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Abstract: The automobile industry of India is one of the Some of the previous studies done in various zones in India
largest in the world and growing steadily each year. With like West Haryana [5], New Delhi [6], Jaipur [7] and Kerala
the ease of availability of automobile loans, therise in [8] on car purchasing behavior have reported changing
salary structures and higher buying capacity of the middle trends as per changing times as also the effect of
income class, there has been a spurt in cars plying on multinationals on the Indian automobile market. Most
roads. The present paper indulges in studying the buying studies have reported the advent of newer technology as the
behavior of cars in India. Apart from the literature review biggest decision maker in this aspect. Whereas Television
of the concurrent facts and figures, a questionnaire survey advertising is amongst the biggest influencers [9] other
was conducted to understand the various factors that medium like word of mouth, magazines and ratings also
influence the decision in purchasing cars in India. A have their weightage. Some research have studied factors
questionnaire survey was designed in Google forms and like family needs, fuel efficiency, pricing, safety and social
sent to people using different tools like e-mail, WhatsApp, status as important in automobile buying behavior of the
Facebook, etc. For those who were not well versant with consumer [10] whereas others have also focused on value
these tools a hard copy of thequestionnaire was provided to for money [11], affordability [12] and brand personality
them for filling up. The results of the survey were analyzed alongwith the impact of manufacturer’s websites in this
statistically and are presented here. decision making process [13]. The husbands in families
have been found to be major decision makers while
Keywords: buying behavior; automobile; questionnaire purchase of cars [14].
survey; social media
TABLE 1: Automobile Production Trends in
1. INTRODUCTION India from 2011 – 2017
The automobile industry of India is one of the largest in the Year Passenger vehicle Passenger vehicle
world, contributing 7.1% to the Gross Domestic Product production domestic sales
(GDP)[1]. As a person moves up the ladder in his income, 2011-12 31, 46, 069 26, 29, 839
his/her first priority is to buy a car. It is becoming more of a 2012-13 32, 31, 058 26, 65, 015
necessity nowadays to own a car than a luxury. Presently, a
2013-14 30, 87, 973 25, 03, 509
100% Foreign Direct Investment (FDI) is allowed in this
area meaning the foreign investors do not need any prior 2014-15 32, 21, 419 26, 01, 236
permission from the government of India. The sales of 2015-16 34, 65, 045 27, 89, 208
private vehicles grew by 9.17% commercial vehicles by 2016-17 37, 91, 540 30, 46, 727
3.03% and 2 wheelers by 8.29% during the period April-
January 2017[2]. During the financial year 2016-17 a total In today’s world, consumers do not only consider engine
of 37, 91, 540 units of passenger vehicles; 8, 10, 286 units performance as a major factor. They look for those
of commercial vehicles; 7, 83, 149 units of three-wheelers differentiating parameters, through which they can make
and 1, 99, 29, 485 units of two-wheelers were produced as the choice from one brand to another. As stated by financial
shown in table 1 [3]. The world standing for the Indian time, India has become fifth largest passenger vehicle
automobile sector, as per the Confederation of the Indian market, after China, US, Japan, and Germany. The sale of
industry is the largest three-wheeler market, second largest passenger vehicles too grew 9.24% to 3.04 million during
two-wheeler market, tenth largest passenger car market, 2016-17, the fastest growth rate seen since 2010-11, when
fourth largest tractor market, fifth largest commercial they grew 28.2%.[16].
vehicle market and fifth largest bus and truck segment. In
India, a total of Rs. 92, 218.42 crore or 5.02% of the total With the dynamic international norms as regards to both
FDI inflows in India, from April 2000 to March 2017 has business and environmental protection, the car industry has
been towards the automobile industry[4]. to keep pace with the changing scenarios. There has been a
3. RESULTS
Majority of the respondents (82.50%) in the survey were aged between 18
18-25, followed by 7.8% being aged between 25-35
25
and 9.55% is above the age of 35 (Fig. 2). Whereas 77% were students
students, the rest were working professionals,
professionals home makers
and retired people (Fig. 3).
100.00% Age Groups
82.50%
50.00%
Number of Responses
7.80% 3.55% 4% 1.70% 0.30%
0.00%
18-25 25-35 35-45 45-55 55-65 65+
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Consumer Buying Behaviour of Cars in India - A Survey
Income Group
40.00% 29.10% 25% 28.20%
17.70%
20.00% Income Group
0.00%
₹50,000 - ₹1,00,000 - ₹5,00,000 - ₹10,00,000 +
₹1,00,000 ₹5,00,000 ₹10,00,000
Figure
ure 4 illustrates the income group of the respondent’s family income. Most of the respondents belong to the income group
Rs. 100000-500000
500000 per annum. 28.20% of them earn more than Rs 100000 per annum. 25% belong to the income group
Rs.500000-1000000.
Aroundd 40.98% of the people in the survey did not own a car (Fig. 5). The percentage of people owning 1 car in the family
was 31.65% and 27% of the respondents own 2 and more cars in the family.
1
31.65%
40.98% 2
3+
4.27% 18.40%
None
4.41%
With a figure of 61%, Sedan iss the most preferred car among the respondents (Fig. 6)
6), followed by SUV and Hatchback.
MUV is the least preferred car type (6.40%). Out of the total respondents
respondents, the brand preference (Fig 7) is as follows -
Maruti(16.50%), Hyundai(13.40%), Honda(14%)
Honda(14%), Toyota(11%), Mahindra(5.70%), Tata(3%),Tata(3%) Volkswagen(11.20%),
Nissan(5.30%), Ford(8.20%), Renault(4%),, Skoda(6.20%), BMW(0.5%), Audi(0.5%) and Mercedes(0.3%).
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Consumer
er Buying Behaviour of Cars in India - A Survey
Type of Car
70.00%
60.00%
61%
58.20%
50.00%
40.00%
30.00%
32.70%
20.00%
10.00%
0.00% 6.40%
Hatchback Sedan SUV MUV
Brand Preference
Mercedes 0.30%
Audi 0.50%
BMW 0.50%
Skoda 6.20%
Renault 4%
Ford 8.20%
Nissan 5.30%
Volkswagen 11.20% Brand Preference
Tata 3%
Mahindra 5.70%
Toyota 11%
Honda 14%
Hyundai 13.40%
Maruti 16.50%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Most off the people (37.50%) are satisfied with either of the two engines
engines-petrol
petrol or diesel (Fig. 8). The second most preferred
engine type is petrol with 31.10% and 25.50% people prefer a diesel engine. The least preferred is electric engine. Figure 9
illustrates the effect of brand image on the buying behaviour of the respondents. Majority of them are affected by the brand
image before they finalize their buying decision. They are also influenced by the advertising of the cars and the features that
th
are displayed in them.
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Consumer Buying Behaviour of Cars in India - A Survey
Type of Engine
40.00%
30.00%
20.00% 31.10%
25.50% 37.50%
10.00% Type of engine
0.00%
Petrol 6%
Diesel
Petrol or Diesel
Electric
No 120
Brand image
Yes 695
4. CONCLUSION REFERENCES
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