maruti m.ba certificate
TRANSCRIPT
A
PROJECT STUDY REPORT
ON
Maruti Suzuki India Ltd
“The study of consumer buying behavior towards small &
medium car segment.”
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration
Supervision by :- Submitted by:-
Shubhangi Mam Rajendra Singh
MBA IIIRD Sem
(2009-2011)
ST. WILFRED’S INSTITUTE OF MANAGEMENT & TECHNOLOGY,
JAIPUR
1
CERTIFICATE
This is to certify that Mr. Rajendra Singh student of final year of Master of Business
Administration (M.B.A.) has completed project entitled “The study of consumer
buying behavior towards small & medium car segment.” Under my supervision.
This project report has been submitted in the lieu of paper 6th for M.B.A. 4th Sem.
To the best of my knowledge, it is the original piece of work and the project is fit for the
submission in partial fulfillment of the degree of M.B.A
2
DECLARATION
I, Rajendra Singh declare that the project report titled “The study of consumer
buying behavior towards small & medium car segment.” based on my project
study.
This project report is original work and this has not been used for any purpose
anywhere.
Rajendra Singh
MBA 4th Sem
3
PREFACE
Practical Knowledge is an important suffix to theoretical knowledge. One cannot merely
depend upon the theoretical knowledge. Classroom lectures make the fundamental
concept of Management clear. They also facilitate the learning of practical things.
However, classroom lectures must be correlated with the practical training situations. It
is in the sense that practical training in a company has a significant role to play in the
subject of business management. Market Research is indeed an Ancient Art; it has
been practiced in one form of the other since the day of Adam and Eve. Its Emergence
is of relatively recent origin for success of any business and within this relatively short
period, it has joined a carry great deal of importance.
The demand for professional managers is increasing day by day. To achieve profession
competence, manager ought to be fully occupied with theory and practical exposure of
management. A comprehensive understanding of the principle will increases their
decision making ability and sharpens their tools for this purpose. As an essential part of
our course, I got the privilege to have training in MARUTI SUZUKI the work has been
carried over a span of 2 months. The scope of the work under taken by me includes
customer response in Jaipur and about their views about our products and services.
4
ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr. Gyan Chand Gupta (General
Manager), for guiding me right from the inception till the successful completion of the
project.
I also express my sincere thanks to Mr. Dharmendra Singh Tanwar (Sales Manager)
for extending their valuable guidance, support for literature, critical reviews of project
and the report and above all the moral support he had provided to me with all stages of
this project.
I would also like to thank the supporting staff for help and cooperation throughout our
project.
I also give my sincere thanks to Shubhangi Mam my Project supervision ,MBA
Rajendra Singh
MBA 4th Sem.
5
EXECUTIVE SUMMARY
Title
The Study of Consumer buying behavior towards small & medium car segment with
special reference to Maruti Suzuki India ltd.
Issue
Consumer behaviour is ‘the mental and emotional processes and the observable
behaviour of consumers during searching purchasing and post consumption of a
product and service. People buy different products from different brands to satisfy their
needs. Consumer purchases are influenced strongly by cultural, social, personal and
psychological characteristic. Although marketers cannot control such factors, they must
give attention to them. Boston Analytics, a customized knowledge services company,
has announced the release of its “Automotive Industry in India” report as a part of the
series of monthly reports that analyze consumer observations and sentiments regarding
a automotive sector. According to this report consumer think about the following aspect
while making decision of purchase a car:
CAR PURCHASING PREFERENCES
Primary factors of preference
Price and fuel efficiency are the primary features that consumers expect today.
There will be an increase in the importance of fuel efficiency in approximately
three to five years from now for consumers.
Sales service, brand image/prestige, and resale value are secondary factors of
choice today and will remain so for the coming three to five years.
Environmental issues have yet to take root in India and do not show signs of
becoming a major factor for coming three to five years.
6
Car size
Affluence and aspiration are growing in parallel—The Indian consumer prefers a
mid-size car.
Our survey reveals that approximately one in two Indian consumers prefer a
roomy mid-size family car.
Indian versus foreign brand
There is evidence of “buy-Indian” mindset across the metros
Approximately three in four respondents prefer an Indian brand over a foreign
one recently launched versus established model
Indian consumers are divided in their preference for recently launched versus
established models of cars.
According to the results of the survey, 58% of respondents nationwide prefer a
recently launched model by a slight plurality.
Color preference
The color pie in the Indian car market shows that White is the most preferred
color, closely followed by Black and Silver
Approximately 29% of respondents preferred White, followed by 27% and 21% of
respondents opting for Black and Silver/Grey respectively
Thus the main issue in this project is to analyzing consumer buying pattern while they
make decision regarding purchase of car especially in small car segment.
PROBLEM
Thus problem of this project report is studying the consumer buying pattern regarding
small & medium car segment with special reference to Maruti Suzuki India ltd and study
about the consumer perception and attitude toward the same.
7
TABLE OF CONTENT
8
S. NO. Descriptions Page no.
1. Introduction to the industry 9-16
2. Introduction to the Organization 17-63
3. Research Methodology
1. Title of the Study
2. Duration of the Project
3. Objective of the Study
4. Types of Research
5. Collection Method and Sample Size
6. Scope of Study
7. Limitation of Study
64-67
4. Facts and Findings 68
5. Data Analysis and Interpretation 69-73
6. Swot Analysis 74-75
7. Conclusion 76
8. Recommendation and Suggestion 77
9. Appendix 78-80
10. BIBLIOGRAPHY 81
1. INTRODUCTION TO THE INDUSTRY
The automobile industry is one of the core industries in India economy, whose prospect
is reflective of the economic resilience of the economy. Indian automobile industry has
come a long way to from the era of the Ambassador car to Maruti 800 to latest M&M
Xylo. An industry is highly competitive with a number of global and Indian companies
present today. It is growing at a pace of around 18% per annum for the last five years
and is projected to be the third largest auto industry by 2030 and just behind to US &
China, according to a report. The industry is estimated to be a US$ 34 billion industry.
With the liberalization of the economy, India has become the playground of major global
automobile majors.
Indian Automobile industry can be divided into three segments i.e. two wheeler, three
wheeler & four wheeler segment. Two wheeler segments enjoys 75% market share of
automobile industry, followed by passenger vehicles with the 16% share of market.
Three wheeler segments have merely 4% share in domestic market. The domestic two-
wheeler market is dominated by Indian as well as foreign players such as Hero Honda,
Bajaj Auto, Honda Motors, TVS Motors, and Suzuki etc. Maruti Udyog and Tata Motors
are the leading passenger car manufacturers in the country. And India is considered as
strategic market by Suzuki, Yamaha, etc.
The major players have not left any stone unturned to be global. Major of the players
have got into the merger activities with their foreign counterparts. Like Maruti with
Suzuki, Hero with Honda, Tata with Fiat and latest Mahindra with Renault.
In two-wheeler segment, motorcycles have the major share, Hero Honda, the leading
bike manufacturer has more than 50% share in two-wheeler segment, followed by Bajaj
Auto. In passenger car segment, Maruti Suzuki contributes the 52% market share, with
complete monopoly over the small car segments. M&M enjoy the 42% market share in
Multi Utility Vehicle in domestic market.
9
Current Scenario
The Indian automobile industry crossed a landmark with total vehicle production
of 10 million units.
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.
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 every day, 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
product excitement in the segment estimated at about 10,000 units annually.
The commercial vehicles are likely to grow at a CAGR of 5.2 per cent. 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.
10
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 against
3, 18,430 units in 2004-05.
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
against 1, 19,924 units in 2004-05.
Three-wheelers sales rose by 17 per cent at 3, 60,187 units against 3, 07,862
units in 2004-05. In this competitive scenario consumer has number of choices
for selecting motorbikes as well as cars thus there are number of choices and
brands available to the customer. The basic issue with this project is to study
about the consumer preference toward selecting/purchasing small & middle
segment or economic car among the available alternatives.
11
Auto industry in 2009
All the major auto companies enjoyed the high growth ride till the mid 2009. But at the
end of the year, industry had to face the hard truth and witnessed the fall in sales
compared to last year. In December 2009, overall production fell by 22 % over the same
month last year. Global recession has hit the Indian auto industry, India is strong and
growing industry but the impact of recession is evident now on industry as sales &
growth of automobile companies have declined.
Passenger Vehicles segment registered negative growth. One of its supporting facts is
that the sales in December 2009 for passenger vehicles fell by 13.86% over December
2008. Maruti- the leading car manufacturer, registered 10% fall in sells (56293 units), as
compared to December’08 (62,515 units). But interestingly, Hyundai motors, the second
largest car maker of country, registered a growth in sells, with the help of export;
Hyundai Motors reported 19% growth.
Two Wheelers registered minor growth of 1.85 % during April – December 2009.
However, Two Wheelers sales recorded 15.43 percent fall in December 2009 over the
same month last year. In two wheeler segment, Hero Honda has witnessed 10% fall
(215,931 units in Dec 2009) in sales as compared to December 2009 (240,532 units).
Bajaj Automobile has registered 33% fall in its over all two wheeler sells, compared to
last year. The company has reported 37% negative growth in bike sells.
Although the year 2009 saw a record launches of new products of various categories.
Maruti launched A Star, its new small segment car. Honda Motors launched the new
version of Honda city, its best selling sedan, also Civic Hybrid. Hyundai motor was not
also far behind, in the end of the year, Hyundai launched its much awaited sedan i20.
In Bikes segments, this year was full of happening. Yamaha introduced its two new hi-
end models YZF & R15. Suzuki Motorcycle India also launched its legendary bike
Hayausa & Intruder in Indian market.
12
Road ahead- 2010
The Indian automobile market is expected to grow by 9%. Although the industry has
faced the brunt of recession, the sales figures of December’09 are the true indicator of
bang of global slow down. India with growing middle class, strong economy (although
recession has hit the economy, but to be on positive side, will come over soon) and with
trained workforce has a strong future of automobile industry. All the big foreign players
are eyeing on Indian market.
·Japanese company Nissan Motors has identified India as its global
manufacturing hub
Hyundai has invested huge money in India and has positioned it as small car
manufacturing hub in the word
·General Motors, Mercedes –Benz, Skoda Auto, all have big plans for India and
will invest huge funds
It is sacrilege to say that the world economy has been undergoing with the huge crisis.
And automobile industry is not far behind in league. Undoubtedly, the coming time
would be a challenge for the automobile industry. Bike manufacturers have already
started facing the problems, loan & finance for new bike is not available easily in semi
urban & rural market. Banks and other financial institutions have baked out from
finance.
In spite of all these, this year will see a positive growth with some new launches of cars
& bikes. We should not forget the launch of much awaited Tata Nano which will soon be
seen on Indian roads. Bajaj Auto is planning to roll out 6 new bikes in the year 2009.
Hero Honda, Suzuki Motorcycle, Yamaha India, all is set to knock the Indian market
with their new products.
I believe that Indian automobile industry is bit immune in comparison to its competitors.
Global big three, GM, Ford & Chrysler are not in good state of health, US Govt. has
released a bailout, Considering all these facts & current situations, we can conclude the
following :-
13
Indian automobile industry may face the liquidity crunch in the upcoming
months. Few projects have already been on halt. For example, Honda Motors
has stopped work on its upcoming project in Rajasthan
Sells may drop in the upcoming months as the finance for the new products are
easily not available. Motorcycle manufactures will face the brunt of financial
institutions unwillingness of providing loans to the smaller cities.
The Government of India should make the norms and policies bit lenient like
making the loan process easier & affordable, asking the public sector banks to
cut the interest rates, etc.
Global Recession Hits Indian Auto Industry
Global recession has devastated the global auto industry with pinching effects on the
Indian auto industry. India is a strong and growing economy but the hit of recession has
put red marks on the entire balance sheet of the Indian economy.
Among the leading car manufacturers, General Motors and Ford were the first one to
file for bankruptcy. GM is struggling to stay alive and claims that the company has just
enough cash to continue its operations. Even the merger talks of GM and Chrysler have
been officially brought to a halt because of the liquidity crunch.
U.S sales have fallen down by 32% which has directly affected the HYPERLINK
"http://www.carazoo.com/article/1911200802" Indian car industry where GM has
recorded a fall of 45%, Ford of 30% and Chrysler down by 35%. All the three major car
manufacturers have reported declined growth after the hit of recession.
After the industry experienced a heavy fall in the month of August due to inflation,
September proved to be a promising month with things setting out at the right place.
Then again the market went in the negative terrain swayed by the wind of recession.
October usually is considered to be the best month for car sales because of the festive
season. Unfortunately, this year it proved to be a curse for the Indian auto industry. At
one end of the spectrum, car manufacturers like Tata Motors, GM, Hyundai, Ford,
Renault, Mahindra, and HYPERLINK "http://blog.carazoo.com/2008/11/maruti-cuts-
production.html" Maruti Suzuki are investing huge amounts to establish new production
14
plants and line up launch of car models. At the other end of the spectrum, SIAM has cut
down the growth forecast of automotive sales from 12.5% to 9.5%.
This initiative taken by SIAM further forced few car manufacturers like Tata Motors and
Maruti Suzuki to cut down their production which further took away the job of almost 300
workers. Even Mahindra-Renault reduced the number of production units of their Logan.
In addition, the severe liquidity crunch in the U.S market has also forced many of the car
buyers to cut upgrades to bigger cars and many are pushed back from buying new cars.
With deteriorating car sales, even production has gone down to a great extent, which
has eventually put a negative impact on the auto component industry.
In October, overall car sales declined to about 9.05% over October 2007 and the car
production fell down to about 12.32%. Further to that even the month of November was
not successful in bringing some charm to the industry. Infact, November recorded the
steepest fall in car sales in the past five years.
Maruti Suzuki recorded a fall of 27%, Mahindra & Mahindra recorded a fall of about
40%, and Tata Motors showed 12% decline in the car sales.
It is also said that the recent Mumbai terror attack and the cyclonic rain in South India
have added to the woes of
Indian car manufacturers.
India is one of the most
promising car industries across
the globe. It has gradually
strengthened its foothold in the
international arena as well.
15
APPRAISAL & REWARD
Appraisal
New Appraisal System based on KRAs & Targets
Review of Targets at regular Intervals
People Development an important KRA
Reward
Promotions based on Performance
Productivity & Profit-linked Incentive Schemes
Training including Long-term SMC Japan Trg.
Highest paid workforce in the Industry, if not the Country
LEADERSHIP
Vision, Value & Team Building Workshops for Top Management
CFT (Cross Functional Teams) of Managers for Major Thrust Areas
Managers sent to Joint Ventures to upgrade their practices to MUL standards
16
2. INTRODUCTION TO THE ORGANIZATION
Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the
Indian car industry. This car is meant for an average Indian individual which is
affordable as well as has elegant appeal. Maruti Suzuki India Ltd. is the result of
collaboration of Maruti with Suzuki of Japan. At this time, the Indian car market had
stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was
from where Maruti took over.
The company has crossed the milestone of becoming the first Indian company in March
1994, by manufacturing in totality one million vehicles. It is known for its mass-
production and selling of more than a million cars. Maruti Suzuki India Ltd. is the India's
largest automobile company which entered in the market with affirmed aim to render
high quality fuel – efficient and low - cost vehicles.
Sales figure in the year 1993 has reached up to 1,96,820. Maruti comes in a variety of
models in the 800 segment. Its cars operate on Japanese technology, pliable to Indian
conditions and Indian car users. By the year 1998-99, the company has modernize the
existing facilities and expand its capacity by
1,00,000 units. Recently to ward off the growing
competition, Maruti has completed Rs. 4 billion
expansion project at the current site, which has
raised the total production capacity to over
3,20,000 vehicles per annum. With the coming of
each and every year, the total production of the
company exceed by 4,00,000 vehicles.
In the small car segment it produces the Maruti
800 and the Zen. The big car segment includes
17
the Maruti Esteem and the Maruti 1000. Along with them, the company also
manufactures Maruti Omni. Other models includes Wagon R and the Baleno.
Headquarter in Gurgaon, on 17 September 2007, Maruti Udyog was renamed to Maruti
Suzuki India Limited. Both in terms of volume of vehicles sold and revenue earned, the
company is India's leading automobile manufacturers and the market leader in the car
segment. Sales recorded in June 2008, is Rs. 4,753.58 crores
Now let’s have a look on Maruti’s products like Maruti 800, Maruti Omni, Maruti Wagon
R, Maruti Swift and Maruti Alto.
INTERNATIONAL BUSINESS
In August, 2003 Maruti crossed a milestone of exporting 300,000 vehicles since its first
export in 1986. Europe is the largest destination of Maruti’s exports and coincidentally
after the first commercial shipment of 480 units to Hungary in 1987, the 300,00 mark
was crossed by the shipment of 571 units to the same country. The top ten destinations
of the cumulative exports have been Netherlands, Italy, Germany, Chile, U.K., Hungary,
Nepal, Greece, France and Poland in that order.
The Alto, which meets the Euro-3 norms, has been very popular in Europe where a
landmark 200,000 vehicle were exported till March 2003. Even in the highly developed
and competitive markets of Netherlands, UK, Germany, France and Italy Maruti vehicles
have made a mark. Though the main market for the Maruti vehicles is Europe, where it
is selling over 70% of its exported quantity, it is exporting in over 70 countries.
Maruti has entered some unconventional markets like Angola, Benin, Djibouti, Ethiopia,
Morocco, Uganda, Chile, Costa Rica and El Salvador. The Middle-East region has also
opened up and is showing good potential for growth. Some markets in this region where
Maruti is, are Saudi Arabia, Kuwait, Bahrain, Qatar and UAE.
The markets outside of Europe that have large quantities, in the current year, are
Algeria, Saudi Arabia, Srilanka and Bangladesh. Maruti exported more than 51,000
18
vehicles in 2009-10 which was 59% higher than last year. In the financial year 2009-10
Maruti exports contributed to more than 10% of total Maruti sales.
Company Board Of Directors
Mr. Shinzo Nakanishi Managing Director (M.D) and Chief
Executive Officer (C.E.O)
Mr. R.C. Bhargava Chairman
Mr. Maninder Singh Banga Director
Mr. Amal Ganguli Director
Mr. D.S.Brar Director
Mr. Keiichi Asai Director
Mr. Osamu Suzuki Director
Mr. Shuji Oishi Director
Ms. Pallavi Shroff Director
Mr. Kenichi Ayukawa Director
Mr. Tsuneo Ohashi Director and Management Executive
Officer
19
AWARDS
2005
Number one in JD Power SSI for the second consecutive year
Number one in JD Power CSI for the sixth time in a row - the only
car to win
it so many times
M800, WagonR and Swift topped their segments in the TNS Total
Customer Satisfaction Study
Leadership in the JD Power Initial Quality Study - Alto number
one in its
segment for the 2nd time in a row, Esteem number one in its
segment for
the 3rd year in a row, Swift number one in the premium compact
segment
WagonR and Esteem top their segments in the JD Power APEAL
study
TNS ranks Maruti 4th in the Corporate Reputation Strength (CSR)
study
(#1 in Auto sector)-Feb 05
Maruti bagged the "Manufacturer of the year" award from Autocar-
20
CNBC
( 2nd time in a row)-Feb 05
First Indian car manufacturer to reach 5 million vehicles sales
Business World ranks Maruti among top five most respected
companies in
India-Oct 04
Maruti ranked among top ten (Rank7) greenest companies in
India by
Business Today - Sep '04
Maruti Suzuki was No. 1 in Customer atisfaction, No. 1 in Sales
Satisfaction No.1 in Product Quality (Esteem and Alto) and No. 1
in Product Appeal (Esteem and Wagon R)
No. 1 in Total Customer Satisfaction (Maruti 800, Zen and Alto)
Business World ranked us among the country's five most
respected companies
Business World ranked us the country's most respected
automobile company
Voted Manufacturer of the year by CNBC
Voted one of India's Greenest Companies by Business Today-AC
Nielson ORG-MARG
Maruti 800, Maruti Zen and Maruti Esteem make it to the top 10
automotive brands in "Most Trusted Brand survey 2003"
J D Power ranked 3 models of Maruti on top: Wagonr, Zen and
21
Esteem
Maruti 800 and Wagonr top in NFO Total Customer Satisfaction
Study 2003.
MUL tops in J D Power CSI (2001) for 4th time in a row
2001
MUL tops in J D Power CSI (2001) for 2nd time in a row: another
international first
Maruti bags JD Power CSI - 1st rank; unique achievement by
market leader anywhere in the world
MSM launched as model workshop in India; achieves highest CSI
rating.
Central Board of Excise & Customs awards Maruti with "Samman
Patra", for contribution to exchequer and being an ideal tax
assessee
CII's Business Excellence Award
Maruti wins INSSAN award for "Excellence in Suggestion
Scheme"
Awarded the Star Trading House status by Ministry of Commerce
Engineering Exports Promotion Council's award for export
performance
1994
Best Canteen award among Haryana Industries as part of
employee welfare
22
ORGANISATION STRUCTURE
Maruti Udyog Limited has a flat organization structure with a maximum of three levels.
The Organization Structure of Maruti Udyog Limited is follows:-
MANAGING DIRECTOR
Manufacturing Financial General
Director Controller Manager
DGMs/AGMs DGMs/AGMs DGMs /AGMs
Managers / AM Managers /AM Managers / AM
Engineers and Sr. Executives Sr. Executives Sr. Executives
Jr. Executives Jr. Executives Jr. Executives
23
QUICK FACTS
Year of Establishment February 1981
Vision "The Leader in The Indian Automobile Industry, Creating Customer Delight and Shareholder's Wealth; A pride of India."
Industry Automotive - Four Wheelers
Listings & its codes BSE - Code: 532500NSE - Code: MARUTI Bloomberg: MUL@IN Reuters: MRTI.BO
Joint Venture With Suzuki Motor Company, now Suzuki Motor Corporation, of Japan in October 1982.
Registered & Corporate Office 11th Floor, Jeevan Prakash25, Kasturba Gandhi MargNew Delhi - 110001, India Tel.: +(91)-(11)-23316831 (10 lines)Fax: +(91)-(11)-23318754, 23713575 Telex: 031-65029 MUL IN
Works Palam Gurgaon Road Gurgaon -122015 Haryana, India Tel.: +(91)-(124)-2340341-5, 2341341-5
Website www.marutiudyog.com
24
MILESTONES
1981 Maruti Udyog Ltd. was incorporated.
1982 Steped into a JV with SMC of Japan.
1983 Maruti 800, a 796 cc hatchback, India's first affordable car was produced.
1984 Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production.
1985 Launch of Maruti Gypsy (970cc, 4WD off-road vehicle).
1986 Produced 100,000 vehicles (cumulative production).
1987 Exported first lot of 500 cars to Hungary.
1988 Installed capacity increased to 100,000 units.
1992 SMC increases its stake to 50 per cent.
1994 Produced the 1 millionth vehicle since the commencement of production.
1995 Second plant launched, the installed capacity reached 200,000 units.
1996 Launch of 24-hour emergency on-road vehicle service.
1997 Produced the 2 millionth vehicle since the commencement of production.
1998 Launch of website as part of CRM initiatives.
1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives.
2000 IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits.
2001 Launch of customer information centers in Hyderabad, Bangalore, and Chennai.
2002 SMC increases its stake to 54.2 per cent. Launch of Maruti Finance with 10 finance companies in
Mumbai.
25
Start of Maruti True value in Mumbai.
2003 Production of 4 millionth vehicle.
Listed on BSE and NSE after a public issue oversubscribed 10 times.
2004 Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago.
2005 The fiftieth lakh car rolls out in April, 2005.
1. Maruti 800: Launched - 1983 2. Maruti Omni: Launched - 1984 3. Maruti Gypsy: Launched - 1985 4. Maruti Alto: Launched - 2000 5. Maruti Wagon-R: Launched - 2002 6. Maruti Versa: Launched - 2003 7. Maruti Grand Vitara Launched - 2004 8. Maruti Suzuki Swift: Launched - 2005 9. Maruti Suzuki SX4: Launched - 2007 10.Maruti Swift Dzire: Launched - 2008 11.Maruti Suzuki A-STAR: Launched - 2008 12.Maruti Suzuki Ritz: Launched - 2009
Maruti Suzuki Estilo: Launched – 2009
History
Around 1970, Sanjay Gandhi, Political advisor and younger son to then Prime minister
of India, Indira Gandhi , envisioned the manufacture of an indigenous , cost – effective ,
low maintenance compact car for the Indian middle class. Indira Gandhi’s cabinet
passed a uninamous resolution for the devlopment and production of “people’s car”.
Sanjay Gandhi’s company was christened Maruti Limited. The name of the car was
choosen as “Maruti”, after the name of a hindu deity named Marut.
At that time Hindustan Motor’s Ambassador was the cheif car and the company had
came out with a new enterant , the Premium Padmini which was slowly gaining a part of
26
the market share dominated by the Ambassador. For the next ten years the Indian car
market had stagnated at a volume of of 30,000 to 40,000 cars for the decade ending
1983.
Sanjay Gandhi was awarded the exclusive contract and license to design, develop and
manufacture the “People’s car. This exclusive right of production generated some
criticism in certain quarters, which was directly targeted at Indira Gandhi. Over the next
few years the company was sidelined due to the Bangladesh Liberation war and the
emergency.
In the early days under the powerful patronage of Sanjay Gandhi, the company was
provided with free land, tax breaks, and funds. Till the end of 1970’s the company had
not started the production and a prototype test model was met with criticism and
skepticism. The company went into liquidation in 1977. The media perceived it to be
another area of growing corruption. Unfortunately Maruti started to fly only after the
death of Sanjay Gandhi, when Suzuki joined the Govt. Of India as a joint venture
partners with 50% share.
After the death of Sanjay Gandhi, Indira Gandhi decided that the project should not be
allowed to die. Maruti entered into collaboration with Suzuki Motors . The collaboration
heralded a resolution in the Indian car industry by the production of “Maruti 800”.
The car went into sale on December 14, 1983. It created record by taking 13 months to
go from design to rolling out car from a production line. By the year 1994 the company
had sold upto 1, 96,820 cars, mostly by selling its chief product the “Maruti 800”. By
March 1994, it produced one million vehicles, becoming the first Indian company to
cross this milestone. It reaches the 2 million mark in October 1997, and rolled out its 4 th
million vehicle an ALTO (LX) on April 19, 2003.
Maruti Udyog Ltd. is the premium car company in India. Maruti Udyog Limited (MUL)
was established in February 1981 through an act of parliament. The Company entered
into collaboration with Suzuki Motors of Japan to manufacture cars.The main objectives
behind formation of Maruti Udyog Limited was to meet the growing demand of a
personal mode of transport caused by the lack of an efficient Public Transport System.
27
Today Maruti Udyog Limited is garnishing share of automobile market in India. It has
completely revolutionized the Indian car market and has brought out numerous model to
cater to every section of society. These ranges from Economy cars to Luxury cars to
Super SUV’s.
Company’s Profile
Around 1970, Sanjay Gandhi, political advisor and younger son to the then Prime
minister of India, Indira Gandhi, envisioned the manufacture of an indigenous, cost
effective, low maintenance compact car for the Indian middle class. Indira Gandhi’s
cabinet passed an uninamous resolution for the development and production of
“Peoples car”. Sanjay Gandhi’s company was christened Maruti Limited. The name of
the car was was chosen as Maruti, after a hindu deity named Marut.
Unfortunately Sanjay Gandhi died without fulfilling his dream. After this death , Indira
Gandhi decided that the project should not be allowed to die. Maruti entered into
collaboration with the Suzuki Motors of Japan. The collaboration heralded a resolution
in the Indian car industry by producing Maruti 800. The car went into sale on 14
December 1983. And from 1980’s to till day today Maruti’s have dominated the Indian
Automobile industry as well as automobile market.
Stock Exchange on which company is listed
Maruti Suzuki is listed on Bombay stock exchange now Mumbai. It is also listed on
NYSE ( New York Stock Exchange) as well as stock exchange of Japan.
Vision, Mission and Core values of Maruti Suzuki
Vision:-
Vision of any company is those values on which company works. As the Maruti Udyog
Limited (MUL) is started by governmental initiatives it tends to be more consumer
oriented and hence cost- effective, but on the other hand Suzuki’s participation ensures
not only need of profit, but the need of maximum profit. The only way of Nora’s dilemma
28
of selecting principles for the company’s working vision was to maximize profit and
sales and hence Maruti Udyog Limited (MUL) declared its vision as:-
“The leader in the Indian Automobile Industry, creating Customer Delight one and
shareholder’s wealth two eventually become pride of India. Customer Delight One is
making sure that Performance, after sales service and customer are best and beyond
expectations, shareholder’s wealth two is the prime concern for running business
smoothly. Maruti Udyog Limited (MUL) knows this and understands “Customer Is King” ,
he can change the future of any company hence goes company’s brand line : COUNT
ON US!
Mission:-
Mission is the statement of any organisation’s purpose , what is want to accomplish in
the larger environment and its goal which are specific , realistic, and motivating.
Missions are described over Visions and Visions demand certain objectives.
The main Objectives / Mission of Maruti Udyog Limited are:-
Modernisation of Indian Automobile Industry.
Developing cars faster and selling for less.
Production of fuel- efficient vehicles to conserve scarce resources.
Production of large number of motor vehicles which are necessary for the
Economic Growth.
Market penetration, Market developments, similar product development and
diversification.
Parter relation management, value chain, value delivery networks.
29
Core Values:-
Customer Obsession
Fast, Flexible and First Mover
Innovation and Creativity
Networking and Partnership
Openness and Learning
SMALL & MEDIUM CAR SEGMENT IN INDIA
Small cars are classified according to the price range which varies from 1 to 3 lakhs. It
has the capacity to carry 4 passengers- 2 adults, 2 children. These are basically entry
level cars which are preferred by service group and middle income group.
These cars are basically manufactured by - Maruti Udyog and Reva. While companies
like Volks wagon and Reva are yet to launch their models in the market.
Maruti 800
Driving with the high quality of fuel efficiency and economical purchasing price have
enhanced the popularity of the Maruti 800. Its lowest fuel consumption cost has made
this car forever better choice for the buyer.
Its easy accommodating small structure of 4.4 meters of radius has made it a user
friendly car. For its easy to park structure, it is very comfortable to parking anywhere,
even if the space is too little. It can be smoothly driven in an overcrowded street or in a
narrow lane.
Various safety features of Maruti 800 give assurance of secured driving to the buyer.
Here is an overview on few salient features of Maruti 800 :
Side impact beams
Laminated windshield
30
Additional body reinforcement
Other extra new features:
Collapsible steering columns
High mount stop lamp
Clear lens Headlamps
Front Grille
Dual Tone interior upholstery
Bharat stage III : Hi-tech 32 ECM and ultra-refined engine
Suzuki budging
Clear multi reflector headlights
Attractive tail lamp
Specifically placed crumple zone
Maruti 800 is found in different colors:
Superior white
Bright red
These are the metallic colors :
Icy Blue (new)
Caribbean Blue (new)
Silky silver
Crystal gold(new)
There are two variants found in Maruti 800:
Maruti 800 STD BS III
Maruti 800 AC BS III
31
Maruti 800 Duo
Maruti 800 STD BS III
Its weight is 650kg. It is without Air-conditioner
Maruti 800 AC BS III
To give the comfort of an Air conditioner, especially during sultry summer days,
Maruti 800 is running its name as the low cost air-conditioned car. Its weight is
655kg.
Maruti 800 Std. & AC variants are available in Bharat Stage III version.
Maruti 800 Duo
Maruti 800 Duo runs both on petrol and LPG. With the soaring petrol prices, the 800
Duo is a great relief for the car users from the economic point of view. In addition to
this, being factory fitted it is completely safe to drive. As far as power and
performance is concerned, it delivers a power of 35ps@5000 rpm and torque of
56Nm@2500 rpm.
TECHNICAL QUALIFICATION MARUTI 800
Dimensions Overall length 3335 mm Overall width 1440 mm Overall height 1405 mm.
Wheelbase 2175 mm Minimum turning radius 4.4 m Ground clearance 170 mm.
Seating Capacity 4 persons Weight Unladen weight 665 kg (AC BS III), 650 kg (Std. BS
III) Laden weight 1000 kg.
32
Engine
Type 4 stroke cycle, water cooled SOHC (1C2V) No. of cylinders 3
Piston displacement 796 cc Maximum output (Std.,AC) 37 bhp at 5000 rpm
Maximum torque (Std.,AC) 59 Nm at 2500 rpm
Power Transmission
Std., AC
4-forward, all synchromesh,
1 reverse
Steering
Steering Rack & pinion Suspension
Front
McPherson strut & coil spring Rear Coil spring with gas filled shock absorbers
Brakes
Front Disc Rear Drum
Tyre size (Radial) 145/70 R-12
Capacity
Fuel tank capacity
28 liters (BS III)
33
Maruti Alto
Maruti Alto is one of the best selling car in India. It has included different new features in
it like clear lens headlamps, sparkling tail lamps, dynamic front grill and bumper, stylish
fabric, rotary control for AC etc. Other
features that are really important for the
comfort and safety of the passenger are
electronic power steering, excellent
services back up, convenient cup holders,
high rigid monocoque frame made of high
tensile steel, front and rear seat belts,
booster assisted brakes etc. Its better
mileage and low engine friction make this car most fuel efficient car in A2 segment
(petrol).
It has three variants:
Maruti Alto
Maruti Alto Lx
Maruti Alto Lxi
Maruti Alto
It has new features like front bumper, dynamic front grill, S mark, clear lens headlamps,
clear lens tail lamps etc.
Maruti Alto Lx
34
Along with the features that are present in Alto, there are many additional new features
like rotary control for AC, integrated rear seat head restraints etc.
Maruti Alto Lxi.
Along with all the features that are present in Alto LX and Alto, another distinctive extra
feature included in this model is electronic power steering.
Various colors found in this car are:
Midnight Black
Superior White
Pearl Silver
Silky Silver
Bright Red
Brilliant Yellow
Wine Red (new)
Caribbean Blue(new) ICAL SPECIFICATIONS OF MARUTI ALTO
WEIGHT Kerb weight Alto 725 kg Alto Lx / Alto Lxi 740 kg Gross vehicle weight 1165
kg
ENGINE Swept volume 796cc No. of cylinders 3
Engine control 32 bit computer Maximum power 47 bhp @ 6200 rpm Maximum torque
62 Nm @ 3000 rpm
Transmission
5 speed, all synchromesh, manual
SUSPENSION SYSTEM
Front
McPherson Strut with torsion type anti-roll bar
35
Rear
Coil spring with double action telescopic shock absorbers
SEATING
Capacity
4 Persons
TYRES
Tyre size
145 / 80 R12
DIMENSIONS
Overall length
3495 mm
Overall width
1495 mm
Overall height
1460 mm
Wheelbase
2360 mm
Tread - Front / Rear
1290 mm / 1290 mm
Maruti Omni
Maruti Omni can accompany anybody during the lazy holidays. Its seating capacity can
accommodate a group of people going for picnic or outing. Stylish, smart and sporty
36
looks of newly launched Maruti Omni is very comfortable. Its reclining and sliding front
seat, enough leg space and ample headroom
Make it more spacious.
Its sleek sliding door and new side body graphics
are giving new taste to the car lovers. Apart from
this, smart new steering wheel, clear lens
headlamps and head lamp leveling device are
lining up to market this car properly.
With 37 bhp @ 500rpm and torque of 6.32 kgm @ 3000rpm, this car is running strong
over the years.
MPFI engine fulfills all the Bharat III emission norms.
The features that make this car safe and secure are like side impact door beams,
thermoplastic bumpers, booster assisted disc brakes, secured seat belts, laminated
glass winshield etc.
Turning radius of 4.1 m, Omni solves the purpose of narrow lane driving, keen turning
and small space parking.
5 seater Maruti Omni
5 seater Maruti Omni has capacity to arrange seating for five. In 5 seater Maruti Omni
behind the front seats there is an arrangement for 3 seats in a row one after another.
8 seater Maruti Omni
37
8 seater Maruti Omni is with the accommodation facility for eight. In 8 seater Maruti
Omni behind the fronts seats there is a seating arrangement for two long seats to
accommodate six more occupants. Those both rear seats are arranged face to face
which give scope to gossip with each other while going for family picnic or friendly freak
out.
LPG Maruti Omni
LPG Maruti Omni is the most cost saving new car of the Maruti Omni. Its 5 seater
accommodation arrangement with LPG kit (Ville, Netherlands) fitted by the factory
keeps it noticeable to the buyers. It has capacity of 62.1 ltr LPG cylinder / reserve fuel
tank (petrol, 5 ltr). It runs with the power of 27bhp@ 4500rpm.
Striking colors are keeping this car out of the crowd:-
Bright Red
Silky Silver
Superior White
The Metallic colors are:
Caribbean Blue
Icy Blue
Crystal Gold
Silky Silver
TECHNICAL SPECIFICATIONS OF MARUTI OMNI
38
Dimensions Length 3370 mm Width 1410 mm Height 1640 mm Wheel base
1840 mm Ground clearance 165 mm turning radius 4.1 m
Weight Omni 785 kg, Omni E - 800 kg
Engine
Type 4-stroke cycle, water cooled Number of cylinders 3
Number of engine valves 6
Piston displacement 796 cc
Power Transmission
Type Manual, 4 forward, all synchromesh, 1 reverse Brakes Front Booster assisted
Disc Rear Drum Capacity Fuel Tank (Petrol) 36 liters Performance Maximum Power
35.0 bhp @ 5000 rpm Maximum Torque 6.1 kgm @ 3000 rpm
Maruti Zen Estilo
Zen Estilo is Maruti's latest launch pad in the automobile sector. Estilo, Spanish word for
"style", radiates both Japanese simplicity and
European sophistication & is made perfectly
suitable for Indian roads. The car is much more
roomier than Zen & its plush & sleek interiors
impart a more royal touch to its persona.
Sporting a much larger engine of 1061 cc., the
car's elevated size offers extra boot space. Best
feature boasts of its superior air conditioning
which eases the task of beating the sultry
39
summers.
With a capacity of 64 bhp. & a low-end torque of 84 nm (i.e. 3500 rpm), the new model
ensures the Indian market with a smooth & comfortable drive.
The car exhibiting fine upholstery matched up with its' color theme has an immense
stamina to sweep away the customer with its' elan appearance. Other salient
characteristics include:
Modern design Two tone color design Redesign seats
Other Features
Maruti Zen Estilo has a series of other plus points which makes is an instant hit among
Indian buyers. They are:
* spacious
* Handy driver's side airbag
* Rear defogger, tachometer & ABS
* Electronic power steering
* Black bumpers
* Hatchbacks
* Dual tone theme
* Accelerated & top speed
* Has four-cylinder engine
40
* Combo of five-speed gearbox
* Electrically adjustable side view mirrors
* Built in 6 audio speaker provision
* Mobile and fax connectivity at the back door
There are three variants found in this car:-
Maruti Zen Estilo Lx
This model has certain specific points such as no body colored side or back door
handles, outside door mirrors, accessory socket. Though, it has rear door child
lock & steering lock.
Maruti Zen Estilo Lxi
This variant of Estilo is almost the same like its other model LX. It has body
colored bumpers & back door handles. Though, it is fully air conditioned like
others & has numerous other qualities.
Maruti Zen Estilo Vxi
Estilo Vxi bosts of almost all the benefits, thus, fitting easily in the ultra modern
automobile category.
TECHNICAL SPECIFICATIONS OF MARUTI ZEN ESTILO
Length 3495 Width 1475 (Lx, Lxi), 1495 (Vxi) Height 1595 Wheel Base 2360
Tread, Front 1295 Tread, Rear 1290 Turning Radius (m) 4.6 Seating Capacity
5 persons Ground Clearance 165 Max Power (bhp/rpm) 64/6,200
Max Torque (Nm/rpm) 84/3,500 Engine F10D Engine Capacity (cc) 1061
Engine Type 4 cyl Transmission 5MT Drive 2WD Clutch Type Cable
Kerb Weight (kg) 855 (Lx, Lxi), 875 (Vxi) GVW (kg) 1275
41
Tyre Size 145 / 70 R13 (Lx, Lxi) 155 / 65 R13 (Vxi)
Fuel Tank Capacity (lt) 35
Front Break Ventilated Disc Rear Brake Drum
Transmission Type
Manual -5 Speed, all synchromesh with teo overdrive gears
Suspension System
Front: McPherson Strut with Torsion type roll control device
Rear: Coil Spring, Gas field shock absorbers with three link ride and isolated trailing arm
Power Steering
Type: Electronic Power Steering (EPS) (Lxi, Vxi)
Maruti Swift INCLUDEPICTURE
"http://auto.indiamart.com/cars/maruti-swift/gifs/maruti-swift-car.gif" \*
MERGEFORMATINET
Competing with the other cars of Maruti, Maruti Swift is gradually making its position in
the world of mid-sized family car. Maruti Swift has come up with the special technical
specifications of 16 valve 4-cylinder, 1300 cc engine generating power of solid 87bhp @
6000 rpm
Maruti swift is equipped with various safety features and well advanced equipments.
Swift LXi
3 assist grips, 3 spoke urethane steering wheel, antenna, cabin light (3 position),
console box (lower), cup holders (front 2, rear1), front door trim pockets, green tinted
glass window, halogen headlamps, headlamp leveling device, heater and manual Air
conditioning, OVRM (internally adjusted), rear fog lamps, wind screen wiper 2 speed
42
plus 1 speed intermittent, tailgate opener key type, trip meter (digital display), sun visors
(both sides), brake assist , child lock (rear door), high mounted stop lamp, power
steering, rear seat belts etc. are the features available in this model.
Swift VXi
Apart from the features found in other model, striking features of this model are black
colored A & B pillars, 12v accessory socket in center console, day and night rear view
mirror, door ajar warming lamp, driver's seatbelt warning lamp, tachometer, driver's seat
belt warning lamp, vanity mirrors (sun visor co-driver side), rear seat head restraints,
fabric accented door trims, central door locking (4 door), front and rear electronic
windows, front fog lamps, light off/ key reminder, manual air-conditioning, key not
removed warning buzzer, etc.
Swift ZXi
Special features that have made this model more market friendly are rear window
demister, rear parcel shelf, rear window wiper, room lamp and luggage room, keyless
43
entry, dual front airbags, colored outside door mirror cowls, colored outside door
handles, 12v accessory socket in luggage room, driver seat height adjuster, central door
locking (5 doors), seat belts 3-point ELR with shoulder adjusters, seat belts front 3-point
ELR with pretension, tailgate opener electromagnetic type etc.
Maruti Swift Diesel
Before making a buying decision for a car, comfort is always the first priority that we
usually look for. Make no compromises with your comforts, as 'Maruti Swift Diesel'
incorporates the best comfort features which any swanky car does have these days.
Maruti Swift Diesel'Ldi'
Right from power steering to antenna and manual air conditioning to heater, you would
get maximum comfort level with this 'Ldi' model. As far as safety and security is
concerned, it comes with child lock (rear door), side impact beams and the icats. In
addition to this, it has cabin light in three positions, sports-type spherical shift knob, sun
visors on both sides, 3 assist grips and lots more inside the car.
Maruti Swift Diesel 'Vdi'
Apart from all those features mentioned with the Ldi, you can get front and rear electric
windows and central door locking in the comfort segment. On the other hand, the Vanity
mirrors, day/night rearview mirror, head restraints (rear seat) and 12V accessory socket
in central console are also some of the extra features which are found inside the car.
The additional external features include colored door mirror cowls and handles, front fog
lamps and 165/80 R14 steel wheels with cap (tubeless)
TECHNICAL SPECIFICATIONS OF MARUTI SWIFT
Body Type Hatchback Number of doors 5 Seating capacity 5
44
Engine Capacity 1298cc Number of cylinders 4 Number of valves 16
Bore x Stroke 74.0 x 75.5 mm Compression ratio 9.0:1 Maximum power 87bhp @
6000rpm Maximum torque 113Nm @ 4500rpm Fuel distribution Multipoint injection
Transmission
Type Five-speed manual, with synchromesh in all gears,
one reverse
Gear ratios 1st 3.545 4th 0.966 2nd 1.904 5th 0.757 3rd 1.280 reverse 3.272
Dimensions Overall length 3695mm Overall width 1690mm Overall height 1530mm
Wheelbase 2390mm Track Front 1470mm Rear 1480mm Ground clearance
170mm
Minimum turning radius 4.7 meters
Luggage capacity 232 liters (with seatback raised)
368 liters (with seatback folded)
Chassis Steering Rack & pinion, power assisted
Brakes Front Ventilated Discs Rear Drums Suspension Front
McPherson strut and coil spring Rear Torsion beam and coil spring
Maruti Wagon R
45
Wagon R wiith1061cc low friction engine does not only run , but always fly high with its
super power of 64bhp@6200rpm and faster acceleration. Its smooth pick up has made
this car more popular than other cars in this category.
Its on board computer of 16 bit capacity always keeps an eyes on the performance of
the engine.
Its engine configuration of 4 valves per cylinder capacity keeps its fuel consumption
lower than other cars.
Its Dual Distribution less Digital Ignition (DDLI) gives better start and ideal power
distribution. At the same time its mileage of 14.15 kmpl and other features make it more
reliable car to the buyer.
WagonR Lx
It is well equipped with chrome plated grille, clear headlamps and tail lamps, right
outside rear view mirror, front wiper (2 speed + intermittent), new plush upholstery, air
conditioner with heater, full flat front seat, remote fuel lid opener, new headlamp leveling
device etc.
WagonR Lxi
46
Along with the features that are present in WagonR LXi, few exclusive features present
in this model are central door locking (all 5 doors), electronic power steering, roof rails,
newly added body colored bumpers, right outside rear view mirrors etc.
WagonR Vxi
Apart from the features that are present in WagonR LXi ,few exclusive special features
are only available in this model like side molding, front power window, rear defogger, full
wheel covers, boot lamp, day/ night rear view mirror, electronic tachometer, “Key Not
Removed” warning buzzer, “Lights On” warning buzzer, vanity mirror, newly added
accessory socket, two tone leather steering wheel cover; newly added anti lock braking
system (ABS), dual SRS airbags, key less entry etc.
WagonR AX
Along with the common features that are present in other models, this model contains
special features like right and left outside rear view mirror, new added roof rails etc.
WagonR Duo
This extremely dynamic and vibrant variant of WagonR is flooded with all the latest
technologies and features not only externally but internally too. As the name itself
suggests, it has been designed to run on both petrol as well as the CNG mode
whichever ways you want it to be. The car has got some latest modifications such as 3
spoke steering, matching door trim fabric and much more
TECHNICAL SPECIFICATIONS OF MARUTI WAGONR
Dimensions in mm.
Length 3495 Width 1495 Height 1660
Wheelbase 2360 Front Track 1295 Rear Track 1290 Min. Ground Clearance 165
Weight in Kg.
47
Kerb Weight 825 (LX, LXi) 830 (VXi 840 (AX)
Gross Vehicle Weight 1225 (LX, LXi) 1230 (VXi) 1240 (AX)
Capacity
Seating Capacity 4 persons Fuel Tank Capacity 35 litres
Engine
Swept Volume 1061 cc
Engine Type 4 cylinder in line, FC Engine,
4 Valvs per cylinder, MPFI Engine Control
16 - Bit Electronic Control Module (ECM) in bharat Stage || variant
32 - Bit Electronic Control Module (ECM) in bharat Stage ||| variant
Max. Power, bhp 64@6200 rpm Max. Torque, Nm 84@3500 rpm
Power Steering
Type Electronic Power Steering (EPS) (LXi, VXi & AX)
Transmission
Type Manual (LX, LXi, VXi) 5 speed, All-synchromesh with two overdrive gears
Automatic (AX), 3 speed
Suspension System
Front
McPherson Strut with torsion type roll control device Rear
Coil spring, gas-filled shock absorbers with three-link rigid axle and isolated trailing
arms Apart from Maruti Suzuki, for my research I have to study some other company
through secondary resource .these are as follow
FINANCIALS FOR 2009-10
48
Total Income up 14.28 per cent; Premium compacts and sedan segment drive top line
growth
Fiscal 2009-10
The company's Total Income (Net of Excise) (Income from Operations plus Other
Income) for the financial year 2009-10 climbed to Rs 21,453.8 Crore. This is the highest
Total Income (Net of Excise) ever in the company's history, and marks a growth of
14.28 per cent over 2008-09. The growth in Total Income (Net of Excise) included
higher realizations, largely contributed by the company's popular hatch-back Swift and
premium sedan Swift Dzire (Diesel and Petrol variants).
Net Profit during the year stood at Rs 1,218.7 Crore, down 29.6 per cent over 2008-09.
The company's EBDITA for the year stood at Rs 2,433.4 Crore, a fall of about 22 per
cent over the previous year.
During the year, commodity prices went up sharply and remained high for most part of
the year. Forex fluctuations were also adverse and impacted the bottom-line
significantly.
In recent months, commodity prices have eased.
With regard to foreign currency exposure, the company's exports in 2009-10 are
expected to be higher and cover its imports.
Highlights of 2009-10
49
Particulars 2009 2008 2007 2006 2005 2004 2003
Net Sales (In
x10M Rs)20530.1 17891.6 14696.3 12015.9 10923.8 9104.4 7180.1
Profit Before
Tax (In x10M
Rs)
1675.8 2503 2279.8 1750 1304.9 769.8 282.1
Reported Net
Profit (In x10M
Rs)
1218.7 1730.8 1562 1189.1 853.6 542.1 146.4
Earnings Per
Share-Unit Curr
( In Rs)
41.57 59.03 53.29 40.65 29.25 18.56 4.88
In the fiscal 2009-10 Maruti Suzuki sold a total of 792,167 vehicles. The annual sales in
2009-10 is the highest ever by the company in its 25 year history. The previous highest
annual sales were 764,842 units in 2008-09.
During the fiscal, Maruti Suzuki Swift crossed the 3 lakh-sales mark cumulative
domestic sales since launch and became the quickest vehicle model to do so. During
the fiscal, Maruti Suzuki's Alto continued to be the preferred vehicle for the great Indian
middle class crossing the 1 million-mark in cumulative sales in domestic market.
The company's sales included exports of 70,023 units in 2009-10, up by 32.1 per cent
over sales of 53,024 recorded in 2008-09. The 2009-10 export numbers, the highest
ever by the company, was led by A-star, the fuel efficient compact car launched in
Europe during the year as Suzuki Alto. The export tally includes around 19,000 units of
A-star exported to Europe including United Kingdom, France, Germany, Italy,
Netherlands, Denmark and Switzerland.
50
Fiscal 2009-10 marked Maruti Suzuki's Silver Jubilee year in India. Over these 25 years
the company has sold over 7 million (70 lakh) cars in the domestic market. Additionally,
over half a million cars made by Maruti Suzuki have been exported world-over.
During the year, the company continued its focus on long term initiatives, despite the
challenging market situation. These include:
• Focus on R&D: Manpower strength to 730 engineers from 460 in end March
2008. Company plans 1,000 engineers in R&D by 2010.
• New technology engine: Brand new facility for K-series engine launched on
schedule.
• Launching new models: A-star launched. Introduced Maruti 800 Duo - an
alternate fuel option that runs on LPG and petrol.
• Annual capacity to manufacture expanded from 800,000 to one million units
(Gurgaon plus Manesar plants).
• Reached out to new segments of customers - government employees and rural
customers - through innovative programs.
• Export of A star (as Suzuki Alto) to Europe commenced as per schedule.
• Dedicated export port facilities for cars at Mundra completed, used for A-star
shipment.
• Network expansion:
o Sales: From 600 sales outlets (in 393 cities) last year to 681 outlets (in 454 cities)
o Service: From 2,628 service outlets (1220 cities) last year to 2,767 (in 1314 cities);
o True Value: From 265 outlets (in 166 cities) last year to 315 outlets (181 cities)
51
• Increased Pre-owned car sales from 1.01 lakh units in 2008-09 to 1.23 lakh units
in 2009-10
• National Road Safety Mission launched - a nation-wide Corporate Social
Responsibility (CSR) initiative to train 500,000 people in safe driving in three years.
The network of Maruti Driving Schools further expanded and crossed 50 schools.
MEANING OF ANALYSIS AND OBJECTIVE OF STUDY:
Financial statement namely the statement of the profit & loss account and the balance
sheet are indication of two signify-cant factors profitability and financial soundness
analysis of statements means such a treatment of the information contained to afford a
diagnosis of the profitability and financial statements analysis as the process of
methodical classification comparison with other co-rising question and then seeking
answer for them.
Finance is the very typical aspect in course of management. The main objective behind
the study is to get precisely. It also helps us to study the present finance scenario. The
objective is such that company’s profitability, liquidity and capacity by such analysis we
can interpret the position of the company. So it is very important to study.
Profit Trend for 7 years:
PROFIT COMPARISION (IN x10M Rs)
Particulars 2009 2008 2007 2006 2005 2004 2003
Operating Profit
(EBDIT)2433.3 3130.8 2588.8 2055.8 1797.7 1308.1 656.9
Gross Profit
(EBDT)2382.3 3071.2 2551.2 2035.4 1761.7 1264.7 604.2
Profit Before
Tax (EBT)1675.8 2503 2279.8 1750 1304.9 769.8 282.1
Adjusted Net
Profit (EAT)1072.63 1669.71 1535.29 1197.07 860.1 621.82 129.72
52
IMPORTANCE OF CASH PROFIT THEORY:
MEANING
Cash flow means inflows that is, sources of cash which are at the disposable at the firm
and outflows of the fire that is the use of the firm.
The difference between inflows and outflows is either net inflow or net outflow. A cash
outflow statement deals with the cash fund flow, which excludes working capital
movements. The Accounting standard (A53) classifies cash flows as under:
1) Cash from operating activities
2) Cash from investing activities
3) Cash from financing activities
The operating activities include receipts from sale of goods or Rendering of services
receipts from royalty, fees, commission etc. Outflow is the resulting from payment to
creditors for goods and services, payment for expenses such as lighting, power, rent,
wages salaries etc.
Only cash from operating activities is included in this report.
IMPORTANCE OF CASH PROFIT:
The cash profit is an important measure of profitability as well as liquidity. When the
cash profit differs from the profit is shown in the profit and loss account or profit and loss
statement. Adjusting depreciation arrives at the cash profit; amortize action of capital
expenses etc. The cash profit is much less or negative compared to the profit declared
in the profit and loss account. It indicates liquidity and signals for appropriate cash
management. The net cash from operations can be calculated through adjustment of
non-cash items like depreciation, changes in inventory and receivable and payables,
and or other items for which cash offers the investing and financing activities.
53
MEANING & IMPORTANCE OF RATIO:
The Balance Sheet and the Statement of Income are essential, but they are only the
starting point for successful financial management. Apply Ratio Analysis to Financial
Statements to analyze the success, failure, and progress of your business.
Ratio Analysis enables the business owner/manager to spot trends in a business and to
compare its performance and condition with the average performance of similar
businesses in the same industry. To do this compare your ratios with the average of
businesses similar to yours and compare your own ratios for several successive years,
watching especially for any unfavorable trends that may be starting. Ratio analysis may
provide the all-important early warning indications that allow you to solve your business
problems before your business is destroyed by them.
Ratio is a figure showing, logical relationship between any two items taken from
financial statement as prepared and presented annually are of little use for guidance of
prospective investors, creditors and even management. If relationships between various
related items in these financial statements are established, they can provide useful dues
to garage accurately the financial health and ability of business to make profit. The
relation between in two related items of financial statements is known ratio.
54
UTILITY OF RATIO ANALYSIS:
It is very important to find the ratio of liquidity, profitability etc. Because the ratio analysis
provides useful data to the management, important uses of it are given as below:
PROFITABLITY :
Useful information about the trend of profitability is from profitability ratio. The gross
profit ratio, net profit ratio and ratio of return on investment give a good idea of the
profitability of the business. On the basic of this ratio, investors get an idea about
overall efficiency of managers and bank as well as other creditors draw useful
conclusion about repaying capacity of the borrowers.
LIQUIDITY :
In fact the use of ratio was made initially to ascertain the Liquidity of business. The
current ratio, acid test ratio will tell whether the firm will be able to meet its current
liabilities and when they nature. Banks and other leaders will be able to conclude from
these ratios whether the firm will be able to pay regularly the interest and loan
installments.
EFFCIENCY :
The turnover ratios are excellent guide to measure the efficiency of managers. All such
ratio related to sales present a good picture of the success on the business.
55
Classification of ratio
Profitability ratio
Gross Profit Ratio:
Meaning:
It is expresses relationship between Gross Profit earned to net sales. It is a
significant indicator of the profitability of business.
It expresses in percent. For example, a ratio shows that for a sale of every Rs.
1000 a margin of 250 rupees is available from which operating expenses of
business are recovered.
The ratio shows whether the mark up obtained on cost of production is sufficient
or not. There is no calibration against reasonability of gross profit ratio. However
it must be enough to cover its operating expenses. In many industries, there are
more or less recognized gross profit ratios and the business should strive to
maintain this standard.
If this ratio is low, it indicates that the cost of sales is high or that the purchasing
is inefficient.
Alternatively, it may also mean that due to depression, the selling price is
reduced but there are may be no corresponding reduction, the selling price is
reduced but there may be no corresponding reduction in cost of sales. In such a
case, the management must investigate the causes and try to bring up this ratio.
56
COMPETITORS INFORMATION:-
MARUTI UDYOG LIMITED – Managing competition successfully
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of
Parliament, to meet the growing demand of a personal mode of transport caused by the
lack of an efficient public transport system. It was established with the objectives of -
modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve
scarce resources and producing indigenous utility cars for the growing needs of the
Indian population. A license and a Joint Venture agreement were signed with the Suzuki
Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and
agreed to provide the latest technology as well as Japanese management practices.
Suzuki was preferred for the joint venture because of its track record in manufacturing
and selling small cars all over the world. There was an option in the agreement to raise
Suzuki’s equity to 40%, which it exercised in 1987. Five years later, in 1992, Suzuki
further increased its equity to 50% turning Maruti into a non-government organization
managed on the lines of Japanese management practices.
Maruti created history by going into production in a record 13 months. Maruti is the
highest volume car manufacturer in Asia, outside Japan and Korea, having produced
over 5 million vehicles by May 2005. Maruti is one of the most successful automobile
joint ventures, and has made profits every year since inception till 2000-01. In 2000-01,
although Maruti generated operating profits on an income of Rs 92.5 billion, high
depreciation on new model launches resulted in a book loss.
FUTURE CHALLENGES
Maruti has always been identified as a traditional carmaker producing value-for-money
cars and right now the biggest hurdle Maruti is facing is to shed this image. Maruti
wants to change it for a more aggressive image. Maruti Baleno has failed due to one of
the major reasons being that customers could not identify Maruti with a car as
sophisticated as Maruti Baleno. Maruti is looking forward to bring about a perception
57
change about the company and its cars. Maruti started the exercise with the new-look
Zen, and Suzuki's decision to pick India as one of the first markets for this radically
different-looking car gave this endeavor a new thrust. Maruti has also changed its logo
at the front grill. It has replaced the traditional Maruti logo on grill ‘stylish ‘M’ with S’. The
major thrust in the facelift endeavor is with the launch of 1.3 litre Swift. It’s a style
statement from Maruti to Indian market.
The next threat Maruti faces is the growing competition in compact cars.
Companies like Toyota, Ford, Honda and Fiat are planning to come out with small
segment cars in near future. Ford is launching Focus and Fiesta, GM is launching Aveo
in 2006, Chevrolet is launching Spark in 2006, Hyundai is launching its new compact
car in 2006, Honda is launching Jazz in 2006, GM is has reduced prices of its Corsa,
Fiat is coming up with Panda and new Fiat Palio, Skoda is launching Fabia. All this will
pose a major threat to Maruti leadership in compact cars.
New emission norms like Bharat Stage 3 which has come into effect from April 2005
has increased car prices by Rs.20000 and Bharat Stage 4 which is coming into force in
2007 will contribute in increasing car prices further. This could be of concern to Maruti
which is low cost provider of passenger cars.
Rise in petrol prices and growing popularity of other substitute fuels like CNG
will be another threat to Maruti. There is also a threat to Suzuki from R&D investment by
Toyota and Honda in Hybrid cars. Hybrid cars could run on both petrol and gaseous
fuels.
There is a threat to Maruti models ageing. Maruti models like Maruti 800 which is in
market for the last twenty years and others like Zen and Esteem which have also
entered the decline phase are the other threats. Maruti is planning phasing out Zen in
2007 and there were rumors of phasing out Maruti 800 also. This all makes Suzuki to
replace these brands with new launches. As Swift and Wagon R are replacing the Zen
market.
58
HYUNDAI INDIA LTD
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company, South Korea and is the second largest car manufacturer and the largest
passenger car exporter from India. HMIL presently markets 33 variants of passenger
cars across segments. The Santro in the B segment, the Getz Prime, i10 and the
Premium hatchback i20 in the B+ segment, the Accent and the Verna in the C segment,
the Sonata Embera in the E segment and the Tucson in the SUV segment.
Hyundai Motor India Ltd, continuing with its tradition of being the fastest growing
passenger car manufacturer, registered total sales of 489,328 vehicles in the calendar
year (CY) 2008, an increase of 49.6 percent over CY 2007. In the domestic market it
clocked a growth of 22.4 percent with 245387 units in 2008, while overseas sales grew
by 92.5 percent, with exports accounting for 243,931 units in 2008.
HMIL's fully integrated state-of-the-art manufacturing plant near Chennai boasts of the
most advanced production, quality and te sting capabilities in the country. In
continuation of its commitment to provide the Indian customer with global technology,
HMIL commissioned its second plant in February 2008 which produces an additional
300,000 units per annum, raising HMIL's total production capacity to 600,000 units per
annum.
HMIL has invested to expand capacity in line with its positioning as HMC's global export
hub for compact cars. Apart from the expansion of production capacity, HMIL currently
has 251 strong dealer network across India, which will be further bolstered in 2009.
In 2008, HMIL also successfully completed 10 glorious years of operations in India and
to commemorate its achievements, initiated a unique trans-continental drive from Delhi
to Paris in two of its hugely popular i10 Kappa cars. The drive created automobile
history by completing a distance of 10,000km in just 17 days after which the i10s were
showcased at the Paris Motor Show in October. In fact it was at the Paris Motor Show
that HMIL first unveiled the Hyundai i20 and the car received a phenomenal response
59
from the auto enthusiasts across the world. Hyundai Motor India also accomplished the
landmark of producing the fastest 20th lakh cars in India in 2008.
Like 2008, the year 2007 had also been a significant year for Hyundai Motor India. It
achieved a significant milestone by rolling out the fastest 400,000th export car. Hyundai
exported to over 95 countries globally; even as it plans to continue its thrust in existing
export markets, it is gearing up to step up its foray into new markets. 2007 also saw the
launch of the i10 and yet another path-breaking record in its young journey by rolling out
the fastest 1,500,000th car.
Hyundai's new model i10 made a clean sweep of all the 'Car of the Year 2008' awards
from the leading automotive magazines and TV channels like BS Motoring, CNBC-TV18
AutoCar, NDTV Profit Car & Bike India and Overdrive magazine. The i10 was also the
choice of the discerning automotive media of the country as they conferred the
prestigious 'Indian Car of the Year' (ICOTY) award to the i10 as well.
The Santro and the Accent also received the 'TNS Voice of the Customer - 2008' award
for the Premium Compact Car (Santro) and the Entry Mid size Car (Accent). In March
2008 it achieved yet another milestone by rolling out the fastest 500,000th export car.
In 2007, the Hyundai Verna had also bagged some of the most prestigious awards
starting with the Overdrive magazine’s ‘Car of the Year 2007’, the ‘Best Mid-size Car of
the Year’ award from NDTV Profit Car & Bike India, the ‘Best Value for Money Car’ from
CNBC Autocar and 'Performance Car of the Year' from Business Standard Motoring.
Hyundai cars have been a favorite at all awards ceremonies and has won many awards.
The Sonata Embera won the 'Executive Car of The Year 2006' award from Business
Standard Motoring magazine and NDTV Profit Car & Bike India had declared the
Tucson as the 'SUV of The Year 2006'.
60
TATA MOTORS LTD
Tata Motors Limited is India’s largest automobile company, with revenues of Rs.
35651.48 crores (USD 8.8 billion) in 2008-09. It is the leader in commercial vehicles in
each segment, and among the top three in passenger vehicles with winning products
in the compact, midsize car and utility vehicle segments. The company is the world’s
fourth largest truck manufacturer, and the world’s second largest bus manufacturer.
The company’s 23,000 employees are guided by the vision to be “best in the manner
in which we operate, best in the products we deliver, and best in our value system and
ethics.”
Established in 1945, Tata Motors’ presence indeed cuts across the length and breadth
of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in
1954. The company’s manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand)
and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up
an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra)
to produce both Fiat and Tata cars and Fiat powertrains. The company is establishing
a new plant at Sanand (Gujarat). The company’s dealership, sales, services and spare
parts network comprises over 3500 touch points; Tata Motors also distributes and
markets Fiat branded cars in India.
Tata Motors, the first company from India’s engineering sector to be listed in the New
York Stock Exchange (September 2004), has also emerged as an international
automobile company. Through subsidiaries and associate companies, Tata Motors
has operations in the UK, South Korea, Thailand and Spain. Among them is Jaguar
Land Rover, a business comprising the two iconic British brands that was acquired in
2008. In 2004, it acquired the Daewoo Commercial Vehicles Company, South Korea’s
second largest truck maker. The rechristened Tata Daewoo Commercial Vehicles
61
Company has launched several new products in the Korean market, while also
exporting these products to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, with an option to acquire the remaining stake as well. Hispano’s
presence is being expanded in other markets. In 2006, it formed a joint venture with
the Brazil-based Marcopolo, a global leader in body-building for buses and coaches to
manufacture fully-built buses and coaches for India and select international markets. In
2006, Tata Motors entered into joint venture with Thonburi Automotive Assembly Plant
Company of Thailand to manufacture and market the company’s pickup vehicles in
Thailand. The new plant of Tata Motors (Thailand) has begun production of the Xenon
pickup truck, with the Xenon having been launched in Thailand at the Bangkok Motor
Show 2008.
Tata Motors is also expanding its international footprint, established through exports
since 1961. The company’s commercial and passenger vehicles are already being
marketed in several countries in Europe, Africa, the Middle East, South East Asia,
South Asia and South America. It has franchisee/joint venture assembly operations in
Kenya, Bangladesh, Ukraine, Russia and Senegal.
The foundation of the company’s growth over the last 50 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate
them into customer-desired offerings through leading edge R&D. With over 2,500
engineers and scientists, the company’s Engineering Research Centre, established in
1966, has enabled pioneering technologies and products. The company today has
R&D centres in Pune, Jamshedpur, Lucknow, in India, and in South Korea, Spain, and
the UK. It was Tata Motors, which developed the first indigenously developed Light
Commercial Vehicle, India’s first Sports Utility Vehicle and, in 1998, the Tata Indica,
India’s first fully indigenous passenger car. Within two years of launch, Tata Indica
became India’s largest selling car in its segment. In 2005, Tata Motors created a new
segment by launching the Tata Ace, India’s first indigenously developed mini-truck
62
In January 2008, Tata Motors unveiled its People’s Car, the Tata Nano, which India
and the world have been looking forward to. The Tata Nano has been subsequently
launched, as planned, in India in March 2009. A development, which signifies a first for
the global automobile industry, the Nano brings the comfort and safety of a car within
the reach of thousands of families. The standard version has been priced at Rs.100,
000 (excluding VAT and transportation cost).
Designed with a family in mind, it has a roomy passenger compartment with generous
leg space and head room. It can comfortably seat four persons. Its mono-volume
design will set a new benchmark among small cars. Its safety performance exceeds
regulatory requirements in India. Its tailpipe emission performance too exceeds
regulatory requirements. In terms of overall pollutants, it has a lower pollution level
than two-wheelers being manufactured in India today. The lean design strategy has
helped minimise weight, which helps maximise performance per unit of energy
consumed and delivers high fuel efficiency. The high fuel efficiency also ensures that
the car has low carbon dioxide emissions, thereby providing the twin benefits of an
affordable transportation solution with a low carbon footprint.
The years to come will see the introduction of several other innovative vehicles, all
rooted in emerging customer needs. Besides product development, R&D is also
focussing on environment-friendly technologies in emissions and alternative fuels.
Through its subsidiaries, the company is engaged in engineering and automotive
solutions, construction equipment manufacturing, automotive vehicle components
manufacturing and supply chain activities, machine tools and factory automation
solutions, high-precision tooling and plastic and electronic components for automotive
and computer applications, and automotive retailing and service operations.
True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to
Corporate Social Responsibility. It is a signatory to the United Nations Global Compact,
and is engaged in community and social initiatives on labour and environment
standards in compliance with the principles of the Global Compact
63
3. RESEARCH METHODOLOGY
RESEARCH is a scientific and systematic search for pertinent information on a specific
topic. It is also said to be the pursuit of truth with the help of study, observation,
comparison and experiment. research methodology is a way to systematically solve the
research problem.
3.1 Title of the study: - “The study of consumer buying behavior towards small &
medium car segment” The study showing the consumer buying behavior in small &
medium car segment with special reference to Maruti Suzuki India ltd It describe the
attitude behind the purchasing of car by any middle income level segment. This
research is done at Jaipur.
3.2 Duration of the study: - 15 days.
3.3 Objective of the study:- The basic objective of the project during the research
and study will be focused on the following parameters:
To know consume preference regarding small & medium cars
To know what features and services attract the customers
Effect of brand image (Maruti Suzuki)in buying behavior
Impact of advertisement in buying behavior
Impact of celebrity endorsement in buying behavior
Effect of family &friends in buying behavior (Focus group)
3.4 Type of research: - It refers to the search for knowledge. It can be defined as
scientific and systematic search for pertinent information on a specific topic. It is careful
investigation or inquiry through search for new facts of any branch of knowledge.
Research plays an important role in the project work. The results of the
project are completely based upon the research of the facts and figures collected
through the different ways of research.
64
That is why it is also called a movement from known to unknown.
Research is the original contribution to the existing stock of knowledge.
A research design is a framework or blueprint for conducting the marketing research
project. It details the procedures necessary for obtaining the required information, and
its purpose is to design a study that will test the hypotheses of interest, determine
possible answers to the research questions, and provide the information needed for
decision making. Conducting exploratory research, precisely defining the variables, and
designing appropriate scales to measure them are also a part of the research design.
The issue of how the data should be obtained from the respondents (for example, by
conducting a survey or an experiment) must be addressed. It is also necessary to
design a questionnaire and a sampling plan to select respondents for the study.
Research can classify in one of three categories:
Exploratory research
Descriptive research
Causal research
The type of research conducted here is descriptive research.
Descriptive research is more rigid than exploratory research and seeks to
describe users of a product, determine the proportion of the population that uses
a product, or predict future demand for a product. As opposed to exploratory
research, descriptive research should define questions, people surveyed, and the
method of analysis prior to beginning data collection. In other words, the who,
what, where, when, why, and how aspects of the research should be defined.
Such preparation allows one the opportunity to make any required changes
before the costly process of data collection has begun.
There are two basic types of descriptive research: longitudinal studies and cross-
sectional studies. Longitudinal studies are time series analyses that make repeated
measurements of the same individuals, thus allowing one to monitor behavior such as
brand-switching. However, longitudinal studies are not necessarily representative since
65
many people may refuse to participate because of the commitment required. Cross-
sectional studies sample the population to make measurements at a specific point in
time. A special type of cross-sectional analysis is a cohort analysis, which tracks an
aggregate of individuals who experience the same event within the same time interval
over time. Cohort analyses are useful for long-term forecasting of product demand.
3.5 Sample size and method of selecting sample
Sample size:- Sampling is simply the process of learning about population on the
basis of learning about population on the basis of a sample drawn from it. The primary
objective of the sampling survey is to obtain accurate and reliable information about
universe with minimum cost, time and energy and to set out the limits of accuracy of
such estimates.
For sampling I have chosen non-probability sampling technique.
Non probability sampling is based on the personal judgment. Under this method a
desired number of sample units are selected deliberately depending upon the object of
the enquiry so that only the important items representing the true characteristics of the
population are included in the sample.
Non-probability sampling is of two types:-
purposive sampling quota
convenience sampling
I have chosen convenience sampling under non-probability sampling technique keeping
all constrains in mind a sample size of 50 people is selected from Jaipur. This sample
contains a mix type of customer (Servicemen, student and businessmen) so as to
remove any type be biased results. Research for the Importance of the Brand image of
the company’s which is kept in mind by customers while buying any product. As two-
wheeler is a durable thing, the customer interacts with the company only for little time.
Therefore it becomes very difficult to get the actual feedback from the customer. That’s
why I have designed a Questionnaire for the customers.
for this research are as follows: -
66
PRIMARY DATA – Data is collected primarily through personal contact,
meeting, interview and questionnaire with the concerned authority of the
organization and respondents’.
SECONDARY DATA – Data are collected through secondary modes
such as various published data, reports, related books and websites.
3.6 Scope of study: - The scope of the project during the research and study will be
focused on the following parameters:
To know consume preference regarding small & medium cars
To know what features and services attract the customers
Effect of brand image (Maruti Suzuki)in buying behavior
Impact of advertisement in buying behavior
Impact of celebrity endorsement in buying behavior
Effect of family &friends in buying behavior (Focus group)
3.7 Limitation of study:-Every research study has its limitations likewise this
research has some limitation .These are:
The sample consists of 50 customers and was restricted to people residing in
Jaipur a study is restricted to the Jaipur
Sample of the population (universe)might be knot the representative of whole
This study is conducted before the launching of TATA Nano
Customer perception is not always static. They frequently change their attitude
Selection of car is also depends on income level of respondents
This research is based on current economic condition which is not seem to be
good
67
4. FACTS AND FINDINGS
In present Maruti is leading in small & medium car segment followed by Hyundai
Existing customer are satisfied with their present car performance like
mileage ,servicing etc
In current scenario Maruti will be market leader followed by Hyundai(This
research is conducted before launching TATA Nano)
Middle class segment like to buy any brand due to mileage followed by looks &
style
They change their cars after two years or more, due to fed up with car and for
new advance technology
They highly influenced by family and friends while making purchase
68
5. ANALYSIS AND INTREPRETATION
For this research project, I choose the questionnaire as research tool and take 50
participants who either willing to buy a car or having a car in small and middle segment.
So the findings are as follows
“Bikes which are mostly used”
A) Maruti 33
B) Hyundai 28
C) Tata 20
D) Mahindra 19
69
“Purpose of a car”
A) College
B) Office
C) Business
D) Travelling & Roaming
E) House hold work
1
2A) College B) Office C) Business D) Travelling& Roaming
E) House holdwork
2226
17
10
50
5
10
15
20
25
30
OBJECTIVE: To Identify the Purpose to Use car
FINDINGS: The overall findings indicate the maximum use of car for businessmen and
traveling followed by Office and Business.
70
Q. 1 Do you use cars?
Interpretation;-Among 50 participants,84% respondents are currently having
car .Through we can find out the potential market for car manufacturing companies
Q.2 Which car do you use?
Interpretation:-Among 84% respondents who having his own car
43% participants are having Maruti,
29% are owning Hyundai,
19% are having Tata,
7% are owing Gm and rest are the customer of Honda Motors
Q.3 Is the present car up to your expectations?
Interpretation:-
Approx 79% participants are satisfied with their current car i.e. their expectation
are fulfilled by the car and rest are unsatisfied with their car performance
Some factor like mileage ,performance and easy servicing fulfill their
expectation
71
Q. 4 Are you planning to buy a new car in the near future?
Interpretation:-
Every person wants to buy a car for himself or for his family. My research is focus on
middle income prospects and thus
74% respondents are planning to buy a new car
26% respondents are not willing to buy new car in near future
Q. 5 Which brand would you prefer?
Interpretation:- Among 50 participants
54%of respondents prefer to buy a car of Maruti
30% participants like to purchase a car of Hyundai
20% respondants prefer TATA brand (Research is conducted before the
launching of nano )
12% and 4 % are preferring ratio for respectively GM cars and Honda cars
Q. 6 Why would you prefer the above mentioned car?
Interpretation:-The reason for the preference, among 50 respondents
38% preferred mileage follow by looks and style as 26%
Comfort is taking third place by 24% followed by service and spares
72
Q.7. How frequently do you change your car? Why?
Interpretation:-Generally middle class respondents never echange their car so
frequently so far. They will change their car after more then two year or above but the
reason behind the changing the car are as follows
Almost 54% participants said tat they fed up with their car
Near 36% respondents wants to change their car due to advance technology
Approx 8% change their car due to fashion & trend
73
6. SWOT ANALYSIS
STRENGTH
Maruti Suzuki Pvt. Limited is right now the market leader in Private segment.
Brand Image
Reliable and cheap. Established brand in Indian market. Great service and
nationwide penetration
Experience in Indian market
Very old player in Indian market. First major player.
Established distribution & after sales networks
WEAKNESS
All models are petrol base not to be diesel in comparison of Tata & Mahindra
Diseconomies to scale
No online presence
Not diversified
OPPORTUNITY
Easy approachable service centers & Exchange fair.
Acquisitions
Innovation
Online
Product and services expansion
Takeovers
Targeting Higher Middle Class requirements
74
THREAT
Other brand names like Hundai, TATA, Mahindra, Ford etc.
Competition
Cheaper technology
External changes (government, politics, taxes, etc)
Lower cost competitors or imports
Price wars
Product substitution
75
7. CONCLUSION
From the analysis of the responses received from the customers in Jaipur,
overall findings show that Maruti Suzukij is the most prefered brand among the
participants.
Maruti Suzuki and Hyundai,Tata Motors are the biggest competitor in the small &
madium car market..
Among the five attributes ( which we considered important for customers’
purchasing decision ) customers gave highest consideration to mileage followed
by the looks and style. Other attributes like comfort, service and spares were
considered later.
Most middle class person prefer Maruti Suzuki in this segment and usually they
use car for their transport.
Servicemen still would like to go for small & medium car but with mileage with the
first considerable thing followed by looks and style and power.
Study shows that middle class segment highly influenced by family & friends
while purchasing the car. So companies should advertise their product targeted
to families
Graduly Hyundai & TATA captured the market of Maruti due to their new
launching in small cars like TATA nanoetc.
76
8. RECOMMENDATION & SUGGESTIONS
Apart from mileage, Maruti should also focus on the looks and style of the bike
which could atrract the consumers.
Maruti should also focus its products on the student and the businessmen arena
apart from just being concentrating on the servicemen segment.
Tata although focussing on the demands of their target customers, it should also
focus on the service and spare segment.
To increase the demand for the newly launched products, Maruti should also focus
on the advertising of its products.
Companies should conduct reseach to know the preferences of the customer by
allowing them to design their product on internet. This would help the companies to
make a customised product.
Mahindra Should be more focused on advertising and should add more product or
varient to its portfolio.
77
9. APPENDIX
Objective: Consumer buying behavior towards small & medium car segment
Q. 1 Do you use cars?
o Yes
o No
Q.2 Which car do you use? ………………………………………………
Company
Maruti
Honda
GM
TATA
Hyundai
Model
Q.3 Is the present car up to your expectations?
o Yes
o No
Elaborate (Why Yes / Why No)
______________________________________________________________________
____________________________________________________________________
Q. 4 Are you planning to buy a new car in the near future?
o Yes
o No
78
Q. 5 Which brand would you prefer?
o Maruti
o Honda
o GM
o TATA
o Hyundai
If other, then please specify…………………………..
Q. 6 Why would you prefer the above mentioned car?
o Mileage
o Looks and style
o Comfort
o Service and spares
o Other
If other, then please specify…………………………..
Q.8. How frequently do you change your car? Why?
o 6-12 Months
o Up to 2 years
o More than 2 year
o Till the life of the bike
Reasons
Status
Fashion & Trend
Advance Technology
Fed up & Reseal
79
Other
If other, then please specify…………………………..
o Family or Friends
o Advertisement
o Brand
o Style & Features
o Technical Advancement
o Other Issue
If other, then please specify…………………………..
Personal Information:
Name :
Occupation :
Age : 1. 26-35 2. 36-45 3. Above 45
Date : Signature
Place :
80
10. BIBLIOGRAPHY
BOOKS
C.R Kothari: Research Methodology
NEWSPAPERS
Economic Times.
Business Times.
Business Standard
WEBSTIES
o HYPERLINK "http://www.tatamoters.co.in" http://www.tatamoters.co.in
o HYPERLINK "http://www.maruti.co.in." http://www.maruti.co.in.
o HYPERLINK "http://www.google.com/" \t "_blank" http://www.google.com/
o HYPERLINK"http://www.valueresearch.com/"\t"_blank"
http://www.valueresearch.com/
o HYPERLINK "http://www.autojunction.com/" http://www.autojunction.com/
o HYPERLINK"http://www.moneycontrol.com/"\t"_blank"
http://www.moneycontrol.com/
MAGAZINES
Business world
Auto Expo
81
82