A PROJECT REPORT On Analysis of The Pre-Owned Car Market in Hublli of TRUE VALUE

Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value
Section 1 Executive Summary
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Executive summary
Indian auto market is booming the auto manufacturers from all over the world are attracted by indian market for both,manufacturing and sell cars to indian and export market. Making the right choice while buying a used car is very important. Maruti Suzuki, India's favorite car company, understands you concerns regarding quality, documentation and value for money. That is why we ensure that the used car you buy from us has never had an accident and is free from defects or legal hassles. What you get is a car that is optimized for trouble-free performance and therefore needs minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's direct involvement, which includes thorough checks, a complete reconditioning at state-ofthe-art Maruti Suzuki workshops and certification by a Maruti Suzuki Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified used car and make a wise investment.
Title of the project

"Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value"
Problem definition:
Maruti has come out with a concept of creating a new market for Pre Owned (second hand) cars which it calls True Value. Therefore Bellad Motors as a franchisee wants to know the opportunity it has in the market (Hubli- Dharwad) against the New Cars, and what strategies can be applied to attract the customers effectively.
NEED FOR THE STUDY:

As there are petty dealers in the Pre Owned Car market in Hubli- Dharwad it is important to learn about the Target Audience and the market. To know how has Maruti handled the Pre Owned market until now? To know what the market share is? To understand and work on the gaps, if any.
Objective:
To know and study/analyses the effectiveness of second hand car sales by Maruti Suzukis True Value concept through its dealer Bellad Motors in Hubli city.
Sub Objectives To know the nature of the market for used cars in the Twin Cities. To enumerate the various players for used cars in the Twin cities. To enumerate the various reasons for customers opting a used car. To find out the awareness/ knowledge level of customers on the concept of True Value offered by Bellad Motors. To access the impact of promotional activities on the sale of used cars.
Methodology:
Research Approach Exploratory research Exploratory research is concerned with discovering the general nature of the problem and the variable that relate to it. Exploratory research is characterized by high degree of feasibility and it tends to rely on secondary data. Data collection approach To carry out this research, primary data and secondary are collected. Primary data (survey data)
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Systematic collection of information directly from respondents. This data is collected for the descriptive research. The survey data collected during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behavior. Secondary data The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, website, directories, and external experts.
Measurement Technique
Questionnaire:For the purpose of this project self-administered questionnaire to potential customers and for standard commercial business enterprises located in Hubli Dharwad city. Analysis of DATA Data are useful only after analysis. Data analysis involves converting the series of data recorded observations into descriptive statements. The survey will carried out in Hubli-Dharwad city, and the sample size was 100.The information gathered is transferred to a SPSS coding sheet, interpretation.
Findings
Professionals:
cars 54 % of Respondents came to know about uncertified dealers through Advertisements and33 % of Respondents came to know about uncertified dealers through Friends & Neighbours Out of 68% of sampling who dont own car, 31 % of Respondents wants to go for new car and 63 % of Respondents wants to buy pre owned car and 63% would buy it from uncertified dealers. 50 % of Respondents considers budget while buying pre-owned car and 40 % 40 % of Respondents heard about Maruti True Value Remaining 60% heard it from Advertisements, friends/neighbours 58% say they would not buy from True Value of Respondents considers milage while buying pre-owned car, 36 % of Respondents are of age 25-35, 37 % of Respondents are of age 35-45, 88 % of Respondents are male, 12 % of Respondents are Female 42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 % of 81 % of Respondents are Married 31 % of Respondents have one child and 38 % of Respondents have two 68 % of Respondents dont have their own car Out of remaining 32% of sample size 54 % of Respondents have Pre owned
23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater than 55
Respondents are under income Rs.1,50,000-Rs.2,00,000
children
Sample of Students:
The sample is non-localities 68% of them are staying here since more than 2 yrs. 56% get more than Rs 10,000/- as their monthly pocket money. 60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler. 80% out of the 40% owning a 4 wheeler, own a Pre-Owned Car. 70% have purchased it locally. 55% of the sample is interested in buying a car (pre- owned) for time being. 78% said they would buy from an Un-certified Dealer. Expected price range is- 83% said Rs 50,000- 75,000 53% are aware of the concept of Marutis True Value. 42% have heard it from news papers, and 0% from melas. 71% say they would not buy from Maruti True Value.
Sample of Dealers:
20 % are established in the market since 5-10 years and 50 % are since from 1015 years 50% use middlemen for sales. Promotion activities 60%- use news papers 40% - pamphlets 25%- Melas
70% consider festive season as peak point for sales.
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The average sales per year is- 60% said- 25-125 cars 30% said- 425- 525 cars 67% say customers look for budget 68% say customers look for age of the car 90% say customers look for mileage
Recommendations and Suggestions For the Professionals:

Target Segment- the target customers whom I suggest Bellad Motors should concentrate is the advocates, lecturers and petty business men, because they are the respondents who are keen in buying pre owned cars. The target can also be segmented age wise, 25-45 are the most interested segment in buying a pre owned car. Bellad Motors should make an effort to advertise and promote True Value through various mediums like news papers, melas and pamphlets. Mostly the age group of 25-35 is aware of the Marutis True Value concept. Family size influences in buying a car is proved through the Chi Square Test, therefore respondents of the lower income category can also be looked at, for the sales of the pre owned cars. Out of respondents who own pre owned cars, 98% bought it from a UnCertified dealer, this shows that people do not prefer buying pre- owned cars from certified dealers, therefore Maruti True Value should make an effort to change this mind set of the people in Dharwad city. When respondents were asked what have they heard of Maruti True Value, the responses were mostly negative. Price was the major issue they have with True Value. Pre-Owned is more of a sophisticated word for the localities; the other petty dealers have an upper hand on this front, as they use a much simpler and
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value an easily understood word second hand. Therefore I suggest that Bellad
considers this point. The Bellad showroom is what comes to peoples mind when asked if they have heard of Maruti True Value, it is because of the easy view from the highway.
For the students:

Most of the students want to buy a pre owned car from an un certified dealer, because of the price factor, therefore when targeting the students category lowering the price should be considered The expected price of the pre owned cars is from Rs 50,000- 75,000. The expected age of the car is mostly 3-5 yrs, which the company can consider these aspects when targeting the students. More than 50% of the students are not aware of the True Value concept, which again calls for advertisements from Bellad Motors. 61% of the students get more than Rs 10,000 as their pocket money, this signifies that it can be assumed the students are from well to do families and Bellad Motors can use this as a advantage and try perusing them. From the personal interaction with the students, the insights gained were, that the students go to these second hand car melas, and 0% 0f them have known or heard of True Value conducting melas, therefore I suggest that it be advertised properly. The awareness can be spread by using banners and displayed it in front of the college campus in the most attractive manner.
Industry profile
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value AUTOMOBILE INDUSTRY In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Industry Overview Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories: Cars, two-wheelers and heavy vehicles. 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.
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India is the fourth largest car market in Asia - recently crossed the 1 million mark.
Segment Know-how Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multi purpose vehicles. In utility vehicles Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. Miscellaneous Hyderabad, the Hi-Tech City, is going to come up with the first automobile mall of the country by the second half of 2008. It would be set up by city-based Prajay Engineers Syndicate in area of more than 35 acres. This 'Autopolis' would have facilities for automobile financing institutions and insurance services to create a complete range of services required for both auto companies and customers. It will also have a multipurpose convention centre for auto fairs and product launches.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value INDIAN AUTOMOBILE HISTORY During the 1920s, cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. In Brief The origin of automobile is not certain. In this section of automobile history, we will only discuss about the phases of automobile in the development and modernization process since the first car was shipped to India. We will start automotive history from this point of time. The automobile industry has changed the way people live and work. The earliest of modern cars was manufactured in the year 1895. Shortly the first appearance of the car followed in India. As the century truned, three cars were imported in Mumbai (India). Within decade there were total of 1025 cars in the city. The dawn of automobile actually goes back to 4000 years when the first wheel was used for transportation in India. In the beginning of 15th century Portuguese arrived in China and the interaction of the two cultures led to a variety of new technologies, including the creation of a wheel that turned under its own power. By 1600s small steam-powered engine models was developed, but it took another century before a full-sized enginepowered vehicle was created. The actual horseless carriage was introduced in the year 1893 by brothers Charles and Frank Duryea. It was the first internal-combustion motor car of America, and it was followed by Henry Ford's first experimental car that same year. One of the highest-rated early luxury automobiles was the 1909 Rolls-Royce Silver Ghost that featured a quiet 6-cylinder engine, leather interior, folding windscreens and hood, and an aluminum body. It was usually driven by chauffeurs and emphasis was on comfort and style rather than speed. During the 1920s, the cars exhibited design refinements such as balloon tires, pressed-steel wheels, and four-wheel brakes. Graham Paige DC Phaeton of 1929 featured an 8-cylinder engine and an aluminum body. The 1937 Pontiac De Luxe sedan had roomy interior and rear-hinged back door that suited more to the needs of families. In 1930s, vehicles were less boxy and more streamlined than their predecessors.
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INDUSTRY INVESTMENT According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements. Current Scenario
On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing 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.
The Indian automobile industry crossed a landmark with total vehicle production of 10 million units. Car sales was 8,82,094 units against 8,20,179 units in 2004-05. The two-wheeler market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05.
Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05.
Snippets

By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment. India, sourcing base for global auto majors. Passenger car and motorcycle segment is set to grow by 8-9%. The two-wheeler segment will clock 11.5% rise by 2007.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Why India The economy of India is emerging. The following table shows the ranking of India in the past four years. Rank 1 2 3 4 5 6 7 2005 China India Thailand Vietnam USA Russia Korea 2004 China Thailand India Vietnam USA Russia Indonesia 2003 China Thailand USA Vietnam India Indonesia Korea 2002 China Thailand USA Indonesia Vietnam India Korea
Twin Advantages:

Scaling costs Optimizing resources
INDIAN AUTOMOBILE INDUSTRY GROWTH The passenger car and motorcycle segment in Indian auto Industry is growing by 8-9 per cent. Facts & Figures India, in auto sector, is turning to be a sourcing base for the global auto majors. The passenger car and the motorcycle segment is set to grow by 8-9 per cent in coming couple of years, says the ICRA report. The industry is likely to maintain the growth momentum picked up in 2002-03. The ICRA's analysis points on the auto sector that the passenger car market in the country was inching towards cars with higher displacements. The sports-utility-vehicle (SUV) that was getting crowded everyday, would witness intense competition as many SUVs had been competitively priced, the report said. Honda, Suzuki, General Motors and Hyundai, the global automakers had already launched their premium SUVs in the market to broaden their portfolio and create product excitement in the segment estimated at about 10,000 units annually. Heavy commercial vehicles market would rise at 5.5 per cent and sales of light buses and
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value trucks would achieve 4.7 per cent growth. For the tractors, the report predicts a growth at 4.6 per cent. Indian Auto Market Growth for the year 2005-06
The domestic automobile industry sales grew 12.8 per cent at 89,10,224 units as against 78,97,629 units in 2004-05. The automotive industry crossed a landmark with total vehicle production of 10 million units. According to the Society of Indian Automobile Manufacturers (SIAM), car sales was 8,82,094 units against 8,20,179 units in 2004-05. The growth of domestic passenger car market was 7.5 per cent Car exports stood at 1,70,193 units against 1,60,670 units in 2004-05. The two-wheeler segment, the market grew by 13.6 per cent with 70,56,317 units against 62,09,765 units in 2004-05. Motorcycles had the upward march, 17.1 per cent in domestic market touching 58,15,417 units against 49,64,753 units in 2004-05. Scooter segment grew by 1.5 per cent, fall at 9,08,159 units against 9,22,428 units in 2004-05. Commercial vehicles segment grew at 10.1 per cent with 3,50,683 units against 3,18,430 units in 2004-05. Medium and heavy commercial vehicles managed a growth of 4.5 per cent against 23 per cent growth in the year ended March 31, 2005. Light commercial vehicles sales growth was 19.4 per cent at 1,43,237 units against 1,19,924 units in 2004-05. Three-wheelers sales rose by 17 per cent at 3,60,187 units against 3,07,862 units in 2004-05.
Auto Component Market
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The Indian auto parts industry is significantly fragmented with a large number of players having a turnover of less than US$10 million per year. The industry directly employs about 2,50,000 people and has an annual turnover over US$ 56.3 billion.

Estimated market size - US$ 6.7 bn Estimated market size by 2012 - US$ 17 bn Projected CAGR - 15%
Market Advantage

Fast paced urbanization to rise from 28% to 40% by 2020. Upward migration of household income levels. Middle class expanding by 30-40 million every year. Growing working population.
Vehicle Production in India India is the 11th largest Passenger Cars producing countries in the world and 4th largest in Heavy Trucks Indian Market Analysts are jubilant over the fact that India has the fastest growing automobile industry (passenger cars segment) in the world today. This is seen as the result of rapid increase of middle-class population in the country combined with the government's pro-development policies. The findings of International Organization of Motor Vehicle Manufacturers revealed that in India the car production had grown to 30% in 2004, thus leading the table, Brazil came a distant second with the increase of 17%. Automobile Industry is the largest industry in India with an impressive growth in the last two decades. The reason behind the growth was abolition of licensing in 1991 and permitting automatic approval and successive liberalization of the sector. According to estimation the compound annual growth rate (CAGR) of Indian Automobile sales will grow at 9.5% and will touch a mark of 13,008 million by 2010. The figure for FY05 was 8.45 million units. To tap this large opportunity, the Indian Auto Companies along with the global giants have announced huge expansion plans. Maruti Udyog Ltd. was the largest 4-Wheelers producer in 2005-06 followed by Tata Motors. Hyundai did well but the difference was nearly half of Tata Motors.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Production of 4-Wheelers Types of Vehicle Passenger Vehicles Utility Vehicles Multipurpose Vehicles Total 2002-03 557400 114470 51450 723320 2003-04 782550 146330 60670 989550 2004-05 960480 182020 67370 129870 2005-06 1045880 196380 66665 1308925
ANALYSIS OF THE CAR MARKET IN INDIA

The automotive industry is one of the largest industries worldwide and in India as well. The automotive sector drives upstream industries like steel, iron, aluminum, rubber, plastics, glass and electronics, and downstream industries like advertising & marketing, transport and insurance. The automotive industry can be divided into five sectors:

Passenger Cars Multi-Utility Vehicles (MUVs) Two-Wheelers Three-Wheelers Commercial Vehicles-Light Commercial Vehicles (LCVs) / Medium & Heavy Commercial Vehicles (M&HCVs) Tractors
Despite a head start since its beginning in the 1940s, the Indian automotive industry has been moving at a slow pace mainly due to the all-pervasive regulatory atmosphere prevailing till recently. Moreover, the industry was considered low-priority as cars were thought of as unaffordable luxury for the masses. In the post-liberalization period the passenger car sector witnessed a boom, owing to economic vibrancy, changes in government policies, increase in purchasing power, improvement in lifestyles, and availability of car finance. The industry was deregulated in 1993, and many companies, both Indian and foreign (Daewoo, Ford, General Motors, and DaimlerChrysler), entered the market. However, the smooth sailing was disrupted
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value in the last quarter of 1996. The automotive industry, which contributed substantially to the industrial growth in FY1996 failed to maintain the same momentum between FY1997 and FY1999. The overall slowdown in the economy and the resultant slowdown in industrial production, political uncertainty and inadequate infrastructure development were some of the factors responsible for the slowdown in the automotive industry. While the passenger car segment, with the launch of many new models, posted positive growth rates in FY 2000 and FY 2001, the upturn was rather brief. In FY2002, the automotive sector especially the passenger car segment continued to reel under the pressure of over-capacity with low demand. FY2003 witnessed a healthy growth in the passenger car sales with the pick up in the economy. The passenger car sales in the first half of FY2004 were also buoyant. However, the contribution of the automobile sector to industrial output, number of cars per person, automobile sector employment as a percentage of industrial employment, number of months' income required to purchase a car, and penetration of cars are quite low. Low demand and lack of vision on the part of the OEMs and policymakers stunted the Indian automobile industry. However, major car manufacturers worldwide foresee future demand in India. The regulatory environment has been liberalized and demand has picked up. Global OEMs who enjoy scale economics both in terms of manufacturing and research and development have entered the Indian market, leading to a shift in the business operations of suppliers, assemblers and marketers.
Key Demand Drivers Disposable income was perceived as the key factor driving passenger car demand. But over time, other factors included the need for greater mobility, non-availability of public transport services, availability of cheap finance, development of the used-car
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value market, introduction of new technologically superior models, increasing levels of urbanization, and changing consumer profiles.
Market Characteristics Product Penetration The penetration of passenger cars in India stood at five per thousand persons as against 27 for two-wheelers in 2000. Significantly, the Indian figures are lower than even those for economies like Indonesia (14 and 62). The relatively high penetration of twowheelers in India reflects the population's need for mobility and their limited affordability. Automotive Penetration (vehicles in use per thousand persons)* Passenger Cars 478 373 395 508 3 14 167 5 Two wheelers 14 12 115 36 8 62 59 27
USA United Kingdom Japan Germany China Indonesia South Korea India
*Source: World Bank
Market Segmentation Considering that affordability is the most important demand driver in India, the domestic car market has been segmented on the basis of vehicle price till SIAM introduced the length-based2 classification of passenger cars since FY2003. The automobile industry in India is still concentrated around the mini and the compact
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value segments which together account for around 81.8% of the automobile market in terms of units sold in FY2003. Demand Projection for Passenger Cars FY2003 Passenger car sales Domestic Sales Increased affluence, wider selection and the ready availability of car loans is driving the Indian car market through the roof. During the last five years (2000-05), the production of passenger cars in India increased by more than 100 per cent. India achieved the sales of 1.11 million vehicles last year (2005). Domestic sales have been growing at a clipping pace:
FY2004
FY2007
CAGR
(Actual) (Forecast) (Forecast) 611715 666248 838845 8%
Passenger car sales rose by 22.84 per cent during April-September 2006, compared to the corresponding period n 2005. The cumulative growth of overall sales of passenger vehicles during AprilSeptember of 2006-07 was 20.73 percent. Utility Vehicle (UVs) sales grew at 12.85 per cent during the same period. Overall, the commercial vehicles segment grew at 36.96 per cent. Growth of Medium and Heavy Commercial Vehicles was 39.92 per cent. Light Commercial Vehicles also performed well with a growth of 32.86 percent.
Exports India is fast emerging as a manufacturing base for car exports. According to the Society of Indian Automobile Manufacturers (SIAM), a total of 89,338 vehicles were exported in September 2006, a 58.07 per cent jump as compared to the same month last year. While passenger vehicle exports grew at 13.15 per cent, two-wheelers and commercial vehicle exports grew at 27.80 per cent.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Major Manufacturers of Automobiles in India

Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd
Foreign players in India Calendar 2006 has seen the entry of many high-end brands into the country. The Indian automobile market will see at least 30 new launches, spanning everything from affordable hatchbacks to mid-size models to super luxury high-end cars and SUVs. Mercedes, BMW, Porsche, Audi, Bentley and Rolls Royce are already here. Now, the Italian marquee Lamborghini is also planning to enter the country. The Italian marquee plans to launch the Gallardo. German luxury car maker Audi AG is preparing to drive into India a range of sporty, lifestyle cars like S8 and RS4 early next year. The year 2007 will also mark Audi's entry into merchandising in Indian car bazaar. CAR STATISTICS INDIA
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The Indian automotive industry is the 2nd fastest growing in the world. About 8 million vehicles are produced annually in this country toady. During 2005-2006, India has emerged as the 3 rd largest market in the Asia Pacific Region. With various car manufacturing companies setting up their units in different parts of the country, the production of the cars will increase at a very fast rate. The car statistics indicate that India will soon become one of the top 10 car manufacturing countries , leaving behind the U.K. Car statistics also show that by the end of the fiscal year 2006-2007, the car production capacity in India will exceed the mark of 2 million. Thus, the production of cars will increase by 70% from the present capacity of 1.2 million. The domestic sales of passenger cars have increased significantly over the years. A graphical representation of the domestic sale of cars will give you an insight about the present market situation prevailing in the country: In the recent years, India has emerged as one of the major bases for manufacturing small passenger cars. At present the Indian automotive industry boasts of being the 3 rd largest manufacturer of small cars. According to the car statistics almost 70 % of the cars sold in this country come under the segment of small cars. A number of car manufacturers like: Maruti Udyog, Tata Motors, Hyundai, Honda, Ford, Hindustan Motors, Fiat, General Motors etc offer various new model of cars now and then. It is expected that the various automobile manufacturers will be investing about $ 5 billion in India, between 2005-2010. As per the car statistics, export of passenger cars from India has also grown considerably over the last decade. A graphical representation of car export trend will help you to make an in-depth analysis of the present status of the Indian automotive industry: With new strategies being implemented and more investments being made in Indian automotive industry the production as well as the domestic sale and exports will increase substantially. India definitely is shining; with a GDP that is sparkling at over 8 per annum the country certainly is on the right course. The automobile exports are at an all time high as was indicated by Society of Indian automobile Manufacturers in a report released in 2006. According to the report, the passenger car segment saw a rise of 9% in January 2006.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The following table will provide a clear picture of the rapid rise of automobile Export in India. 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. Global hub policy for small car like Hyundai, Suzuki, etc.
Weakness

Perception about quality. Infrastructure bottlenecks.
Opportunities
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:
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Improve infrastructure (ports, roads, etc). Improve EXIM regulations.
The Indian passenger car segment The Indian car industry an be classified, based on the price of the car, into the small car or the economy segment (up to Rs.0.25mm), mid-size segment (Rs.0.25 0.45mn), luxury car segment ( Rs 0.45 -1mn) and super luxury car segment (above Rs1 mn). The models in the car market can be fitted to different segment as given below:Category Economy segment (up to 0.25mn) Mid-size segment (Rs0.25-0.45mn) Models Maruti Omni, 800, Padmini Swift, Wagen-R
Premier
118NE,Ambassador,Nova, Fait Uno,Zen, Huundai Santro, Daewoo Matiz, Tata Luxury Car Segment Indica, Contessa, Aulto. Tata Indica, Maruti esteem,Ford Ikon, Opel Astra, Fait Siena, Opel Corsa, Hyundai Accent, Tata Estate, Ford Feasts, Honda Super luxury segment ( Above Rs 1mn) City,Lancer. Merceds Benz, BMW, Nissan, Audi, Luxus, Skoda and other imported Models. The demand for passenger cars can be segmented on the basis of the user segment as those bought by taxi operators, government/non government institutions individual buyers etc. A major portion of the demand in India accrues mainly from personal vehicle owners.
Industry analysis using porters five force:

Porters five force of competition model views the profitability of an industry as determined by the five source of competition pressure. Theses five force of competition include three source of Horizontal competition competition from substitute, the threat of competition from entrants, and competition from established producers and two source of vertical competition the bargaining power of suppliers and buyers. The following write-up is a view of the Indian passenger car
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value industry from these five angles leading to the expected changes in the coming years in the underlying structure of the Indian passenger car industry.
Competition from substitute

Inadequate Public Transportation System: In developed nations city planners have tried to relieve congestion and pollution by creating an efficient public transportation system. However, they have been remarkably ineffective in encouraging motorists to forsake their cars for buses or subway. The public transportation system in India is not only extremely inadequate, it is notably poor in quality. This scenario is not expected to change drastically in the next ten years. Electric cars: All the major car manufacturers in the world are currently developing electric cars or hybrid cars to reduce pollution in the coming years. However, these technologies wll requires considerable length of time to become commercially feasible in developing nations. The lack of inadequate public transportation system coupled with the fact that the electric or hybrid cars are still in the developmental stage means that the Indian car industry faces minimal competition from substitutes.
Treat of new entrants

Economies of scale: in the automobile industry, economies of scale act as a significant entry barrier since it is a capital-intensive industry. Globally, it has been witnessed that car manufacturers with low volumes find it extremely difficult to survive given the high per unit cost. The acquisition of Rolls Royce, Jagur, Rover, and AMC/jeep are a testament to this. On the other hand by entering on a large scale, one runs the risk of drastic under-utilization of capacity as observed by Daewoos experience in India. Since the economy segment cars are expected to drive volume growth in India in the coming years, it is extremely important for a manufacturer to have a model in this segment to reduce his per unit cost.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Government policy: the license-raj of the Indian government toll 1991 acted as a significant barrier for any new entrants in the passenger car industry. Moreover, the governments perception of the car being a luxury rather than a modern necessity resulted in this sector being labeled as low priority. However, the liberalization of the Indian economy has removed this hindrance. huge capital Costs: Huge capital Cost act as significant entry barrier and only established companies with deep pockets possess the resources to enter the automobile industry. Significant costs are involved in the development of a new car as can be seen by Telcos Indica car which has incurred an expenditure of Rs.17 bn. Absolute cost Advantages: Marutis presence in the car industry since 1984 gives it considerable cost advantage over the new entrants. Not only are its plants highly depreciated and its cars highly indigenized as compared to its competitors, it has a wide distribution and service network which will require mammoth resource to replicate. Absolute Cost Advantage: Marutis presence in the car industry since 1984 gives it considerable cost advantage over the new entrants. Not only are its plants highly depreciated and its cars highly indigenized as compared to its competitors, it has a wide distribution and service network which will require mammoth resource to replicate. Although liberalization of the Indian economy has reduced the impact of government policy as an entry barrier, the car industry still enjoy high entry barriers due to huge capital costs involved in setting up efficient plants and numerous cost advantages enjoyed by Maruti. The recent pull-out of Peugeot is an example that even a global automobile company could find it extremely difficult to operate in India if it faces labor trouble and Rivalry between Established competitors. Highly Concentrated Industry : The Indian car industry is highly concentrated with Maruti itself accounting for about 80% of all sales. The lack of competition in the economy segment to Maruti 800 has given the company considerable power. Its dominance in this segment gives it the power to cross subsidize its models in the other segment. However, this scenario is expected to change drastically over the next three years with a number of new models being launched to challenge maruti 800s dominance
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value the scenario in the economy segment could be similar to that in the premium segment currently with intense price competition. The slashing of cielo`s price by 25%has led to ford and opel introducing cheaper models Diversity of competitors: 1984 and 1993 have been land mark years for the Indian car industry. The entry of Maruti in 1984 changed the complexion of the industry as for the first time Indian had opportunity a buy a car which was comparable to the Japanese automobile. 1993 was a historic year as the industry was deregulated an India become the latest battlefield for global auto majors. The last few years have seen the industry integrate with global automobile industry and evolve into being extremely competitive. For the first time, Marutis position as the leader of the car industry will be severally challenged especially if three new cars (Tata Indica, Daewoo, DArt, and Hyundai Santro) in the economy segment can deliver the promised performance. Product differentiation: One of the key trends observed in the car industry during the last decade is that the products of different companies have become increasingly similar especially in the economy and mid-size segment. There is a perceptible shift towards car being treated as a commodity rather than as a consumer good. In the premium car segment in India, differentiation between different models is declining as companies strive to increase volumes by cutting prices. Even Opel Astra has decided to introduced a new model without any frills to reduced its prices by Rs.10 million. Increase in Working Capital Needs: The intense rivalry between the automobile companies will mean that the companies would have to give longer credit periods to its dealers. The substantial over-capacity in the industry will lead to increased inventory holding. These two factors point towards an increase in working capital needs of car companies. The competition between firms in the car industry is expected the intensify considerable as never companies will start reducing Marutis dominance of the market the expected significant over-capacity in the industry, increasing working capital needs, and high exit barriers coupled with low
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value differentiation between models especially in the economy segment will put downward pressure on price and profitability of companies.
Bargaining power of Buyers

Buyers price Sensitive: Car buyers in India are extremely price-sensitive especially in the economy segment. Although it is too early to judge the three new small cars and Maruti response to it, we can expect the price competition to intensify since buyers would e more willing to switch while intense competition among the companies would require them to generate volumes. Relative bargaining power : Gone are the days when the India car buyer had to buy one of the 30,000 Ambassadors or Fiate, which were produced. The penetration of satellite television has globalized the Indian customer. Car companies have seen forced to revamp their dealer network. From a small shed for a dealership, the shift is towards huge dealership who not only offer complete range of services for the car but also make sure that the customer has a replacement vehicle so that they may not become immobile. Availability of Easy financing: the entry of numerous car companies has brought along with it a massive increase in the availability of cheap finance for the Indian consumer. This hassled to fierce competition among the car companies and has even led to free gifts being doled out to buyers to lure them to purchase a particular car. Bargaining Power of Suppliers Diminishing Supplier Power : one of the key trends observed in the global auto industry is the significant increase in outsourcing of car parts. In India, the development of the auto ancillary industry has also brought in this phenomenon. However, the large number of competitors for supplying each part implies that in the coming years, supplier power will diminish to a large extent except for suppliers who have almost monopolistic power like Mico-Bosch. Also, there is a increasing shift towards reduction in vendor base for a company which means that the chosen suppliers also have to make substantial financial investments to enhance the quality of their products.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Supplier power in the automobile industry will diminish greatly in the coming years due to the large number of competing supplier, threat of cheaper and better-quality imports, and an increasing trend towards reduction of a car companys vendor base. Conclusion Although it is possible to predict with some confidence the qualitative impact of individual structural changes, there are difficulties, first in predicting the quantitative impact of structural changes, and second, in predicting the aggregate effect of simultaneous structural changes that have conflicting effect n probability. The Indian car industry is still in a nascent stage. The economy car segment acconts for the majority of the cars sold. However, as the economy picks up stream again and the Indian market matures, the car industry will also climb up the learning curve. The industry has virtually no competition from substitute at next decade. High entry barrier due to high capital costs is also a positive indicator for the existing car manufacturers. However, the intense competition between firms and increasing bargaining power of the buyers indicate towards intensifying competition ad competition and depressing profitability. It will also lead to an increasing need of working capital for these companies who will e faced with longer credit periods and higher inventory holdings. However, given the low motorization in India and increasing per capita incomes, the potential exists for the Indian car industry to increase profitability y generating significant volumes and reducing manufacturing costs. Significant opportunities exist for players to spot gaps in the market and cater to particular niche markets like sports utility vehicles and minivans. The diminishing power of the supplier industry will help the industry in improving the quality of car components and getting longer payment periods. The key to success in the Indian car market will be offering good quality cars that offer value for money, run innovative marketing campaigns to attract potential buyers, and offer excellent after sales service. Companies, which have a range of vehicles in all the segments of the market like Maruti, will be at a significant advantage due to their ability to cross-subsidize model
Manufacturing process
The body panel and engine constitute a major portion of the total cost of car manufacture. A typical cost structure for car is as given below. Parts/assembly % of total cost
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Glass Brakes/wheels/tyres Interiors Transmission system Ignition/exhaust system Steering/suspension Comfort fittings Engine Body Others 5 6 7 8 8 9 11 16 18 13
Car manufacturing is basically assembly of components procured from ancillaries or auto component manufacturers. Nearly 80% of auto components are outsourced by the car manufacturers. This helps in reducing the capital cost needed to setup a car manufacturing plant.
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Company profile
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Maruti Suzuki motors

MARUTI UDYOG LIMITED Maruti Udyog Ltd 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. 18.28% of the company is owned by the government, and 54.2% by Suzuki of Japan. The Indian government held an Initial Public Offering of 25% of the company in June of 2003. The company annually exports more than 30,000 cars and has an extremely large domestic market in India selling over five hundred thousand 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. 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. The largest selling car from Maruti's stable, Maruti 800 In the order they were launched:

Maruti 800: Launched 1983. Largest selling car in India, till 2004. Maruti Omni: Launched 1984. Maruti Gypsy: Launched 1985. Maruti 1000: Launched 1990 Maruti Zen: Launched 1993 with a facelift in 2003.Production ended in 2006. Maruti Esteem:Launched 1994 Maruti Wagon-R:Launched 1999 Modified 2006 Maruti Baleno:Launched 1999 Maruti Alto:Launched 2000. Currently the largest selling car in India Maruti Grand Vitara:Launched 2003
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Maruti Grand Vitara XL-7 Maruti Versa: Launched 2004 Maruti Swift: Launched 2005 Maruti Zen Estilo Launched in 2006 Maruti Swift Diesel Launched in 2007
Services offered 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 had 1545 listed Authorized service stations and 30 Express Service Stations on 30 highways across India. 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. 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. 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 parnters in car finance. Again the company entered into a strategic partnership with SBI in March 2003. Since March 2003, Maruti has sold over 12,000 vehicles through SBIMaruti Finance. SBI-Maruti Finance is currently available in 166 cities across India. Maruti TrueValue- Maruti True Value is a 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 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,
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value 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. 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. Maruti Driving School Exports- Maruti Exports Limited is the subsidary 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 3,00,000 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 Key Competitors
Tata Motors Hyundai India Ford India FIAT India General Motors India
Pride Pointers Indias largest automobile company MUL Rolls out one car every 43 second.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Around 4 million people in India are proud to own maruti cars. The highest installed production capacity More than 35,000 trained technicians for customer support. Largest Sales network-270 sales outlets Largest service networks- 359 dealers workshop Cities covered by sales- 172 Cities covered by service- 922 Spare Parts Store- 26 MGP Shopee- 11 True Value network- 127 outlets
Some Milestones1983- Launched, hence bringing the first revolution in the Indian car market in terms of Technology Availability- production Capacity Fuel Efficiency Choice of colour Shape May- 1993, Zen the world car unvieled at a world premier. November- 1994, Esteem the first luxury car on Indian roads launched December- 1999, Baleno, the top end of the luxury car launched. March-2000 WagonR the original tall boy launched. September-2000, Alto launched in three variants October-2001, Versa, Indias first MPV launched in three variants April-2002 Grand Vitara, the SUV launched.
Some Milestones in Exports MUL Export cars to more than 100 countries. Indias largest exporter of completely built cars (CBU) during 2001-2002 both in terms of volume and value.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Cumulative export sales crossing the 2.5 lakh mark, far more than any car company in the country.
Local market trends

Sales, particularly in the small car segment, will drive passenger car sales in the near in term. However, within the next two years , capacity is expected to be twice the total demand for cars. With developments in the small car segment acquiring a degree of stability in terms of price competition, the action is shifting to the mid-size car segment. sales in this segment will pick up as new models come in and income levels rise but it is still some times till it comes anywhere close to the economy sized segment. What will also drive car sales is the wide availability of finance schemes by a variety of banks and FIs. Sales in the used car market is also expected to do well as more an dmore older models get replaced by newer ones at a faster pace. The coming in of Euro 3 and 4 norms will also increase scrappage rates. In view of expected surplus in the domestic market, India will emerge as one of the leading car sourcing point in the Indian subcontinent. Consumers will be the beneficiaries as a result of marketing war, as they will be offerd technologically superior products at better price and terms and conditions. But the customer has a risk of model discontinuation as a result of shake-out expected in the industry. India offers a releatively low cast production base and is strategically positioned as a launching base for third country export to Asia-pacific and European markets Growth in road transport, increasing urbanization and privatization of public transport will into growing demand for commercial vechile which is sited to reach three hundred thousand by 2001, growth of disposable incomes will push up demand for two-wheelers to 4.5 million, of three-wheelers to 250 thousand and of passenger car to 420 thousand over the same time span.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value India has added advantage of an extensively segmented market and a welldeveloped dealer network. Growth of consumer finance leasing and hire-purchase options for vehicle dealers and buyers also boost demand. A well developed component industry offers opportunities for sourcing. The scope is vast for foreign collaboration to produce branded models stressing on emission standards, fuel efficiency, advanced features and contemporary styles.
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BELLAD MOTORS (P) LTD.

BELLAD MOTORS (P) Ltd is a multi franchise automobile dealership based at Hubli servicing the North Karnataka. The Bellad Group with a standing of more than three decades in Automobile industry established their prestigious Maruti Dealership in the year 2006. Ideally located on Hubli Dharwad highway the dealership can boast of a spacious 4000 sq ft. and well lit showroom with ample frontage. The showroom has the complete range of cars for display and test drive and professional and trained sales staff always eager to serve and delight our value customers. The service center with an area of 6000 sq ft has two post lifts, pneumatic tools, computerized wheel alignment and wheel balancing machines and a most modern paint booth which can handle any make of car. The service personnel highly trained and professional with up to date knowledge owing to the groups policy of implementing continuous learning programs. A 24 hours emergency road service attached to the service division is always on call and is a confidence booster to our customer. The parts center in an area of 2000 sq ft is well stocked and has a wide range of accessories to suit the varying needs of our customers. The dealership with its professional management looks forward to their growth by focusing on customer centric and value added offers to their customers. Bellad Motors (P) Ltd with their network of branches at Bagalkot and Karwar are striving hard to satisfy their customers.
ORGANIZATION CHART
Managing Director WWW. BABASAB PATIL FREEPPTMBA.COM Deputy General Manager HRD 38
M. W/S
Parts Manager
Sales Manager
Account Manager
M.T.V
Team Leader
Team Leader
Team Leader
Team Leader Sr. Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Sales Executive
Reception Data Entry
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SALES DEPARTMENT
Managing Director
Deputy General Manager
Sales Manager
Team Leader
Team Leader
Team Leader Bagalkot
Team Leader Karwar
Sales Executives
Sales Executives
Sales Executives
Sales Executives
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WORK STATION
Managing Director
Deputy General Manager
Customer Care Manager
Works Manager
Assistant Customer Care Manager
Assistant Works Manager
Service Advisor
Floor Supervisor Technicians
Floor Supervisor Technicians
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SERVICE DEPARTMENT
WORKMEN SUPERVISERS HEAD OF THE DEPT SALES DEPARTMENT MD DGM T.L S.E M.T.V = = = = = Managing Director Deputy General Manager Team Leader Sales Executive Maruti True Value 25 04 01
The following chart explains the Sales Department. In that Sales Manager handles the sales promotion activities, Customer Care Executive handles the identifying the customer problems and solving. Branch Managers are district wise and their work is to take the information form the sales executives about the needs of vehicles and send the same information to the Sales Manager and bring the vehicles from Sales Manager to Sales executives. Karnataka in Hubli Bellad Motors (P) Ltd. showroom is located on PB road at Unkal Cross. The workshop located at there itself, carries out after sales operations, free service, paid service and Running repairs. Quality Management System: Bellad Motors has a documented and established quality management system The documentation structure of Bellad Motors can be represented in the QULITY MANUAL 2. QULITY SYSTEM ROCEDURES 3. WORK INSTRUCTIONS AND CHECKLIST 4. FORMS AND CARDS 5. REFERENCE STANDARDS AND EXTERNAL ANNUAL Customer Focus at Sales: to them. The Field executives visit the customers and explain the features of the vehicle to ensure that 1. following manner.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Demonstration and test drives shall be given whenever required. The Performa invoice/price list terms and conditions will be given. The order booking forms duly collected from the customer and clarity with regard to the terms and conditions are explained and the copy id handed over to customer along with the receipt or payment made. Customer Focus at Service: a) b) c) d) The customer can book the vehicle for the servicing/repairs either through the or personally the front office. The detail shall be entered in 'booking register' by the telephone operator. The list of the vehicles shall be given to front office ~very morning to accept The customer can bring their vehicle for servicing without booking. However telephone
the vehicles for servicing for that date. such vehicle shall be accepted only after ensuring that there is enough capacity for the booked vehicles. e) On the bases of kilometers run by the vehicle and customer requirement, the customer shall explained about the type of the servicing/repairs and spare parts required and to ensure that the service station has the required capacity to accept the vehicle. f) g) h) Before accepting the vehicle, a mutually acceptable delivery time and date is The customer's consent shall be taken on the estimated cost of the repair/service All the details of the work required along with the date and time of the delivery fixed with the customer. of the vehicle. and the established cost shall be recorded in the job order card before commencement of the work.
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The various models of vehicles from Maruti Udyog Ltd. Sold and serviced at Bellad Motors. Maruti-800 car Maruti omni Zen Estilo
Alto Wagon-R Esteem Versa SX4 Vitara Swift The various types of servicing done at Bellad Motors. Services-Free service and paid service. Running repair. Quick service repair. Break down service. The external manuals acquired from Maruti Udyog Ltd. To sell and service the vehicles. Sales policy bulletin Marketing circulars Service manuals Service circulars Service bulletin Warranty bulletin Spares parts price catalogue Spares parts price list
Spare parts procedure manuals
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Spare parts bulletin Spare parts circulars Maruti service quality standards Customer care manual Service marketing manual.
OVERVIEW OF THE INDIAN SECOND HAND CAR MARKET

The pre-owned, or used, car market continues to be fragmented and unorganized. Despite the rapid growth of the organized used-car dealers and manufacturer-owned pre-owned car outlets, the market for old vehicles continues to be dominated by individuals trying to sell and buy cars. However, the pre-owned vehicles market is likely to mature as the car ownership base grows. The scorching pace at which the new car market has grown this fiscal and the growth projections for the next are indicators of the potential growth of the used-car market in the next few years. Further, in addition to the number of two-wheeler owners who are looking to buy a car, the number of existing small-car owners hoping to upgrade to a three-box (sedan) car will progressively drive used-car sales in the two critical B and C segments. The C segment (particularly entry-level) used car sales are expected to witness the kind of sales boom that B segment used cars saw over the past two years.
Organized market imminent

Company-owned used-car outlet and increased demand for certified used cars are likely to become the dominant themes. It is evident, from the surge in the number of car manufacturers entering the pre-owned cars business, that the used car market is getting increasingly attractive, both in terms of its potential to generate sales volumes and higher margins. For the car-maker, the organized used-car business also throws up the possibility of better using the dealer-cum-service outlet's vehicle servicing capacity.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The manufacturer-sponsored pre-owned car business has seen entrants such as the car market leader Maruti Udyog, with its Maruti True Value brand, Ford India, with its Ford Assured, and Hyundai with its Hyundai Exchange brand. After starting out in a small way amongst their dealerships, many of these manufacturers are now actively involved in streamlining their used-car operations.
Better place to shop

For the used-car buyer, the manufacturer-sponsored outlet is much better place to go shopping. In addition to being able to buy a certified car at a fair price, these outlets will also ensure that the paper work is right, throw in a couple of free services, offer an extension of warranty at times, help with the transfer of the vehicle's ownership and complete formalities at the regional transport office (RTO). A certified used car, including the charges for inspection and certification, is usually priced 5-10 per cent more than a similar used car in the unorganized segment. Despite the higher cost, for the average first-time car buyer, a certified car is the better option. In the absence of any organized car history services being offered by independent consultants and a more transparent vehicle insurance system, getting background information about the previous owner and the used-car is extremely difficult for buyers looking for a deal.
Used-Car Buyer Behavior :

However, used-car buyers continue to be hesitant to shop for their cars at manufacturersponsored outlets. A recent study about the resale value of cars in India conducted by NFO Automotive, part of the NFO World Group, threw up interesting points. Some of the key findings of NFO Automotives inaugural 2003 India Used-Car Buyer Study (UCBS) were: Very few Indian buyers pay for an expert to evaluate the vehicles; most rely on their personal mechanics and friends.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Low reliance on vehicle financing at 20 per cent compared to nearly 65 to 70 per cent for new car buyers. Word-of-mouth, classified advertisements, and used-car brokers are the key sources of deciding brand and price, with the Internet and manufacturer-backed sources playing only a limited role. Lack of shopping - over 60 per cent owners are pre-determined in their used-car model choice and do not shop around. The age of car (model year) and kilometers on the vehicle are the top evaluation criteria. The degree of importance attached to accident history, ownership transfers, and service/ parts availability is relatively lower.
Used-car finance
More than two-thirds of all new cars sold are part financed through auto loans. Intense competition, reliable retailing channels and cross-subsidization of the financier's interest costs by the vehicle manufacturer have brought down interest rates for new cars dramatically during the last two years. However, the interest rates for financing usedcars continue to be uncompetitive. The interest rate for financing of new cars ranges between 7 per cent and 11 per cent on a reducing balance basis depending on manufacturer and model. On the other hand, interest rates on used cars range from 14 to 19 per cent, close to the rates for a personal loan. The interest rates for certified cars being offered by manufacturer-sponsored outlets are usually lower than financing for used-cars bought from the open market. This again is largely due to the higher reliability factor and, in some cases, to some kind of preferred financing arrangement the manufacturer has with the financier. More reliable experienceOverall, the process of buying a used-car can be fruitful and risk-free, if you take the necessary precautions (refer accompanying story) and opt for buying a certified car.
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value With the increased presence of the organized used-car dealer, the rate of growth in the pre-owned car market is likely to outstrip new car sales. Though a more market-friendly interest rate, which is on a par with the prevailing rates for new cars, will continue to elude used-car financing, at least the differential between the two rates are expected to gradually narrow. This is likely to happen after the reliability factor goes up in the used- car market.
Tip sheet Buyers Check out these following aspects before closing a deal:
If you are on a tight budget and plan to buy an entry-level car in any of the segments, a used-car may not always be the best option to upgrade to the higher segment. Instead, you may opt for a new car in the lower segment. If you do decide to upgrade to a bigger, higher segment used-car, then you have to be ready for accelerated depreciation post-purchase and uncompetitive interest rates, if you are part financing the buy. It is better to go in for a certified used-car rather than trusting the judgment of your neighbourhood mechanic. Check the used-car seller's insurance records for the car's claims (accident) history, if any. Avoid cars that have had more than one previous owner. A used-car owner who has been meticulous with the car's paper work and maintains an exhaustive log of repairs, oil change, service will, in all probability, have been meticulous with the car too. If you are confident of about your own assessment skills and feel that you can do the job of scouting for a used-car better, then the pointers given in the box alongside may be of help.
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Sellers Here are a few pointers that can be of use when you decide to sell your car:
Selling your car through a used-car dealer may be a better option than attempting it yourself, despite the commission that you have to fork out to the dealer. It will also still be worth it, especially if your car is more than three/four years old, to get the vehicle used-car certified by an authorized car dealer or certifying agency. Passenger car manufacturers are nowadays offering attractive loyalty bonuses and exchange plans for programmes for existing car owners to upgrade or switch to a new car. But if your car is not more than three years old, it may still fetch a better price in the open market. So, sell that car yourself and talk down the price of the new one with the dealer. You will win both ways. Go to the used-car market with realistic expectations. Remember if your car has had crashes in the past, no matter how well it has been restored, its resale value will have dropped never be the same. If you have avoided frivolous repairs and the subsequent insurance claims from your auto insurance company, or if your car has had an accident-free history, then, do not forget to transfer the no-claims bonus from the used car's insurance policy to the insurance cover for the new car. You can transfer almost half of your no-claims bonus and help shave off a large chunk of the premium payable on the new car.
ANALYSIS OF THE MARKET Global Scenario

In developed markets like U.S, Europe, Japan etc the market is very big and organized. - U.S Market Size: 1:3(48 Million) - Japan Market Size: 1:1.8(8.4 Million)
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value - India Market Size: 1:1(Estimated)
Global Certified Markets

In Developed Markets all OE Manufacturers are doing certified programs- like True Value - GM-GM Certified - Ford-Ford assured - Toyota-Toyota Certified Used Cars - Honda-Honda Certified - Suzuki-Suzuki Ok, Us Station Source NFO UCBS-2003
3-level Evolution of Certified Programs-
Level 1
Market is highly unorganized, dominated by purchase houses and C2C
Level 2
Market is highly unorganized, dominated by purchase houses and C2C; new car dealers also start their used car programs.
Level 3
Certified programs by OEMs start as customers started demanding for assurance from OEMs.
Indian Used Car Market

Estimated - To be 1:1 - i.e. for every one new car one old car is sold - In U.S the market is 1:3 - Indian market is also growing in the direction of the developed markets.
Market Structure
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Customer to Customer- 60% Broker Market- 30% Organized Market- 10% Lacks-
- I.e. between friends, relatives and reference individuals.
- Reliability - structured pricing mechanism - structured exchange/ upgrading facility - Assurance, warranty, etc
CUSTOMER ANALYSIS Indian Customer ExpectationsSeller expectation Seller expectation Correct pricing of vehicle reflecting market value True evaluation of the vehicle Financial speed of setting the account - reliability Form of payment- wants flexibility between cash and cheque. Car to be left in the dealership Credliblity of the buyer Logistics- time and distance of travel to selling point. Unsafe Doubtful Few pockets in the city or through local workshops Safe Can be known One or two outlets in limited cities. Very low Mostly cash High Cheque Yes, at a cost Yes Brokers Prices offered by brokers are as per the market. None finds faults in cars which do not exist. OEM backed dealership Pricing is as per or above market, however only in exchange scheme. Yes, thorough elaborate checklist.
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Buyers expectation:
Buyers expectationBuy a reliable car Fair price Transparency Clean documentation Unreliable Very poor Very poor Unreliable Reliable Backed by refurbishment and Brokers OEM backed dealership
warranty provided by a third party. At par with market Good Yes
Top 5 reasons for Customer Going for Finance

1. 49%- fast paper work 2. 43%- interest rate 3. 41%- reputation of finance company. 4. 33%- good finance terms 5. 21%- flexible of finance terms.
- Source NFO-UCBS 2003

(2.7) OVERVIEW OF THE TWIN CITIES- HUBLI- DHARWADThe population of the city as per the 2001 Census was 7.85 lakhs. The present population is more than 10 lakhs. Hubli is well known as a commercial as well as industrial centre, where as Dharwad is seat of learning. The city is well connected with important cities like Bombay, Bangalore, Hyderabad and port towns of Karwar and Goa and easterns and north-eastern regions by an excellent network of roads and rail. The airport at Hubli is expected to find a place on our national air map. The city is situated in the dividing line between the Malnad and the planes. The Malnad is well known for its forests and forest based industries and the other three side region are known for their agricultural products like cotton, groundnut,
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value oilseeds manganese ore and granite stones. The value of agricultural products coming into Hubli market runs into multiple crores. Hubli is an important industrial centre, with more than 1000 allied small and medium industries already established. There are machine tools industries, electrical, steel furnitures, food products, rubber and lather industries and tanning industries. With the establishment of Bhoruka textile Mill, N.G.E.F and K.M.F. it has gathered momentum in industrial development. Dharwad is the seat of learning with Karnataka University and Agricultural University. There are large number of Arts, Science, Commerce and Law Colleges in the city. Karnataka Medical College, S.D.M. College of Dental Sciences and Engineering and technical institutions are crowning additions to the educational facilities in the city. Due to these educational and industrial facilities, the city attracts considerable floating population.
ANALYSIS OF THE CAR MARKET IN HUBLI- DHARWAD

Hubli- Dharwad is one of the fast growing market for Cars in the state. There are showrooms of most of the segments of the Cars. The company owned showrooms that are present in the Twin cities are-
Maruti, Hyundai, Tata, Skoda, GM Opel, Ford, Toyota, Fiat, Mahindra and Mahindra, HM etc.. There are many co owned service stations, Mercedes has set up its service There was a demand for the small cars mostly in the Twin cities, because of The mindset and the consumer behavior is fast towards buying cars in station in Hubli recently. the shorter distance for traveling, economical, less parking space etc.. Hubli- Dharwad.
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SECOND-HAND CAR MARKET IN THE TWIN CITIES.

There are about 40-50 unorganized dealers in Hubli- Dharwad. There are only two other certified dealers in the market- Bellad, Automartindia. Insights of the dealers- (sample size - 8MAIN DEALERS) No proper infrastructure. The average years of established is 8years Average sales per year is 180-200 cars The dealers do not use middle men for their dealings. The promotional activities are mostly undertaken through Melas and The average peak time for the maximum sales in in festive seasons. They do not give any service or guarantee backup for the vehicles sold. They say the customers are very satisfied with them. Cost is the only problem when customers are purchasing. The major factors considered by the buyer are- Budget - Condition - Age
Newspaper ads
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MARUTI TRUE VALUE- WHAT IS IT?

Maruti Suzukis new Initiative along with Maruti Insurance, Maruti Finance and Maruti N2N under Project Vistaar. The Most Reliable Option to Buy or Sell Pre-Owned Cars First True Value outlet on 19th Oct-2001 Present network :127 outlets in 94 cities Product- Sourcing: they buy cars of any make, age and mileage in
exchange.
Objectives of Maruti Suzuki behind True Value

Increasing New Car sales through exchange. Managing Residual Value. Enhancing your Dealer Profitability. Enhancing motorization-2-4 Wheeler.
Unique Strengths
Backed by Maruti Suzuki- Indias largest and most trusted passenger car The largest used car dealer networks in India run by professional The Maruti True Value warranty and services can be availed by the Only true value can ensure that if any problem arises anytime their service
manufacturer. management. customer across the nation at any true value outlet. at their service 24 hours.
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Maruti True Value Products

GR- Upto 5 years old & upto 1 lac kms- Warranty- 15000 kms or 1year whichever occurs earlier. XR- Upto 7 years old & upto 1 lac kms-Warranty-7500 kms or 6months whichever occurs earlier. PR- Upto 10 years old & upto 1 lac kms- No warranty but mechanical refurbishment standards same as GR/XR.
Evaluation Process of the Cars at True Value

Backed by Maruti Suzuki- Indias largest and most trusted passenger car The largest used car dealer network in India run by professional The Maruti true value warranty and services can be availed by the customer Only true value can ensure that if any problem arises anytime their service
manufacturer. management. across the nation at any true value outlet. at their service 24 hours.
True Value VS Market

Maruti true Value Every car is bought through a stringent 120 point check which is done by professionals trained by Maruti- Suzuki. Only cars that meet strict criteria are taken under True value ensuring that cars No assurance of quality Brokers and C2C No checking
56
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value are non-accidental and free of any major defects. Seller bonofides are verified from RTO This ensures that the buyer does not end up in any legal hassles All the 11 systems of the car like engine, transmission, electrical, brakes, suspensions, body etc are reconditioned to Maruti Suzuki standards. This ensures that the car is reliable, safe optimized fuel economy. Sparkling clean and aesthetically finished giving the experience of the new car. Maruti- Suzuki trained professionals refurbish every car only with Maruti genuine parts at state of the art.-maruti workshops. Ensures zero maintenance cost- ensures zero maintenance cost, all the critical parts of the car are ensured to be once on the new car- ensures happy driving. Every car is inspected and certified by Maruti- Suzuki Engineer present at your True Value outlet.- Maruti Suzukis assurance to the customer that what we promise we deliver. Every car comes with Maruti Suzuki Warranty upto one year- all the parts that are covered under new car are covered in True Value. None- part gone, money gone all round troubles and strain. Many parts need replacement from time to time, buyer ends up visiting the workshop more than driving the car, end up spending about rs 10,000/- in a year. None- no assurance. Car is not assured of safety reliability and any time it can break down: big tension option No refurshibment, even the genuine spares are replaced with spurious parts. Dubious Risky No re-conditioning
True Value Finance
57
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Best value finance option available to the Used Car Buyer. Most convenient, no hidden costs, less paper work Interest rates (15% reducing) Lower by 2-3% than the market Financing upto 10 years of age- Unique to True Value Best Cars+ Best Finance High Conversion
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PROJECT DETAIL
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Executive summary
The aim of marketing is to meet and satisfy the needs and wants of the customers. India has long-term potential to become a significant vehicle market. It has huge population of nearly one billion people (of which 150-250 million are middle class), and a current vehicle population of 3.5 million (equivalent to only 3.4 cars per 1000 people). Prior to the early 90s there were only four car companies manufacturing and selling cars in India. Foreign investment was effectively banned and foreign technology transfers were subject to government approvals. By 1993 the Indian government delicensed the Indian car industry, which eased other foreign auto manufactures entry into the market first under joint partnerships, then wholly owned subsidiaries. Currently, India is in the midst of an economic-recovery where vehicle sales rose 47 percent to 73,000 units in March 2000, up from 49,410 units in March 1999. Indian auto market is booming the auto manufacturers from all over the world are attracted by indian market for both,manufacturing and sell cars to indian and export market. Making the right choice while buying a used car is very important. Maruti Suzuki, India's favorite car company, understands you concerns regarding quality, documentation and value for money. That is why we ensure that the used car you buy from us has never had an accident and is free from defects or legal hassles. What you get is a car that is optimized for trouble-free performance and therefore needs minimum maintenance. Of course, all this is possible only because of Maruti Suzuki's direct involvement, which includes thorough checks, a complete reconditioning at state-ofthe-art Maruti Suzuki workshops and certification by a Maruti Suzuki Engineer present at the TrueValue outlets. That's not all, as a mark of a assurance we give you a warranty up to 1 year and 3 free services. Buy a Maruti Suzuki certified used car and make a wise investment.
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Problem definition:
Maruti has come out with a concept of creating a new market for Pre Owned (second hand) cars which it calls True Value. Therefore Bellad Motors as a franchisee wants to know the opportunity it has in the market of Hubli against the New Cars, and what strategies can be applied to attract the customers effectively. Objectives of Maruti Suzuki behind True Value Increasing New Car sales through exchange. Managing Residual Value. Enhancing your Dealer Profitability. Enhancing motorization-2-4 Wheeler.
NEED FOR THE STUDY:

The automobile sector has today become one of the hot areas markets. Various upcoming features have enhanced the global competition in today's Automobile sector. As there are petty dealers in the Pre Owned Car market in Hubli- Dharwad it is important to learn about the Target Audience and the market. To know how has Maruti handled the Pre Owned market until now? To know what the market share is? To understand and work on the gaps, if any.
61
Utility or Proposed out comes and benefits of the study:

Benefit to the Organisation:
With this study, the organization (Bellad MOTORS) will be benefited in terms of learning 1) Changes in the target segment. 2) Learn more about the competitors. 3) Study the changes in the market conditions. 4) Awareness / knowledge about True Value The study results also will help in making proper strategies to expand the new introduced market.
Benefit to Academics:
It will help me in understanding The market for used cars in general and market in twin cities in particular. Customers Decision Making Process for used cars. Customers choices of brands in used car segment. It will help in understanding, reviewing and suggesting improvements in creating a market for True Value Cars. The experience gained during this study will provide as a tool, which can be applied in any future undertakings of similar nature.

Objective:
To know and study/analyses the effectiveness of second hand car sales by Maruti Suzukis True Value concept through its dealer Bellad Motors in Hubli city.
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Sub Objectives To know the nature of the market for used cars in the Twin Cities. To enumerate the various players for used cars in the Twin cities. To enumerate the various reasons for customers opting a used car. To find out the awareness/ knowledge level of customers on the concept of True Value offered by Bellad Motors. To access the impact of promotional activities on the sale of used cars.
Research Approach
Exploratory research
Exploratory research is concerned with discovering the general nature of the problem and the variable that relate to it. Exploratory research is characterized by high degree of feasibility and it tends to rely on secondary data. During this study, exploratory research is carried to identify the variable like, customer satisfaction level, basis of purchase decisions, important of brand name, customer opinion regarding various preferred feature, the innovative advertising strategies used by the companies, which decides the strength of the company to be in the customers mind and also to grab the major portion in the market. After discovering the general nature and the variable relating to it, with the help of exploratory research, a descriptive research will carried out during the study for the purpose of accurate description of variables. Descriptive research carried out with the help of primary data collected from the customer through questionnaires.
Data collection approach

To carry out this research, primary data and secondary are collected.
Primary data (survey data)
63
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value Systematic collection of information directly from respondents. This data is collected for the descriptive research. The survey data collected during the study includes the data collected through questionnaire and face-to-face interview with customer to know about the consumer behavior.
Secondary data
The first step in data collection approach is to look for secondary data. Usually it is the data developed for some purpose other than for helping to solve the problem at hand. Secondary data are collected through various magazines, internal experts, website, directories, external experts and miscellaneous report. Measurement Technique:In this project following measurement techniques are use to collect information. Questionnaire:For the purpose of this project self-administered questionnaire to potential customers and for standard commercial business enterprises located in Hubli Dharwad city. Analysis of DATA Data are useful only after analysis. Data analysis involves converting the series of data recorded observations into descriptive statements. The survey will carried out in Hubli-Dharwad city, and the sample size was 100.The information gathered is transferred to a SPSS coding sheet, interpretation. The measurement and evaluation of data is done using SPSS 11.0 version software, simple frequency cross tabs and graphical representations.
Ethics of the research

In this study, the questionnaire is designed in such a way that the feelings of respondents as well as the ethics of the company are not disturbed. The research and research report is not misleading any way.
Sampling process
Sampling Population:
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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value All the people using A2 segment cars and the people who can afford an A3 segment cars and standard commercial enterprises located in Hubli-Dharwad. Sampling Frame: List of standard commercial enterprises located In Hubli-Dharwad, List of A2 segment car user and list of people who can afford A3 segment cars. Sampling unit: Standard Hotels, Business enterprises and households Sample Size: 100 Sampling Method Samples are selected on Non probability convenient sampling method. Time frame Time: - 10th Dec to 19th April. Data collection method To collect the data we used both primary and secondary methods.
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For Customers (Professionals)

Q 1. You are in which profession
Profession of Respondent Frequency 11 8 19 24 17 21 100 Percent 11.0 8.0 19.0 24.0 17.0 21.0 100.0 Valid Percent 11.0 8.0 19.0 24.0 17.0 21.0 100.0 Cumulative Percent 11.0 19.0 38.0 62.0 79.0 100.0
Valid
Engineer Doctor Lecturar Business Advocate Banker Total
Profession of Respondent
30
20
10
Frequency
0 Engineer Doctor Lecturar Business Advocate Banker
Findings: 11 % of Respondents are Engineers 8 % of Respondents are Doctors 19 % of Respondents are Lecturars 24 % of Respondents are Businessman 17 % of Respondents are Advacates 21 % of Respondents are Bankers Interpretation Among different demographic classification in the research profession of the respondents is the prime factor and her professional like business, advocates, bankers, engineers, lectures are focused customers.
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Q 2. Age of Respondent
Age of Respondent Frequency 36 37 23 4 100 Percent 36.0 37.0 23.0 4.0 100.0 Valid Percent 36.0 37.0 23.0 4.0 100.0 Cumulative Percent 36.0 73.0 96.0 100.0
Valid
25-35 35-45 45-55 >55 Total
Age of Respondent
40
30
20
Frequency
10
0 25-35 35-45 45-55 >55
Age of Respondent
Findings: 36 % of Respondents are of age 25-35 37 % of Respondents are of age 35-45 23 % of Respondents are of age 45-55 4 % of Respondents are of age greater than 55 Interpretation The other demographic classification is the age of the respondents, as India is having very significant portion of young population so there are more than 73% of the people are in age group 25 to 45 willing to have cars.
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Q 3. Gender of Respondent
Gender of Respondent Frequency 88 12 100 Percent 88.0 12.0 100.0 Valid Percent 88.0 12.0 100.0 Cumulative Percent 88.0 100.0
Valid
Male Female Total
Gender of Respondent
100
80
60
40
Frequency
20
0 Male Female
Gender of Respondent
Findings: 88 % of Respondents are male 12 % of Respondents are male Interpretation: The gender is the prime important factor and the male is dominating the auto sector and remote sector is growing
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Q.4 Income of Respondent

Income of Respondent Frequency Rs 50,000-Rs 1,00,000 19 Rs 1,00,000-Rs 1,50,000 42 Rs 1,50,000-Rs,2,00,000 36 > 2,00,0000 3 Total 100 Percent 19.0 42.0 36.0 3.0 100.0 Valid Percent 19.0 42.0 36.0 3.0 100.0 Cumulative Percent 19.0 61.0 97.0 100.0
Valid
Income of Respondent
50
40
30
20
Frequency
10
0 Rs 50,000-Rs 1,00,00 Rs 1,50,000-Rs,2,00, > 2,00,0000 Rs 1,00,000-Rs 1,50,
Findings: 19 % of Respondents are under income Rs.50,000-Rs.1,00,000 42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 36 % of Respondents are under income Rs.1,50,000-Rs.2,00,000 3 % of Respondents are under income greater than >2,00,000 Interpretation as I have already told that companies are focusing on the middle class segment of the Indian market in the income group or 1 lack to 2 lack which accounts to 78 % approximately
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Q 5. Marital Status
Marital Status Frequency 81 19 100 Percent 81.0 19.0 100.0 Valid Percent 81.0 19.0 100.0 Cumulative Percent 81.0 100.0
Valid
Married Unmarried Total
Marital Status
100
80
60
40
Frequency
20
0 Married Unmarried
Marital Status
Findings: 81 % of Respondents are Married 19 % of Respondents are Unmarried Interpretation Among the married and unmarried customers the car owner and the prospective car customer are the married one the safety provided to the self and the family is prime importance in buying car and they account to 80%
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Q 6. Number of Children oif Children Number

Valid Frequency One 31 Two 38 More than 2 12 No 19 Total 100 Percent 31.0 38.0 12.0 19.0 100.0 Valid Percent 31.0 38.0 12.0 19.0 100.0 Cumulative Percent 31.0 69.0 81.0 100.0
Number oif Children

40
30
20
Frequency
10
0 One Two More than 2 No
Number oif Children
Findings: 31 % of Respondents have one child 38 % of Respondents have two children 12 % of Respondents have more than two children 19 % of Respondents have no children Interpretation as above explained the safety of he family is one of the prime important the children of the family and there safety is demanding the parents to own a car
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Q.7 Dou you own a car

Dou you own a car Frequency 32 68 100 Percent 32.0 68.0 100.0 Valid Percent 32.0 68.0 100.0 Cumulative Percent 32.0 100.0
Valid
Yes No Total
Dou you own a car

80 70 60 50 40 30 20 10 0 Yes No
Frequency
Dou you own a car
Findings: 32 % of Respondents have their own car 68 % of Respondents dont have their own car
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Q. 8 Is it New car or Second Hand Car

Is it New car or Second Hand Car Frequency New Car 17 Pre-Owned car 15 No Car 68 Total 100 Percent 17.0 15.0 68.0 100.0 Valid Percent 17.0 15.0 68.0 100.0 Cumulative Percent 17.0 32.0 100.0
Valid
Is it New car or Second Hand Car

17.5
17.0
17.0
16.5
16.0
15.5
Frequency
15.0
15.0
14.5 New Car Pre-Owned car
Is it New car or Second Hand Car
Findings: 54 % of Respondents have new car 46 % of Respondents have Pre owned cars Interpretation As for the auto industry standards the sales of new and pre owned cars is 1:1 as per the research it is showing the same where how car seekers, and pre owned car seekers are equal.
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Q.9 Car Purchased from

Car Purchased from Frequency Certified Dealer 5 UnCertified Dealer 10 Total 15 System 85 100 Percent 5.0 10.0 15.0 85.0 100.0 Valid Percent 33.3 66.7 100.0 Cumulative Percent 33.3 100.0
Valid
Missing Total
Car Purchased from

12
10
Frequency
0 Certified Dealer UnCertified Dealer
Car Purchased from
Findings: 33 % of Respondents have purchased cars from certifieddealers 67 % of Respondents have purchased cars from uncertified dealers
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Q.10 How did you come to Know about Dealer

How did you come to Know about Dealer Frequency 8 5 2 15 85 100 Percent 8.0 5.0 2.0 15.0 85.0 100.0 Valid Percent 53.3 33.3 13.3 100.0 Cumulative Percent 53.3 86.7 100.0
Valid
Missing Total
Advertisements Friends/Neighbours Other Dealers Total System
How did you come to Know about Dealer

10
Frequency
0 Advertisements Friends/Neighbours Other Dealers
How did you come to Know about Dealer
Findings: 54 % of Respondents came to know about uncertified dealers through Advertisements 33 % of Respondents came to know about uncertified dealers through Friends & Neighbours 13 % of Respondents came to know about uncertified dealers through other dealers Interpretation Advertisement and word of mouth are playing very important role in him educating the customers about dealers which account to around 87 % approximately.
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Q.11 Would you buy a new car or pre-owned car

Would you buy a new car or pre-owned car Frequency 21 43 4 68 32 100 Percent 21.0 43.0 4.0 68.0 32.0 100.0 Valid Percent 30.9 63.2 5.9 100.0 Cumulative Percent 30.9 94.1 100.0
Valid
Missing Total
New car Pre owned car Dont Want Cars Total System
Would you buy a new car or pre-owned car

50
40
30
20
Frequency
10
0 New car Pre owned car Dont Want Cars
Would you buy a new car or pre-owned car
Findings: 31 % of Respondents wants to buy new car 63 % of Respondents wants to buy pre owned car 6 % of Respondents dont wants to buy car Interpretation Among the prospective car customers majority of him customers are willing to buy the pre owned cars.
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Q.12) If pre-owned car, would you prefer to buy from

If pre-owned car, would you prefer to buy from Frequency 16 27 43 57 100 Percent 16.0 27.0 43.0 57.0 100.0 Valid Percent 37.2 62.8 100.0 Cumulative Percent 37.2 100.0
Valid
Missing Total
Certified Dealer Uncertified Dealer Total System
If pre-owned car, would you prefer to buy from

30
20
10
Frequency
0 Certified Dealer Uncertified Dealer
If pre-owned car, would you prefer to buy from
Findings: 37 % of Respondents wants to buy pre-owned car from certified dealers 63 % of Respondents wants to buy pre-owned car from uncertified dealers Interpretation As budget is the prime concern for the customers who want buy the pre owned cars and there certified dealer are bit expressive for the customers of this segment. So majority of them go to Uncertified customers
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Q.13) Factors considered in buying a car

Factors considered in buying a car Frequency 29 23 3 3 58 42 100 Percent 29.0 23.0 3.0 3.0 58.0 42.0 100.0 Valid Percent 50.0 39.7 5.2 5.2 100.0 Cumulative Percent 50.0 89.7 94.8 100.0
Valid
Missing Total
Budget Milage Age Personal or Company owned Total System
Factors considered in buying a car

40
30
20
Frequency
10
0 Budget Milage Age Personal or Company
Factors considered in buying a car
Findings: 50 % of Respondents considers budget while buying pre-owned car 40 % of Respondents considers milage while buying pre-owned car 5 % of Respondents considers age while buying pre-owned car 5 % of Respondents considers personal/company owned while buying pre-owned car Interpretation As the Indian customers are more concerned about the economy of the car the budget and mileage are gain important.
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Q.14) Have you heard about "Maruti True Value"

Have you heard about "Maruti True Value" Frequency 40 60 100 Percent 40.0 60.0 100.0 Valid Percent 40.0 60.0 100.0 Cumulative Percent 40.0 100.0
Valid
Yes No Total
Have you heard about "Maruti True Value"

70 60 50 40 30 20
Frequency
10 0 Yes No
Have you heard about "Maruti True Value"
Findings: 40 % of Respondents heard about Maruti True Value 60 % of Respondents didnt heard about Maruti True Value
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Q.16) From where you heard about "Maruti True Value"

From where you heard about "Maruti True Value" Frequency 19 11 10 40 60 100 Percent 19.0 11.0 10.0 40.0 60.0 100.0 Valid Percent 47.5 27.5 25.0 100.0 Cumulative Percent 47.5 75.0 100.0
Valid
Missing Total
Advertisements Friends/Neighbours Other Dealers Total System
From where you heard about "Maruti True Value"

20
10
Frequency
0 Advertisements Friends/Neighbours Other Dealers
From where you heard about "Maruti True Value"
Findings: 47 % of Respondents heard about Maruti True Value from advertisements 26 % of Respondents heard about Maruti True Value from friends/neighbours 27 % of Respondents heard about Maruti True Value from other dealers Interpretation Advertising through different channel of media are to be focused as majority of the respondents dont know about the Maruti true value.
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Q.17) Would you prefer to buy from "Maruti True Value" if it is provided 3 free services and 1 year gurantee
Would you prefer to buy from "Maruti True Value" if it is provided 3 free services and 1 year gurantee Frequency 26 27 53 47 100 Percent 26.0 27.0 53.0 47.0 100.0 Valid Percent 49.1 50.9 100.0 Cumulative Percent 49.1 100.0
Valid
Missing Total
Yes No' Total System
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
30
20
10
Frequency
0 Yes No'
Would you prefer to buy from "Maruti True Value" if it is provided 3 fre
Findings: 49 % of Respondents will refer to buy from "Maruti True Value" if it is provided 3 free services and 1 year gurantee 51 % of Respondents will not prefer to buy from "Maruti True Value" if it is provided 3 free services and 1 year gurantee
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For Students(Professional)
Q 1) Are you Localite or non localite
Are you Localite or non localite Frequency 14 11 25 Percent 56.0 44.0 100.0 Valid Percent 56.0 44.0 100.0 Cumulative Percent 56.0 100.0
Valid
Localite Non-Localite Total
Are you Localite or non localite

60 56 50 44
40
30
20
Percent
10
0 Localite Non-Localite
Are you Localite or non localite
Findings: 56% of Respondents said they are localites 44% of Respondents said they are non- localites
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Q 2) If non- localite how long is it since you are studying here?

If non- localite how long is it since you are studying here? Frequency 2 Yrs 8 2 yrs and above 17 Total 25 Percent 32.0 68.0 100.0 Valid Percent 32.0 68.0 100.0 Cumulative Percent 32.0 100.0
Valid
If non- localite how long is it since you are studying here?

80 70 68 60 50 40 30 20 32
Percent
10 0 2 Yrs 2 yrs and above
If non- localite how long is it since you are studying here?
Findings: 32% of Respondents are under 0-2 year courses 68% of Respondents are under 2 year and above courses
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Q 3. Monthly Pocket money

Monthly Pocket money Frequency 11 14 25 Percent 44.0 56.0 100.0 Valid Percent 44.0 56.0 100.0 Cumulative Percent 44.0 100.0
Valid
>10000 <10000 Total
Monthly Pocket money

60 56 50 44
40
30
20
Percent
10
0 >10000 <10000
Monthly Pocket money
Findings: 56% of Respondents are having pocket money >10000 44% of Respondents are having pocket money <10000
84
Q. 4) Do you stay in hostel or room

do you stay in hostel or room Frequency 7 18 25 Percent 28.0 72.0 100.0 Valid Percent 28.0 72.0 100.0 Cumulative Percent 28.0 100.0
Valid
Hostel Rented house Total
do you stay in hostel or room

80
60
40
20
Percent
0 Hostel Rented house
do you stay in hostel or room
Findings: 28% of Respondents stay in hostel. 72% of Respondents are stay in rented house.
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Q. 5) How far is it from your college?

How far is it from your college? Frequency Far 9 not very far 9 close by. 7 Total 25 Percent 36.0 36.0 28.0 100.0 Valid Percent 36.0 36.0 28.0 100.0 Cumulative Percent 36.0 72.0 100.0
Valid
How far is it from your college?

40 36 30 28 36
20
10
Percent
0 Far not very far close by.
How far is it from your college?
Findings: 36% of Respondents stay far by college. 36% of Respondents stay which is not very far by college. 28% of Respondents stay near by college.
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Q.6) Do you own a vehicle?

Do you own a vehicle? Frequency 15 10 25 Percent 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0
Valid
Yes No Total
Do you own a vehicle?

No 40.0%
Yes 60.0%
Findings: 60% of Respondents own a vehical 40% of Respondents do not own a vehical.
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Q.7) If Yes, is it a
if Yes, is it a Frequency 9 6 15 10 25 Percent 36.0 24.0 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0
Valid
Missing Total
2 wheeler 4 wheeler Total System
if Yes, is it a
70 60 50 40 30 20
60
40
Percent
10 0 2 wheeler 4 wheeler
if Yes, is it a
If you own a 4 wheeler, is it a

If you own a 4 wheeler, is it a Frequency new car 1 pre-owned car 4 Total 5 System 20 25 Percent 4.0 16.0 20.0 80.0 100.0 Valid Percent 20.0 80.0 100.0 Cumulative Percent 20.0 100.0
Valid
Missing Total
88

100
80
80
60
40
20
Percent
20
0 new car pre-owned car
If second hand car, have you purchased it locally

If second hand car, have you purchased it locally Frequency 3 1 4 21 25 Percent 12.0 4.0 16.0 84.0 100.0 Valid Percent 75.0 25.0 100.0 Cumulative Percent 75.0 100.0
Valid
Missing Total
Yes No Total System

80 75
60
40
20
25
Percent
0 Yes No
would you like to buy a second-hand 4 wheeler for time being?
89
would you like to buy a second-hand 4 wheeler for time being? Frequency 12 11 23 2 25 Percent 48.0 44.0 92.0 8.0 100.0 Valid Percent 52.2 47.8 100.0 Cumulative Percent 52.2 100.0
Valid
Missing Total
Yes No Total System

60
50
52 48
40
30
20
Percent
10
0 Yes No
90
would you buy it from a

would you buy it from a Frequency certified dealer 4 An uncertified dealer 8 Total 12 System 13 25 Percent 16.0 32.0 48.0 52.0 100.0 Valid Percent 33.3 66.7 100.0 Cumulative Percent 33.3 100.0
Valid
Missing Total
would you buy it from a
certified dealer 33.3%
An uncertified deale 66.7%
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What was the price will/ did you look for ?

What was the price will/ did you look for ? Frequency 50,000- 75,000 8 75,000- 1,50,000 4 Total 12 System 13 25 Percent 32.0 16.0 48.0 52.0 100.0 Valid Percent 66.7 33.3 100.0 Cumulative Percent 66.7 100.0
Valid
Missing Total

70 67 60 50 40 30 20 33
Percent
10 0 50,000- 75,000 75,000- 1,50,000
92
What is the age of the car you would consider?

What is the age of the car you would consider? Frequency 7 3 2 12 13 25 Percent 28.0 12.0 8.0 48.0 52.0 100.0 Valid Percent 58.3 25.0 16.7 100.0 Cumulative Percent 58.3 83.3 100.0
Valid
Missing Total
2-3 years 4-5 years 5-10 years Total System

70 60 58 50 40 30 20 25 17
Percent
10 0 2-3 years 4-5 years 5-10 years
93
Have you heard of Bellad Motors-'Maruti True Value'- Hubli ? From what source you have heard about it?
From what source you have heard about it? Frequency 16 9 25 Percent 64.0 36.0 100.0 Valid Percent 64.0 36.0 100.0 Cumulative Percent 64.0 100.0
Valid
Yes No Total
From what source you have heard about it?

70 60 50 40 30 20
Percent
10 0 Yes No
94
95

70 60 50 40 30 20
Percent
10 0 Yes No

100
80
60
40
20
Percent
0 Yes No

120
100
80
60
40
Percent
20
0 No
96
Would you buy a car from 'True Value' if it gave 3 free service backup, and 1 yr guarantee?
Would you buy a car from 'True Value' if it gave 3 free service backup, and 1 yr guarantee? Frequency 10 15 25 Percent 40.0 60.0 100.0 Valid Percent 40.0 60.0 100.0 Cumulative Percent 40.0 100.0
Valid
Yes No Total
Would you buy a car from 'True Value' if it gave 3 free service backup,
70 60 50 40 30 20
60
40
Percent
10 0 Yes No
Would you buy a car from 'True Value' if it gave 3 free service backup,
97
For Dealers
Since when is your organization established?
Since when is your organization established? Frequency 3 2 5 10 Percent 30.0 20.0 50.0 100.0 Valid Percent 30.0 20.0 50.0 100.0 Cumulative Percent 30.0 50.0 100.0
Valid
0-5 5-10 10-15 Total

60
50
40
30
20
Percent
10
0 0-5 5-10 10-15
98
Does your organization use middlemen?

Does your organization use middlemen? Frequency 5 5 10 Percent 50.0 50.0 100.0 Valid Percent 50.0 50.0 100.0 Cumulative Percent 50.0 100.0
Valid
Yes No Total

60
50
40
30
20
Percent
10
0 Yes No
99
What kind of promotional activities do you use?

70 60 50 40 30 20
Percent
10 0 Yes No

100
80
60
40
20
Percent
0 Yes No

60
50
40
30
20
Percent
10
0 Yes No
100
When is the peak time for the Maximum Sales?

80
60
40
20
Percent
0 Yes No

70 60 50 40 30 20
Percent
10 0 Yes No

100
80
60
40
20
Percent
0 Yes No
101
What is the average sales per year?

What is the average sales per year? Frequency 6 3 1 10 Percent 60.0 30.0 10.0 100.0 Valid Percent 60.0 30.0 10.0 100.0 Cumulative Percent 60.0 90.0 100.0
Valid
25- 125 125- 225 225- 325 Total

70 60 50 40 30 20
Percent
10 0 25- 125 125- 225 225- 325
102
ANALYSIS USING SPSS

Analysis Using SPSS
Crosstab of Profession and Buying a New Car or a Pre Owned

Profession of Respondent * Would you buy a new car or pre-owned car Crosstabulation Count Would you buy a new car or pre-owned car Pre owned Dont Want New car car Cars 2 1 1 3 6 10 1 4 10 1 3 10 5 9 2 21 43 4
Total 3 4 17 15 13 16 68
Engineer Doctor Lecturar Business Advocate Banker
Total
12
10
Would you buy a new

New car
Count
Pre owned car 0 Engineer Doctor Lecturar Advocate Banker Business Dont Want Cars
Interpretation Out of 3 engineers 2 says new car, and 1 say pre owned car. Out of 4 doctors 2 says new car, and 1 say pre owned car. Out of 17 lecturers 6 say new car and 10 say pre owned car. Out of 15 Business men 4 says new car, and 10 say pre owned car. Out of 13 advocates 3 say new car, and 10 say pre owned car. Out of 16 bank employees, 5 say new car, and 4 say pre owned car.
103
Crosstab of Income and Buying a New Car or a Pre Owned
Income of Respondent * Would you buy a new car or pre-owned car Crosstabulation Count Would you buy a new car or pre-owned car Pre owned Dont Want New car car Cars 3 13 3 9 27 1 9 3 21 43 4
Income of Respondent Total

30
Rs 50,000-Rs 1,00,000 Rs 1,00,000-Rs 1,50,000 Rs 1,50,000-Rs,2,00,000
Total 19 37 12 68
20
10
Would you buy a new

New car
Count
Pre owned car 0 Rs 50,000-Rs 1,00,00 Rs 1,50,000-Rs,2,00, Rs 1,00,000-Rs 1,50, Dont Want Cars
InterpretationOut 19 respondents falling in the income category of Rs 50, 000- 1, 00, 000, 13 prefer pre- owned car. Out 37 respondents falling in the income category of Rs 1, 00 000- 1, 50, 00 27 prefer pre- owned car. Out 12 respondents falling in the income category of Rs 1, 50, 000- 2, 00, 000 3 prefer pre- owned car.
104
Awareness of Maruti True Value i) Age wiseCrosstab Count aware of Maruti True Value no yes 33 10 30 9 16 2 79 21
Total 43 39 18 100
Age
25-35 35-45 45-60
Total
Interpretationout 43 respondents falling in the age category of 25- 35, 10 have heard of Maruti True Value. Out 39 respondents falling in the age category of 35- 45, 9 have heard of Maruti True Value. Out 18 respondents falling in the age category of 45- 60, 2 have heard of Maruti True Value.
ii) Profession wiseCrosstab Count aware of Maruti True Value no yes 31 5 9 4 18 5 11 4 3 1 7 2 79 21
Total 36 13 23 15 4 9 100
PROFESSION
lecturer banker advocate business engineer housewife
Total
Out of 36 lecturers 5 have heard of True Value. Out of 13 bank employees, 4 have heard of True Value Out of 23 advocates 5 have heard of True Value. Out of 15 Business men 4 have heard of True Value. Out of 4 engineers 1 has heard of True Value.
105
Findings:
Professionals:
cars 54 % of Respondents came to know about uncertified dealers through Advertisements and33 % of Respondents came to know about uncertified dealers through Friends & Neighbours Out of 68% of sampling who dont own car, 31 % of Respondents wants to go for new car and 63 % of Respondents wants to buy pre owned car and 63% would buy it from uncertified dealers. 50 % of Respondents considers budget while buying pre-owned car and 40 % 40 % of Respondents heard about Maruti True Value Remaining 60% heard it from Advertisements, friends/neighbours 58% say they would not buy from True Value of Respondents considers milage while buying pre-owned car, 36 % of Respondents are of age 25-35, 37 % of Respondents are of age 35-45, 88 % of Respondents are male, 12 % of Respondents are Female 42 % of Respondents are under income Rs.1,00,000-Rs.1,50,000 and 36 % of 81 % of Respondents are Married 31 % of Respondents have one child and 38 % of Respondents have two 68 % of Respondents dont have their own car Out of remaining 32% of sample size 54 % of Respondents have Pre owned
23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater than 55
Respondents are under income Rs.1,50,000-Rs.2,00,000
children
Sample of Students The sample is non-localities 68% of them are staying here since more than 2 yrs.
106
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value 56% get more than Rs 10,000/- as their monthly pocket money. 60% own a vehicle, out of which 60% own a 2 wheeler, and 40% a 4 wheeler. 80% out of the 40% owning a 4 wheeler, own a Pre-Owned Car. 70% have purchased it locally. 55% of the sample is interested in buying a car (pre- owned) for time being. 78% said they would buy from an Un-certified Dealer. Expected price range is- 83% said Rs 50,000- 75,000 53% are aware of the concept of Marutis True Value. 42% have heard it from news papers, and 0% from melas. 71% say they would not buy from Maruti True Value.
Sample of Dealers 20 % are established in the market since 5-10 years and 50 % are since from
10-15 years 50% use middlemen for sales. Promotion activities60%- use news papers 40% - pamphlets 25%- Melas 70% consider festive season as peak point for sales. The average sales per year is- 60% said- 25-125 cars 30% said- 425- 525 cars 67% say customers look for budget
107
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value 68% say customers look for age of the car 90% say customers look for mileage
108
Recommendations and Suggestions With my findings the suggestions that I can give are-
For the Professionals Target Segment- the target customers whom I suggest Bellad Motors should concentrate is the advocates, lecturers and petty business men, because they are the respondents who are keen in buying pre owned cars. The target can also be segmented age wise, 25-45 are the most interested segment in buying a pre owned car. Bellad Motors as a dealer is very well known and well established in the twin city market, but the concept of True Value is not known to MOST of the localities. Therefore Bellad Motors should make an effort to advertise and promote True Value through various mediums like news papers, melas and pamphlets. Test, Mostly the age group of 25-35 is aware of the Marutis True Value concept. Family size influences in buying a car is proved through the Chi Square therefore respondents of the lower income category can also be looked at, Out of respondents who own pre owned cars, 98% bought it from a Undealer, this shows that people do not prefer buying pre- owned cars
for the sales of the pre owned cars. Certified
from certified dealers, therefore Maruti True Value should make an effort to change this mind set of the people in Dharwad city. When respondents were asked what have they heard of Maruti True Value, the responses were mostly negative. Price was the major issue they have with True Value. They say that it charges much a higher price than the other dealers; therefore I suggest that either Maruti should try to reduce the price of the vehicles or Bellad Motors should try to change the perception of the people by highlighting the plus points like 1 yr warranty and 3 free services.
109
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value petty Pre-Owned is more of a sophisticated word for the localities; the other dealers have an upper hand on this front, as they use a much simpler and an as this was the insight got from the personal interaction with the
easily understood word second hand. Therefore I suggest that Bellad considers this point, respondents. Another drawback of Bellad Motors is that True Value section cannot be from the highway; only a keen observer can notice it, a bigger board is what comes to peoples mind when asked if they have easily seen
or a hoarding can be placed in a most strategic location of the showroom. The Bellad showroom heard of Maruti True Value, it is because of the easy view from the highway.
For the students Most of the students want to buy a pre owned car from an un certified
dealer, because of the price factor, therefore when targeting the students category lowering the price should be considered. I suggest that the price can be lowered by not including the free service and warranty on the car, as the students do not mind it. The expected price of the pre owned cars is from Rs 50,000- 75,000. The expected age of the car is mostly 3-5 yrs, which the company can More than 50% of the students are not aware of the True Value concept, 61% of the students get more than Rs 10,000 as their pocket money, this
consider these aspects when targeting the students. which again calls for advertisements from Bellad Motors. signifies that it can be assumed the students are from well to do families and Bellad Motors can use this as a advantage and try perusing them. From the personal interaction with the students, the insights gained were, that the students go to these second hand car melas, and 0% 0f them have known or heard of True Value conducting melas, therefore I suggest that it be advertised properly.
110
Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value The awareness can be spread by using banners and displayed it in front of The students look for sponsors, True Value can use this as one of their
the college campus in the most attractive manner. tools in spreading the awareness, by displaying one of the pre owned cars, with the minimal price rate.
111
800
Analysis China of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value 743
Telecom Subscribers - Country wise December 2005
600 mn. subscribers USA 360 The study helped me gain valuable insights in Opportunity Analysis and Consumer
Behavior, towards buying a pre owned car. This project titled , has been a knowledge gaining experience for me. By interacting with the respondents and Japan Rus
Conclusions
400
200
153 making visits to the Uncertified Dealers. I have understood that understanding 130 125
customers is an art and it takes a very strong brand image for a company to retain & grow its market share. The results of the survey proved to be both encouraging and
Germany 134
Ind
partly discouraging too. The respondents were not very positive about Marutis True Value, which was quite discouraging and a negative sign for the company. The segment for which Bellad Motors should cater to is a price sensitive segment, so as the organization should focus on highlighting the additional perquisites that they would provide with the car, it is going to bond well with the targeted market and even grow their market to all the geographical areas. Though there are many competitors in the market for this segment, the company has an added advantage, but still it cannot rule out the local dealers. But I believe that Bellad Motors Maruti True Value has what it takes to become a name to reckon with in the market and I offer my best wishes for the same and hope that my work will be of some use for the company.
The majority of the indian population is of the middle class segment which demand for the low cost and low maintaince cars this very reason has given birth to the pre-owned car segment which is growing at the accelerating growth rate.
112

A PROJECT REPORT On Analysis of The Pre-Owned Car Market in Hublli of TRUE VALUE

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A PROJECT REPORT On Analysis of The Pre-Owned Car Market in Hublli of TRUE VALUE

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Analysis of the Pre-owned car market in Hubli for Bellad Motors Maruti True Value

Section 1 Executive Summary

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Title of the project

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NEED FOR THE STUDY:

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23 % of Respondents are of age 45-55, 4 % of Respondents are of age greater than 55

Respondents are under income Rs.1,50,000-Rs.2,00,000

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70% consider festive season as peak point for sales.

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Recommendations and Suggestions For the Professionals:

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For the students:

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Scaling costs Optimizing resources

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Auto Component Market

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ANALYSIS OF THE CAR MARKET IN INDIA

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*Source: World Bank

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(Actual) (Forecast) (Forecast) 611715 666248 838845 8%

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Perception about quality. Infrastructure bottlenecks.

Export Imperatives: Internal Factors:

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Improve infrastructure (ports, roads, etc). Improve EXIM regulations.

Industry analysis using porters five force:

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Competition from substitute

Treat of new entrants

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Bargaining power of Buyers

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Maruti Suzuki motors

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Local market trends

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BELLAD MOTORS (P) LTD.

Team Leader Sr. Sales Executive

Reception Data Entry