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Introduction to the Industry
1.1 Indian Automotive Industry
Indian automotive industry globally is among the top ten. With an annual production of over
two million units and providing employment opportunities to more than 13 million people,
the automobile industry in India achieved a turnover of US $34 billion (INR 165000 crores).
Currently, the installed production capacity of automobile industry in India is 9.54 million
vehicles annually comprising around 7.95 million 2/3 wheelers and 1.59 million 4-wheelers.
India at present is the largest manufacturer of tractors, second largest manufacturer of 2-
wheelers and fifth in manufacturing commercial vehicles. India ranks fourth in Asia in terms
of passenger car market and is the head-quarter of the world’s largest 2-wheeler
manufacturer. India now has:
9 manufacturers of commercial vehicles;
15 passenger and multi-utility car manufacturers;
14 manufacturers of 2/3 wheelers;
14 number of tractor manufacturers;
5 automobile engine manufacturers.
The growth of the automobile industry has encouraged world automotive giants in setting
up operation in India. Presently there are eleven multi-national automobile manufacturing
companies operating in India.
1.2 Major Indian automobile manufacturers
The major Indian automotive industries are:
1) Tata Motors – Tata Motors previously called TELCO is a leading manufacturer of both
commercial and passenger 4 wheelers and goods carriers. Indica, Indigo, Sumo, and Safari
are few of its passenger car models.
2) Ashok Leyland – Ashok Leyland, is an automobile major specialized in manufacturing
commercial passenger and goods vehicles. Viking and Cheetah are notable commercial
passenger vehicle models, while Comet Tractor is a widely acclaimed goods carrier model.
3) Mahindra and Mahindra – Mahindra & Mahindra is a manufacturer of sports utility
vehicles, light commercial vehicles, and tractors. Scorpio is a popular sports utility
automobile, while Bhoomiputra is a renowned tractor model.
4)Maruti Suzuki – This premier car manufacturer caters to all sectors of the Indian car
market. Maruti 800 and Alto are economy models, D-Zire their up-market luxury car model,
and Grand Vitara a sports utility vehicle model.
5)Hindustan Motors Limited – This pioneering automobile industry in India manufactures
Ambassador brand of passenger cars. It also sells Mitsubishi and Chevrolet vehicles in
India.
6) Force Motors – Force Motors manufactures 3 wheelers, tractors, light commercial and
multi-utility vehicles.
7) Bajaj Auto – Bajaj Auto is a leading manufacturer of motor cycles, scooters, and three
wheelers. Bajaj Pulsar is a leading motorcycle model, and Kristal –DTSi is a widely
accepted model of scooter.
8) Hero Honda – Hero group is synonymous with 2-wheelers in India. Splendor Plus and
Ambition are popular motor cycle models manufactured by HeroHonda. Their range of
bicycles is widely acclaimed throughout India
Fiat, BMW, Ford Motors, Hyundai, General Motors, and Honda are some of the
international companies with operations in India.
1.3 Automobile (Car) industry in India
The automobile industry in India—the tenth largest in the world with an annual production
of approximately 2 million units—is expected to become one of the major global automotive
industries in the coming years.[2] A number of domestic companies produce automobiles in
India and the growing presence of multinational investment, too, has led to an increase in
overall growth.[3] Following the economic reforms of 1991 the Indian automotive industry
has demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions.[3] The monthly sales of passenger cars in India exceed 100,000 units. [4]
1.3.1 History
In 1953, the government of India and the Indian private sector initiated manufacturing
processes to help develop the automobile industry, which had emerged by the 1940s in a
nascent form.[8] Between 1970 to the economic liberalization of 1991, the automobile
industry continued to grow at a slow pace due to the many government restrictions.[8] A
number of Indian manufactures appeared between1970-1980.[8] Japanese manufacturers
entered the Indian market ultimately leading to the establishment of Maruti Udyog. [8] A
number of foreign firms initiated joint ventures with Indian companies.[8]
1.3.2 Snippets
· The first automobile in India rolled in 1897 in Bombay.
· India is being recognized as potential emerging auto market.
· Foreign players are adding to their investments in Indian auto industry.
· Within two-wheelers, motorcycles contribute 80% of the segment size.
· Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
· Tata Motors dominates over 60% of the Indian commercial vehicle market.
· 2/3rd of auto component production is consumed directly by OEMs.
· India is the largest three-wheeler market in the world.
· India is the largest two-wheeler manufacturer in the world.
· India is the second largest tractor manufacturer in the world.
· India is the fifth largest commercial vehicle manufacturer in the world.
· The number one global motorcycle manufacturer is in India.
· India is the fourth largest car market in Asia - recently crossed the 1 million mark.
1.3.3 Timeline of Indian automobile industry:
1905 Fiat Motors
1911 First Taxi in India
1924 Formation of traffic police
1928 Chevrolet Motors
1942 Hindustan Motors
1944 Premier Auto Limited
1945 Tata Motors
1947 Mahindra Motors
1948 Ashok Motors
1948 Standard Motors
1974 Sipani Motors
1981 Maruti Suzuki
1994 Rover Motors
1994 Mercedes Benz
1994 Opel
1995 Ford Motors
1995 Honda SIEL
1995 Reva Electric Car Company
1995 Daewoo Motors
1996 Hyundai Motor Company
1997 Toyota Kirloskar Motors
1997 Fiat Motors (Re-Entry)
1998 San Motors
1998 Mitsubishi Motors
2001 Škoda Auto
2003 Chevrolet
2005 BMW
2007 Audi
2009 Land rover and jaguar
Following the economic reforms of 1991, the automobile section underwent delicensing and
opened up for 100 percent foreign direct investment(FDI).[3] A surge in economic growth
rate and purchasing power led to growth in the Indian automobile industry, which grew at a
rate of 17% on an average since the economic reforms of 1991. [3] The industry provided
employment to a total of 13.1 million people as of 2006-07, which includes direct and
indirect employment.[3] The export sector grew at a rate of 30% per year during early 21st
century.[3] However, the overall contribution of automobile industry in India to the world
remains low as of 2007.[3] Increased presence of multiple automobile manufacturers has led
to market competitiveness and availability of options at competitive costs.[3] India was one
of the largest manufacturers of tractors in the world in 2005-06, when it produced 2,93,000
units.[3] India is also largely self-sufficient in tyre production, which it also exports to over 60
other countries.[3] India produced 6.5 crore tyres in 2005-06.[3]
1.3.4 Overview
India’s car market has emerged as one of the fastest growing in the world. The number of
cars sold domestically is projected to double by 2010, and domestic production is
skyrocketing as foreign makers are setting up their own production plants in India. The
government’s 10-year plan aims to create a $145 billion auto industry by 2016.
According to McKinsey & Company, the auto sector’s drive to lower costs will push
outsourcing. The auto sector could be worth $375 billion by 2015, up from $65 billion in
2002. McKinsey thinks India could capture $25 billion of this amount. Out of 400 Indian
suppliers, 80 percent have the ISO 9000 certificate—the international standard for quality
management.
The production of automobiles in India is largely aimed at local consumers. [10] Several
Indian manufacturers also export a diverse variety of auto components.[11] Tiku (2008)
predicts a sale of 42 lakhs four wheeler automobiles in India by 2015.[12] Indian passenger
vehicle exports are also expected to rise from 1,70,000 in 2006 to 5,00,000 in 2010.[11]
The following links gives the complete picture of Indian Auto
Industry
Automobile
History
The first auto vehicle rolled out in India at the end of 19th century.
Today, India is the 2nd largest tractor and 5th largest commercial
vehicle manufacturer in the world. Hero Honda with 1.7M motorcycles
a year is now the largest motorcycle manufacturer in the world.
Industry
Investment
On the cost front, OEMs eyeing India in a big way to source products
and components at significant discounts to home market. On the
revenue side, OEMs are active in the booming passenger car market in
India.
Industry Growth The passenger car and motorcycle segment in Indian auto market is
growing by 8-9 per cent. The two-wheeler segment will clock 11.5%
rise by 2007. Commercial vehicle to grow by 5.2 per cent.
Vehicle
Production
India is the 11th largest Passenger Cars producing countries in the world
and 4th largest in Heavy Trucks. Maruti Udyog Ltd. is the leading 4-
wheelers manufacturer. Hero Honda is the leading 2-wheelers
manufacturer.
Auto Export Passenger vehicle exports have grown over five times and two-wheeler
exports have reached more than double. Exports of auto components,
whose manufacturing costs are 30-40 per cent lower than in the West,
have grown at 25% a year between 2000 to 2005.
Auto Companies Hero Honda is the largest manufacturer of motorcycles. Hyundai Motors
India is the second largest player in passenger car market. Tata Motors
is the fifth largest medium & heavy commercial vehicle manufacturer in
the world.
Vehicle
Distribution
Know about the number of vehicles registered as Transport or Non-
Transport in the Indian states and Union Territories.
Associations Get all the contact details of Automobile Association of Upper India
(AAUI), Automotive Research Association of India (ARAI),
Automobile Association of Southern India (AASI), Automotive
Component Manufacturers Association of India (ACMA) and more
1.3.5 Exports
A number of car plants in India export some of their cars from there to generate greater
volumes of production in order to achieve the economies of scale and be profitable. These
are:
Tata Motors - exports Tata Safari, Indigo Marina
Mahindra & Mahindra – Scorpio, Xylo
Maruti Suzuki - exports Suzuki Alto, Maruti 800, Suzuki Omni, Wagon R and Zen Estilo
Hyundai Motor Company - exports Hyundai Santro, Verna i10, Hyundai Getz, i20 and
Hyundai Accent - 42% of its India production
Government has liberalized the norms for foreign investment and import of technology and
that appears to have benefited the automobile sector. The production of total vehicles
increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the
production of such vehicles will exceed 10 million in the next couple of years.
The industry has adopted the global standards and this was manifested in the increasing
exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports
registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to
exceed two and- ahalf times the export figure for 2001-02.
The Indian automotive export industry presently is finding a good recognition globally. The
auto industry along with the component industry is contributing to the export effort of the
country. In 2002-03, the export of the automobile industry had registered a growth rate of
65.35%. In 2003-04, it was 55.98%. The following table briefs about the 2003-04 and 2004-
05 (upto April-Dec. 2004) automobile export in numbers.
Category 1998-99 2004-05 (Apr-Dec)
Passenger Car 25468 121478
Multi Utility Vehicles 2654 3892
Commercial Vehicles 10108 19931
Two Wheelers 100002 256765
Three Wheelers 21138 51535
Percentage Growth -16.6 32.8
Export of Auto Components:
Investments in the auto ancillary sector are rising rapidly. In 1997, the size of the auto
component industry was US$ 2.4 billion and now in 2004-05 it has become US$ 8.7 billion
industry. The export of auto components has grown at a compounded growth rate of 19 per
cent over the past six years.
Analysis of Indian Exports:
Strengths
Cost competitiveness in terms of labor and raw material.
Established manufacturing base. Economics of scale due to domestic
market.
Potential to harness global brand image of the parent company.
Weakness
Perception about quality.
Infrastructure bottlenecks.
Opportunitie
s
Huge export markets such as Europe, America, Africa, and others for
Indian cars.
Threats
China, Malaysia, Thailand, etc.
Many other countries also have strategies for export promotion.
Export Imperatives:
Internal Factors:
Attaining high quality for global standards.
Continuous cost reduction for global competitiveness.
Supply chain management (logistics).
Attaining economies of scale & scope.
External Factors:
Improve infrastructure (ports, roads, etc). Improve EXIM regulation
1.3.6 Indian automobile companies
The following are some of the notable Indian automobile manufacturers which has long fleet
of cars:
Company Description Product
Ashok
Leyland
Ashok Leyland is a commercial
vehicle manufacturing company
based in Chennai, India. In 1948,
Ashok Motors was set up in what was
then Madras, for the assembly of
Austin Cars. The Company's name
changed soon with equity
participation by British Leyland and
Ashok Leyland commenced
manufacture of commercial vehicles
in 1955. Ashok Leyland has six
manufacturing plants: a plant at
Ennore near Chennai, two plants at
Hosur (called Hosur I and Hosur II,
along with a press shop), and the
assembly plants at Alwar and
Bhandara.
18 seater to 82 seater double-decker
buses, 7.5 tonne to 49 tonne in
haulage vehicles, special application
vehicles, and diesel engines for
industrial, marine and genset
applications.
Force Motors Force Motors, formerly Bajaj Tempo,
is a Pune-based manufacturer of a
number of commercial vehicles
Gas-cylinder carrier, copied from 3-
wheel Vidal & Sohn Tempo-Werke
(German) Hanseat; Matador, a
version of Hanomag van and light-
truck (1.5 tonne payload); Tempo-
traveller, Indian version of Daimler-
Benz T-1 transporter; Man-Force
Trucks, licensed version of MAN AG
trucks; and UV's copied from
Daimler-Benz.
Hindustan
Motors
Hindustan Motors is one of the oldest
Indian car manufacturers in India. It is
perhaps best known for the
Ambassador which has remained
virtually unchanged for about 30
years. It is still very popular as a taxi
and is widely used by Indian
politicians.
Trekker (discontinued), Landmaster
(discontinued), Contessa
(discontinued)—5th generation
Vauxhall Victor, and the Ambassador
—a version of the 1950s Morris
Oxford.
Mahindra &
Mahindra
Limited
The automotive section of Mahindra
started off when a first batch of
seventy five Utility Vehicles (UVs)
was imported in CKD condition from
Willys in 1947. It presently
manufactures Jeeps along with
agricultural equipment and light
trucks.
Armada (discontinued), Voyager
(discontinued), Bolero. Commander,
CL, MaXX, Scorpio, and Mahindra
and Mahindra Classic, Mahindra Xylo
Maruti Suzuki Maruti Suzki (formerly Maruti Udyog)
was formed as a partnership between
the Government of India and Suzuki
of Japan. It brought India its first
"affordable" car, the Maruti 800. It is
the biggest car manufacturer in India
and especially dominant in the small
car sector. Then it brought out the
Maruti 1000, made by Maruti Udyog
was the first ever contemporary
sedan-type car launched in India. The
car (which Suzuki sold in other
countries as the Cultus/Swift/Geo
800, O mni, Alto, Gypsy, Swift, SX4,
Wagon-R, Versa, Zen Estilo, Grand
Vitara, and Swift Dzire.
Metro with a 1.3 L or 1.6 L engine)
was introduced in October, 1990.
Sold at Rs. 3.81 lakh, it was back
then the costliest car released in the
Indian market. Then the company
replaced it with Esteem and from that
days on a line of Suzuki cars rolled
out in the Indian market.
Premier
Automobiles
Limited
Walchand Hirachand started Premier
Automobiles Ltd. (PAL) in 1942. They
assembled DeSoto and Plymouth
cars in 1946 in association with
Chrysler from the United States. They
also manufactured the Premier
Padmini which was a version of the
Fiat 1100.
Padmini (discontinued), 118 NE
(discontinued), and Premier Sigma.
REVA
REVA Electric Car Co. is the producer
of the Reva (G-Wiz), an electric car
intended for use as a City car. More
REVAs have been produced than any
other currently selling electric car and
sales are increasing. It is currently the
world's leading electric car
manufacturing company.
REVA (G-Wiz).
Tata Motors Tata Motors, formerly known as
TELCO, is the largest automobile
manufacturer in India and commands
more than 70% of the commercial
vehicle market in India and has also
increased its share of passenger
Indica, Indigo, Indigo Marina, Safari,
Sumo, TL, and Tata Nano.
vehicle market. It was responsible for
developing India's first indigenous
vehicle, the Indica. It has proved to be
a success in the market after initial
quality problems. The company also
exports the car to many countries.
Tata owns major stake in Jaguar and
Range Rover.
In addition to Bangalore-based REVA, which currently is the only company actually selling
EVs today, electric cars made in India includes:
Mahindra & Mahindra: Four-seat model by 2010.[13]
Ajanta Group: clockmaker with plans for low-cost EV.[15]
Tara: Low-cost EV less than a Tata Nano.[16]
Hero Electric: 2013 Electric car.[17]
1.3.6 Multi-national companies in India
Company Description Product
Audi
In January 2008, Audi started
production with the Audi A4 and A6 at
its factory in Aurangabad in the state of
Maharashtra.
A4, A6, A8, R8, Q7, and TT.
BMW BMW is a manufacturer of sport
sedans. BMW enjoys good brand
recognition in India. It has set up a
plant in Chennai, Tamil Nadu, to
manufacture cars locally exclusively for
the local market with no plans for
export. It set up the plant to circumvent
3 Series, 5 Series, 6 Series, 7 Series,
X3,X5and X6.
high import duties.
Fiat
It roped in Sachin Tendulkar as one of
its brand ambassadors. Even Michael
Schumacher appeared in an ad for the
Palio. It has entered now into an
alliance with Tata Motors to jointly
manufacture cars at its plant in
Ranjangaon, near Pune. The facility
will enable the two companies to make
about 2,00,000 cars per annum, and
also house an engine manufacturing
unit with a capacity of 2,50,000 units
per annum. The alliance will also see
Tata Motors use Fiat's diesel
technology—the 1.3 litre multijet diesel
engine—for its own vehicles. The two
companies also have a distribution and
service partnership.
The Fiat Uno was one of the first
products to be introduced. The Fiat
Palio/Fiat Siena was later introduced
and was initially a success with its
style and ride comfort coupled with
solid build but has slowly lost its sheen
due to low fuel efficiency. Other
models were introduced such as the
Palio Weekend, Palio Stile and
Adventure. Fiat tried re-branding of the
Fiat Siena to Fiat Petra without much
success. Fiat Bravo—sold in
collaboration with Tata Motors, Fiat
500—sold in collaboration with Tata
Motors, and Fiat Linea—sold in
collaboration with Tata Motors.
Ford Motor
Company
Ford entered India in collaboration with
Mahindra & Mahindra in 1995 with a
plant in Tamil Nadu. The first model
was the Escort.
Escort (discontinued), Ikon,
Endeavour, Fusion, and Fiesta.
General
Motors
Chevrolet has been a recognized
brand in India for several decades. The
model lineup consists of vehicles from
cheaper sister brands like Daewoo.
General Motors initially entered India
with the Opel brand, but the Opel
brand was dropped in March 2006
because sales were at an all time low
Tavera—rebadged Isuzu Panther,
[[First Generation Subaru Forester,
Aveo—second Generation Daewoo
Kalos sedan, Aveo UV-A—first
Generation Daewoo Kalos hatchback,
Optra—rebadged Daewoo Lacetti,
SRV—rebadged Daewoo Lacetti,
Spark—formerly Daewoo Matiz in
due to high prices and General Motors
wanted to focus more on their
Chevrolet brand. Since the Chevrolet
brand was introduced in India, there
have been no new Opel products.
GM's Indian operations were originally
a JV between Hindustan Motors and
GM, with most of GM's vehicles
assembled at Hindustan's plant in
Halol, Gujarat. Since then, GM India is
now wholly owned by GM.
India, and Captiva—recent launch in
India.
Honda
Honda Siel Cars entered India in 1995.
It sells 4 cars in India—the City, Civic,
Accord, and CR-V. The manufacturing
plant of Honda Siel is located in
Greater Noida. The model of Accord
sold in India is the 2003 model. The
most inexpensive car from Honda—
The City. The most expensive—The
Honda Accord V6.
Accord, City, Civic, and CR-V.
Hyundai
When Hyundai entered India, the
brand was virtually unknown in the
Indian market. But now Hyundai has
good market because of its models like
SANTRO, Accent etc..
Santro—second generation Hyundai
Atos, Accent—second generation
Hyundai Accent sedan, Sonata—sold
as the Sonata Embera, Verna—third
generation Hyundai Accent sedan,
Getz—sold as the Getz Prime, Elantra
—3rd generation Hyundai Elantra
sedan, Terracan (discontinued),
Tucson, i10—brand new small car,
global launch in India in 2007, and i20.
Renault-
Nissan-
Logan (in partnership with Mahindra &
Mahindra Limited).
Mercedes-
Benz
Mercedes-Benz has had to cater to the
ever gowning luxury segment in India,
especially after the arrival of the other
luxury German manufacturers. Now,
Mercedes-Benz cars are launched in
India soon after the worldwide launch
and homologation as opposed to
earlier, when Mercedes-Benz had
monopolized the niche Indian market.
In 2007 they launched the SLK-Class
and CLS-Class.
C-Class, E-Class, S-Class, ML-Class,
SL-Class, CL-Class, SLK-Class, CLK-
Class, GL-Class, and CLS-Class.
Mitsubishi
Motors-
Lancer - Sixth Generation Mitsubishi
Lancer, Cedia—seventh generation
Mitsubishi Lancer, Pajero—second
generation Mitsubishi Pajero, Montero
—third generation Mitsubishi Pajero,
and Outlander.
Škoda
Škoda Auto is an important car
manufacturer of India. It recently
launched the Laura, the Octavia still
continues to exist. Škoda also offers
the Superb in India but it's not too
popular.
Fabia, Octavia/Laura, and Superb.
Toyota Toyota Kirloskar sells 4 car models in
India. It stopped producing the Toyota
Qualis to make way for the Toyota
Innova, which was launched in India in
Toyota Qualis, Camry—7th generation
Toyota Camry (the latest generation
Camry), Corolla—9th generation
Toyota Corolla, Innova, and Land
2005. The most expensive car from
Toyota is the Land Cruiser Prado.
Toyota Kirloskar Motors Ltd. is a joint
venture between Toyota and the
Kirloskar Group.
Cruiser Prado VX—latest generation
Toyota Land Cruiser (PRADO).
The list of foreign cars sold in India as CBU is given below:
Audi: Audi A4, Audi R8, Audi A6, Audi A8, Audi TT, and Audi Q7.
BMW: BMW 7 Series, BMW X5, BMW X3, BMW M3, BMW M5, and BMW M6.
Land Rover: Range Rover and Range Rover Sport.
Nissan: Teana and X-Trail.
Porsche: Porsche 911, Porsche Boxster, Porsche Cayenne, and Porsche Cayman.
Rolls Royce: Rolls Royce Phantom.
Toyota: Land Cruiser Prado VX.
Volkswagen: Volkswagen Jetta, Volkswagen Passat, and Volkswagen Touareg.
Volvo: Volvo XC90 and Volvo S80.
Lamborghini: Lamborghini Gallardo and Lamborghini Murciélago
1.3.7 CARS BY PRICE
Under Rs. 3 Lakhs Maruti 800 , Alto, Omni, Reva, Nano
Rs. 3-5 Lakhs AmbassadorFiat Palio, Linea, Grand PuntoHyundai Santro , Getz, i-10,i-20Chevrolet Opel CorsaMaruti Zen-estilo , Wagon R, Versa, Esteem, Gypsy, Swift, A-Star, Ritz Ford Icon & FiestaTata Indica , Indigo XL, Indigo MarinaMahindra- Renault Logan,
Rs. 5-10 Lakhs Chevrolet Swing, Optra Magnum, TaveraHyundai Accent, ElantraMahindra ScorpioMaruti BalenoToyota InnovaTata SafariMitsubishi Lancer , Mitsubishi CediaHonda City ZXHonda jazz
Mahindra BoleroMaruti SX4, Dezire
Rs. 10-15 Lakhs Toyota Corolla AltisFord Mondeo & EndeavourChevrolet ForesterSkoda Octavia & Combi, LauraHonda CivicHyundai Sonata Embera
Rs. 15-30 Lakh Honda CR-VMaruti Suzuki Grand VitaraTerracan TucsonMitsubishi PajeroMitsubishi OutlanderMitsubishi CediaAudi A4Opel VectraHonda AccordMercedes C ClassToyota CamryToyota Prius
Above Rs. 1 Cr ore Bentley Arnage, Bentley Continental GT & Flying SpurRolls Royce PhantomMaybachAudi R8
.
1.3.8 Production facilities in India
Ashok Leyland: Ennore, Chennai, Tamil Nadu; Hosur, Tamil Nadu (3 plants)
Audi: Aurangabad, Maharashtra
BMW: Chennai, Tamil Nadu.
Bajaj Auto Ltd: Akurdi, MIDC Pimpri-Chinchwad, Pune, Maharashtra
Caparo: Chennai, Tamil Nadu.
Chevrolet: Halol, Gujrat.
Daimler : Chennai, Tamil Nadu.
Fiat: Pune (Ranjangaon), Maharashtra.
Ford: Chennai, Tamil Nadu.
Force Motors: Pune, Maharashtra
General Motors: Talegaon Dabhade (Pune), Maharashtra
Hindustan motors: Chennai, Tamilnadu, and Kolkata, West Bengal.
Honda: Greater Noida, Uttar Pradesh.
Hyundai: Chennai, Tamil Nadu.
Kinetic Motor Company Limited: M.I.D.C., Pimpri-Chinchwad Pune, Maharashtra
Mahindra: Nashik, Maharashtra; Kandivali, Maharashtra; Igatpuri, Maharashtra;
Zahirabad, Andhra Pradesh; and Haridwar, Uttarakhand.
Mercedes-Benz: Pune, Maharashtra.
Mitsubishi: Thiruvallur, Chennai, Tamil Nadu.
Renault-Nissan: Chennai, Tamil Nadu.
Škoda: Aurangabad, Maharashtra
Suzuki: Gurgaon, Haryana, and Manesar, Haryana.
TAFE Tractors : Chennai, Tamil Nadu.
Tata: Lucknow, Uttar Pradesh; Pimpri-Chinchwad (Pune) Maharashtra; Jamshedpur,
Jharkhand; Haridwar, Uttarakhand and Sanand, Gujarat.
TVS_Motors, Chennai, Tamil Nadu.
Toyota: Bangalore, Karnataka.
Volkswagen: Talegaon Dabhade (Pune), Maharashtra
Volvo Trucks: Bangalore, Karnataka
1.4 Midsize Cars industry
Midsize cars industry provides an affordable automobile option for a family. Over the year,
sales performance of midsize cars in US and other countries has been quite impressive.
Many of the popular automobile manufacturers produce and sell midsized cars. Big names
in this industry include Honda, Chevrolet, Subaru, Pontiac, and Toyota. Midsized cars
manufactured by these automobile companies are some of the top sellers.
1.4.1 Midsize cars industry in US
High fuel prices have made car buyers to look towards fuel efficient cars in US. Popular car
maker in US have observed a buying pattern changes. Sales figures for June 2008 indicate
that demand for midsized cars in US has shot up significantly. But supply of midsized cars
is a bit on the lower side.
Auto buyers are being driven towards fuel efficient vehicles that cost between $18,000 and
$30,000. Low performance of US auto industry in 2008 has not affected midsize cars
industry.
1.4.2 Popular midsize cars in US
Chevrolet Malibu sedan, Honda Accord sedan, Chevrolet Equinox crossover, Subaru
Forester crossover, and Pontiac G6 sedan recorded improved sales for June 2008 over
previous year figures. Sale of Chevrolet Malibu sedan went up by 73.4 percent. Honda
Accord sedan recorded an improved sales performance of 54 percent. Chevrolet Equinox
crossover sales figure saw an increase of 45.9 percent.
1.4.3 Midsize car industry in India
Midsize car market in India was considered to be the next big thing for automotive industry.
But recent sales performance of midsize cars in India has been anything but great.
Negative growth rate has been recorded by most midsize cars, excluding Suzuki Dzire and
Tata Indigo CS. Experts believe that rise in excise duty and fuel prices have caused a dip in
sales of midsize cars in India.
During April-June 2008, 15,766 units of Suzuki Dzire have been sold off. But Tata Indigo
CS emerged the winner with sale of 17,539 units. Chevy Optra, Skoda Octavia, and
Hyundai Accent were other decent performers.
Wednesday, 6 May 2009
Luxury and Mid-Size Cars will be Cheaper
All prospective car buyers can now think for luxury and mid-size cars as these segments is
likely to see a price slash. It is said that popular sedans like the Maruti SX4, the Honda
Civic and luxury car may become cheaper by up to Rs 50,000.
Nothing is confirmed but the ministry of heavy industries and finance ministry is on
discussion to waive off the specific excise duty charged on mid-size and top-end cars last
year.
Cars with engine sized between 1,500-2,000cc were forced to pay an additional tax of Rs
15,000, whereas it was Rs 20,000 on all vehicles above 2,000cc engine. But as the tax was
forced on ex-factory price of vehicles, the car manufacturers transferred the burden to the
consumers with sales tax and other taxes. Now it is realized that such kind of tax planning
does not make any sense and is unfair for some car segments.
Because of such tax structure even the sales were affected as it discouraged the
consumers from buying cars like the Honda Civic and the Toyota Corolla. After the
implication of the light tax structure, the price on these cars will come down by Rs 20,000 to
Rs 50,000.
If this rule is put into practice, it will be a great offering for the buyer as well as the car
manufacturers. It will attract more buyers that will in turn help the car industry to revive.
Introduction to the Organization
Maruti Suzuki
2.1 Maruti Suzuki India Ltd
Maruti Suzuki India Ltd Is a publicly listed automaker in India. It is a leading four-wheeler
automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority
stake in the company. It was the first company in India to mass-produce and sell more than
a million cars. It is largely credited for having brought in an automobile revolution to India. It
is the market leader in India and on 17 September 2007, Maruti Udyog was renamed
Maruti Suzuki India Limited. The company's headquarters are in Gurgaon, Haryana (near
Delhi).
Overview
Type Public (BSE MARUTI, NSE MARUTI)
Founded 1981 [1]
Headquarters Gurgaon, Haryana, India
Key peopleMr. Shinzo Nakanishi,
Managing Director and CEO
Industry Automotive
Products Cars
Revenue ▲US$3.5 billion (2009)
Employees 6,903 [2]
Parent Suzuki
Website MarutiSuzuki.com
2.2 Maruti’s Board of Directors
Chairman Mr. R. C. Bhargava
Managing Director and
CEO
Mr. Shinzo Nakanishi
Director Mr. Manvinder Singh Banga
Director Mr. Amal Ganguli
Director Mr. D. S. Brar
Director Mr. Keiichi Asai
Director Mr. Osamu Suzuki
Director Mr. Shuji Oishi
Director Ms. Pallavi Shroff
Director Mr. Kenichi Ayukawa
Director and Managing
Executive Officer
(Production)
Mr. Tsuneo Ohashi
Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in
the car segment, both in terms of volume of vehicles sold and revenue earned. Until
recently, 18.28% of the company was owned by the Indian government, and 54.2% by
Suzuki of Japan. The Indian government held an initial public offering of 25% of the
company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian
financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981, though the actual
production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which
at the time was the only modern car available in India, its' only competitors- the Hindustan
Ambassador and Premier Padmini were both around 25 years out of date at that point.
Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and
various several other countries, depending upon export orders. Cars similar to Marutis (but
not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and
other South Asian countries.
The company annually exports more than 50,000 cars and has an extremely large domestic
market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's
largest selling compact car ever since it was launched in 1983. More than a million units of
this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and
Maruti Swift is the largest selling in A2 segment.
Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is
commonly used to refer to this compact car model. Till recently the term "Maruti", in popular
Indian culture, was associated to the Maruti 800 model.
Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been
the leader of the Indian car market for over two decades.
It’s manufacturing facilities are located at two facilities Gurgaon and Manesar south of New
Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The
Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a
capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of
100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined
capability to produce over 700,000 units annually.
More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki
Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the
public and financial institutions. It is listed on the Bombay Stock Exchange and National
Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all,
over six million Maruti cars are on Indian roads since the first car was rolled out on
December 14, 1983.
Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star, Wagon R,
Zen Estilo, Swift, Swift Dzire, SX4, Grand Vitara. Swift, Swift dzire, A star and SX4 are
maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit
(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars
for three decades. Suzuki’s technical superiority lies in its ability to pack power and
performance into a compact, lightweight engine that is clean and fuel efficient.
Maruti is clearly an “employer of choice” for automotive engineers and young managers
from across the country. Nearly 75,000 people are employed directly by Maruti and its
partners.
The company vouches for customer satisfaction. For its sincere efforts it has been rated (by
customers)first in customer satisfaction among all car makers in India for nine years in a
row in annual survey by J D Power Asia Pacific.
Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make
a people's car for middle class India. Over the years, the product range has widened,
ownership has changed hands and the customer has evolved. What remains unchanged,
then and now, is Maruti’s mission to motorize India.
2.2 Core value
- Customer obsession
- Fast, Flexible & First Mover
- Innovation & creativity
- Networking & Partnership
- Openness & Learning
2.3 Partner for the joint venture
Pressure started mounting on Indira and
Sanjay Gandhi to share the details of the
progress on the Maruti Project.
Since country's resources were made
available by mother to her son's pet project.
A delegation of Indian technocrats was
assigned to hunt a collaborator for the project.
Initial rounds of discussion were held with the giants of the automobile industry in Japan
including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small
player in the four wheeler automobile sector and had major share in the two wheeler
segment. Suzuki's bid was considered negligible.
In the initial rounds of discussion the giants had their bosses present and in the later rounds
related to the technical discussions executives of these automobile giants were present.
Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the
rounds of discussion. Osamu in an article writes that it subtly massaged their (Indian
delegation) egos and also convinced them about the sincerity of Suzuki's bid. In the initial
days Suzuki took all steps to ensure the government about its sincerity on the project.
Suzuki in return received a lot of help from the government in such matters as import
clearances for manufacturing equipment (against the wishes of the Indian machine tool
industry then and its own socialistic ideology), land purchase at government prices for
setting up the factory Gurgaon and reduced or removal of excise tariffs. This helped Suzuki
conscientiously nurse Maruti through its infancy to become one of its flagship ventures.[3]
2.5 Joint venture related issues
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's
fifth global car model, was designed and is made only in India. [4] Besides being Suzuki's
largest subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's leading research and
development arm outside Japan
Relationship between the Government of India, under the United Front (India) coalition and
Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian
media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint
venture that had a near monopolistic trade in the Indian automobile market and the nature
of the partnership built up till then was the underlying reason for most issues. The success
of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to
50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate
their candidate for the post of Managing Director and every Managing Director will have a
tenure of five years[5]
Initially R.C.Bhargava, was the managing director of the company since the inception of the
joint venture. Till today he is regarded as instrumental for the success of Maruti Udyog.
Joining in 1982 he held several key positions in the company before heading the company
as Managing Director. Currently he is on the Board of Directors.[6] After completing his five
year tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The
Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on August 27,
1997. Mr. Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public
sector undertaking Bharat Heavy Electricals Limited as General Manager. Later in 1987 he
was promoted as Chief General Manager, 1998 as Director, Productions and Projects,
1989 Director, Materials and in 1993 as Joint Managing Director.
The Suzuki Motor corporation didn't attend the Annual General Meeting of the Board with
the reason of it being called on a short notice.[7] Later Suzuki Motor Corporation went on
record to state that Mr. Bhaskarudu was "incompetent" and wanted someone else.
However, the Ministry of Industries, Government of India refuted the charges. Media stated
from the Maruti sources that Bhaskarudu was interested to indigenise most of components
for the models including gear boxes especially for Maruti 800. Suzuki also felt that
Bhaskarudu was a proxy for the Government and would not let it increase its stake in the
venture.[8] If Maruti would have been able to indigenise gear boxes then Maruti would have
been able to manufacture all the models without the technical assistance from Suzuki. Till
today the issue of localization of gear boxes is highlighted in the press.[9]
The relation strained when Suzuki Motor Corporation moved to Delhi High Court to bring a
stay order against the appointment of Mr. Bhaskarudu. The issue was resolved in an out-of-
court settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to
December 31, 1999, and from January 1, 2000, Jagdish Khattar, Executive Director of
Maruti Udyog Limited would assume charges as the Managing Director.[10] Many politicians
believed, and had stated in parliament that the Suzuki Motor Corporation is unwilling to
localize manufacturing and reduce imports. This remains true, even today the gear boxes
are still imported from Japan and are assembled at the Gurgaon facility.
2.6 Industrial relations
For most of its history, Maruti Udyog had relatively few problems with its labour force. Its
emphasis of a Japanese work culture and the modern manufacturing process, first
instituted in Japan in the 1970s, was accepted by the workforce of the company without any
difficulty. But with the change in management in 1997, when it became predominantly
government controlled for a while, and the conflict between the United Front Government
and Suzuki may have been the cause of unrest among employees. A major row broke out
in September 2000 when employees of Maruti Udyog Ltd (MUL) went on an indefinite
strike, demanding among other things, revision of the incentive scheme offered and
implementation of a pension scheme. Employees struck work for six hours in October 2000,
irked over the suspension of nine employees, going on a six-hour tools-down strike at its
Gurgaon plant, demanding revision of the incentive-linked pay and threatened to fast to
death if the suspended employees were not reinstated. About this time, the NDA
government, following a disinvestments policy, proposed to sell part of its stake in Maruti in
a public offering. The Staff union opposed this sell-off plan on the grounds that the
company will lose a major business advantage of being subsidised by the Government.
The standoff with the management continued to December with a proposal by the
management to end the two-month long agitation rejected with a demand for reinstatement
of 92 dismissed workers, with four MUL employees going on a fast-unto-death. In
December the company's shareholders met in New Delhi in an AGM that lasted 30 minutes.
At the same time around 1500 plant workers from the MUL's Gurgaon facility were agitating
outside the company's corporate office demanding commencement of production linked
incentives, a better pension scheme and other benefits. The management has refused to
pass on the benefits citing increased competition and lower margins.[11]
2.7 Launches of Maruti Suzuki’s various model
1. Maruti 800: Launched - 1983
2. Maruti Omni: Launched - 1984
3. Maruti Gypsy: Launched - 1985
4. Maruti Alto: Launched - 2000
5. Maruti Wagon-R: Launched - 2002
6. Maruti Versa: Launched - 2003
7. Maruti Grand Vitara Launched - 2004
8. Maruti Suzuki Swift: Launched - 2005
9. Maruti Zen Estilo: Launched - 2006
10.Maruti Suzuki SX4: Launched - 2007
11.Maruti Swift Dzire: Launched - 2008
12.Maruti A-Star: Launched - 2008
13.Maruti Suzuki Ritz: Launched - 2009
Authorized service stations
Maruti is one of the companies in India which has unparalleled service network. To ensure
the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized service
stations and 30 Express Service Stations on 30 highways across India.
Service is a major revenue generator of the company. Most of the service stations are
managed on franchise basis, where Maruti trains the local staff. Other automobile
companies have not been able to match this benchmark set by Maruti. The Express Service
stations help many stranded vehicles on the highways by sending across their repair man
to the vehicle.[12]
2.8 Maruti insurance
Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the
National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram.
The service was set up the company with the inception of two subsidiaries Maruti Insurance
Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited[13]
This service started as a benefit or value addition to customers and was able to ramp up
easily. By December 2005 they were able to sell more than two million insurance policies
since its inception.[14]
2.9 Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance in January 2002. Prior to
the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti
Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing
loan.[15] Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra,
Standard Chartered Bank, and Sundaram to start this venture including its strategic
partners in car finance. Again the company entered into a strategic partnership with SBI in
March 2003[16] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBI-Maruti Finance is currently available in 166 cities across India.[17]
"Maruti Finance marks the coming together of the biggest players in the car finance
business. They are the benchmarks in quality and efficiency. Combined with Maruti
volumes and networked dealerships, this will enable Maruti Finance to offer superior
service and competitive rates in the marketplace".
— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference
announcing the launch of Maruti Finance on January 7, 2002[19]
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti
Udyog Limited its primary business stated by the company is "hire-purchase financing of
Maruti vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank
Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti
Udyog holds the remaining 26%.[20] GE Capital, HDFC and Maruti Udyog Limited came
together in 1995 to form Maruti Countrywide.[21] Maruti claims that its finance program offers
most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the
market rates.
Maruti TrueValue
Maruti True service offered by Maruti Udyog to its customers. It is a market place for used
Maruti Vehicles. One can buy, sell or exchange used Maruti vehicles with the help of this
service in India.[22]
N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and fleet
management solution to corporates. Its impressive list of clients who have signed up of this
service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona Steering,
Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet
management service include end-to-end solutions across the vehicle's life, which includes
Leasing, Maintenance, Convenience services and Remarketing.[23]
2.10 Accessories
Many of the auto component companies other than Maruti Udyog started to offer
components and accessories that were compatible. This caused a serious threat and loss
of revenue to Maruti. Maruti started a new initiative under the brand name Maruti Genuine
Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog
lamps, stereo systems, seat covers and other car care products. These products are sold
through dealer outlets and authorized service stations throughout India.[24]
2.11 Maruti Driving School
A Maruti Driving School in Chennai
As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving
School in Delhi. Later the services were extended to other cities of India as well. These
schools are modelled on international standards, where learners go through classroom and
practical sessions. Many international practices like road behaviour and attitudes are also
taught in these schools. Before driving actual vehicles participants are trained on
simulators.
"We are very concerned about mounting deaths on Indian roads. These can be brought
down if government, industry and the voluntary sector work together in an integrated
manner. But we felt that Maruti should first do something in this regard and hence this
initiative of Maruti Driving Schools."
— Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore
Road safety is a key concern area for both the Government and the people on Indian roads.
Safe driving today requires a higher level of confidence and competence, given the poor
traffic planning, increasing number of vehicles, lack of professionalism in driving and
untrained drivers on road. In a bid to address these issues, Maruti Suzuki India Ltd. has
launched Maruti Driving School — its initiative for promoting safe driving.
MDS not just imparts better driving skills but also tries to inculcate safe driving culture
through special theoretical sessions for behavioural training and road sense. The school
was the first to introduce advanced driving training simulator for better judgment and
concept of route maps for holistic on-road practice.
Having started from Bangalore in March 2005, Maruti Driving School has now spread its
network throughout the country. It is dedicated towards making Indian roads safer by
helping learners become smart and responsible motorists.
The salient features of MDS include:
1. Training imparted by instructors who are trained at IDTR. The certification of
Instructors comes after a tough evaluation process. MDS has specially appointed
lady instructors for the benefit and comfort of women trainees.
2. A curriculum that comprises comprehensive theory and practical sessions. The
theoretical component focuses extensively on attitudinal and behavioural training
and deals with the problem of road rage.
3. Use of advanced passenger car simulators for imparting driving training. The
simulator familiarizes the trainee with car controls, before the trainee actually takes
the car on road. It also simulates a variety of conditions such as night driving, hill
driving, road and light conditions.
Practical training provided on new cars fitted with dual control for enhanced safety and air-
conditioning for comfortable learning.
2.12 Exports
Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in
Asia. Shown here is Maruti Gypsy in Malta.
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major focus on
exports and it does not operate in the domestic Indian market. The first commercial
consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to
the same country Maruti crossed the benchmark of 300,000 cars. Since its inception export
was one of the aspects government was keen to encourage. Every political party expected
Maruti to earn foreign currency.
Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka, Uganda, Chile,
Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports
2.13 Some Key Areas:
Customer DelightIn these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold.
Over the last few years ,the company strengthened the existing Practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers.
These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers.
The company has retained its competitive edge by offering high quality products. In the field, the products are supported by rapidly expanding networks. The company has diverse neworks for new cars, spares, service, pre owned cars and so on, and all of them were in expansionmode last year to enable the company get closer to the customer.
Servicing customers 24X7..... 365 days....
The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9thtime in a row.
The award mirrors the company's commitment towards "Customer Obsession".
Key Initiatives
Car pickup & delivery facility for women car owners
Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a Strong impact on customer satisfaction. In particular, customers who say that their vehicle was picked up from their doorstep before service and delivered to the same point after service are notably more delighted with their after-sales service experience, compared with customers whodo not receive this service...."
Setting up "Express Service Bays" & "2 - Technician Bays"
As the name suggests the company set out to delight its customers byoffering them faster car service by introducing new concepts such asExpress Service Bays & 2- Technicians Bays
These are done for customers who are hard pressed for time.Both the initiatives undertaken in this direction, have helped improve customer interface and also helped increase the productivity and capacity of existing workshops.
Mega Camps
The company aggressively conducts 'Mega Camps' throughout the country round the year.
Activities undertaken during a mega camp include complimentary car wash, AC & Pollution check up, oil and fuel top ups, wheel alignments etc.
Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also regularly conducted as part of customer connect initiatives.
Service at your Door Step through Maruti Mobile Support
Another unique initiative is the door step service facility through Maruti Mobile Support.
Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where Setting up of new workshop may not be viable.
Car Safety device: Immobilizer
The company used technology to meet customer needs and even delight them. Following feedback that the company's cars were moreprone to theft owing to their resale value, the company worked on an anti-theft immobilizer or "I-Cats;" system for all its new cars.
Complete car needs
The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and eventually exchanging the existing car for a new one -- under one roof at dealerships also enhances customer satisfaction
We were born as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, our product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is our mission to motorise India.
Our parent company, Suzuki Motor Corporation, has been a global leader in mini and compact carsfor three decades. Suzuki's technical superiority lies in its ability to pack power and performance into a compact, light-weight engine that is clean and fuel efficient. The same characteristics make our cars extremely relevant to Indian customers and Indian conditions.Product quality, safety and cost consciousness are embedded into our manufacturing process, whichwe have inherited from our parent company.
Right from inception, Maruti brought to India, a very simple yet powerful Japanese philosophy 'smaller,fewer, lighter, shorter and neater
From the Japanese work culture we imbibed simple practices like an open office, a common uniform and common canteen for everyone from the Managing Director to the workman, daily morning exercise,and quality circle teams.
Maruti Suzuki Today
More than half the number of cars sold in India wear a Maruti Suzuki badge. It is a subsidiary of Suzuki Motor Corporation Japan.They offer full range of cars- from entry level Maruti 800 & Alto to stylish hatchback Ritz, A star, Swift, Wagon R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara.
Since inception, we have produced and sold over 7.5 million vehicles in India and exported over 500,000 units to Europe and other countries.
Our turnover for the fiscal 2008-09 stood at Rs. 203,583 Million & Profit After Tax at Rs. 12,187 Million.
Sustainability
Sustainability at Maruti Suzuki refers to sum total of all the actions and initiatives undertaken by the company for its long-term survival and growth.
To achieve long-term sustainability and prosperity the company has nurtured a socially responsible behaviour towards its various stakeholders.
Since inception, the company has proactively taken care of the needs and sustainable growth of its stakeholders and they in turn, have supported the company in achieving its vision and business results year after year. As a result, sustainability has become an integral part of the company's approach to business and decision making
CSR
While working to enhance shareholder wealth, Maruti Suzuki will regularly engage with all
stakeholders to assess their needs and through its products, services, conduct and
management initiatives, promote their sustained growth and well – being.
Policy Guidelines
Company will follow responsible business practices in all its functions and operations and
will strive to implement them at its suppliers, dealers and other business partners.
Company will continue to remain ahead of law in pursuit of environment protection and
energy conservation at its manufacturing facilities, and in development of products that
use fewer natural resources and are environment friendly.
Company will be deeply committed towards the welfare of its employees, their families
and communities around its operations to improve quality of life as a whole.
Company will develop products and services that fulfills the aspirations of customers,
build a strong and lasting bond with them, proactively support them during natural
calamities, delight them with after sales services and availability of spares.
Company will continue to provide technological and managerial support to its suppliers
and dealers to further their profitable and sustainable growth.
As an expression of thanks to the local community and the people of the country
Company will undertake initiatives that might not be directly linked to its business.
Company will partner with government, NGOs, business partners to contribute positively
towards economic and human development of the society especially underprivileged
people.
Company will encourage and recognize its employees for volunteering in the community
in the spirit of serving and sharing their expertise and skills.
Company will strive to constantly build organizational capabilities, like any other
competency, position suitable people and have a proper organizational structure to
ensure implementation of CSR policy, guidelines and programs.
.
Company will engage with reputed external agencies for audit of its CSR activities for the
purpose of identifying areas of improvement, authenticity of data and reporting.
Company will monitor the progress on various CSR programs in a structured manner,
document the performance against the set targets and publish a report every year on its
CSR performance and share with its key stakeholders
2.14 Facilities
Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India.
The Gurgaon facility
Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities.
The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. More than 50 per cent of our shop floor employees have been trained in Japan.Gurgaon facility also houses `K' Engine plant.
The `K' family engine plant has an installed annual capacity of 240,000 engines and was commissioned in 2008. Spread over an area of 20,300 m2, the `K' family engine facility is part of the Rs 9,000 crore investment plan drawn by Maruti Suzuki and Suzuki Motor Corporation.
The next generation `K 'engine like all Maruti Suzuki earlier technologies is highly fuel efficient, while offering the best in refinement and performance.
It will take the engine technology to the next level in India. A-Star is the first car to be powered by `K' family engine. The forthcoming models will be powered by other `K' family engines.
The in-line plant layout consisting of Casting, Machining and Assembly processes has high level of automation, effective material handling and inventory reduction techniques in place, aimed forhigh operational efficiency.
The facility employs global manufacturing best practices like cold testing, 100% on line automated checks to ensure global quality.
The Manesar facility
Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions.
The plant was inaugurated in February 2007.
At present the plant rolls out World Strategic Models Swift , A-star & SX4 and DZire.The plant has several in-built systems and mechanisms.
There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality.
The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld
control system and numerical control machines that ensure high quality.
The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October 2008.
Diesel Engine Plant- Suzuki Powertrain India Limited
Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL.
This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010.
2.15 Current models of Maruti Suzuki
Model : 800 AC BS-III Model : 800 Duo AC
Model : 800 Duo Std Model : 800 Std BS-III
Model : A-Star LXI Model : A-Star VXI
Model : A-Star ZXI Model : Alto BS-III
Model : Alto Lx BS-III Model : Alto Lxi BS-III
Model : Grand Vitara AT Model : Grand Vitara MT
Model: Gypsy King HT Model : Gypsy King ST BS-III
Model : Omni (5-seater) BS-III Model : Omni (8-seater) BS-III
Model : Omni Ambulance BS-III Model : Omni Cargo BS-III
Model : Omni Cargo-LPG Model : Omni LPG
Model : Ritz Ldi Model : Ritz Lxi
Model : Ritz Vdi Model : Ritz Vxi
Model : Ritz Zxi Model : Swift Dzire Ldi Diesel
Model : Swift Dzire Lxi Petrol Model : Swift Dzire Vdi Diesel
Model : Swift Dzire Vxi Petrol Model : Swift Dzire Zdi Diesel
Model : Swift Dzire Zxi Petrol Model : Swift LDi
Model : Swift Lxi Model : Swift VDi
Model : Swift Vxi Model : Swift Vxi (ABS)
Model : Swift Zxi Model : SX4 Vxi
Model : SX4 Zxi Model : Versa BS-III
Model : Versa DX (5 Seater) BS-III Model : Versa DX (8 Seater) BS-III
Model : Versa DX2 (5 Seater) BS-III Model : Versa DX2 (8 Seater) BS-III
Model : WagonR Ax Model : WagonR Lx
Model : WagonR Lx Duo Model : WagonR Lxi
Model : WagonR Lxi Duo Model : WagonR Vxi
Model : Zen Estilo LX Model : Zen Estilo LXi
Discontinued MARUTI SUZUKI INDIA LTD Models
800 | Alto | Baleno | Esteem | Grand Vitara | Gypsy | Omni | Versa |
WagonR | Zen |
scontinued MARUTI SUZUKI INDIA LTD Models and Variants
Model : 800 AC BS-II Model : 800 Std BS-II
Model : Alto BS-II Model : Alto Lx BS-II
Model : Alto Lxi BS-II Model : Baleno Altura
Model : Baleno Lxi BS-II Model : Baleno Lxi BS-III
Model : Baleno Vxi BS-II Model : Baleno Vxi BS-III
Model : Esteem D Model : Esteem Di
Model : Esteem Lx BS-II Model : Esteem Lx BS-III
Model : Esteem Lxi BS-II Model : Esteem Lxi BS-III
Model : Esteem Vxi BS-II Model : Esteem Vxi BS-III
Model : Grand Vitara XL7 Model : Gypsy King HT BS-II
Model : Gypsy King ST BS-II Model : Omni (5-seater) BS-II
Model : Omni (5-seater) CNG Model : Omni (8-seater) BS-II
Model : Omni Ambulance BS-II Model : Omni Cargo BS-II
Model : Versa DX (5-seater) BS-II Model : Versa DX 2 BS-II
Model : Versa DX BS-II Model : WagonR Ax BS-III
Model : WagonR Lx BS-II Model : WagonR Lx BS-III
Model : WagonR Lxi BS-II Model : WagonR Lxi BS-III
Model : WagonR Vxi BS-II Model : WagonR Vxi BS-III
Model : Zen AT Model : Zen D BS-II
MARUTI SUZUKI SX4
Men are Back
In an attempt to strengthen its position in the of Sedan cars market, Maruti Udyog Ltd. has
launched its premium model bearing name SX4. After Maruti Suzuki Swift, SX4 is the
second international model being launched in India. Suzuki SX4, is an A3 segment sedan
car, with a perfect combination of style, performance, safety and comfort. There are two
versions of Suzuki SX4: Vxi and Zxi that gets power from latest and efficient 1.6-litre M-
Series engine delivering impressive 102 BHP of power.
Maruti Suzuki SX4 is packed with strong features like independent suspension system, Anti
Lock Braking System (ABS), matching color bumpers, electrically adjustable outside
mirrors, fine quality fabric seats, power windows, rear seat center armrest and adjustable
head rests in the front and rear seats are few to name for a smooth, comfortable and safe
ride.
Having the price tag of between Rs. 6-6.5 Lacs, Maruti Suzuki SX4 will provide tough
competition to its rivalry models like Ford Fiesta, Hyundai Verna, Honda City, and Indigo
XL.
Company Name Segment USP
Maruti Udyog Ltd. A3 Sedan Value for Money.
Key Features of Maruti Suzuki Sx4
Powered with 16 valve, 4 cylinder engine delivering impressive 143 horsepower, 136
ft lbs of torque.
15" large wheels and the arched bumpers adds grace to its athletic and robust
presence.
Power assisted rack and pinion steering.
All wheel drive system to have better riding comfort.
Standard MP3 ready stereo with 04 speakers and available iPod integration.
With 4,490 mm length and 1,735 mm width, the SX4 looks very grand.
Dashboard composed Music System with controls on Steering Wheel.
An illuminated key insert switch is the unique features of this car.
The turning radius of 5.3 meters makes the SX4 easily driven car on narrow roads.
The SX4 comes with a unique anti theft device called The immobilizer.
Colors Available In Maruti Suzuki Sx4
Maruti Suzuki SX4 is available in 07 sparkling colors -
Midnight Black
Azure Gray
Silky Silver
Clear Beige
Sunlight Copper
Pearl Arctic White
Supreme Red
Price & Competition From Rivals
Maruti Suzuki SX4 has been priced between Rs. 6-6.5 Lacs, is in a tough competition from
its Ford Fiesta, Hyundai Verna, Honda City, and Indigo XL.
(Please Note: The prices are ex-showroom and based on the close approximation. Please
check the latest prices and variant specifications with your dealer)
Safety Features of Maruti Suzuki Sx4
Rear doors Child-lock.
Intelligent Computerised Anti-Theft System (iCATS) which prevents its engine from
running unless the correct key is present.
ABS, and Emergency Brake-force Distribution (EBD).
Enhanced safety through seat belt pre-tensioners and force limiters .
Accented seating position provides wider & better visibility.
Quote - Unquote
"SX4 sedan is just the right car with which Maruti Udyog can reinforce its presence in the
A3 segment and enhance its leadership".
Speaking at the launch Mr. Jagdish Khattar, Managing Director & CEO, Maruti Suzuki India
Ltd.
Technical Specifications of Maruti Suzuki Sx4
Dimensions & Weight
Length (mm) 4490
Width (mm) 1735
Height (mm) 1560
Wheelbase (mm) 2500
Kerb Weight (kgs) 1170
Seating Capacity 05
Engine
Model Designation 1.6 L 16 V
No. Of Cylinders 04 Inline
Configuration DOHC
Displacement (cc) 1586
Transmission 5 Manual
Top Speed (kmph) 175
Suspension
FrontIndependent suspension with gas-filled McPherson strut & anti-
roll bar
Rear Semi independent torsion beam with gas filled shock absorbers
Brakes
Type Disc
Front / Rear Brakes Ventilated Discs/ Drums
Tyres
Type 195/65 R15
Wheels 15" Steel
Fuel Tank 50 Litres
Performance
Max. Horsepower
(ps/rpm)103 PS @ 5500 rpm
Max. Torque (kg m/rpm) 145 Nm @ 4200 rpm
Steering
Steering Type Rack & Pinion with Electronic Power Steering
Maruti Suzuki wins CNBC Auto Car India Awards
Maruti Suzuki India Limited received the following awards yesterday at the award
ceremony in New Delhi on 9th January, 2008
TNS Voice of Customer Award : Maruti Suzuki Alto
CNBC-Autocar India Best Value For Money Car Award: Maruti Suzuki SX4
CNBC-Autocar India Best Mid Size Car Award : Maruti Suzuki SX4
CNBC-Autocar India Car of the Viewers' Choice Award : Maruti Suzuki SX4
CNBC-Autocar India Manufacturer of the Year Award : Maruti Suzuki India Limited
Product detail
NEWS Published: May 20th, 2009
The new Maruti Suzuki has impressed everyone with its masculinity and attractive
features. The Maruti Suzuki SX4 is an A3 premium segment sedan that blends style,
comfort, performance, and safety. Launch of the Maruti Suzuki SX4 coincides with the
phasing-out of the Maruti Suzuki Baleno, which was launched in 1999 and could not see
great success. The SX4 is the second international offering from the house of Maruti
Suzuki, the first being the Swift. India is the first country to see the launch of the SX4, which
proves India’s worth as one of the hottest car-markets in the world.
Both, the Vxi and the Zxi variants are available in a host of Metallic colours such as Silky
Silver, Clear Beige, Midnight Black, Sunlight Copper, Pearl Arctic White, Supreme Red, and
Azure Grey.
Maruti Suzuki SX4 is an A3 segment sedan car. Launched in India by Maruti Udyog Ltd.,
the sedan comes across as a perfect blend of style, performance, safety, and comfort. The
combined efforts of Suzuki and Maruti that have gone into its manufacture have made SX4
popular amongst the car connoisseurs of India. Available in dazzling colors and two
variants, Maruti SX4 has almost bowled over the Indian buyers, who dream of owning a
luxurious car.
The SX4 is being touted as the tallest, widest, and broadest sedan in its class. It is available
in two variants, the Vxi and the Zxi. The SX4 boasts of various features which are available
only in cars that cost about a lakh more as compared to it. That is why the SX4 is expected
to give a tough competition to the Chevrolet Aveo, Ford Fiesta, Honda City, and Hyundai
Verna.
Maruti SX4 is powered by 1.6 L 16-valve M-series engine that generates maximum power
of 87bhp @ 6000rpm and maximum torque of 145 Nm @ 4200 rpm. The 1298 cc engine is
equipped with MPFI ignition system. The suspensions, brakes, and transmissions were
regulated in Europe, with further fine-tuning done to suit the Indian roads.
Expert’s View about SX4
Autocar, Writes
"Suzuki's SX4 sedan made its world debut at Geneva. Like its five-door sibling, the new
model combines responsive dynamics, 4x4 capability and high levels of practicality with a
comfortable and cosseting interior, Suzuki has used the talents of Italian designer Giugiaro,
who also helped design the SX4 crossover. The interiors are also very fresh and modern
with large and airy cabin."
Maruti SX4 - A Sedan that can surprise says S. Muralidhar (The Hindu Business Line)
Three world strategic models, as Suzuki calls them - the Swift, the new Grand Vitara and
the new SX4 - have all contributed to the resurgence of Suzuki image as a competitive
global manufacturer of attractive looking, quality cars in more segments than its traditional
stronghold of small hatches.
The SX4 sedan, like the Fiat and Suzuki hatchback counterparts, clearly attempts at
offering the sedan buyer the feel of premium ness and the performance of a bigger sedan
even as its is sharply focused at practicality.
Similarly, the overall dimensions of the SX4 have again been chosen
to offer more to the customer in this segment compared to the
competition in this price class. So, the SX4's wheelbase and width will
actually compare favorably to cars prices in the Rs. 10 lakh plus price
segment. Accentuating the look and feel of the SX4's size is the
strong raised shoulder line and the high ground clearance of 190mm. Flared wheel arches
attempt to distract the onlooker's attention from the large gaps between body panels and
tyres.
At the rear, the tail-lamps dominate the stubby, nearly notch-back style boot lid. Reflectors
integrated into the rear bumper and a third stop lamp offer additional safety.
High-end safety features such as anti-lock brakes with electronic brake force distribution,
seat belt pre-tensioners and load limiters, and dual front airbags will be available as
standard only in the top-end ZXi variant.
But other features such as adjustable tilt steering, variable instrument cluster illumination,
tubeless tyres, in-dash digital time and temperature display, and rear glass-integrated
antenna are standard features in both the trim levels...
Bijoy Kumar from Business Standard writes
Step into the SX4 and you are greeted by a very functional interior that has been
deliberately meddled with to grab your attention.
Two plasto-chrome strips line the centre console and there is a good sprinkling of the stuff
elsewhere too, adding to the "expensive and sporty" look. Dark dials and orange displays
according to me belonged to Audis of the nineties but do not look all that out of place in a
Suzuki sedan.
Look at the kit! The top-end City doesn't have any of the gizmo bits
thrown into the SX4 ZXi, and the latter costs way less. But the new
age construction of the Honda with tis petrol tank situated under the
front seat means rear passengers can fold their legs under the seat -
something you cannot do with the SX4.
Settle in the comfortable seat, adjust the mirrors, fire the motor and you are in for an
audible surprise. Unlike the previous Suzuki engines, this one makes its presence felt. You
can pick up the valve gear and other mechanical noises.
The new 16-valve M-series motor displaces 1586cc and it generates 102 bhp at 5500 rpm
and 14.5 kgm torque at 4200 rpm. Hardly any revs? Well, this is a typical Euro-spec motor
from Suzuki and on that does not need to be revved to the moon for good results.
The ride quality is sublime for a Suzuki (I drive one on a daily basis, I should know) and the
car has enough ground clearance for you to quit worrying about speed breakers. The heart-
breaking thumps normally associated with fragile cars and potholes are missing in action.
The SX4 looks, feels and drives like a car that is better put together than any other Suzuki
that is made in India. Exceptional fit and finish (including the interior bit) takes it to the same
league as the Honda.
Competitors
Midsize car market in India was considered to be the next big thing for automotive industry.
But recent sales performance of midsize cars in India has been anything but great.
There are many player in this industry i.e. Honda, Mitsubishi , Tata indigo, Indigo Marina,
Ford Fiesta, Fiat Linea , Chevrolet Aveo, Optra, Maruti-Suzuki’s SX4, D’Zire, Hyundai
Verna, Accent, Skoda Octavia, Laura and many others. All these cars create a very fierce
competitive market. All these are highly competitive for Maruti SX4.
There are some following key competitors of SX4
1. Honda city
2. TATA Indigo
3. Fiat Linea
4. Chevrolet Aveo
5. Chevrolet Optra
6. Swift D’Zire
7. Hyundai Verna
8. Ford Ikon
9. Ford Fiesta
10.Skoda Laura
Tata Indigo
The Tata Indigo is a subcompact car manufactured by Indian automaker Tata Motors.
Indigo Sedan
In 2002, Tata introduced India's most competitive
indigenous sedan: the Indigo. Designed in-house, it is
best thought of as a sedan version of the Tata Indica,
with which it shares a large number of parts. It is
sometimes referred as the working man's luxury car.
Indigo SX
In 2005, Tata Motors released the Indigo SX, an upmarket version of the Indigo sedan with
a leather-trimmed steering wheel and leather seats, among other features like electrically
operated outside rear view mirrors (ORVM), VCD player with LCD screens behind
headrests, apart from the standard features like power steering, power windows and central
locking. It competes with Honda City, Hyundai Accent and Maruti Suzuki SX4 / Maruti Swift
DZire.
Indigo XL
The Tata Indigo XL went on sale in January 2007.[1]. It is the long wheel base version of the
Indigo sedean. It features a 200 mm (7.9 in) stretched wheelbase and a 101 hp engine.The
Petrol model has MPFI 16 valve twin cam engine,whereas the diesel variant features a
DICOR engine.
Indigo CS
Tata launched the Tata Indigo CS at the 2008 Auto Expo in New Delhi. CS stands for
compact sedan and is the world's shortest sedan. The Indigo CS falls within the norms
which allows it to be subjected to lower excise duty which brings the cost of the car down.
Indigo Marina
Tata Indigo Marina
The station wagon version called the Indigo Marina (called the
Indigo SW in export markets) was unveiled at the New Delhi
Auto Expo 2004.
Indigo Marina Advent
In 2004 Tata Motors unveiled the Tata Indigo Marina Advent which is a softroader similar to
the Fiat Adventure. It is said to be a crossover vehicle exhibiting certain SUV like
characteristics.[2]
Engines
1.4 L petrol MPFI — 85 PS (84 hp/63 kW) at 5500 rpm, 12 kg-m (117 Nm) at 3500
rpm
1.4 L turbodiesel — 70 PS (69 hp/51 kW) at 4500 rpm, 13.5 kg-m (132 Nm) at 2500
rpm
1.4 L DICOR (only available in Europe & India)
Honda City
(2005 Face-lifted
version)
The Honda City is a subcompact car manufactured by the Japanese manufacturer Honda
since 1981 for the Asian market.
Since 2002, the City is also known as the Honda Fit Aria. It is a subcompact sedan that
uses Honda's Global Small Car platform, which is also used by the Fit/Jazz (a five-door
hatchback), the Airwave (a wagon version of the Fit Aria/City), the Mobilio, and the Mobilio
Spike. One of the characteristics shared by the Fit/Jazz, City/Fit Aria, and Airwave, is the
location of the fuel tank. Rather than placing it under the rear seats, it is located under the
front seats, thereby freeing up valuable room in the back.
Fourth generation (2002-2008)
Philippine Market Honda City.
In November 2002, the fourth generation City was
released and included a four-wheel drive version.
Like the contemporary Honda Jazz, the City is
actually a rebadged Honda Fit, in the City's case a
rebadged Fit Aria.
In September 2005, a face-lifted version of the City was launched in Thailand, Malaysia in
October 2005, and Indonesia in November 2005; it is known as the City ZX in Thailand,
India, the New City in Indonesia and Malaysia, and City in Singapore and Pakistan. The
most significant changes are a new exterior (new front grille, new headlamps, new fog
lights, new taillights and bumpers). The front end has been extended forward by 65 mm
(2.6 in) while the rear has been extended by 15 mm (0.6 in). The side mirror is electronically
foldable. Both the i-DSI and VTEC trim levels have 14-inch (360 mm) alloy wheels as
standard equipment. Interior changes are minor but it does include an armrest for the driver
and additional map lights.
The engine remains the same but the intake manifold has been modified, resulting a 10%
temperature drop in the intake air temperature (IAT)[1], the suspension has been upgraded
as well.
Honda City in Thailand, Indonesia, Philippines, Pakistan, Singapore and Malaysia are using
CVT gearbox for both i-DSI and VTEC variants. The CVT gearbox simulates a 7-Speed
automatic transmission with Tiptronic style override using paddle shift buttons. This is very
rare for a subcompact of its class.
Fifth generation (2008–present)
The new Honda City was unveiled in Malaysia on the 10th of September 2008 [3] followed
by New Delhi, India on 25 September 2008[4]. and January 2009 in Pakistan and Indonesia.
Honda also announced that the City will be offered in selected European countries with a
1.4 liter i-VTEC engine mated to either a 5-speed manual or a 6-speed i-SHIFT automated
manual transmission.[5]
Guangzhou Honda will be developing a Honda Civic-sized sedan based on the Honda City
chassis for the Chinese market. It will have a new name and a new shape but will use the
City's underpinings and a 1.8 liter engine. This new car will compete against Dongfeng
Honda's Civic and FAW Toyota's Corolla.[6]
The Thai market Honda City comes in three variants - S model, V Model and SV model.
The Indonesian market was offered with two trims, the lower-spec S and the higher-spec E
with reclining seats. Both are powered by a 1.5 engine putting out 120 bhp, and both are
available in manual and automatic transmissions.
Honda launched the new City in the Philippines on the 7th of January 2009 with four
variants; the 1.3 A with manual transmission, 1.3 S with manual and automatic
transmissions and the 1.5 E, whose automatic gearbox is equipped with paddle shifts that
promote more sporty driving enjoyment. All variants are now equipped with a SOHC, 16-
valve i-VTEC engines, creating an all-i-VTEC roster for Honda Cars this year. As a result,
drivers need not to worry about the lack of horsepower[7].
It will be launched in Malaysia on the 18th of December 2008. [8] It is scheduled to arrive in
Singapore by the end of September. For the first time, the car will be built and sold outside
Asia, being assembled in Argentina from 2009 on. Honda launched the new city in Pakistan
on 31 January 2009. It being produced at Honda plant at Lahore and is available in two
variants, 5 speed automatic transmission and 5 speed manual transmission. Both models
have a 1.3 liter i-VTEC engine.
Guangzhou Honda will be selling the Honda City in China from the 12th of December 2008
onwards. Unlike other markets where the largest engine option is a 1.5 liter, the Chinese
market Honda City will have an R18A 1.8 liter engine option.[9]
In February 2009, Honda Australia have released the Thai made City into the Australian
market in two 1.5 litre variants (VTi and VTi-L). According to Honda Australia boss,
Yasuhide Mizuno, the City will compete with other light sedans such as the Japanese made
Toyota Yaris sedan, Korean made Holden Barina and the Japanese made Nissan Tiida.[10]
This will be the first City released in Australia since the 1980s. It will replace the market
position used to be occupied by a former generation smaller-sized Civic.
This Honda City is also present in India with the engine of the 1.5 i-VTEC. This car is in
three variants : namely E MT which is manual, S MT which is also manual gear and the S
AT which is the automatic version.
Advertising
The music group Madness appeared in a Japanese TV ad campaign for the Honda City.
The jingle was written by the entire band, which also appeared in the TV ad, doing its
famous "nutty walk". The band apparently liked the jingle so much that they expanded it into
a three minute pop song and released it as a b-side (B/W "Cardiac Arrest") that reached
#14 in the UK charts. It was also included on Complete Madness, the band's best-selling
greatest hits compilation from 1982. The track version of "In The City" replaced the
repeated brand name "Honda Honda Honda..." with the more generic "doomba doomba
doomba". The TV advertisements were included (though not listed) on the Divine Madness
VHS video in 1992.
Fiat Linea
The Fiat Linea is a medium sized family car released
in 2007 by the Italian automaker Fiat as a world car in
Eastern Europe, Latin America and Middle East. In
India, the Fiat Linea was launched in January 2009
after it was postponed due to the Mumbai terror
attacks, in November 2008. [1] It replaced the aging
Marea as the largest saloon in the Fiat range. It is
based on the current Fiat Grande Punto platform. The Linea was designed by Fiat Style
Centre and co-developed by Fiat do Brasil and Tofaş from Turkey.
Linea's size is similar to saloon versions of other small family cars, like the Ford Focus,
Renault Mégane and Opel Astra. Its wheelbase is 2,603 mm (102.5 in), i.e. 100 mm (3.9 in)
longer than its sister models, and its total length is 4,560 mm (179.5 in) or 500 mm (19.7 in)
longer.
Launched in September 2008 in Brazil, the Linea is available with a 1.9 L 16v "Torque"
engine with 132 PS (97 kW; 130 hp), flexible for the Brazilian market (capable of using
petrol or ethanol). Also in Brazil the Linea is available with a 1.4 L 16v T-Jet engine with
152 PS (112 kW; 150 hp), the same engine used in Fiat Grande Punto Abarth in Europe,
capable of using only petrol, as this engine is imported.
Car systems
Linea is equipped with Blue&Me hands-free system, a Microsoft Windows Mobile based
system with multi-language voice recognition and speech functions. Allows to browse
mobile phone's book, reads aloud SMS and controls the audio system - using built-in USB
port, one can connect PenDrive with music in MP3 and WMA formats.
In Brazil the Linea can be equipped optionally with a Blue&Me Nav system, an enhanced
Blue&Me system that has a GPS system integrated. This GPS system doesn't show maps
in a touch screen, but it has a regular display that shows some arrows and directions and
you are also guided by voice instructions. You can either enter addresses that you want to
go and other instructions by voice instructions just like the regular Blue&Me system or using
the controls on the steering whell. The Linea is the first car in Brazil that has an integrated
GPS system.
Engines
Model[2]Engin
e
Displacemen
tPower Torque
0-100
km/h,sTop speed
1.4 - 8v I4 1368 cc77 PS (57 kW)
@ 6000 rpm
115 N·m
(85 lb·ft) @3000
rpm
14.6165 km/h
(103 mph)
1.4 16v T-
JetI4 1368 cc
120 PS (88 kW)
@ 5000 rpm
206 N·m
(152 lb·ft)
@1750 rpm
9.2195 km/h
(121 mph)
1.3
Multijet
16v
I4 1248 cc90 PS (66 kW)
@ 4000 rpm
200 N·m
(148 lb·ft)
@1750 rpm
13.8170 km/h
(106 mph)
1.9 16v
FlexI4 1839 cc
132 PS (97 kW)
@ 5750 rpm
183 N·m
(135 lb·ft)
@4500 rpm
10.5188 km/h
(117 mph)
1.4 16v T-
JetI4 1368 cc
152 PS
(112 kW) @
5500 rpm
207 N·m
(153 lb·ft)
@2250 rpm
8.5203 km/h
(126 mph)
L'Unico Club
In Brazil, Fiat is aiming the Linea towards the Japanese cars, such as Honda Civic and
Toyota Corolla, the market leaders for its class. As such, Fiat has launched the L'Unico
Club, that offers VIP services for Linea owners, such as special exclusive lines and
exclusive attendants for Linea owners, get and deliver service for maintenance and 3 years
warranty, the biggest warranty for Fiat cars in Brazil.
Ford Ikon
manufactured and sold in South Africa, Mexico and China where production ended in
December 2006, September 2007 and 2007 respectively.
The Mexican and South African Ikon was closely based on the European Mark IV and V
Fiesta, delivering vehicle attributes that would have been acceptable to European
customers. The India Ikon has a cheaper suspension, interior and front end structure. The
China Ikon was somewhere in between.
In Mexico, Brazil and China, the Ikon was marketed as a Fiesta sedan. In Brazil, this model
has been replaced by a new 4 door model based on the South American Fiesta. In South
Africa, the Ikon has been replaced by a different 4 door model based on the European
Fiesta Mark VI (but different exterior sheetmetal) and manufactured in India. (This vehicle is
badged Fiesta in India and has not replaced the Ikon in the Indian market.)
Comparison with competitors
Car Comparison: comparison between SX4 & AVEO
Features
Maruti Suzuki SX4 ZXi
Chevrolet Aveo 2009 1.4 LS
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 6,26,595
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System x
Air-Bags (Driver | Passenger) | x|x
Leather Seats X X
CD Player X
Overall Length (mm) 4490 4310
Overall Width (mm) 1735 1710
Overall Height (mm) 1570 1505
Kerb Weight (kg) 1200 1095
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1399
Power (PS@rpm) 102@5500 94@6200
Torque ( Nm@rpm) 145@4200 127@3400
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5
Tyres 205/60 R16 185/60 R 14
Car Comparison: comparison between SX4 & OPTRA
Maruti Suzuki SX4 ZXi
Chevrolet Optra SRV 1.6 Option Pack
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 7,83,479
FeaturesMaruti Suzuki SX4
ZXiChevrolet Optra SRV 1.6
Option Pack
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiChevrolet Optra SRV 1.6
Option Pack
Overall Length (mm) 4490 4295
Overall Width (mm) 1735 1725
Overall Height (mm) 1570 1445
Kerb Weight (kg) 1200 1230
Mileage Overall (km/liter) 10.8
Seating Capacity (person) 5 5
No of Doors 4 5
Displacement (cc) 1586 1598
Power (PS@rpm) 102@5500 101@5800
Torque ( Nm@rpm) 145@4200 140@4500
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5.2
Tyres 205/60 R16 195/60 R15
Car Comparison: comparison between SX4 & LINEA
Maruti Suzuki SX4 ZXi Fiat Linea Dynamic 1.4
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 6,49,846
Features Maruti Suzuki SX4 ZXi Fiat Linea Dynamic 1.4
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
Specs Maruti Suzuki SX4 ZXi Fiat Linea Dynamic 1.4
Overall Length (mm) 4490 4560
Overall Width (mm) 1735 1730
Overall Height (mm) 1570 1487
Kerb Weight (kg) 1200 1240
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1368
Power (PS@rpm) 102@5500 90@4000
Torque ( Nm@rpm) 145@4200 115@4500
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5.5
Tyres 205/60 R16 195/60 R15
Car Comparison: comparison between SX4 & FIESTA
Maruti Suzuki SX4 ZXi Ford Fiesta 1.6 S
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 7,47,477
Features Maruti Suzuki SX4 ZXi Ford Fiesta 1.6 S
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
Specs Maruti Suzuki SX4 ZXi Ford Fiesta 1.6 S
Overall Length (mm) 4490 4282
Overall Width (mm) 1735 1686
Overall Height (mm) 1570 1468
Kerb Weight (kg) 1200 1130
Mileage Overall (km/liter) 10
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1596
Power (PS@rpm) 102@5500 101@6500
Torque ( Nm@rpm) 145@4200 146@3400
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 4.9
Tyres 205/60 R16 195/55R15
Car Comparison: comparison between SX4 & Honda City
Maruti Suzuki SX4 ZXi
Honda City 2008 1.5 E MT
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 8,25,100
FeaturesMaruti Suzuki SX4
ZXiHonda City 2008 1.5 E
MT
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player X
SpecsMaruti Suzuki SX4
ZXiHonda City 2008 1.5 E
MT
Overall Length (mm) 4490 4420
Overall Width (mm) 1735 1695
Overall Height (mm) 1570 1480
Kerb Weight (kg) 1200 1100
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1497
Power (PS@rpm) 102@5500 118@6600
Torque ( Nm@rpm) 145@4200 146@4600
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5.3
Tyres 205/60 R16 175 / 65 R15
Car Comparison: comparison between SX4 & VERNA
Maruti Suzuki SX4 ZXi
Hyundai Verna VTVT SX 1.6
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 7,47,700
FeaturesMaruti Suzuki SX4
ZXiHyundai Verna VTVT SX
1.6
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiHyundai Verna VTVT SX
1.6
Overall Length (mm) 4490 4310
Overall Width (mm) 1735 1695
Overall Height (mm) 1570 1490
Kerb Weight (kg) 1200
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1599
Power (PS@rpm) 102@5500 103@5500
Torque ( Nm@rpm) 145@4200 147@3000
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3
Tyres 205/60 R16 185/65 R14
Car Comparison: comparison between SX4 & LOGAN
Maruti Suzuki SX4 ZXi
Mahindra-Renault Logan GLX 1.4
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 5,23,351
FeaturesMaruti Suzuki SX4
ZXiMahindra-Renault Logan
GLX 1.4
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiMahindra-Renault Logan
GLX 1.4
Overall Length (mm) 4490 4247
Overall Width (mm) 1735 1740
Overall Height (mm) 1570 1534
Kerb Weight (kg) 1200 1040
Mileage Overall (km/liter) 12.2
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1390
Power (PS@rpm) 102@5500 75@5500
Torque ( Nm@rpm) 145@4200 110@3000
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5.3
Tyres 205/60 R16 185/70 R14
Car Comparison: comparison between SX4 & AVEO
Maruti Suzuki SX4 ZXi
Maruti Suzuki Swift Dzire ZDi
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 6,94,075
FeaturesMaruti Suzuki SX4
ZXiMaruti Suzuki Swift Dzire
ZDi
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiMaruti Suzuki Swift Dzire
ZDi
Overall Length (mm) 4490 4160
Overall Width (mm) 1735 1690
Overall Height (mm) 1570 1530
Kerb Weight (kg) 1200 1115
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 5
Displacement (cc) 1586 1248
Power (PS@rpm) 102@5500 75@4000
Torque ( Nm@rpm) 145@4200 190@2000
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 4.7
Tyres 205/60 R16 185/70 R 14 (tubeless)
Car Comparison: comparison between SX4 & INDIGO
Maruti Suzuki SX4 ZXi
Tata Indigo LS TDI - BS III
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 5,10,472
FeaturesMaruti Suzuki SX4
ZXiTata Indigo LS TDI - BS
III
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiTata Indigo LS TDI - BS
III
Overall Length (mm) 4490 4150
Overall Width (mm) 1735 1620
Overall Height (mm) 1570 1540
Kerb Weight (kg) 1200 1155
Mileage Overall (km/liter) 12.5
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1405
Power (PS@rpm) 102@5500 70@4500
Torque ( Nm@rpm) 145@4200 125@2500
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5
Tyres 205/60 R16 175/65 R14 Radial
Car Comparison: between SX4 & INDIGO XL
Maruti Suzuki SX4 ZXi
Tata Indigo XL Grand Petrol
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 6,83,107
FeaturesMaruti Suzuki SX4
ZXiTata Indigo XL Grand
Petrol
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
SpecsMaruti Suzuki SX4
ZXiTata Indigo XL Grand
Petrol
Overall Length (mm) 4490 4377
Overall Width (mm) 1735 1620
Overall Height (mm) 1570 1540
Kerb Weight (kg) 1200 1150
Mileage Overall (km/liter) 12
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1396
Power (PS@rpm) 102@5500 101@6100
Torque ( Nm@rpm) 145@4200 124@3500
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter) 5.3 5.5
Tyres 205/60 R16 175/65 R14 (tubeless)
Car Comparison: comparison between SX4 & Ford Ikon
Maruti Suzuki SX4 ZXi Ford Ikon 1.3 Rocam
Price (Ex-Showroom Mumbai) Rs. 7,49,094 Rs. 4,90,907
Features Maruti Suzuki SX4 ZXi Ford Ikon 1.3 Rocam
Air Conditioner
Power Windows
Power Steering
Anti-Lock Braking System
Air-Bags (Driver | Passenger) | |
Leather Seats
CD Player
Specs Maruti Suzuki SX4 ZXi Ford Ikon 1.3 Rocam
Overall Length (mm) 4490 4145
Overall Width (mm) 1735 1632
Overall Height (mm) 1570 1439
Kerb Weight (kg) 1200 995
Mileage Overall (km/liter)
Seating Capacity (person) 5 5
No of Doors 4 4
Displacement (cc) 1586 1297
Power (PS@rpm) 102@5500 70@5500
Torque ( Nm@rpm) 145@4200 105@2500
Transmission Type Manual Manual
Gears 5 5
Minimum Turning Radius (meter)
5.3 5
Tyres 205/60 R16 175 / 70 R13
Competitor’s analysis
Target Audience Early 30’s to Late 40’s
Positioning Driving Comfort, Fuel Efficiency
Performance VTEC Engine
Price range Rs. 716,200 to Rs. 845,200
Market share Highest in mid-size car segment
Weaknesses Highly priced with less features
PERSONAL SELLING:
CONSUMER BUYING BEHAVIOR
CONSUMER BUYING vs. ORGANIZATIONAL BUYING
Final (or ultimate) consumers purchase for:
· Personal,
· Family, or
· Household use
Organizational consumers purchase for:
· Further production,
· Usage in operating the organization, and/or
· Resale to other consumers
Consumer Buying Behavior
The decision processes and acts of final household consumers associated with evaluating,
buying, consuming, and discarding products for personal consumption
Consider the purchase an automobile. You generally will not consider different options until
some event triggers a need, such as a problem needing potentially expensive repair. Once
this need has put you "on the market", you begin to ask your friends for recommendations
regarding dealerships and car models. After visiting several dealerships, you test drive
several models and finally decide on a particular model. After picking up your new car, you
have doubts on the way home, wondering if you can afford the monthly payments, but then
begin to wonder if instead you should have purchased a more expensive but potentially
more reliable model. Over the next five years, the car has several unexpected breakdowns
that lead you to want to purchase a different brand, but you have been very happy with the
services of the local dealership and decide to again purchase your next car there.
In this particular case, the following generic model of consumer decision making
appears to hold:
=====>need recognition
=====>information search
=====>evaluation of alternatives
=====>purchase decision
=====>post purchase behavior
Now consider the purchase of a quart of orange juice. You purchase this product when you
do your grocery shopping once per week. You have a favorite brand of orange juice and
usually do your grocery shopping at the same store. When you buy orange juice, you
always go to the same place in the store to pick it up, and never notice what other brands
are on the shelf or what the prices of other brands are. How is it that the generic model
above works differently in this second scenario? Why does it work differently? Why would
we generally need the ministrations of a sales person in the sale of a car, but we generally
do not need the help of a salesperson in the purchase of orange juice?
How can the marketer of orange juice get a consumer like you to exert more effort into
information search or to consider alternative products? How is it that the marketer of your
brand got you to ignore alternative competing brands? What is the involvement of
salespeople in sales promotions that might be associated with products such as orange
juice?
Consumer behavior researchers are not so interested in studying the validity of the above
generic model, but are more interested in various factors that influence how such a model
might work.
INFLUENCES ON THE GENERIC MODEL
External
Group
-e.g., cultural, family, reference group influence
Environmental/situational
-e.g., time of day, temperature and humidity, etc.
Inernal
lifestyle, personality, decision making process, motivation, etc.
GROUP INFLUENCES ON CONSUMER BEHAVIOR
Culture
The set of basic values, beliefs, norms, and associated behaviors that are learned by a
member of society.
Note that culture is something that is learned and that it has a relatively long lasting effect
on the behaviors of an individual. As an example of cultural influences, consider how the
salesperson in an appliance store in the U.S. must react to different couples who are
considering the purchase of a refrigerator. In some subcultures, the husband will play a
dominant role in the purchase decision; in others, the wife will play a more dominant role.
Social Class
A group of individuals with similar social rank, based on such factors as occupation,
education, and wealth.
Reference Groups
Groups, often temporary, that affect a person's values, attitude, or behaviors· E.g., your
behaviors around colleagues at work or friends at school are probably different from your
behaviors around your parents, no matter your age or stage in the family life cycle. If you
were a used car salesperson, how might you respond differently to a nineteen year old
prospect accompanied by her boyfriend from one accompanied by two girlfriends?
Opinion leader
A person within a reference group who exerts influence on others because of special skills,
knowledge, personality, etc.
You might ask the webmaster at work for an opinion about a particular software application.
Software manufacturers often give away free beta copies of software to potential opinion
leaders with the hope that they will in turn influence many others to purchase the product.
Family
A group of people related by blood, marriage, or other socially approved relationship.
Environmental / situational influences on consumer Behavior
Circumstances, time, location, etc
Do you like grapes? Do you like peas?
You might like grapes as a snack after lunch, but probably not as a dessert after a fancy
meal in a restaurant. You might like peas, but probably not as a topping on your pancakes.
Everyday situations cause an interaction between various factors which influence our
behaviors. If you work for tips (a form of incentive related to commission) as a waiter or
waitress, you must certainly be aware of such interactions which can increase or decrease
your sales.
If you are doing your Saturday grocery shopping and are looking for orange juice, you are
probably much more sensitive to price than if you stop at the quick store late at night, when
you are tired and cranky, after a late meeting at the office. A prospect shopping for a new
automobile while debating the wisdom of a necessary expensive repair to his car might be
more interested in what cars are on the lot than in shopping for the best deal that might
involve a special order.
Internal influences on consumer behavior
Personality
A person's distinguishing psychological characteristics that lead to relatively consistent and
lasting responses to stimuli in the environment We are each unique as individuals, and we
each respond differently as consumers. For example, some people are "optimizers" who
will keep shopping until they are certain that they have found.
The best price for a particular item, while other people are "satisfiers" who will stop
shopping when they believe that they have found something that is "good enough”. If you
are a salesperson in a retail shoe store, how might you work differently with these two
personalities?
Lifestyle and Psychographics
Lifestyle is a pattern of living expressed through a person's activities, interests, and
opinions.
Psychographics is a technique for measuring personality and lifestyles to
developing lifestyle classifications.
Motivation: Multiple motives
Consumers usually have multiple motives for particular behaviors. These can be a
combination of:
Manifest
Known to the person and freely admitted
latent
Unknown to the person or the person is very reluctant to admit
Note: different motives can lead to the same behavior; observing behavior is not sufficient
to determine motives.
What are the thoughts of John's friend?
What is John's manifest motive?
What might be his latent motive?
How might a salesperson discover these motives?
What features should a salesperson emphasize?
Involvement
Has to do with an individual's
intensity of interest in a product and the
importance of the product for that person
The purchase of a car is much more risky than the purchase of a quart of orange juice, and
therefore presents a higher involvement situation. This modifies the way that the generic
model works.
As involvement increases, consumers have greater motivation to comprehend and
elaborate on information salient to the purchase. A life insurance agent, for example, would
typically be more interested in contacting a young couple who just had a baby than an
eighteen year old college student - even though the new parents might be struggling to
make ends meet while the student is living more comfortably. Although the annual
investment into a policy is much lower if started at a younger age, most young college
students are not open to thinking about long term estate planning. A young couple with a
new child, however, is much more open to thinking about issues associated with planning
for the child's future education, saving to buy a house, or even saving to take an extended
vacation upon retirement.
TYPES OF CONSUMER PROBLEM-SOLVING PROCESSES
Routinized
used when buying frequently purchased, low cost items
used when little search/decision effort is needed
e.g., buying a quart of orange juice once per week
Limited Problem Solving
Used when products are occasionally purchased.
Used when information is needed about an unfamiliar product in a familiar product
category.
Extended problem solving
Used when product is unfamiliar, expensive, or infrequently purchased.
e.g., buying a new car once every five years.
Under what sorts of conditions the assistance of a salesperson would be needed? Not
needed?
POST-PURCHASE CONSUMER BEHAVIOR
Satisfaction
After the sale, the buyer will likely feel either satisfied or dissatisfied. If the buyer believes
that s/he received more in the exchange than what was paid, s/he might feel satisfied. If
s/he believes that s/he received less in the exchange than what was paid, then s/he might
feel dissatisfied.
Dissatisfied buyers are not likely to return as customers and are not likely to send friends,
relatives, and acquaintances. They are also more likely to be unhappy or even abusive
when the product requires post-sale servicing, as when an automobile needs warranty
maintenance.
The above idea can be modeled as Homans' basic exchange equation:
Profit = Rewards - Costs
Unfortunately, even a buyer who "got a good deal" with respect to price and other terms of
the sale might feel dissatisfied under the perception that the salesperson made out even
better .
This idea is called equity theory, where we are concerned with:
Outcomes of A
Inputs of A
vs.
Outcomes of B
Inputs of B
Consider, for example, that you have purchased a used car for $14,000 after finding that
the "e:blue book" value is listed at $16,000. You are probably delighted with the purchase
until you accidentally meet the prior owner who had received a trade-in of $10,000 on the
car just a few days before. That the dealer appears to have received substantially greater
benefit than you could lead to extreme dissatisfaction, even though you received good
value for the money spent.
(Note that the selling dealer might actually have paid $12,000 for the car at a statewide
dealer's auction, and then might have incurred another $1,000 in expenses associated with
transporting the car and preparing it for sale. Management of buyer perceptions is very
important!)
An issue related to this is attribution theory. According to attribution theory, people tend to
assign cause to the behavior of others. Mary's life insurance agent advises her to purchase
a whole life policy, while her accountant advises her, "buy term insurance and invest the
difference.” The reason, explains the accountant, "is that insurance agents receive
substantially higher commission payments on sales of whole life policies."
If Mary believes that the insurance agent is recommending a product merely because he
receives a higher commission, she will likely be displeased with the relationship and will not
take his recommendation. If the agent is able to show Mary that the recommended product
is the best solution for her situation, then she will likely attribute his recommendation to
having her best interests in mind and will not be concerned about how it is that he is
compensated for his services.
Cognitive dissonance
It has to do with the doubt that a person has about the wisdom of a recent purchase
It is very common for people to experience some anxiety after the purchase of a product
that is very expensive or that will require a long term commitment. Jane and Fred, for
example, signed a one year lease on an apartment, committing themselves to payments of
$1500 per month. A week later, they are wondering if they should have instead leased a
smaller $900 apartment in a more rough part of town; they are not sure if they really can
afford this much of a monthly obligation. Dick and Sally, on the other hand, ultimately rented
the $900 apartment, and now are wondering if the savings in rent will be offset by noisy and
sometimes unsafe conditions in this neighborhood.
Perhaps neither couple would be experiencing this anxiety if their landlords had given them
just the smallest of assurances that they had made a good decision. After a close on
products that are expensive or that require a long term commitment, the salesperson
should provide the prospect with some reasons to be happy with the decision. Allow the car
buyer to reinforce her own positive feelings by calling her a week after the purchase to ask
how things are going. Call the new life insurance policy holder after two months to see if
there are any questions; a lack of questions can only help the buyer to convince himself
that he did the right thing.
Appendix
Questionnaire
Section 1
1. Name: ……………………………………………………………………………………….
2. Date: ………………………………………………………………………………………...
3. Sex:
Male
Female
4. Age:
18-30years
30-50years
Above 50 years
5. Profession:
Government Employee
Businessmen
Private sector employee
Professional
Student
Any Other
6. Monthly Income:
Rs. 10,000 – Rs. 20,000 Rs. 20,000 – Rs. 30,000
Rs. 30,000 – Rs. 40,000 Above Rs. 40,000
Section 2
7. Which passenger vehicle do you have?
SUV Car
MUV any other specify…………………………………………………
8. Which Mid-size luxury car would you prefer to buy?
Ford Ikon SX4 Fiat Linea
Hyundai Verna TATA Indigo Ford Fiesta
Swift Dezire Chevrolet Aveo
9. Which feature of SX4 attracts you most, that inspires you to go for SX4?
Price Interior
Design Engine power
All Above Can’t Say
10. Which color of SX4 would you prefer?
Metallic clear beige Pearl metallic arctic white Metallic sunlight copper
Metallic azure grey Metallic silky silver Metallic midnight Black
11. Do you think SX4 is premium car?
Yes No Can’t Say
12. Will you recommend SX4 to your friends and relatives?
Yes No Can’t Say
13. How will you feel if SX4 is used as taxi?
Embarrass Don’t care Can’t say
14. Can you trust SX4 for safety?
Yes No Can’t say
15. From which source you get the information about SX4
Television
News Paper
Magazine
Friends
Relatives
Others
16.Rank following attributes of SX4 in order to preference given by you, while buying
SX4?
Brand Name
Shape/Design
Safety
Affordability
Comfort/ interior
Bulbous rear
17.Do you think that purchase decision of SX4 enhance your status?
Yes
No
18. For what purpose would you like to use SX4?
Will offer to you use for business purpose
Will use as family car
Will prefer as taxi
Would like to offer as gift
For any other reason
19.Do you think that SX4 is a dream car of yours?
Yes No Can’t say
20. On what occasion would you like to buy SX4?
Dewali Eid
Dhanteras New Year
Marriage Navratra
21.Which car you are using now?
Small car sedan car
Multi utility vehicle sports utility vehicle
Super luxury car any other
Place: …………….. ……………….
Date: ……………… Signature
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