2003

(2.7) OVERVIEW OF THE TWIN CITIES- HUBLI- DHARWAD-

The population of the city as per the 2001 Census was 7.85 lakhs. The

present population is more than 10 lakhs.

Hubli is well known as a commercial as well as industrial centre, where as

Dharwad is seat of learning. The city is well connected with important cities like

Bombay, Bangalore, Hyderabad and port towns of Karwar and Goa and easterns

and north-eastern regions by an excellent network of roads and rail. The airport at

Hubli is expected to find a place on our national air map.



The city is situated in the dividing line between the Malnad and the

planes. The Malnad is well known for its forests and forest based industries and

the other three side region are known for their agricultural products like cotton,

groundnut, oilseeds manganese ore and granite stones. The value of agricultural

products coming into Hubli market runs into multiple crores.

Hubli is an important industrial centre, with more than 1000 allied small

and medium industries already established. There are machine tools industries,

electrical, steel furnitures, food products, rubber and lather industries and tanning

industries. With the establishment of Bhoruka textile Mill, N.G.E.F and K.M.F. it

has gathered momentum in industrial development.

Dharwad is the seat of learning with Karnataka University and

Agricultural University. There are large number of Arts, Science, Commerce and

Law Colleges in the city. Karnataka Medical College, S.D.M. College of Dental

Sciences and Engineering and technical institutions are crowning additions to the

educational facilities in the city. Due to these educational and industrial facilities,

the city attracts considerable floating population.

ANALYSIS OF THE CAR MARKET IN HUBLI- DHARWAD

• Hubli- Dharwad is one of the fast growing market for Cars in the state.

• There are showrooms of most of the segments of the Cars.

• The company owned showrooms that are present in the Twin cities are-

Maruti, Hyundai, Tata, Skoda, GM Opel, Ford, Toyota, Fiat, Mahindra and

Mahindra, HM etc..

• There are many co owned service stations, Mercedes has set up it’s service

station in Hubli recently.

• There was a demand for the small cars mostly in the Twin cities, because

of the shorter distance for traveling, economical, less parking space etc..

• The mindset and the consumer behavior is fast towards buying cars in

Hubli- Dharwad.



SECOND-HAND CAR MARKET IN THE TWIN CITIES.

There are about 40-50 unorganized dealers in Hubli- Dharwad.

There are only two other certified dealers in the market- Bellad,

Automartindia.

Insights of the dealers- (sample size - 8MAIN DEALERS)

• No proper infrastructure.

• The average years of established is 8years

• Average sales per year is 180-200 cars

• The dealers do not use middle men for their dealings.

• The promotional activities are mostly undertaken through Melas and

Newspaper ads

• The average peak time for the maximum sales in in festive seasons.

• They do not give any service or guarantee backup for the vehicles sold.

• They say the customers are very satisfied with them.

• Cost is the only problem when customers are purchasing.

• The major factors considered by the buyer are-

- Budget

- Condition

- Age



“MARUTI TRUE VALUE”- WHAT IS IT?

Maruti Suzuki’s new Initiative along with Maruti Insurance,

Maruti Finance and Maruti N2N under Project Vistaar.

The Most Reliable Option to Buy or Sell Pre-Owned Cars-

• First True Value outlet on 19th Oct-2001

• Present network :127 outlets in 94 cities

• Product- Sourcing: they buy cars of any make, age and mileage in

exchange.

Objectives of Maruti Suzuki behind True Value

• Increasing New Car sales through exchange.

• Managing Residual Value.

• Enhancing your Dealer Profitability.

• Enhancing motorization-2-4 Wheeler.

Unique Strengths

• Backed by Maruti Suzuki- India’s largest and most trusted passenger car

manufacturer.

• The largest used car dealer networks in India run by professional

management.

• The Maruti True Value warranty and services can be availed by the

customer across the nation at any true value outlet.

• Only true value can ensure that if any problem arises anytime their service

at their service 24 hours.



Maruti True Value Products

GR- Upto 5 years old & upto 1 lac kms-

- Warranty- 15000 kms or 1year whichever occurs earlier.

XR- Upto 7 years old & upto 1 lac kms-

-Warranty-7500 kms or 6months whichever occurs earlier.

PR- Upto 10 years old & upto 1 lac kms-

- No warranty but mechanical refurbishment standards same as GR/XR.

Evaluation Process of the Cars at ‘True Value’

• Backed by Maruti Suzuki- India’s largest and most trusted passenger car

manufacturer.

• The largest used car dealer network in India run by professional

management.

• The Maruti true value warranty and services can be availed by the

customer across the nation at any true value outlet.

• Only true value can ensure that if any problem arises anytime their service

at their service 24 hours.

True Value VS Market

Maruti true Value Brokers and C2C



Every car is bought through a stringent

120 point check which is done by

professionals trained by Maruti- Suzuki.

No checking

Only cars that meet strict criteria are

taken under True value ensuring that

cars are non-accidental and free of any

major defects.

No assurance of quality

Seller bonofides are verified from RTO Dubious

This ensures that the buyer does not end

up in any legal hassles

Risky

All the 11 systems of the car like

engine, transmission, electrical, brakes,

suspensions, body etc are reconditioned

to Maruti Suzuki standards.

No re-conditioning

This ensures that the car is reliable, safe

optimized fuel economy. Sparkling

clean and aesthetically finished giving

the experience of the new car.

Car is not assured of safety reliability

and any time it can break down: big

tension option

Maruti- Suzuki trained professionals

refurbish every car only with Maruti

genuine parts at state of the art.-maruti

workshops.

No refurshibment, even the genuine

spares are replaced with spurious

parts.

Ensures zero maintenance cost- ensures

zero maintenance cost, all the critical

parts of the car are ensured to be once

on the new car- ensures happy driving.

Many parts need replacement from

time to time, buyer ends up visiting

the workshop more than driving the

car, end up spending about rs 10,000/-



in a year.

Every car is inspected and certified by

Maruti- Suzuki Engineer present at your

True Value outlet.- Maruti Suzuki’s

assurance to the customer that what we

promise we deliver.

None- no assurance.

Every car comes with Maruti Suzuki

Warranty upto one year- all the parts

that are covered under new car are

covered in True Value.

None- part gone, money gone all

round troubles and strain.

True Value Finance

Best value finance option available to the Used Car Buyer.

Most convenient, no hidden costs, less paper work

Interest rates (15% reducing) Lower by 2-3% than the market

Financing upto 10 years of age- “ Unique to True Value”

Best Cars+ Best Finance “ High Conversion”



PROJECT DETAIL



Executive summary

The aim of marketing is to meet and satisfy the needs and wants of the customers.

India has long-term potential to become a significant vehicle market. It has huge

population of nearly one billion people (of which 150-250 million are middle class),

and a current vehicle population of 3.5 million (equivalent to only 3.4 cars per 1000

people).

Prior to the early 90’s there were only four car companies manufacturing and selling

cars in India. Foreign investment was effectively banned and foreign technology

transfers were subject to government approvals. By 1993 the Indian government

delicensed the Indian car industry, which eased other foreign auto manufacture’s entry

into the market first under joint partnerships, then wholly owned subsidiaries.

Currently, India is in the midst of an economic-recovery where vehicle sales rose 47

percent to 73,000 units in March 2000, up from 49,410 units in March 1999.

Indian auto market is booming the auto manufacturers from all over the world are

attracted by indian market for both,manufacturing and sell cars to indian and export

market.

Making the right choice while buying a used car is very important. Maruti Suzuki,

India's favorite car company, understands you concerns regarding quality,

documentation and value for money. That is why we ensure that the used car you buy

from us has never had an accident and is free from defects or legal hassles. What you

get is a car that is optimized for trouble-free performance and therefore needs

minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's

direct involvement, which includes thorough checks, a complete reconditioning at

state-of-the-art Maruti Suzuki workshops and certification by a Maruti Suzuki

Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we

give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified

used car and make a wise investment.





Value"

Problem definition: Maruti has come out with a concept of creating a new market for Pre Owned

(second hand) cars which it calls ‘True Value’. Therefore Bellad Motors as a

franchisee wants to know the opportunity it has in the market of Hubli against the

New Cars, and what strategies can be applied to attract the customers effectively.

Objectives of Maruti Suzuki behind True Value

• Increasing New Car sales through exchange.

• Managing Residual Value.

• Enhancing your Dealer Profitability.

• Enhancing motorization-2-4 Wheeler.

NEED FOR THE STUDY:

The automobile sector has today become one of the hot areas markets. Various

upcoming features have enhanced the global competition in today's Automobile

sector.

As there are petty dealers in the ‘Pre Owned’ Car market in Hubli- Dharwad it

is important to learn about the ‘Target Audience’ and the market.

To know how has Maruti handled the ‘Pre Owned’ market until

now?

To know what the market share is?

To understand and work on the gaps, if any.



Utility or Proposed out comes and benefits of the study:

Benefit to the Organisation:

With this study, the organization (Bellad MOTORS) will be benefited in terms of

learning

1) Changes in the target segment.

2) Learn more about the competitors.

3) Study the changes in the market conditions.

4) Awareness / knowledge about ‘True Value’

The study results also will help in making proper strategies to expand the new

introduced market.

Benefit to Academics:

It will help me in understanding-

The market for used cars in general and market in twin cities in particular.

Customers Decision Making Process for used cars.

Customer’s choices of brands in used car segment.

It will help in understanding, reviewing and suggesting improvements in

creating a market for ‘True Value Cars’.

The experience gained during this study will provide as a tool, which can be

applied in any future undertakings of similar nature.



Value"

Objective:



To know and study/analyses the effectiveness of second hand car sales by Maruti

Suzuki’s ‘True Value’ concept through it’s dealer Bellad Motors in Hubli city.

Sub Objectives-

– To know the nature of the market for used cars in the Twin Cities.

– To enumerate the various players for used cars in the Twin cities.

– To enumerate the various reasons for customers opting a used car.

– To find out the awareness/ knowledge level of customers on the

concept of ‘True Value’ offered by Bellad Motors.

– To access the impact of promotional activities on the sale of used cars.

Research Approach

Exploratory research

Exploratory research is concerned with discovering the general nature of the

problem and the variable that relate to it. Exploratory research is characterized by

high degree of feasibility and it tends to rely on secondary data.

During this study, exploratory research is carried to identify the variable like,

customer satisfaction level, basis of purchase decisions, important of brand name,

customer opinion regarding various preferred feature, the innovative advertising

strategies used by the companies, which decides the strength of the company to be in

the customers mind and also to grab the major portion in the market.

After discovering the general nature and the variable relating to it, with the help of

exploratory research, a descriptive research will carried out during the study for the

purpose of accurate description of variables.

Descriptive research carried out with the help of primary data collected from the

customer through questionnaires.

Data collection approach

To carry out this research, primary data and secondary are collected.



Primary data (survey data)

Systematic collection of information directly from respondents. This data is collected

for the descriptive research. The survey data collected during the study includes the

data collected through questionnaire and face-to-face interview with customer to

know about the consumer behavior.

Secondary data

The first step in data collection approach is to look for secondary data. Usually it is

the data developed for some purpose other than for helping to solve the problem at

hand. Secondary data are collected through various magazines, internal experts,

website, directories, external experts and miscellaneous report.

Measurement Technique:-

In this project following measurement techniques are use to collect information.

Questionnaire:-

For the purpose of this project self-administered questionnaire to potential customers

and for standard commercial business enterprises located in Hubli Dharwad city.

Analysis of DATA

Data are useful only after analysis. Data analysis involves converting the series of

data recorded observations into descriptive statements.

The survey will carried out in Hubli-Dharwad city, and the sample size was

100.The information gathered is transferred to a SPSS coding sheet, interpretation.

The measurement and evaluation of data is done using SPSS 11.0 version software,

simple frequency cross tabs and graphical representations.

Ethics of the research

In this study, the questionnaire is designed in such a way that the feelings of

respondents as well as the ethics of the company are not disturbed. The research and

research report is not misleading any way.

Sampling process



Sampling Population:

All the people using A2 segment cars and the people who can afford an A3 segment

cars and standard commercial enterprises located in Hubli-Dharwad.

Sampling Frame:

List of standard commercial enterprises located In Hubli-Dharwad, List of A2

segment car user and list of people who can afford A3 segment cars.

Sampling unit:

Standard Hotels, Business enterprises and households

Sample Size:

100

Sampling Method

Samples are selected on Non probability convenient sampling method.

Time frame

Time: - 10th Dec to 19th April.

Data collection method

To collect the data we used both primary and secondary methods.



For Customers (Professionals)

Q 1. You are in which profession

Profession of Respondent

11 11.0 11.0 11.0

8 8.0 8.0 19.0

19 19.0 19.0 38.0

24 24.0 24.0 62.0

17 17.0 17.0 79.0

21 21.0 21.0 100.0

100 100.0 100.0

Engineer

Doctor

Lecturar

Business

Advocate

Banker

Total

ValidFrequency Percent Valid Percent

CumulativePercent



BankerAdvocateBusinessLecturarDoctorEngineer

Fre

qu

en

cy

30

20

10

0

Findings:

11 % of Respondents are Engineers

8 % of Respondents are Doctors

19 % of Respondents are Lecturars

24 % of Respondents are Businessman

17 % of Respondents are Advacates

21 % of Respondents are Bankers

Interpretation

Among different demographic classification in the research profession of the

respondents is the prime factor and her professional like business, advocates, bankers,

engineers, lectures are focused customers.



Q 2. Age of RespondentAge of Respondent

36 36.0 36.0 36.0

37 37.0 37.0 73.0

23 23.0 23.0 96.0

4 4.0 4.0 100.0

100 100.0 100.0

25-35

35-45

45-55

>55

Total


CumulativePercent

Age of Respondent

Age of Respondent

>5545-5535-4525-35

Fre

qu

en

cy

40

30

20

10

0

Findings:

36 % of Respondents are of age 25-35



4 % of Respondents are of age greater than 55

Interpretation

The other demographic classification is the age of the respondents, as India is having

very significant portion of young population so there are more than 73% of the people

are in age group 25 to 45 willing to have cars.



Q 3. Gender of RespondentGender of Respondent

88 88.0 88.0 88.0

12 12.0 12.0 100.0

100 100.0 100.0

Male

Female

Total


CumulativePercent

Gender of Respondent

Gender of Respondent

FemaleMale

Fre

qu

en

cy

100

80

60

40

20

0

Findings:

88 % of Respondents are male

12 % of Respondents are male

Interpretation:

The gender is the prime important factor and the male is dominating the auto sector

and remote sector is growing



Q.4 Income of RespondentIncome of Respondent

19 19.0 19.0 19.0

42 42.0 42.0 61.0

36 36.0 36.0 97.0

3 3.0 3.0 100.0

100 100.0 100.0

Rs 50,000-Rs 1,00,000

Rs 1,00,000-Rs 1,50,000

Rs 1,50,000-Rs,2,00,000

> 2,00,0000

Total


CumulativePercent

Income of Respondent


> 2,00,0000

Rs 1,50,000-Rs,2,00,

Rs 1,00,000-Rs 1,50,

Rs 50,000-Rs 1,00,00

Fre

qu

en

cy

50

40

30

20

10

0

Findings:

19 % of Respondents are under income Rs.50,000-Rs.1,00,000

42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000

36 % of Respondents are under income Rs.1,50,000-Rs.2,00,000

3 % of Respondents are under income greater than >2,00,000

Interpretation

as I have already told that companies are focusing on the middle class segment of the

Indian market in the income group or 1 lack to 2 lack which accounts to 78 %

approximately



Q 5. Marital StatusMarital Status

81 81.0 81.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

Married

Unmarried

Total


CumulativePercent

Marital Status

Marital Status

UnmarriedMarried

Fre

qu

en

cy

100

80

60

40

20

0

Findings:


19 % of Respondents are Unmarried

Interpretation

Among the married and unmarried customers the car owner and the prospective car

customer are the married one the safety provided to the self and the family is prime

importance in buying car and they account to 80%



Q 6. Number of ChildrenNumber oif Children

31 31.0 31.0 31.0

38 38.0 38.0 69.0

12 12.0 12.0 81.0

19 19.0 19.0 100.0

100 100.0 100.0

One

Two

More than 2

No

Total


CumulativePercent

Number oif Children

Number oif Children

NoMore than 2TwoOne

Fre

qu

en

cy

40

30

20

10

0

Findings:

31 % of Respondents have one child

38 % of Respondents have two children

12 % of Respondents have more than two children

19 % of Respondents have no children

Interpretation

as above explained the safety of he family is one of the prime important the children

of the family and there safety is demanding the parents to own a car



Q.7 Dou you own a carDou you own a car

32 32.0 32.0 32.0

68 68.0 68.0 100.0

100 100.0 100.0

Yes

No

Total


CumulativePercent

Dou you own a car

Dou you own a car

NoYes

Fre

qu

en

cy

80

70

60

50

40

30

20

10

0

Findings:

32 % of Respondents have their own car




Q. 8 Is it New car or Second Hand CarIs it New car or Second Hand Car

17 17.0 17.0 17.0

15 15.0 15.0 32.0

68 68.0 68.0 100.0

100 100.0 100.0

New Car

Pre-Owned car

No Car

Total


CumulativePercent

Is it New car or Second Hand Car

Is it New car or Second Hand Car

Pre-Owned carNew Car

Fre

qu

en

cy

17.5

17.0

16.5

16.0

15.5

15.0

14.5

15.0

17.0

Findings:

54 % of Respondents have new car

46 % of Respondents have Pre owned cars

Interpretation

As for the auto industry standards the sales of new and pre – owned cars is 1:1 as per

the research it is showing the same where how car seekers, and pre owned car seekers

are equal.



Q.9 Car Purchased fromCar Purchased from

5 5.0 33.3 33.3

10 10.0 66.7 100.0

15 15.0 100.0

85 85.0

100 100.0

Certified Dealer

UnCertified Dealer

Total

Valid

SystemMissing

Total

Frequency Percent Valid PercentCumulative

Percent

Car Purchased from

Car Purchased from

UnCertified DealerCertified Dealer

Fre

qu

en

cy

12

10

8

6

4

2

0

Findings:

33 % of Respondents have purchased cars from certifieddealers

67 % of Respondents have purchased cars from uncertified dealers



Q.10 How did you come to Know about DealerHow did you come to Know about Dealer

8 8.0 53.3 53.3

5 5.0 33.3 86.7

2 2.0 13.3 100.0

15 15.0 100.0

85 85.0

100 100.0

Advertisements

Friends/Neighbours

Other Dealers

Total

Valid

SystemMissing

Total


Percent

How did you come to Know about Dealer

How did you come to Know about Dealer

Other DealersFriends/NeighboursAdvertisements

Fre

qu

en

cy

10

8

6

4

2

0

Findings:

54 % of Respondents came to know about uncertified dealers through Advertisements

33 % of Respondents came to know about uncertified dealers through Friends &

Neighbours

13 % of Respondents came to know about uncertified dealers through other dealers

Interpretation

Advertisement and word of mouth are playing very important role in him educating

the customers about dealers which account to around 87 % approximately.



Q.11 Would you buy a new car or pre-owned carWould you buy a new car or pre-owned car

21 21.0 30.9 30.9

43 43.0 63.2 94.1

4 4.0 5.9 100.0

68 68.0 100.0

32 32.0

100 100.0

New car

Pre owned car

Dont Want Cars

Total

Valid

SystemMissing

Total


Percent

Would you buy a new car or pre-owned car

Would you buy a new car or pre-owned car

Dont Want CarsPre owned carNew car

Fre

qu

en

cy

50

40

30

20

10

0

Findings:

31 % of Respondents wants to buy new car

63 % of Respondents wants to buy pre owned car

6 % of Respondents don’t wants to buy car

Interpretation

Among the prospective car customer’s majority of him customers are willing to buy

the pre owned cars.



Q.12) If pre-owned car, would you prefer to buy fromIf pre-owned car, would you prefer to buy from

16 16.0 37.2 37.2

27 27.0 62.8 100.0

43 43.0 100.0

57 57.0

100 100.0

Certified Dealer

Uncertified Dealer

Total

Valid

SystemMissing

Total


Percent

If pre-owned car, would you prefer to buy from

If pre-owned car, would you prefer to buy from

Uncertified DealerCertified Dealer

Fre

qu

en

cy

30

20

10

0

Findings:

37 % of Respondents wants to buy pre-owned car from certified dealers

63 % of Respondents wants to buy pre-owned car from uncertified dealers

Interpretation

As budget is the prime concern for the customers who want buy the pre owned cars

and there certified dealer are bit expressive for the customers of this segment. So

majority of them go to Uncertified customers



Q.13) Factors considered in buying a carFactors considered in buying a car

29 29.0 50.0 50.0

23 23.0 39.7 89.7

3 3.0 5.2 94.8

3 3.0 5.2 100.0

58 58.0 100.0

42 42.0

100 100.0

Budget

Milage

Age

Personal orCompany owned

Total

Valid

SystemMissing

Total


Percent

Factors considered in buying a car

Factors considered in buying a car

Personal or CompanyAgeMilageBudget

Fre

qu

en

cy

40

30

20

10

0

Findings:

50 % of Respondents considers budget while buying pre-owned car

40 % of Respondents considers milage while buying pre-owned car

5 % of Respondents considers age while buying pre-owned car

5 % of Respondents considers personal/company owned while buying pre-owned car

Interpretation

As the Indian customers are more concerned about the economy of the car the budget

and mileage are gain important.



Q.14) Have you heard about "Maruti True Value"Have you heard about "Maruti True Value"

40 40.0 40.0 40.0

60 60.0 60.0 100.0

100 100.0 100.0

Yes

No

Total


CumulativePercent

Have you heard about "Maruti True Value"

Have you heard about "Maruti True Value"

NoYes

Fre

qu

en

cy

70

60

50

40

30

20

10

0

Findings:


60 % of Respondents didn’t heard about “Maruti True Value”



Q.16) From where you heard about "Maruti True Value"From where you heard about "Maruti True Value"

19 19.0 47.5 47.5

11 11.0 27.5 75.0

10 10.0 25.0 100.0

40 40.0 100.0

60 60.0

100 100.0

Advertisements

Friends/Neighbours

Other Dealers

Total

Valid

SystemMissing

Total


Percent

From where you heard about "Maruti True Value"

From where you heard about "Maruti True Value"

Other DealersFriends/NeighboursAdvertisements

Fre

qu

en

cy

20

10

0

Findings:

47 % of Respondents heard about “Maruti True Value” from advertisements

26 % of Respondents heard about “Maruti True Value” from friends/neighbours

27 % of Respondents heard about “Maruti True Value” from other dealers

Interpretation

Advertising through different channel of media are to be focused as majority of the

respondents don’t know about the Maruti true value.



Q.17) Would you prefer to buy from "Maruti True Value" if it is provided 3 free services and 1 year gurantee

Would you prefer to buy from "Maruti True Value" if it is provided 3 freeservices and 1 year gurantee

26 26.0 49.1 49.1

27 27.0 50.9 100.0

53 53.0 100.0

47 47.0

100 100.0

Yes

No'

Total

Valid

SystemMissing

Total


Percent

Would you prefer to buy from "Maruti True Value" if it is provided 3 fre

Would you prefer to buy from "Maruti True Value" if it is provided 3 fre

No'Yes

Fre

qu

en

cy

30

20

10

0

Findings:

49 % of Respondents will refer to buy from "Maruti True Value" if it is provided 3

free services and 1 year gurantee

51 % of Respondents will not prefer to buy from "Maruti True Value" if it is provided

3 free services and 1 year gurantee



For Students(Professional)

Q 1) Are you Localite or non localiteAre you Localite or non localite

14 56.0 56.0 56.0

11 44.0 44.0 100.0

25 100.0 100.0

Localite

Non-Localite

Total


CumulativePercent

Are you Localite or non localite

Are you Localite or non localite

Non-LocaliteLocalite

Pe

rce

nt

60

50

40

30

20

10

0

44

56

Findings:

56% of Respondents said they are localites

44% of Respondents said they are non- localites



Q 2) If non- localite how long is it since you are studying here?

If non- localite how long is it since you are studying here?

8 32.0 32.0 32.0

17 68.0 68.0 100.0

25 100.0 100.0

2 Yrs

2 yrs and above

Total


CumulativePercent



2 yrs and above2 Yrs

Pe

rce

nt

80

70

60

50

40

30

20

10

0

68

32

Findings:

32% of Respondents are under 0-2 year courses

68% of Respondents are under 2 year and above courses



Q 3. Monthly Pocket moneyMonthly Pocket money

11 44.0 44.0 44.0

14 56.0 56.0 100.0

25 100.0 100.0

>10000

<10000

Total


CumulativePercent

Monthly Pocket money

Monthly Pocket money

<10000>10000

Pe

rce

nt

60

50

40

30

20

10

0

56

44

Findings:

56% of Respondents are having pocket money >10000

44% of Respondents are having pocket money <10000



Q. 4) Do you stay in hostel or roomdo you stay in hostel or room

7 28.0 28.0 28.0

18 72.0 72.0 100.0

25 100.0 100.0

Hostel

Rented house

Total


CumulativePercent

do you stay in hostel or room

do you stay in hostel or room

Rented houseHostel

Pe

rce

nt

80

60

40

20

0

Findings:

28% of Respondents stay in hostel.

72% of Respondents are stay in rented house.



Q. 5) How far is it from your college?How far is it from your college?

9 36.0 36.0 36.0

9 36.0 36.0 72.0

7 28.0 28.0 100.0

25 100.0 100.0

Far

not very far

close by.

Total


CumulativePercent

How far is it from your college?

How far is it from your college?

close by.not very farFar

Pe

rce

nt

40

30

20

10

0

28

3636

Findings:

36% of Respondents stay far by college.

36% of Respondents stay which is not very far by college.

28% of Respondents stay near by college.



Q.6) Do you own a vehicle?Do you own a vehicle?

15 60.0 60.0 60.0

10 40.0 40.0 100.0

25 100.0 100.0

Yes

No

Total


CumulativePercent

Do you own a vehicle?

40.0%

60.0%

No

Yes

Findings:

60% of Respondents own a vehical

40% of Respondents do not own a vehical.



Q.7) If Yes, is it aif Yes, is it a

9 36.0 60.0 60.0

6 24.0 40.0 100.0

15 60.0 100.0

10 40.0

25 100.0

2 wheeler

4 wheeler

Total

Valid

SystemMissing

Total


Percent

if Yes, is it a

if Yes, is it a

4 wheeler2 wheeler

Pe

rce

nt

70

60

50

40

30

20

10

0

40

60

If you own a 4 wheeler, is it aIf you own a 4 wheeler, is it a

1 4.0 20.0 20.0

4 16.0 80.0 100.0

5 20.0 100.0

20 80.0

25 100.0

new car

pre-owned car

Total

Valid

SystemMissing

Total


Percent



If you own a 4 wheeler, is it a

If you own a 4 wheeler, is it a

pre-owned carnew car

Pe

rce

nt

100

80

60

40

20

0

80

20

If second hand car, have you purchased it locallyIf second hand car, have you purchased it locally

3 12.0 75.0 75.0

1 4.0 25.0 100.0

4 16.0 100.0

21 84.0

25 100.0

Yes

No

Total

Valid

SystemMissing

Total


Percent

If second hand car, have you purchased it locally

If second hand car, have you purchased it locally

NoYes

Pe

rce

nt

80

60

40

20

0

25

75

would you like to buy a second-hand 4 wheeler for time being?




12 48.0 52.2 52.2

11 44.0 47.8 100.0

23 92.0 100.0

2 8.0

25 100.0

Yes

No

Total

Valid

SystemMissing

Total


Percent



NoYes

Pe

rce

nt

60

50

40

30

20

10

0

48

52



would you buy it from awould you buy it from a

4 16.0 33.3 33.3

8 32.0 66.7 100.0

12 48.0 100.0

13 52.0

25 100.0

certified dealer

An uncertified dealer

Total

Valid

SystemMissing

Total


Percent

would you buy it from a

66.7%

33.3%

An uncertified deale

certified dealer



What was the price will/ did you look for ?What was the price will/ did you look for ?

8 32.0 66.7 66.7

4 16.0 33.3 100.0

12 48.0 100.0

13 52.0

25 100.0

50,000- 75,000

75,000- 1,50,000

Total

Valid

SystemMissing

Total


Percent

What was the price will/ did you look for ?

What was the price will/ did you look for ?

75,000- 1,50,00050,000- 75,000

Pe

rce

nt

70

60

50

40

30

20

10

0

33

67



What is the age of the car you would consider?What is the age of the car you would consider?

7 28.0 58.3 58.3

3 12.0 25.0 83.3

2 8.0 16.7 100.0

12 48.0 100.0

13 52.0

25 100.0

2-3 years

4-5 years

5-10 years

Total

Valid

SystemMissing

Total


Percent

What is the age of the car you would consider?

What is the age of the car you would consider?

5-10 years4-5 years2-3 years

Pe

rce

nt

70

60

50

40

30

20

10

0

17

25

58



Have you heard of Bellad Motor’s-'Maruti True Value'- Hubli ?From what source you have heard about it?

From what source you have heard about it?

16 64.0 64.0 64.0

9 36.0 36.0 100.0

25 100.0 100.0

Yes

No

Total


CumulativePercent



NoYes

Pe

rce

nt

70

60

50

40

30

20

10

0








NoYes

Pe

rce

nt

70

60

50

40

30

20

10

0



NoYes

Pe

rce

nt

100

80

60

40

20

0



No

Pe

rce

nt

120

100

80

60

40

20

0



Would you buy a car from 'True Value' if it gave 3 free service backup, and 1 yr guarantee?

Would you buy a car from 'True Value' if it gave 3 free service backup,and 1 yr guarantee?

10 40.0 40.0 40.0

15 60.0 60.0 100.0

25 100.0 100.0

Yes

No

Total


CumulativePercent

Would you buy a car from 'True Value' if it gave 3

free service backup,

Would you buy a car from 'True Value' if it gave 3 free service backup,

NoYes

Pe

rce

nt

70

60

50

40

30

20

10

0

60

40



For Dealers

Since when is your organization established?Since when is your organization established?

3 30.0 30.0 30.0

2 20.0 20.0 50.0

5 50.0 50.0 100.0

10 100.0 100.0

0-5

5-10

10-15

Total


CumulativePercent

Since when is your organization established?

Since when is your organization established?

10-155-100-5

Pe

rce

nt

60

50

40

30

20

10

0



Does your organization use middlemen?Does your organization use middlemen?

5 50.0 50.0 50.0

5 50.0 50.0 100.0

10 100.0 100.0

Yes

No

Total


CumulativePercent

Does your organization use middlemen?

Does your organization use middlemen?

NoYes

Pe

rce

nt

60

50

40

30

20

10

0



What kind of promotional activities do you use? What kind of promotional activities do you use?

What kind of promotional activities do you use?

NoYes

Pe

rce

nt

70

60

50

40

30

20

10

0



NoYes

Pe

rce

nt

100

80

60

40

20

0



NoYes

Pe

rce

nt

60

50

40

30

20

10

0



When is the peak time for the Maximum Sales?



NoYes

Pe

rce

nt

80

60

40

20

0



NoYes

Pe

rce

nt

70

60

50

40

30

20

10

0



NoYes

Pe

rce

nt

100

80

60

40

20

0



What is the average sales per year?What is the average sales per year?

6 60.0 60.0 60.0

3 30.0 30.0 90.0

1 10.0 10.0 100.0

10 100.0 100.0

25- 125

125- 225

225- 325

Total


CumulativePercent

What is the average sales per year?

What is the average sales per year?

225- 325125- 22525- 125

Pe

rce

nt

70

60

50

40

30

20

10

0



ANALYSIS USING SPSSAnalysis Using SPSS

Crosstab of Profession and Buying a New Car or a Pre Owned

Profession of Respondent * Would you buy a new car or pre-owned carCrosstabulation

Count

2 1 3

1 3 4

6 10 1 17

4 10 1 15

3 10 13

5 9 2 16

21 43 4 68

Engineer

Doctor

Lecturar

Business

Advocate

Banker

Profession ofRespondent

Total

New carPre owned

carDont Want

Cars

Would you buy a new car orpre-owned car

Total


Banker

Advocate

Business

Lecturar

Doctor

Engineer

Co

un

t

12

10

8

6

4

2

0

Would you buy a new

New car

Pre owned car

Dont Want Cars

Interpretation

Out of 3 engineers 2 says new car, and 1 say pre owned car.

Out of 4 doctors 2 says new car, and 1 say pre owned car.

Out of 17 lecturers 6 say new car and 10 say pre owned car.

Out of 15 Business men 4 says new car, and 10 say pre owned car.

Out of 13 advocates 3 say new car, and 10 say pre owned car.

Out of 16 bank employees, 5 say new car, and 4 say pre owned car.



Crosstab of Income and Buying a New Car or a Pre Owned

Income of Respondent * Would you buy a new car or pre-owned car Crosstabulation

Count

3 13 3 19

9 27 1 37

9 3 12

21 43 4 68

Rs 50,000-Rs 1,00,000

Rs 1,00,000-Rs 1,50,000

Rs 1,50,000-Rs,2,00,000

Income ofRespondent

Total

New carPre owned

carDont Want

Cars

Would you buy a new car orpre-owned car

Total


Rs 1,50,000-Rs,2,00,

Rs 1,00,000-Rs 1,50,

Rs 50,000-Rs 1,00,00

Co

un

t

30

20

10

0

Would you buy a new

New car

Pre owned car

Dont Want Cars

Interpretation-

Out 19 respondents falling in the income category of Rs 50, 000- 1, 00, 000,

13 prefer pre- owned car.

Out 37 respondents falling in the income category of Rs 1, 00 000- 1, 50, 00


Out 12 respondents falling in the income category of Rs 1, 50, 000- 2, 00, 000




Awareness of Maruti True Value -

i) Age wise-

Crosstab

Count

33 10 43

30 9 39

16 2 18

79 21 100

25-35

35-45

45-60

Age

Total

no yes

aware of Maruti TrueValue

Total

Interpretation-

out 43 respondents falling in the age category of 25- 35, 10 have heard of Maruti

‘True Value’.

Out 39 respondents falling in the age category of 35- 45, 9 have heard of Maruti

‘True Value’.

Out 18 respondents falling in the age category of 45- 60, 2 have heard of Maruti

‘True Value’.

ii) Profession wise-

Crosstab

Count

31 5 36

9 4 13

18 5 23

11 4 15

3 1 4

7 2 9

79 21 100

lecturer

banker

advocate

business

engineer

housewife

PROFESSION

Total

no yes

aware of Maruti TrueValue

Total

- Out of 36 lecturers 5 have heard of True Value.

- Out of 13 bank employees, 4 have heard of ‘True Value’

- Out of 23 advocates 5 have heard of ‘True Value’.

- Out of 15 Business men 4 have heard of ‘True Value’.

- Out of 4 engineers 1 has heard of ‘True Value’.



Findings:

Professionals:

36 % of Respondents are of age 25-35, 37 % of Respondents are of age 35-45,

23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater

than 55

88 % of Respondents are male, 12 % of Respondents are Female

42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 % of

Respondents are under income Rs.1,50,000-Rs.2,00,000


31 % of Respondents have one child and 38 % of Respondents have two

children


Out of remaining 32% of sample size 54 % of Respondents have Pre owned

cars

54 % of Respondents came to know about uncertified dealers through

Advertisements and33 % of Respondents came to know about uncertified

dealers through Friends & Neighbours

Out of 68% of sampling who don’t own car, 31 % of Respondents wants to go

for new car and 63 % of Respondents wants to buy pre owned car and 63%

would buy it from uncertified dealers.

50 % of Respondents considers budget while buying pre-owned car and 40 %

of Respondents considers milage while buying pre-owned car,


Remaining 60% heard it from Advertisements, friends/neighbours

58% say they would not buy from ‘True Value’

Sample of Students-

The sample is non-localities

68% of them are staying here since more than 2 yrs.



56% get more than Rs 10,000/- as their monthly pocket money.

60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler.

80% out of the 40% owning a 4 wheeler, own a ‘Pre-Owned Car’.

70% have purchased it locally.

55% of the sample is interested in buying a car (pre- owned) for time being.

78% said they would buy from an Un-certified Dealer.

Expected price range is- 83% said Rs 50,000- 75,000

53% are aware of the concept of Maruti’s ‘True Value’.

42% have heard it from news papers, and 0% from melas.

71% say they would not buy from Maruti ‘True Value’.

Sample of Dealers -

• 20 % are established in the market since 5-10 years and 50 % are since from

10-15 years

• 50% use middlemen for sales.

• Promotion activities-

60%- use news papers

40% - pamphlets

25%- Melas

• 70% consider festive season as peak point for sales.

• The average sales per year is- 60% said- 25-125 cars

• 30% said- 425- 525 cars

• 67% say customers look for budget

• 68% say customers look for age of the car

• 90% say customers look for mileage





Recommendations and Suggestions -

With my findings the suggestions that I can give are-

For the Professionals-

Target Segment - the target customers whom I suggest Bellad Motors should

concentrate is the advocates, lecturers and petty business men, because they

are the respondents who are keen in buying pre owned cars.

The target can also be segmented age wise, 25-45 are the most interested

segment in buying a pre owned car.

Bellad Motors as a dealer is very well known and well established in the twin

city market, but the concept of ‘True Value’ is not known to MOST of the

localities. Therefore Bellad Motors should make an effort to advertise and

promote ‘True Value’ through various mediums like news papers, melas and

pamphlets.

Mostly the age group of 25-35 is aware of the Maruti’s True Value

concept.

Family size influences in buying a car is proved through the Chi Square

Test, therefore respondents of the lower income category can also be

looked at, for the sales of the pre owned cars.

Out of respondents who own pre owned cars, 98% bought it from a Un-

Certified dealer, this shows that people do not prefer buying pre-

owned cars from certified dealers, therefore Maruti True Value should

make an effort to change this mind set of the people in Dharwad city.

When respondents were asked what have they heard of Maruti True

Value, the responses were mostly negative. ‘Price’ was the major issue

they have with ‘True Value’. They say that it charges much a higher price

than the other dealers; therefore I suggest that either Maruti should try to

reduce the price of the vehicles or Bellad Motors should try to change the

perception of the people by highlighting the plus points like 1 yr warranty

and 3 free services.



‘Pre-Owned’ is more of a sophisticated word for the localities; the other

petty dealers have an upper hand on this front, as they use a much

simpler and an easily understood word ‘second hand’. Therefore I suggest

that Bellad considers this point, as this was the insight got from the

personal interaction with the respondents.

Another drawback of Bellad Motors is that ‘True Value’ section cannot be

easily seen from the highway; only a keen observer can notice it, a

bigger board or a hoarding can be placed in a most strategic location of

the showroom. The Bellad showroom is what comes to peoples

mind when asked if they have heard of Maruti ‘True Value’, it is

because of the easy view from the highway.

For the students-

Most of the students want to buy a pre owned car from an un certified

dealer, because of the price factor, therefore when targeting the students

category lowering the price should be considered. I suggest that the price

can be lowered by not including the free service and warranty on the car,

as the students do not mind it.

The expected price of the pre owned cars is from Rs 50,000- 75,000.

The expected age of the car is mostly 3-5 yrs, which the company can

consider these aspects when targeting the students.

More than 50% of the students are not aware of the True Value concept,

which again calls for advertisements from Bellad Motors.

61% of the students get more than Rs 10,000 as their pocket money, this

signifies that it can be assumed the students are from well to do families

and Bellad Motors can use this as a advantage and try perusing them.

From the personal interaction with the students, the insights gained were,

that the students go to these second hand car melas, and 0% 0f them have



known or heard of True Value conducting melas, therefore I suggest that it

be advertised properly.

The awareness can be spread by using banners and displayed it in front of

the college campus in the most attractive manner.

The students look for sponsors, ‘True Value’ can use this as one of their

tools in spreading the awareness, by displaying one of the pre owned cars,

with the minimal price rate.



Conclusions

The study helped me gain valuable insights in Opportunity Analysis and Consumer

Behavior, towards buying a pre owned car. This project titled “, has been a

knowledge gaining experience for me. By interacting with the respondents and

making visits to the Uncertified Dealers. I have understood that understanding

customers is an art and it takes a very strong brand image for a company to retain &

grow its market share. The results of the survey proved to be both encouraging and

partly discouraging too. The respondents were not very positive about Maruti’s

‘True Value’, which was quite discouraging and a negative sign for the company.

The segment for which Bellad Motors should cater to is a price sensitive segment,

so as the organization should focus on highlighting the additional perquisites that

they would provide with the car, it is going to bond well with the targeted market

and even grow their market to all the geographical areas. Though there are many

competitors in the market for this segment, the company has an added advantage,

but still it cannot rule out the local dealers. But I believe that Bellad Motors Maruti

‘True Value’ has what it takes to become a name to reckon with in the market and I

offer my best wishes for the same and hope that my work will be of some use for

the company.

The majority of the indian population is of the middle class segment which demand for the

low cost and low maintaince cars this very reason has given birth to the pre-owned car

segment which is growing at the accelerating growth rate.
