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AUTOMOBILE INDUSTRY
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. 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. ollowing the economic reforms of !""! the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed restrictions.
The monthly sales of passenger cars in India exceed !##,### units
Tata $otors launches its first truc% in collaboration with $ercedes&'en(.
History
In !")*, the government of India and the Indian private sector initiated manufacturing processes
to help develop the automobile industry, which had emerged by the !"+#s in a nascent form.
'etween !"# to the economic liberali(ation of !""!, the automobile industry continued to grow
at a slow pace due to the many government restrictions. A number of Indian manufactures
appeared between !"#&!"-#.apanese manufacturers entered the Indian mar%et ultimately
leading to the establishment of $aruti /dyog. A number of foreign firms initiated joint ventures
with Indian companies.
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Challenes !a"ed by Indian Automoti#e Industry in the ne$ ae
The Indian automotive industry has been facing new challenges due to the rapid changes ta%ing
place during the last decade. This article discusses those challenges and initiatives ta%en by the
government to overcome them.
The Indian auto industry is changing rapidly. 0uring the last decade, many international auto
manufacturers, either by themselves or in partnership with Indian companies, have started
manufacturing activities in India. The ancillary industries have also grown in tandem. The
1uality of production in small& and medium&scale industries has improved to such an extent that
they started exporting products to international manufacturers. The major brea%through of recent
years is the unveiling of 3ano by Tata $otors during the auto expo 2##. This has received
worldwide attention and proved that India can not only design an automobile of international
standards but also execute the project at a much lower cost through innovative choice of
components, materials, engine design etc.
These developments in the auto sector have given new confidence to everyone related to the auto
industry and specifically to the government which resulted in the announcement of the Auto
4olicy 2##5&2#!5 by the $inistry of 6eavy Industries. According to the Auto 4olicy, the Indian
auto sector is expected to grow to /78 2!5 billion by 2#!5 and add 2.) million new jobs to theeconomy. 9very year two to three million people are expected to purchase new vehicles. 7everal
million vehicles and components are expected to be exported to both developed and developing
nations. To achieve these goals, it is important that the present :04 growth rate, which is more
than - per cent, continues to remain at the same level for the next -&!# years. The government is
also giving some concessions to the auto industry. To reali(e the above growth predictions, it is
important to overcome various challenges the industry is facing currently. Two of the foremost
challenges are the spiraling cost of fuel and the paucity of highly s%illed manpower.
Risin oil %ri"e
International price of crude oil has crossed /78 !2# per barrel and is rising at an alarming rate.
The forecast of mar%et experts that the crude oil price will plateau around /78 !## per barrel has
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been proved wrong. The s%yroc%eting crude oil price rise will affect the economic growth of
most of the nations of the world including India. The prospects of India and ;hina of becoming
economic superpower will be seriously affected. Also, the rise in oil prices will impact the
growth of global automotive industry. /nless the use of alternative fuels increases, it is very
unli%ely that the situation will change for the better.
This necessarily means that more and more investments should be directed towards
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&ISTORY
&onda Motor Com%any' Ltd( is a apanese multinational corporation primarily %nown as a
manufacturer of automobiles and motorcycles. 6onda is the world>s largest manufacturer of
motorcycles as well as the world>s largest manufacturer of internal combustion engines measured
by volume. 6onda surpassed 3issan in 2##! to become the second&largest apanese automobile
manufacturer.
6onda was the first apanese automobile manufacturer to release a dedicated luxury brand in
3orth America with the debut of Acura in !"-5. Aside from their core automobile and
motorcycle businesses, 6onda also manufactures garden e1uipment, marine engines, personal
watercraft and power generators, amongst others. 7ince !"-5, 6onda has been involved with
artificial intelligence?robotics research and released their A7I$@ robot in 2###. They have also
ventured into aerospace with the establishment of :9 6onda Aero 9ngines in 2##+ and the
6onda 6A&+2# 6onda et, scheduled to be released in 2#!!.
rom a young age, 7oichiro 6onda had an interest in automobiles. 6e wor%ed as a mechanic at a
apanese tuning shop, Art 7ho%ai, where he tuned cars and entered them in races. A self&taught
engineer, he later wor%ed on a piston design which he hoped to sell to Toyota. The first drafts of
his design were rejected, and 7oichiro wor%ed painsta%ingly to perfect the design, even going bac% to school and pawning his wife>s jewelry for collateral. 9ventually, he won a contract with
Toyota and built a factory to construct pistons for them, which was destroyed in an earth1ua%e.
0ue to a gas shortage during orld ar II, 6onda was unable to use his car, and his novel idea
of attaching a small engine to his bicycle attracted much curiosity. 6e then established the 6onda
Technical s largest manufacturer of motorcycles by !"5*.
The first production automobile from 6onda was the T*5# mini pic%&up truc%.4owered by a
small *)5 cc straight&+ gasoline engine, it was classified under the cheaper Bei car tax brac%et.
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The first production car from 6onda was the 7)## sports car.Its chain driven rear wheels points
to 6onda>s motorcycle origins.
&onda is head1uartered in $inato, To%yo, apan. Their shares trade on the To%yo 7toc%
9xchange and the 3ew Cor% 7toc% 9xchange, as well as exchanges in @sa%a, 3agoya, 7apporo,
Byoto, u%uo%a, Dondon, 4aris and 7wit(erland. American 6onda $otor ;o. is based in
Torrance, ;alifornia. 6onda ;anada Inc. is head1uartered in the 7carborough district of Toronto,
@ntario, and is building new corporate head1uarters in $ar%ham, @ntario, scheduled to relocate
in 2##-E their manufacturing division, 6onda of ;anada $anufacturing, is based in Alliston,
@ntario. 6onda has also created joint ventures around the world, such as 6onda 7iel ;ars and
6ero 6onda $otorcycles in India , :uang(hou 6onda and 0ongfeng 6onda in ;hina, and
6onda Atlas in 4a%istan.
6onda is the 5th largest automobile manufacturer in the world as well as the largest engine&
ma%er in the world, producing more than !+ million internal combustion engines each year. As
of August 2##-, 6onda surpassed ;hrysler as the +th largest automobile manufacturer in the
/nited 7tates. ;urrently, 6onda is the second largest manufacturer in apan behind Toyota and
ahead of 3issan.
6onda, 3issan, and Toyota, three of the strongest vehicle companies in the world, were still not
immune to the global financial crisis of 2##-, as these companies reduced their profitability
forecasts. The economic crisis has been spreading to other important players in the vehicle
related industries as well.
6onda spends about )F of its revenues into
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)&ILOSO)&Y
6$7I operates on a principle, which is followed worldwide by all 6onda companies.
$aintaining a global viewpoint, we are dedicated to supplying products of the highest
1uality, yet at a reasonable price for worldwide customer satisfaction. 6onda>s
philosophy is based on the company>s guiding principle and advocates 2 fundamental
beliefsG
Res%e"t !or the Indi#idual
6onda recogni(es and respects individual differences. The respect for individual
stems from the following three pointsG
H Initiative
H 91ualityH Trust
It is the contribution from each individual in the company that has made our
company what it is today and that, which will ta%e us into the future.
The Three oys
In line with 6onda>s 4hilosophy, 6$7I conducts all its daily activities in pursuit of the following joysG
H The joy of manufacturing high 1uality products.
H The joy of selling high 1uality products.
H The joy of buying high 1uality products.
The oy of 'uying The oy of 7elling The oy of $anufacturing
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OB*ECTI+ES
$aintaining an international viewpoint, we are dedicated to supplying products of the
highest efficiency, yet at reasonable prices, for worldwide customer satisfaction. !")5J To ma%e good adverts, and great motorcycles... and the occasional good car...
and %eep the shareholders happy...
To minimi(e the defect.
To $inimi(e the Accidents.
To see the consumer complaints will be (ero.
To %eep the environment pollution free.
$aximi(e capital utili(ation.
Increase production capacity.
Increase plant availability.
$inimi(e indirect and direct loses
9fficient use of resources.
9ffective use of all employees.
Training for all.
9nsure empowerment and improvement of department.
9stablish the sustain document 1uality management system.
;ompliance with relevant legislation and regulation
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OR,ANI-ATION STRUCTURE .as o! A%ril /'0112 3
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4INANCIAL &I,&LI,&TS
6onda $otor ;o., Dtd., and 7ubsidiaries Cears ended $arch *!J
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A5ARDS
2##" Aviator 7cooter of the
CearKigwheels.comJ
;' 7tunner $otorcycle of the Cear !2)ccJ
Kigwheels.comJ
;' 7tunner 2##" 7tunner 30TL 4rofit
Award2##" & 'i%e of the Cear
2##- Activa ;3'; TL M Auto ;ar NA/T@
AA
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2##) /nicorn $otorcycle of the Cear 2##)
'.7.$otoring=
AutocarJ
/nicorn T37 Loice of the ;ustomer
Award T37J9terno 7cooter of the Cear 2##)
'.7.$otoring
= @verdriveJ
2##+ 9terno 'est 7cooter of the Cear by '. 7.
$otoring = I;I;I 'an%,
@verdrive $aga(ine
2##* 0io 7cooter of the Cear 2##*
'';J
2##2 Activa 7cooter of the Cear by @verdrive
$aga(ine
2##! Activa 7cooter of the Cear 2##! '7
$otoringJ
)RODUCT )RO4ILE
There are #arious %rodu"t o! &onda motors $hi"h are as !ollo$ as67
UNICORN '9 A I3:
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/nicorn is powered by a newly developed 6onda +&stro%e, !)#cc engine and incorporates many
cutting&edge technologies developed by 6ondaPs global
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Ingeniously designed M the all new Activa is made for you to go miles, to do things and to
go places. ith your loved ones. 0eveloped on 6onda>s globally tested engineering
technology, it comes with a host of new features. The seats maximi(es riding comfort.
Thus offering you a smooth ride. 4erfect in design and technology, the all new Activa is
more than just a scooter. ith an increased mileage of !)F, it allows you to enjoy your
rides, no matter how long they are. 7o now you can enjoy life without stopping. 7tep
onto your all new Activa, spread the joy with your loved ones, and go on and on.
Desin6onda Activa was the first scooter launched by 6onda in India. It has been designed as a family
two&wheeler and features higher load carrying capacity. 3ow, 6onda India has come up with all
new Activa with major styling changes all around.
6onda new Activa gets a redesigned front and rear section. The front is dominated by curvy and
aerodynamic styling with redesigned headlamps. ;lear lens turn indicators dominate the rear.
6onda has used impact resistant A'7 plastic panels to reduce the overall weight of the two&
wheeler.
4ollo$in "hanes8additions ha#e been made in ne$ A"ti#a6
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•
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9xuding style from the word go, the Aviator is for those who don>t have to try hard to
impress. Topped up with classy features, it adds to your 1uotient in more ways than one.
Ces, the Aviator is here. And it>s time for you to arrive. In style.
DIO
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0I@ M IndiaPs first motoscooter is named after the son of Lenus R0yonisiacP, also %nown as
;upid, the :od of Dove. 0I@ is set to add passion and excitement with its stunning loo%s and
performance, by incorporating the latest world trends that
ma%e it a scooter that is much ahead of its time.
@ne loo% at 0I@ will tell you itPs more an accessory than a mere convenience. As IndiaPs first
motoscooter, it blends the loo%s of a motorcycle with the comfort of a scooter. 0I@ heralds the
dawn of twoMwheeler fashion. And if loo%s are anything to
fall for, this is a treat. The bodyMmounted headlamp and slee% indicators leap right off the front.
Ample legroom gives you an elegant poise. The body tapers into the taillight and yet continues
to draw attention.
The 0I@ is complete in itself. ;utting edge technology and style have been brought together in
such a way as to ma%e it an engineering marvel. 7o, you can ride assured that a bi%e doesnPt get
or loo% any better.
@f course, this 1ualifies us to have the last word on style. If there ever existed an attention
magnet, this is it.
OB*ECTI+E O4 STUDY67
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To %now the awareness level in the mar%et for the Activa !!#
To analy(e the customer satisfaction.
To analy(e the customer preference.
To estimate the mar%et potential and perception towards N6@30AO.
This study helps to chec% the efficiency of dealers.
This study helps the company to ta%e corrective decision regarding mar%eting. This study also helps in evaluating the effectiveness of various brands of
different company. This study helps the company to ta%e corrective decision regarding mar%eting.
This study helps the company to %now their actual position in the mar%et.
This study ensure the availability of the product in the mar%et.
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Research Design
ExploratoryConclusion
CasualDescriptive
Observati
on
Survey Experimen
t
RESEARC& MET&ODOLO,Y
It is well %nown fact that the most important step in mar%eting research process is to define
the problem. ;hoose for investigation because a problem well defined is half solved. That
was the reason that at most care was ta%en while defining various parameters of the problem.
After giving through brain storming session, objectives were selected and the set on the base
of these objectives. A 1uestionnaire was designed major emphasis of which was gathering
new ideas or insight so as to determine and bind out solution to the problems .
RESEARC& DESI,N
To conduct the mar%et research first of all it is necessary to create a research design. A research
design is basically a blue print of how a research is to be conducted, it may includeE
!. ;6@@7I3: T69 A44
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'asically there are * types of approaches used during the any researchG&
!. 9S4D@
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!. It was observed that the most of the customers were not playing 4roper attention
to fill the 1uestionnaire2. The research is confined to a certain parts of ADI:A
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RESPONDENTS
Yes 84 81%
No 20 19%
Total 104 100%
INTER)RETATION
• -!F of the respondents are owner of two&wheeler.
• !"F of the respondents are not owner of two&wheeler.
• In this case all of those who have two&wheeler have responded.
.! (b) Model Name: Make:
RESPONSE NO. OF
RESPONDENTS
SARE !"#
Yes 29 28%
No 75 72%
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Total 104 100%
INTER)RETATION
• 2-F of the respondents are owner of 6ondaPs two&wheeler.
• 2F of the respondents are not owner of 6ondaPs two&wheeler.
• In this case we %now that 2-F of population is the user of 6ondaPs two&wheeler.
.2J 6ave you heard about the new Activa $odelU
Ces 3o
RESPONSE NO. OF SARE !"#
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RESPONDENTS
Yes 78 75%
No 26 25%
Total 104 100%
INTER)RETATION
• )F of the respondents are aware about 3ew Activa.
• 2)F of the respondents are not aware about 3ew Activa.
• In this case we found that )F of population is %nown about the 3ew Activa.
.*J hat do you %now about 3ew Activa in terms of 4erformance features, 'randU
3o Idea !!#cc 6onda'rand
!)F more $ileage Darge under seat box
Tuff /p Tube @thers&&&&&&&&&&&&&&&&&&
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NO. OF
RESPONDENTS
SARE !"#
No Idea 17 11%
110 cc 40 25%
Honda Band 45. 28%
!oe "#leage 15 10%
$age eat Bo& 15 10%
T'( ') t'*e 26 16
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@thers # #F
I3T9
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I3T9
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RESPONDENTS
Yes 11 11%
No 93 89%
Total 104 100%
93T9
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RESPONSE NO. OFRESPONDENTS
SARE !"#
at#s+ed 26 25%
,e- sat#s+ed 10 10%
#ssat#s+ed 17 16%
,e- #ssat#s+ed 0 0%
/ant sa- 51 49%
Total 104 100%
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• *)F
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• 6onda should ta%e into account this benchmar%ing very carefully and should wor% to
maintain its position
• 6onda should %eep on underta%ing promotional Activities and awareness building
programme, so that awareness of the people about the Activa will be increased.
• 6onda should also pay attention to customersP feedbac%. 9ven if a customer does not
give feedbac% himself?herself, he?she should be called up to %now his?her feedbac% about
the product and services offered. @nly through this, the company can modify its products
and grow with customersP love and faith
• Dast but not the least, 6onda should wor% on the suggestions given by the respondents.
Con"lusion67
@ur in&depth research in the field of Automobile threw up some interesting trends which can
be seen in the above analysis. A general impression that we gathered during 0ata collection
was the huge awareness and %nowledge among people about 6onda and 3ew Activa also
various companies and their two&wheeler products..
4eople in general have been impression by the mar%eting and advertising campaigns
of two&wheeler companies. A high penetration of print, radio and Television ad
campaigns over the years is beginning to have its impact now. Another heartening trend was in terms of people viewing 3ew Activa as a Dady
7cooter and its only for wor%ing woman. 'ut Activa is for both lady and man. Activa
is for multipurpose use.
The general satisfaction levels among public with regards to products and 0ealers
still re1uires improvement. Activa is well %nown product of 6onda and give the base to 6onda in Indian mar%et..
6onda captures a big part of mar%et through this model. Awareness of active is
through its performance, colors, specification and style. Also because of 7ervice =
7pare parts are available throughout India in local mar%ets also.
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BIBLIO,RA)&Y
!. BOO;S8MA,A-INES RE44ERED6
$A
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.)J hich @ne of the above activity prompted you to en1uire more about 3ew ActivaU
!. 2. *.
.5J 6ave you thought of buying 3ew ActivaU
3o Ces
I! Yes'
by $hen hy = hat all did you li%e in 3ew Activa
I! No '
by $hen hy = hat all did you not li%e in 3ew Activa
.J 0o you rate the satisfaction level of 3ew Activa on this )pt scaleU
Lery 7atisfied 7atisfied ;anPtsay
0issatisfied Lery 0issatisfied
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VVIf the answer is 0issatisfied or Lery 0issatisfied ,note address = contact for resolving the
issue
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.-J any suggestions for improvementU
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VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV
VV..
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4hotograph of showroom and othersG&
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