A RESEARCH SYNOPSIS

ON
“A RESEARCH ON CONSUMER BEHAVIOUR IN
AUTOMOBILE INDUSTRY”
Submitted in pursuant to the ordinances for award of
the degree of
MASTER OF BUSINESS ADMINISTRATION
Of
Dr. A. P.J. A. K. Technical University, Lucknow

Project Submitted By: Project Supervisor:

Md Sohail Khan Dr. Manoj Mishra
Roll No. 1901200700020 Asst. Prof.
Dept. of Business Administration

Department of Business Administration

INSTITUTE OF TECHNOLOGY & MANAGEMENT, GIDA
Session 2020-21

1|Page
 TABLE OF CONTENT

Sr. No. Topic

1 Title of the Project

2 Introduction

3 Objective of the Study

4 Industry Profile

5 Research Methodology

6 References

2|Page
CONSUMER BEHAVIOUR IN AUTOMOBILE
INDUSTRY

3|Page
 INTRODUCTION

The researcher evaluated various secondary studies conducted on the consumer behaviour of
passenger cars by other researchers in the relevant area, in different countries, India, and
specifically in the state of Kerala. Sagar et al. discussed as to how the Indian car industry has
advanced technologically, driven by a confluence of factors such as intense competition,
demanding consumer preferences, government policies (especially tightening emission standards),
and the global strategies of the various players. They elaborate that cars manufactured in India are
based on designs, incorporating advanced technologies, that are often comparable with those
available globally and Indian car exports are also growing.

Mukherjee and Sastry discussed that penetration of passenger cars in rural and semi-urban areas is
extremely low and could provide fresh markets. Their opinion was that new car entrants in the
market will have to deal with uncertainty of demand, different and evolving customer needs, a
relatively poor supplier base, and a market, crowded with competition and industry-wide capacity
shortages. As per Kotwal, buyers now prefer to have cars with the space, comfort, and luxury of a
mid-size saloon or sedan models. With the growing affluence and technological advancement,
there develops a certain maturity in taste, as evidenced by the growing popularity of the Indian
hatchback market.

4|Page
 OBJECTIVE OF THE STUDY

 To know the customer perception about features, low maintenance cost and looks of
Products.

 To know the safety and comfort provided by Automobile Company.

 To provide suggestions, in improving the company sales and Profitability

 To know the after sales service offers by Automobile Company

 To judge the awareness level of the prospect customer.

 To know how they are aware regarding the product.

 To judge in which way they have developed the awareness.

 To judge which promotional tool is effective to increase the awareness level among the
people.

 To know how to maintain and improve brand awareness and to build brand loyalty.

5|Page
 INDUSTRY PROFILE

Automobile Industry in India

Driving the most luxurious car has been made possible by the stiff competition in the automobile
industry in India, with overseas players gathering the same momentum as the domestic
participants.

Every other day, we have been hearing about some new launches, some low cost cars - all
customized in a manner such that the common man is not left behind. In 2009, the automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan,
South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles.
Several Indian automobile manufacturers have spread their operations globally as well, asking for
more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry 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.
Similar plans are for General Motors.

Segmentation of market share of automobile industry in India

6|Page
Passenger Vehicle: 15.96%
Commercial Vehicle: 3.95%
Three wheelers: 3.60%
Two wheelers: 76.49%

Top Automobile Companies in India

Tata Motors

Tata Motors is the largest automobile manufacturing companies in India. Established way back in
1945 Tata Motors is a multinational automobile company with its headquarters in Mumbai.
Previously known as Telco TATA Engineering and Locomotive Company Tata Motors belongs
to Tata Group. This company manufactures compact medium sized utility vehicles. Over the last
few decades it has stood as the undisputed leader in the commercial vehicles segment. It is also
the third largest producer of passenger cars in India. This automobile company in India is listed on
both the Bombay Stock Exchange and the New York Stock Exchange. The revenues earned by
Tata Morts in 2010 accounted to $20.572 billion. Some of the well known cars manufactured by
Tata Motors are: Tata Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and Tata safari.

Hindustan Motors Limited

Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative subsidy
of the Birla Technical Services group. This company held the title of the biggest manufacturer of
cars in India before Maruti Udyog. Hindustan Motors was the pioneer in manufacturing
automobiles in India. The company accounted for a sales turnover of Rs 150.66 crore in 2010.
Some of the important cars and multi utility vehicles manufactured by Hindustan Motors Limited
include; Mitsubishi Lancer, Trekker, Contessa, Ambassador, Porter, Pushpak and the Mitsubishi.

Ashoke Leyland

Ashoke Leyland is a leading commercial vehicle manufacturer in India. It was established in 1948.
The company over the years has become synonymous with the production of trucks, passenger

7|Page
buses and emergency military vehicles. It happens to be the second largest commercial vehicle
producer in India holding a market share of almost 30 percent. The company holds a record for
selling almost 60, 000 vehicles and almost 7000 engines per years. Ashok Leyland accounted for
consolidated revenues of US$ 1.4 billion in 2009. Some of the popular products by this company
are; Panther BS-II Muti-axle Vehicles, Cheetah Bus-III, Tractors and Ecomet, Lynx BS-II, Diesel
and Natural Gas gensets from 15KVA to 250KVA.

Maruti Suzuki India Limited

Maruti Suzuki India Limited was established in 1981. A part of this company is owned by Suzuki
Motor Corporation of Japan. It is the country's largest passenger car manufacturing company.
Credited for having brought in the automobile revolution in the country Maruti Suzuki India
Limited was known as Maruti Udyog Limited till 2007. With its headquarters in Delhi this
automobile company in India happens to be the largest producer and market share holder of cars.
The company accounted for consolidated revenues of US$4.8 billion in 2010. Maruti Suzuki India
Limited is credited for manufactures a variety of passenger cars SUVs, and Sedans. Some of
Maruti's most popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti 800, Versa, Zen, Esteem,
Baleno and Swift.

Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South Korea.
Hyundai Motors happens to be the largest car manufacturer in South Korea and the sixth largest
in the world. This automobile company in India is also the largest passenger cars exporter in India.
Established on May 6 1996 this company in a short span of time has taken the Indian automobile
industry by storm. Some of the popular cars manufactured by this company are; Santro, Getz
Prime, Hyundai i10, Hyundai i20 Accent and the Verna and Sonata

Bajaj Auto
Bajaj Auto is another important automobile manufacturing company in India. It is one of the India's
most trusted car manufacturers. It is an operative subsidy of the Bajaj Group. Bajaj Auto happens
to be the largest two and three wheeler manufacturer in India and also ranks in this field across the
globe. This automobile company was established on 2 November 1945. The company was then
known as M/s Bachraj Trading Corporation Private Limited. The company made a modest
beginning by importing and then selling two and three wheelers in India. Today Bajaj Auto has
become synonymous with two and three wheelers in the country. Some of its popular two wheelers
are; Pulsar 220DTS and Kawasaki Ninja 250R.
8|Page
 Indian Automobile Industry SWOT Analysis

Strengths
• Domestic Market is large
• Government provides monetary assistance for manufacturing units
• Reduced Labor cost

Weaknesses

• Infrastructural setbacks
• Low productivity
• Too many taxes levied by government increase the cost of production
• Low investments in Research and Development

Opportunities

• Reduction in Excise duty

• Rural demand is rising
• Income level is at a constant increase

Threats

• Increasing rates of interest

• Too much competition
• Rising cost of raw materials

9|Page
For more information contact :[email protected]

Disclaimer : All efforts have been made to make this image accurate. However Compare Infobase
Limited and its directors do not own any responsibility for the correctness or authenticity of the
same.

10 | P a g e
Automobile Technology in India
Automobile Technology or automotive technology refers to the technologies that are incorporated
in automobiles or vehicles. With the continuous advancement of technologies new inventions in
the field of automobile technology is only paving the way for more and more technologically
superior and sophisticated vehicles. Automobile technology is one of the most essential parts of
the automobile industry today. There are a number of vehicles available in the market all of which
require different technologies to support their smooth functioning.

Changes in Automobile Engines Technology

However the most important changes that has taken place in the automobile industry in India
pertains to the development of the engine. In the cars using petrol the carburetor engine has been
replaced by the Multi Point Fuel Injection (MPFI) engine. Similarly the engines running on diesel
have undergone a sea change from the time Rudolf Diesel to the Rail Direct Injection (CRDI).

Multi Point Fuel Injection (MPFI)

This technology sticks to stricter auto emission norms and manages to squeeze out the maximum
benefit of the fuel by making optimum use of even the last drop of petrol or diesel and providing
the vehicle with a great mileage.

Common Rail Direct Injection (CRDI)

If you have the benefit of a Common Rail Direct Injection engine fitted to your car you will know
that you have invested your money in the right place (CRDI) offers 25% more power than the
normal direct injection engine and also a soundless pick up with mileage of about 24 kilometers
to one liter of diesel.

Changes in Vehicles Technology

Along with the engine the vehicle has also undergone an enormous improvement in the form of;

Autopilot cars:
Driverless cars also known as autopilot, autonomous vehicle or auto-drive car are intelligent
vehicles because of the simple fact that they drive themselves, to put it in a better way they actually
do not require drivers to drive them. These vehicles navigate the roads themselves and give you a
taxi experience.

11 | P a g e
Emission Standards:
With the help of the advancement in automobile technology a check can be put on the emission of
harmful pollutants like NO 2 , particulate matter (PM) or soot, carbon monoxide (CO) or volatile
hydrocarbons which would by far help to save the planet from global warming.

Automotive Engine:
Coming from the first steam engine built by Nicolas-Joseph Cugnot in 1769 the to the modern day
four stroke internal combustion engine, the automobile engine has survived a long journey. It is
simply the determination and power of the human mind that has kept improving the steam engine
and today excelled in making it a fast and smooth running engine.

Suspension technology:
The suspension system of a vehicle consists of springs, shock absorbers and linkages these together
connect the vehicle to its wheels. However the main function of the suspension system remains to
minimize jerks and to provide a smooth journey to its occupants

Apart from the above mentioned technologies steering technologies and safety technologies have
also helped the automotive industry to reach great heights.

Automobile Maintenance in India

Automobile Maintenance in India is one of the most necessary service related to the Indian
automobile market in India. All the vehicles need regular maintenance as only by this, one can
keep their vehicles secure. Moreover it also indicates the performance and longevity of the
vehicle.
Starting from car painting to looking after the auto-parts regularly, everything falls under the
policies of Automobile Maintenance in India. The automobile components directly related to the
performance of the vehicle. Some of the regular processes of Automobile Maintenance in India
are like checking the battery, changing the automobile oils, keeping a check on it, checking the
electrical system to identify a few of them.

Some of the most essential tips required for the owner and also the driver to follow seriously for
the well being of the vehicle and for a proper automobile maintenance in India are as under:

12 | P a g e
• to prevent deterioration of the engines, it is necessary for the engine to maintain the amount of
oil it receives, in order to prevent falling mileage
• to have an accurate knowledge of the fuse system which would save the vehicle from getting
stranded due to a blown fuse
• to focus the lights of the automobile properly
• to check the air pressure of all the tires regularly
• to change the water required for the engine
• to get the automobile serviced only at authorized and efficient service stations
• to check the engine oil level once every two weeks
• to check the coolant and water levels in the radiator and battery
• to use authentic and genuine spare auto parts always
• to provide the vehicle with anti-rust coating before the rainy season
Apart from these general tips on the automobile maintenance in India for safe drive the driver
should also follow some preventative automobile maintenance policies like to check the air-filter
every month, to be cautious while handling the battery, to check the brake fluid monthly, to get
the oil filter replaced with every oil change, and many others. To get a vivid idea about the
Automobile Maintenance in India, the owner and also the drivers should go through the user
manual of the vehicle very seriously.

13 | P a g e
 RESEARCH METHODOLOGY

Research Methodology
A research process consists of stages or steps that guide the project from its conception through
the final analysis, recommendations and ultimate actions. The research process provides a
systematic, planned approach to the research project and ensures that all aspects of the research
project are consistent with each other.
Research studies evolve through a series of steps, each representing the answer to a key question.

INTRODUCTION
This chapter aims to understand the research methodology establishing a framework of evaluation
and revaluation of primary and secondary research. The techniques and concepts used during
primary research in order to arrive at findings; which are also dealt with and lead to a logical
deduction towards the analysis and results.

RESEARCH DESIGN
I propose to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which certain
issues shall be selected, which I feel remain unanswered or liable to change, this shall be further
taken up in the next stage of exploratory research.
This stage shall help me to restrict and select only the important question and issue, which inhabit
growth and segmentation in the industry.
The various tasks that I have undertaken in the research design process are:
 Defining the information need
 Design the exploratory, descriptive and causal research.

RESEARCH PROCESS
The research process has four distinct yet interrelated steps for research analysis it has a logical
and hierarchical ordering:
 Determination of information research problem.

 Development of appropriate research design.

14 | P a g e
  Execution of research design.

 Communication of results.

Each step is viewed as a separate process that includes a combination of task, step and specific
procedure. The steps undertake are logical, objective, systematic, reliable, valid, impersonal and
ongoing.

EXPLORATORY RESEARCH
The method I used for exploratory research was
 Secondary data

SECONDARY DATA
Information that already exists somewhere, having been collected for another purpose. Sources
include census reports, trade publications, and subscription services. There are two types of
secondary data: internal and external secondary data. Information compiled inside or outside the
organization for some purpose other than the current investigation Researching information, which
has already been published? Market information compiled for purposes other than the current
research effort; it can be internal data, such as existing sales-tracking information, or it can be
research conducted by someone else, such as a market research company or the U.S. government.

Secondary source of data used consists of books and websites

My proposal is to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall be
further taken up in the next stage of exploratory research.

SAMPLE SIZE – Website Source

15 | P a g e
 REFERENCES

BOOKS

1. Research Methodology: C.K. Kothari

(Wishwa Prakashan Darayaganj New Delhi 4th Edition-2018)

2. Marketing Management: Philip Kotler

(Prentice- hall of India Pvt. Ltd. New Delhi-110001 12th Edition -2016)

WEBSITE
www.mahindra&mahindra.com
https://www.tatamotors.com
https://www.hyundai.com
https://www.marutisuzuki.com
www.google.com
www.indiaindustry.com
https://www.ibef.org/uploads/industry/Infrographics/large/automobiles-infographic-nov-
2018.pdf
https://www.ibef.org/industry/india-automobiles/infographic

16 | P a g e