study on secondary car market of maruti, toyota, hyundai

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Study on secondary car market of Maruti Suzuki, Hyundai & Toyota

Study on secondary car market of Maruti Suzuki, Hyundai & Toyota

Chapter 1INTRODUCTION

1. INTRODUCTION

Automotive industry is one of the larger markets in the world. It is one of the firmest rising markets in the world especially in India. The automobile industry, one of the core sectors, has undertaken conversion with advent of new business, technology and manufacturing technique in the presence of globalization and liberalization the sector seems to be optimistic of posting strong sales in the next few years in view of a reasonable rush in demand. India is one of the worlds largest automobile industries. Easy accessibility of finance and growing income levels are inspiring the middle class population to upgrade their two wheelers to a car or to purchase new car or two wheelers. Besides, the increasing organized used car market has also been a positive development factor in the used car market of the country. Now there are lot of un organized and organized players to promote this segment. India is now becoming a manufacturing midpoint of high-end vehicles meant for transfer to China recently ford has started one engineering unit in Chennai. The US-based motorbike maker Harley Davidson, Austrian motorcycle manufacturer KTM and Mahindra & Mahindra have also favored to set up manufacturing facilities in India than in the relatively low-cost China and export the production.Indias vehicle manufacturing is stands in sixth position in the world with an annual manufacturing of 3.9 million units in 2011. Currently India is the 3rd largest exporter of car in Asia.As of 2010, India accommodating 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year.According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as formerly projected.The majority of India's car manufacturing industry is based around three areas in the west, south, and north. Chennaiis the major with 35% of the revenue share in the southern hub. The western hub nearMumbaiandPuneprovides to 33% of the market and the northern hub around theNational Capital Regioncontributes 32%.Chennai, houses the major processes of all big car manufactures. Chennai accounts for 60% of the country's automotive exports.GurgaonandManesarinHaryanaform the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is founded. TheChakancorridor nearPune,Maharashtrais the western cluster with companies like,Skoda,Mahindra and Mahindra,Tata Motors,General Motors, Volkswagen Mercedes Benz,Land Rover,Jaguar Cars,FiatandForce Motorshaving assembly plants in the area.Nashikhas a major base of Mahindra and Mahindra with a SUV assembly unit and an Engine assembly unit. AurangabadwithSkodaandVolkswagenalso forms part of the western cluster. Another emerging cluster is in the state ofGujarat with manufacturing facility ofGeneral MotorsinHaloland further planned forTata Nanoattheir plant inSanand. Ford, Maruti Suzuki and Peugeot-Citroenplants are also set to come up in Gujarat.In India, the automobile industry themself provides straight employment to more than 5 lakh persons. It pays 4.8 per cent to Indias GDP and 19 per cent to Indias indirect tax revenue. Till early 1980s, there were very limited players in the Indian auto sector like Hindustan motors, Premier etc, which was suffering from low volumes of production, outdated and deficient technologies. With de-licensing in the 1980s and opening up of this sector to FDI in 1993, the sector has developed rapidly due to the entry of global players.A quickly growing middle class, rising per capita incomes and comparatively easier availability of finance have been driving the vehicle demand in India, which in turn, has prompted the government to invest at extraordinary levels in roads infrastructure, including projects such as Golden Quadrilateral and North-East-South-West Corridor with feeder roads.The above statistics explains the situation of new cars in Indian market. However, used cars are also being sold like hotcakes. Used car segment has emerged as one of the major industries in India. According to a latest analysis, the yearly used-car demand in the Indian market is around 1.4 million cars. To benefit from the flourishing trend, leading organized manufacturers like Automart india Ltd and Maruti's True Value have made a venture into the used- car business. Unlike other unorganized companies, they offer guarantee of accurate ownership and accident certification to their customers and sellers along with superior quality and benefits like warranty period and free repair services. In the past few years around 55 latest used cars models have been launched in India. Many car owners want to replace their present vehicles with the newer brands. Thus used-car market has been generating large revenue. There are various criteria applied in the market in selling of the used-cars. Any person thinking to buy used-car does so primarily with the intention of investing fewer amounts which otherwise he would have to pay for the newer-one. Predominantly, the pricing consideration is based on the year of make according to the market trend. Of course other factors are also involved in the entire process of the transaction.

Chapter 2PROFILE OF THE ORGANIZATION

2.1 MARUTI SUZUKI

Maruti Suzuki India Limitedis an automobile company and it is formerly known as Maruti Udyog Limited and it is the subsidiary unit of Japanese automobile and motorcycle manufacturerSuzuki. Up to 2012 they had a market share of 37 percentage of Indian passenger car market. Maruti Suzuki company started out in 1982 in Gurgaon, Haryana. Little did the then silent suburb of New Delhi know, that it was going to become the epicenter of the automobile mutiny in India. The year marked the birth of the Maruti Suzuki factory. India turned out 40,000 cars every year. The new Maruti Suzuki 800 hit the streets to begin a whole new chapter in the Indian automobile industry.Maruti suzuki set out with an obsession for customer delight, one that was unheard in the corridors of automobile manufacturers then. It was about a commitment to create value through innovation, quality, creativity, partnerships, openness and learning. It created a road that was going to lead the world in to a whole new direction, laid out by Maruti Suzuki.Today, Maruti Suzuki alone makes 1.5 million Maruti Suzuki family cars every year. Thats one car every 12 seconds. Maruti Suzuki drove up head and shoulders above every major global auto company. Yet Maruti Suzuki story was not just about making a mark. It was about revolutionary cars that delivered great performance, efficiency and environment friendliness with low cost of ownership. Thats what Maruti call true value. Maruti Suzuki built their story with a belief in small cars for a big future. Their story encouraged millions of Indians to make driving a way of life. India stepped up with their vision to take on the fast lane. A comradeship had begun. Something incredible had begun.A team of over 9000 dedicated and passionate professionals that turned out 14 cars with over 150 variants. The drive is backed up by a nationwide service network spanning over 1422 cities and towns and a sales network that spreads across 980 cities, 2 state of the art factories. A diesel engine plant with a capacity upped to turn out 7 lakh diesel cars a year. And a commitment to road safety to make Indian roads safer. 18.28% of Maruti Suzuki company was owned by the Indian government, and 54.2% owned by Suzuki company of Japan. In 2003 25% of company shares are sold by initial public offering by the BJP government. As of May 2007, the government of India sold its 18.28% of ownership to Indian financial institutions and now government of India doesnt have any stake in Maruti Udyog. HISTORYMaruti udyog limited is shortly known as MUL was established in the year 1981 but the actual production was started only in the year 1983 and their first car was Maruti 800. It was the only modern car available during at that time and their competitor during at that time was Hindustan Ambassador and premier padmini both of those companies were 25 years out of date at that point of time.BEGINNINGSMarutis history begins in 1970 when they started a private limited company named Maruti technical services and it is shortly known as (MTSPL). The main purpose of this company was to design and manufacture a wholly indigenous motor car. In 1971 a company called Maruti limited was incorporated under the leader ship Sanjay Gandhi and he is also became the first managing director of Maruti limited. Unfortunately in the year 1977 the company goes to liquidation. A year after the death of Sanjay Gandhi in 1978 with the help of his mother Indira Gandhi a new company called Maruti Udyog Ltd incorporated.Suzuki entersIn the year 1982 a Joint Venture Agreement is signed between Suzuki of Japan and Maruti udyog limited. Initially Suzuki imported car from Japan later they decided to use only 33% indigenous parts. This upset the local manufactures like Hindustan Motors, Premier Padmini etc. Even the Govt of india promote Maruti by adjusting the petrol Tax and lowering the excise duty and all. Finally in the year 1983 Maruti introduced a new model called Maruti 800 and it was huge success during at that time and this model was based on the SS80 Alto ad it was the first affordable car. Later in the year 1984 they introduced a model called Maruti van and after that 1985 they introduced another new model called Gypsy and it was based on Suzuki SJ410. In the year 1987 the company started exporting car to European nations and

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