DISSERTATION

Emerging global trend and growth of sports car segment in

Automobile industry: Perception of Indian consumer

ACKNOWLEDGEMENTS

I express my sincere gratitude to my faculty guide Ms. Meenakshi Gujral for her able guidance, continuous support and cooperation throughout my Dissertation, without which the present work would not have been possible.

I am thankful to maam for her continued guidance and invaluable encouragement in Dissertation.

EXECUTIVE SUMMARY

The main study of my research was to research on the Emerging global trend and growth of sports car segment in Automobile industry: Perception of Indian consumer.

Sports car segment is expanding around the world especially India.

Sports car segment is the fastest growing segment in the automobile industry. Across the

World youth especially with the age group of 25 – 30 years are the major buyers of sports

Cars. The demand for sports cars is increasing rapidly in youth than in the elder generation

due to its sleekness and speed.

The Sports car is an expensive toy for the high income level people.

The demand for sports car is more in developed and developing countries than in

under developed countries.

One more reason for the growth in India is the lowered EMI of the car loan due to which people

tend to buy sports cars.

TABLE OF CONTENTS

1. INTRODUCTION

2. OBJECTIVES

3. OPERATIONAL DEFINATIONS

4. SIGNIFICANCE OF RESEARCH STUDY

5.RESEARCH METHODOLOGY

6. RESULTS & DISSCUSSIONS

7. CONCLUSION

8. LIMITATIONS

9. BIBLIOGRAPHY

10.ANNEXURES

ILLUSTRATIONS TABLE

1. ILLUSTRATION 1

2. ILLUSTRATION 2

3. ILLUSTRATION 3

4. ILLUSTRATION 4

5. ILLUSTRATION 5

6. ILLUSTRATION 6

7. ILLUSTRATION 7

8. ILLUSTRATION 8

9. ILLUSTRATION 9

10. ILLUSTRATION 10

11. ILLUSTRATION 11

12. ILLUSTRATION 12

13. ILLUSTRATION 13

INTRODUCTION

The market of sports car industry in India is a niche market.

Automobile Industry

The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.

History

History of the automobile begins as early as 1769, with the creation of steam-powered automobiles capable of human transport In 1806. The first cars powered by internal combustion engines running on fuel gas appeared, which led to the introduction in 1885 of the ubiquitous modern gasoline or petrol-fueled internal combustion engine.

The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim, Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first production of chevy automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-distance trip in August 1888 - from Mannheim to Pforzheim and back - that the horseless coach was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates this event.

Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower (17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it at least a candidate for the first automobile, and first motorcycle;. Bernardi enlarged the tricycle in 1892 to carry two adult.

BIG THREE AUTOMOBILE MANUFACTURING COUNTRIES

1. United States of America and Canada

General Motors, Ford and Chrysler are often referred to as the "Big Three" or, more recently the "Detroit Three", being the largest automakers in the United States and Canada. They were for a while the largest in the world and two of them are still a mainstay in the top five. Ford has held the position of second-ranked automaker for the past 56 years, being relegated to third in North American sales, after being overtaken by Toyota in 2007. That year, Toyota produced more vehicles than GM, though GM still outsold Toyota that year, giving GM 77 consecutive calendar years of top sales. For the first quarter of 2008, however, Toyota overtook GM in sales as well. In the North American market, the Detroit automakers retained the top three spots, though their market share is dwindling. Honda passed Chrysler for the fourth spot in 2008 US sales. Since then, because of Toyota's woes with their recent unintended acceleration recall, Toyota has fallen back to fourth place in sales, with Honda trailing in fifth place, allowing the Detroit Three reclaim their Big Three title.

The Big Three are also distinguished not just by their size and geography, but also by their business model. The majority of their operations are unionized (United Auto Workers and Canadian Auto Workers), resulting in higher labor costs than other multinational automakers, including those with plants in North America. The 2005 Harbour Report estimated that Toyota's lead in labour productivity amounted to a cost advantage of $350 US to $500 US per vehicle over American manufacturers. The UAW agreed to a two-tier wage in recent 2007 negotiations, something which the CAW has so far refused. Delphi, which was spun off from GM in 1999, filed for Chapter 11 bankruptcy after the UAW refused to cut their wages and GM is expected to be liable for a $7 billion shortfall.

In order to improve profits, the Detroit automakers made deals with unions to reduce wages while making pension and health care commitments. GM, for instance, at one time picked up the entire cost of funding health insurance premiums of its employees, their survivors and GM retirees, as the US did not have a universal health care system.[12] With most of these plans chronically underfunded in the late 1990s, the companies have tried to provide retirement packages to older workers, and made agreements with the UAW to transfer pension obligations to an independent trust. In 2009, the CBC reported that the non-unionized Japanese automakers, with their younger American workforces and fewer retirees will continue to enjoy a cost advantage over the Big Three.

Despite the history of their marques, many long running cars have been discontinued or relegated to fleet sales as the Big Three shifted away resources from midsize and compact cars to lead the "SUV Craze". Since the late 1990s, over half of their profits have come from light trucks and SUVs, while they often could not break even on compact cars unless the buyer chose options. Ron Harbour, in releasing the Oliver Wyman’s 2008 Harbour Report, stated that many small “econoboxes” of the past acted as loss leaders, but were designed to bring customers to the brand in the hopes they would stay loyal and move up to more profitable models. The report estimated that an automaker needed to sell ten small cars to make the same profit as one big vehicle, and that they had to produce small and mid-size cars profitably to succeed, something that the Detroit three had trouble doing.

SUV sales peaked in 1999 but have not returned to that level ever since, due to high gas prices. The Big Three have suffered from perceived inferior initial quality and reliability compared to their Japanese counterparts, which has been difficult to overcome. They have also been slow to bring new vehicles to the market, while the Japanese are also considered the leader at producing smaller, fuel-efficient cars.

Falling sales and market share have resulted in the Big Three's plants operating below capacity (GM's plants were at 85% in November 2005, well below the plants of its Asian competitors), leading to production cuts, plant closures and layoffs. They have been relying heavily on considerable incentives and subsidized leases to sell vehicles. which was crucial to keeping the plants running, which in turn drove a significant portion of the Michigan economy. These promotional strategies, including rebates, employee pricing and 0% financing, have boosted sales but have also cut into profits. More importantly such promotions drain the automaker's cash reserves in the near term while in the long run the company suffers the stigma of selling vehicles because of low price instead of technical merit. Automakers have since been trying to scale back on incentives and raise prices, while cutting production. The subprime mortgage crisis and high oil prices in 2008 resulting in the plummeting popularity of best-selling trucks and SUVs, perhaps forcing automakers to continue offering heavy incentives to help clear excess inventory.

The Big Three sued California Governor Arnold Schwarzenegger to prevent a tailpipe emissions requirement. In response, Governor Schwarzenegger told the Big Three to "get off their butt".

In 2008, with high oil prices and a declining US economy due to the subprime mortgage crisis, the Big Three are rethinking their strategy, idling or converting light truck plants to make small cars. Due to the declining residual value of their vehicles, Chrysler has stopped offering leases on its vehicles.

In 2009, General Motors and Chrysler filed for and emerged from Chapter 11 restructuring in the United States. General Motors of Canada did not file for bankruptcy. The United States and Canadian government control are reported as temporary.

2. Japan

Japanese automakers Toyota, Honda, and Nissan, among many others, have long been considered the leaders at producing smaller, fuel-efficient cars. Their vehicles were brought to the forefront, due to the 1973 oil crisis which had a major impact on the auto industry. For instance, the Honda Civic was considered superior to American competitors such as the Chevrolet Vega and Ford Pinto. The Civic is the best-selling car in Canada for 12 straight years in a row.,

As well, the Nissan 240Z was introduced at a relatively low price compared to other foreign sports cars of the time (Jaguar, BMW, Porsche, etc.), while providing performance, reliability, and good looks. This broadened the image of Japanese car-makers beyond their econobox successes, as well as being credited as a catalyst for the import performance parts industry.

Before Honda unveiled Acura in 1986, Japanese automobiles exports were primarily economical in design and largely targeted at low-cost consumers. The Japanese big three created their luxury marques to challenge the established brands. Following Honda's lead, Toyota launched the Lexus name with the LS 400 which debuted at $38,000 in the U.S., in some markets being priced against mid-sized six cylinder Mercedes-Benz and BMW models), and was rated by Car and Driver magazine as better than both the $63,000 Mercedes-Benz 420 SEL and the $55,000 BMW 735i in terms of ride, handling and performance. It was generally regarded as a major shock to the European marques; BMW and Mercedes-Benz's U.S. sales figures dropped 29% and 19%, respectively, with the then-BMW chairman Eberhard von Kuenheim accusing Lexus of dumping in that market. Nissan's Infiniti became a player on the luxury market mostly thanks to its popular Q45. The vehicle included a class-leading (at the time) 278 hp (207 kW) V8 engine, four wheel steering, the first active suspension system offered on a motor vehicle, and numerous interior luxury appointments. These made it competitive against the German imports like Audi, BMW and Mercedes-Benz, which by the time of Infiniti's release had overtaken Cadillac and Lincoln in dominating the luxury segment of the American market. In 1990, four years after the debut of the Legend and Integra, Acura introduced the NSX, a midship V6 powered, rear-wheel-drive sports car. The NSX, an acronym for "New Sports eXperimental", was billed as the first Japanese car capable of competing with Ferrari and Porsche. This vehicle served as a halo car for the Acura brand. The NSX was the world's first all-aluminum production car, and was also marketed and viewed by some as the "Everyday Supercar" thanks in part to its ease of use, quality and reliability, traits that were unheard of in the supercar segment at the time.

The success of the Japanese automakers contributed to their American counterparts falling into a recession in the late 1970s. Unions and lobbyists in both North America and Europe put pressure on their government to restrict imports. In 1981, Japan agreed to Voluntary Export Restraints in order to preempt protectionism measures that the US may have taken, where it be tariffs or import quotas. Consequently, Japanese companies responded by investing heavily in US production facilities, as they were not subject to the VER. Unlike the plants of domestic automakers, Japanese plants are non-unioned (save for NUMMI), so they have lower wage expenses and do not face the risk of strikes. The VER was lifted in 1994 upon agreement of all members of General Agreement on Tariffs and Trade (GATT). Establishing US production facilities was also a significant step in improving public relations, along with philanthropy, lobbying efforts, and sharing technology. Europe has still largely maintained its protectionism policies against Japanese cars, though their varies considerably.

Toyota has always been by far Japan's largest automaker, and it recently overtook perennial world leader GM in both production and sales by early 2008. As the most aggressive of Japan's companies when it came to expanding into light trucks and luxury vehicles, this proved largely successful. Their high-end brand Lexus became the top-selling luxury marque worldwide in 2000, despite being only started up in 1989. Consequently, Toyota's stock price has traded at a much higher premium than other automakers. Nissan was formerly in second place, until financial difficulties in the late 1990s caused it to lose its place to Honda. Honda is Japan’s second largest automaker and ranks sixth in the world, behind Toyota, GM, Volkswagen, Ford, and Hyundai. Mitsubishi and Mazda are in a distant fourth and fifth place compared to the Japanese Big Three.

Toyota, Honda, and Nissan are all in the BusinessWeek magazine's The 100 Top Global Brands by dollar value, as ranked by leading brand consultancy Interbrand. The Toyota marque was valued at US$22.67 billion, ranking it ninth among all global brand names - automotive or non-automotive, edging out that of Mercedes-Benz.

3. Germany

The automobile industry in Germany is one of the largest employers in the country, with a strong labour force of over 866,000 (2005) working in the industry. In addition, Germany has the largest share of passenger car production in Europe with over 29% market share (source: OICA, 2002), followed by France (18%), Spain (13%) and the United Kingdom (9%). In 2009, Angela Merkel pointed out that losing the lead in electric vehicle technology means Germany also will lose markets.

The German trio Mercedes-Benz, BMW and Audi are often referred to as "Germany's Big Three", although the actual major automobile manufacturers are Daimler AG (producer of Mercedes-Benz) and the Volkswagen Group (producer of Audi), along with BMW.

Volkswagen Group has long been the largest automaker in Europe. As of 2007 it edged out Ford to rank third in the world after General Motors and Toyota. It is also the parent group of Audi, Porsche, SEAT, Škoda, Bugatti, Lamborghini and Bentley.

Daimler AG holds major stakes in other automakers including Mitsubishi Fuso.

BMW also produces MINI branded vehicles, and has been the parent company of Rolls-Royce Motor Cars since 1998.

BMW, Mercedes-Benz and Audi make up about 86% of the luxury midsize market.

NAMES OF MAJOR CAR MANUFACTURERS

A B C D

Abarth Barreiros Citoren Dodge Acura Baolong Cadillac Daewoo Alfa Romeo Bentley Chrysler Daimler AG Aston Martin BMW Chevrolet Daihatsu Audi BMC Austin Buggati

E F G H

Elizalde Fiat GMC HondaEnasa Ford HummerEucort Ferrari Hyundai

I J K L

Infiniti Jaguar Kia LotusIsuzu Lexus

Lamborghini

Landrover

M N O P

Mahindra Nissan Opel PorscheMarcos Navistar ProtonMaserati PeugeotMaybach Panoz MazdaMcLarenMercedes BenzMercuryMGMINIMini (Classic)MitsubishiMitsuoka

R S T V

Renault Skoda Tata VolvoRolls-Royce Scion Toyota VolkswagenRover Suzuki Triumph

Subaru

SsanYong

W

Wuling

AUTOMOTIVE INDUSTRY INDIA

The Automotive industry in India is one of the largest in the world and one of the fastest growing globally. India manufactures over 11 million vehicles (including 2 wheeled and 4 wheeled) and exports about 1.5 million every year. It is the world's second largest manufacturer of motorcycles, with annual sales exceeding 8.5 million in 2009 India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 2.6 million units in 2009. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea and Thailand.

As of 2009, India is home to 40 million passenger vehicles and more than 2.6 million cars were sold in India in 2009 (an increase of 26%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual car sales are projected to increase up to 5 million vehicles by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

A chunk of India's car manufacturing industry is based in and around the city of Chennai, also known as the "Detroit of India". With the Indian city accounting for 60 per cent of the country's automotive exports. Gurgaon and Manesar near New Delhi are hubs where all of the Maruti Suzuki cars in India are manufactured.[ The Chakan corridor near Pune, Maharashtra is another vehicular production hub with General Motors, Volkswagen/ Skoda, Mahindra and Mahindra,Tata Motors in the process of setting up or already set up facilities. Ahmedabad with Tata Motors Nano plant and Halol with General Motors in Gujarat, Aurangabad in Maharashtra, Kolkatta in West Bengal are some of the other automotive manufacturing regions around the country.

History

Following economic liberalization in India in 1991, the Indian automotive industry has demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India's robust economic growth led to the further expansion of its domestic automobile market which has attracted significant India-specific investment by multinational automobile manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000 units and has since grown rapidly to a record monthly high of 182,992 units in October 2009. From 2003 to 2010, car sales in India have progressed at a CAGR of 13.7%, and with only 10% of Indian households owning a car in 2009 (whereas this figure reaches 80% in Switzerland for example) this progression is unlikely to stop in the coming decade. Congestion of Indian roads, more than market demand, will likely be the limiting factor.

The first car ran on India's roads in 1897. Until the 1930s, cars were imported directly. Embryonic automotive industry emerged in India in the 1940s. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. However, the growth was relatively slow in the 1950s and 1960s due to nationalisation and the license raj which hampered the Indian private sector. After 1970, the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury. Japanese manufacturers entered the Indian market ultimately leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint ventures with Indian companies. In the 1980s, a number of Japanese manufacturers launched joint-ventures for building motorcycles and light commercial-vehicles. It was at this time that the Indian government chose Suzuki for its joint-venture to manufacture small cars. Following the economic liberalisation in 1991 and the gradual weakening of the license raj, a number of Indian and multi-national car companies launched operations. Since then, automotive component and automobile manufacturing growth has accelerated to meet domestic and export demands.

Emission norms

In tune with international standards to reduce vehicular pollution, the central government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Ahmedabad, Pune, Surat, Kanpur, Lucknow, Solapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage III.

Exports

India's automobile exports have grown consistently and reached $4.5 billion in 2009, with United Kingdom being India's largest export market followed by Italy, Germany, Netherlands and South Africa. India's automobile exports are expected to cross $12 billion by 2014.

According to New York Times, India's strong engineering base and expertise in the manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing facilities of several automobile companies like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki

In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors announced its plans to export about 50,000 cars manufactured in India by 2011.

In September 2009, Ford Motors announced its plans to setup a plant in India with an annual capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian market and for export.[ The company said that the plant was a part of its plan to make India the hub for its global production business. Fiat Motors also announced that it would source more than US$1 billion worth auto components from India.

Foreign automotive companies in India

BMW India : 1 Series, 3 Series, 5 Series.

Fiat India (In collaboration with Tata Motors): Grande Punto, Linea, Palio Stile.

Ford India : Ford Figo, Ikon, Fiesta, Endeavour.

General Motors India Chevrolet (CSPIL): Spark, Beat, Aveo U-VA, Aveo, Optra, Cruze, Tavera.

Honda Siel : Jazz, City, Civic, Accord.

Hyundai Motor India : Santro, i10, i20, Accent, Verna Transform, Sonata Transform.

Mahindra Renault Logan

Mercedes-Benz India: C-Class, E-Class.

Mitsubishi (in collaboration with Hindustan Motors): Lancer, Lancer Cedia, Pajero

Nissan Motor India: Micra.

Toyota Kirloskar: Etios, Corolla, Innova, Camry.

Volkswagen India: Polo, Vento, Jetta, Passat.

Audi India: A4, A6, Q5.

Škoda Auto India: Fabia, Octavia, Laura, Superb.

Vehicles imported to India

Audi: A8, S4, S6, S8, TT, R8, Q5, Q7. Bentley: Arnage, Azure, Brooklands, Continental GT, Continental Flying Spur,

Mulsanne. BMW[: 5 Series GT, 6 Series, 7 Series, X1, X3, X5, X6, X6 M, M3, M5, M6 and Z4. Bugatti: Veyron Fiat: 500, Bravo. General Motors: Hummer H2, Hummer H3. Honda: Civic Hybrid, CR-V. Hyundai[: Santa Fe. Jaguar: XF, XJ, XK. Lamborghini: Gallardo, Murciélago. Land Rover[: Range Rover, Range Rover Sport, Discovery 4, Freelander 2. Maybach: 57 and 62. Mercedes-Benz: CL-Class, GL-Class, M-Class, R-Class, CLS-Class, S-Class, SL-Class,

SLK-Class, Viano, G-Class, SLS. Mitsubishi: Montero, Outlander, Evo X. Nissan: Teana, X-Trail, 370Z, GT-R. Porsche: 911, Boxster, Panamera, Cayman, Cayenne. Rolls Royce: Ghost, Phantom, Phantom Coupé, Phantom Drophead Coupé. Škoda: Yeti, Superb. Suzuki: Grand Vitara, Kizashi. Toyota: Land Cruiser, Land Cruiser Prado, Fortuner*, Prius. Volkswagen: Beetle, Tiguan, Touareg, Phaeton. Volvo: S60, S80, XC60, XC90.

The Indian automobile industry is the tenth largest in the world with an annual production of approximately 2 million units. Indian auto industry, promises to become the major automotive industry in the upcoming years and the industry experts are hopeful that it will touch 10 million units mark. Indian automobile industry is involved in design, development, manufacture, marketing, and sale of motor vehicles. There are a number of global automotive giants that are upbeat about the expansion plans and collaboration with domestic companies to produce automobiles in India.

SPORTS CAR

A sports car is a small, usually two seat automobile designed for high speed driving and maneuverability.

Sports cars have been either spartan or luxurious, but good handling and high performance is requisite.

Early history

The sports car traces its roots to early 20th century touring cars. These raced in early rallys, such as the Herkomer Cup, Prinz Heinrich Fahrt, and Monte Carlo.

The first true sports cars (though the term would not be coined until after World War One) were the 3 litre made in 1910 Vauxhall 20 hp (15 kW) and 27/80PS Austro-Daimler (designed by Ferdinand Porsche).

These would shortly be joined by the French DFP (which became sporters after tuning by H.M. and W. O. Bentley) and the Rolls-Royce Silver Ghost. In the U.S. (where the type was variously called roadster, speedster, runabout, or raceabout, there was Apperson, Kissel, Marion, Midland, National, Overland, Stoddard-Dayton, and Thomas among small models (which today would be called sports cars), while Chadwick, Mercer, Stutz, and Simplex were among large ones (which might today be called sports sedans or grand tourers).

In 1921, Ballot premiered its 2LS, with a remarkable 75 hp (56 kW) DOHC two liter, designed by Ernest Henry (formerly of Peugeot's Grand Prix program), capable of 150 km/h (90 mph); at most, one hundred were built in four years. This was followed by the SOHC 2LT and 2LTS. The same year, Benz built a supercharged 28/95PS four for the Coppa Florio; Max Sailer won.

Simson in 1924 offered a Paul Henze-designed 60 hp (45 kW) DOHC 2 liter four, the Simson Supra Type S, in a long-wheelbase 120 km/h (60 mph) tourer and 115 km/h (71 mph) twin-carburettor sporter; only thirty were sold, against around three hundred of the SOHC model and 750 of the pushrod-six Type R. Duerkopp's Zoller-blown two liter in 1924, as well.

There was a clear cleavage by 1925. As four-seaters were more profitable, two-seaters increasingly turned over to specialst manufacturers, led by Alvis, Aston-Martin, and Frazer-Nash, with shoestring budgets, fanatic followers, and limited sales (today exemplified by Aston and Morgan): between 1921 and 1939, 350 Astons were built; 323 Frazer-Nashes in the period 1924-39.

By the end of the 1920s, AC produced a 2 liter six, the 3.5 liter Nazzaro had a three-valve OHC (only until 1922), while French makers Amilcar, Bignan, Hispano-Suiza, and Samson had the typical small four-cylinder sporters and Delage, Hotchkiss, and Chenard-Walcker the large tourers. Benz introduced the powerful SS and SSK, and Alfa Romeo, the Vittorio Jano-designed 6C.

Two companies would offer the first really reliable sports cars: Austin with the Seven and Morris Garages (MG) with the Midget. The Seven would quickly be "rodded" by numerous companies (as the Type 1 would be a generation later), including Bassett and Dingle (Hammersmith, London); in 1928, a Cozette blower was fitted to the Seven Super Sports, while Cecil Kimber fitted an 847 cc Minor engine, and sold more Midgets in the first year than MG's entire previous production.

Finally, a sports car is coming into the Indian market. A majority of automobile manufacturers have always shunned away from introducing a high speed, high performance sports cars in the country mainly owing to the road conditions and the driving sense of the consumers here. In spite of the large consumer base, a number of companies have been reluctant to tap its potential as a sports car market.Currently there are a handful of people in India who own sports cars with special permits. Also buying a sports car is a tedious process with many of them having to import the car from other countries. The Chevrolet company which staged a big exhibition to announce its entry into the Indian market did not put up the corvette for test drives, though initially the company did think about selling it. The conditions of the roads with the low ground clearance did not allow it to be feasible. Also majority of the drivers are rash which could lead to a large number of accidentsSome automobile manufacturers have showrooms for their supercars in The national Capital. Some companies like Lamborghini ands Porsche do not have many showrooms according to the number of cars sold. There is not a large market for supercars and sports cars in India. This is mainly du e to the expensive nature of sports cars which limits the purchasing power.This trend is slowly changing with more number of Indian consumers becoming powerful buyers. The market for supercars is growing and this is the best time to launch the supercars in our country. Now, with a number of luxury cars an d companies making their way into India and the large amount of development in infrastructure, Mc Laren is looking at India as a potential launch ground for its new MP4-12C sports car.  The car is a full carbon fiber body. Mc Laren are the pioneers in carbon fiber technology introducing the, material in their F1 cars primarily. The sheer strength and the robustness of the material makes it more suitable for using in the sports cars. The car is a two seater with a mid mounted engine and it is the best in terms of quality design and styling.

The car is not aimed at good mileage. The engine on this vehicle pumps out 600bhp and has a top speed of over 200moh. The car is created by completely using Mc Laren technology with no parts or components from other vehicles or companies. The car uses the Mc Laren F1 technology both  in terms of engineering and design, it has been designed to promote maximum aerodynamics and minimum air resistance. The car is also rumored to come into the Indian market with a speed limiter initially.The company is aiming at the Indian youth segment many of whom are interested in fast and stylish cars. The two seater mode l is not very economically viable to the Indian population but the market demand is shifting towards more expensive and stylish goods. The Mc Laren MP4-12C is all stet for a launch by early 2011 and the sales are to go through established retailers by mid 2011.

Major Sports car manufacturing companies

1. PORSCHE

Porsche Automobil Holding SE, usually shortened to Porsche SE Societas Europaea or European Public Company, is a German automotive manufacturer of luxury high performance automobiles, owned by the Piëch-Porsche family. Porsche SE is headquartered in Zuffenhausen, a city district of Stuttgart, Baden-Württemberg.

Porsche SE has one main subsidiary – Dr. Ing. h.c. F. Porsche AG, often shortened to Porsche AG, which is responsible for the actual production and manufacture of the Porsche automobile line. The company is majority owned by Volkswagen AG, the parent company of the Volkswagen Group, which owns a 50% stake.

The company was founded as Dr. Ing. h. c. F. Porsche GmbH in 1931 by Ferdinand Porsche, an Austrian engineer born in Maffersdorf, during the time of the Austro-Hungarian Empire (today Vratislavice nad Nisou, Czech Republic), and Porsche's son-in-law Anton Piëch, an Austrian advocate. Ferdinand Porsche is also known for designing the first Volkswagen, but Béla Barényi is credited with having conceived the basic design five years earlier. The company currently produces 911 (997), Boxster and Cayman sports cars and Cayenne sport utility vehicles. The latest model line, the four-door Panamera saloon (sedan), was launched on Monday, 20 April 2009.

In August 2009, Porsche SE and Volkswagen AG reached an agreement that the two companies would merge in 2011, to form an "Integrated Automotive Group.

In a May 2006 survey, Porsche was awarded the title of the most prestigious automobile brand by Luxury Institute, New York; it questioned more than 500 households with a gross annual income of at least US $200,000 and a net worth of at least US $720,000. The current Porsche model range includes sports cars from the Boxster roadster to their most famous product, the 911. The Cayman is a hard top car similar to the Boxster in a slightly higher price range. The Cayenne is Porsche's mid-size luxury sport utility vehicle (SUV). The limited run Carrera GT ceased production in May 2006. A high performance luxury saloon/sedan, the Panamera, was launched on Monday, 20 April 2009, and is due to be released worldwide in September and October. Recently, a spider version of the Boxster was announced, and became available after it was unveiled at the 2009 Los Angeles Auto Show.

2. FERRARI

Ferrari S.p.A. is an Italian sports car manufacturer based in Maranello, Italy. Founded by Enzo Ferrari in 1929, as Scuderia Ferrari, the company sponsored drivers and manufactured race cars before moving into production of street-legal vehicles as Ferrari S.p.A. in 1947. Throughout its history, the company has been noted for its continued participation in racing, especially in Formula One, where it has had great success.

Enzo Ferrari never intended to produce road cars when he formed Scuderia Ferrari in 1928 as a sponsor for amateur drivers headquartered in Modena. Ferrari prepared, and successfully raced, various drivers in Alfa Romeo cars until 1938, when he was hired by Alfa Romeo to head their motor racing department.

Ferrari has considered making hybrids. A F430 Spider that runs on ethanol was displayed at the 2008 Detroit Auto Show. Ferrari has announced that a hybrid will be in production by 2015. At the 2010 Geneva Motor Show, Ferrari unveiled a hybrid version of their flagship 599. Called the "HY-KERS Concept", Ferrari's hybrid system adds more than 100 horsepower on top of the 599 Fiorano's 612 HP.

3. LAMBORGHINI

Automobili Lamborghini commonly referred to as Lamborghini is an Italian automaker. The company was founded by manufacturing magnate Ferruccio Lamborghini in 1963, with the objective of producing a refined grand touring car to compete with established offerings from marques like Ferrari.

The company's first models were released in the mid-1960s, and were noted for their refinement, power, and comfort. Lamborghini gained wide acclaim in 1966 for the Miura sports coupé, which established mid-engine design as the standard layout for high-performance cars of the era. After a decade of rapid growth, hard times befell the company in the mid-1970s, as sales plunged in the wake of the 1973 world financial downturn and oil crisis. After going through bankruptcy and three changes in ownership, Lamborghini came under the corporate umbrella of the Chrysler Corporation in 1987. The American company failed to return the automaker to profitability and sold it to Indonesian interests in 1994. Lamborghini's lack of success continued through the 1990s, until the company was sold in 1998 to Audi, a subsidiary of the Volkswagen Group, a German automotive concern. Audi's ownership marked the beginning of a period of stability and increased productivity for Lamborghini, with sales increasing nearly tenfold over the course of the 2000s, peaking in record sales in 2007 and 2008. The world financial crisis in the late 2000s negatively affected luxury car makers worldwide, and saw Lamborghini's sales drop back to pre-2006 levels.

Assembly of Lamborghini cars continues to take place at the automaker's ancestral home in Sant'Agata Bolognese, where engine and automobile production lines run side-by-side at the company's single factory. Fewer than 3,000 cars roll off the production line each year. The company currently offers two variations of a single model, the V10-powered Gallardo coupé and roadster. The flagship V12-powered Murciélago coupé and roadster were discontinued at the end of 2010, with a successor expected in 2011

4. ASTON MARTIN

Aston Martin Lagonda Limited is a British manufacturer of luxury sports cars, based in Gaydon, Warwickshire. The company name is derived from the name of one of the company's founders, Lionel Martin, and from the Aston Hill speed hillclimb near Aston Clinton in Buckinghamshire. It also designs and engineers cars which are manufactured by Magna Steyr in Austria.

From 1994 until 2007 Aston Martin was part of the Ford Motor Company, becoming part of the company's Premier Automotive Group in 2000. On 12 March 2007, it was purchased for £479 million by a joint venture company, headed by David Richards and co-owned by Investment Dar and Adeem Investment of Kuwait and English businessman John Sinders. Ford retained a US$77 million stake in Aston Martin, valuing the company at US$925 million.

Aston Martin was founded in 1913 by Lionel Martin and Robert Bamford. The two had joined forces as Bamford & Martin the previous year to sell cars made by Singer from premises in Callow Street, London where they also serviced GWK and Calthorpe vehicles. Martin raced specials at Aston Hill near Aston Clinton, and the pair decided to make their own vehicles. The first car to be named Aston Martin was created by Martin by fitting a four-cylinder Coventry-Simplex engine to the chassis of a 1908 Isotta-Fraschini.

They acquired premises at Henniker Place in Kensington and produced their first car in March 1915. Production could not start because of the outbreak of World War I, and Martin joined the Admiralty and Bamford the Royal Army Service Corps. All machinery was sold to the Sopwith Aviation Company.

OBJECTIVES

The main objectives of the study were as follows:-

To study the spending power of the consumer to buy for buying a sports car. What brands do the buyers prefer for buying a sports car. To study the factors that affects the consumer while buying a sports car.

OPERATIONAL DEFINITIONS

The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue.

The term automotive industry usually does not include industries dedicated to automobiles after delivery to the customer, such as repair shops and motor fuel filling stations.

A sports car is a small, usually two seat automobile designed for high speed driving and maneuverability. Sports cars have been either spartan or luxurious, but good handling and high performance is requisite.

Significance of research study

RESEARCH METHODOLOGY

METHOD OF COLLECTING DATA

The research includes both Primary and Secondary data.

The primary data was collected by getting some questionnaires filled by the consumers.

Secondary data is being collected by through internet: various websites. Some articles on

the research topic were also taken into consideration.

SOURCES:

Internet

Articles from Hindustan times.

TOOLS FOR COLLECTING DATA

The basic tool for collecting data in this research was through getting the questionnaires filled

through the consumers.

No. OF SAMPLES

The no. of samples taken in this research was 40.

AREA OF SAMPLING

The area of sampling of this research was New Delhi, India.

RESULTS AND DISSCUSSIONS

In this research it was observed that there has been a growth of sports car industry in India.

The results and discussion of the research includes pie charts and graphs which were made on the

basis of the questions of the questionnaires filled by the consumers.

The illustration will begin from the next page.

ILLUSTRATION 1

BUSINESSSERVICE

PROFESSION OF THE CONSUMERS

ILLUSTRATION 2

5 LAKH - 10 LAKH

10 LAKH - 15 LAKH

15 LAKH - 20 LAKH

ABOVE 20 LAKH0

5

10

15

20

25

30

Series1

INCOME LEVEL (P.M.) OF THE CONSUMERS OF THE

SPORTS CARS

PROFESSION OF THE CONSUMERS

The pie chart that indicates the profession of the consumers is illustration no. 1

The diagram indicates that 97.5 % of the people who own sports cars were

Businessmen / businesswomen and only 2.5 % were from the service sector who

Own the sports cars. This shows that as sports car are very expensive so majorly

businessmen can own them as compared to people working in the service sector.

INCOME LEVEL (P.M) OF THE CONSUMERS OF THE SPORTS CARS

The graph that indicates the income level of the consumers is illustration no.2

The graph indicates the various levels of income and tells us that people with the income

of 15 lakh – 20 lakh own sports cars majorly.

ILLUSTRATION 3

20 - 25 YRS 25 - 30 YRS 30 - 35 YRS ABOVE 35 YRS0

5

10

15

20

25

Series1

AGE GROUP

ILLUSTRATION 4

50 LAKH - 1 CRORE

1 CRORE - 1.5 CRORE

1.5 CRORE - 2 CRORE

ABOVE 2 CRORE0

5

10

15

20

25

Series1

MONEY PREFFERED FOR SPENDING ON THE PURCHASE OF A

SPORTS CAR

AGE GROUP OF PEOPLE WHO OWN SPORTS CARS

The graph that indicates the age group of the people who own sports cars is

Illustration 3.

The graph shows that people with the age group of 25 – 30 yrs tend to own or buy

Sports car majorly as compared to the other age groups as mentioned in the graph.

MONEY PREFFERED FOR SPENDING ON THE PURCHASE OF A

SPORTS CAR

The graph that indicates the money preferred for spending on the purchase of a sports

car is illustration 4.

The graph shows that maximum people tend to spent an amount of Rs. 1.5 – 2 crore for \

Buying a sports car as most of the good options of sports car are available in this price

Range.

ILLUSTRATION 5

PORSCHE

LAMBORGHINI

FERRARI

ASTON M

ARTIN AUDI

MERCED

EZ

MAZDA

BUGGATIBMW

BENTLE

Y

OTHER

S0123456789

10

Series1

THE BRAND WHICH THE PEOPLE PREFER THE MOST FOR

BUYING A SPORTS CAR

ILLUSTRATION 6

YESNO

PREFER A CONVERTIBLE ROOF

THE BRAND WHICH THE PEOPLE PREFER THE MOST FOR BUYING A

SPORTS CAR

The graph that indicated brand preferred by people is illustration 5.

The graph indicates that 9 out of 40 people prefer Mercedez brand for buying a sports car as

Compared to other brand like Ferrari, Porsche, etc.

PREFER A CONVERTIBLE ROOF

The pie chart that indicates that people prefer a convertible roof top is illustration 6.

The pie chart indicates that 75% of 40 people prefer a convertible roof top and 25 % people

prefer a hard top roof car.

ILLUSTRATION 7

2 SEATER 4 SEATER0

5

10

15

20

25

30

Series1

NO. OF SEAT PREFERENCE

ILLUSTRATION 8

STATUS SYMBOL SHOW OF INTEREST IN CARS

OTHERS0

5

10

15

20

25

30

Series1

PURPOSE FOR BUYING A SPORTS CAR

NO. OF SEAT PREFERENCE

The graph that indicates no. of seat preference is illustration 7.

The graph indicates that what seating does the people prefer i.e. 2 seater or

4 seater.

The graph shows that majorly people prefer a 2 seater sports car over a 4 seater one.

PURPOSE FOR BUYING A SPORTS CAR

The graph indicates the purpose of buying a sports car is illustration 8.

The graph indicates that 23 out of 40 people tend to buy sports car because

they have interest in cars and the reasons for the rest are status symbol ,

show off , etc.

ILLUSTRATION 9

ENGINE P

OWER

SHAPE

ACCELERATIO

N TIME

LOOKS

BRAND

INTERIO

R

POPULARITY

OTHER

S0

2

4

6

8

10

12

14

Series1

FACTORS THAT AFFECT THE MOST WHILE PURCHASING

A SPORTS CAR

ILLUSTRATION10

YESNO

CUSTOMIZATION OF CAR ACCORDING TO TASTE

FACTORS THAT AFFECT THE MOST WHILE PURCHASING

A SPORTS CAR

The graph that indicates the factors affecting while buyin a sports car is illustration 9.

The graph indicates that majorly people tend to see as brand of the car as the major factor that

affects the buying decision of a consumer and other factors that are too taken into consideration

are interiors , engine power , looks , etc.

CUSTOMIZATION OF CAR ACCORDING TO TASTE

The graph that indicates the customization according to taste is illustration 10.

The graph indicates that all the 40 people who filled in the questionnaires like

there car to be customized according to them as they are paying a huge amount

of money for purchasing it.

Illustration 11

YESNO

MEMBER OF A SPORTS CLUB

Illustration12

V6 V10 V12 W120

2

4

6

8

10

12

14

16

18

Series1

ENGINE POWER PREFERENCE

MEMBER OF A SPORTS CLUB

The graph that indicates are they a member of a sports club is illustration 11.

The graph indicates that all the 40 people are members of a sports car club by the

Name of Canon Ball Club and Gautam Singhania super car club.

ENGINE POWER PREFERENCE

The graph that indicates engine power preference is illustration 12.

The graph indicates people prefer an engine power of V12 and V10 as compared to

an V6 or a W12.

ILLUSTRATION 13

YESNO

PREFERENCE OF PROJECTOR LIGHTS

PREFERENCE OF PROJECTOR LIGHTS

The pie chart that indicates preference of projector lights in illustration 13.

The pie chart indicates that 95 % people prefer projector lights in there car and rest

5 % do not prefer.

CONCLUSION

The advancing demand of sports car across the globe represents a promising trend to

the growth of the automobile industry.

The rising demand of sports cars in India is a sign of people getting richer day by day

as well as there desires are also increasing and there is also increase in the spending

power of the consumer which shows that economy of India is also developing at a fast rate.

There has been a 200 % growth in the automobile industry in India especially in the luxury

segment and the sports car segment. Due to which European luxury car makers are

introducing most of there sports cars models in India due to the rising demand and interest

of the people.

Due to the risen demand of sports cars special sports car clubs have been formed

in India where the membership criterion to join the club is to have a sports car

or the membership is only by invitation.

The major sports car clubs in India are Canon Ball Club and Gautam Singhania super car club

India.

LIMITATIONS

Limitation on time. All sports car manufacturers do not have showrooms in India so difficult for research. Limitation of resources.

BIBLIOGRAPHY

www.google.com www.porsche.com www.ferrari.com www.astonmartin.com www.bmw.com/india News papers like Hindustan times , Times of india Magazines like Autocar , etc

ANNEXURES