Pre Owned Cars and Bikes

1.
EXECUTIVE SUMMARY
The aim of marketing is to meet and satisfy the needs and wants of the customers.
India has long-term potential to become a significant vehicle market. It has huge
population of nearly one billion people (of which 150-250 million are middle class),
and a current vehicle population of 3.5 million (equivalent to only 3.4 cars per 1000
people).
Prior to the early 90s there were only four car companies manufacturing and selling
cars in India. Foreign investment was effectively banned and foreign technology
transfers were subject to government approvals. By 1993 the Indian government
delicensed the Indian car industry, which eased other foreign auto manufactures entry
into the market first under joint partnerships, then wholly owned subsidiaries.
Currently, India is in the midst of an economic-recovery where vehicle sales rose 47
percent to 73,000 units in March 2000, up from 49,410 units in March 1999.
Indian auto market is booming the auto manufacturers from all over the world are
attracted by indian market for both,manufacturing and sell cars to indian and export
market.
Making the right choice while buying a used car is very important. Maruti Suzuki,
India's favorite car company, understands you concerns regarding quality,
documentation and value for money. That is why we ensure that the used car you buy
from us has never had an accident and is free from defects or legal hassles. What you
get is a car that is optimized for trouble-free performance and therefore needs
minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's
direct involvement, which includes thorough checks, a complete reconditioning at
state-of-the-art Maruti Suzuki workshops and certification by a Maruti Suzuki
Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we
give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified
used car and make a wise investment.
2. INTRODUCTION TO THE TOPIC
Title of the project

"Analysis of the Pre-owned car market in Mumbai Maruti True Value"
ANALYSIS OF THE CAR MARKET IN INDIA

The automotive industry is one of the largest industries worldwide and in India as
well. The automotive sector drives upstream industries like steel, iron, aluminum,
rubber, plastics, glass and electronics, and downstream industries like advertising &
marketing, transport and insurance.
The automotive industry can be divided into five sectors:
Passenger Cars
Multi-Utility Vehicles (MUVs)
Two-Wheelers
Three-Wheelers
Commercial Vehicles-Light Commercial Vehicles (LCVs) / Medium & Heavy

Commercial Vehicles (M&HCVs) Tractors
Despite a head start since its beginning in the 1940s, the Indian automotive industry
has been moving at a slow pace mainly due to the all-pervasive regulatory atmosphere
prevailing till recently. Moreover, the industry was considered low-priority as cars
were thought of as unaffordable luxury for the masses.
In the post-liberalization period the passenger car sector witnessed a boom, owing to
economic vibrancy, changes in government policies, increase in purchasing power,
improvement in lifestyles, and availability of car finance. The industry was
deregulated in 1993, and many companies, both Indian and foreign (Daewoo, Ford,
General Motors, and DaimlerChrysler), entered the market. However, the smooth
sailing was disrupted in the last quarter of 1996. The automotive industry, which
contributed substantially to the industrial growth in FY1996 failed to maintain the
same momentum between FY1997 and FY1999. The overall slowdown in the
economy and the resultant slowdown in industrial production, political uncertainty
and inadequate infrastructure development were some of the factors responsible for
the slowdown in the automotive industry.
While the passenger car segment, with the launch of many new models, posted
positive growth rates in FY 2000 and FY 2001, the upturn was rather brief. In
FY2002, the automotive sector especially the passenger car segment continued to reel
under the pressure of over-capacity with low demand. FY2003 witnessed a healthy
growth in the passenger car sales with the pick up in the economy. The passenger car
sales in the first half of FY2004 were also buoyant.
However, the contribution of the automobile sector to industrial output, number of
cars per person, automobile sector employment as a percentage of industrial
employment, number of months' income required to purchase a car, and penetration of
cars are quite low. Low demand and lack of vision on the part of the OEMs and
policymakers stunted the Indian automobile industry. However, major car
manufacturers worldwide foresee future demand in India. The regulatory environment
has been liberalized and demand has picked up. Global OEMs who enjoy scale
economics both in terms of manufacturing and research and development have
entered the Indian market, leading to a shift in the business operations of suppliers,
assemblers and marketers.
Key Demand Drivers

Disposable income was perceived as the key factor driving passenger car demand. But
over time, other factors included the need for greater mobility, non-availability of
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public transport services, availability of cheap finance, development of the used-car

market, introduction of new technologically superior models, increasing levels of
urbanization, and changing consumer profiles.
Market Characteristics
Product Penetration
The penetration of passenger cars in India stood at five per thousand persons as
against 27 for two-wheelers in 2000. Significantly, the Indian figures are lower than
even those for economies like Indonesia (14 and 62). The relatively high penetration
of two-wheelers in India reflects the population's need for mobility and their limited
affordability.
Automotive Penetration (vehicles in use per thousand persons)*
Passenger Cars Two wheelers
USA
478
14
United Kingdom 373
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Japan
395
115
Germany
508
36
China
Indonesia
14
62
South Korea
167
59
India
27
Market Segmentation
Considering that affordability is the most important demand driver in India, the
domestic car market has been segmented on the basis of vehicle price till SIAM
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introduced the length-based2 classification of passenger cars since FY2003. The

automobile industry in India is still concentrated around the mini and the compact
segments which together account for around 81.8% of the automobile market in terms
of units sold in FY2003.
Demand Projection for Passenger Cars
FY2003 FY2004
FY2007
CAGR
(Actual) (Forecast) (Forecast)

Passenger car sales 611715
666248
838845
8%
Domestic Sales
Increased affluence, wider selection and the ready availability of car loans is driving
the Indian car market through the roof. During the last five years (2000-05), the
production of passenger cars in India increased by more than 100 per cent. India
achieved the sales of 1.11 million vehicles last year (2005).
Domestic sales have been growing at a clipping pace:
Passenger car sales rose by 22.84 per cent during April-September 2006, compared
to the corresponding period n 2005.
The cumulative growth of overall sales of passenger vehicles during April-September
of 2006-07 was 20.73 percent.
Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period.
Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of Medium
and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial Vehicles also
performed well with a growth of 32.86 percent.
Exports
India is fast emerging as a manufacturing base for car exports. According to the
Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were
exported in September 2006, a 58.07 per cent jump as compared to the same month
last year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and
commercial vehicle exports grew at 27.80 per cent.
Major Manufacturers of Automobiles in India
Maruti Udyog Ltd.

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General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd.
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
Foreign players in India

Calendar 2006 has seen the entry of many high-end brands into the country. The
Indian automobile market will see at least 30 new launches, spanning everything from
affordable hatchbacks to mid-size models to super luxury high-end cars and SUVs.
Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now, the
Italian marquee Lamborghini is also planning to enter the country. The Italian
marquee plans to launch the Gallardo.
German luxury car maker Audi AG is preparing to drive into India a range of sporty,
lifestyle cars like S8 and RS4 early next year. The year 2007 will also mark Audi's
entry into merchandising in Indian car bazaar.
CAR STATISTICS INDIA

The Indian automotive industry is the 2nd fastest growing in the world. About 8
million vehicles are produced annually in this country toady. During 2005-2006, India
has emerged as the 3 rd largest market in the Asia Pacific Region. With various car
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manufacturing companies setting up their units in different parts of the country, the
production of the cars will increase at a very fast rate. The car statistics indicate that
India will soon become one of the top 10 car manufacturing countries , leaving behind
the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car
production capacity in India will exceed the mark of 2 million. Thus, the production
of cars will increase by 70% from the present capacity of 1.2 million.
The domestic sales of passenger cars have increased significantly over the years. A
graphical representation of the domestic sale of cars will give you an insight about the
present market situation prevailing in the country:
In the recent years, India has
emerged as one of the major bases for manufacturing small passenger cars. At present
the Indian automotive industry boasts of being the 3 rd largest manufacturer of small
cars. According to the car statistics almost 70 % of the cars sold in this country come
under the segment of small cars. A number of car manufacturers like: Maruti Udyog,
Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer
various new model of cars now and then. It is expected that the various automobile
manufacturers will be investing about $ 5 billion in India, between 2005-2010.
As per the car statistics, export of passenger cars from India has also grown
considerably over the last decade. A graphical representation of car export trend will
help you to make an in-depth analysis of the present status of the Indian automotive
industry: With new strategies being implemented and more investments being made in
Indian automotive industry the production as well as the domestic sale and exports
will increase substantially.
India definitely is shining; with a GDP that is sparkling at over 8 per annum the
country certainly is on the right course. The automobile exports are at an all time high
as was indicated by Society of Indian automobile Manufacturers in a report released
in 2006. According to the report, the passenger car segment saw a rise of 9% in
January 2006.
Analysis of Indian Exports:
Strengths
Cost competitiveness in terms of labor and raw material.
Established manufacturing base. Economics of scale due to domestic market.
Potential to harness global brand image of the parent company.

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Global hub policy for small car like Hyundai, Suzuki, etc.
Weakness
Perception about quality.
Infrastructure bottlenecks.
Opportunities
Huge export markets such as Europe, America, Africa, and others for Indian
cars.
Threats
China, Malaysia, Thailand, etc.
Many other countries also have strategies for export promotion.
Export Imperatives:
Internal Factors:
Attaining high quality for global standards.
Continuous cost reduction for global competitiveness.
Supply chain management (logistics).
Attaining economies of scale & scope.
External Factors:
Improve infrastructure (ports, roads, etc).
Improve EXIM regulations.
The Indian passenger car segment

The Indian car industry an be classified, based on the price of the car, into the small
car or the economy segment (up to Rs.0.25mm), mid-size segment (Rs.0.25
0.45mn), luxury car segment ( Rs 0.45 -1mn) and super luxury car segment (above
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Rs1 mn).
The models in the car market can be fitted to different segment as given below:Category
Models
Economy segment (up to 0.25mn)
Maruti Omni, 800, Padmini
Mid-size segment (Rs0.25-0.45mn)
Swift,
Wagen-R
Premier
118NE,Ambassador,Nova, Fait Uno,Zen,

Huundai Santro, Daewoo Matiz, Tata
Indica, Contessa, Aulto.
Luxury Car Segment
Tata Indica, Maruti esteem,Ford Ikon,

Opel Astra, Fait Siena, Opel Corsa,
Hyundai Accent, Tata Estate, Ford Feasts,
Honda City,Lancer.
Super luxury segment ( Above Rs 1mn)
Merceds Benz, BMW, Nissan, Audi,

Luxus, Skoda and other imported Models.
The demand for passenger cars can be segmented on the basis of the user segment as
those bought by taxi operators, government/non government institutions individual
buyers etc. A major portion of the demand in India accrues mainly from personal
vehicle owners.
Industry analysis using porters five force:

Porters five force of competition model views the profitability of an industry as
determined by the five source of competition pressure.
Theses five force of
competition include three source of Horizontal competition competition from

substitute, the threat of competition from entrants, and competition from established
producers and two source of vertical competition the bargaining power of
suppliers and buyers. The following write-up is a view of the Indian passenger car
industry from these five angles leading to the expected changes in the coming years in
the underlying structure of the Indian passenger car industry.
Competition from substitute

Inadequate Public Transportation System: In developed nations city planners
have tried to relieve congestion and pollution by creating an efficient public
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transportation system. However, they have been remarkably ineffective in

encouraging motorists to forsake their cars for buses or subway. The public
transportation system in India is not only extremely inadequate, it is notably
poor in quality. This scenario is not expected to change drastically in the next
ten years.
Electric cars: All the major car manufacturers in the world are currently
developing electric cars or hybrid cars to reduce pollution in the coming years.
However, these technologies wll requires considerable length of time to
become commercially feasible in developing nations.
The lack of inadequate public transportation system coupled with the fact that the
electric or hybrid cars are still in the developmental stage means that the Indian car
industry faces minimal competition from substitutes.
Treat of new entrants
Economies of scale: in the automobile industry, economies of scale act as a

significant entry barrier since it is a capital-intensive industry. Globally, it has
been witnessed that car manufacturers with low volumes find it extremely
difficult to survive given the high per unit cost. The acquisition of Rolls
Royce, Jagur, Rover, and AMC/jeep are a testament to this. On the other hand
by entering on a large scale, one runs the risk of drastic under-utilization of
capacity as observed by Daewoos experience in India. Since the economy
segment cars are expected to drive volume growth in India in the coming
years, it is extremely important for a manufacturer to have a model in this
segment to reduce his per unit cost.
Government policy: the license-raj of the Indian government toll 1991 acted as
a significant barrier for any new entrants in the passenger car industry.
Moreover, the governments perception of the car being a luxury rather than
a modern necessity resulted in this sector being labeled as low priority.
However, the liberalization of the Indian economy has removed this
hindrance.
huge capital Costs: Huge capital Cost act as significant entry barrier and only
established companies with deep pockets possess the resources to enter the
automobile industry. Significant costs are involved in the development of a
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new car as can be seen by Telcos Indica car which has incurred an
expenditure of Rs.17 bn.
Absolute cost Advantages: Marutis presence in the car industry since 1984
gives it considerable cost advantage over the new entrants. Not only are its
plants highly depreciated and its cars highly indigenized as compared to its
competitors, it has a wide distribution and service network which will require
mammoth resource to replicate.
Absolute Cost Advantage: Marutis presence in the car industry since 1984 gives it
considerable cost advantage over the new entrants. Not only are its plants highly
depreciated and its cars highly indigenized as compared to its competitors, it has a
wide distribution and service network which will require mammoth resource to
replicate.
Although liberalization of the Indian economy has reduced the impact of government
policy as an entry barrier, the car industry still enjoy high entry barriers due to huge
capital costs involved in setting up efficient plants and numerous cost advantages
enjoyed by Maruti. The recent pull-out of Peugeot is an example that even a global
automobile company could find it extremely difficult to operate in India if it faces
labor trouble and Rivalry between Established competitors.
Highly Concentrated Industry : The Indian car industry is highly concentrated

with Maruti itself accounting for about 80% of all sales. The lack of
competition in the economy segment to Maruti 800 has given the company
considerable power. Its dominance in this segment gives it the power to cross
subsidize its models in the other segment. However, this scenario is expected
to change drastically over the next three years with a number of new models
being launched to challenge maruti 800s dominance the scenario in the
economy segment could be similar to that in the premium segment currently
with intense price competition. The slashing of cielo`s price by 25%has led to
ford and opel introducing cheaper models
Diversity of competitors: 1984 and 1993 have been land mark years for the
Indian car industry. The entry of Maruti in 1984 changed the complexion of
the industry as for the first time Indian had opportunity a buy a car which was
comparable to the Japanese automobile. 1993 was a historic year as the
industry was deregulated an India become the latest battlefield for global auto
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majors. The last few years have seen the industry integrate with global
automobile industry and evolve into being extremely competitive. For the first
time, Marutis position as the leader of the car industry will be severally
challenged especially if three new cars (Tata Indica, Daewoo, DArt, and
Hyundai Santro) in the economy segment can deliver the promised
performance.
Product differentiation: One of the key trends observed in the car industry
during the last decade is that the products of different companies have become
increasingly similar especially in the economy and mid-size segment. There is
a perceptible shift towards car being treated as a commodity rather than as a
consumer good. In the premium car segment in India, differentiation between
different models is declining as companies strive to increase volumes by
cutting prices. Even Opel Astra has decided to introduced a new model
without any frills to reduced its prices by Rs.10 million.
Increase in Working Capital Needs: The intense rivalry between the

automobile companies will mean that the companies would have to give
longer credit periods to its dealers. The substantial over-capacity in the
industry will lead to increased inventory holding. These two factors point
towards an increase in working capital needs of car companies.
The competition between firms in the car industry is expected the intensify
considerable as never companies will start reducing Marutis dominance of the
market the expected significant over-capacity in the industry, increasing
working capital needs, and high exit barriers coupled with low differentiation
between models especially in the economy segment will put downward
pressure on price and profitability of companies.
Bargaining power of Buyers
Buyers price Sensitive: Car buyers in India are extremely price-sensitive especially in
the economy segment. Although it is too early to judge the three new small cars and
Maruti response to it, we can expect the price competition to intensify since buyers
would e more willing to switch while intense competition among the companies
would require them to generate volumes.
Relative bargaining power : Gone are the days when the India car buyer had to buy
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one of the 30,000 Ambassadors or Fiate, which were produced. The penetration of
satellite television has globalized the Indian customer. Car companies have seen
forced to revamp their dealer network. From a small shed for a dealership, the shift is
towards huge dealership who not only offer complete range of services for the car but
also make sure that the customer has a replacement vehicle so that they may not
become immobile.
Availability of Easy financing: the entry of numerous car companies has brought
along with it a massive increase in the availability of cheap finance for the Indian
consumer. This hassled to fierce competition among the car companies and has even
led to free gifts being doled out to buyers to lure them to purchase a particular car.
Bargaining Power of Suppliers
Diminishing Supplier Power : one of the key trends observed in the global auto
industry is the significant increase in outsourcing of car parts. In India, the
development of the auto ancillary industry has also brought in this phenomenon.
However, the large number of competitors for supplying each part implies that in the
coming years, supplier power will diminish to a large extent except for suppliers who
have almost monopolistic power like Mico-Bosch. Also, there is a increasing shift
towards reduction in vendor base for a company which means that the chosen
suppliers also have to make substantial financial investments to enhance the quality of
their products.
Supplier power in the automobile industry will diminish greatly in the coming years
due to the large number of competing supplier, threat of cheaper and better-quality
imports, and an increasing trend towards reduction of a car companys vendor base.
spot gaps in the market and cater to particular niche markets like sports utility
vehicles and minivans. The diminishing power of the supplier industry will help the
industry in improving the quality of car components and getting longer payment
periods. The key to success in the Indian car market will be offering good quality cars
that offer value for money, run innovative marketing campaigns to attract potential
buyers, and offer excellent after sales service. Companies, which have a range of
vehicles in all the segments of the market like Maruti, will be at a significant
advantage due to their ability to cross-subsidize model
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Manufacturing process
The body panel and engine constitute a major portion of the total cost of car
manufacture. A typical cost structure for car is as given below.
Parts/assembly
% of total cost
Glass
Brakes/wheels/tyres
Interiors
Transmission system
Ignition/exhaust
system
Steering/suspension
Comfort fittings
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Engine
16
Body
18
Others
13
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Car manufacturing is basically assembly of components procured from ancillaries or auto

component manufacturers. Nearly 80% of auto components are outsourced by the car
manufacturers. This helps in reducing the capital cost needed to setup a car manufacturing
plantf 5 years in suitable installments.
3. SECTOR
INFORMATION
Automobiles Industry
The automobiles sector is compartmentalized in four different sectors which are as follows:
Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers

Passenger Vehicles which include passenger cars, utility vehicles and multi-purpose vehicles
Commercial Vehicles that are light and medium-heavy vehicles
Three Wheelers that are passenger carriers and goods carriers.
The automobile industry is one of the key drivers that boosts the economic growth of the
country. Since the de-licensing of the sector in 1991 and the subsequent opening up
of 100percent FDI through automatic route, Indian automobile sector has come a long way.
Today, almost every global auto major has set up facilities in the country.
Austria based motorcycle manufacturer KTM, the established makers of Harley Davidson
from the US and Mahindra & Mahindra have set up manufacturing bases in India.
Furthermore, according to internal projections by Mercedes Benz Cars, India is set to become
Mercedes Benzs fastest-growing market worldwide ahead of China, the US and Europe.
As per the data published by Department of Industrial Policy and Promotion (DIPP), Ministry
of Commerce, Government of India, the cumulative FDI inflows into the Indian automobile
industry during April 2000 to October 2013 was noted to be US$ 9,079 million, which
amounted to 4% of the total FDI inflows in terms of US $. The production of compact
superbikes is also expected to take place in India. The country has a mass production base of
16 million two-wheelers and the several global as well as Indian bike makers are looking
forward to use it as an advantage in order to roll out sports bikes in the 250 cc capacity.
The world standing for the Indian automobile sector, as per the Confederation of the Indian
industry is as follows:
Largest three-wheeler market

Second largest two-wheeler market
Tenth largest passenger car market
Fourth largest tractor market
Fifth largest commercial vehicle market
Fifth largest bus and truck segment
However, the year 2013-2014 has seen a decline in the industrys otherwise smooth-running
growth. High inflation, soaring interest rates, low consumer sentiment and rising fuel prices
along with economic slowdown are the major reason for the downturn of the industry.
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Except for the two-wheelers, all other segments in the industry have been weakening. There is
a negative impact on the automakers and dealers who offered high discounts in order to push
sales. To match the decline in demand, automakers have resorted to production cuts and layoffs, due to which capacity utilization for most automakers remains at a dismal level.
Despite the comprehensive market being under extreme burden, the luxury car market has
observed a robust double-digit hike during the year 2013-2014, as a result of rewarding new
launches at compelling lower price points. Further, with the measured increases in the price of
diesel, the overall market continues to shift towards petrol-fuelled cars. This has lead to the
growth in sales of the 'Mini' segment of the PV market by of 5.5%
Factors determining the growth of the industry
Fuel economy and demand for greater fuel efficiency is a major factor that affects
consumer purchase decision that will bring leading companies across two-wheeler and
four-wheeler segment to focus on delivering performance-oriented products.
Sturdy legal and banking infrastructure

Increased affordability, heightened demand in the small car segment and the surging income
of the Indian population
India is the third largest investor base in the world

The Government technology modernization fund is concentrating on establishing India as an
auto-manufacturing hub.
Availability of inexpensive skilled workers

Industry is perusing to elevate sales by knocking on doors of women, youth, rural and luxury
segments
Market segmentation and product innovation

Employment Opportunities
There are a wide range of jobs available in the automobile industry. With the number of
vehicles available on the road today, the need and requirement for people who can fix these
machines is fast increasing. Careers like automobile technician, car or bike mechanics are a
great option. Becoming a diesel mechanic is also a significant alternative. Diesel mechanics
are responsible for repairing and servicing diesel engines. As they are also required to repair
engines of trucks and buses, other than cars, they are provided with hefty wages.
If communication with people instead of repairing cars is what interests you, then you have
the opportunity of becoming a salesperson or sales manager in an automobile company.
Career opportunities in automobile design, paint specialists, job on the assembly line and
insurance of vehicles is also available.
Employment Trends
The Automotive Mission Plan for the period of 2006-2016 aims to make India emerge as a
global automative hub. The idea is to make India as the destination choice for design and
manufacture of automobiles and auto components, with outputs soaring to reach US$ 145
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billion which is basically accounting for more than 10% of the GDP. This would also provide
further employment to over 25 million people by 2016 making the automobile the sunrise
sector of the economy.
According to the Confederation of Indian Industry, the automobile sector currently employs
over 80 lac people. An extension in production in the automobile industry is forecasted, it is
likely to rise to Rs. 600000 crore by 2016.
Future Trends in the Automobile Industry
As the auto-shows began in January 2014, the industry promised a blend of technology and
automotives. With the recession trend breaking its leashes form the past two years, 2014 is
expected to get back on track with the sales of automobiles in the country.
Almost Self-governing cars are predicted to be on the streets by 2020

More than half the cars on the streets are going to be powered by diesel by 2020
Industry watcher Gartner indicates that 30 percent of motorists want parking info. The facility
is likely to come up after glitches in the infrastructure catch up.
High Performance Hybrid cars are likely to gain greater popularity among consumers.
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The Indian automobile industry has a prominent future in India. Apart from meeting the
advancing domestic demands, it is penetrating the international market too. Favoured with
various benefits such as globally competitive auto-ancillary industry; production of steel at
lowest cost; inexpensive and high skill manpower; entrenched testing and R & D centres etc.,
the industry provide immense investment and employment opportunities.
4. Company Information
MARUTI UDYOG LIMITED
Maruti Udyog Ltd is one of India's leading automobile manufacturers and the market
leader in the car segment, both in terms of volume of vehicles sold and revenue
earned. 18.28% of the company is owned by the government, and 54.2% by Suzuki of
Japan. The Indian government held an Initial Public Offering of 25% of the company
in June of 2003.The company annually exports more than 30,000 cars and has an
extremely large domestic market in India selling over five hundred thousand cars
annually. Maruti 800, till 2004, was the India's largest selling compact car ever since
it was launched in 1983. More than a million units of this car have been sold
worldwide so far. Currently, Maruti Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti"
is commonly used to refer to this compact car model. Till recently the term "Maruti",
in popular Indian culture, was associated to the Maruti 800 model.
The largest selling car from Maruti's stable, Maruti 800
In the order they were launched:
Maruti 800: Launched 1983. Largest selling car in India, till 2004.
Maruti Omni: Launched 1984.
Maruti Gypsy: Launched 1985.
Maruti 1000: Launched 1990
Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006.
Maruti Esteem:Launched 1994
Maruti Wagon-R:Launched 1999 Modified 2006
Maruti Baleno:Launched 1999
Maruti Alto:Launched 2000. Currently the largest selling car in India
Maruti Grand Vitara:Launched 2003
Maruti Grand Vitara XL-7
Maruti Versa: Launched 2004

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Maruti Swift: Launched 2005
Maruti Zen Estilo Launched in 2006
Maruti Swift Diesel Launched in 2007

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

has unparalleled service network. To ensure the vehicles sold by them are
serviced properly Maruti had 1545 listed Authorized service stations and 30
Express Service Stations on 30 highways across India.
Maruti Insurance- Launched in 2002 Maruti provides vehicle insurance to its

customers with the help of the National Insurance Company, Bajaj Allianz,
New India Assurance and Royal Sundaram. The service was set up the
company with the inception of two subsidiaries Maruti Insurance Distributors
Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited.
Maruti Finance- To promote its bottom line growth, Maruti launched Maruti
Finance in January 2002. Prior to the start of this service Maruti had started
two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group
and GE Countrywide respectively to assist its client in securing loan. Maruti
tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,
Standard Chartered Bank, and Sundaram to start this venture including its
strategic parnters in car finance. Again the company entered into a strategic
partnership with SBI in March 2003. Since March 2003, Maruti has sold over
12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently
available in 166 cities across India.
Maruti TrueValue- Maruti True Value is a service offered by Maruti Udyog

to its customers. It is a market place for used Maruti Vehicles. One can buy,
sell or exchange used Maruti vehicles with the help of this service in India
N2N Fleet Management- N2N is the short form of End to End Fleet
Management and provides lease and fleet management solution to corporates.
Its impressive list of clients who have signed up of this service include Gas
19
Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering,

Doordarshan, Singer India, National Stock Exchange and Transworld. This
fleet management service include end-to-end solutions across the vehicle's
life, which includes Leasing, Maintenance, Convenience services and
Remarketing.
Accessories- Many of the auto component companies other than Maruti

Udyog started to offer components and accessories that were compatible. This
caused a serious threat and loss of revenue to Maruti. Maruti started a new
initiative under the brand name Maruti Genuine Accessories to offer
accessories like alloy wheels, body cover, carpets, door visors, fog lamps,
stereo systems, seat covers and other car care products. These products are
sold through dealer outlets and authorized service stations throughout India.
Maruti Driving School
Exports- Maruti Exports Limited is the subsidary of Maruti Udyog Limited

with its major focus on exports and it does not operate in the domestic Indian
market. The first commercial consignment of 480 cars were sent to Hungary.
By sending a consignment of 571 cars to the same country Maruti crossed the
benchmark of 3,00,000 cars. Since its inception export was one of the aspects
government was keen to encourage. Every political party expected Maruti to
earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya,
Morocco, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador
are some of the markets served by Maruti Exports
Key Competitors Tata Motors

Hyundai India
Ford India
FIAT India
General Motors India
Pride Pointers
Indias largest automobile company
20
MUL Rolls out one car every 43 second.

Around 4 million people in India are proud to own maruti cars.
The highest installed production capacity
More than 35,000 trained technicians for customer support.
Largest Sales network-270 sales outlets
Largest service networks- 359 dealers workshop
Cities covered by sales- 172Cities covered by service- 922
Spare Parts Store- 26
MGP Shopee- 11
True Value network- 127 outlets
Some Milestones1983- Launched, hence bringing the first revolution in the Indian car market in terms
of
Technology
Availability- production Capacity
Fuel Efficiency
Choice of colour
Shape May- 1993, Zen the world car unvieled at a world premier.
November- 1994, Esteem the first luxury car on Indian roads launched
December- 1999, Baleno, the top end of the luxury car launched.
March-2000 WagonR the original tall boy launched.
September-2000, Alto launched in three variants
October-2001, Versa, Indias first MPV launched in three variants
April-2002 Grand Vitara, the SUV launched.
Some Milestones in Exports

MUL Export cars to more than 100 countries.
Indias largest exporter of completely built cars (CBU) during 2001-2002 both
in terms of volume and value.
Cumulative export sales crossing the 2.5 lakh mark, far more than any car
21
company in the country.
Local market trends
Sales, particularly in the small car segment, will drive passenger car sales in
the near in term. However, within the next two years , capacity is expected to
be twice the total demand for cars.
With developments in the small car segment acquiring a degree of stability in

terms of price competition, the action is shifting to the mid-size car segment.
sales in this segment will pick up as new models come in and income levels
rise but it is still some times till it comes anywhere close to the economy sized
segment.
What will also drive car sales is the wide availability of finance schemes by a
variety of banks and FIs.
Sales in the used car market is also expected to do well as more an dmore
older models get replaced by newer ones at a faster pace. The coming in of
Euro 3 and 4 norms will also increase scrappage rates.
In view of expected surplus in the domestic market, India will emerge as one
of the leading car sourcing point in the Indian subcontinent.
Consumers will be the beneficiaries as a result of marketing war, as they will

be offerd technologically superior products at better price and terms and
conditions. But the customer has a risk of model discontinuation as a result of
shake-out expected in the industry.
India offers a releatively low cast production base and is strategically

positioned as a launching base for third country export to Asia-pacific and
European markets
Growth in road transport, increasing urbanization and privatization of public

transport will into growing demand for commercial vechile which is sited to
reach three hundred thousand by 2001, growth of disposable incomes will
push up demand for two-wheelers to 4.5 million, of three-wheelers to 250
thousand and of passenger car to 420 thousand over the same time span.
India has added advantage of an extensively segmented market and a welldeveloped dealer network.
Growth of consumer finance leasing and hire-purchase options for vehicle

22
dealers and buyers also boost demand.
A well developed component industry offers opportunities for sourcing. The

scope is vast for foreign collaboration to produce branded models stressing on
emission standards, fuel efficiency, advanced features and contemporary
styles.
5. METHODOLOGY
Literature Review
Many developing countries regard the automobile industry as an economically
strategic sector in the light of its contribution to national production, employment and
technology, reinforced through the magnitude of upstream and downstream activities
(Fujita,2001). This is due to the fact that an automobile is made up of over 5000 parts
and components and thus the industry can create significant linkages and clustering as
many of these parts and components are manufactured by suppliers in other industries,
such as plastic, steel, electronic, rubber textile glass and metal(Tham 2003). Both
agree that the above factors as well as the large amounts of investment and large-scale
production typically required of capital-intensive industry, largely explain
governments extensive intervention in the sector prevalent in may countries
Background of the Study
The process of providing loans to the exporters requires official formalities to be
completed as the risk always lies with the bank. Primary study of this project is
about how the bank manages to balance the risk and the customer satisfaction as it
deals with foreign currency by providing loans in dollars..
Problem Statement and Importance of the Study
Maruti has come out with a concept of creating a new market for Pre Owned
(second hand) cars which it calls True Value.
23
Objectives, Scope and Limitations of the Project of Study

To know and study/analyses the effectiveness of second hand car sales by Maruti
Suzukis True Value in Mumbai city.
To know the nature of the market for used cars in the Twin Cities.
To enumerate the various players for used cars in the Twin cities.
To enumerate the various reasons for customers opting a used car.
To find out the awareness/ knowledge level of customers on the concept of
True Value
To access the impact of promotional activities on the sale of used cars.
Hypothesis:
Null Hypothesis: Preference for buying Pre Owned Car is more then New Car
Alternate Hypothesis: Preference for buying Pre Owned Car is not more then New Car
24
6. RESEARCH METHODOLOGY
Research Design
Research is one of the most important part of any study and pertains to the
collection of information and knowledge. Marketing research is defined as the
systematic design, collection, analysis and reporting of data and findings relevant to
a specific marketing situation facing the company. My project research is
Exploratory research this is concerned with discovering the general nature of the
problem and the variable that relate to it. Exploratory research is characterized by
high degree of feasibility and it tends to rely on secondary data.During this study,
exploratory research is carried to identify the variable like, customer satisfaction
level, basis of purchase decisions, important of brand name, customer opinion
regarding various preferred feature, the innovative advertising strategies used by the
companies, which decides the strength of the company to be in the customers mind
and also to grab the major portion in the market.
After discovering the general nature and the variable relating to it, with the help of
exploratory research, a descriptive research will carried out during the study for the
purpose of accurate description of variables.
Descriptive research carried out with the help of primary data collected from the
customer through questionnaires.
Source of Data
Primary Data:
Systematic collection of information directly from respondents. This data is collected
for the descriptive research. The survey data collected during the study includes the
data collected through questionnaire and face-to-face interview with customer to
know about the consumer behavior.
Secondary Data:
The first step in data collection approach is to look for secondary data. Usually it is
the data developed for some purpose other than for helping to solve the problem at
hand. Secondary data are collected through various magazines, internal experts,
website, directories, external experts and miscellaneous report.
25
Data Collection Instrument

Survey Questionnaire
Population
For the purpose of this project self-administered questionnaire to potential customers and for
standard commercial business enterprises located in Mumbai city.
Sampling Method
Convenient Sampling
For our survey we have utilized convenient sampling because we could not have
access to all the users. We, therefore, got our survey filled from All the people using
A2 segment cars and the people who can afford an A3 segment cars and standard
commercial enterprises located in Mumbai.
Sampling Frame
List of standard commercial enterprises located In Mumbai, List of A2 segment car
user and list of people who can afford A3 segment cars.
Sampling unit:
Standard Hotels, Business enterprises and households
Sample Size:
100
Sampling Method
Samples are selected on Non probability convenient sampling method.
26
7. Data Analysis and Interpretation
For Customers (Professionals)

Q 1. You are in which profession
Profession of Respondent
Valid
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Total
Frequency
11
8
19
24
17
21
100
Percent
11.0
8.0
19.0
24.0
17.0
21.0
100.0
Valid Percent
11.0
8.0
19.0
24.0
17.0
21.0
100.0
Cumulative
Percent
11.0
19.0
38.0
62.0
79.0
100.0
30
20
Frequency
10
0
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Findings:
11 % of Respondents are Engineers
8 % of Respondents are Doctors
19 % of Respondents are Lecturars
24 % of Respondents are Businessman
17 % of Respondents are Advacates
21 % of Respondents are Bankers
Interpretation
Among different demographic classification in the research profession of the
respondents is the prime factor and her professional like business, advocates, bankers,
engineers, lectures are focused customers.
27
Q 2. Age of Respondent
Age of Respondent
Valid
25-35
35-45
45-55
>55
Total
Frequency
36
37
23
4
100
Percent
36.0
37.0
23.0
4.0
100.0
Valid Percent
36.0
37.0
23.0
4.0
100.0
Cumulative
Percent
36.0
73.0
96.0
100.0
Age of Respondent
40
30
Frequency
20
10
0
25-35
35-45
45-55
>55
Age of Respondent
Findings:
36 % of Respondents are of age 25-35
4 % of Respondents are of age greater than 55
Interpretation
The other demographic classification is the age of the respondents, as India is having
very significant portion of young population so there are more than 73% of the people
are in age group 25 to 45 willing to have cars.
28
Q 3. Gender of Respondent
Gender of Respondent
Valid
Male
Female
Total
Frequency
88
12
100
Percent
88.0
12.0
100.0
Valid Percent
88.0
12.0
100.0
Cumulative
Percent
88.0
100.0
100
80
60
Frequency
40
20
0
Male
Female
Findings:
88 % of Respondents are male
12 % of Respondents are male
Interpretation:
The gender is the prime important factor and the male is dominating the auto sector
and remote sector is growing
29
Q.4 Income of Respondent

Income of Respondent
Valid
Rs 50,000-Rs 1,00,000
Rs 1,00,000-Rs 1,50,000
Rs 1,50,000-Rs,2,00,000
> 2,00,0000
Total
Frequency
19
42
36
3
100
Percent
19.0
42.0
36.0
3.0
100.0
Valid Percent
19.0
42.0
36.0
3.0
100.0
Cumulative
Percent
19.0
61.0
97.0
100.0
50
40
30
Frequency
20
10
0
Rs 50,000-Rs 1,00,00
Rs 1,50,000-Rs,2,00,
Rs 1,00,000-Rs 1,50,
> 2,00,0000
Findings:
19 % of Respondents are under income Rs.50,000-Rs.1,00,000
42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000
36 % of Respondents are under income Rs.1,50,000-Rs.2,00,000
3 % of Respondents are under income greater than >2,00,000
Interpretation
as I have already told that companies are focusing on the middle class segment of the
Indian market in the income group or 1 lack to 2 lack which accounts to 78 %
approximately
30
Q 5. Marital Status
Marital Status
Valid
Married
Unmarried
Total
Frequency
81
19
100
Percent
81.0
19.0
100.0
Valid Percent
81.0
19.0
100.0
Cumulative
Percent
81.0
100.0
Marital Status
100
80
60
Frequency
40
20
0
Married
Unmarried
Marital Status
Findings:
81 % of Respondents are Married
19 % of Respondents are Unmarried
Interpretation
Among the married and unmarried customers the car owner and the prospective car
customer are the married one the safety provided to the self and the family is prime
importance in buying car and they account to 80%
31
Q 6. Number of Children
Number oif Children
Valid
One
Two
More than 2
No
Total
Frequency
31
38
12
19
100
Percent
31.0
38.0
12.0
19.0
100.0
Valid Percent
31.0
38.0
12.0
19.0
100.0
Cumulative
Percent
31.0
69.0
81.0
100.0
Number oif Children

40
30
Frequency
20
10
0
One
Two
More than 2
No
Number oif Children
Findings:
31 % of Respondents have one child
38 % of Respondents have two children
12 % of Respondents have more than two children
19 % of Respondents have no children
Interpretation
as above explained the safety of he family is one of the prime important the children
of the family and there safety is demanding the parents to own a car
32
Q.7 Dou you own a car

Dou you own a car
Valid
Yes
No
Total
Frequency
32
68
100
Percent
32.0
68.0
100.0
Valid Percent
32.0
68.0
100.0
Dou you own a car

80
70
60
50
40
Frequency
30
20
10
0
Yes
No
Dou you own a car
Findings:
32 % of Respondents have their own car
68 % of Respondents dont have their own car
33
Cumulative
Percent
32.0
100.0
Q.8
Is
it
New
car
or
Second
Hand
Ca
Is it New car or Second Hand Car
Valid
New Car
Pre-Owned car
No Car
Total
Frequency
17
15
68
100
Percent
17.0
15.0
68.0
100.0
Valid Percent
17.0
15.0
68.0
100.0
Cumulative
Percent
17.0
32.0
100.0

17.5
17.0
17.0
16.5
16.0
Frequency
15.5
15.0
15.0
14.5
New Car
Pre-Owned car
Findings:
54 % of Respondents have new car
46 % of Respondents have Pre owned cars
Interpretation
As for the auto industry standards the sales of new and pre owned cars is 1:1 as per
the research it is showing the same where how car seekers, and pre owned car seekers
are equal.
Q.9 Car Purchased from

34
Car Purchased from
Valid
Missing
Total
Certified Dealer
UnCertified Dealer
Total
System
Frequency
5
10
15
85
100
Percent
5.0
10.0
15.0
85.0
100.0
Valid Percent
33.3
66.7
100.0
Car Purchased from

12
10
Frequency
0
Certified Dealer
UnCertified Dealer
Car Purchased from
Findings:
33 % of Respondents have purchased cars from certified dealers
67 % of Respondents have purchased cars from uncertified dealers
35
Cumulative
Percent
33.3
100.0
Q.10 How did you come to Know about Dealer

How did you come to Know about Dealer
Valid
Missing
Total
Advertisements
Friends/Neighbours
Other Dealers
Total
System
Frequency
8
5
2
15
85
100
Percent
8.0
5.0
2.0
15.0
85.0
100.0
Valid Percent
53.3
33.3
13.3
100.0
Cumulative
Percent
53.3
86.7
100.0

10
Frequency
0
Advertisements
Friends/Neighbours
Other Dealers
Findings:
54 % of Respondents came to know about uncertified dealers through Advertisements
33 % of Respondents came to know about uncertified dealers through Friends &
Neighbours
13 % of Respondents came to know about uncertified dealers through other dealers
Interpretation
Advertisement and word of mouth are playing very important role in him educating
the customers about dealers which account to around 87 % approximately.
36
Q.11 Would you buy a new car or pre-owned car

Would you buy a new car or pre-owned car
Valid
Missing
Total
New car
Pre owned car
Dont Want Cars
Total
System
Frequency
21
43
4
68
32
100
Percent
21.0
43.0
4.0
68.0
32.0
100.0
Valid Percent
30.9
63.2
5.9
100.0
Cumulative
Percent
30.9
94.1
100.0

50
40
30
Frequency
20
10
0
New car
Pre owned car
Dont Want Cars
Findings:
31 % of Respondents wants to buy new car
63 % of Respondents wants to buy pre owned car
6 % of Respondents dont wants to buy car
Interpretation
Among the prospective car customers majority of him customers are willing to buy
the pre owned cars.
37
Q.12) If pre-owned car, would you prefer to buy from

If pre-owned car, would you prefer to buy from
Valid
Missing
Total
Certified Dealer
Uncertified Dealer
Total
System
Frequency
16
27
43
57
100
Percent
16.0
27.0
43.0
57.0
100.0
Valid Percent
37.2
62.8
100.0
Cumulative
Percent
37.2
100.0

30
20
Frequency
10
0
Certified Dealer
Uncertified Dealer
Findings:
37 % of Respondents wants to buy pre-owned car from certified dealers
63 % of Respondents wants to buy pre-owned car from uncertified dealers
Interpretation
As budget is the prime concern for the customers who want buy the pre owned cars
and there certified dealer are bit expressive for the customers of this segment. So
majority of them go to Uncertified customers
38
Q.13) Factors considered in buying a car

Factors considered in buying a car
Valid
Missing
Total
Budget
Milage
Age
Personal or
Company owned
Total
System
Frequency
29
23
3
Percent
29.0
23.0
3.0
Valid Percent
50.0
39.7
5.2
Cumulative
Percent
50.0
89.7
94.8
3.0
5.2
100.0
58
42
100
58.0
42.0
100.0
100.0

40
30
Frequency
20
10
0
Budget
Milage
Age
Personal or Company
Findings:
50 % of Respondents considers budget while buying pre-owned car
40 % of Respondents considers milage while buying pre-owned car
5 % of Respondents considers age while buying pre-owned car
5 % of Respondents considers personal/company owned while buying pre-owned car
Interpretation
As the Indian customers are more concerned about the economy of the car the budget
and mileage are gain important.
39
Q.14) Have you heard about "Maruti True Value"

Have you heard about "Maruti True Value"
70
60
50
40
30
Frequency
20
10
0
Yes
No
Have you heard about "Maruti True Value"
Findings:
40 % of Respondents heard about Maruti True Value
60 % of Respondents didnt heard about Maruti True Value
40
Q.16) From where you heard about "Maruti True Value"

From where you heard about "Maruti True Value"
Valid
Missing
Total
Advertisements
Friends/Neighbours
Other Dealers
Total
System
Frequency
19
11
10
40
60
100
Percent
19.0
11.0
10.0
40.0
60.0
100.0
Valid Percent
47.5
27.5
25.0
100.0
Cumulative
Percent
47.5
75.0
100.0

20
Frequency
10
0
Advertisements
Friends/Neighbours
Other Dealers
Findings:
47 % of Respondents heard about Maruti True Value from advertisements
26 % of Respondents heard about Maruti True Value from friends/neighbours
27 % of Respondents heard about Maruti True Value from other dealers
Interpretation
Advertising through different channel of media are to be focused as majority of the
respondents dont know about the Maruti true value.
41
Q.17) Would you prefer to buy from "Maruti True Value" if it is

provided 3 free services and 1 year gurantee
Would you prefer to buy from "Maruti True Value" if it is provided 3 free
services and 1 year gurantee
Valid
Missing
Total
Yes
No'
Total
System
Frequency
26
27
53
47
100
Percent
26.0
27.0
53.0
47.0
100.0
Valid Percent
49.1
50.9
100.0
Cumulative
Percent
49.1
100.0
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
30
20
Frequency
10
0
Yes
No'
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
Findings:
49 % of Respondents will refer to buy from "Maruti True Value" if it is provided 3
free services and 1 year gurantee
51 % of Respondents will not prefer to buy from "Maruti True Value" if it is provided
3 free services and 1 year gurantee
42
For Students(Professional)
Q 1) Are you Localite or non localite
Are you Localite or non localite
Valid
Localite
Non-Localite
Total
Frequency
14
11
25
Percent
56.0
44.0
100.0
Valid Percent
56.0
44.0
100.0

60
56
50
44
40
30
Percent
20
10
0
Localite
Non-Localite
Findings:
56% of Respondents said they are localites
44% of Respondents said they are non- localites
43
Cumulative
Percent
56.0
100.0
Q 2) If non- localite how long is it since you are studying here?

If non- localite how long is it since you are studying here?
Valid
2 Yrs
2 yrs and above
Total
Frequency
8
17
25
Percent
32.0
68.0
100.0
Valid Percent
32.0
68.0
100.0
Cumulative
Percent
32.0
100.0

80
70
68
60
50
40
30
32
Percent
20
10
0
2 Yrs
2 yrs and above
Findings:
32% of Respondents are under 0-2 year courses
68% of Respondents are under 2 year and above courses
44
Q 3. Monthly Pocket money

Monthly Pocket money
Valid
>10000
<10000
Total
Frequency
11
14
25
Percent
44.0
56.0
100.0
Valid Percent
44.0
56.0
100.0

60
56
50
44
40
30
Percent
20
10
0
>10000
<10000
Findings:
56% of Respondents are having pocket money >10000
44% of Respondents are having pocket money <10000
45
Cumulative
Percent
44.0
100.0
Q. 4) Do you stay in hostel or room

do you stay in hostel or room
Valid
Hostel
Rented house
Total
Frequency
7
18
25
Percent
28.0
72.0
100.0

80
60
40
Percent
20
0
Hostel
Rented house
Findings:
28% of Respondents stay in hostel.
72% of Respondents are stay in rented house.
46
Valid Percent
28.0
72.0
100.0
Cumulative
Percent
28.0
100.0
Q. 5) How far is it from your college?

How far is it from your college?
Valid
Far
not very far
close by.
Total
Frequency
9
9
7
25
Percent
36.0
36.0
28.0
100.0
Valid Percent
36.0
36.0
28.0
100.0

40
36
36
30
28
20
Percent
10
0
Far
not very far
close by.
Findings:
36% of Respondents stay far by college.
36% of Respondents stay which is not very far by college.
28% of Respondents stay near by college.
47
Cumulative
Percent
36.0
72.0
100.0
Q.6) Do you own a vehicle?

Do you own a vehicle?
Valid
Yes
No
Total
Frequency
15
10
25
Percent
60.0
40.0
100.0
Valid Percent
60.0
40.0
100.0
Do you own a vehicle?

No
40.0%
Yes
60.0%
Findings:
60% of Respondents own a vehical
40% of Respondents do not own a vehical.
48
Cumulative
Percent
60.0
100.0
Q.7) If Yes, is it a
if Yes, is it a
Valid
Missing
Total
Frequency
9
6
15
10
25
2 wheeler
4 wheeler
Total
System
Percent
36.0
24.0
60.0
40.0
100.0
Valid Percent
60.0
40.0
100.0
Cumulative
Percent
60.0
100.0
if Yes, is it a
70
60
60
50
40
40
30
Percent
20
10
0
2 wheeler
4 wheeler
if Yes, is it a
If you own a 4 wheeler, is it a

Valid
Missing
Total
new car
pre-owned car
Total
System
Frequency
1
4
5
20
25
Percent
4.0
16.0
20.0
80.0
100.0
49
Valid Percent
20.0
80.0
100.0
Cumulative
Percent
20.0
100.0

100
80
80
60
40
Percent
20
20
0
new car
pre-owned car
If second hand car, have you purchased it locally

Valid
Missing
Total
Yes
No
Total
System
Frequency
3
1
4
21
25
Percent
12.0
4.0
16.0
84.0
100.0
Valid Percent
75.0
25.0
100.0

80
75
60
40
25
Percent
20
0
Yes
No
50
Cumulative
Percent
75.0
100.0
would you like to buy a second-hand 4 wheeler for time being?

Valid
Missing
Total
Yes
No
Total
System
Frequency
12
11
23
2
25
Percent
48.0
44.0
92.0
8.0
100.0
Valid Percent
52.2
47.8
100.0
Cumulative
Percent
52.2
100.0

60
50
52
48
40
30
Percent
20
10
0
Yes
No
51
would you buy it from a

Valid
Missing
Total
certified dealer
An uncertified dealer
Total
System
Frequency
4
8
12
13
25
Percent
16.0
32.0
48.0
52.0
100.0
certified dealer
33.3%
An uncertified deale
66.7%
52
Valid Percent
33.3
66.7
100.0
Cumulative
Percent
33.3
100.0
What was the price will/ did you look for ?

Valid
Missing
Total
50,000- 75,000
75,000- 1,50,000
Total
System
Frequency
8
4
12
13
25
Percent
32.0
16.0
48.0
52.0
100.0

70
67
60
50
40
33
30
Percent
20
10
0
50,000- 75,000
75,000- 1,50,000
53
Valid Percent
66.7
33.3
100.0
Cumulative
Percent
66.7
100.0
What is the age of the car you would consider?

Valid
Missing
Total
2-3 years
4-5 years
5-10 years
Total
System
Frequency
7
3
2
12
13
25
Percent
28.0
12.0
8.0
48.0
52.0
100.0
Valid Percent
58.3
25.0
16.7
100.0

70
60
58
50
40
30
25
20
Percent
17
10
0
2-3 years
4-5 years
5-10 years
54
Cumulative
Percent
58.3
83.3
100.0
Have you heard of Bellad Motors-'Maruti True Value'- Hubli ?

From what source you have heard about it?
Valid
Yes
No
Total
Frequency
16
9
25
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0

70
60
50
40
30
Percent
20
10
0
Yes
No
55
Cumulative
Percent
64.0
100.0

70
60
50
40
30
Percent
20
10
0
Yes
No

100
80
60
40
Percent
20
0
Yes
No

120
100
80
60
Percent
40
20
0
No
56
Would you buy a car from 'True Value' if it gave 3 free service
backup, and 1 yr guarantee?
Would you buy a car from 'True Value' if it gave 3 free service backup,
and 1 yr guarantee?
Valid
Yes
No
Total
Frequency
10
15
25
Percent
40.0
60.0
100.0
Valid Percent
40.0
60.0
100.0
Cumulative
Percent
40.0
100.0
Would you buy a car from 'True Value' if it gave 3

free service backup,
70
60
60
50
40
40
30
Percent
20
10
0
Yes
No
Would you buy a car from 'True Value' if it gave 3 free service backup,
57
For Dealers
Since when is your organization established?
Valid
0-5
5-10
10-15
Total
Frequency
3
2
5
10
Percent
30.0
20.0
50.0
100.0
Valid Percent
30.0
20.0
50.0
100.0

60
50
40
30
Percent
20
10
0
0-5
5-10
10-15
58
Cumulative
Percent
30.0
50.0
100.0
Does your organization use middlemen?

Valid
Yes
No
Total
Frequency
5
5
10
Percent
50.0
50.0
100.0
Valid Percent
50.0
50.0
100.0

60
50
40
30
Percent
20
10
0
Yes
No
59
Cumulative
Percent
50.0
100.0
What
kind
of
promotional
activities
What kind of promotional activities do you use?

70
60
50
40
30
Percent
20
10
0
Yes
No

100
80
60
40
Percent
20
0
Yes
No

60
50
40
30
Percent
20
10
0
Yes
No
60
do
you
use?
When is the peak time for the Maximum Sales?

80
60
40
Percent
20
0
Yes
No

70
60
50
40
30
Percent
20
10
0
Yes
No

100
80
60
40
Percent
20
0
Yes
No
61
What is the average sales per year?

Valid
25- 125
125- 225
225- 325
Total
Frequency
6
3
1
10
Percent
60.0
30.0
10.0
100.0
Valid Percent
60.0
30.0
10.0
100.0

70
60
50
40
30
Percent
20
10
0
25- 125
125- 225
225- 325
62
Cumulative
Percent
60.0
90.0
100.0
ANALYSIS USING SPSS

Analysis Using SPSS
Crosstab of Profession and Buying a New Car or a Pre Owned

Profession of Respondent * Would you buy a new car or pre-owned car
Crosstabulation
Count
Profession of
Respondent
Would you buy a new car or

pre-owned car
Pre owned Dont Want
New car
car
Cars
2
1
1
3
6
10
1
4
10
1
3
10
5
9
2
21
43
4
Engineer
Doctor
Lecturar
Business
Advocate
Banker
Total
Total
12
10
Would you buy a new
New car
Count
2
Pre owned car
0
Dont Want Cars

Engineer
Lecturar
Doctor
Advocate
Business
Banker
Interpretation
Out of 3 engineers 2 says new car, and 1 say pre owned car.
Out of 4 doctors 2 says new car, and 1 say pre owned car.
Out of 17 lecturers 6 say new car and 10 say pre owned car.
Out of 15 Business men 4 says new car, and 10 say pre owned car.
Out of 13 advocates 3 say new car, and 10 say pre owned car.
Out of 16 bank employees, 5 say new car, and 4 say pre owned car.
63
3
4
17
15
13
16
68
Crosstab of Income and Buying a New Car or a Pre Owned
Income of Respondent * Would you buy a new car or pre-owned car Crosstabulation
Count
Income of
Respondent
Rs 50,000-Rs 1,00,000
Rs 1,00,000-Rs 1,50,000
Rs 1,50,000-Rs,2,00,000
Total
Would you buy a new car or

pre-owned car
Pre owned Dont Want
New car
car
Cars
3
13
3
9
27
1
9
3
21
43
4
30
20
Would you buy a new
10
Count
New car
Pre owned car
0
Dont Want Cars
Rs 50,000-Rs 1,00,00
Rs 1,50,000-Rs,2,00,
Rs 1,00,000-Rs 1,50,
InterpretationOut 19 respondents falling in the income category of Rs 50, 000- 1, 00, 000,
13 prefer pre- owned car.
Out 37 respondents falling in the income category of Rs 1, 00 000- 1, 50, 00
Out 12 respondents falling in the income category of Rs 1, 50, 000- 2, 00, 000
64
Total
19
37
12
68
Awareness of Maruti True Value i) Age wiseCrosstab

Count
Age
25-35
35-45
45-60
Total
aware of Maruti True

Value
no
yes
33
10
30
9
16
2
79
21
Total
43
39
18
100
Interpretationout 43 respondents falling in the age category of 25- 35, 10 have heard of Maruti
True Value.
Out 39 respondents falling in the age category of 35- 45, 9 have heard of Maruti
True Value.
Out 18 respondents falling in the age category of 45- 60, 2 have heard of Maruti
True Value.
ii) Profession wiseCrosstab

Count
PROFESSION
Total
lecturer
banker
advocate
business
engineer
housewife
aware of Maruti True

Value
no
yes
31
5
9
4
18
5
11
4
3
1
7
2
79
21
Total
36
13
23
15
4
9
100
Out of 36 lecturers 5 have heard of True Value.
Out of 13 bank employees, 4 have heard of True Value
Out of 23 advocates 5 have heard of True Value.
Out of 15 Business men 4 have heard of True Value.
Out of 4 engineers 1 has heard of True Value.
65
8. RESULTS AND FINDINGS

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

23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater
than 55
88 % of Respondents are male, 12 % of Respondents are Female
42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 % of

Respondents are under income Rs.1,50,000-Rs.2,00,000
81 % of Respondents are Married
31 % of Respondents have one child and 38 % of Respondents have two

children
68 % of Respondents dont have their own car
Out of remaining 32% of sample size 54 % of Respondents have Pre owned

cars
54 % of Respondents came to know about uncertified dealers through

Advertisements and33 % of Respondents came to know about uncertified
dealers through Friends & Neighbours
Out of 68% of sampling who dont own car, 31 % of Respondents wants to go

for new car and 63 % of Respondents wants to buy pre owned car and 63%
would buy it from uncertified dealers.
50 % of Respondents considers budget while buying pre-owned car and 40 %

of Respondents considers milage while buying pre-owned car,
40 % of Respondents heard about Maruti True Value
Remaining 60% heard it from Advertisements, friends/neighbours
58% say they would not buy from True Value
Sample of Students
The sample is non-localities
68% of them are staying here since more than 2 yrs.
56% get more than Rs 10,000/- as their monthly pocket money.

66
60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler.
80% out of the 40% owning a 4 wheeler, own a Pre-Owned Car.
70% have purchased it locally.
55% of the sample is interested in buying a car (pre- owned) for time being.
78% said they would buy from an Un-certified Dealer.
Expected price range is- 83% said Rs 50,000- 75,000
53% are aware of the concept of Marutis True Value.
42% have heard it from news papers, and 0% from melas.
71% say they would not buy from Maruti True Value.
Sample of Dealers 20 % are established in the market since 5-10 years and 50 % are since from
10-15 years
50% use middlemen for sales.
Promotion activities
60%- use news papers
40% - pamphlets
25%- Melas
70% consider festive season as peak point for sales.

The average sales per year is- 60% said- 25-125 cars
30% said- 425- 525 cars
67% say customers look for budget
68% say customers look for age of the car
90% say customers look for mileage
67
68
Recommendations and Suggestions -
With my findings the suggestions that I can give are-
For the Professionals
Target Segment- the target customers whom I suggest Bellad Motors should
concentrate is the advocates, lecturers and petty business men, because they
are the respondents who are keen in buying pre owned cars.
The target can also be segmented age wise, 25-45 are the most interested
segment in buying a pre owned car.
Bellad Motors as a dealer is very well known and well established in the twin
city
market, but the concept of True Value is not known to MOST of the
localities. Therefore Bellad Motors should make an effort to advertise and

promote True Value through various mediums like news papers, melas and
pamphlets.
Mostly the age group of 25-35 is aware of the Marutis True Value
concept.
Family size influences in buying a car is proved through the Chi Square
Test,
therefore respondents of the lower income category can also be
looked at, for the
sales of the pre owned cars.
Out of respondents who own pre owned cars, 98% bought it from a UnCertified
dealer, this shows that people do not prefer buying pre-
owned cars from certified
dealers, therefore Maruti True Value should
make an effort to change this mind set of the people in Dharwad city.
When respondents were asked what have they heard of Maruti True Value,
the responses were mostly negative. Price was the major issue they have
with True Value. They say that it charges much a higher price than the
other dealers; therefore I suggest that either Maruti should try to reduce
the price of the vehicles or Bellad Motors should try to change the
perception of the people by highlighting the plus points like 1 yr warranty
and 3 free services.
Pre-Owned is more of a sophisticated word for the localities; the other petty
an upper hand on this front, as they use a much
69
dealers have
simpler and an easily understood word second hand. Therefore I suggest

that Bellad considers this point,
as this was the insight got from the
personal interaction with the respondents.
Another drawback of Bellad Motors is that True Value section cannot be
easily seen
from the highway; only a keen observer can notice it, a bigger
board or a hoarding
can be placed in a most strategic location of the showroom.
The Bellad showroom
is what comes to peoples mind when asked if they
have heard of Maruti True
Value, it is because of the easy view from the
highway.
For the students
Most of the students want to buy a pre owned car from an un certified
dealer, because of the price factor, therefore when targeting the students
category lowering the price should be considered. I suggest that the price
can be lowered by not including the free service and warranty on the car,
as the students do not mind it.
The expected price of the pre owned cars is from Rs 50,000- 75,000.
The expected age of the car is mostly 3-5 yrs, which the company can
consider these aspects when targeting the students.
More than 50% of the students are not aware of the True Value concept,
which again calls for advertisements from Bellad Motors.
61% of the students get more than Rs 10,000 as their pocket money, this
signifies that it can be assumed the students are from well to do families
and Bellad Motors can use this as a advantage and try perusing them.
From the personal interaction with the students, the insights gained were,
that the students go to these second hand car melas, and 0% 0f them have
known or heard of True Value conducting melas, therefore I suggest that it
be advertised properly.
The awareness can be spread by using banners and displayed it in front of

the college campus in the most attractive manner.
The students look for sponsors, True Value can use this as one of their
tools in spreading the awareness, by displaying one of the pre owned cars,
70
with the minimal price rate
71
09.Conclusion
The study helped me gain valuable insights in Opportunity Analysis and
Consumer Behavior, towards buying a pre owned car. This project titled , has
been a knowledge gaining experience for me. By interacting with the respondents
and making visits to the Uncertified Dealers. I have understood that
understanding customers is an art and it takes a very strong brand image for a
company to retain & grow its market share. The results of the survey proved to be
both encouraging and partly discouraging too. The respondents were not very
positive about Marutis True Value, which was quite discouraging and a
negative sign for the company. The segment for which Bellad Motors should
cater to is a price sensitive segment, so as the organization should focus on
highlighting the additional perquisites that they would provide with the car, it is
going to bond well with the targeted market and even grow their market to all the
geographical areas. Though there are many competitors in the market for this
segment, the company has an added advantage, but still it cannot rule out the local
dealers. But I believe that Bellad Motors Maruti True Value has what it takes to
become a name to reckon with in the market and I offer my best wishes for the
same and hope that my work will be of some use for the company.
The majority of the indian population is of the middle class segment which demand for the
low cost and low maintaince cars this very reason has given birth to the pre-owned car
segment which is growing at the accelerating growth rate.
72
10. Bibliography
http://articles.economictimes.indiatimes.com/2014-0905/news/53601725_1_maruti-suzuki-rc-bhargava-suzuki-motor-corp
http://www.maruticarsindia.in/2013/11/maruti-suzukis-new-mpv-project-rx-tocompete-with-toyota-innova.html
http://www.rncos.com/Market-Analysis-Reports/Used-Car-Market-in-IndiaIM360.htm
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1.

2. INTRODUCTION TO THE TOPIC

Title of the project

ANALYSIS OF THE CAR MARKET IN INDIA

Multi-Utility Vehicles (MUVs)

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

Key Demand Drivers

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

United Kingdom 373

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

(Actual) (Forecast) (Forecast)

Major Manufacturers of Automobiles in India

Maruti Udyog Ltd.

General Motors India

Ford India Ltd.

Daewoo Motors India

Hyundai Motor India Ltd.

Royal Enfield Motors

Swaraj Mazda Ltd

Foreign players in India

CAR STATISTICS INDIA

In the recent years, India has

Cost competitiveness in terms of labor and raw material.

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

Potential to harness global brand image of the parent company.

Perception about quality.

China, Malaysia, Thailand, etc.

Many other countries also have strategies for export promotion.

Attaining high quality for global standards.

Continuous cost reduction for global competitiveness.

Supply chain management (logistics).

Attaining economies of scale & scope.

Improve infrastructure (ports, roads, etc).

Improve EXIM regulations.

The Indian passenger car segment

Economy segment (up to 0.25mn)

Maruti Omni, 800, Padmini

Mid-size segment (Rs0.25-0.45mn)

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

Tata Indica, Maruti esteem,Ford Ikon,

Super luxury segment ( Above Rs 1mn)

Merceds Benz, BMW, Nissan, Audi,

Industry analysis using porters five force:

Theses five force of

competition include three source of Horizontal competition competition from

Competition from substitute

transportation system. However, they have been remarkably ineffective in

Treat of new entrants

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

Highly Concentrated Industry : The Indian car industry is highly concentrated

Increase in Working Capital Needs: The intense rivalry between the

Bargaining power of Buyers

Car manufacturing is basically assembly of components procured from ancillaries or auto

Two-wheelers which comprise of mopeds, scooters, motorcycles and electric two-wheelers

Largest three-wheeler market

Sturdy legal and banking infrastructure

India is the third largest investor base in the world

Availability of inexpensive skilled workers

Market segmentation and product innovation

Almost Self-governing cars are predicted to be on the streets by 2020

Maruti Omni: Launched 1984.

Maruti Gypsy: Launched 1985.

Maruti 1000: Launched 1990

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