Project Report Main

CHAPTER 1
INTRODUCTION
FISAT BUSINESS SCHOOL 1|P age

INTRODUCTION
The organizational structure refers to the formal configuration between individuals and
the group with respect to the allocation of task, responsibilities and authorities within
organization. The frame work of an organization is the structure, where in the job of each and
every person is defined and coordinated to achieve the organizational goal. It depicts the
authority and responsibility relationship between the various positions in the organization by
showing who reports to whom. So an organizational study is essential to know and understand
the various functions, responsibilities and authorities in an organization. This study is based on
an automobile Dealer who operates across south and central parts of Kerala. The study includes
the hierarchy of different departments, their functions and other activities that the organization
undergoes.
Automobile dealers are the link between the manufacturer of the automobile and the consumer.
With their large inventories of cars, dealers provide consumers with a wide array of vehicles to
meet their needs at different price points. The automobile dealer industry sells most of the
automobiles, light trucks, and vans that operate on the road today. Sales of these vehicles are
subject to changing consumer tastes, the popularity of the manufacturer's vehicle models, and
the intensity of competition with other dealers. Along with the sale of the car, most dealers also
sell additional automobile-related services to potential buyers. These services include extended
warranties, undercoating, insurance, and financing. Aftermarket sales departments sell these
services and other merchandise after vehicle salespersons have closed a deal. Sales of these
packages greatly increase the revenue generated for each vehicle sold. Because sales of
automobiles fluctuate significantly, automotive dealers offer generous incentives, rebates, and
financing deals during slow periods to maintain high sales volumes and to reduce inventories.

CHAPTER 2
INDUSTRY PROFILE

INDIAN AUTOMOBILE INDUSTRY
The automobile industry in India is the seventh largest in the world with an annual
production of over 2.6 million units in 2009. In 2009 , India emerged as Asia's
fourth largest exporter of automobiles, behind Japan, South Korea and Thailand. By
2050, the country is expected to top the world in car volumes with
approximately 611 million vehicles on the nation's roads.
Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti
Suzuki and Mahindra and Mahindra, expanded their domestic and international
operations. India's robust economic growth led to the further expansion of its
domestic automobile market which attracted significant India-specific investment by
multinational automobile manufacturers. In February 2009 , monthly sales of passenger
cars in India exceeded 100,000 units.
Embryonic automotive industry emerged in India in the 1940s. Following

the independence, in 1947, the Government of India and the private sector launched
efforts to create an automotive component manufacturing industry to supply to the
automobile industry. However, the growth was relatively slow in the 1950s and
1960s due to nationalization and the license raj which hampered the Indian private
sector After 1970, the automotive industry started to grow, but the growth was
mainly driven by tractors, commercial vehicles and scooters. Cars were still a
major luxury. Japanese manufacturers entered the Indian market ultimately leading to
the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building
motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and
multi-national car companies launched operations. Since then, automotive component and
automobile manufacturing growth has accelerated to meet domestic and export demands.
India has emerged as one of the world's largest manufacturers of small cars.
According to New York Times, India's strong engineering base and expertise in the
manufacturing of low-cost, fuel-efficient cars has resulted in the expansion of manufacturing
facilities of several automobile companies like Hyundai
Motors, Nissan, Toyota, Volkswagen and Suzuki.
In 2008, Hyundai Motors alone exported 240,000 cars made in India. Nissan Motors plans to
export 250,000 vehicles manufactured in its India plant by 2011. Similarly, General Motors
announced its plans to export about 50,000 cars manufactured in India by 2011.
In September 2009, Ford Motors announced its plans to setup a plant in India with an annual
capacity of 250,000 cars for US$500 million. The cars will be manufactured both for the Indian
market and for export. The company said that the plant was a part of its plan to make India the
hub for its global production business. Fiat Motors also announced that it would source more
than US$1 billion worth auto components from India. According to Bloomberg L.P., in 2009
India surpassed China as Asia's fourth largest exporter of cars

Rank wise Largest Automobile Manufacturers in India by Sales
1. Maruti Suzuki
2. Hyundai
3. Tata
4. Mahindra
5. GM Chevrolet
6. Honda
7. Toyota
8. Ford
9. Fiat
Suzuki Motor Corp., Hyundai Motor Co., and Nissan Motor Co. are making India a hub for
overseas sales of minicars as incentives lift demand for smaller, fuel-efficient autos. Helped by
cheaper labor and a surging local market, India this year overtook China in auto exports and is
challenging Thailand and South Korea as an alternative production center in Asia.
Hyundai, South Korea’s biggest carmaker, plans to export 300,000 cars from India this year,
more than its sales in the local market, a first since setting up a plant a decade back.
THE DEALERSHIP BUSINESS

Automobile dealers are the link between the manufacturer of the automobile and the consumer.
With their large inventories of cars, dealers provide consumers with a wide array of vehicles to
meet their needs at different price points.
Goods and services. The automobile dealer industry sells most of the automobiles, light
trucks, and vans that operate on the road today. Sales of these vehicles are subject to changing
consumer tastes, the popularity of the manufacturer's vehicle models, and the intensity of
competition with other dealers. Along with the sale of the car, most dealers also sell additional
automobile-related services to potential buyers. These services include extended warranties,
undercoating, insurance, and financing. Aftermarket sales departments sell these services and

other merchandise after vehicle salespersons have closed a deal. Sales of these packages greatly
increase the revenue generated for each vehicle sold. Because sales of automobiles fluctuate
significantly, automotive dealers offer generous incentives, rebates, and financing deals during
slow periods to maintain high sales volumes and to reduce inventories.
Performing repair work on vehicles is another profitable service provided in this industry.
Service departments at motor vehicle dealers provide repair services and sell accessories and
replacement parts. Although most service departments perform repairs only, some dealers also
have body shops to do collision repair, refinishing, and painting. The work of the service
department has a major influence on customers' satisfaction and willingness to purchase future
vehicles from the dealer.
Industry organization. The automobile dealer industry is comprised of two segments. New
car dealers, often called franchised dealers, primarily sell new cars, sport utility vehicles (SUVs),
and passenger and cargo vans. These franchised dealers sell and lease vehicles manufactured by
a particular company—which may include several brands. Used car dealers comprise the other
segment of the industry, and are sometimes referred to as independent dealers. These dealers sell
a variety of vehicles that have been previously owned or formerly rented and leased.
Improvements in technology have increased the durability and longevity of new cars, raising the
number of high-quality used cars that are available for sale. Used car dealers by definition do not
sell new cars, but most new car dealers do sell some used cars.
According to the National Automobile Dealers Association, new vehicle sales account for more
than half of total sales revenue at franchised new car and new truck dealers. These sales also
generate additional revenue in other departments of new car dealers, which are more profitable to
the dealer. By putting new vehicles on the road, dealers can count on new repair and service
customers and future trade-ins of used vehicles.
Independent used car dealers usually have smaller staffs than their franchised counterparts. Most
are stand-alone dealers, but increasingly nationwide companies are opening large superstores
across the country. These large used car and truck dealers typically contract out warranty and
other service-related work to other dealers or to satellite service facilities.

Recent developments. In recent years, the sale of used cars has become a major source of
profits for many new car dealers in the wake of shrinking margins on new cars. To make them
acceptable to more customers, some dealers promote "certified pre-owned" vehicles to customers
who want a warranty on their used vehicle. This often raises the price, but in return provides
customers with peace of mind. In economic downturns, the relative demand for these and other
used cars often increases as sales of new cars decline.
In an effort to achieve greater financial and operational efficiency and flexibility, greater
emphasis is being placed on aftermarket services, such as financing and vehicle maintenance and
repair, at both new and used car dealers. These services typically provide large profit margins for
dealers, and remain less susceptible to economic downturns. They are also part of an effort to
enhance customer loyalty and overall customer service.
There has been a recent decline in the leasing of cars. With a car lease, a customer makes
monthly payments for the use of a vehicle over a period of time, after which the vehicle is
usually returned to the dealer. The major domestic car makers have cut back their leasing
programs significantly, instead focusing on new car sales. Leasing is still expected to play a role
in many new car dealers’ business plans in the coming years, however.
The increased use of the Internet to market new and used cars and light trucks has also had a
significant impact on automobile dealers. Through the Internet, consumers can easily access
vehicle reviews; view pictures of vehicles; and compare models, features, and prices. Many Web
sites allow consumers to research insurance, financing, leasing, and warranty options. As a
result, consumers are generally better informed and spend less time meeting with salespersons.

CHAPTER 3
COMPANY PROFILE

THE POPULAR GROUP
The group is promoted by Mr. Saju K. Thomas and his family members. Saju K. Thomas
belongs to the well known "Kuttukaran" family, a family having more than 60 years
experience in automobile dealership ,service, spare parts business with a strong presence in
Kerala and South India. Saju K.Thomas started his carrier in automobile dealership when
Kuttukaran group entrusted him the responsibilities of the company Popular Vehicles and
Services Ltd. which was awarded Maruti dealership during the year 1983 .
Popular Vehicles and Services Ltd. was formed during the year 1983 to carry out the
dealership of Maruti Udyog Ltd. A showroom and service centre was first established in
Trivandrum subsequently another dealership was allotted by MUL in Kochi and gradually
Popular Vehicles established Sales and Service branches all over Kerala.
Besides Maruti, Popular Vehicles got dealership for Bajaj and their Three Wheeler vehicles at
Ernakulam District and at Bangalore during the year 1995. Popular Vehicles was also the
dealer for DCM Toyota for LCVs from 1984 till the company seized to operate.
Mr. Saju K.Thomas was managing the entire dealership operations of Popular Vehicles right
from its inception. Popular Vehicles established four regional marketing centers , six service
centers for Maruti vehicles and selling around 8000 vehicles and servicing 75000 vehicles
per annum. Popular Vehicles is the largest dealer for Maruti vehicles at the national level.
Maruti Udyog Ltd. has given many awards to Popular Vehicles during the course of its
existence. Popular is consistently reach either first position or runner-up for the technical
skill contest conducted by Maruti Udyog and last couple of years they are in the first
position to marketing skill competition.
FISAT BUSINESS SCHOOL 10 | P a g e

The manner in which Popular operates has been appreciated by various Maruti’s Management
and especially the unique service package , i.e.: Popular Unlimited Care Package, a very
unique After Sales Service Scheme which is indeed very highly appreciated by Maruti
Udyog Ltd. as well as customers and other dealership personnel .Popular can compete in all
aspects of Dealerships be it marketing or service or spare parts sales vey effectively which
enable Maruti Udyog to achieve a higher market share for its products in Kerala in
comparison to other southern states. Due this excellent performance Maruti Udyog rewarded
Popular Vehicles and Services Ltd. with another Dealership at Chennai. This unique
achievement was possible only because of dynamic and professional leadership of the
Popular team led by Mr. Saju K. Thomas , its Managing Director .
Similarly due to the excellent performance of D.C.M. Toyota’s Dealership, Toyota Motor
Corporation invited Mr. Saju K. Thomas to take up a Dealership for their products when
they established a new company in India for Toyota Automobiles . Accordingly during the
year 1999 a new company by name Motor World Ltd. was established and the Dealership
business was commenced from January 2000 at Bangalore.
During the year 2002 Mr. Saju K. Thomas separated from the Kuttukaran Group and
established his own business under the name “Popular Group” which consist of the
following Companies.
A. MOTOR WORLD LTD.
This company was incorporated during the year 1999 to manage the dealership of Toyota
Kirlosker Motor Ltd. for their entire range of products in the districts of Bangalore ,Mysore
and Mandya. The company has commenced its business operations in January 2000.

B. POPULAR MOTOR CORPORATION (PMC)
(i) Bajaj Dealership:

PMC is a partnership concern and constituted to take over the dealership business of entire
range of vehicles manufactured by Bajaj Auto Ltd. in accordance with the business separation
agreement with M/s Popular Vehicles and Services Ltd. PMC has Bajaj dealership for
Ernakulam and Alleppey district and for Bangalore city in Karnataka. Besides , PMC have
also diversified into sale of Computer Hardware, accessories and Software development.
(ii) Hyundai Dealership:

During the year 2003 Hyundai Motor India Ltd. (HMIL) offered dealership for their
products for central Kerala covering Ernakulam, Kottayam, Pathanamthita, Idukki, and
Alleppy. The dealership was also given to PMC and the first showroom and service center
was opened at Kottayam in January 2004. The Ernakulam 3S facility (Sales, Service &Spares)
is commissioned on 15th September 2004. For an exclusive Hyundai Dealership operation, the
business is changed to a Private Limited Company called Popular Motor World Pvt. Ltd. Now
HMIL offered Dealership for Sales and Service at Trivandrum and the Letter of Intent has
signed in April 22nd ,2005 and 14th December 2005 respectively. Popular Motor World Pvt.
Ltd. have again signed Letter of Intent on 2nd August 2006 for Dealership activities at
th
Muvattupuzha and started business on 17 October 2007.

CORPORATE ORGANISATIONAL
ORGANISATIONAL
STRUCTURE
Figure 1:Corporate Organizational structure

THE HMIL PROFILE
Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai Motor
Company (HMC), South Korea and is the largest passenger car exporter and the second
largest car manufacturer in India. HMIL presently markets 6 models of passenger cars
across segments. The A2 segment includes the Santro, i10 and the i20, the A3 segment includes
the Accent and the Verna, the A5 segment includes the Sonata Transform.
HMIL’s fully integrated state-of-the-art manufacturing plant near Chennai boasts of the most
advanced production, quality and testing capabilities in the country. To cater to rising demand,
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.
In continuation with its commitment to providing Indian customers with cutting-edge

global technology, HMIL has set up a modern multi-million dollar research and
development facility in the cyber city of Hyderabad. It aims to become a centre of
excellence for automobile engineering and ensure quick turnaround time to changing
consumer needs.
As HMC’s global export hub for compact cars, HMIL is the first automotive company in
India to achieve the export of 10 lakh cars in just over a decade. HMIL currently exports
cars to more than 110 countries across EU, Africa, Middle East, Latin America, Asia and
Australia. It has been the number one exporter of passenger car of the country for the sixth year
in a row.To support its growth and expansion plans, HMIL currently has a 290 strong dealer

network and 540 strong service points across India, which will see further expansion in
2010.
POPULAR MOTOR WORLD PVT. LTD.
One of the Elite Hyundai Dealerships in the country operating across central and south Kerala
covering the districts of Ernakulam, Idukki, Kottayam, Alapuzha, Kollam and
Thiruvananthapuram. Objective of Popular Hyundai is to be a single window solution for all car
buyers, be it buying, selling or servicing cars, or catering to customer needs of finance,
insurance, accessories etc., with the ultimate aim of providing the best car ownership
experience for one and all.
PRODUCT PROFILE
MODEL VARIANT
Accent Hyundai Accent Executive
Hyundai Accent Executive LPG
Getz Prime 1.3 GLS
i10 i10 Delite

i10 Era
i10 Magna
i10 Magna 1.2
i10 Sportz 1.2
i10 Magna 1.2 AT
i10 Sportz 1.2 AT
i10 Asta 1.2
i10 Asta 1.2 with Sunroof
i20 Magna 1.2

Sportz
Era DSL 1.4
Asta
1.4 Magna DSL with ABS
Asta with Sunroof
Sportz DSL 1.4
1.4 Asta with ABS
1.4 Asta DSL with Sunroof
1.4 Asta AT
Santro Santro Non A/C
Santro GL
Santro GLS
Santro GL LPG
Santro GLS AUDIO
Santro GLS LPG
Santro GLS LPG AUDIO

Sonata Sonata 2.4 MT 6AB
Sonata CRDi MT 6AB
Sonata CRDi AT 6AB
Tucson Hyundai Tucson CRDi

Verna Hyundai Verna VTVT
Hyundai Verna VTVT SX 1.6
Hyundai Verna CRDi VGT 1.5
CRDi VGT SX 1.5
CRDi VGT SX AT 1.5
Table 1:Product Profile
3S Facility (Showroom, Service and Spares)

The elegant and exclusive show rooms of Popular Hyundai are indented to meet the rising
expectations of the customers. There we hold a fleet of fabulous models and their variants for
your perusal. Most of our showrooms are located in the heart of the city and provide
better access to both the proud owners as well as prospective buyers. Our Sales Team is
made up of dedicated showroom and field executives who are professionally trained
by Hyundai Motors India Limited. They are adept at guiding the customer through the entire
sales process right from assisting in choice of model, colour and features up to lending a
helping hand in arranging finance at competitive rates.
Our Service Centre is outfitted with the state-of-the art equipment and is update with
Hyundai's challenging world standards. Our qualified and trained technical team, with an
extensive storage of Hyundai genuine spares, is capable of providing constant support to
maintain your dream machines
VISION
“To be the most admired fastest growing innovative corporate house

committed to
Customers, Employees, Shareholders and Society.”

Philosophy
“We are not in the business of selling and servicing cars…

We are in the business of
Acquiring, Retaining and Building "Relationship"

CHAPTER 4
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
1. OBJECTIVES
1. To expose ourselves to the working of an organization and know how it is

managed
2.To relate the concept learnt in the classroom to the working of the organization.
3.Understand the process flow in the company.
4.Understand the hierarchical structure of various departments.
2. METHODOLOGY
Both primary and secondary data are used and analyzed for the study.
Data collection: This study is conducted by collecting data from both primary
and secondary sources. The primary data are collected through personal interview
and observation methods. The secondary data are collected from different articles,
journals, books and internet
3. PERIOD OF STUDY
The study has been conducted at POPULAR MOTOR WORLD PVT LTD,
VYTILLA during the period May 05, 2010 to June 05 , 2010.
4. SCOPE OF STUDY
The study is confined to gain some knowledge about the culture and structure of
the organization and the functions of various departments of POPULAR MOTOR
WORLD PVT. LTD.,VYTILLA which is the head office for various branches.

5. LIMITATIONS
The main constraints or limitations for the study were:
Limited time available for the study

Authorities of all the departments had a busy schedule and hence there
was no scope for detailed interviews with them.

CHAPTER 5
DEPARTMENTAL ANALYSIS

FINANCE AND ACCOUNTS DEPARTMENT.
Finance and Accounts Department deals with the matters like raising of funds, funds
management, finalization of the quarterly accounts, preparation of the profit and loss account and
balance sheet of the company etc.
The finance department is headed by head-finance and consists of 15 staff member including
deputy manager and assistant manager. The main function of the finance department is arranging
working capital finance and long term loans. Working capital is used for purchasing vehicles,
spare parts and accessories while term loan care used for expanding the infrastructure. The
working capital is borrowed from different banks. Short term borrowing is also there in the form
of inventory funding from various finance companies. Presently the total working capital is more
than 100 crores. The term loans are generally taken for 5 year periods.
Every branch is a separate profit centre and maintains separate accounts. There are separate
staffs for accounting in each branch. The department prepares monthly performance report which
is sent to head office for analyzing the operational results. There will be a performance review
meeting every month to evaluate branch performance. The monthly reports from branches are
consolidated at the head office to know the overall result of the company.
There is a separate department under Finance and Accounts department which deals with
matters like ordering vehicles and spares. A separate person is appointed for this purpose. It is
his duty to do the branch wise stock analysis and place the order. The Sales and Spares
Departments send their inventory status to the Finance Department .All the procurement is done
by the Finance Department depending on the present need and the funds available. Hyundai has
made a policy not to sell cars on credit. Cars are sold only on payment being made by dealer. As
a result they have tie ups with different banks. ICICI provides a credit up to 350 lakhs. When
the dealer makes purchase of cars, it is known as placing the indent. Finance is raised through
banks, who give credit. These banks transfer the specific amount to the company's account on

behalf of the dealer. This is known as mailing the indent. Similarly banks provide credit while
purchasing spare parts.

Accounts Staff Hierarchy
Figure 2: Accounts Staff Hierarchy

SALES AND MARKETING DEPARTMENT
This department is the most important department in PMW, as it is a sales oriented company. All
the other departments depend on it. The entire sales force can be divided into two , the Direct
Marketing Team and the Showroom Sales Team.
Sales Team
Direct Marketing Team Showroom Sales Team
Figure 3: Division of Sales Team
Direct Marketing Team

The Direct Marketing Team consist of 5-6 team leaders. Each of these team leaders have 3
assistants. They are given monthly targets. It is the duty of these team leaders to assign and allot
the work on their assistants and to check their performances. The main functions of the direct
marketing team consists of closing the telephone enquiries by meeting the customer at their
home, give test drive to distant customers ,settling all finance and exchange related issues if any
and close the sale, to conduct some bank related activities outside the showroom , source
enquires and convert them into sale, to take referral sales from old customers. The direct
marketing team has to report to the showroom manager.

Showroom Sales Team
The showroom sales team consists of a showroom in-charge and 6 staffs below him. In addition
to this there is three more staff for the accessories sales in the showroom. The showroom team
also have monthly targets. The showroom team has to report to an assistant manager of
showrooms also called as the showroom manager. Showroom manager reports to the Hyundai
Business Head. All the branches reports to the Business Head. And this Business Head reports to
the Vice President Hyundai.
Annual meetings are held in the presence of MD. The performance of each showroom is
evaluated in this meeting. Targets for the next one year will set in this meeting. This targets are
then allotted to each branch. Monthly targets for each Showroom is then set by the Showroom
Managers depending on the resources available to him.
Showroom enquiries:-
All customer enquiries coming to the showroom will be attended by the Front Office Executives.
Lobby executive receives the customer and offers him a seat and also ensue refreshments. The
front office staff then meets the customer tries to understand his requirements and accordingly
gives him a preliminary information sheet that contains the price details of the requested model.
If necessary, finance executives will be called upon to explain about loan details. Customer
details will be noted down in the enquiry book and passed on to respective supervisor who in
turn allocates it to the concerned Sales Officer.
Customer requesting for Performa Invoice will be provided with Performa Invoice and details of
finance scheme options. Performa invoice is raised in three copies. Two copies will be given to
the customer and one copy is retained in the file. The lobby executive is responsible for
arranging posters and flowers in the showroom. The neatness of the cars displayed in the
showroom is also the responsibility of the lobby executive.

Booking & retail:-
If the vehicle preferred by the customer is available in the stock then the same can be delivered
to him within two days, which is the time required for registration and accessories installation.
But prior to registration the entire booking amount has to be paid.
The customer can show his intent to purchase a car by paying a token amount called the part
payment. The customer will get priority only when he pays the booking amount. Once the
customer furnishes the booking amount a receipt and order booking form is issued and support
activities are initiated. This order booking form is to be duly filled by the customer for booking
the vehicle. The OBF along with the receipt for booking amount is filed. A unique customer
account code is created at the time of payment. This account code is used for all further
transaction involving the customer.
Indenting, i.e. placing an order in the HMIL is done against customer’s booking. Once the indent
is served by HMIL, vehicle reaches the dealer through truck or trailer after a month. Pre-delivery
inspection of the vehicle is carried out on the vehicle on its arrival. The vehicles are allotted to
the customer based on the priority list in the allotment section. The customer is intimated about
the arrival of his vehicle and informed to pay the balance amount and to bring the documents
required for registration. The customer orders for the required accessories at the Hyundai
Genuine Accessories department and can take the vehicle home after he signs some important
documents like invoice, delivery note etc. in the delivery section.
Allotment:
The PDI section receives the vehicles arriving from the HMIL and a vehicle status report is sent
to the allotment section on a daily basis. The customers are informed as per the priority list
regarding the date of delivery of the vehicle. In case of customers who fail to turn up the
specified date the allotment section initiates a follow up action. Any vehicle, which is to be
delivered ahead of schedule, is to be intimated to the PDI department by the allotment section. A
daily report of vehicle delivery and customer details is to be maintained.

Registration:
Before the vehicle can be delivered to the customer, it should be registered with the RTO. There
are two types of registration: Permanent Registration and Temporary Registration.
Permanent registration is done for only those vehicles, which come under Trivandrum RTO’s
jurisdiction. In case of permanent registration, the road tax has to be paid along with the
registration. All the other vehicles can only be temporarily registered.
The documents required for permanent registration are:
Copy of address proof(two numbers)
Insurance policy note
Sale certificate(form 21)
Form 20 – application to the motor vehicles department for registration(in case of

hypothecation two copies are needed with the seal of the bank or the finance
company).
Form 60 – to be submitted by the customer who does not have a PAN card (two
copies).
Form 22 – initial certificate of compliance with pollution standards, safety standards of

components issued by manufacturer (HMIL).
NSC worth Rs. 1000/-
Issue of trade certificate: the trade certificate is issued to those vehicles, which go for
displays, events or are moved under stock transfer. This is to insure the vehicles
against accidental damage during such transit.

Vehicle delivery
Intimation is sent to customers whose vehicles are ready for delivery. The customers are
informed of the balance payment position and information on documents needed for registration
of the vehicle. PDI section is intimated the delivery schedule in advance in a specified format.
It is the PDI department that receives the lot of vehicles dispatched by HMIL in accordance with
the indents placed. The transportation documents (goods receipt, HMIL invoice from 22 initial
certificate of compliance with pollution standards, safety standards of components and road
worthiness to be issued by manufacturer) are collected and filed from the transporters. The
vehicles after inspection for transit damage are either accepted or returned to HMIL depending
on the status of the vehicle.
A Vehicle Status Register to record the whole process is maintained. Small transits damages are
worked upon at the PDI yard itself, while for serious jobs, the vehicle is sent to the service
station. A job card is opened to estimate the maintenance costs of the vehicles sent to the service
station to correct slight damage that occurred in transit and it is to be claimed from HMIL. PDI is
primarily done on a first-come-first serve basis. Any change in this order can be brought about
only in accordance with a request from the allotment department.
The PDI is carried out on the basis of an inspection car, which in effect functions as a checklist
for assessing the vehicle status. A daily vehicle status report is given to the allotment section,
which in turn schedules the allotment on the basis of this report. A PDI report consisting of the
vehicle condition on receiving, work done upon it and projected delivery time is recorded.
The vehicle status report from the PDI activates the allotment section, payment section,
accessory section and the registration section in an orderly manner. The claims for transit
damages are sent to HMIL with necessary proofs. Supervisory staffs carries on a final inspection
of the vehicle after the registration procedure and before the delivery.
Accordingly vehicles are dispatched to the showroom by the PDI section after ensuring that the
vehicles are fit for delivery in all respects. At the time of delivery, every customer is briefed on
the features/operation of the vehicle and after sale service facilities of the dealership. Documents

like the invoices terms of understanding of Unlimited Care Package (UCP) delivery not
containing list of items that are there in the vehicle as and when dispatched from HMIL, delivery
register, and insurance proposal for are signed by the customer.
The sales satisfaction index (SSI) card is handed over to the customer along with the owner’s
manual.
The registration documents are also handed over to the customer. In case, the registration is
temporary, the documents required for permanent registration are handed over the customer.
In case of hypothecation, a copy of the invoice and a key should be given to the finance
company.

Sales Staff Hierarchy
Figure 4: Sales Staff Hierarchy

SERVICE DEPARTMENT
Service centre operations are as follows:
• After Sales Support for new cars: Free service, Warranty Claims..etc
• Provide periodic maintenance for vehicles: Paid Service
• Allied Services: Protective Coating, Carbon Cleaning..etc
• Accidental repairs
• Hyundai Insurance: Policy renewal, New Policy Issue
• 24 hour break down assistance
• Quick repair services
• Hyundai Genuine Accessories and Hyundai Genuine Spare
• Post service follow-up and customer feed back
• Handling of customer complaints
• Handling of warranty
• Service Marketing
Floor operation
There are basically eight teams for carrying out the service/repair of vehicles. They are:
• Three teams for paid servicing of vehicles.
• Two teams for special customers one for free service and the other for quick repair.
• Three teams for accident repair: one for non-claim and the other for claim cases.
Each team consists of a service advisor, a floor supervisor and a group of mechanic. The service
advisor is responsible for vehicle acceptance; allied service sales, job monitoring, vehicle
delivery and post service follow up. An ideal service advisor should possess good
communication skills, technical knowledge and analytical ability. The service advisor holds a

key position in the service centre operation since he forms the link between the customer and
service centre.
Security personnel for parking guide customers bringing their vehicles. The customer is given a
job slip in which he fills in the vehicle details and the type of service he requires. This job slip
along with the owner’s manual is handed over to the reception staffs, which opens a job order
and hands over the job order to a particular service advisor for accepting the vehicle from
customers. The allotment to service advisor is on a rotation basis such that a balance is
maintained among the teams in each section.
The service advisor asks the customer what service the vehicle requires, he test drives the vehicle
to find out any other defects/repairs he may notice and enter it on the job order, he then notes the
damages, shortages and accessories if any. Service advisor shall discuss and explain to the
customer regarding service/repairs are also entered in the job order. Service advisor then issues a
copy of the job order to the customer after getting signature from customer agreeing for the
conditions on the job order.
An entry is made into the supervisors register regarding the vehicle details and the job to be
done. Service advisor hands over the job order to the floor supervisor. The floor supervisor is
briefed about the repairs the customer has requested. The floor supervisor has the responsibility
to manage the work according to the availability of lifts and mechanics. After allotting the job to
mechanic the allotment time and name of mechanic is entered into the register.
A team of three lifts, servicing and repairs shall be carried out as per job order by a mechanic
under the respective supervisor according to the maintenance schedule, service manuals, service
circulars of HMIL. spare parts that are required are obtained from the store on producing a parts
requisition slip and the job card. Service advisor contacts customers for carrying out any extra
work noticed during repairs for obtaining consent and for informing the extra cost/time involved
and records it on the job order.
After completion of work, the service advisor enters the labor amount in the computer the job
order is handed over to the final inspector who carries out final inspection as per the procedure.

Final inspection procedure:
The following procedure is followed for final inspection.
1. Check all repairs as per job attended.
2. Check engine tuning i.e. dwell, rpm and timing in sequence.
3. Check carbon monoxide level and adjust if required.
4. Check functioning of :
a. All lights, wiper
b. Blower and A/C
c. Sun visor and Inside/Outside mirror.
d. Door operation
5. Cleanliness of service vehicles and road test.
6. If the points 1-5 are ok mark OK
7. Enter in register
8. If any defect is observed send back vehicle for rework to the supervisor concerned
9. If repair is due after point 8 checks again and sign.
After “Final Inspection Done” is stamped on the job order, the job order is signed by the Final
Inspector and given back to the Supervisor. Non-conformities if any observed during final
inspections are noted on the job order and the vehicle is returned to the same supervisor for
rectification. The vehicle is again handed over for Final inspection after the work is done who in
turn hands it over to the front office after necessary verification.

Front office prepares an invoice against the job order. The concerned service advisor explains the
job done and spare replaced to the customer. Defective spares replaced are handed over to the
customer. If necessary a road test is carried out along with the customer. The signature of the
customer is taken on the job order and a token of satisfaction and gate pass us issued to him after
necessary payments.
Accident repair and insurance claims:
Customers bringing their vehicles are guided by security for parking. Receptionist in front office
opens a job order in duplicate and hands over the job order to service advisors in charge of
accident repair for accepting the vehicle from customers.
The service advisor does a complete inspection of the vehicle subjected to accident. He informs
the customer about the condition of the vehicle and also about the required replacement and
repair work. The service advisor prepares an estimated cost of repairs that includes cost of parts
to be replaced and labor charges after consulting with the mechanic. The customer is required to
claim for insurance for which he has to fill a motor insurance claim form. He should also submit
one copy each of driving license, R.C. book and insurance certificate that are the documents
required for insurance claim.
The surveyor of the concerned insurance company inspects the vehicle for damage and gives the
actual cost for damage rectification. The claim is settled within two to three days and the
accident repair section will start the repair work of the vehicle.
Complaints related to servicing repairs and spare parts

On receipt of a customer complaint either directly from the customer or through HMIL or
otherwise the same shall be entered in a register by giving a control number. The customer shall
be contacted over telephone or through written communications and date shall be fixed for
rectifying the complaints with him. After receiving the vehicle the complaints shall be attended
as per laid down procedures. The complaints shall be closed only after the customer is

completely satisfied. A satisfaction note shall be obtained from the customer. Based on the
analysis of customers, counter measures are to be initiated to prevent recurrence of such
complaints in future.

Service Staff Hierarchy
Figure 5: Service Staff Hierarchy

SPARES DEPARTMENT
The spare parts department is a key segment and profit centre of the dealership
operation. There are certain prime reasons which attribute to such identification:
• The dealership has 100% equity in paid for spare parts.

• Investment in parts inventory represents about one third of the dealership's working
capital.
• 25 to 30% of the dealership's gross profit comes from parts and accessories sales.
• Spare parts segment plays a very important part in the customer's acceptance of the
dealership as a place to buy not only spare parts but the product itself.
The company have had personal experience in managing their spare parts department.
Many have not and rely on managers/supervisors for this important activity of dealership
operation. Either way, a productive spare parts operation requires leadership.
Wherever no such leader is available or guidance is provided, the dealership can often
find problems due to:
• Build-up of parts in inventory

• Insufficient working capital
• Low turnover
• Excessive obsolescence
• High rate of expenses
• Lost sales
• Profit objectives not achieved
• Conflict between parts, service and sales personnel

Spares Staff Hierarchy
Figure 6: Spares Staff Hierarchy

HUMAN RESOURCE DEPARTMENT
MISSION:
It aim to contribute to the growth and profitability of PWM by enabling High performance
management empowerment of employees and knowledge management while maintaining the
highest level of customer satisfaction, both internal and external.
Their functions include:
1. Recruitment and Selection

2. Performance Management systems
3. Administration
4. Training
1.Recruitment and Selection

The recruitment programme starts with the approval of Manpower requisition form by the Head
of the Department. Before actually going in for recruitment, options such as resource sharing,
inter-departmental transfers, job rotation etc will be explored by the Department head in
consultation with the Human Resources Department. Human Resources Department will source
the candidate by any one of the following options:-
a) In-house Data bank: The Human Resources Department maintains a data bank of all
received applications. Whenever there is a requirement for a new recruitment, Human
Resources will first scrutinize the in-house data bank to find suitable candidates.
Shortlisted candidates will be called for an interview.
b) Newspaper Advertisement: Based on the business requirement and after an analysis

of the costs involved, an advertisement will be released in the leading Newspapers.
c) Recruitment Consultants: Human Resources Department will empanel recruitment

consultants to identify and short list suitable candidates.

d) Employee Referrals: Some of the opportunities will be internally advertised in the
company and employees are encouraged to refer candidates known to them for the
position.
e) Campus Recruitment: Company will go in for campus selection for entry-level

positions such as Engineers and MBAs, from select Engg./Mgt institutions
f ) Web Recruitment: Company will recruit through the company website and other
job sites.
The Human Resources Department will interview the short listed candidates. The interview
panel will consist of the Department Head, Profit Centre Head and Human Resources Head. The
Human Resources Head in consultation with the Dept. Head / Profit Centre Head will be
responsible for fixation of salary.
Joining Formalities
Along with the Human Resources Department, the new employee needs to complete all the
joining formalities. When a new employee joins the organization the following forms need to be
filled and submitted:-
• Joining Report
• Provident Fund transfer form
• Provident Fund Nomination and Declaration form
• Gratuity Nomination form
• ESI Declaration form
• Medical Insurance form
• Personal Accident Insurance form
• Tax Saving form - For the personal file of the employee, the following documents
should be submitted on the day of joining :-

• Two passport size photographs
• Two stamp size photographs
• Proof of date of birth
• Copy of Academic Qualifications - SSLC / Plus Two / Graduation / Post Graduation

/ any other
• Relieving letter from the previous employer, for employed category.
• Proof of last drawn salary.
• Medical examination record
In case of any change in personal records, the employee must inform the Human Resources
Department, in writing so that his records can be updated. Such changes in the personal data
would include:-
• Residential address and telephone nos.
• Change in marital status
• Birth of children
• Additional qualification obtained.
2.Performance Management System

This looks into the annual performance appraisal, career development. They also do annual
appraisal to see pitfalls in employees’ performace.Thus provide right direction to employee’s
growth. In career development, the executive and the manager are considered for improving
skills. Programs like test, group discussion to find the Employee caliber.
3.Administration
Their main duty is to maintain records for future reference. It also includes the Leave policy,
Transfer policy and Separation policy.

Leave Policy
The leave policy in PMW is as follows:-
Leave Entitlement
1. Regular employees will be eligible for 12 days casual leave, 12 days sick leave and 12 days
privilege leave. These days of leave can be utilized by them in the year in which the leave
entitlement occurred.
2. In the case of employees on probation, during the period of probation, they will be entitled to
12 days casual leave and 12 days sick leave only. On completion of the probationary period and
in the event of their confirmation, they will be entitled to privilege leave of 12 days which they
can utilize during the period of service following such confirmation (This means that if an
employee has one year probationary period and he is confirmed in his service, on confirmation
12 days privilege leave will be added in his credit. If the probation is for two years, 24 days leave
will be accumulated in his credit on confirmation).
Accumulation and carry forward of leave

In the case of regular employees, no distinction is made between the different classes of leave.
From the 36 days of total leave, whatever be the leave availed, will be deducted and remaining
days of leave can be carried forward and accumulated up to a maximum of 66 days.
Public Holidays
The company will provide 13 National and festival holidays in a calendar year. The list of
holidays will be declared at the beginning of the calendar year. Alternatively the company may
substitute another day in the same calendar year to be observed as a holiday in place of an
official public holiday.

Unauthorized Leave
If an employee is absent from work for a period of 6 consecutive working days without
permission, or if the company determines that the absence of the employee for six consecutively
scheduled working days is not due to legitimate illness or injury, the employee will be
considered as having voluntarily quit the employment of the company.
Transfer Policy
The company reserves the right to transfer an employee considering the various organizational
requirements. The employee will be informed in writing regarding the transfer and other relevant
information like reporting authority, responsibilities etc.
Separation Policy
If an employee feels like leaving the organization, we expect him to come and discuss the areas
of concerns with his superior. This provides the management an opportunity to remedy the
situation, clear up any communication gap and exhaust all possible solutions before concluding
that resignation is in the best interest of both the parties.
The employee is required to submit a resignation in writing. The employee must inform the
Human Resources Department of his new address for communicating with and sending of
relieving letter. The employee is required to submit a No Due Certificate signed by the Profit
Centre Head to Human Resources Department for settling the full and final settlement of dues.
4.Training
The Human Resource department consists of 2 Asst.Managers for the training process. One
Asst.Manager is for Sales Department and the other for Service department .The duty of these
trainers include give training to the new employees and also to the existing employees when new
technology and models comes into the market. The training process helps the sales as well as the
service departments in gaining confidence to achieve their targets. Classes are conducted to help
the employees to handle the stress while working.

EDP DEPARTMENT
The functions of ELECTORONIC DATA PROCESSING Department include:
1. Monitoring and trouble shooting of computer package which is in operation in branches

and Registered Office.
2. Month-end
end consolidation of data of all branches.
3. Maintenance of data backup, disaster recovery system etc.
4. E-mail
mail internet facility etc.
SR.MANAGER IT
MANAGER
ASST.MNGR
ASST.MNGR
Figure 7: EDP Department Hierarchy

EDP Manager plan and direct the operation of the electronic data processing equipment, and
select, train, supervise and evaluate the work of the computer operations staff. In planning the
work of the department, EDP Manager evaluate the relative importance of various projects and
determine job priorities. He review the requirements of each project, assign machine time and
personnel to complete it, and coordinate all projects to produce a continuous work flow and meet
deadlines established by management of user departments. Since idle machines are expensive to
the organization, one of the prime responsibilities of the EDP Manager is the effective utilization
of all data processing equipment through scheduling.
EDP Manager generally review and approve all systems charts and programs prior to their
implementation. He may also spend much time with the analysts
working out the requirements of a proposed job, defining the problem and developing the
program. If the Manager is not directly responsible for new programs, he is usually consulted
about the data operations or other aspects of a new program, and may confer with programmers
and analysts regarding program problems that arise during a machine run.

CHAPTER 6
CASE ANALYSIS

LOST SALES ANALYSIS
Background of the case

The main objective behind this study is to find out the reasons why the sale of Hyundai i10 was
lost to the competitors. The competitors here are other brands or other dealers of Hyundai
vehicles. If we observe carefully we can find out that the conversion ratio is often very low
compared to the number of enquires made. This means that the customers of your product is
diverted to other brands. This is a greater issue to most of the dealers, as low conversion ratio
means low sales , which may affect the existence of the company.
The competition in this segment is very high compared to other segments. A wide variety of
options are available in front of the customer when he thinks of buying a new car. The Hyundai
i10 comes under the compact car segment or otherwise called as the hatchback segment. The
major players in this segment are Maruti Suzuki, Hyundai and Tata. The table below shows the
Market Share in compact cars.
MARUTI HYUNDAI TATA

SUZUKI
57.17% 23.93% 11.92%
Table 2: Market Share
In April-November 2009, the overall market has grown more than 21 per cent, according to
SIAM (Society of Indian Automobile Manufacturers). And the hatchback segment propelled by
new launches such as Maruti’s Ritz, Hyundai’s i20, Honda’s Jazz and Fiat’s Grande Punto, has
grown about 27 per cent. That seems the perfect setting for the newcomers, which are also
coming in with sizeable production capacities and distribution networks, and with an eye out
for greater share of local parts. The incumbents, meanwhile, are not yielding an inch, making for
a grand face-off.

There is a distinct sense of shift in the centre of gravity of the hatchback market. Within the
segment, two distinct sub-segments have emerged: the sub Rs 4-lakh cars and the Rs 4-lakh-plus
cars. The low-priced segment still has a bigger share of the market, but the higher one has almost
caught up and is growing faster.
Numbers provided by J.D. Power and Associates show that in 2007(January-November), the
share of the Rs 4-lakh-plus cars of the overall small-car market was 29.2 per cent. In 2008,it
moved up to 39.2 per cent in the same period. This is despite the fact that in 2008 the second half
saw the auto industry taking the full brunt of the economic slowdown .In 2009 , the share has
crossed 43 per cent .And in 2010, the share of the Rs 4-lakhs-plus cars could cross 50 per cent of
overall small car market. There is a plausible reasoning behind that. In the second half of 2008,
the auto industry took body blows from the economic slowdown .Now with the economy
stabilizing , it could well be argued that consumers would not mind stretching their purses a
little and going in for a high-priced hatchback.
By January 2010 more number of players entered into the market. Volkswagen with their
hatchback POLO, GM with the new Chevrolet BEAT and Ford with FIGO. This increases the
level of competition . Despite having deep pockets none of the global majors might play a price
war game yet. ”We are entering the small segment for the first time in India. We lack the
experience ,” says Neeraj Garg, director at Volkswagen India, which has invested €580 million
in a new facility at Chakan near Pune to make 110,000 small cars.”We have to learn customer
expectations first.”The company has 40 dealers now, and is expanding. Its Polo will be made
available in both petrol and diesel variants, and is being benchmarked on price and features to
the leaders of the upper end of the segment, Maruti Swift and Hyundai i20.
The most experienced of the three in India currently, GM India ,is placing its Chevrolet Beat a
tier lower in terms of price ,against the 4-5 lakh priced Hyundai i10 and Maruti Suzuki Ritz.
Clearly, experience has taught GM the value of aggressive pricing in India.” It is not about the
absolute price for most customers , but the package for one’s money”, says Karl Slym, managing

director of GM India. The company has also increased its sales and service points to 195 since
early 2008, and is targeting 250 by March 2010. It can produce 250,000 cars annually.
Ford India , meanwhile , has put $500 million into a new 100,000 units-a-year line in Chennai
.”Figo will be offered bang in the middle of the small car market with an attractive cost of
ownership,”.
Total cost of ownership(TCO), in fact ,has become a watchword.”Ticket price was more
important earlier,” says Jagidish Khattar, former head of Maruti Suzuki, who now runs Carnation
Auto ,a car servicing company .”TCO is coming now “.Maturing Indian consumers are not
willing to fall for an attractive price alone ,and consider service and spare parts expenses, as
well as resale values, before buying a car.
Localization o f content is another area that all the companies are working on. It is here
relatively new entrants such as Skoda Auto have struggled. Skoda’s Fabia, one of the best
hatchbacks around , has suffered low sales largely because servicing and replacing of spares is
expensive.
Companies such as Ford and GM have an advantage in this area, as they have been around in
India for long and have had time to develop long-term supplier relationships. Ford’s Figo will
have local content of 85 per cent, enough to give it significant pricing leverage. GM’s Beat is
starting with 60 per cent local content, with the company shooting for 80 per cent in about six
months. Volkswagen’s Polo will come to the market with 50 per cent local content. These big
firms will need all their resources ,pluck and some luck to break the fort of Indian auto’s holy
triad , Maruti, Hyundai and Tata Motors.
Factors affecting sales

Consumer behavior is dependent on few factors that need to be considered in any industry. In the
Automotive industry, there are several intertwining factors known. The Internet as one knows
well has its importance in nearly every form of trade. Trade is directly dependent on
communication, and these days the Internet is considered to be the most important and reliable
means of communications for trade. In view of the Internet being an important medium through

which customers may be communicated with, customer behavior becomes an important subject.
Observing customer behavior in the recent past, it is observed that there is immense scope for
expanding the automotive industry. This is because there appears to be a better response from
customers through the Internet. Purchases of parts are easily made and are believed to be
considerably reliable. For purchasing vehicles, advertising through the Internet is the first step
towards pulling in customers. Indeed, this step is believed to be effective as there are a number
of individuals who first see adds online, and then decide to physically check a promotion out.
With the Internet growing more and more it is expected that there will be much more activity on
the part of consumers, which means that the automotive industry is going to do even better than
it has in the past.
Consumer behavior is considerably dependent on promotion of products; the manner in which

products are promoted directly influences customer behavior. Each medium used for promotion
has its own impact, and the one that is believed to have a tremendous impact is the Internet. It is
believed to boost promotions and sales greatly, and it helps customers in their first step before
actually checking a car out. It is through the advertisements on line that they may be attracted
and then move towards checking a vehicle out physically at a show room. It is this behavior that
has helped boost the automotive industry significantly.
Price plays an important role . Price along with after sales service are factors on which the
customer take his purchase decision .It is this price and the after sales service which helps Maruti
Suzuki to continue on its first position in market share. The success of Maruti Suzuki is that they
can provide the customer with all those features the customer demand in an affordable price.
Tata Motors is also competent to Maruti Suzuki in the matter of pricing .But their low customer
satisfaction , resale value and comfort takes them down the line. Hyundai Motor delivers good
quality vehicles which helps them to stand on the second position even though its price is a little
high compared to Tata. The low number of authorized service outlets and the slightly higher
price compared to Maruti Suzuki may be the factors which kept them in the second position in
case of market share. The table below shows the ex-showroom price of different models in the
compact car segment.

Ex-SHOWROOM PRICES
MODEL BASE MODEL(Rs) HIGH END(Rs)
Petrol 358373.10 413166.34
WagonR Diesel Nil nil
Petrol 398368.63 492855.42
Ritz Diesel 475429.18 528920.54
Petrol 416042.09 530608.38
Swift Diesel 483617.28 540256.47
Petrol 344159.00 556753.00
i10 Diesel Nil Nil
Petrol 354000.00 447000.00
Figo Diesel 452000.00 531000.00
Petrol 272,634.00 299,308.00
Indica Diesel 357,140.00 378,854.00
Petrol 436233.00 607648.00
Grande Diesel 519888.00 653582.00

Punto

Chevrolet Petrol 344807.00 (on road) 405598.00(on road)
Beat
Diesel Nil Nil
Polo Petrol 442491.00 700000.00(1.6l)
Diesel 542602.00 683258.00

Table 3: Ex-showroom Prices
Showroom courtesy is one of the main factors which affect the present day sales. A bad
showroom courtesy may affect the present sale and the future sales badly. Because a costumer
who purchases a vehicle from a showroom can act as a brand promoter. He may refer the dealer
to his friends and relatives or can prefer the same dealer when he wants to upgrade his vehicle at
a latter point of time. For all the above things to happen the dealers should maintain a good level
of showroom courtesy. A great number of sales may be lost due bad showroom courtesy. The
subject of customer retention, loyalty, and churn is receiving attention in many industries. This is
important in the customer lifetime value context. A company will have a sense of how much is
really being lost because of the customer churn and the scale of the efforts that would be
appropriate for retention campaign. The mass marketing approach cannot succeed in the
diversity of consumer business today. Customer value analysis along with customer churn
predictions will help marketing programs target more specific groups of customers. The
showroom staffs must be well trained to attend the customer.
As the competition rises offers and discounts started playing a greater role in sales. Companies
started giving certain offers and also discounts for their products. In earlier times a customer who
purchases vehicle might get some free service schemes along with his vehicle. At present
everything has changed, the first question which the customer asks you must be “Do you have

any offers?” or “What all things I get along with my vehicle?”.Which means the additional
benefits that the customer can bag, from purchasing a vehicle from you. So additional benefits
plays an important role in driving a customer to your showroom. Often we have seen ads from
Maruti Suzuki, like Rs 20000 or Rs 30000 off on selected models for a limited period. This
again pulls the customer .The customers are ready to wait even if there is a huge delay in getting
the vehicle.
Factors like availability of model and colour ,then exchange value ,finance options ,friends
and relatives referral ,and better performance like style, mileage ,comfort ,space etc.
Customers used to visit more than one showroom before purchasing a vehicle. So the above
mentioned factors can make an impact on sale. If he find a particular model or color which he
prefer to buy is not available he may move to another dealer where he can get the preferred
things. Finance and exchange value too have the similar impact in creating sales. Friend and
relatives referral comes under the customer retention.
DATA COLLECTION
A sample survey was conducted. The survey was conducted among 200 customers who had
made an enquiry for Hyundai i10 at Popular Hyundai during the last 3 months. A questionnaire
was formulated showing some of the common reasons which the customer say(see Annexure ).
Data collection was through the telephone. Customers who made enquiries for Hyundai i10 were
called. As the data collection is via telephone I made the conversation informal , which helps me
in gathering more information.
The table below shows the number of customers which were converted to other brands. Out of
this 200 customers 45 customers purchased the vehicle from other dealers of Hyundai.

MODEL NUMBER OF CUSTOMERS
MARUTI SWIFT 42
MARUTI WagonR 24
MARUTI RITZ 32
TATA INDICA 17
FORD FIGO 15
CHEVERLOT BEAT 04
FIAT GRANDE PUNTO 09
HONDA JAZZ 03
VOLKSWAGEN POLO 09
Table 4: Number of customers shift to other brand.
CHART SHOWING THE NUMBER OF CUSTOMERS LOST TO

COMPETITORS
50
45
40
35
30
25
20
15
10
5
0
Figure 8: Number of customers lost to competitors

From the above chart it can be seen that most of the customers were lost to Maruti Suzuki. Total
98 customers bought vehicles from Maruti Suzuki .Swift is the most accepted vehicle in this
segment 42 customers bought Swift .The reasons which the customers put forward were price ,
after sales service , style , visibility on road etc. Out of these factors price is one of the common
factor which the customers told. The brand shifting occurred mainly due the variation in price.
If we check the ex-showroom prices (Table 3) we can see that vehicles of Maruti Suzuki is
having comparatively low price than other brands. The chart below shows the reasons different
cusutomers told due to which they change their decision to purchase a Hyundai i10
CHART SHOWING THE REASONS FOR CHANGING THE BRAND
80
70
60
50
40
30
20
10
0
Figure 9: Reasons for the Brand Shifting
From Chart 1 we can find that out of the 200 customers 45 customers choose other dealers of
Hyundai for purchasing vehicle. This is one of the case which can cause damage to the business
.All this customers were willing to buy i10 or they can be called as the true customers. These
enquires could be converted into sales if little more care was given. If we check chart 3 we can

see that one the main reason which the customers told was friends and relatives reference. It is
clear from this statement that a lot of reference sales are happening. It is quiet common among
keralites that we ask our friends and relatives several times before reaching the final decision .
This problem can be cleared by conducting more promotion activities and creating an influence
in the mind of people, so that the next time when someone ask for advice the name of Popular
Hyundai comes out of their mouth .
CHART SHOWING THE REASONS FOR CUSTOMERS TO BUY i10

FROM OTHER DEALERS
30
25
20
15
10
Figure 10: Reasons for purchasing from other dealer
The other main reasons which the customers told were availability of model and colour and
discounts and offers . Sometimes it may not be possible for a dealer to keep all the colours with
him. The dealers always prefer to keep the colours which have more number of enquires. The

customer must have preferred some rare colours . In most of the cases the dealer try to arrange
the vehicle preferred by the customer , in some cases it may not be possible due to the delay
happened in getting the stock. Other dealers might have the preferred vehicle with them .
Another reason is the discounts and offers .As we have seen in chart 1 that price is an important
factor in making sales. The customer always purchase from the place from where he gets the
product at a low price. And if he finds that there are certain more benefits which he may get
along with the product, he definitely purchase from the dealer who gives him offers. So if a little
attention is given to these factors the sales can be maximized to a greater extend.

CHAPTER 7
SWOT ANALYSIS

SWOT ANALYSIS
STRENGTHS
• Unified activity
• Competent work team
• Good management policies
• Good relations with the suppliers
• Good co-ordination among the departments and employees
• Strong working capital .
• Highest number of Dealerships.
• Good customer relations
WEAKNESS
• Shortage of parking space for customers.
OPPORTUNITIES
• Increasing demand for cars in India.
• People’s changing attitude from two-wheeler to a car.
• High demand for small cars.
• Good infrastructure
THREATS
• Increasing competition from other brands and dealers.

CONCLUSION
The Company is the authorized dealer for HYUNDAI MOTORS for South and Central
Kerala. The activities of the Company range over interests in Automobile Trading, Servicing,
Hire Purchase, Leasing and Allied Activities. Dealership has its branches in South and
Central Kerala. It’s an ISO 9001:2008 company.
It was really a great experience learning all the functions of the various departments over
there. The main benefit of the study was that I could learn the basic customer transactions
that are related to passenger vehicle sales. It was a wonderful experience being a part of an
organization and to work along with them. There is high competition from Maruti Suzuki and
other dealers of Hyundai Motors, but because of the strong business strategies followed by
Popular Motor World , they are at the top. The main issue which the company is facing is
regarding the conversion of enquires into sales, a certain per cent of the enquiry is lost to its
competitors which I have reported in detail in the report above. Inspite of these issues
company is moving forwarding smoothly.

BIBILOGRAPHY
Kamala, T.N. & Doreswamy, A.G. (2007). Strategies for Enhancing Competitiveness of Indian
Auto Component Industries. Indian Institute of Management Kozhikode
Business World (11 Jan 2010)
URL
www.knowthis.com/principles-of-marketing-tutorials/consumer-buying-behavior/ .May 20,2010.
www.bloomberg.com/apps/news?pid=newsarchive&sid=aO9LxvSmKTzE.May 20,2010.
www.dealerbusinessjournal.com. June 10 ,2010.
www.popularhyundai.com/.May 7, 2010
www.hyundai.com/in/en/main/.May 7,2010.
www.marutisuzuki.com/May 15,2010.

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Project Report Main

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CHAPTER 1

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Embryonic automotive industry emerged in India in the 1940s. Following

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THE DEALERSHIP BUSINESS

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A. MOTOR WORLD LTD.

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(i) Bajaj Dealership:

(ii) Hyundai Dealership:

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Figure 1:Corporate Organizational structure

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In continuation with its commitment to providing Indian customers with cutting-edge

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POPULAR MOTOR WORLD PVT. LTD.

i10 i10 Delite

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Era DSL 1.4

1.4 Magna DSL with ABS

Asta with Sunroof

Sportz DSL 1.4

1.4 Asta with ABS

1.4 Asta DSL with Sunroof

Santro GLS AUDIO

Santro GLS LPG

Santro GLS LPG AUDIO

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Table 1:Product Profile

3S Facility (Showroom, Service and Spares)

“To be the most admired fastest growing innovative corporate house

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“We are not in the business of selling and servicing cars…

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1. To expose ourselves to the working of an organization and know how it is

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The main constraints or limitations for the study were:

Limited time available for the study

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Figure 2: Accounts Staff Hierarchy

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Direct Marketing Team Showroom Sales Team

Figure 3: Division of Sales Team

Direct Marketing Team

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The documents required for permanent registration are:

Copy of address proof(two numbers)

Insurance policy note

Sale certificate(form 21)