CHAPTER - I

INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTION
INDIAN AUTOMOTIVE INDUSTRY INDUSTRY PROFILE
The far-reaching economic reforms undertaken since 1991 have
unleashed the growth potential of the Indian economy. A series of Second
Generation Reforms aimed at deregulating the country and stimulating
foreign investment have moved India firmly into the front ranks of the
rapidly growing Asia Pacific region.

The automotive Industry in India is now working in terms of the
dynamics of an open market. Many joint ventures have been set up in India
with foreign collaboration, both technical and financial with leading global
manufacturers. The Government of India is keen to provide a suitable
economic and business environment conducive to the success of the
established and prospective foreign partnership ventures.

The joint venture list indicates a wide variation ranging from 10% to
100%, i.e., wholly owned foreign subsidiaries. The equity participation is not
regulated by Government but is market driven. It depends upon the market
perceptions of the joint venture partners and their business perceptions
primarily in terms of technological, financial and market strengths of the
partners. The setting up of joint ventures has also led to enhanced capacity
creation in the vehicle sector, particularly in the passenger car sector and the
additional capacity is expected to mount by one million passenger cars in the
next 4-5 years.

Concentrated efforts are going on in India for inducting and absorbing
the latest technology and upgrading the quality of products to an
international level and a partner search mission is on. Indian firms are on the
lookout for Joint Ventures and Technology Transfers specializing in niche
technology and to complement their range of products as well as bench
marking with the worlds latest and the best.

AUTOMOTIVE INDUSTRY IN INDIA
The Automobile industry in India is one of the largest in the world and
one of the fastest growing globally. India's passenger car and commercial
vehicle manufacturing industry is the seventh largest in the world, with an
annual production of more than 3.7 million units in 2010. According to
recent reports, India is set to overtake Brazil to become the sixth largest
passenger vehicle producer in the world, growing 16-18 per cent to sell
around three million units in the course of 2011-12. In 2009, India emerged
as Asia's fourth largest exporter of passenger cars, behind Japan, South
Korea, and Thailand.

As of 2010, India is home to 40 million passenger vehicles. More than
3.7 million automotive vehicles were produced in India in 2010 (an increase
of 33.9%), making the country the second fastest growing automobile market
in the world.

The majority of India's car manufacturing industry is based around
three clusters in the south, west and north. The southern cluster near Chennai
is the biggest with 35% of the revenue share. The western hub near
Maharashtra is 33% of the market. The northern cluster is primarily Haryana
with 32%. Chennai, is also referred to as the "Detroit of India" with the India
operations of Ford, Hyundai, Renault and Nissan. Chennai accounts for 60%
of the country's automotive exports.

The projected figures from 2005-06 to 2010-11 in 2011's are given in
the table below:
Particulars 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Cars 796 876 960 1060 1166 1283

India's potential in both economic and population terms and the effect
it will have on the auto industry in the years to come. With a well-developed
components industry and a production level of one million four-wheeled
vehicles a year, plus a further five million two- and three-wheelers, India
came to be recognized as a potential emerging auto market a few years back.

But now, it is also the fastest growing auto market globally. And
judging by the growth rate of auto sales recorded in 2004, and the slew of
new launches poised for this year, it seems that India has finally arrived in
the big league of the Asian car markets.

With almost 24 percent growth in car sales in 2004, India has emerged
as the fastest-growing car market in the world, outstripping China's
estimated 13.7 percent growth last year.

Sales of passenger vehicles crossed the million-figure mark (1,044,597
units) in 2004, making India the fastest growing in this segment. The growth
rate of other segments was equally impressive. Sales of commercial vehicles
grew at 28 percent, two-wheelers at 17 percent, three-wheelers at 13 percent
and exports went up by 36 percent.

India's total auto tally in 2004, however, is nowhere close to China,
which sold 2.2478 million units in 2004. But that was 52.7 percent points
lower than the 66.4 percent growth in 2003. Sales of cars started dropping in
April last year and even posted negative growth in September and October,
and then recovered a bit in the last two months of the year.

"There is no doubt that India has lately emerged as one of the fastest
growing auto markets in the world," and one of the main reasons behind that
is the fact that the car market is also undergoing significant structural shifts."

One such major shift is easy finance. Over 80 percent of the cars sold
in the country now are financed, thanks to the continuously sliding interest
rates for the past five years. Consequently, car upgrades have become
frequent and multiple ownership a norm.

A booming market then has expectedly changed the perception of
foreign investors, for whom the Indian market, or rather the lack of it, was a
laughing stock not so long ago. "The past two years have completely
changed the way the world views India," says Rajesh Jejurikar, vice
president of Indian auto major Mahindra and Mahindra. "Now, everybody
wants to be here."

The country is also getting all the variety and attention that were so far
reserved for mature car markets. Creating a landmark of sorts, 35 new car
models will hit Indian roads this year, including 11 "Super Luxury" cars
from celebrated brands like Audi, BMW, Ferrari and Alfa Romeo.

The next three to four years could see the industry pump in as much as
$5 billion, "out of which foreign direct investment would be close to $3
billion - higher than ever,"

The report added that in line with the industry's projection, India
would add a million cars a year from next year. Other projected growth rates
indicate that total demand for passenger vehicles in 2007 will be around 2.24
million units as against 1.87 million units of installed capacity.

According to the Society of Indian Automobile Manufacturer's
projections, domestic sales of passenger vehicles (cars and utility vehicles)
are set to grow at 20 percent over the next two years, given the current GDP
growth, and exports at 40 percent.




CUSTOMER EXPECTATIONS
According to Zeithaml, Bitner, and Gremler (2006), customer
expectations are beliefs about a service delivery that serve as standard
against which performance is done. Davidow and Uttal (1989) proposed
that customer expectation is formed by many uncontrollable factors, which
include previous experience with other companies, and their advertising,
customers psychological condition at the time of service delivery, customer
background and values and the images of the purchased product.

In addition, Zeithaml et al. (1990) stated that customer service
expectation is built on complex considerations, including their own pre-
purchase beliefs and other peoples opinions. Similarly, Miller also stated
that customers expectation related to different levels of satisfaction. It may
be based on previous product experiences, learning from advertisements and
word-of-mouth communication. Santos added that expectation could be seen
as a pre-consumption attitude before the next purchase; it may involve
experience.

Customers expectation is what the customers wish to receive from the
services. The diversity of expectation definitions can be concluded that
expectation is uncontrollable factors which including past experience,
advertising, customers perception at the time of purchase, background,
attitude and products image. Furthermore, the influences of customers
expectation are pre-purchase beliefs, word-of-mouth communications,
individual needs, customers experiences, and other personal attitudes.
Different customers have different expectation based on the customers
knowledge of a product or service.

Customer Expectations can present a number of major challenges.
This is due to the layers of activity and number of individuals that are
involved in the movement and handling of goods. Add in a mixture of
languages, cultures, sovereign nations, conflicting regulations, corporate
objectives, and one of the most critical; time. Customers expectations are a
forward looking task; something that the service provider must know
before commencing their activities and if the definition of a successful end
is not clearly defined and mutually agreed upon, the chance of meeting your
customers expectations is pretty close to nil.

CUSTOMER SATISFACTION
Satisfaction is a persons feelings of pleasure or disappointment
resulting from comparing a product perceived performance or outcome in
relation to his expectations.

As this definition makes clear, satisfaction is a function of perceived
performance and expectations. If the performance falls short of expectations,
the customer is dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds expectations, the customer
is highly satisfied or delighted.

Customer Satisfaction research identifies how well an organization is
performing from the customers viewpoint. It allows any organisation to
understand how their customers are with the level of service they are
providing at any point in time, and to track how satisfaction levels change
over time. It does not investigate the reasons or reality behind the Customer
Satisfaction, unlike Service Evaluation research but still provides extremely
valuable information such as highlighting an area where service needs
improving.

Tracking satisfaction levels can be particularly powerful when it
concentrates on identifying levels of satisfaction against the specific
elements of service that most matter to customers and which the organization
can change; and where possible, compare satisfaction levels across
competing organizations. This can also be used to highlight differences
between customer segments, potentially identifying segments at greatest risk.
Customer Satisfaction research is often used as part of a wider project
designed to help an organization or company improve its service provision,
customer satisfaction and customer interaction.

Customer Satisfaction, by nature, is dependent on an individuals
expectations and previous experience of service.

In order get the most out of the research for your organization, it is
best for a Customer Satisfaction research project to link to your
organizations service standards (whether formal or informal). For example,
there may be a service standard which states that all customers should be
given an appointment within two weeks of making a request. It would be
relatively easy to ascertain whether this standard was being met in practice.
But customers satisfaction with how quickly they receive an appointment
would need to be tested through direct research with customers.

How do we build strong and innovative organizations that can survive
and prosper during times of great change. In recent years, we have learned
much about successful organizations. The success of such organizations can
be understood by how well the organization handles three key ingredients.


OBJECTIVES OF THE STUDY
This study is undertaken with the following objectives.
To identify the various attributes of Maruti Alto 800 cars and other
cars that influences on an individuals choice among alternatives.
To identify the attractiveness of the Maruti Alto 800 advertisement.
To identify the reason for the brand preference over the competing
brands and to find out the consumer perception on various attributes of
the products.
To identify the maintenance handling system adopted by the users.
To find out the consumer satisfaction level on service provided by the
dealers and also towards their product.
To identify the level of brand loyalty of customers.
To identify the kinds of recommendations made towards the product
to others.

SCOPE OF THE STUDY
It helps the organization to understand the consumer psychology on
choosing the product or service so that easily the product can be
positioned.
It assesses the preference of choosing the Maruti Alto 800 car by the
respondents.
The study helps us to know about the Customer perception towards
Maruti Alto 800 car and other competing brands.
It also helps to assess the real opinion and mindset of consumers and aids
to meet out their expectation in future in turn that will increases the
volume of sales.
It helps the company to understand the efficiency of dealer service
provided to the consumers, so that it can create the root for further
improvement.
It identifies the usage and maintenance system adopted by the consumers
so that it helps the company to educate the customers further towards
the product usage and maintenance. So that it really creates an impact
on consumer perception towards the product.

RESEARCH DESIGN
It is a conceptual structure within which research should be conducted.
Thus the preparation of such a design facilitates research to be as efficient as
possible and will yield max information.

RESEARCH OBJECTIVES
To study the perception of consumers towards the Maruti Alto 800.
To identify the influencing factors on individuals choice among the
alternatives.
To analyse the interest of respondents in towards Maruti Alto 800
cars.
To know the reason for preferring the competitors brand (Other
Brands).
To identify the real opinion of Maruti Alto 800 cars towards the
consumers.

RESEARCH METHODOLOGY
RESEARCH DESIGN
A research design is purely and simply basic framework or plan for a
study that guides the collection of data. The research design specifies the
methods for data collection. Here a descriptive research design has been
used.
There are three types of research design via,
Explanatory
Descriptive
Casual research

The type of research design that is followed in this research is
descriptive research design.


DESCRIPTIVE RESEARCH DESIGN
Descriptive research design is also called explanatory design.
Descriptive research design is one that simply describes something such as
demographic characteristics of consumers who use the products. The
descriptive study is typically concerned with determining the frequency with
which something occurs. This study is typically guided by an initial
hypothesis.

For example, an investigation of trends in consumption of vehicles
with respect to the socio- economic characteristics such as age, gender,
occupation, income and so on forms a descriptive study.

SAMPLING TECHNIQUES
The sampling techniques used in this study are random sampling. In it
a fraction of the population under study who are considered for analysis
because of random of the Investigator that is called sampling method.

SELECTION OF AREA
In Erode District, various people like Businessmen, Professional,
Employees, Private Services, Government Services and Students use Maruti
Alto 800. So the research is conducted in Erode District.

STUDY OF POPULATION
The study of population constitutes of 200 respondents.

TYPES OF QUESTIONNAIRE
Designing and implementing the questionnaire is one of the most
interesting, and challenging tasks of conducting research work. While
constructing a questionnaire we must keep in mind two things.
a. Objectives of the research project
b. The respondents point of view

Structured non disguised questionnaire has been adopted for this
study. In this a test of questions may be set up that ask directly a set of
questions in the alternative which is stated or implied.

In this non disguised questionnaire the purpose of the study is
explained clearly to the respondents.

Before using the method a public survey was conducted for testing the
questionnaire in order to eliminate the errors and to present the questionnaire
in a more sequence order to the respondents.


COLLECTION OF DATA
Data collection is the main effect of the study. Data can be obtained
from two important sources, viz.,
Primary Data
Secondary Data

PRIMARY DATA
Primary Data are the data which have been collected by the
investigator for the first time. Among the primary data methods, survey is
the best method for knowing the consumers preference for a particular brand.
Survey is the methods were an investigator prepares a questionnaire to yield
most satisfactory results. The survey is conducted with the help structured
and disguised method.

SECONDARY DATA
The secondary data refer those data which are gathered for some other
purpose and are already available in the records and commercial and trade
publications.




SECONDARY DATA ARE OBTAINED FROM
Web Sites
Newspapers
Magazines
Journals
Dealers
They have been approached for the purpose of knowing the Profile
of the company.

RESEARCH PLAN
Data source : Primary and Secondary data
Research Approach : Survey method
Research Instrument : Questionnaire
Contact method : Direct Personal Interview
Sample size : 200

TOOLS FOR DATA COLLECTION
PERCENTAGE ANALYSIS
Percentage analysis is the method to represent raw streams of data as a
percentage (a part in 100 percent) for better understanding of collect data.
Percentage analysis =
Number of Respondents
X 100
Total Number of Respondents
Chi Square Test
The Chi-Square test is one of the simplest and most widely used non
parametric tests in statistical work. This test is used to find whether the two
attributes, are associated are not. The quantity
2
describes the magnitude of
the discrepancy between theory and observation.
(
2
) = Eij Eij oij / ) (
2


Where,
Oij = observed frequency
Eij = Expected frequency
Degree of freedom = (r-1) (c-1) Where, R = Number of rows; C = Number
of columns

WEIGHTED SCORE RANKING ANALYSIS
In this method weights of the various aspects or factors are obtained
by multiplying the rank given with the frequency, it gives the weighted
score, on the basis of the weighted score the ranks will be given.

LIMITATIONS OF THE STUDY
The Survey was limited to Erode District only.
The Study covers only Maruti Alto 800 car.
The respondents were less interested in answering the questionnaire, as
they felt that it was an interruption to their regular work.
The number of respondents was limited to 200 only.
Some of the respondents are not open in giving their opinions. This is
normal in any field study.

CHAPTER SCHEME
Chapter 1 deals with the introduction and design of the study.
Chapter 2 involves with the profile of the company.
Chapter 3 describes the review of related literature.
Chapter 4 deals with the analysis and interpretation of data collected.
Chapter 5 ends with the summary of findings, suggestions and conclusion.










CHAPTER II
PROFILE OF THE COMPANY

Maruti Suzuki India Limited, commonly referred to as Maruti and
formerly known as Maruti Udyog Limited, is an automobile manufacturer in
India. It is a subsidiary of Japanese automobile and motorcycle
manufacturer Suzuki. As of November 2012, it had a market share of 37% of
the Indian passenger car market. Maruti Suzuki manufactures and sells a
complete range of cars from the entry level Alto, to the hatchback Ritz, A-
Star, Swift, Wagon R, Zen and sedans DZire, Kizashi and SX4, in the 'C'
segment Eeco, Omni, Multi Purpose vehicle Suzuki Ertiga and Sports Utility
vehicle Grand Vitara. The company's headquarters are at No 1, Nelson
Mandela Road, New Delhi. In February 2012, the company sold its ten
millionth vehicles in India.

HISTORY
Originally, 18.28% of the company was owned by the Indian
government, and 54.2% by Suzuki of Japan. The BJP-led government held
an initial public offering of 25% of the company in June 2003. As of May
2007, the government of India sold its complete share to Indian financial
institutions and no longer has any stake in Maruti Udyog.
Maruti Udyog Limited (MUL) was established in February 1981,
though the actual production commenced in 1983 with the Maruti 800, based
on the Suzuki Alto kei car which at the time was the only modern car
available in India, its only competitors - the Hindustan
Ambassador and Premier Padmini - were both around 25 years out of date at
that point. Through 2004, Maruti Suzuki has produced over 5 Million
vehicles. Maruti Suzukis are sold in India and various several other
countries, depending upon export orders. Models similar to those made by
Maruti in India, albeit not assembled or fully manufactured in India or Japan
are sold by Pak Suzuki Motors in Pakistan.

The company exports more than 50,000 cars annually and has
domestic sales of 730,000 cars annually. Its manufacturing facilities are
located at two facilities Gurgaon and Manesar in Haryana, south of Delhi.
Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units
per annum. The Manesar facilities, launched in February 2007 comprise a
vehicle assembly plant with a capacity of 550,000 units per year and a Diesel
Engine plant with an annual capacity of 100,000 engines and transmissions.
Manesar and Gurgaon facilities have a combined capability to produce over
14,50,000 units annually.


About 35% of name="marketshare" all cars sold in India are made by
Maruti. The company is currently 56.21% owned by the
Japanese multinational Suzuki Motor Corporation per cent of Maruti Suzuki.
The rest is owned by public and financial institutions. It is listed on
the Bombay Stock Exchange and National Stock Exchange of India.

During 2007 and 2008, Maruti Suzuki sold 764,842 cars, of which
53,024 were exported. In all, over six million Maruti Suzuki cars are on
Indian roads since the first car was rolled out on 14 December 1983.

The Suzuki Motor Corporation, Maruti's main stakeholder, has been a
global leader in mini and compact cars for three decades. Suzukis strategy is
to utilize light-weight, compact engines with stronger power, fuel-efficiency
and performance capabilities. Nearly 75,000 people are employed directly by
Maruti Suzuki and its partners. It has been rated first in customer satisfaction
among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
Maruti Suzuki will be introducing new 800 cc model by Diwali in 2012.The
model is supposed to be fuel efficient, and therefore more expensive. With
increasing market competition in the small car segment, a new model along
with the upcoming WagonR Stingray will be the key fresh products for
Maruti Suzuki India (MSI) to defend its market share amid the ever
increasing competition.
BEGINNINGS
Maruti's history begins in 1970, when a private limited company
named 'Maruti technical services private limited' (MTSPL) is launched on
November 16, 1970. The stated purpose of this company was to provide
technical know-how for the design, manufacture and assembly of "a wholly
indigenous motor car". In June 1971, a company called 'Maruti limited' was
incorporated under the Companies Act and Sanjay Gandhi became its first
managing director. After a series of scandals, "Maruti Limited" goes into
liquidation in 1977. This is followed by a commission headed by Justice A.
C. Gupta, which submits its report in 1978. On 23 June 1980 Sanjay Gandhi
dies when a private test plane he was flying crashes. A year after his death,
and at the behest of Indira Gandhi, the Indian Central government salvages
Maruti Limited and starts looking for an active collaborator for a new
company: Maruti Udyog Ltd being incorporated in the same year.

SUZUKI ENTERS
In 1982, a license and Joint Venture Agreement (JVA) is signed
between Maruti Udyog Ltd. and Suzuki of Japan. At first, Maruti Suzuki was
mainly an importer of cars. In India's closed market, Maruti received the
right to import 40,000 fully built-up Suzukis in the first two years, and even
after that the early goal was to use only 33% indigenous parts. This upset the
local manufacturers considerably. There were also some concerns that the
Indian market was too small to absorb the comparatively large production
planned by Maruti Suzuki, with the government even considering adjusting
the petrol tax and lowering the excise duty in order to boost sales. Finally, in
1983, the Maruti 800 is released. This 796 cc hatchback is based on the SS80
Suzuki Alto and is Indias first affordable car. Initial product plan is 40%
saloons, and 60% Maruti Van. Local production commences in December
1983.
[11]
In 1984 the Maruti Van, with the same three-cylinder engine as the
800, is released. Installed capacity of the plant in Gurgaon, reaches 40,000
units.

In 1985 the Suzuki SJ410-based Gypsy, a 970 cc 4WD off-road
vehicle, is launched. In 1986 the original 800 is replaced by an all-new
model of the 796 cc hatchback Suzuki Alto/Fronte. This is also when the
100,000th vehicle is produced by the company. In 1987 follows the
company's first export to the West, when a lot of 500 cars were sent to
Hungary. Maruti products had been exported to certain neighboring
countries already. By 1988, the capacity of the Gurgaon plant is increased to
100,000 units per annum.

MARKET LIBERALIZATION
In 1989 the Maruti 1000 is presented after having been shown earlier.
This 970 cc, three-box is Indias first contemporary sedan. By 1991 65
percent of the components, for all vehicles produced, are indigenized.
Meanwhile, the liberalisation of the Indian economy opens new
opportunities but also brings more competition to the segments in which
Maruti operates. In 1992 Suzuki increases its stake in Maruti to 50 percent,
making the company a 50-50 JV with the Government of India the other
stake holder.

A flow of new models begin in the early nineties. In 1993 the Zen, a
modern 993 cc, hatchback which is later exported globally as the Suzuki
Alto. In 1994 the 1298 cc Esteem appears, a more luxurious redesigned
Maruti 1000. This and other Marutis begin appearing in a plethora of
different equipment levels, to better suit India's increasingly discerning
consumers. A Zen Automatic arrives in 1996, as does the Gypsy King, a 1.3
liter version of the compact off-roader, and a minibus version of the Omni
(the Omni E).

In 1994 Maruti Suzuki produces its 1 millionth vehicle since the
commencement of production, being the first company in India to do so.
This is still not enough in a booming market and the next year Maruti's
second plant is opened, with annual capacity reaching 200,000 units. Maruti
also launches a 24-hour emergency on-road vehicle service, the first of its
kind in the country. In 1996 the United Front government is formed,
with Murasoli Maran new Industries Minister. On 27 August the following
year the government nominates Mr. S.S.L.N. Bhaskarudu as the Managing
Director, as the then current Managing director R.C. Bhargava, was
completing his tenure. This creates a conflict with Suzuki, discussed closer
in the Joint venture related issues section.

In 1998 the new Maruti 800 is released, the first change in design
since 1986. This is simply a facelift of the existing model, to ensure steady
sales. Also, the two millionth vehicles is produced. Other news includes
the Zen D, a 1527 cc diesel hatchback and Maruti's first diesel vehicle.
The Omni van and microbus is also redesigned. The next year the Omni bus
arrives in a high roof version, the Omni XL. The 1.6 litre Maruti
Baleno three-box saloon, advertised as the 'Maruti Suzuki Baleno', also
appears. This is Maruti's biggest car yet. Finally, in what is a very busy year,
the Wagon R is launched.

In 2000 Maruti becomes the first car company in India to launch
a Call Center for internal and customer services. The new Alto model is also
released, somewhat larger and more modern than the 800. The estate Baleno
Altura is also shown, while IDTR (Institute of Driving Training and
Research) is launched jointly with the Delhi government to promote safe
driving habits. In 2001 Maruti True Value, selling and buying used Maruti
Suzukis, is launched in Bangalore and Delhi, later in Mumbai and elsewhere.
In October of the same year the Maruti Versa sees the day, a bigger engined
and more luxurious microbus than the Omni. It never catches on in the
market and is discontinued by late 2009, only to be replaced by a cheaper,
stripped-down version called Eeco. Customer information centers are also
launched in Hyderabad, Bangalore and Chennai. In 2002 the Esteem Diesel
appears, as does Maruti Insurance. Two new subsidiaries are also started:
Maruti Insurance Distributor Services and Maruti Insurance Brokers
Limited. Suzuki Motor Corporation increases its stake in Maruti to 54.2
percent.

In 2003 the new Suzuki Grand Vitara XL-7 appears, while the Zen
and the Wagon R are upgraded and redesigned. The four millionth Maruti
vehicles are built and they enter into a partnership with the State Bank of
India. Maruti Udyog Ltd is listed on BSE and NSE after a public issue,
which is oversubscribed tenfold. In 2004 the Alto becomes India's new
bestselling car, overtaking the Maruti 800 which had been number one for
nearly two decades. The five-seater Versa 5-seater, a new variant, is created
while the Esteem undergoes cosmetic changes and is re-launched with a
price cut. Maruti Udyog closed the financial year 2003-04 with an annual
sale of 472,122 units, the highest ever since the company began operations
20 years earlier, and the fiftieth lakh (5 millionths) car rolls out in April,
2005, with overall sales growing by 15.8%. The 1.3 L Suzuki Swift five-
door hatchbacks also appear. 2004-05 marked another record year (487,402
domestic sales) and exports reached 48,899 cars to about fifty different
countries. The United Kingdom took the lion's share, with 10,623 deliveries.

In 2006 Suzuki and Maruti set up another joint venture, "Maruti
Suzuki Automobiles India", to build two new manufacturing plants, one for
vehicles and one for engines. Cleaner cars were also introduced, with several
new models meeting the new "Bharat Stage III" standards. In February 2012,
Maruti Suzuki sold its ten millionth vehicles in India.

JOINT VENTURE RELATED ISSUES
Relationship between the Government of India, under the United Front
(India) coalition and Suzuki Motor Corporation over the joint venture was a
point of heated debate in the Indian media until Suzuki Motor Corporation
gained the controlling stake. This highly profitable joint venture that had a
near monopolistic trade in the Indian automobile market and the nature of
the partnership built up till then was the underlying reason for most issues.
The success of the joint venture led Suzuki to increase its equity from 26%
to 40% in 1987 and further to 50% in 1992. In 1982 both the venture
partners had entered into an agreement to nominate their candidate for the
post of Managing Director and every Managing Director will have tenure of
five years.

R.C. Bhargava was the initial managing director of the company since
the inception of the joint venture. Till today he is regarded as instrumental
for the success of Maruti Suzuki. Joining in 1982 he held several key
positions in the company before heading the company as Managing Director.
Currently he is on the Board of Directors. After completing his five-year
tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The
Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director
on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after
spending 21 years in the Public sector undertaking Bharat Heavy Electricals
Limited as General Manager. In 1987 he was promoted as Chief General
Manager. In 1988 he was named Director, Productions and Projects. The
next year (1989) he was named Director of Materials and in 1993 he became
Joint Managing Director.

Suzuki did not attend the Annual General Meeting of the Board with
the reason of it being called on a short notice. Later Suzuki Motor
Corporation went on record to state that Bhaskarudu was "incompetent" and
wanted someone else. However, the Ministry of Industries, Government of
India refuted the charges. Media stated from the Maruti Suzuki sources that
Bhaskarudu was interested to indigenise most of components for the models
including gear boxes especially for Maruti 800. Suzuki also felt that
Bhaskarudu was a proxy for the Government and would not let it increase its
stake in the venture. If Maruti Suzuki would have been able to indigenise
gear boxes then Maruti Suzuki would have been able to manufacture all the
models without the technical assistance from Suzuki. Till today the issue of
localization of gear boxes is highlighted in the press.

INDUSTRIAL RELATIONS
Since its founding in 1983, Maruti Udyog Limited experienced
problems with its labour force. The Indian labour it hired readily accepted
Japanese work culture and the modern manufacturing process. In 1997, there
was a change in ownership, and Maruti became predominantly government
controlled. Shortly thereafter, conflict between the United Front
Government and Suzuki started. Labour unrest started under management of
Indian central government. In 2000, a major industrial relations issue began
and employees of Maruti went on an indefinite strike, demanding among
other things, major revisions to their wages, incentives and pensions.

Employees used slowdown in October 2000, to press a revision to
their incentive-linked pay. In parallel, after elections and a new central
government led by NDA alliance, India pursued a disinvestments policy.
Along with many other government owned companies, the new
administration proposed to sell part of its stake in Maruti Suzuki in a public
offering. The worker's union opposed this sell-off plan on the grounds that
the company will lose a major business advantage of being subsidized by the
Government, and the union has better protection while the company remains
in control of the government.

The standoff between the union and the management continued
through 2001. The management refused union demands citing increased
competition and lower margins. The central government prevailed and
privatized Maruti in 2002. Suzuki became the majority owner of Maruti
Udyog Limited.

CURRENT AUTOMOBILES
Suzuki Splash is sold as Maruti Suzuki Ritz in India.
800 (1983) (still distributed to some cities like Guwahati)
Competes with Tata Nano, Maruti Alto and Maruti Omni
Omni (launched 1984) Competes with Tata Nano, Tata
Venture, Maruti 800 and Maruti Eeco
Gypsy King (launched 1985) India's first indegenious
vehicle and first compact SAV, competes with Mahindra
Thar CRDe, Tata Sumo 4x4 and Force Gurkha
WagonR (launched 1999) Competes with Nissan Micra
Active, Maruti A-star and Hyundai i10
Swift (launched 2005) Created a Maruti 800 rivalling
benchmark, competes with Tata Vista, Hyundai i20, Skoda
Fabia, Volkswagen Polo and Toyota Etios Liva
SX4 (launched 2007) Soon to be replaced by the upcoming
sedan codenamed YL1, competes with Ford Fiesta, Hyundai
Verna, Honda City, Skoda Rapid, Volkswagen Vento,
Renault Scala and Nissan Sunny
Swift DZire (launched 2008) Competes with Mahindra
Verito, Toyota Etios, Ford Classic, Mahindra Verito Vibe,
Honda Amaze, Chevrolet Sail, Skoda Fabia and Tata Manza
A-star (launched 2008) Competes with Chevrolet Beat,
Nissan Micra Active, Ford Figo and Maruti Wagon-R
Stingray
Ritz (launched 2009) Competes with Maruti Swift, Tata
Vista, Hyundai Grand i10, Honda Brio, Nissan Micra,
Renault Pulse and Toyota Etios Liva
Eeco (launched 2010) Stripped down Versa with a lowered
roof, in competition with Tata Venture, Tata Winger
Platinum, and in-house Omni
Alto K10 (launched 2010), competes in the economy class
with the Tata Indica, Hindustan Motors Ambassador and
Chevrolet Spark
Maruti Ertiga (launched 2012), seven seater MPV R3
designed and developed in India, in competition with Toyota
Innova, Mahindra Xylo, Nissan Evalia, Ashok Leyland Stile
and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be
exported first to Indonesia in Completely Knock Down car.
Maruti XA Alpha based compact SUV to compete with the
Ford EcoSport, Mahindra Xylo Quanto, Nissan Terrano &
Renault Duster will be launched in the year 2014
Maruti Alto 800, launched in 2012, Competes with Tata
Nano
Maruti Stingray, launched in 2013, Competes with Maruti
A-star, Chevrolet Beat and Chevrolet Sail
Maruti Suzuki Celerio, launched in 2014,competes with
Hyundai I1o, Chevrolet Beat and Honda Brio
Imported automobiles
Grand Vitara (launched 2007)
Kizashi (launched 2011)


DISCONTINUED AUTOMOBILES
Gypsy E (19852000)
1000 (19902000)
Zen (19932006) Replaced by the Zen Estilo
Esteem (19942008) Replaced by the Swift DZire
Baleno (19992007) Replaced by the SX4 sedan
Baleno Altura (19992003)
Versa (20012010) Replaced by the Eeco
Grand Vitara XL7 (20032007) Replaced by the compact
Escudo/Vitara
800 (1983-2012) Replaced by the Alto 800
Alto (2000-2012) Replaced by the Alto 800
Zen Estilo (20062013)
A-star (2008-2014)

MANUFACTURING FACILITIES
Maruti Suzuki has two manufacturing facilities in India. Both
manufacturing facilities have a combined production capacity of 14,50,000
vehicles annually. During a recent meeting of the Gujarat chief minister with
Suzuki Motor Corp chairman & CEO Osamu Suzuki, the Chairman had said
that the work on car manufacturing plant at Mandal near Ahmadabad would
be started soon. Maruti Suzuki to set up second plant in Gujarat; acquires
600 acres.

GURGAON MANUFACTURING FACILITY
The Gurgaon manufacturing facility has three fully integrated
manufacturing plants and is spread over 300 acres (1.2 km
2
).
[55]
All three
plants have an installed capacity of 350,000 vehicles annually but
productivity improvements have enabled it to manufacture 900,000 vehicles
annually. The Gurgaon facilities also manufacture 240,000 K-Series engines
annually. The entire facility is equipped with more than 150 robots, out of
which 71 have been developed in-house. The Gurgaon Facilities
manufactures the 800, Alto, WagonR, Estilo,Omni, Gypsy, and Eeco.

MANESAR MANUFACTURING FACILITY
The Manesar manufacturing plant was inaugurated in February 2007
and is spread over 600 acres (2.4 km
2
). Initially it had a production capacity
of 100,000 vehicles annually but this was increased to 300,000 vehicles
annually in October 2008. The production capacity was further increased by
250,000 vehicles taking total production capacity to 550,000 vehicles
annually. The Manesar Plant produces the A-star, Swift, Swift DZire, SX4,
Ritz and Celerio.

On 25 June 2012, Haryana State Industries and Infrastructure
Development Corporation demanded Maruti Suzuki to pay an additional Rs
235 crore for enhanced land acquisition for its Haryana plant expansion. The
agency reminded Maruti that failure to pay the amount would lead to further
proceedings and vacating the enhanced land acquisition.

SALES AND SERVICE NETWORK
As of 31 March 2014 Maruti Suzuki has 933 dealerships across 666
towns and cities in all states and union territories of India. It has 3,013
service stations in 1,436 towns and cities throughout India. It has 30 Express
Service Stations on 30 National Highways across 1,436 cities in India.

Service is a major revenue generator of the company. Most of the
service stations are managed on franchise basis, where Maruti Suzuki trains
the local staff. Other automobile companies have not been able to match this
benchmark set by Maruti Suzuki. The Express Service stations help many
stranded vehicles on the highways by sending across their repair man to the
vehicle.

MARUTI INSURANCE
Launched in 2002 Maruti Suzuki 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
This service started as a benefit or value addition to customers and was able
to ramp up easily. By December 2005 they were able to sell more than two
million insurance policies since its inception.

MARUTI FINANCE
To promote its bottom line growth, Maruti Suzuki launched Maruti
Finance in January 2002. Prior to the start of this service Maruti Suzuki 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 Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI
Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start
this venture including its strategic partners in car finance. Again the
company entered into a strategic partnership with SBI in March 2003 Since
March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBI-Maruti Finance is currently available in 166 cities across India.

Citicorp Maruti Finance Limited is a joint venture between Citicorp
Finance India and Maruti Udyog Limited its primary business stated by the
company is "hire-purchase financing of Maruti Suzuki vehicles". Citi
Finance India Limited is a wholly owned subsidiary of Citibank Overseas
Investment Corporation, Delaware, which in turn is a 100% wholly owned
subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the
stake and Maruti Suzuki holds the remaining 26%.GE Capital, HDFC and
Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti
claims that its finance program offers most competitive interest rates to its
customers, which are lower by 0.25% to 0.5% from the market rates.

MARUTI TRUEVALUE
Maruti True service offered by Maruti Suzuki to its customers. It is a
market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange
used Maruti Suzuki vehicles with the help of this service in India. As of 31
March 2010 there are 341 outlets.

N2N FLEET MANAGEMENT
N2N is the short form of End to End Fleet Management and provides
lease and fleet management solution to corporate. Clients who have signed
up of this service include Gas Authority of India Ltd, DuPont, Reckitt
Benckiser, Sona Steering, Doordarshan, Singer India, National Stock
Exchange and Transworld. This fleet management service includes 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 Suzuki
started to offer components and accessories that were compatible. This
caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki
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.

AWARDS AND RECOGNITION
The Brand Trust Report published by Trust Research Advisory has
ranked Maruti Suzuki in the seventh position in 2011 and the sixth position
in 2012 among the brands researched in India. Bluebytes News, a news
research agency, rated Maruti Suzuki as India's Most Reputed Car Company
in their Reputation Benchmark Study conducted for the Auto (Cars) Sector
which launched in April 2012.

Fully Automatic Variant
Maruti Suzuki Celerio - a fully automatic variant is expected to be
launched on 6 February 2014 in Auto Expo at Greater Noida. Its expected
price tag will be between 3.0 to 5.5 lacs in India.
CHAPTER III
REVIEW OF LITEREATURE

A review is the confirmation of a study with the detailed examination
on the subject again and again by going through the reviews of the past
research analysis or study. Various study experts and researchers have made
a number of studies on these aspects of automotive industries and
profitability positions.

Mukhopadhyay (2000)
1
states that the primary objective of every
form of current asset is to enable the business to carry on the commercial
operation smoothly and to increase the scale of operation and thus it can earn
better profit through better business management. It needs no mention that
current asset must be utilized as productive as plant and machinery and other
equipment.

Baumol (1967)
2
in Business Behaviour, value and growth has
emphasized that there is a positive relationship between firm size and profits.
He states that Increased money capital will not only increased the total

1
Mukhopadhyay.D (2000), Working Capital Management A Perspective Management Accountant,
p.no. 181

2
Baumol (1967), The Management Accountant. Vol.38, Vo.II, Nov.2003, p.no.817.

profit of the firm but because inputs the firm in a echelon of imperfectly
computing capital groups, it may also increase its earning per dollar of
investment. Besides large firms have an advantage over smaller firms as
they can enter in variety of product lines which gives them the benefits of
both the scale and the size. Generally three firms are in a position to take full
advantages of technical and pecuniary economics in manufacturing,
marketing, supervision and in raising capital. Also bigger firms being more
efficient in research & development (R&D) which together with their ability
to spend large sums on advertising, substantially raise the cost of entry to a
new corner. This creates powerful monopoly position, giving large firms a
degree of independence in pricing and output decisions.

Gale (1972)
3
in market share and rate of return states the effect of
market share on the rate of return of selected firms operating in different
market environment using date of the job firms. He found that high market
share is associated with high rates of return and that the effect of share on
profitability depends on other firm and industry characteristics such as
degree of concentrations & rate of growth in t he industries in which the firm
competes and on the absolute size of the firm. He also found that relation
b/w rate of return on equity to capital ratio/a measure of risk in an inter-
industry of sample of firms to be positive & significant.

3
Gale (1972), cost of Management of new millennium mgt accountant, Nov 2003, vol.38, p.no. 818

Vijayasaradhi ahd Rajeswara Rao (1978)
4
carried out a research
study on the Indian public enterprises and indicated that an increasing trend
in the investment of current assets, unlike in fixed asset, resulted in higher
carrying costs, which in turn, negatively affected the profitability position of
the sector.

Ramkumar Kakani (1999)
5
in his study who has analyzed debt
structure to large Indian private manufacturing firm during post and pre-
liberalization, profitability, capital intensity and non debt tax shield are
important determinants of capital structure.

Stekler (1964)
6
in his research study entitled The variability of
profitability with size of firm 1947 -1958 tested several hypotheses about
relative profitability and growth possibility of firms of various sizes. Each
hypothesis is designed to perform a specific task. Interest is added to profit
to avoid blast that could result due to variations in the ratio of equity to debt
financing. The study concludes that variation over a period of time of

4
Vijayasaradhi and Rajeswaqra Rao (1978), The IC faian Journal of mgt research, vol VII, no.12,
2008.p.42)

5
Ramkumar Kakani, The Determinates of capital structure An econometric Analysis, Vol.XIII, no.1
March 1992.

6
Stekler (1964), Cost Management of new millennium, management accountant, Nov.2003, vol.38, no.11
p.no. 817

average profitability for small and large industry was less than that of
medium size industry.

Singh, Ajit & Whittington (1968)
7
in growth, profitability and
valuation conducted on empirical study of the relationship between the
growth, size of profitability of the firm, growth being the main dependent
variable for 450 U.K public quoted companies, existing over the period
1948-60 at least for 6 years.

Vijayakumar (2002)
8
in his study entitled Determinant of corporate
size, growth & profitability The Indian experience focused on the
relationship b/w size and profitability, growth and size of firms etc. For this
study Indian public sector industries were selected. The study cores the
period form 1980-81 to 1995-96. The techniques of average correlation,
linear & multiple regression analysis have been used in the study. The
findings conclude that growth is found to be significantly associated with
profitability. More over profitability explains considerable part of the growth
of the firms inn the Indian public sector company.


7
Singh, Ajit & Whittington (1968) Cost Management of new millennium, management
accountant,Nov.2003, Vol.38,no11, p.no.818

8
Vijayakumar (2002), Lost mgt of new Millennium mgt accountant, Nov.2003, vol.38, p.no.819

Agarwal (1978)
9
in his study entitled Size profitability and growth of
some manufacturing Industries highlighted relationship between
profitability measured as profit/net assets and size expressed as total sales for
7 Indian manufacturing Industries, viz aluminium for the period 1962-1972.
The relationship observed in aluminium industry, while in case of steel
industry no such relationship was observed.

Bain (1956)
10
in Barriers to new competition examined whether
profitability is determined by elements of industry structure which affects
entry into the industry. He studied this with respect of 3 types of barriers in
20u.s manufacturing industry for the period 1936- 1940 and 1947- 1951). He
analyzed industries accounting to qualitative classification- High,
SUNSTANTIAL and MODERATE TO LOW. Barriers to entry were
found to be the main determinants of returns. High barriers to entry lead to
high profit rates, through the difference between SUBSTANTIAL and
MODERATE TO LOW was not so clear. Seller consternation was not a
good predictor of profitability. Bain identified product diversification and
advertising as the main causes of high barrier.


9
AgarwalV.K (1978), Size profitability and growth of some manufacturing industries unpublished FPM
thesis 11M, Ahmadabad.

10
Bain J.S (1956), Barrier to new competition Cambridge Mass; Harvard University Press.

Hartly and Watt (1981)
11
In their articles entitled profit regulation
and the U.K Aerospace Industry, tried to explain the influence of industry
and government procurement policy on profitability in U.K aerospace
industry. Which is government regulated industry. The aerospace industry
consists of air firms. Engine electronics and equipment, development and
production of military and Civil aircraft, helicopters and missiles. Under
private ownership government affected profitability directly through the
profit rule for pricing. State contracts & individually through the mono
positive influence on market demand. As monopolists U.K government used
procurement policy to determine projects and hence technical progress as
well as the size and structure of the industry, entry and exist, together with
prices and profits, technical efficiency and total export performance.
Average profit rates in aerospace were lower than in vest of British industry-
variation in profitability also existed between specialist & diversified
companies.

A study conducted by Garg, P.K and Garg,A. (1993)
12
stated that
profitability performance of enterprises in Haryana is not satisfactory. They
suggested that the management should introduce a dynamic marketing

11
Hartely Keith and Peter A.Watt (June 1981), Profits Regulation and the U.K Aerospace Industry.
Journal of Industrial Economics, vol.29, pp.413-449

12
Garg, P.K and Garg A, Appraising performance through profitability Analysis. A study of Enterprises
inHaryana inDr.Mohinder Singh. Some aspects of public enterprises in India (ed) uppal Publishing House,
New Delhi, 1993.

management and cost conscious pricing policy to attract the clients. Further,
they suggested that there is a need for effective and efficient profit planning
which may ensure better utilization if resources and enhance earning.

Jain (1981)
13
in Price- Cost margin in Indian manufacturing
industries. An econometric analysis analyzed the price cost margin over
time in the 2 digits Indian Industries, price-cost margin was used as a
measure at profitability. Cost factors emerged as significant determinants at
profitability while the structural variable like concentration ratio, capacity
utilization, mixed pattern, results varied among industries.

Hundal
14
conducted a study in Amritsar district of Punjab and found
out that, Products selection decisions in rural families were mostly made by
spouses together but they were highly influenced by children.

Janice Holom Lloyd
15
examines in his analysis that, today the
quality of many products is difficult to determine before purchase and most
products are manufactured many miles away from the dealers who sell them

13
Asha Jain (1981), Price- Cost margin in Indian manufacturing Industries: An Econometric Analysis
Ph.D thesis, Kanpur.

14
Hundal, a study of rural buying behavior the Amritsar District of Punjab Academic of marketing science
Review 2006.

15
Janice Holom Llyod, Family Resource Management Specialist for the north Carlonia co- operative
extensions service, Electronic Publication, F.C.S 244(July 1997)

and consumers who use them. The great variety of goods and services
confuse and frustrate consumers trying to decide what to buy, how to use and
care for the thinks the buy. He also found that 65 percent of the consumers
rely on manufacturer reputation in making appliance purchase decisions.

Matthew Towers
16
conducted a research and says that in this new
market environment where consumers dictate their requirements, appliances
maker who can position their products as energy efficient or environment
friendly can gain a significant competitive advantage.

Josep W. Newman, Richard A. Werbel
17
have found out that for
durables, purchase of the same brand twice in succession typically has been
used as evidence of loyalty, although longer purchase sequence have also
been examined.

Nicole Van Nes, Jacqueline Cramer
18
in their research article have
mentioned that despite the variety of replacement motivation people
basically want a well functioning and up to date product that meets their

16
Matthew Towers Environmental concerns drive inverter control, appliances Magazine.com
September 2006.

17
Josep W. Newman, Richard A. Werbel Multivariate Analysis of brand loyalty for major house hold
appliance. Journal of Marketing Research vol.10 No.4.(November 1973) PP 404- 409.

18
Nicole Van Nes, Jacqueline Cramer, Influencing products life time through product design. April 2005,
University of Urecht, The Netherlands.

altering needs. Thus requires the development of dynamic and flexible
products.

Rajdeep Grewel, Raj Mehta & Frank and Kardes
19
says that, It
becomes critical for the marketers to identify the right consumer at right time
to target and market their products effectively.

Mr. Dheeraj Hinduja
20
disclosed that Ashok Leyland global
ambitions go beyond vehicles manufacturing and marketing. The company
has the expertise and talent pool to be a significant global presence in the
component business and in engineering design services which, together
should add up to significant revenue for the company in the coming years.

Dasari
21
pointed out the specialized vehicles tailor made for specific
applications was a feature of a manufacturing industry. This is perfectly in
line Ashok Leylands product philosophy of offering products that best fit
each application segment to maximize customer Profitability. We go beyond
the product to meet this objective.


19
RajdeepGrewel, Raj Mehta & Frank and Kardes, The Timing of repeat purchase of consumer durable
goods. The role of functional basis of consumer attitude.

20
Dheeraj Hinduja, Vice Chairman - Ashok Leyland Ltd.

21
Mr. Desari, Chief Operating Officer Ashok Leyland Ltd

Mr. J.N.Amrolia
22
said the age of the plants made the road all the
more daunting, but the dedication and perseverance of the EMS team
coupled with the support from all our employees made it possible.

Mr. Hinduja
23
also referred to the aggressive expansion plans of
Encore foundries Ltd, which include a green field project of 50000 tonnes
annual capacity, built to global standards. This will take the companys total
capacity to 146000 tonnes per annum. The group is also pursuing acquisition
opportunities in the business globally.

Mr. R.J.Shahaney
24
During the year under review, after 2 years of
9% plus growth GDP grew at a lower yet healthy rate of 8.8%. However,
higher cost and reduced availability of funds combined with spiralling input
cost impacted demand for the truck segment which fall 6%. Thanks to a
creditable performance in the bus segment where the company regained its
premier position and aided by improved revenues from international
operations, engines and spares, the company turned in a satisfactory
performance details of which will be shared by the managing director in a
presentation to be made shortly.

22
Mr.J.N.Amrolia, executive director, HR, Ashok Leyland Ltd.

23
Hinduja, published in corporate office - Ashok Leyland Ltd

24
Mr.R.J. Shahaney published in press release - Ashok Leyland Ltd.

Mr. K. Sridharan
25
The first major product introduction, the comet
truck is reflective of the role this company has played over the years. Built
keeping in mind the operating conditions obtained at that time, the product
became a major success and robustness and reliability became integral brand
values of the companys product.

Sakthivel. N
26
predicts that Modern financial management posits that
a firm must seek to maximize the shareholder value. Market value of the
firms share is a measurement of the shareholder wealth. It is the shareholders
appraisal of the firms efficiency in employing their capital. The capital
contributed by shareholders is reflected by the book value of firms share.

Dr. C. K. Sonara
27
express that; Insurance industry occupies a very
important place among financial service operative in the world. Owing to
growing complexity of life, trade and commerce, individuals as well as
business firms are turning to insurance to manage various risks.


25
Mr. K. Sridharan, Published in business India - Ashok Leyland Ltd

26
Sakthivel. N, The management Accountant; May 2008, P. No.353; Lecturer in commerce, Gobi arts
and science college, Gobichettipalayam, Tamilnadu.

27
Dr. C. K. Sonara, Accounting for financial services, Reader in Accounting and Finance, P.G.
Department of Business Studies, Sardar Patel University, Vallabh Vidyanagar, Gujarat P. No 356.

Asha Jain (1981)
28
in price cost margin in Indian manufacturing
industries - An economic analysis; analyzed the price cost margin over time
in 2 digit Indian industries. Price-cost margin was used as a measure of
profitability cost factors emerged as significant determinants of profitability
while the structural variables like Ratio, Capacity, Utilization, Growth and
Capital intensity showed mixed pattern.

A. Vijayakumar (1998)
29
examined the determinants of corporate
size, Growth and Profitability of Indian corporate sector. The objectives of
the firm were profit maximization and the firm which expanded its O/P
earned the highest profit and was therefore considered the optimum firm.
Each firm now had several objectives and each decided its own policies.

Janaki Ramudu
30
presents in her paper and analyze Statically the
key inventory ratios of Indian commercial vehicles industry and observes
significant company to company differences in inventory ratios reflecting
differences in inventory management policies


28
Asha Jain (1981) Price cost margin in Indian manufacturing Industries : An economic Analysis; Ph.D
thesis, IIT, Kanpur.

29
Dr. A. Vijayakumar (1998) Determinant of Profitability of Indian corporate sector, New Delhi.

30
Janaki Ramudu, Inventory management of Indian commercial vehicles industry, Management
Accountant, Oct 2006.

Mr. B. Saidaiah
31
says that, A review of the Indian economy in the
recent period throws up several interesting trends. Economic growth has
averaged 8.6% per annum over the last four years. We need to sustain the
present rate of growth, if not push it to higher levels.

Agarwal .R. N. (1987)
32
in corporate investment and finance behavior
in Automobile Industry notices the behavior and determinants of profit in
particular to examine the impact of price control on the profitability of firms
in the Automobile industry. The study was based on the data for the period
1959 1960 to 1978 1979. He founds that profits in the car sector depends
on sales, capacity Utilization, Product price and factor prices. Market share
and the lagged investment appeared to be significant at the firm level but not
at sector level.

Ms. Swati Shastri
33
presents in his paper that This paper attempts to
investigate the relationship between human capital, as provide by years of
schooling of the labour force and economic growth using time series data of
the Indian economy during 1965 2005. The result indicates that initial level

31
Mr. B. Saidaiah, Southern economist, Vol 13, P.No. 52, 1999.

32
Agarwal .R. N. (1987), Corporate investment and finance behavior in automobile industry Common
wealth publishing , Delhi.

33
Ms. Swati Shastri, Lecturer, Department of Economics, Banasthali University, Rajasthan, Southern
Economist, July 15 2008.
of schooling gather than change in schooling has a significant positive effect
on the rate of growth.

Mr. Reddy
34
said that, We are now on a sustained growth Phase. The
potential US $ 50 billion generic business from advanced markets will be a
major growth for the domestic industry in the near future

Mr. Ashwani Kumar
35
expressed that Performance appraisal of an
enterprise is one of the major tasks because it does not only portray the
financial soundness of the enterprise but also helps in diagnosing the cause
of Low profitability. Du pont model approach brings together the profit
margin with the assets turnover and shows that the profitability depends not
only on the profit margin but also on how efficiently; the company uses its
assets to generate sales.







34
Mr. Reddy, Indian engineering industry is likely to continue its growth, Business India, P.No.5.

35
Mr.Ashwani Kumar, Research scholar, Faculty in Commerce and Business administration, S.D. college,
Muzaffernagar, Southern Economist, P. No. 1, July 2008.
CHAPTER IV
ANALYSIS AND INTERPRETATION OF DATA

Analysis means the computation of certain idea or measures along
with searching for patterns of relationship that exist among the data groups.
Analysis, particularly in case of survey of experimental data, involves
estimating the values of unknown parameters of the population and testing of
hypothesis for drawing inferences. Analysis may, therefore be categorized as
descriptive analysis and inferential analysis. Inferential analysis is often
known as statistical analysis.

Descriptive analysis is largely the study of distributions of one
variable. The study provides with profile of companies, work groups,
persons and other subjects on any of a multiple of characteristics such as
size, composition, efficiency preferences.

Interpretation can be conceived of as a part of analysis. The task of
interpretation has major aspect viz., the effort to establish continuity in
establishment of some explanatory concepts. It connects the findings with
the available material in a particular area of research.


TABLE 4.1
GENDER OF THE RESPONDENTS

Gender No. of Respondents Percentage
Male 146 73
Female 54 27
Total 200 100
Source: Primary Data

It is inferred from the above table that out of the total respondents,
73% of the respondents were male and remaining 27% of the respondents
were female.










TABLE 4.2
AGE GROUP OF THE RESPONDENTS

Age Group No. of Respondents Percentage
Below 20 years 30 15
21 years 30 years 50 25
31 years 40 years 80 40
Above 40 years 40 20
Total 200 100
Source: Primary Data

The above table shows that, a majority (40%) of the respondents were
between 31 years 40 years of age group, 25% of the respondents were
between 21 years 30 years of age group, 20% of the respondents were
above 40 years of age and remaining 15% of the respondents were below 20
years of age.






TABLE 4.3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational Qualification No. of Respondents Percentage
School Level 40 20
Graduate 84 42
Post Graduate 46 23
Others 30 15
Total 200 100
Source: Primary Data

Table 4.3 infers that 42% of the respondents were graduates, 23% of
the respondents were post graduates, 20% of the respondents were upto
school level and remaining 15% of the respondents were having some other
qualifications like diploma, etc., as their educational qualification.







TABLE 4.4
MARITAL STATUS OF THE RESPONDENTS

Marital Status No. of Respondents Percentage
Single 70 35
Married 130 65
Total 200 100
Source: Primary Data

It is inferred from the above table that 65% of the respondents were
married and remaining 35% of the respondents were single.











TABLE 4.5
OCCUPATIONAL STATUS OF THE RESPONDENTS

Occupational Status No. of Respondents Percentage
Student 18 9
Employed 64 32
Business 56 28
Agriculture 36 18
Others 26 13
Total 200 100
Source: Primary Data

The above table shows that out of 200 respondents, 32% of the
respondents were employees, 28% of the respondents were businessmen,
18% of the respondents were agriculturist, 13% of the respondents were
engaged in some other profession and only 9% of the respondents were
students.





TABLE 4.6
NO. OF MEMBERS IN FAMILY OF THE RESPONDENTS

No. of Members in Family No. of Respondents Percentage
Below 3 members 36 18
3-6 members 98 49
6-8 members 42 21
Above 8 members 24 12
Total 200 100
Source: Primary Data

It is noted from the above table that 49% of the respondents were
having 3-6 members in their family, 21% of the respondents were having 6-8
members in their family, 18% of the respondents were having below 3
members in their family and only 12% of the respondents were having above
8 members in their family.






TABLE 4.7
MONTHLY INCOME OF THE RESPONDENTS

Monthly Income No. of Respondents Percentage
Up to Rs.10,000 16 8
Rs.10,001 - Rs.15,000 38 19
Rs.15,001- Rs.20,000 90 45
Above Rs.20,000 56 28
Total 200 100
Source: Primary Data

The above table infers that out of the total respondents, 45% of the
respondents were earning between Rs.15,001- Rs.20,000 per month, 28% of
the respondents were earning above Rs.20,000 per month, 19% of the
respondents were earning between Rs.10,001 - Rs.15,000 per month and
only 8% of the respondents were earning upto Rs.10,000 per month.






TABLE 4.8
SOURCE OF KNOWLEDGE OF THE RESPONDENTS

Source of Knowledge No. of Respondents Percentage
Family members 106 53
Friends & Relatives 48 24
Advertisement 32 16
Others 14 7
Total 200 100
Source: Primary Data

It is inferred from the table 4.8 that 53% of the respondents came to
know about Maruti Alto 800 through their family members, 24% of the
respondents came to know about Maruti Alto 800 through their friends and
relatives, 16% of the respondents came to know about Maruti Alto 800
through advertisement and only 7% of the respondents came to know about
Maruti Alto 800 through other source such as dealers, sales executives, etc.,





TABLE 4.9
COLOUR ATTRACTED BY THE RESPONDENTS

Colour Attracted No. of Respondents Percentage
Frost Blue 28 14
Blazing Red 20 10
Torque Blue 32 16
Granite Grey 40 20
Silky Silver 44 22
Superior White 36 18
Total 200 100
Source: Primary Data

The table 4.9 shows that 22% of the respondents were attracted by
silky silver colour of the vehicle, 20% of the respondents were attracted by
granite grey colour of the vehicle, 18% of the respondents were attracted by
superior white colour of the vehicle, 16% of the respondents were attracted
by torque blue colour of the vehicle, 14% of the respondents were attracted
by frost blue colour of the vehicle and only 10% of the respondents were
attracted by blazing red colour of the vehicle.



TABLE 4.10
FACTORS INFLUENCED TO SELECT THE VEHICLE BY THE
RESPONDENTS

Factors Influenced to Select No. of Respondents Percentage
Attractive Appearance 30 15
Pick up 34 17
Comfort-Driving / Seating 28 14
Price 48 24
Fuel Economy 40 20
Free Maintenance 20 10
Total 200 100
Source: Primary Data

The above table infers that out of 200 respondents, 24% of the
respondents were influenced because of its price, 20% of the respondents
were influenced because of its fuel economy, 17% of the respondents were
influenced because of its pick up, 15% of the respondents were influenced
because of its attractive appearance, 14% of the respondents were influenced
because of its comfort-driving / seating and remaining 10% of the
respondents were influenced because they felt that it is maintenance free.


TABLE 4.11
PERIOD OF USING THE VEHICLE BY THE RESPONDENTS

Period of Using No. of Respondents Percentage
< 1 year 46 23
1 - 2 years 126 63
Above 2 years 28 14
Total 200 100
Source: Primary Data

The above table shows the period of using the vehicle by the
respondents. 63% of the respondents were using between 1-2 years, 23% of
the respondents were using less than a year and remaining 14% of the
respondents were using above 2 years.








TABLE 4.12
KILOMETRES TRAVELLED BY THE RESPONDENTS

Kilometres Travelled No. of Respondents Percentage
Less than 50 Kms 38 19
50 100 Kms 86 43
100 250 Kms 52 26
Above 250 Kms 24 12
Total 200 100
Source: Primary Data

The table 4.12 shows that out of the total respondents, 43% of the
respondents travel between 50 100 Kms per day, 26% of the respondents
travel between 100 200 Kms per day, 19% of the respondents travel less
than 50 Kms per day and remaining 12% of the respondents travel above 250
Kms per day.






TABLE 4.13
FACTORS CONSIDERED WHILE PURCHASING THE CAR BY
THE RESPONDENTS

Factors Considered No. of Respondents Percentage Rank
Price 14 7 VII
Brand name 22 11 V
Comfort 16 8 VI
Safety 12 6 VIII
Design 26 13 IV
Size 8 4 IX
Mileage 36 18 I
Performance 28 14 III
Maintenance cost 32 16 II
Others 6 3 X
Total 200 100
Source: Primary Data

From the above table it is identified that, major percentage of the
respondents were influenced by its mileage followed by maintenance cost,
performance, design, brand name, comfort, price, safety, size and others.


TABLE 4.14
MILEAGE GIVEN BY THE VEHICLE

Mileage No. of Respondents Percentage
10-15 Kms / Litre 72 36
16-20 Kms / Litre 86 43
Above 21 Kms / Litre 42 21
Total 200 100
Source: Primary Data

It is clear from the above table that 43% of the respondents were
getting mileage between 16-20 Kms / Litre, 36% of the respondents were
getting mileage between10-15 Kms / Litre and remaining 21% of the
respondents were getting mileage of above 21 Kms / Litre.








TABLE 4.14
PLACE OF SERVICING THE VEHICLE BY THE RESPONDENTS

Mileage No. of Respondents Percentage
Authorized Dealer 166 83
Mechanic Shop 34 17
Total 200 100
Source: Primary Data

The above table shows the palace of servicing the vehicle by the
respondents. 83% of the respondents leave their vehicle for servicing in
authorized service dealer point and remaining 17% of the respondents leave
their vehicle for servicing in mechanic shop.









TABLE 4.15
HANDLING MAINTENANCE BY THE RESPONDENTS

Handling Maintenance No. of Respondents Percentage
Through scheduled maintenance 178 89
When problem arise 18 9
Postpone as long as possible 4 2
Total 200 100
Source: Primary Data

It is clear from the above table that 89% of the respondents were
handling service through scheduled maintenance, 9% of the respondents
were handling service when problem arise and only 2% of the respondents
were postponing service as long as possible.








TABLE 4.16
OPINION ABOUT AFTER SALES SERVICE BY THE
RESPONDENTS

Opinion About After Sales Service No. of Respondents Percentage
Excellent 52 26
Good 86 43
Average 40 20
Below Average 22 11
Total 200 100
Source: Primary Data

It is inferred from the above table that 43% of the respondents quoted
that after sales service was good, 26% of the respondents quoted that after
sales service was excellent, 20% of the respondents quoted that after sales
service was average and remaining 11% of the respondents quoted that after
sales service was below average.





TABLE 4.17
RECOMMENDATION TO OTHERS BY THE RESPONDENTS

Recommendation to Others No. of Respondents Percentage
Certainly 112 56
Uncertain 58 29
Will not Recommend 30 15
Total 200 100
Source: Primary Data

It is clear from the table 4.17 that 56% of the respondents will
certainly recommend Maruti Alto 800 to others, 29% of the respondents
were uncertain and remaining 15% of the respondents will not recommend
Maruti Alto 800 to others.








TABLE 4.18
SWITCH OVER TO OTHER BRANDS OF CAR BY THE
RESPONDENTS

Switch Over to Other Brands No. of Respondents Percentage
Yes 70 35
No 130 65
Total 200 100
Source: Primary Data

It is noted from the above table that a majority (65%) of the
respondents will not switch over to other brands of car and remaining 35%
of the respondents will switch over to other brands.









TABLE 4.19
LEVEL OF SATISFACTION TOWARDS VARIOUS FACTORS BY THE RESPONDENTS

Factors Highly Satisfied Satisfied Neutral Dissatisfied Total
Price 54 (27%) 130 (65%) 10 (5%) 6 (3%) 200 (100%)
Mileage 42 (21%) 140 (70%) 8 (4%) 10 (5%) 200 (100%)
Maintenance 106 (53%) 64 (32%) 14 (7%) 16 (8%) 200 (100%)
Pick up 44 (22%) 128 (64%) 16 (8%) 12 (6%) 200 (100%)
Resale Value 148 (74%) 26 (13%) 18 (9%) 8 (4%) 200 (100%)
Appearance 84 (41%) 98 (49%) 14 (7%) 4 (2%) 200 (100%)
Availability of Spares 126 (63%) 56 (28%) 8 (4%) 10 (5%) 200 (100%)
Service Facilities 54 (27%) 136 (68%) 6 (3%) 4 (2%) 200 (100%)
Source: Primary Data
Price:
It is clear from the table 4.19 that, 65% of the respondents were
satisfied, 27% of the respondents were highly satisfied, 5% of the
respondents were neutral and remaining 3% of the respondents were
dissatisfied towards price.

Mileage:
It is clear from the table 4.19 that, 70% of the respondents were
satisfied, 21% of the respondents were highly satisfied, 5% of the
respondents were dissatisfied and remaining 4% of the respondents were
neutral towards mileage.

Maintenance:
It is clear from the table 4.19 that, 53% of the respondents were highly
satisfied, 32% of the respondents were satisfied, 8% of the respondents were
dissatisfied and remaining 7% of the respondents were neutral towards
maintenance.

Pick up:
It is clear from the table 4.19 that, 64% of the respondents were
satisfied, 22% of the respondents were highly satisfied, 8% of the
respondents were neutral and remaining 6% of the respondents were
dissatisfied towards pickup.

Resale Value:
It is clear from the table 4.19 that, 74% of the respondents were highly
satisfied, 13% of the respondents were satisfied, 9% of the respondents were
neutral and remaining 4% of the respondents were dissatisfied towards resale
value.

Appearance:
It is clear from the table 4.19 that, 49% of the respondents were
satisfied, 41% of the respondents were highly satisfied, 7% of the
respondents were neutral and remaining 2% of the respondents were
dissatisfied towards appearance.

Availability of Spares:
It is clear from the table 4.19 that, 63% of the respondents were highly
satisfied, 28% of the respondents were satisfied, 5% of the respondents were
dissatisfied and remaining 4% of the respondents were neutral towards
availability of spares.


Service Facilities:
It is clear from the table 4.19 that, 68% of the respondents were
satisfied, 27% of the respondents were highly satisfied, 3% of the
respondents were neutral and remaining 2% of the respondents were
dissatisfied towards service facilities.

















TABLE 4.20
OVERALL LEVEL OF SATISFACTION TOWARDS MARUTI ALTO
800 BY THE RESPONDENTS

Overall Level of Satisfaction No. of Respondents Percentage
Highly Satisfied 48 24
Satisfied 120 60
Neutral 22 11
Dissatisfied 10 5
Total 200 100
Source: Primary Data

It is inferred from the above table that, 60% of the respondents were
satisfied towards overall level, 24% of the respondents were highly satisfied
towards overall level, 11% of the respondents were neutral towards overall
level of satisfaction and remaining 5% of the respondents were dissatisfied
towards overall level of satisfaction.





TABLE 4.21
AGE GROUP AND PERIOD OF USING MARUTI ALTO 800
(TWO-WAY TABLE)

Age Group
Period of Using
Total
< 1 year 1 - 2 years Above 2 years
Below 20 years 8 16 6 30
21 years 30 years 15 28 7 50
31 years 40 years 20 50 10 80
Above 40 years 3 32 5 40
Total 46 126 28 200

Null Hypothesis (H
0
): There is no significant relationship between Age
Group and period of using Maruti Alto 800.
Alternative Hypothesis (H
1
): There is close significant relationship
between Age Group and period of using Maruti Alto 800.

CHI-SQUARE (
2
) CALCULATION
Calculated
2
value = 9.1942
Degree of freedom = 6
Table value = 12.592
INFERENCE
It is found from the above analysis that calculated chi-square value
less than the table value and null hypothesis accepted. So, we conclude that,
there is no significant relationship between Age Group and period of using
Maruti Alto 800.

















TABLE 4.22
AGE GROUP AND OVERALL LEVEL OF SATISFACTION
TOWARDS MARUTI ALTO 800 (TWO-WAY TABLE)

Age Group
Overall Level of Satisfaction
Total
HS S N DS
Below 20 years 8 17 3 2 30
21 years 30 years 10 35 3 2 50
31 years 40 years 16 55 5 4 80
Above 40 years 14 13 11 2 40
Total 48 120 22 10 200

Null Hypothesis (H
0
): There is no significant relationship between Age
Group and overall level of satisfaction towards Maruti Alto 800.
Alternative Hypothesis (H
1
): There is close significant relationship
between Age Group and overall level of satisfaction towards Maruti Alto
800.

CHI-SQUARE (
2
) CALCULATION
Calculated
2
value = 22.8948
Degree of freedom = 9
Table value = 16.919
INFERENCE
It is found from the above analysis that calculated chi-square value
greater than the table value and null hypothesis rejected. So, we conclude
that, there is a significant relationship between Age Group and overall level
of satisfaction towards Maruti Alto 800.

















CHAPTER V
SUMMARY OF FINDINGS, SUGGESTION AND CONCLUSION

FINDINGS
73% of the respondents were male.
A majority (40%) of the respondents were between 31 years 40
years of age group.
42% of the respondents were graduates.
65% of the respondents were married.
32% of the respondents were employees.
49% of the respondents were having 3-6 members in their family.
45% of the respondents were earning between Rs.15,001- Rs.20,000
per month.
53% of the respondents came to know about Maruti Alto 800 through
their family members.
22% of the respondents were attracted by silky silver colour of the
vehicle.
24% of the respondents were influenced because of its price.
63% of the respondents were using between 1-2 years.
43% of the respondents travel between 50 100 Kms per day.
Major percentages of the respondents were influenced by its mileage.
43% of the respondents were getting mileage between 16-20 Kms /
Litre.
83% of the respondents leave their vehicle for servicing in authorized
service dealer point.
89% of the respondents were handling service through scheduled
maintenance.
43% of the respondents quoted that after sales service was good.
56% of the respondents will certainly recommend Maruti Alto 800 to
others.
A majority (65%) of the respondents will not switch over to other
brands of car.
65% of the respondents were satisfied towards price.
70% of the respondents were satisfied towards mileage.
53% of the respondents were highly satisfied towards maintenance.
64% of the respondents were satisfied towards pickup.
74% of the respondents were highly satisfied resale value.
49% of the respondents were satisfied towards appearance.
63% of the respondents were highly satisfied neutral towards
availability of spares.
68% of the respondents were satisfied towards service facilities.
60% of the respondents were satisfied towards overall level of
satisfaction.
There is no significant relationship between Age Group and period of
using Maruti Alto 800.
There is a significant relationship between Age Group and overall
level of satisfaction towards Maruti Alto 800.

SUGGESTIONS
Though the car model is satisfied the existing models have to be
provided with certain changes to suit for long travel.
Upper Middle income customers are having this car. There is a great
potentiality for this car at present is reduced.
The customers are preferred to enjoy the free service throughout the
life of the car.

CONCLUSION
The study had thrown light on customers satisfaction on Maruti Alto
800. It also revealed that expect factors such as advertisements, brand name
etc., the income of the respondents are more influencing the purchase of
Maruti Alto 800. The study revealed that the customers awareness is
generally good.