WHY TOYOTA SHARE IS MORE THAN THE

SHARE OF HONDA?

A special project conducted on the directions of

Sir ZARGHAM-ULLAH- KHAN

1st Feb, 2010

Research Conducted by :

Mubasher Nazir

Asif Ali

Usman Javaid

Salman Amin

Rana Mobashsher Ahmad

HAILEY COLLEGE OF BANKING & FINANCE

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Dedication

We dedicate this effort to our loving parents

Because it is only because of them that we are

Enjoying such a status of life. We are very happy

In the environment of

HAILEY COLLEGE OF BANKING AND FINANCE

And enjoying with nice friends and faculty

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 ACKNOWLEDGEMENT

COUNTLESS THANKS TO HE WHO IS LORD OF LORDS

At first instant, humbly we bow our head with all the feeling of our heart and soul before the Almighty

Allah, the beneficent, the omniscient who bestowed us with all the mental abilities to work out this

project.

We   feel   highly   honoured   to   express   our   profound   gratitude   to   our   respected   teacher

‘PROF.Zargam’, who’s ever encouraging, keen interest and sympathetic behaviour proved to be a

light house to complete this project. we would like to express our cordial gratitude to the employees of

Honda   and   toyota   Lahore   office,   especially   MR.  JAVED   IQBAL   MARATH,

manager of Honda and  MR.Wasif Razzaq,manager of toyota who cooperated with us in
the data collection procedure and respondents in the working sphere.We would commit a moral lapse if

we do not mention our parents through whose patronage prayers, we happened to come up to this level of

qualification

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 LETTER OF TRANSMITTAL

February 01, 2010

ZARGHAM_ULLAH_KHAN
HCBF PU LAHORE (CURST ROAD LAHORE)

Dear sir ZARGHAM_ULLAH_KHAN:

We are submitting to you the report, due February 01, 2010 , that you requested. The report is entitled
WHY TOYOTA SHARE IS MORE THAN THE SHARE OF HONDA? The purpose of the report is
to inform you to find out the reasons that are making higher Toyota share in the market as compared to
Honda..The content of this report concentrates on the reasons that are not apparent on the surface. This
report also discusses the recommendations given by us on which the companies should work in order to
increase their sales. Our experience of conducting the research was very good. Many of the respondents
were very helpful in giving their opinion and at the same time we had some bad experience as well. On
the whole the field work of getting the opinion of the respondents was good. If you should have any
questions concerning our project and paper please fell free to contact Mubasher Nazir at 0333-4824064 &
Usman Javaid 0345-4353310

Sincerely,

Mubasher Nazir (m06bba014)

Asif Ali (m06bba043)

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 Usman Javaid (m06bba050)

Salman Amin (m06bba056)

Rana Mobashsher Ahmad (m06bba068)

LETTER OF AUTHORIZATION

TO WHOM IT MAY CONCERN

It is stated that the following persons;

Mubasher Nazir

Asif Ali

Usman Javaid

Salman Amin

Rana Mobashsher Ahmad

are the students of HCBF University of the Punjab. They are directed to conduct
the research on the topic of “WHY TOYOTA SHARE IS MORE THAN THE
SHARE OF HONDA?” Kindly help them in any way they need for the
fulfillment of their research project in a productive & good way.

Authorized by:

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_________________________

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 EXECUTIVE SUMMERY

The background of the project is to analyze higher sales of Toyota as compared to Honda in the
Car Market. We will find out the reasons and factors those make strengthen and Strong position
of Toyota in the market for that we decided to work on it. For that we must need to very closely
and detailed overview of the company.

Common perception about Toyota and Honda is that

both companies have been fulfilling the perceive value of the customer, the price paid is much
reliable against the value, in our research work; we will identify how much strong these
arguments? What the reason are behind to successfully fulfill the perceived value of customer,
what are the marketing or manufacturing success, is there any some other aspects or role to make
more loyal customer. Toyota and Honda fulfill the whole of the customer’s need as they want in
every of aspect but customer had already mindset about the price of both different Brand that
these cars providing luxurious, reliable, and durable Facilities which other Car manufacturer are
not much able to provide at competitive price. Toyota Indus and Honda atlas has been producing
luxurious car. its time where as customer will be aware to the Toyota and Honda Car with
reference to those brand, these brands penetrated in customer’s mind so Toyota and Honda has
been getting a place in car market.

The reason of conducting survey in the field between Toyota

and Honda, we have been worked out to ascertain acceptance and attractiveness of the Toyota
and Honda. The issues has been becoming as to consumer behavior that what those opinion,
perception, attention involved in to go Toyota and Honda brands. Research has been conducting
by (Honda and Toyota) dealers’ interviews, questionnaire filling by fifty Toyota and fifty for
Honda lovers simultaneously in which middle and upper middle class people has been
participating.
A total of 40 respondents were surveyed from across the Karachi due to limited
time. All respondents were surveyed by Mixed Questionnaire during May 2009, and were
qualified as intending to purchase a Toyota or Honda vehicle. The study has a standard error of +

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2.8%. Regarding to our target, Over 58.7% of the respondents surveyed are willing to buy Toyota
and 42.3% of Honda.

According to chosen project we decided to find out the raw information and data regarding topic
for that we obtained data from the official website of the Indus motors known as the Toyota and
from Honda. We find that the brand loyalty of the customers is, Satisfaction fulfillment +
Customer =Brand loyalty.

The questionnaire that we designed contains 20 question and of which 19 are close ended
questions and the last one is the open ended which asks the over all the view of the respondent
about what they like Toyota or Honda. The main reason for accepting the close ended question
was to get a real percentage value of the respondents believes. The population that we asked
opinion was mostly driving Honda but majority of them had a wish to drive Toyota. As
discussion on Brand loyalty way of surviving both companies offer three key elements of Sales,
Service and Spare Parts, base on these elements the research is based on interviews and
questionnaire about brand loyalty of Toyota and Honda Owners, as well as thanks for the
technology that really curious, and helping out in finding of raw information which we visited to
web sites of Indus Motors Company and Honda Atlas.

In the light of entire project need to highlight some recommendation we found that Toyota and
Honda gaining more and more competitive advantage because it purely involved according to the
Pakistan environment but Honda has some weaknesses which Indus Motors Company has to
keep on focusing in the customers’ point of view like The shape of car as customer perceive, Car
interior of Honda in black, mostly people of Pakistan do not much like, instead, as they admired
by bright and light color. The Honda Atlas Company has to facilitate customers more than Indus
Motors Company in term of addition of dealership, Make possible to facilitate customer by 3S, if
possible, addition of 2S as well as they providing 2S service for other products. Indus Motors
Company has to establish 2S for more facilitate the customers by this IMC may become a
automobile market and as they achieved its brand loyalty IMC may need to focus on LVC,
Trucks etc that will be its competitive edge as they make it in consumers’ mind for that they do
no much nee to give awareness about its new product. Honda Atlas Company has to improve its
quality sales, service because the brand loyalty is sustained by truth, fairness, good dealing, and

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friendly attachment with loyal customer. The demand of the Honda is mainly sustain in market
because of its fuel but side by side Honda Atlas Company has to improve its engine performance
and over all performance as well because some of respond about brand loyalty just goes to
Toyota like in long distance because Honda does not sustained its performance.

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 TABLE OF CONTENTS

Sr no Topic pg
1 Problem statement 10

11
Introduction
3 Installed Capacity of Cars and Light Commercial Vehicles (LCVs): 13

4 14
The Background of the Project
5 15
Introduction of the organization’s business sector
6 Present Status 16

7 18
Indus Motors Company (IMC) Introduction: (Numerical overview)

8 22
Mission Statement of Indus Motors Company
9 23
Vision statement of Indus Motors Company
10 24
Honda in Pakistan
11 27
Vision
12 28
Mission
13 29
Products of HONDA
14 33
Products of TOYOTA
15 Sales of Toyota against Honda 38

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16 Problem Statement 39

17 Sample Questionnaire 40

18 Questionnaire Analysis 43
(description,options,graphical representation)

19 Conclusion: 64

20 Recommendations 66
Bibliography 67

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 PROBLEM STATEMENT

This research was conducted to find out the

“THE REASONS THAT WHY TOYOTA SHARE IS MORE THAN THE SHARE OF

HONDA?”

We have used the field study method for our research. This

method was most suited to our area of study because relevant

information could be gathered in the actual environment.

Various researches have been conducted in the past to

find out the reasons of this problem statement concluding that

brand image has an affect on the sales of cars. So, we are going

to find out that is Toyota has more sales because of brand image

or there is any other reason.

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INTRODUCTION

In the world trade, Automobile Sector is one of the largest segments.

It is the major driver of economic growth and business activities. It puts multiplier impacts on
the economy. Day-in, day-out around 200,000 vehicles roll off the world’s assembly lines with
car as the dominant segment of the industry.

The automobile sector has been registering high growth for the last four or five years due to the
country's business friendly policies along with lower tariff rates, persistent growth in GDP, and
per capita income. The automotive industry rightly prides itself on being recognized as the
“mother of all industries.” In its folds it carries many different kinds of vehicles to provide
mobility to people and goods. While they may appear to be simple machines, their design and
manufacturing have much deeper roots in all the known technologies. In-depth knowledge and
skillful application of mechanical, electrical, electronics, chemical and a host of other
technologies culminate in achievement and improvement of the manufacturing base of a country,
by focusing on a single product the automobile. This then provides an opportunity to produce a
large number of goods and services for consumption of the entire international community. Use
of the word “mother” for automotive industry is therefore the most appropriate description to
define the nature and importance of the industry. Automotive industry in Pakistan started in 1950
and has gone through different phases1950’s (Private sector). 1960’s (Private sector). 1970’s
(Nationalization). 1980’s onward (Privatization & entry of private sector).

It is indeed
heartening that the mother has once again smiled at Pakistan; fortunately the last 3 years have
witnessed phenomenal growth in the industry in terms of technological advancements and
production/sales volumes with the local contents rising as high as 90%. The industry is already
employing 120,000 people; contributing more than 12 billion rupees to GDP, contributing more
than Rs. 30 billion to the national exchequer in terms of duties and taxes, attracted investment
worth Rs. 52 billion including a substantial foreign investment. Today the customers have choice
to pick from a wide range of products including motorcycles, trucks, buses and cars of premier
Japanese and Korean brands at internationally competitive prices, which has only become

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possible due to local contents and availability of highly productive and inexpensive human
resources.

In Pakistan the automobile components manufacturing industry consists of mainly units

producing original components for assembly under deletion program and units are producing
reconditioned and original components for local use. There are more than 800 vendors in the
country with a total investment of over eight billion rupees; they are engaged in the
manufacturing of original components for the assembly operation under the deletion program as
well as producing reconditioned and original components for sale in the local market.

The models of Toyota and Honda 1300cc car has been able to achieve the popularity level among
car lovers in Pakistan as the company expected before its import, the companies source told that
"The sales of Toyota Corolla and Honda City vehicle have Raised, Before introducing Toyota
Corolla/ Honda City 1300cc cars, the Toyota company has completely vanished its most popular
brand Corolla, and Honda vanished by Civic whose demand was up throughout the country. The
demand for old Corolla cars is still moving up in the second-hand car markets.

Common perception about Toyota and Honda is that it Success to fulfill the perceive value of the
customer, the price paid is much lower against the value, in our research work we try to identify
how strong these arguments are? What are the reason behind to not fulfilling the perceived value
of customer, is this marketing or a manufacturing failure, is there any role of imported cars.

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Installed Capacity of Cars and Light Commercial Vehicles (LCVs):

Capacity unit/annum
Pak Suzuki Motor Co. Ltd, Karachi
Public Limited Company with 72.82% shares
150,000
and management held by Suzuki Motor
Corporation, Japan.
Indus Motor Co. Ltd, Karachi
Joint venture between Habib Group, Pakistan,
50,000
Toyota Tsusho Corporation, Japan (Toyota and
Cuore
Honda Atlas Cars (Pak) Ltd, Lahore
Joint venture between Atlas Group Pakistan
20,000
and
Honda Motor Co. Japan.
Ghandhara Nissan Ltd
Technical cooperation agreement with Nissan 6,000
Motors, Japan.
Dewan Farooq Motors Ltd
Technical cooperation agreement with Hyundai 25,000
Corporation, South Korea.
251,000
Source: PAMA (Updated to FY. 2007-2008)

The automobile industry of Pakistan has travelled a long road to get to where it is now. The ups
and downs, the shifts and turns have buffeted it many a times, but it displayed a resilience that
had enabled it to counter adversities that it had come to face with and showed massive growth till
2006 but after that government introduced liberalized import policies TBS in replacement of
ISDP which led Auto industry to stagnant growth.

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The Background of the Project:

The background of the topic is to analyze high sales of Toyota in comparison with Honda Cars
that success in the Car Market. we will find out the reasons and factors those make Toyota
strengthen and Strong position in the market for that we decided to work on it. For that we must
need to very closely and detailed overview of the company.

Common perception about Toyota and Honda is that both companies have been fulfilling the
perceive value of the customer, the price paid is much reliable against the value, in our research
work; we will identify how much strong these arguments? What the reason are behind to
successfully fulfill the perceived value of customer, what are the marketing or manufacturing
success, is there any some other aspects or role to make more loyal customer.

Toyota and Honda fulfill the whole of the customer’s need as they want in every of aspect but
customer had already mindset about the price of both different Brand that these cars providing
luxurious, reliable, and durable Facilities which other Car manufacturer are not much able to
provide at competitive price. Toyota Indus and Honda atlas has been producing luxurious car its
time where as customer will be aware to the Toyota and Honda Car with reference to those
brand, these brands penetrated in customer’s mind so Toyota and Honda has been getting a place
in car market.

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Introduction of the organization’s business sector:

Indus Motors Company (IMC)

is the member of PAMA - Pakistan Automotive Manufacturers Association in which all
automobile related business companies playing a vital role in the Association. The location of
PAMA - Pakistan Automotive Manufacturers Association is the 1st Floor, Block-C, Finance &
Trade Centre, Shah-rae- Faisal, Karachi. The PAMA objective is to promote progressive
manufacture of automotive vehicles (cars, commercial vehicles, motorcycles, farm tractors) in
the country.

Toyota Motors produces an estimated eight million vehicles per year, about a million
fewer than the number produced by General Motors (world largest automobile Company) The
company dominates its home market, with about 40% of all new cars registered in 2004 being
Toyotas.

Toyota also has a large market share in both the United States and Europe. And
Pakistan’s second largest automobile company somehow Suzuki company gain competitive
advantage instead of other automobile companies in Pakistan due to cost leadership strategy and
another major advantage is that they are producing 800cc car at economical cost means in
Pakistan perspective middle status people are now able to adopt auto at affordable price but if we
talk about the 1300cc cars that is majority in Pakistan as well so its advantage goes to Toyota
corolla in 1300cc car producing it is the number one automobile company in Pakistan It has
significant market shares in several fast-growing South East Asian countries. The - 1 -company
produces a large range of vehicles which are highly regarded for their quality, engineering, and
value; their designs set global standards for safety, reliability and ease of maintenance.

The Company Philosophy

"Do the right thing for the company, its employees, the customer and the society as a
whole."

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The story of Toyota Motor Corporation TMC began in September 1933 when Toyoda Automatic
Loom created a new division devoted to the production of automobiles under the direction of the
founder's son, Kiichiro Toyoda Soon thereafter, the division produced its first Type A Engine in
1934, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in
August 1935. Production of the Model AA passenger car started in 1936.

Although the
Toyota Group is best known today for its cars, it is still in the textile business and still makes
automatic looms (fully computerized, of course), and electric sewing machines which are
available worldwide.The Indus Motors business Sector has been established in many aspects but
in Pakistan they are doing business in automobile industry they are manufacturing many of
vehicle like Cars, Jeeps, single cabin, double cabin, 2x4, 4x4, Hilux, Delux, Hiace and many
others.

Present Status:

IMC on achieving the milestone of over 50,000 vehicle sales in the year
2007 and appreciated the company for increasing its production capacity to meet the demand for
its vehicles. He reiterated Toyota's ongoing commitment and support to IMC for further
expanding production facilities and acknowledged the efforts of the Indus Team for continuously
improving their skills and their efforts for building quality cars.

Indus Motors Company has

been impressive 1400 sq meters Training Center, which will provide core trainings as well as
multiskill development. Cumulatively, since inception, over a million menhours of training had
been done by Indus to enhance the capabilities of its team. Indus Motors company also
inaugurated the modern, state of the art, Vehicle Display Center at MakroHabib on Shah-rahe-
Faisal, Karachi, which will display top of the range Toyota vehiclesThe sales and production of
Indus Motor’s Toyota and Daihatsu brands for the year ended June 30, 2008 were 50,802 units
and 48,222 units respectively which is a new record compared to last year’s figures of 50,557
units and 47,821 units respectively. The company’s sales revenue increased to Rs 41 billion, up
6% over Rs. 39 billion; with the after tax profit of Rs 2.3 billion, as compared to Rs 2.7 billion

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achieved during the year ended June 30, 2007. Earnings per share decreased to Rs 29.15, as
compared to Rs. 34.93 in the previous year.

Nationwide sales of locally assembled passenger

cars and light commercial vehicles (LCV) that had previously grown continuously over the last
five years declined by 8% to 187,412 units from 204,212 units sold in 2006-07. Production in the
industry also declined to 187,644 units for the period ended June 30, 08, down 5.7% over
198,986 units last year. Although there has been a decrease in the import of used cars from
28,493 units in 2006-07 to 13,145 units in 2007-08, they still continue to impede growth of the
auto industry.The impact of political uncertainty compounded with a general slow down in the
economic environment resulting from rising interest rates, limited credit availability for auto
financing, depreciation of the Pak Rupee against major currencies, unprecedented rise in prices
of oil, steel and other inputs, inflation, etc impacted the demand negatively. The Board of
Directors appreciated the Company’s performance and declared a final cash dividend of Rs 6.5
per share, making for a total of Rs 10.5 per share during the year. The total dividend paid for the
same period last year was Rs 13 per share.

Indus Motor has requested the government to take

note of the recommendations made by the Pakistan Automobile Manufacturers Association to
accelerate growth of the local industry and withdraw the 5% Federal Excise Duty and increase of
1% Sales Tax, amongst other measures.

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Indus Motors Company (IMC) Introduction: (Numerical overview)

Indus Motors is the country's second largest auto manufacturer, after the Pak Suzuki Motors,
located near Bin Qasim Karachi, having an assembling capacity of 55,000 units per annum. Its
core business is to manufacture and market cars. In addition, the company also sells auto parts
and accessories. Its product line includes 9 variants of Toyota Corolla, 8 variants of Daihatsu
Cuore and 2 variants of Toyota Hilux. The company also offers six different imported vehicles
namely Toyota Camry, Prado, Land Cruiser, RAV, Hilux and Hiace. Major contributor to the
revenue is Corolla, having a contribution of 66.5% in company's sales. Last year, the company
has completed its expansion plan that increased its capacity to 55,000 units per annum from
37,000 units earlier. The company has further expansion plan to almost double its capacity to
100,000 units by financial year 2011 for which it has already acquired land. Toyota Motor
Corporation of Japan has recently announced its decision to acquire an additional 9.83m shares
in Pakistan's Indus Motor Company by taking over stock 3.93m shares (5.0% of the paid up
capital) from overseas investors (AG Limited) and remaining 5.90m shares (7.5% of the paid up
capital) from general public through a buy-back offer at the purchase price of Rs 370 per share.
However, such public offer would not include the stock held by the companies and the
individuals, who represent members of the House of Habib (HoH). Toyota Corporation and its
affiliate Toyota Tsushu Corporation currently held 9.83m shares each in Indus Motor, which
together constituted 25% of the company's paid-up capital. After the said transaction, Japanese
giant car maker's stake in Indus Motor Company would raise to 37.5% from currently 25%.

New data release by Pakistan Automotive Manufacturers Association (PAMA) after witnessing a
growth pattern since FY02 with 6 years CAGR of 28.0% to 171,786 units in financial year 2007
from 39,047 units in financial year 2001, car sales declined by 4.2% in FY08 and stood at
164.65k units as against 171.79k units in financial year 2007. The low price cars category was
the beneficiary of this shift in customer preference. The cars with engine capacities of 801cc to
1299cc registered a decline compared with last year. The auto sector in general, has witnessed a
slow down owing to the fact that two to three times, the car prices were increased by the auto
assemblers during last year in order to support their declining gross margins. Auto assemblers
linked the price-hike to the rising prices of steel components and appreciation of the yen against
the rupee, which pushed up the production cost further. Moreover, the car financing became

1
more expensive due to increase of 200bps in discount rate during financial year 2008. As a result,
there was a slowdown in car financing amid rising mark up rates and tight documentation of car
financing due to significant rise in NPLs of the banks.
The rising trend of fuel prices also forced the new buyers of small cars to switch to motorcycle
mainly due to cheaper cost and low fuel consumption. Among different engine capacity cars,
sales volume of low engine capacity cars, i.e., 800cc declined nominally by 0.6% in financial
year 2008 over financial year 2007. However, sales volume of high engine capacity cars i.e.
1000cc and above 1300cc declined 11.6% and 15.6% to 48,887 units and 50,824 units in
financial year 2008 from 55,295 units and 60,190 units respectively in financial year 2007.
FINANCIAL PERFORMANCE (9MTHS'08) Indus Motors announced Rs 1.89 billion PAT
(EPS: Rs 24.06) in 9mths'08 compared to Rs 1.93 billion (EPS: Rs 24.53) in 9mths'07, depicting
a decline of 1.9%. Major reasons behind the decline were lower sales volume, appreciating
Japanese yen against the Pak rupee and higher steel prices, which negatively impacted the
company's bottom line. During the period under review, world steel prices grew 11.0% to US
$636 per ton (average price) from US $574 per ton (average price) in 9mths'07 whereas Pak
rupee depreciated 8.5% against Japanese yen to 1¥ = Rs 0.561 (average price) in 9mths'08 from
1¥ =Rs 0.517 (average price) in the same period last year. Financial charges stood at Rs 1 million
in 9mths'08 as against Rs 27 million in the corresponding period last year, representing a
significant decline of 98.0% as the company did not have any mark up bearing long-term
liabilities, except deferred taxation, in its balance sheet. Other income of the company also
declined 13.2% to Rs 625 million in 9mths'08 compared to Rs 720 million in the same period
last year due to low returns on bank deposits. Income from bank deposits fell to Rs 490.7 million
in 9mths'08 as against Rs 608.9 million in the same period last year. Despite adverse market
environment, total sales volumes (both CKD and CBU) declined nominally by 0.7% to 36,445
units in 9mths'08 from 36,704 units in the same period last year. However, production at 34,925
units in 9mths'08 was slightly up as against 34,819 units in 9mths'07. In 9mths'08, Indus Motors
was the market leader in above 1300cc category with a market share of 65.2% followed by
Honda Cars and Pak Suzuki with a market share of 28.3% and 6.5% respectively. Market share
of the company has also improved to 65.2% in 9mths'08 from 59.3% in 9mths'07 at the expense
of both Honda Cars and Pak Suzuki. However, in 800cc engine capacity cars, market share has
depressed to 17.9% from 20.1% in 9mths'07. Financial performance FY07 Indus Motors crossed

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production of 250,000 units since its inception. It achieved over 50,000 units of sales during the
year 2007. Also, dealership network expanded from 25 to 29 dealers. Sales of locally
manufactured vehicles and CBU variants for the year ended June 30, 2007 were 50,557 units,
compared to 42,406 units last year, up by 19%. Toyota Corolla outperformed its competitor and
established a market segment leadership position in Pakistan with 59% market share in the year
2006-07. Daihatsu Cuore increased its share to 26% in 2006-07 from 18% last year in the
economy car segment that continues to show impressive growth.
The New Generation Camry
introduced in the beginning of 2006-07 showed impressive performance. It increased its share
from 16% last year, to 54% by June 2007, in its segment. In the new SUV category, market share
increased from 62% to 88% this year, with increased focus on fleet customers who are secure in
the reliable performance, durability and after sales service and product support capability of
Indus. Hiace and Hilux increased market share from an already impressive 63% last year to a
market dominant position of 84% this year. Indus Motors' liquidity has maintained a positive
trend, over the past 5 years, with the current ratio being well above the industry averages,
increasing progressively with each successive year. The current ratio touched 1.8 in financial
year 2007 showing the excessively liquid assets that the company owns. Indus Motors fares
reasonably above the industry average in terms of inventory turnover; this being a virtue of its
continuous innovation, and understanding and catering to the market needs. However, in terms of
collection of receivables IMC lags behind its competitors. Although the operating cycle is
decreasing, but showing efficiency in terms of its cash conversion cycle, it needs to bolster it
further to be at par with the industry standards. The total assets turnover is better than the
industry, showing that the company is better off than its rivals, as far as managing assets to
generate sales is concerned.
The rising net sales have a major role to play in elevating this
measure of asset management, and this can be attributed to better marketing, launching of newer
models of cars, and improved delivery timings. As depicted by the graph, the TATO has shown
quite a profound increase in financial year 2007. Lately, however, the sales-to-equity ratio of
Indus Motors has been declining. This can be attributed to an increase in reserves that may be
used to further expand the company's capacity according to the AIDP (Auto Industry
Development Plan). Financial year 2007 has thus, retained the previous trends of the company's

1
asset management ratios. All in all, asset management ability of the company is praiseworthy.
Long term debt-to-equity is lower than the industry average. It is almost zero owing to the fact
that the company has no long term liability as such. Indus Motors is basically an equity-based
company.

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 Mission Statement of Indus
Motors Company

"IMC’s Vision is to be the most respected and successful enterprise, delighting customers with a
wide range of products and solutions in the automobile industry with the best people and the best
technology".

 The most respected.

 The most successful.

 Delighting customers.

 Wide range of products.

 The best people.

 The best technology.

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 Vision statement of Indus Motors
Company:

Mission of Toyota is to provide safe & sound journey. Toyota is developing various new
technologies from the perspective of energy saving and diversifying energy sources.
Environment has been first and most important issue in priorities of Toyota and working toward
creating a prosperous society and clean world.

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Honda in Pakistan

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Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company
Limited Japan, and the Atlas Group of Companies, Pakistan.Honda Motors Company was
established on September 24, 1948 under leadership of the then C.E.O. Tako Fukui. Its head
office is in Tokyo. It started operations in Pakistan as Honda Atlas Company, a joint venture
between Honda Motors Company and Atlas Group of Companies on November 1992. It supports
more than 137,827 employees world over.

The company was incorporated on November

--, 1992 and joint venture agreement was signed on August1993.The ground breaking ceremony
was held on April 17, 1993 and within a record time of 11 months, construction and erection of
machinery was completed.

The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by
President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of
Honda Motor Company Limited Japan was also present to grace the occasion. The company
is listed on Karachi, Lahore and Islamabad Stock Exchanges.
On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad.
Since then the Dealerships Network has expanded and now the company has sixteen 3S (Sales,
Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all major
cities of Pakistan. Since the commencement of production in 1994 till March31, 2005, the
company has produced and sold over 77,500 cars. All dealerships are constructed in accordance
with the standards defined by Honda World over.

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Percentage of local parts conforms to the government's policy. Local vendors are continuously
patronized to develop parts locally. The quality of local parts is thoroughly checked to meet
stringent international standards. We always strive to give outstanding service to our valued
customers. In addition to providing regular service to customers, the company also regularly
conducts Service Campaigns, to facilitate customer's need for service. This has given our
customers absolute confidence in our cars, clearly evident from the ever-increasing sale volumes.

It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer
satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet customer expectations,
and to provide good value for money. Currently we are offering 8 different models of Honda
CIVIC and CITY cars in wide range of colors with unique technological and other features

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 Vision

“Focusing on “satisfaction”(customers ’Associates ‘and

Shareholders’) with Challenging spirit and flexibility, we are Dedicated
to supplying latest generation cars with advanced technology,
greater fuel efficiency and competitive prices, along with friendly
and efficient after sales backup, maintaining “quality” as core of
all activities.”

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 Mission

“To be a dynamic, profitable and growth oriented company through

market leadership, excellence in quality and service adding value to the
shares and maximizing exports. To give attractive return to
business associates, share-holders as per their expectations and
market value and employees according to their abilities and
performance, and to be good corporate citizen to fulfill its social
responsibilities.”

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 Products of HONDA
Honda offers different products, which are as follows;

ACCORD

Witness the debut of the astonishing new Honda Accord: the outcome of our all-out pursuit of
sedan excellence, successfully uniting all contradictory elements. A bold exterior presence with
a luxury air, yet a sporty youthful feeling. An expansive upper-class cabin with comfortable
travel space for five adults and panoramic visibility. A larger body with sportier performance
than ever before, and powerful i-VTEC engines designed for high fuel economy. A renowned
global car with all advanced Honda technologies for driving command, plus eco-performance for
increased recyclability. And, Honda's world-leading safety protection, which even extends to
pedestrians and those in other vehicles. Experience its overall quality, riding comfort, and
details for yourself, and you'll know why the new Accord represents a distinct "status upgrade"
for the sedan.

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CIVIC

What moves you? What drives you? What excites you? Honda seeks the pinnacle of technology
in pursuit of answers. Now, we present a bold way to stir the body and soul, designed to quicken
the pulse at first glimpse, and stimulate the senses with each and every encounter. The sporty
new Honda Civic possesses rare spirit, and so do you. See, touch, feel, drive and discover.

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CITY

See it coming, like an arrow. Striking good looks, cutting-edge design, sharply focused tension.
See it shoot straight ahead. What is it? Discover the compact sedan breakthrough with strength
to open a new era and outlast fleeting trends. Sleek styling and strong performance, with swift,
gutsy response to the driver's pedal action. Class-leading* spaciousness and relaxing ride for
outstanding comfort. Imagine the pride of driving and owning this distinctive new-generation
standard. Get ahead in the new City. People will be watching.
*1.3-liter compact sedan class

Euipments & Specifications may vary in some cases.

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CR-V

Dynamic styling appeal. Elevated SUV outlook. Premium driving refinement. And an exhilarating
yet stable feeling. The new Honda CR-V has all you want, and more. A spacious cabin and
utilities, due to packaging innovation. Plus superb i-VTEC response, quietness, and safety.
Discover delightful CR-V driving. Now, all roads are exciting.

Products of Toyota
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Toyota offers different products, which are as follows;

Cuore

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Vitz

XLI

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GLI

Saloon

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2D

CAMRY

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PARADO

Land Cruiser

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 Sales of Toyota against Honda

SOURCES: PAMA

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 PROBLEM STATEMENT

This research was conducted to find out the

“THE REASONS THAT WHY TOYOTA SHARE IS MORE THAN THE SHARE OF

HONDA?”

We have used the field study method for our research. This

method was most suited to our area of study because relevant

information could be gathered in the actual environment.

Various researches have been conducted in the past to

find out the reasons of this problem statement concluding that

brand image has an affect on the sales of cars. So, we are going

to find out that is Toyota has more sales because of brand image

or there is any other reason.

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 SAMPLE QUESTIONNAIRE

Reasons for higher TOYOTA share in market as compared to HONDA

Name _________________ Gender  male  female

Age  Under 20
 20 -40
 40 & above

1. Which car you drive for yourself?

 Toyota  Honda  Both  None

2. Which automobile company would you prefer to travel?

 Toyota  Honda  Both  None

3. Whose products are more often seen on roads?

 Toyota  Honda  Both  None

4. Whose products are more stylish?

 Toyota  Honda  Both  None

5. Whose looks are more luxurious?

 Toyota  Honda  Both  None

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6. Who do you think is more reliable to travel?
 Toyota  Honda  Both  None

7. Which automobile do you think has more resale value in the market?
 Toyota  Honda  Both  None

8. Which company’s service centers are more in numbers?

 Toyota  Honda  Both  None

9. Whose products are more environments friendly?

 Toyota  Honda  Both  None

10. Whose interior is more attractive?

 Toyota  Honda  Both  None

11. Toyota spare parts are readily available in the market?

 Agree  Disagree  No idea

12. Do you think that Toyota products are more economical than Honda?
 Agree  Disagree  No idea

12. People prefer Toyota because of its variety of models?

 Agree  Disagree  No idea

13. People prefer Toyota because of its diesel engine?

 Agree  Disagree  No idea

14. Shock problem rumor of Honda is a hurdle in its market share?

 Agree  Disagree  No idea

15. Toyota market share is more because it is targeting low income group and Honda does not?

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  Agree  Disagree  No idea

16. Do you think that brand loyalty of Toyota is more than Honda?
 Agree  Disagree  No idea

17. Do you prefer Toyota because of its color range?

 Agree  Disagree  No idea

18. Toyota offer better engine efficiency than Honda?

 Agree  Disagree  No idea

19. Which will you recommend HONDA/TOYOTA and why?

___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________________________________________________
___________________________________________

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QUESTIONNAIRE ANALYSIS

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 WHICH CAR YOU DRIVE FOR YOURSELF?
This question has been taken as the filter question for the research purpose. As we are finding the
reasons that why the Toyota share is more than Honda so before getting any opinion from our
respondents we need to know whether that person is using any of these two cars or any other. If that
person isn’t using any cat than its opinion will not be worthy because he might be ignorant about the
cars. All the opinion given on the questionnaire by that person will be based on the guess work that will
not truly be real information that we need. So if any person who has driven the car will be asked to fill
the questionnaire so that the information we get through will be really based on the truth basis.

OPTIONS
We have given the options as follows

 Toyota  Honda  Both  None

A person can be a user of Toyota products or Honda or he might have used both. The last option NONE
will give two motions i.e. the person might be using any other company’s product or he might haven’t
used any car yet. If he is a user of both then his information will be real critical one because he has used
both and will have real experience.

GRAPHICAL REPRESENTATION

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 WHICH AUTOMOBILE COMPANY WOULD YOU PREFER TO
TRAVEL?
This question is added in the questionnaire so that we get the intention that which automobile
company’s people will like to prefer to travel. This will tell us in real sense that if the people who are
driving other automobile products can express that whether they like Toyota or Honda. That person
might be using any other company’s product because of any reason but internally he might be looking to
drive Honda or Toyota. It can be taken as the question or the psyche of the people that what they believe
internally about these two companies i.e. Toyota / Honda.

This question is also important that some persons might be using Toyota but they like Honda and vice
versa or they might not like any of these two.

OPTIONS
We have given the options as follows

 Toyota  Honda  Both  None

The people might prefer Toyota or Honda. There might be people who like the both that’s why they
might be selecting BOTH. Finally people might not prefer any of these two so they will go for the last
option.

GRAPHICAL REPRESENTATION

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 WHOSE PRODUCTS ARE MORE OFTEN SEEN ON ROADS?

This question is added because it will provide us with the factual data about what people see on the
roads while driving. U can see that Toyota products might be more or Honda products might be more.
But this will give us the intentional thinking of the people i.e. what they perceive on the roads. If they
are more inclined towards the Toyota they will say that Toyota products are more often seen on the
roads and vice versa. In real sense this question might be leading towards the brand loyalty of the
people.

OPTIONS
We have given the options as follows

 Toyota  Honda  Both  None

The person who will be selecting Toyota means that he is inclined towards Toyota whether he is using it
or not and the same is the situation if he selects the option of the Honda. On the other hand the other
two options are also there i.e. the person may be of the opinion that both type of products are more
often seen on the roads. lastly any one can be of the view that none of these two is more often seen on
the roads.

GRAPHICAL REPRESENTATION

1
1
 WHOSE PRODUCTS ARE MORE STYLISH?

While drafting this question the basic idea in the back of the mind of my group members was to
perceive and conceive that which automobile company is offering more stylish products. As stylish
products are the means of attraction to the general public and the major reason for acquiring the
products to use by the general public.Stylish products will result in the higher sale to the company as it
will also lead the accurate reason know that which company has the highest share in the market.

OPTIONS:

 Toyota  Honda  Both  None

GRAPHICAL REPRESENTATION:

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 WHOSE LOOKS ARE MORE LUXURIOUS?

The looks of any car has always impact on the customer. Many of the customers are looks conscious than
any thing else in the car. Therefore the looks that seem to be luxurious are more important to some of
the customers at times. People perceives that if there car is fantastic in their looking then they will also
be looking luxurious while driving this may lead to purchase of that type of car that they feel is luxurious.
Some may find the products of the Toyota to be the luxurious and other may feel the same for Honda. It
depends on the mentality of the persons what they perceive.

OPTIONS
We have given the options as follows

 Toyota  Honda  Both  None

These options are given above may lead to any of the response. If the option Toyota is selected then it
means that respondent feel that Toyota products are those that he feel are luxurious and meets its
needs. Same is with Honda. There can be that feel that both the Toyota and the Honda are luxurious in
nature so that respondent will go for that.

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GRAPHICAL REPRESENTATION

1
 WHO DO YOU THINK IS MORE RELIABLE FOR TRAVEL?

In this question the basic knowledge we want to collect from the general public is to now that which
company the people think are more reliable when it come to traveling.This question will lead to us to the
conclusion that when we talk about reliability and commitment people prefer which company for
traveling and transportation.

OPTIONS:

 Toyota  Honda  Both  None

GRAPHICAL REPRESENTATION:

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 WHICH AUTOMOBILE DO YOU THINK HAS MORE RESALE
VALUE IN THE MARKET?

The basic idea behind this question is to gather the fact that which automobile company has more
resale value in the secondary market. This reason is the major contributor to the higher share of the
automobile company in the local market. As people prefer those products that have good re sale value
at the time of selling under any situational circumstances.

OPTIONS:

 Toyota  Honda  Both  None

GRAPHICAL REPRESENTATION:

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 WHICH COMPANY’S SERVICE CENTERS ARE MORE IN
NUMBERS?

The concept of asking this question in the questionnaire is to find out the reason that whether people
are inclined towards the fact that the availability of there service centre of the company’s. This question
will give us with the internal state of the persons mind that if the he purchases Toyota and Toyota service
centre are more in no then in any case his car makes the default then he will be satisfied to have his car
repaired from the original service centres.

OPTIONS
We have given the options as follows

 Toyota  Honda  Both  None

These options are given above may lead to any of the response. If the option Toyota is selected then it
means that respondent feel that Toyota products offer better interior. Same is with Honda. There can be
situation that respondent feels that both the Toyota and the Honda are offering good interior so that
respondent will go for option both.

GRAPHICAL REPRESENTATION:

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 WHOSE PRODUCTS ARE MORE ENVIRONMENTS FRIENDLY?

While drafting this question the basic idea in the back of the mind of my group members was to perceive
and conceive that which automobile company is offering products that are more environments friendly
and produces less pollution. Now days global warming and other hazards are very commonly discussed
in the general public and a lot of NGO’S are working on the awareness of the hazards to the mother
earth. That’s why company and people are loyal and attracted towards the products that are more
environments friendly and is fewer hazards to the nature.

OPTIONS:

 Toyota  Honda  Both  None

GRAPHICAL REPRESENTATION:

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1
 WHOSE INTERIOR IS MORE ATTRACTIVE?
The interior of the car has always a great impact on the comfort ability and the looks of the car.
Many people believe that the interior of the car must be attractive and that’s why they are
attracted towards the cars that offer more variety and the interesting eye catching interior.
Therefore it’s a key factor in the purchase of the car by any buyer. So the interior must be attractive
to catch the buyers.

OPTIONS:

 Toyota  Honda  Both  None

GRAPHICAL REPRESENTATION:

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1
 TOYOTA SPARE PARTS ARE READILY AVAILABLE IN THE
MARKET?
This question is added in the questionnaire that n case of any problem with any genuine part of the cars
people pursue that they get the original part that’s the psyche of the user. So if the spare parts of Toyota
are readily available in the market then the user will be satisfied in a way that the efficiency of its
automobile isn’t going to be affected because of the availability of the genuine spare parts. So this can
be the major reason of the buying of the Toyota by the user.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

Since it’s a statement with which the respondent may agree or not that’s why these options are added in
the questionnaire. If the respondent agrees with the statement then there is a possibility that the
respondent has purchase the Toyota product because of the availability of the genuine spare parts. On
the other hand there might be the situation that respondent doesn’t agree with the statement and that’s
why respondent selects the option of disagree. In the last the respondent might have no idea about this.

GRAPHICAL REPRESENTATION :

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 DO YOU THINK THAT TOYOTA PRODUCTS ARE MORE
ECONOMICAL THAN HONDA?

The price factor is always the key factor for all the things and same is the situation with the prices of the
automobile products. Price factor is a major hurdle for fixed salaried persons all the time. They are more
price conscious because of their salary range. If the Toyota products are economical then the salaried
category of the people will be purchasing the Toyota products. And most of the persons in Pakistan are
salaried persons so that can be the major reason for more sales of Toyota as compared to Honda.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

Since it’s a statement with which the respondent may agree or not that’s why these options are added in
the questionnaire. If the respondent agrees that the prices of the Toyota are economical then the
respondent has purchase the Toyota product because of this factor. On the other hand there might be
the situation that respondent doesn’t agree with the statement and that’s why respondent selects the
option of disagree. In the last the respondent might have no idea about this.

GRAPHICAL REPRESENTATION

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 PEOPLE PREFER TOYOTA BECAUSE OF ITS VARIETY OF
MODELS?

Man is not satisfied with whatever he had. He is always there for new and new things. He isn’t satisfied
with what he has with him. Same is the case in this matter i.e. the people aren’t satisfied with the single
type of cars with a very little range of variety. Users need the variety the more you provide the variety
the more the customers you have with you. In other words the sales of the companies are also
dependent on the variety of their products because users don’t want to remain with the same thing for a
longer period of time.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

People may agree with our statement that yes Toyota offers more variety of products to its customers
that’s why there sales is higher than the sales of Honda. On the other hand there is equal chance that
the respondent will state that the Toyota doesn’t offer much variety of the products. Or in the end the
respondent might not have any idea about the variety of the models so he will be selecting the last
option.

GRAPHICAL REPRESENTATION

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 PEOPLE PREFER TOYOTA BECAUSE OF ITS DIESEL ENGINE?

The availability of the diesel engine of the Toyota can be the major and the very important factor of
higher sales of Toyota as compared to Honda. Diesel engines are very much necessary for the users who
are living in rural areas where the availability of the petrol isn’t good. On the other hand the hilly areas
of Pakistan like NWFP, NORTHEN AREAS and the areas of Kashmir are very much difficult to travel. The
cars and other automobile sectors over there need more power and that power requirement can only be
met by the diesel engines because the diesel engines are more powerful than the petrol engines.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

People may agree with this statement and they may not. The persons who are belonging to the rural
areas and the hilly areas can greatly understand this question in real way because they see this trend in
their areas quiet often.

GRAPHICAL REPRESENTATION

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 SHOCK PROBLEM RUMOR OF HONDA IS A HURDLE IN ITS
MARKET SHARE?

It has been noticed in that a rumor is in the area from the July of the last week that there is a problem
with the shocks of Honda products. This can be the big hurdle because of which the sales of Honda
aren’t picking up in the market thus leading to an edge to the competitor i.e. Toyota. Rumors has always
have a great impact on the psyche of the persons so that hold a person to not to go towards the
purchase of Honda. In other words Toyota can cash this rumor in great way and as per the factual data
Toyota has cashed it already in real way.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

The respondent when agree will be giving us the intention in real terms that he has heard this rumor so
he some what believes on it also that’s why he is agreeing with the statement. If the respondent doesn’t
agree he will simply disagree. On the last the respondent might be unaware of the rumor.

GRAPHICAL REPRESENTATION

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1
 TOYOTA MARKET SHARE IS MORE BECAUSE IT IS
TARGETING LOW INCOME GROUP AND HONDA DOES NOT?

Since all the automobile products are costly so it there is a strategy made by the company to target he
low income level with a new range of products then it can be very much effective to boos the sales of
the company. Since the most of the nation in Pakistan is at low income level do in this way any company
will be targeting a wide range of the market segment. The more the target segment the more is the sales
and the more is the profit. This strategy is very much important for all the companies.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

Since it’s a statement with which the respondent may agree or not. If the respondent agrees that the
prices of the Toyota are economical and it is targeting the low income level persons then the respondent
has purchase the Toyota product because of this factor. On the other hand there might be the situation
that respondent doesn’t agree with the statement and that’s why respondent selects the option of
disagree. In the last the respondent might have no idea about this.

GRAPHICAL REPRESENTATION

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 DO YOU THINK THAT BRAND LOYALTY OF TOYOTA IS MORE
THAN HONDA?
Brand loyalty is the major factor related to the purchase of the cars. Once the loyalty is grown it is very
much difficult for any one to change the loyalty of anyone. If any person has associated his loyalty with
Honda then he will pursue to purchase the Honda and vice versa. This creation of loyalty is real critical
process. The more the customer is satisfied the more it contributes towards the loyalty of the brand.
Several other factors are of key importance in brand loyalty. So if the person is more loyal towards Honda
then he will be rejecting the statement.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

People may agree with our statement that yes Toyota users are more brand loyal that’s why there sales is
higher than the sales of Honda. On the other hand there is equal chance that the respondent will state
that the Toyota don’t have more brand loyalty. Or in the end the respondent might not have any idea
about the loyalty of the Toyota so he will be selecting the last option.

GRAPHICAL REPRESENTATION

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 PEOPLE PREFER TOYOTA BECAUSE OF ITS COLOR RANGE?
Color is always important factor in the choice of any thing. Same is the case in the purchase of cars.
Females are always attracted towards the color range of the cars Toyota offer vide variety of colors that
can be the real factor in the purchase of cars. On the other hand of your desired colors isn’t there in the
product that you like then there is a possibility that you will shift towards the other brand in which that
color is available. So more color range the more the market share leading to the higher profits.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

People may agree with our statement that yes Toyota offers more variety of colors to its customers that’s
why there sales is higher than the sales of Honda. On the other hand there is equal chance that the
respondent will think that the color range doesn’t make any difference in the purchase of products. Or
in the end the respondent might not have any idea about the variety of the models so he will be
selecting the last option.

GRAPHICAL REPRESENTATION

1
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 TOYOTA OFFER BETTER ENGINE EFFICIENCY THAN HONDA?
Engine efficiency can be an important factor in the purchase of the product because if product matches
all the other factors that are needed by the purchaser but the efficiency isn’t good one then it may
change the decision. Especially this has more effect on low and fixed income group people. This may lead
to a negative image on the user that will create a negative impact in the market ahead and some other
negative rumors alike. So this question is a technical one that’s why it’s added in the questionnaire.

OPTIONS
We provided the following options to the respondent

 Agree  Disagree  No idea

Since it’s a statement with which the respondent may agree or not. If the respondent agrees that the
engine efficiency of Toyota is more than Honda then the respondent has purchased the Toyota product
because of this factor. On the other hand there might be the situation that respondent doesn’t agree
with the statement and that’s why respondent selects the option of disagree. In the last the respondent
might have no idea about this.

GRAPHICAL REPRESENTATION

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WHICH WILL YOU RECOMMEND HONDA/TOYOTA AND WHY?

In the end we have added the subjective question in the questionnaire to get the information that we
haven’t added in it but the respondent thinks it as a critical factor towards this research.

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CONCLUSION:

The reasons
that can be given to provide justification to our conclusion are as follows:

In present society and living way, the Brands not only represent the symbol of the company or
product but to a larger extent define the general life of a person. What the person uses can reflect
his taste of life, his status in the society, his economic background and many other things. This
makes a deep connection between the company and its brand, with the consumer. In this two way
relation both are dependent on each other for various different reasons. Customers purchase the
specific brand things just due to the brand name. Customers believe that brand name is a symbol
of quality. We came to the conclusion that when consumer purchases a car, brand names
influence his choice. Customers choose the well known car brand.

The brands of Toyota which are of real attention and attraction i.ie PARADO and LAND
RUISER has great impact on the psyche of the people. People purchase Toyota while having an
idea in their mind that believes to the class of executive. More over its very much clear that
Toyota has also small cars like VITZ for the a bit low standard customers that’s where it gain
advantage over Honda in the market. On the other hand the another major factor that always
gives Toyota an importance in he minds of majority of the people who live in village is the diesel
engine that Toyota offers but Honda doesn’t. in the northern areas, NWFP and AJK which is the
hilly area of Pakistan and requires more effort from the engines and this demand is met by the
Toyota. So this is a major portion of the market that Honda doesn’t have much capability to
capture. The resale value factor is also influencing the minds of the people majority of the people
believe that Toyota is offering more resale value in the market so they will prefer to purchase that
thing that will be offering more value in the market when they are going to sell it back.

The study shows that Toyota and Honda City brands have a great place in consumer mind, when
customers go for purchasing a car, they prefer by that creative perception. Honda is less loyal to
customer due to its high cost, low reliability, low performance, and lack of 3S availability, high
cost of maintenance and Spare Parts and shape as compare to Toyota. Honda City model 2005
was highly drop down because the car shape was did not appreciated in Pakistan moreover it was

1
also failed in specific duration because of side mirror of the car the reason was that the side
mirror was resisted by pillar of front quarter window which customer felt uncomfortable when
he/she viewed back side. These problems had been shifted from the loyal brand. If a Customers
delighted by Toyota he/she does not want to try Honda City car because they have no much
information about it and vise versa.

we feel that
the purpose of this study has been fulfilled to some extant. The theory describe that brand name
has a power, which attracts the customers towards branded products. The reason is that customer
gets special connection with specific brands product and become the loyal with brand and we
founded that Toyota attracts more people.

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 Recommendation:
 In the light of entire project we would like to highlight some recommendation we found that
in the light of brand loyalty Toyota and Honda gaining more and more competitive advantage
because it purely involved according to the Pakistan environment but Honda has some
weaknesses which Indus Motors Company has to keep on focusing in the customers’ point of
view like
 The shape of car as customer perceive need to be changed by the Toyota by especially and
for Honda also because people believe that every new model of Toyota is like the old one.
 Interior of the car of Toyota, which mostly people of Pakistan do not much like, needed to be
changed.
 The Honda Atlas Company has to facilitate customers more than Indus Motors Company in
term of addition of dealership, Make possible to facilitate customer by 3S, if possible,
addition of 2S as well as they providing 2S service for other products.
 Indus Motors Company has to establish 2S for compete the Pak SUZUKI because Pak
Suzuki is the largest automobile company in Pakistan and its cars are highly appreciated
because of economical price.
 Honda Atlas Company has to improve its quality sales, service because the brand loyalty is
sustained by truth, fairness, good dealing, and friendly attachment with loyal customer.

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Bibliography :
The following websites were quiet helpful for us in
collecting relevant information that was helpful in conducting our research.

www.pama.com
www.indusmotors.com
www.honda.com.pk
www.scribd.com
www.google.com

www.weikipedia.com

www.msn.com/images