luxury car industry in india

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“A STUDY ON CONSUMER BRAND PREFERENCE OF LUXURY CARS

WITH PARTICULAR REFERENCE TO COIMBATORE DISTRICT”

.

INTRODUCTION:

“The only thing permanent is change”. The world of today is changing fast and India is no exemption to it. Motor car is one of the commonly used conveyances by the upper, upper middle and middle class people. Especially after the opening up of the economy, the pace of change that India and its people are experiencing in their socio – culture is mind bugging. With the opening up of the Indian economy, marketers today are facing a new challenges and opportunities.

Now a days motor car is not only bought for social status, but becomes a necessity one.

As the population is in the increasing trend, the government and private sector are not able to provide adequate conveyance for all the passengers, especially the office going and the business people.

A lot of car manufacturing companies have come in to cater to the needs of the people, but the consumer preference for the particular brand depends not only the internal factors, but also the price, appearance, after sales service, mileage, maintenance etc.,

STATEMENT OF PROBLEM :

In India after independence, industrialization has paved the way for people to have luxury items such as LCD’s, Smart phones, home appliances, and Luxury cars etc., In Coimbatore, of the increasing development is the growth of the industries. Coimbatore district is the second largest in Tamilnadu both in area and population, also known as Manchester of South India.

Since it is a industrial area most of the people and industrialist own cars. The car market has recently undergone a phenomenal change with a entry of new car model as a result of collaboration with different foreign car market.

Though there are many car manufacturing companies only a few are able to sand in the market and earn profit and mostly the companies are not able to face the competition to remain

in the market. The reason is due to the entry of new International cars which contribute to the luxury segment.

So, the researcher has developed an interest to study the reason behind in preferring some brands and also a very few research studies in Luxury car segment are available. My sincere aspirations to know the back ground of the Luxury car industry in India and also which brand is dominated by the society in Coimbatore District is studied.

“THE CONSUMER BRAND PREFERENCE OF LUXURY CARS WITH PARTICULAR

REFERENCE TO COIMBATORE DISTRICT”.

LUXURY CAR INDUSTRY IN INDIA:

What does luxury mean?

A luxury is something that you do not really need to live or survive, but is enjoyable, nice, or relaxing to have. For example, it would be a luxury to go on a vacation to Hawaii.

The Word Luxury

The word ''luxury'' refers to products or services of a very high standard. It is often used to describe something extraneous or expensive, usually something that many people do not have, and use for leisure time. In cars, examples of luxurious car manufacturers are: Aston-Martin,

Peugot, Cadillac, Porsche, and Audi.

Researchers agree that luxury goods are conducive to pleasure and comfort, are difficult to obtain and bring esteem to the owner. Therefore, luxury goods satisfy socio-psychological needs in greater form.

2.

CONSUMER BEHAVIOUR

:

Who is a Consumer?

Consumer, under section 2(1) (d) of the consumer protection Act,1986, means one who pays money for goods or services. In other words, a consumer is a specific person who pays money either for purchase of other person, individual or corporate body.

Consumer satisfactions vary from person to person, product to product. The number of customers, whose reported experience with a firm, its products or its services exceeds specified satisfaction goals – Farris

1 –

2010.

Customer satisfaction provides a leading indication of consumer purchase intention and loyalty. Although sales or share of the market can show a well performance of a firm, satisfaction is perhaps the best indicator for how the firms customers will make further purchases in the future.

The seven factors which satisfies the consumers are

(i) Delivery process

(ii) Delivery timings

(iii) Sales person

(iv) Sales initiation

(v) Dealer facility

(vi) Paper work and

(vii) Deal.

All of us are consumers, we consume things of daily use, we also consume and buy these products according to our needs, preferences and buying powers. There can be consumable goods, durable goods, specialty goods or industrial goods.

“What we buy, How we buy, Where we buy , When we buy, How much quantity we buy” depends on the perception, self concept, social and cultural background and our age and family cycle, our attitudes beliefs, values, motivation, personality, social class and many other factor that are both internal and external. Marketing starts with the needs of the customer and ends with the consumer satisfaction. As everything involves consumer behaviour, the study becomes necessary.

Goods can be bought under stress to satisfy an immediate need for comfort and luxury in small quantities or in bulk. Exchange is required for this; this exchange is between the seller and

buyer. Consumer behaviour can be defined as the decision making process and physical activity involved in acquiring, evaluating, using and disposing of goods and services.

The buying process does not come directly to the consumers, before buying he goes in to a several process as clearly said by the definition. The process involves finding of alternatives between products that can be acquired with their advantage. It also gives a clue to the marketers whether his product has been a success or not.

The researcher tries to find-

1.

How the company product is compares with other products?

2.

How the opinion about the product can be utilized?

3.

What is the customer’s attitude towards the product and its advertising?

INTRODUCTION OF THE STUDY :

“Marketing is a total system of business, an ongoing process of: (i) discovering and translating consumer needs and desire into products and services. (ii) creating demand for these products and services. (iii) serving the consumer demand with the help of marketing channels, and then, in turn, (iv) expanding the market even in the face of keen competition.”

BUYER BEHAVIOUR :

It is comparatively new field of study. It is the attempt to understand and predict human actions in the buying role. Buyer behaviour is defined as “All psychological, social and physical bahaviour of potential customers as they become aware of, evaluate purchase, consume and tell others about products and services”. Each element of this definition is important-

(i) Buyer behaviour involves both individual process and group process.

(ii) Buyer behaviour is reflected from awareness right through post-purchase evaluation indicating satisfaction or non-satisfaction from purchases.

(iii) Buyer behaviour includes communication, purchasing and consumption behaviour.

(iv) Consumer behaviour is basically social in nature. Hence, social environment plays an important role in shaping buyer behaviour.

(v) Buyer behaviour includes both consumer and business behaviour.

In buyer behaviour, we consider not only why, how and what people buy but other factor such as where how often and under what constitutions the purchaser is made. An understanding of buyer behaviour is essential in marketing planning and programmes.

In the final analysis buyer behaviour is one of the most important keys to success marketing.

Inputs of buyer behaviour are:

(i) Intra personal influence – motivation, perception, learning, attitudes and personality.

(ii) Inter personal influences – family, social class, reference groups and culture.

(iii) Other environmental influences – general economic condition, pending legislations, fashion trends and technological advances.

MARKETING RESEARCH :

RESEARCH: Research is the process of gathering, recording and analyzing of critical and relevant facts about any problem in any branch of human activity. It indicates critical and searching study and scientific investigation of a problem, a proposed course of action, a hypothesis or a theory.

MARKET RESEARCH :

Market means actual and potential customers. Market research is the systematic and intelligation or study of “Who, Where, When, Why, and How of actual and potential buyers.”

The following items of study and analysis are included in market research: i) Size of the market ii) Geographic location iii) Demographic description of customers iv) Market segmentation on the basis of age, sex, income, education, nationality, standard of living. v) Analysis of market demand vi) Sales analysis and customer territories products vii) Consumer needs, wants, habits and behaviour viii) Dealer wants and preferences

ix) Degree of competition and the market trends.

MARKETING RESEARCH :

In a dynamic economy, marketing research acts as the investigation arm of marketing manager – management tool in planning – control cycle. Marketing research covers – i) Market research ii) Sales research iii) Product research iv) Advertising and promotion research v) Research on sales methods and policies vi) Distribution research including the dealer research.

What marketing research can do for business?

There are six faithful service- men at the disposal of market researchers.

1.

What is the product? – Product research

2.

Who are the buyers? – Consumer research

3.

Why do they buy? – Motivation research

4.

How do they buy? – Research in buying habits.

5.

When do they buy? – Channel of distribution

6.

Where do they buy? - Channel of distribution.

COMMON CRITICISM OF MARKETING :

1.

Marketing is inefficient. It misallocates resources.

2.

Marketing ignores ethical and moral considerations.

3.

Marketing adversely influences one environment or ecology.

4.

Growth of consumerism is reflecting protests of consumers against business injustices and unfair trade practices.

WHAT IS BRAND?

To brand is to name or mark indelibly as proof of ownership. It means a sign or symbol of quality. Branding is the best means to capture and retain the

consumer demand in a competitive market. The marketer can create brand equity, brand loyalty and brand image for his products only through branding.

A product is what the company makes a brand is what a customer buys – hopes – expectations – services. Branding is the practice of giving a specified name to a product or group of products from one seller. The sole purpose of branding is to distinguish your branded products for those of competitors. A well promoted brand name which has earned reputation in the market is very difficult to compete with.

Trade mark is the legal term, others can’t use it. The important of branding are i) It enables national advertisement of a specific product and it is presold through advertising. ii) Repeat sales are stimulates and product substitution is not possible. iii) Branding by differentiating a product from its rivals enables the brand- owner to establish his own price which cannot be easily compared with prices for competing goods. iv) If a firm has one or more lines of branded goods, it can add a new item to its list easily and the new item can enjoy all the advantages of branding immediately.

REASON FOR BRANDING:

When the supply is more than the demand, companies not only need to create customers, but also keep them; and to keep customers, one needs to create customer loyalty. For this one has to project a personality of a brand to which the customer will be loyal. This personality is called a “BRAND”.

Branding is more powerful instrument of sales promotion due to

1.

Ever increasing competition

2.

Branding and packing go hand – in – hand.

3.

Need for advertising and publicity.

4.

Development of consumer brand consciousness as a brand image to the mind.

ESSENTIALS OF A GOOD BRAND:

1.

Brand should suggest something about a product’s benefit –its use quality, products nature, purpose, performance or action.

Example: Lijjat papad, vicco vajradanti.

2.

The name should be short, simple easy to pronounce, to spell and remember.

3.

It should be capable of being registered.

4.

It should have a stable life and be unaffected by time.

5.

It should create pleasant association.

6.

It should not be used as a general or common name for all products.

Example: Sunlight, Glowhite, Maggy, Boost, Gold flake etc.,

International Global Marketing (1983)

Prof. Levitt’s article on globalisation of markets points out that world markets are being driven toward a converging commonality (i.e.) consumer demand round the world tends to have similar needs, desires and expectations for the same product.

Example: Sony TV, Levy’s jean, Arrow shirts, coca cola, Ray ban glasses, Toyota, Ford,

Mc Donald’s, and Hamburger and so on...

DESIGN OF THE STUDY

:

Objectives of the study:

1.

To study the growth, development and performance of automobile industry in India.

2.

To assess the awareness of buyers about the brands, products, special features and accessories of Luxury cars.

3.

To analyse the purchase patterns and the factors influencing the brand preference of

Luxury cars.

4.

To examine the pre-purchase behaviour of buyer of Luxury cars.

5.

To analyse the post – purchase behavior of buyers of Luxury cars.

6.

To examine the level of satisfaction of buyers in using the Luxury cars.

7.

To offer summary of findings, suggestions and conclusions.

METHODOLOGY

:

The study is exploratory in nature and based on Primary and Secondary information. Secondary information is collected from the different Journals, Internet,

Periodicals, and car manufacturing websites. Primary information can be gathered using survey methods. To elicit the responses, a detailed questionnaire has been designed and surveyed.

A preliminary questionnaire is developed using 4 point Likert scales. The independent and dependent variables are identified. The questionnaire is pre tested several times to arrive at appropriate wording, format, length and sequencing of the questions. Pre – test feedback is used to refine the questionnaire until it is ready for the data collection.

After fixing the questions for the independent and dependent variables based on the type of questions different values are assigns to the Likert scale.

AREA OF THE STUDY

The study has been conducted in “Coimbatore District” of Tamilnadu state.

PERIOD OF STUDY

The study was conducted from 1 st

July 2011 to December 2013.

SAMPLE SIZE

A random sample of 800 persons has been selected.

SOURCE OF DATA

The study is based on primary and secondary data. The primary data are calculated through interview schedule, secondary data through the internet, journals, periodicals and car manufacturing websites.

Major Developments:

In 2010, the emergence of over a dozen new cars made India a hot market automobile and there is more to come. Global majors such as Honda and BMW are expected to

launch their Brio and Mini respectively. Intensifying competition in the compact car market.

In the last three to four years, the luxury car segment witnessed a phenomenal 60 to 70 percent growth, and reported sales of 15,000 cars in 2010. Assuming a growth rate of 20 to 30 percent over the next few years, the segment in 2020 is expected to have 1,50,000 cars, which is 10 times its size today.

Maruti suzuki’s sales in 2010 – 2011 rose by 26.24 percent at 9,66,447 units, Hyundai motors sales increased by 13.95 percent to 3,58,904 units, and Tata motors saw a rise of

27.21 percent at 2,56,202 units.

Government has announced a slow of measures to give impetus to electric cars. In

December 2010, the Ministry of New and Renewable Energy (MNRE) announced 20% subsidy on electric cars. The finance minister announced setting up of a national mission on hybrid and electric vehicles in the 2011 – 2012 budgets. In May 2010, Mahindra took over the fillip to indigenous electric car. The Indian market alone is estimated to have around one million electric vehicles by 2010.

Today, small cars constitute almost 72 percent of the Indian passenger car industry, indicating its considerable popularity among consumers. Growing size of the middle class is an important development.

This led to increase in investment in this segment. Also exports of small cars from India are rising. Conservative estimates suggest that the Indian market will see sales of 10 million cars and sports utility vehicles (SUV’s) by 2020, from just over 2.5 million at present.

Some problem:

The steady rise in the interest rate on auto loans affected domestic demand for cars. In April 2011, major players like Maruti and Hyundai posted single growth. The reason is, customers felt the impact of rising interest rates on vehicles loans and higher sticker prices. The cost of car ownership is also going up specially with rising fuel prices.

Rising prices of important raw materials has also forced makers to increase prices.

Car companies import tyres as domestic supply drops. As a result of this, customer hoping for early car deliveries in 2011 had to wait longer. India has to depend on China,

Thailand, Korea and Malaysia to meet its new production targets major car makers like

Maruti Suzuki India Ltd., (MSIL), Tata motors and Hyundai motors are planning to import tyres, anticipating 25% increase in production in 2011 from 2.31 million cars produced in 2010 calendar year.

Both Honda siel cars India (HSCL) and Toyota Kirloskar Motors (TKM) are taken on launching small cars, but they struggle with component supplies from Japan and

Thailand. Honda has been forced to cut output at its greater Noida factory, which produces city, Jazz, Civic and Accord models, following a shortage in fresh supplies of components from Japan.

Other Players

:

General motors’ India is trying to improve its share in the compact car segment, which accounts for 70 percent of the total domestic sales of cars. Chevrolet Beat has helped the company to improve its image. The price of Beat starts from 3, 55,000. The company is planning to offer consumers more fuel options with Beat and has already launched its diesel version.

BMW India, one of the leaders in luxury car market, has set its eye on the small car segment. It plans to introduce its hatchbacks and compact sedans I India to maintain a steady growth. The company is planning to get products from its global line up depending upon the local demand, based on the best of technology and new concepts developed by the parent company.

Dailmer, the parent company of Mercedes – Benz, one of the world’s largest Luxury automaker, is planning to launch a compact car in India based on its smart range,

France’s Renault and Japan’s Nissan will provide technical assistance to alter and modify the basis design of Dailmer’ Smart – a two seater to suit Indian conditions and needs.

Honda has developed Brio after five years of research of the Indian market.

Keeping in view the local conditions and specifically catering to the Indian families, the compact designed car would accommodate five adults. It will be in the government small car segment, as small cars are taxed at 10% against 22% for other vehicles. Brio is expected to be under 5,00,000 cars under 4 meter length, and 122 cc petrol and 1500 cc diesel engines full in the segment.

On May 3, 2011, Mercedes Benz launched two of its premium vehicles – SL 350 and GL 500 to strengthen its portfolio in the highly competitive Indian Luxury car market. The German car maker is also planning to introduce it’s a and B class cars in

India within the next four years, and assemble them locally to make them price competitive.

Production of Cars in India

1999 – 2000

2000 – 2001

2001 – 2002

2002 – 2003

2003 – 2004

2004 – 2005

2005 – 2006

2006 – 2007

2007 – 2008

2008 - 2009

2012 - 2013

Year

Production of Cars

Production in number

5,74,369

5,17,907

5,64,052

6,08,851

8,43,235

1,027,858

1,112,542

1,322,723

1,521,813

1,620,469

1,575,777

January 15, 2013

As per the information received from the Society of Indian Automobile

Manufacturers (SIAM), Passenger Car production in India was growing at a rate of over

17% during the last 10 years. However, due to the increase in fuel price, low GDP growth rate, exorbitant material cost, high interest rate, and slow economic growth, the

production growth has reduced to a marginal 1% during April-Nov 2012-13 against its corresponding period of 2011-12. Out of 16 Car manufacturers, 9 companies have reported decreased production, three more companies have reported only marginal growth (less than 4%) and only four companies have been doing well.

Company wise production of passenger cars during April-November 2012 and April-

November 2011 along with growth rate is given below.

The samples drawn are confined to the particular area

.

Top ten Luxury cars In India with their prices:

Cars

Mercedes Benz

Chrysler 300

Mercedes Benz C Class

Cedilla CTS

Audi A4

Lexus Es 350

Acura ILX

Hyundai Genesis

Audi A6

Audi A 5

Price

Rs 54 L* – 92.4 L*

29.85 L* – 47.82 L*

35.55 L* – 62.33 L*

35.91 L* – 51.65 L*

32.5 L* -33.4 L*

36.10 L*

25.9 L* – 29.20 L*

34.20 L* – 46.80 L*

37.85 L* – 45.45 L*

37.85* – 45.45 L*

*Rupees in Lakhs

Category

BMW India Pvt Ltd

Fiat India Automobiles Pvt Ltd

Ford India Pvt Ltd

General Motors India Pvt Ltd

Hindustan Motors Ltd

Honda Cars India Ltd

Hyundai Motor India Ltd

Mahindra & Mahindra Ltd

Production (In Nos.)

6,872

11,401

75,765

59,375

1,912

26,719

4,20,503

12,180

April

5,860

6,021

75,321

November

-14.73

-47.19

0 .59

45,293

1,535

49,045

-23.72

-19.72

83.56

4,23,829 0.79

10,932 -10.25

Maruti Suzuki India Ltd

Mercedes-Benz India Pvt Ltd

Nissan Motor India Pvt Ltd

Renault India Pvt Ltd

5,79,717

4,931

83,343

1,131

Skoda Auto India Pvt Ltd

Tata Motors Ltd

20,447

1,61,582

Toyota Kirloskar Motor Pvt Ltd 52,807

Volkswagen India Pvt Ltd 57,092

Total Cars 15,75,777

5,98,512 3.24

3,605

94,345

8,099

-26.89

13.2

616.09

21,259 3.97

1,40,686 -12.93

63,268 19.81

43,828 -23.23

15,91,911 1.02

Various steps have been taken in pursuance of Automotive Mission Plan (2006-

16) and the new Foreign Trade Policy provides additional incentives which will expectedly boost the production of cars. The above data available in the written answer to a question in the Parliament.

Best Luxury cars in India

1.

Volkswagen Beetle

2.

BMW

3.

Nissan

4.

Toyota

5.

Mitsubishi Montero

6.

Mercedes Benz

7.

Tata Manza

8.

Honda Civic

9.

Honda Accord

10.

11.

12.

13.

17.

18.

Honda Santa Fe

Chevrolet Optra

Hyundai Accent

Renault Fluence

14.

Skoda

15.

Audi

16.

Maruti

Volvo

Porsche

Luxury-Car Competition Intensifies in India

In a market dominated by small cars, the competition between luxury automakers is now also heating up.

India is the latest stage in the competition between three German auto giants: BMW AG Audi

AG and Mercedes-Benz. The luxury car makers are introducing new models and offering customized

interest rates in a bid to lure buyers. They are also opening new showrooms in the country’s smaller cities.

Globally, the race is neck-and-neck between BMW AG, which has the largest market share, and Volkswagen AG’s Audi. In third place is Daimler AG’s Mercedes-Benz.

This pattern is mirrored in their performance in India, where sales for BMW have been unchanged from last year at 7,389 cars from January to October. Audi India sold a similar number of vehicles in this period: 7,267, a 55% increase from the same period a year earlier. Mercedes-Benz

India Pvt., saw sales drop 10% between April and October to 3,651 cars, according to data issued by the Society of Indian Automobile Manufacturers. The company declined to share figures from

January.

Mercedes-Benz, which started its operations in India in 1990s, over the last decade lost its dominance in the market to Audi and BMW. Now, the company is trying to up its game by launching new models. In September, it launched the B-Class hatchback, which, with a base price of 2.15 million rupees ($39,815) is the company’s lowest-priced vehicle in India. The company has already sold out this year’s lot of 250 units.

Last week, BMW said it would debut the 1-Series in mid-2013, a hatchback that is expected to compete with Mercedes’ B-Class. The company also said it would introduce a new version of its 7-

Series sedan. Both cars will be assembled at the company’s plant near the southern Indian city of

Chennai. Vehicles assembled in India are cheaper for consumers, since they are taxed less.

Last month, Mercedes also began assembling its first sport utility vehicle in India: the M-

Class. Audi also began assembling an SUV, the Q7, in November, its second made-in-India SUV after the Q5 model. BMW, which already assembles the X1 and X3 SUVs in India, introduced a new version of the X6 crossover vehicle last week.

Who is the real No. 1 luxury car maker in India?

So who is the Hero No. 1 of the India luxury car market?

Audi claims that in the month of June 2012 the company sold 759 vehicles. BMW’s numbers are 750. Mercedes Benz sold 622 cars. So with a lead of 9 vehicles, Audi edges BMW to become

India’s No. 1 manufacturer of luxury cars. Not so fast, says BMW.

BMW claims that Audi has reported wholesale numbers to Society of Indian Automobile manufacturers (SIAM) while it has reported retail sales. So it is not an apples to apples comparison.

Wholesale means cars that are billed to dealers. Retail sales mean cars which have actually been sold to customers. BMW claims that Audi sold only 718 vehicles (retail sales) compared to

BMW’s 750. Of course, exactly how BMW managed to get Audi’s retail sales number is bit of a mystery but its claim is that BMW is still the No. 1. Now add another twist to it. SIAM is the body responsible for collecting and disseminating sales data of all car/two wheeler/commercial vehicle manufacturers in India. And SIAM says that it never accepts anything but wholesale data from manufacturers. And it wouldn’t acknowledge or comment on whether BMW’s sales numbers are retail or wholesale.

Now if you are in the business of writing about/following the automotive industry in India, you would know that this wholesale/retail number allegation game has been on between these three

German luxury car manufacturers for quite sometime now. Mercedes Benz says that it will stand by what SIAM recognizes and that’s wholesale data. BMW says that globally it reports retail sales, so it cannot make an exception for India. I understand that Audi shares retail sales data too. Although I am intrigued how the wholesale data for the month of June 2012 made it to the SIAM’s data sheet which has led to this confusion.

SIAM is absolutely miffed with all this. I spoke to a SIAM executive on this matter about a month back and this is what he had to say. “This has become an absolute joke. We have taken up the matter in the executive committee meeting and sent a letter to all three manufacturers that they should wholesale numbers only. But till now they have not done it,” he said. He went on to add that this confusion on the numbers has led to many people questioning the sanctity of SIAM’s data. I think

SIAM really needs to come out and clear the air over whether it is going to accept retail numbers from BMW and Audi. If not then there is bound to be confusion and endless instances of bragging rights to the No. 1 position.

MARKET SEGMENTATION

“Market segment is the process of dividing a potential market in to number of sub number of submarkets of consumers with common needs and characteristics”.

In the section, we have discussed some key market segment and the dominant behaviour of buyer in those segments.

STATUS BUYERS

1.

Car is bought primary as a status symbol.

2.

Brand image associated with the car is very important.

3.

Quality of engineering and attention of finish are very important. In general styling and looks are important.

4.

Multiple car owners and light users.

5.

Economy of operation and cost of maintenance are irrelevant to the purchase of decision.

The Mercedes Benz E220 is the absolute top of the line model in this segment. Till a few years ago

Contessa and Maruti Esteem were slotted in this segment. Other models that might make a dent in this segment are GM opel Astra and Toyota.

LUXURY CAR BUYERS

1.

This segment buyers are see the car as a measure of upper class living standard.

2.

Recent entrants rather than high quality of engineering (or) brand image tend to be viewed favourably.

3.

Emphasis to on technology and add on feature.

4.

Cost of maintenance and economy of operation are not major points to this class of buyers.

The opel Astra, Cielo and Maruti Esteem would seem to be the preferred models in this category.

FAMILY CAR BUYERS:

1.

This category buyers prefer comfortable and roomy cars.

2.

Luggage space would be an important criterion.

3.

Costs of maintenance would be important. Because buyers would typically be upper middle class.

Ciello, Opel Astra and even the Maruti Omni would probably be ideal candidates for this buyer.

SPORTS BUYERS:

1.

Styling and ruggedness are very important.

2.

Car would be used extensively on high ways.

3.

Open hooded cars would be preferred.

The Maruti Gypsy has been particularly the only model available to this buyer. However, this segment is expected to see some new models like the Suzuki Vitara.

UTILITY / FUNCTION BUYERS:

1.

Operating economy, durability, easy driving and ruggedness are desired attributes.

2.

Buyer is price sensitive.

3.

Wish to have enough facility in maintaining the car.

4.

The car is used mainly for city driving.

Among the existing cars Maruti 800, Ambassador, Maruti Omni and Premier Padmini are the typical model, which satisfied the above aspirations.

CAR RENTAL AGENCIES, TAXI AND TOURIST CAR OPERATORS:

1.

Frequent long distance travel.

2.

Comfort, minimum down time, low maintenance cost, and speciousness are essential attributes.

3.

Ruggedness, reliability, easy of repairs ad servicing are also desirable attributes.

4.

Car used very heavily and frequently used in highways.

Ambassador, Contessa classic, and Fiat cater to this segment.

The Indian passenger car industry is expected to grow to 2.4 million by the year 2010 against

4,16,000 in 1997-98. This indicates the compounded annual growth rate (CAGR) of 16% and an increase in its share of the total industry output to 37% from the current 30%.

In value terms the market is expected to touch Rs.68,000 crore by 2010 to Rs. 12500 crore in

1997-98, increasing the penetration of passenger cars to 20 per thousand from four per thousand. This will, however require and directed thrust by the government to generate demand in this category.

The projection is part of the vision statement by association of Indian Automobile manufacture which sees the Indian automobile industry growing faster then economy to reach 10% of

Industrial production in 2010.

Going by international brand in the same period (Multi Utility Vehicle) MUV are expected to constitute 20% of the passenger car, market selling Rs.480000 units amounting to Rs.19200 crores and two wheeler are expected to grow over 13 million units a year, with the turn over likely to increase four times to Rs.34000 crore in 2010 implying and CAGR of 12%.

Regarding commercial vehicles including light, medium and heavy ones. The vision anticipates a CAGR of 7% to 6,00,000 from the current level of 1,60,000.

The component sector, with an average of 28% growth during 92 to 97 is expected to grow at

CAGR 22% in nominal terms.

Review of Literature

www.consumersearch.com/luxury - cars

Best "budget" luxury sedan

The Lexus ES 350 is priced in the same category as a host of very good sports sedans, but reviews point out that the Lexus squarely places its priority on a comfortable ride and luxury features.

Its quiet cabin, plush ride and high-quality craftsmanship compare favorably with luxury sedans that cost considerably more, prompting reviews to call it an unbeatable value for those who demand luxury rather than high performance and handling. With its 282-hp V6 engine and front-wheel drive, the ES 350 can't match comparable sports sedans on a twisting road, but it beats them in refinement and features. Like more expensive Lexus models, the ES offers optional premium sound systems, adaptive cruise control, heated and ventilated leather seats, navigation system with rear-view camera and more. Another plus is its strong reputation for reliability.

Luxury car as technological showcase

The Lexus LS 460 is one of the most technologically advanced cars on the market, impressing reviewers and consumers alike. Among its many options is an automatic parking system, which essentially allows the car to park itself. Most reviewers are pretty floored by this feature (though some say it encourages lazy driving). Aside from the self-parking feature, the Lexus has a ton of safety-related features, satellite radio with live traffic data, an excellent and accurate navigation system and intuitive driver controls. The 4.6-liter, 380-hp V8 engine is quiet, and reviews say the

Lexus has great drive-feel and responsiveness. Experts almost unanimously applaud the Lexus LS

460, and note that although its price is obviously quite high, it comes in lower than most of its

European competitors.

Best no-compromises luxury car

Scoring more top picks among reviewers than any other luxury car, the Mercedes-Benz S550 is a superlative ride, with an exhaustive list of safety features and luxury amenities, either standard or as an option (except self-parking). Unique features include an infrared night-vision system that can

"see" what's ahead at night. A virtual LCD speedometer on the dashboard can also display status information and navigation data in addition to the night-vision picture. Power, handling, comfort and amenities are all excellent in reviews. Price is the main and obvious drawback, although the higherpriced Mercedes scores a few extra prestige points over the Lexus.

Best no-compromises luxury car

Pros

Strong performance

Smooth ride, excellent handling

Quiet, roomy interior

Refined feel with high-quality materials

Advanced technology

Cons

Complicated controls

High price

Low fuel economy

1.

Marketing holds the key to the success in any business today. One can witness a dramatic global shift from production – down to a ‘consumer oriented’ business culture. Marketing is essential persuasion.

It is also about communication – communicating and highlighting in favour of ones brand. Modern marketing employs a variety of communication techniques notably advertisement, public relations and sales promotion. Sales promotion related spending in USA increased from $ 56 million in 1991 to nearly $ 100 billion in 2001

1

.

Reference – “Slow + steady promos exclusive annual report of the U. S promotion industry promo, April 2002.

Philip Kotler estimated that even in 1940 the ratio of advertisement to sales promotion was roughly 60: 40

2

.

Reference - Kotler. P (1967) marketing management analysis planning and control, 9 th

ed.

Prentice Hall single wood cliff, NJ.

One more proof of the important and versatility of sales promotion is given in the oft – quoted

Harris International marketing week survey, which showed that well over 70% of the population participated in the games relating to products and services

3

.

Reference – marketing week, February 20 1987.

2.Business acceptance of sales promotion:

A major research project completed by promotion decisions, inc., tracked the purchasing behaviour of over 33,000 consumers. The result showed that only 42% purchased with incentive while 58% at full price

4

.

Reference – “The effect of promotion stimuli on consumer purchase behaviour,’(Glenview:

FSI council,1999) –

Ms Revathi Murali Guided by Dr. K. K. Ramachandran. GRD College.

3.Ms. D. Kalpana.

Dr. R. Rajkumar CMS College:

India has been observing 15 th

March since 1989 as the international Consumers Day. This day has a historic importance as it was this day in 1962, when the bill for consumer rights was moved in the US congress, during his speech President John. F. Kennedy had remarked.

“If a consumer is offered inferior products, if prices are exorbitant, if drugs are unsafe, if the consumer in unable to choose on an informed basis, then his dollar is wasted, his health and safety may be threatened and national interest suffers”.

He gave 4 basic rights

1.

Right to safety.

2.

Right to choose.

3.

Right to information.

4.

Right to be heard.

COPRA – Consumer Protection Act – 1986.

Responsibilities of buyer:

1.

Before buying: a.

Planning in advance b.

Enquiring past performance c.

Reputation of producer / seller / service provider.

2.

While buying: a.

Asking for demonstration – how to open b.

After sales service and enquiring about availability, phone numbers, address, email. c.

Knowing about guarantee / warranty d.

Insisting for sale bills. e.

Obtaining guarantee / warranty card and getting signed / sealed.

3.

After buying: a.

Using products as per instructions. b.

Keeping bills and guarantee card safely. c.

In case of fault do not repair yourself

d.

Keeping record for all correspondences.

4.

Dr. K. Singaravelu

Dr. M. Sekar CBM College.

I today’s scenario, people in rural and semi urban areas in India are typing to elevate their life style, but people in metropolitan cities are completely disappointed with the public transport system.

Since 1989, the well developed automobile industry has been serving by producing a wide variety of vehicles for various segments of people in India. This leads to the exponential sales of passenger cars system in domestic market

1

.

Reference: Kameshwari. M. L, Kumari A. S. and Reddy D. R. “Consumer behaviour in 2 wheeler industry with special reference to Hero Honda motor bikes.” Indian Journal of marketing volume

XXXV no 10. October 2005.

The automobile industry plays a vital role in the enabling India to attain global leadership among others. It is the largest industry in the world with the revenue of about 1.8 trillion US dollars

2

.

Reference: Rohit saran and Priya Ramani – here comes the recovery,” India today volume 24, issue

34, August 23, 1994.

India has become a hub for automobile market for south Asia. It is nearly six decades old and it helps in developing the Indian economy and also providing income, employment and best services to the public.

Besides it provides 12% employment in manufacturing sector while compared with the countries such as Malaysia 50% Korea 62% and China 31%

3

.

Indian automotive industry: An overview – Automotive mission plan – 2006 2011.

5.

The automobile industry enjoying more than 2 lackhs persons in vehicle manufacturing 2.5 lakhs persons in component companies and more than 10 million at different levels of the vehicles linkages

4

.

Reference - Karl slym “ Promise of huge home market” – the Hindu survey of Indian industry –

2008 PP 160 – 162.

6.

The production of automobile industry in India was 1,05,09,018 units. sales were 97,05,128 and export of passenger cars were 25.4 % during 2006 -2007

5

.

Reference – Dr. S Sakthivel Rani –

“Passenger car industry in India“ ,Indian journal of marketing, Vol XXXVII No 11, November 2008

PP 36 -42.

This makes India as one of the few countries outside of the united states, Europe , Japan and Korea with proven capabilities to design and build automobiles

6

.

Reference – Debabrata Shankar –

7.

“ Maruti swift in top gear 2003 – Besides “India car population on the car is projected to grow at a compounded annual growth rate (CAGR) of 13% for a period 2008 13. ( India : fore cast and analysis

– Global insight September 2007) and penetration of car per 1000 house hold is also projected to rise from 82.3 in 2008 – 2009 to 116.8 in 2012 – 2013 (NCEAR report, August 2007)

7

.

8.

Reference – Tanmay chattpadhyay et al,-

‘Do multiple time consumers also observe imperfectly? : the case of automobiles consumers in India’ –

Indian Journal of Marketing. Vol XXXIX No.6 June 2009, PP 40 - 47.

ROBERTSON 1 In his study on “consumer satisfaction towards after sale service” study revealed the major feed backs of the respondents where that the maintenance charge are moderate/low & their vehicle performance is good and also the majority of the respondent opinion regarding mode of vehicle delivery & after sales service is delayed had also find out mostly to respondent recommended for their vehicle service station. They would suggest ABT & also examined the level of customer satisfaction regarding the service operator’s not good much lower.

LAIRD.E Examines In his study “self concept, ideal self concept and consumer purchase intentions” classified the relative importance of self and ideal self-image to the purchase intention of consumers.

He concludes that self-image and ideal self-image tend to be positively correlated in overall subjects.

The purchase intention of some products tend to be more correlated with self image then with ideal self-image, whereas in some other products the purchase intention tends to be more correlated with ideal self image.

KOTTA

1

attempted to analysis the effect of price, reputation signals and advertising on perceived quality. The research deals with markets where consumer uncertainty regarding product quality exists.

The influence of extrinsic cause viz., Price, reputation of the product and advertising has been investigated in a main experimental setting using multi items measures the results indicated that all the three signals affect consumers quality perception and that they only have a indirect influence on purchase intent.

TICKWELL. PAUL A.M

2

in their research and review (1972-1993) investigated the relationship

between self-images, brand image, and brand loyalty and whether people used products to enhance self image. Significant difference between loyal and non-loyal brands and a high correlation between self and product user rating where found.

PHILIP KOTLAR 1 Principles of marketing “Record share and auto sale”. Customer view of the brand is superior styling, reliability and durability. Fair prices and better assemble good trade in value and relatively few problems. In a word the issue is quality. Many customers are firmly convinced that

(better quality) vehicles are better all around then domestic automobiles. For e g. One of the Honda, strength, according the some analysis, its ability to exceed customer.

Statement of problem:

9.

With more than 6.5 million owners of commercial vehicles, India is the seventh larger country geographical area wise, the second most populous country in the world after China, with a population of one billion, and tenth larger economy in the world, the fourth largest in heavy trucks and the second among the south Asian countries 8 .

Reference www.acmainfo.com

The compounded annual growth rate (CAGR) of Indian automobiles sales will grow at 9.5 % and will touch a mark of 13,000 million by 2010.

10.

According to commerce minister Mr. Kamal Nath (2010) India is an attractive destination for global auto giants such as BMW, GM, Ford and Hyundai, who were setting base in India, despite the absence of specific trade agreements. The country is expected to witness over Rs 30,000 crores of investment by 2010

9

.

11.

Reference – www.indianauto.com

Maruti Udyog Ltd., set the second car plant with a manufacturing capacity of 2.5 lakhs units per annum at an investment of Rs 6500 crores. Hyundai and Tata motors have announced their plans for investing Rs 3800 crores and 2000 crores respectively for their small car projects.

I ROBERTSON HYAZINTH MANUEL“C

ONSUMER RESEARCH ", consumer satisfaction towards after sale service, Journals of consumer research, 1998

2.

LAIRD

.

E

.

LONDON

SELF CONCEPT

” concept and consumer purchase intentions Journals of consumer research (Sep 1974)

Car sales are estimated to jump to 3 million units a year by 2016. Over the next two to three years with the arrival of more than a dozen new brands making compact car models, India will have a plethora of options to choose from.

12.

India is one of the fastest growing car markets in the world. Regarding growth rate, it has a CAGR of about 14 percent. Yet in 2009, car penetration in India was low at 10 per thousand. It was 12 in

Srilanka and 550 – plus in many developed countries. Of course, this provides a huge opportunity to tap a potential market. Car makers are crafting new strategies in rural India

10

.

13. Reference : By Dr. I Sathya sundaram - August 2011, Facts for You – Journal – an EFY group publications. www.ffymag.com.

Facts for You – Journal – An EFY group publications.

By 2016, India will emerge as the world’s Seventh largest car producer (as compared to the eleventh largest currently) and retain the fourth largest position in the world. Further by 2016, the automobile sector would double its contribution to the country’s GDP.

Business line 23.4.2013 Pg. no 3 Last para – Car makers that beat the slowdown

Bucking the trend:

Company Volumes

2012 -13

Growth

Honda

Maruti Suzuki

2011 – 12

54,108

8,55,730

73,182

8,61,337

35

1

Nissan

Renault

32,971

3,301

35,504

12,887

8

290

1. KOTTA T HOMAS L - “E FFECT OF PRICE

” reputation signals and advertising on perceived quality. JOURNAL OF CONSUMER RESEARCH (1992)

2.

Tick well, Paul a. M.Horgon, Dianne d and Keeny Charles, t “R

ESEARCH

AND REVIEW

SELF images, BRAND IMAGE , AND BRAND LOYAL journal of

3. consumer research (1992) OF marketing” “Record share and auto sale”

There was silver lining amid the gloom for companies such as Maruti Suzuki, Honda, Nissan, and

Renault. They are the car makers that bucked the trend selling more cars in 2012 – 2013 than previous year.

Thanks to Dzire, the ‘super compact’ segment was the only segment where volume rose in 2012 –

2013 – micro, mini, compact, mid size, executive, premium and luxury – took a beating.

Honda was another company that bucked the trend. Its sales volumes grew by 35 percent in 2012 – 13 helped by small cars such as Jazz and Brio.

For Nissan and Renault, new launches with diesel variants helped to keep sales ticking.

Development of tyre production:

1.

Tyre with cotton

2.

Tyre with Rayon

3.

Tyre with Nylon

4.

Radial tyre

5.

Tube less tyre: The concept of tubeless tyre in cross ply construction, which uses an inner liner compound based on chlorobutyl or halobutyl that is impermeable to gases, was introduced eliminating the usage of tubes. This concept could not find sustained application in India due to bad road: and poor handling/ maintenance of rims other than in the OTR range. However, tubeless tyres are produced for export market. Gradually, this concept will become fully acceptable with the advent of new – generation vehicles and improved service facilities.

6.

Green tyre (environmental friendly): This is the latest development in passenger radial tyres.

These tyres have a rolling resistance appreciably lower than normal tyres. They have a high proportion of non – petroleum – based material used in their construction and are called environment friendly or green tyres. This concept is well perceived and will gradually find applications world over including India.

Ref Dr. Maheskumar – Facts for You journal – April 2010. Lecturer in commerce, sengunthar arts and science college, tiruchengode, Namakkal.

Indian Automobile on a progressive path – November 2011

The Indian automobile sector is expected to grow to $216 billion by 2016 and add 2.5 million new jobs in the economy.

The government is also giving some concessions to the auto industry. To realize the above growth predictions it is important to overcome various challenges like spiraling cost of fuel and the paucity of highly skilled man power that the industry is facing currently.

The Hindu - Thursday – 2 nd May 2013-

BMW’s 7-series has always been a strong contender in the luxury saloon segment. However, the current model does have certain shortcomings and the German giant has addressed these issues with the latest avatar, which is launched today (2 nd

May 2013).

In India the 730Ld costs Rs 92.90 lakhs (ex-show-room) the 740 Li is for 1.12 crores, the 750

Li for Rs 1.29 crores and the 760 Li for Rs 1.73 crores.

While the diesel’s power has been slightly bumped up, the petrol BMW claims, has made 21 percent more efficient.

Business line - Auto Focus :

May 1 2013 – Buyers Guide – S. Muralidhar All of us need a shot of adrenaline every now and then. The market for premium hatch backs is currently in that drained out stage, when picking out a niche that is emerging will be like that much needed boost.

But the last few weeks have seen manufacturers picking from their existing portfolio of cars and just slapping-on new stickers and spoilers in an attempt at creating new variants. The game has focused on offering buyers more value and features for the same price in a market that has been sliding.

Volkswagen has instead gone a step further and attempt to woo buyers with a serious upgrade.

What we are talking about is the new Polo GT TSI. The nomenclature is very indicative of what the bonnet hides, which is basically a turbo engine. What the name is also very indicative of is the fact that VW is hoping to deliver a hot-hatch in the Polo.

Performance:

What is P R N D 2 L?

Indicates gear positions of the automatic transmission; P=Park, R=Reverse, N=Neutral, D=Drive

(transmission will automatically shift through all forward gears), 2=2nd gear (transmission will only shift from

Low to 2nd gear), L=Low gear.

Little known fact: In the auto business the indicator that displays this information is actually referred to as the

"PRENDELO."

Bottom line:

The new Polo GT TSI will be launched before this issue reaches you. The price is likely to be about

6.6 lakhs. It will be finally a hot hatch that you can buy for more than one reason, and with much less guilt.

Technical specifications:

Particulars

Engine type

Capacity

Bore x stroke

Max output

Gearbox

Max torque

Power to weight

Kerb Weight

Ground clearance

Tyre size

Fuel consumption

Price ( Ex-show room)

168 mm

VW Polo GT TSI

TSI – 4 – cylinder

1.2- litre/ 1,197cc

71 *75.6 mm

105 PS @5,000 rpm

7 speed DSG transmission

175 Nm,=@1,500 – 4,100 rpm

92 PS per tone

1,140 Kgs

185 / 60 R15

17.2 kmpl (ARAI rated)

Rs 6.6 Lakh (Expected)

VW Polo 1.2L Highline

3 – Cylinder, in line.

1,198cc

NA

75 PS@5,400 rpm

5 speed manual

110 Nm@ 3,750 rpm

70.8 PS Per tone

1,055 Kgs

168 mm

185 / 60 R15

16.47 kmpl

Rs 5.9 Lakh

Mercedes – Benz India:

Mercedes – Benz India recently flagged of the second level of its AMG Driving academy the advanced Training, at the Buddh international circuit in Greater Noida.

During the basic training programme the drivers are taught the techniques of reacting safely and confidently at the wheel of the high performing Mercedes – Benz AMG vehicles under extreme conditions.

Expert drivers from AMG driving academy, Germany, to perfect the challenging cornering techniques and learn how to gain better control of the performance vehicles on the world class race track.

The advanced course is priced at 1 lakh rupees for a two day training programme at Buddh international circuit. This training module will comprise driving the high performance AMG vehicles like the C 63 AMG, E 63 AMG and the SLS AMG, from the Mercedes – Benz stable.

Business standard: Tuesday, 30 th

April 2013 – page 3

Volkswagen bearish on growth:

Last year, German car maker Volkswagen, recorded its worst slide in sales since debuting in

India six years earlier with no green shoots visible in the economy, the company predicts no growth in sales this year, too, with a limited line of products in the volume segment, coupled withstrong competition, the company has struggled to grow its sales for several months.

In 2012 -13, sales fell 16 percent to 65,465 units as compared to the previous year, the industry average was a two percent growth.

Aravind Saxena, Managing Director, Volkswagen Passenger car, Volkswagen group sales

India, said, “The first three months of the calendar year have not shown any positiveness. There are no signs that things have changed. I don’t expect the market to really grow this year, as thing stand today”.

Volkswagen launched an expensive variant today of the Polo hatchback, named Polo GT TSI, at 7.99 lakh (ex-showroom, Delhi)

Business standard: Tuesday, 30 th

April 2013 – page 9.

Road ahead:

Over the next four years, Fiat will launch as many as 12 models, including five brandnew products. The rest will be ‘refreshes’ and upgrade of existing and new models. The number of launches will exceed what the Italian company had managed during the time it was in marketing and sales partnership with Tata motors.

The company will also launch three compact SUVs, of which two will be under the Jeep brand again. Renault Duster, Mahindra’s Scorpio and XUV500, and Tata’s Safari to name a few.

Fiat will use the Ranjajgaon facility near Pune, a 50/50 joint venture between Fiat India

Automobile and Tata motors, to produce some of the local parts for the jeep.

Fiat owns some of the most exquisite automotive brand globally: Ferrari, Meserati and Alfa

Romeo, for example, in addition to the Chrysler brands. However experts say it is not the investment or the company’s background that matters to consumers – when deciding on a car, it is the promise of the brand they care about.

V. G. Ramakrishnan, Managing Director, Frost and Sullivan, South Asia, says, “It is important that Fiat wins the consumers trust these needs to be a programme to communicate to the consumer that it is here for long.

SOME PROBLEM:

Business standard: Tuesday, 30 th

April 2013 – page 13.

Nissan, Honda recall thousands of cars:

Nissan said there were no reports of accidents or injuries related to the issue. About 2000 cars are affected by the recall in Canada and another 43,782 in the U. S Honda said.

The problem with Nissan cars was discovered by a dealer and an investigation by the company found the problem caused by a malfunctioning pressure regulators at its Canton,

Mississippi, plant National Highway Traffic Safety Administration (NHTSA) said.

Profile:BMW

Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position. The company’s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‘best’ in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the world’s largest luxury car maker.

BMW’s focus on engineering excellence allied to leading-edge design continues to drive successful, profitable expansion. In 2007 BMW sales increased by 8%, Mini by 18% and Rolls-

Royce by 26% with, for the first time ever, over 1000 of the super luxury cars being produced in one year. To further this growth, a host of new models is being launched, including the Mini Clubman and the new sport utility vehicle, the BMW X6 - the world’s first SUV coupe. While the Clubman reinvents views on vehicle access, the X6 is an excellent example of BMW innovation at work. It combines the safety and convenience of a four-wheel-drive with the on-road performance of a sports car and is designed to appeal to the driver who enjoys a commanding driving position, but also savours the characteristics of a sports car. With its stretched coupé silhouette and pronounced performance design, underpinned by hybrid engine options, as previously achieved with the X5 and the X3 in allied markets, the X6 is the latest instance of BMW changing perceptions of what a car should provide – for its passengers and its driver alike. At its heart, it restates an aspiration for driving that is both exclusive and yet also available to the mass market.

The Porsche legend

What makes a manufacturer of Sports Cars so special that people even go so far as to talk about the "Porsche legend"?

The history of our company is certainly a major factor. It is a combination of major success in motor sports and Sports Cars that are suitable for everyday road use worldwide. It is not something that only exists in our museum – it is very much alive.

History is written by people. For example, by Ferdinand Porsche who established an engineering office in Stuttgart in the 1930s, laying the foundation for the company. Cars with sporty genes were designed there as early as 1931. After his son Ferry Porsche took over, this idea was carried forward and evolved into the Porsche 356. The first Sports Car to carry the Porsche name was manufactured as a production model from 1950 onwards in Zuffen hausen. From 1964 onwards, the

356 was replaced by another classic: the Porsche 911. Porsche officially launched the 7th generation of the Sports Car icon at the 64th International Motor Show (IAA) in Frankfurt/Main in 2011.

Generation Porsche

Every year, a lot of young people start their training or a dual course of study at the Porsche

Training Centre in Zuffen hausen.

They work together on their "Porsche future". A secure future: all trainees at Porsche receive a permanent contract at the end of their training.

In the coming years, we are increasing the number of apprenticeship places gradually to a total of

150.

Mercedes-Benz India

Since September 1902, DMG has the patent-protected, brand name "Mercedes.”. Gottlieb

Daimler's sons, Paul and Adolf, recalled that their father had previously used a three-pointed star as a symbol.

Gottlieb Daimler who was the Technical Director of Deutz Gasmotorenfabrik from 1872 to

1881 marked his house on a picture of Cologne and Deutz with a three-pointed star. He predicted to his wife that this star would one day rise gloriously above his production plant.

In 1909, the DMG Board of Management seized on this prediction and registered both a three-pointed and four-pointed star as trademarks. Both logos were legally protected but it was the three-pointed star that was ultimately used. A three-dimensional star featured on the front radiator of vehicles from 1910 onwards.

In November 1921, DMG applied for protection of utility patents for new variants of its brand logo and registered a three-dimensional three-pointed star enclosed in a circle at the patent office - including a design for the radiator grille.

Company History

When Gottlieb Daimler and Karl Benz invented the high-speed engine and the automobile independently of each other in the 1880s, they laid the foundations for motorised private transport.

With the help of financial backers and partners, both engineers carried out private development work at their own companies. Benz founded Benz & Co. Rheinische Gasmotoren-Fabrik in Mannheim in

October 1883; the Daimler-Motoren-Gesellschaft (DMG) was founded in Cannstatt in November

1890. Both companies wanted to come up with a memorable trademark to make their products both distinctive and familiar. Initially they opted for their own names – Benz and Daimler - to represent the origins and quality of their engines and vehicles. The Benz & Cie. trademark did not change

(though the gearwheel used in 1903 was replaced by a laurel wreath encircling the Benz name from

1909). However, the products of DMG appeared under the new brand name Mercedes at the turn of the century.

Company Founder(s)

Karl Benz was the founder of Mercedes-Benz. He was the son of Josephine and Johann Georg

Benz. Josephine gave birth to Karl on 25 November 1844 at a guesthouse at Rheinstrasse 22 in the

Muhlburg district of Karlsruhe and married Johann Georg one year later in 1845. Karl’s father died

when Karl was two years old and so his mother had to provide board and lodging to students to finance her son’s studies.

Karl attended scientific grammar school in Karlsruhe and at 15 years of age pass the examination for a polytechnic school. In 1864, he completed his studies and began working as a mechanic. He married Bertha Ringer on 20 July 1872. Then three years later, he built a three-wheeler and filed a patent for it on 29 January 1886. This was considered as the birth certificate of the automobile. Karl died in 1929.

Volkswagen

Volkswagen AG is a Germany-based automobile manufacturer. The Company develops vehicles and components, and also produces and sells vehicles, in particular Volkswagen brand passenger cars and commercial vehicles. The Company consists of two divisions: Automotive and

Financial Services division. The Automotive division is responsible for the development of vehicles and engines, the production and sale of passenger cars, commercial vehicles, trucks and buses, and the genuine parts business. The Financial services division's portfolio of services includes dealer and customer services in the field of financing, leasing, direct bank, insurance and fleet business. The

Company's brands include Volkswagen, Audi, Bentley, Bugatti, Lamborghini, SEAT, Skoda, Scania and Volkswagen Commercial Vehicles and each brand offers a product range from low-consumption small cars to luxury class vehicles, as well as pick ups, busses and heavy trucks in the commercial vehicle sector.

Nissan Motor Co Ltd

NISSAN MOTOR CO., LTD. is a Japan-based company primarily engaged in the manufacture and sell of automobiles. The Company has two business segments. The Automobile segment manufactures and sells vehicles, forklifts, marine products and accessories. The Sales

Financing segment is engaged in the provision of sales financing services. As of March 31, 2012, the

Company has 199 subsidiaries and 25 associated companies. In August 2011, the Company established a Kyusyu-based company. On March 22, 2012, the Company fully acquired Aichi

Machine Industry Co., Ltd., which is engaged in the development, manufacturing, sale of engine and manual transmission in Nagoya, Japan.

Toyota Motor Corp

TOYOTA MOTOR CORPORATION is a Japan-based company mainly engaged in the automobile business and financial business. The Company operates through three business segments.

The Automobile segment is engaged in the design, manufacture and sale of car products, including sedans, minivans, 2BOX cars, sport-utility vehicles and trucks, as well as the related parts and accessories. The Finance segment is involved in the provision of financial services related to the sale of the Company's products, as well as the leasing of vehicles and equipment. The Others segment is involved in the design, manufacture and sale of housings, as well as the information and communication business. As of March 31, 2012, the Company had 507 subsidiaries and 212 associated companies.

Mitsubishi:

As an international company, Mitsubishi has a virtually unlimited number of resources. These connections enable us to incorporate the latest technologies into every product that we produce.

It is our goal to design and develop injection molding machines that are not only compatible with your ever-changing and technologically demanding needs, but that are accurate, efficient and easy to use.

Our molding and technical service specialists and in-house engineers can find important ways to save you money through mold test data evaluations and their knowledge of how much you can get out of your Mitsubishi machine.

Our more than 40 years of experience can be seen in today's Mitusbishi Injection Molding machines. They include leading edge technology and superior performance which belong in plastics molding facilities where precision, energy-savings and maximum productivity are critical to your success.

Tata motors

Company Profile

Tata Motors Limited is India's largest automobile company, with consolidated revenues of

INR 1,65,654 crores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.

The Tata Motors Group's over 55,000 employees are guided by the mission "to be passionate in anticipating and providing the best vehicles and experiences that excite our customers globally."

Established in 1945, Tata Motors' presence cuts across the length and breadth of India. Over

7.5 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. The company's manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow

(Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group

Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and Tata cars and Fiat powertrains.

The company's dealership, sales, services and spare parts network comprises over 3,500 touch points.

Tata Motors is also expanding its international footprint, established through exports since

1961. The company's commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia, South Asia, South America, CIS and

Russia. It has franchisee/joint venture assembly operations in Bangladesh, Ukraine, and Senegal.Tata

Motors also introduced India's first Sports Utility Vehicle in 1991 and, in 1998, the Tata Indica,

India's first fully indigenous passenger car.Tata Motors is committed to improving the quality of life of communities by working on four thrust areas - employability, education, health and environment.

Through its subsidiaries, the company is engaged in engineering and automotive solutions, automotive vehicle components manufacturing and supply chain activities, vehicle financing, and machine tools and factory automation solutions.

With the foundation of its rich heritage, Tata Motors today is etching a refulgent future.

Honda

Honda Cars India Ltd., (HCIL) is a leading manufacturer of premium cars in India. The company was established in 1995 with a commitment to provide Honda’s latest passenger car models and technologies, to the Indian customers. The company is a subsidiary of Honda Motor Co. Ltd.,

Japan.

HCIL’s first manufacturing unit was set up at Greater Noida, U.P in 1997. The green field project is spread across 150 acres and has an annual production capacity of 100,000 units. The company’s second manufacturing facility is in Tapukara, Rajasthan. This facility is spread over 450 acres and currently has a state-of the art Power train and Press shop. The first phase of this facility was inaugurated in September 2008.

The company’s product range includes Honda Brio, Honda Amaze, Honda City, Honda

Accord and Honda CR-V which are produced at the Greater Noida facility. Honda’s models are strongly associated with advanced design and technology, apart from the established qualities of durability, reliability and fuel-efficiency.

Chevrolet

Chevrolet, also known as Chevy, is a division of General Motors (GM) that was founded by

Louis Chevrolet, a race-car driver, and William C. Durant, founder of General Motors, in 1911

(Wikipedia, 2008). With a dramatic influence on the American automobile market in the 1950s and

1960s, one out of ten cars sold in the United States was a Chevy (Wikipedia, 2008). Chevrolet created an image of being the American vehicle by using slogans such as, “Heartbeat of America”,

“An American Revolution”, and “America’s Best Trucks” (Wikipedia, 2008). As of today, Chevy offers over twenty vehicles ranging from subcompact cars to medium duty commercial trucks in addition to being offered in Europe and Asia (Wikipedia, 2008). The automotive industry is highly competitive and Chevy has faired well against its competitors. The main domestic and foreign competitors for Chevy include Ford and Toyota, respectively. In order to meet consumer demands and rise above its competitors, Chevrolet has devised new strategic planning.

Chevrolet has devised new corporate strategies in order to rise above the competition in the automotive industry. With the economic decline and concern for the environment, Chevy has been able to address current and future issues to not only benefit the company but also the economy and the environment as well. There are four key points that have been addressed with the new

strategy. The first associated with the increasing gas prices and economic decline and the second issue addressing the increase in environmental awareness and concern, both leading to the development of hybrid, electric, and fuel cell vehicles in addition to the use of bio fuels (Chevrolet,

2008). Chevy has also addressed the increase in environmental awareness by manufacturing parts from recyclable and renewable materials (Chevrolet, 2008). The third key point addressed was with the change in consumer demands for a more efficient vehicle.

Hyundai

Hyundai Corporation, Korea’s leading general trading house, provides international trade and distribution services for a wide range of products, including steel, heavy machinery, ships, industrial plants, automobiles, electrical and electronic equipment, and basic commodities.

In addition to export and trading, Hyundai Corporation has achieved remarkable success through investing in energy resource development projects in Asia and the Middle East.

Hyundai Corporation has 34 years of experience in global trades, solid financing capabilities, and unparalleled regional and local expertise through our network of nearly forty offices worldwide.

In recent years, Hyundai Corporation has further diversified its business portfolio by expanding into new businesses. Notably, it has become a world-class player in the shipbuilding industry by establishing Qingdao Hyundai Shipbuilding, a Chinese subsidiary specializing in the construction of mid-sized commercial vessels. Hyundai Corporation is also working with select partners to bring Hyundai-branded electronics and other consumer products to households worldwide, and has seen remarkable growth in the sale of mobile phones, digital cameras, and home audio/video systems.

At the end of 2009, Hyundai Corporation became an affiliate of Hyundai Heavy Industries, the world’s undisputed leader in shipbuilding, heavy equipment, and emerging technologies such as solar and wind power. Hyundai Corporation is now well-poised to become one of the world’s top solutions providers for any number of commercial and industrial needs, with resources, sector and regional expertise, and individual talents second to none.

Renault

In Renault's road race against rival Peugeot Citron to be France's dominant automaker, second place will have to deux. Renault manufactures and markets small to midsize cars and light trucks under three brands: Renault, Dacia, and Renault Samsung Motors (Renault holds 80%, Samsung

20%). The company owns Automobile Dacia (Romania's leading automaker) and holds just under half of the Renault-Nissan Alliance (and 43% of Nissan). It also participates in an alliance with

Russian car maker AvtoVAZ and helps Germany's Daimler build smart cars. Renault, which has become an international brand, operates nearly 40 manufacturing facilities in more than 15 countries and sells into 118 nations.

Skoda

In 1895 Laurin and Klement founded Skoda, a Czech automaker, whose headquarters are located at Mlada Boleslav, in the Central Bohemiam Region of the Czech Republic. It is a private company and a subsidiary of the Volkswagen Group, a German automobile manufacturing group.

The Company was founded because Laurin and KIement had a mutual love for bicycles and they wanted to form their own company that would manufacture and repair cycles. But, Skoda produced its first cars in 1905.

Skoda’s Chairman is Winfried Vahland and the Chairman of the Supervisory Board is

Martin Winterkorn. Mr. Vahland was appointed Chairman of the Board of Directors of Skoda on

September 1st, 2010 replacing Reinhard Jung, the former President of Volkswagen Mexico who held the position for three years. Mr.Winterkorn, a professor-turned-chairman, praised Mr. Jung. He said

Jung was instrumental in developing the “traditional Skoda brand.” But, he applauded Mr. Vahland even more vehemently saying, “Winfried Vahland has been instrumental in making China

Volkswagen’s second home market.”

Skoda sold 6,84,226 cars in 2009. However, this figure was global and the Indian market failed to show sales growth as it found that in 2009, it had grown only by single digits, much lower than the 38% registered growth in 2008 –16,200 cars in the Indian market. Laura and Octavia are the super-sellers in the Indian market while Fabia trails behind just a little at a figure of 7,000 cars. The company’s sales figures increased primarily due to the Octavia which had sales figures of 2,73,590 cars in 2009. Another successful model in 2009 was the Skoda Fabia.

Václav Laurin, a mechanic and Václav Klement, a book-seller, had manufactured bicycles, later producing motorcycles and ultimately producing cars. They founded a company called the

Laurin and Klement Company in 1895 which manufactured bicycles, motorcycles and automobiles.

The company grew and they had 12 employees later on. Car production commenced in 1905.

Audi

The Audi India strategy encompasses significant investments in branding, marketing, exclusive dealerships and after sales service for the upcoming years. At present, Audi is assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad. Local production of the Audi A6 started at the end of 2007 and of the Audi A4 in early October 2008.

AUDI AG develops and produces luxury cars and sold worldwide a total of 1,003,000 cars in

2008. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Györ (Hungary), Changchun

(China) and Brussels (Belgium). The company is active in more than 100 markets worldwide. AUDI

AG’s wholly owned subsidiaries include Automobili Lamborghini Holding S.p.A. in Sant’Agata

Bolognese (Italy) and Quattro GmbH in Neckarsulm.

Audi currently employs around 57,000 people worldwide, including 45,000 in Germany. It invests more than €2 billion each year. Audi plans to significantly increase the number of models in its portfolio by 2015 to 40. The Audi brand celebrates its 100th birthday in 2009.

Audi is a subsidiary of Volkswagen. As a manufacturer of high-quality luxury cars, Audi is one of the world’s leading premium brands. It is represented in 110 countries worldwide and has been selling cars in India since 2004. These were imported into the country by dealers without being homologated. In March 2007, Audi established a formal presence in India with Audi India being a division of Volkswagen Group Sales India Pvt. Ltd.

In 1964, Volkswagen bought 50% stake in the company and in 1969, Auto Union merged with NSU. In 1985, with the Auto Union and NSU brands effectively dead, the company's official name was shortened to simply Audi AG and the company manufactured many different types of engines and cars in the following years.

For 2011, Audi India will continue to expand its product lineup with the launch of its new

Audi A8 L which will be followed by the new Audi A6 later in the year.

Maruti Suzuki

Maruti Suzuki India Limited (MSIL) is primarily in the business of manufacture, purchase and sale of motor vehicles and spare parts (automobiles). The other activities of the Company consist of facilitation of pre-owned car sales, fleet management and car financing. The Company offers a range of cars across different segments. It offers 14 models with over 200 variants across the industry segments like Passenger cars, utility vehicles and vans. The Company has five plants in the Gurgaon and Manesar areas of Haryana equip Maruti Suzuki with a production capability of 1.55 million units per annum. The Company passenger car include Alto, Alto-K10, A-star, WagonR, Swift, Ritz and

Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. During the fiscal year ended March 31, 2012 (fiscal 2012), the Company sold over 1.13 million vehicles, including

127,379 units of exports. The Company is a subsidiary of Suzuki Motor Corporation.

Volvo

AB Volvo is a Sweden-based supplier of commercial transport solutions providing products, such as trucks, buses, construction equipment, engines and drive systems for boats and industrial applications, industrial engines and systems, industrial information technology (IT) solutions, logistics solutions, aircraft engine components, as well as services and support, such as roadside assistance, fuel management and driver training. The Company also offers its customers financial solutions. The Company operates nine business segments, namely Volvo Trucks, Renault Trucks,

North American Trucks, Trucks Asia, Buses, Construction Equipment, Volvo Penta, Volvo Aero and

Customer Finance, and has five business units: Volvo Powertrain, Volvo 3P, Volvo IT , Volvo

Logistics and Volvo Parts. The Company operates production facilities in 20 countries and sales facilities in more than 190 markets. It sells its products in Europe (39%), Asia (24%) and North

America (19%).

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